Document:

<PAGE>   1
                                                                EXHIBIT 10.22(a)

                                                                  EXECUTION COPY

                                 AMENDMENT NO. 1
                                       TO
                                CREDIT AGREEMENT

          THIS AMENDMENT No. 1 TO CREDIT AGREEMENT (the "Amendment") is made as
of February 6, 2001 by and among CHICAGO BRIDGE & IRON COMPANY N.V. (the
"Company"), CB&I CONSTRUCTORS, INC., CBI SERVICES, INC., CHICAGO BRIDGE & IRON
COMPANY (DELAWARE) and CB&I TYLER COMPANY (collectively, the "SUBSIDIARY
BORROWERS," and, together with the Company, the "BORROWERS"), the financial
institutions listed on the signature pages hereof (the "Lenders"), BANK ONE, NA
(having its principal office in Chicago, Illinois), in its individual capacity
as a Lender and in its capacity as contractual representative (the
"Administrative Agent"), BANK OF AMERICA, N.A., as Syndication Agent, and HARRIS
TRUST AND SAVINGS BANK, as Documentation Agent, under that certain Credit
Agreement dated as of December 1, 2000 by and among the Borrowers, the financial
institutions party thereto, the Administrative Agent, the Syndication Agent, the
Documentation Agent and BANC ONE CAPITAL MARKETS, INC., as Lead Arranger and
Sole Book Runner (the "Credit Agreement") Defined terms used herein and not
otherwise defined herein shall have the meaning given to them in the Credit
Agreement.

                                   WITNESSETH

          WHEREAS, the Borrowers, the Lenders, the Administrative Agent, the
Syndication Agent and the Documentation Agent are parties to the Credit
Agreement; and

          WHEREAS, the Borrowers have requested that the Administrative Agent,
the Syndication Agent, the Documentation Agent and the requisite number of
Lenders under Section 9.2 of the Credit Agreement amend the Credit Agreement on
the terms and conditions set forth herein; and

          WHEREAS, the Borrowers, the requisite number of Lenders under Section
9.2 of the Credit Agreement, the Administrative Agent, the Syndication Agent and
the Documentation Agent have agreed to amend the Credit Agreement on the terms
and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises set forth above, the
terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto have agreed to the following amendments to the Credit Agreement:

          1. Amendments to the Credit Agreement. Effective as of February 6,
2001 and subject to the satisfaction of conditions precedent set forth in
Section 2 below, the Credit Agreement is hereby amended as follows:

<PAGE>   2
     1.1. Section 1.1 of the Credit Agreement is amended to insert immediately
          after the phrase "the H-B Acquisition" now appearing in clause (i) of
          the definition of "CHANGE OF CONTROL", the following: "and the PDM
          Acquisition".

     1.2. Section 1.1 of the Credit Agreement is amended to insert immediately
          prior to the period (".") at the end of the definition Of "TRANSACTION
          DOCUMENTS", the following: ", and, from and after the consummation of
          the PDM Acquisition, the documents executed and delivered by the
          Company or any of its Subsidiaries in connection with the PDM
          Acquisition, including, without limitation, the PDM Acquisition
          Agreement".

     1.3. Section 1.1 of the Credit Agreement is amended to add the following
          definitions thereto in the applicable alphabetical locations:

               "PDM ACQUISITION" means the acquisition by the Company of
          substantially all of the assets comprising the water and engineered
          construction divisions of Pitt-Des Moines, Inc, for consideration
          including (i) a cash purchase price of up to $40,000,000 and (ii) the
          issuance of 2,848,172 shares of Capital Stock of the Company, and
          otherwise on terms consistent in all material respects with the terms
          disclosed to the Administrative Agent and set forth in the PDM
          Acquisition Agreement.

               "PDM ACQUISITION AGREEMENT" means that certain Asset Purchase
          Agreement, dated as of February __, 2001, by and between Pitt-Des
          Moines, Inc., a Pennsylvania corporation, as the seller, and the
          Company and CB&I Constructors, Inc., as the buyers, as delivered to
          the Administrative Agent on February 5, 2001.

     1.4. Section 2.3 of the Credit Agreement is amended to delete the reference
          to "six (6) Interest Periods" and to substitute therefor: "seven (7)
          Interest Periods."

     1.5. Section 2.14(D)(iii) of the Credit Agreement is amended to delete the
          language now contained therein and to substitute the following
          therefor:

               "(iii) Notwithstanding anything herein to the contrary, (x) from
          the Closing Date to but not including the date the PDM Acquisition is
          closed and the "Purchase Price" as defined in Section 3.1(a) of the
          PDM Acquisition Agreement is paid as provided therein (the "PDM
          Effective Date"), the Applicable Floating Rate Margin, Applicable
          Eurodollar Margin, Applicable Commitment Fee Percentage and Applicable
          L/C Fee Percentages shall be determined based on a Leverage Ratio of
          greater than or equal to 1.50 to 1.00 and less than 2.00 to 1.00 and
          (y) from and after the PDM Effective Date to but not including the
          fifth (5th) Business Day following receipt of the Company's audited
          financial statements delivered pursuant to Section 7.1(A)(i) (and
          accompanying officer's certificate) for the fiscal quarter ended March
          31, 2001, the Applicable Floating Rate Margin, Applicable Eurodollar
          Margin, Applicable L/C Fee Percentages and Applicable Commitment Fee
          Percentage shall be determined based upon a Leverage Ratio of

                                      -2-
<PAGE>   3
          greater than or equal to 2.00 to 1.00 at which time the Applicable
          Floating Rate Margin, Applicable Eurodollar Margin, Applicable L/C Fee
          Percentages and Applicable Commitment Fee Percentage shall be
          determined based on such financial statements and officer's
          certificate delivered therewith."

     1.6. Article VI of the Credit Agreement is amended to insert the following
          new Section 6.22 and Section 6.23 at the end thereof:

               6.22. PDM Financial Statements.

               (A) Pro Forma Financials. The combined pro forma balance sheet,
          income statements and statements of cash flow of the Company and its
          Subsidiaries (after giving effect to the PDM Acquisition), copies of
          which are attached hereto as Schedule 6.22 to this Agreement, present
          on a pro forma basis the financial condition of the Company and such
          Subsidiaries as of such date, and demonstrate that the Company and its
          Subsidiaries can repay their debts and satisfy their other obligations
          as and when due, and can comply with the requirements of this
          Agreement. The projections and assumptions expressed in the pro forma
          financials referenced in this Section 6.22 were prepared in good faith
          and represent management's opinion based on the information available
          to the Company at the time so furnished and, since the preparation
          thereof and up to the effective date of Amendment No. 1 to this
          Agreement, there has occurred no change in the business, financial
          condition, operations, or prospects of the Company or any of its
          Subsidiaries, or the Company and its Subsidiaries taken as a whole, or
          the water and engineered construction divisions of Pitt-Des Moines,
          Inc. taken as a whole, which has had or could reasonably be expected
          to have a Material Adverse Effect.

               (B) Combined Financial Statements. Complete and accurate copies
          of the audited, combined statements of income, equity and cash flows
          (and the audit reports related thereto) of the water and engineered
          construction divisions of Pitt-Des Moines, Inc. for the fiscal years
          ended December 31, 1997, December 31, 1998 and December 31, 1999 have
          been delivered to the Administrative Agent and such financial
          statements were prepared in accordance with generally accepted
          accounting principles in effect on the date such statements were
          prepared and fairly present the combined financial condition and
          operations of the water and engineered construction divisions of
          Pitt-Des Moines, Inc. at such date and the combined results of their
          operations for the period then ended.

               (C) Interim Financial Statements for PDM. Complete and accurate
          copies of the unaudited, combined statements of income, equity and
          cash flows of the water and engineered construction divisions of
          Pitt-Des Moines, Inc. for the nine-month period ended September 30,
          2000, have been delivered to the Administrative Agent and such
          financial statements were prepared in accordance with generally
          accepted accounting principles in effect on the date such statements
          were prepared and fairly present the combined financial condition and
          operations of the water and engineered construction divisions of
          Pitt-Des Moines,

                                      -3-
<PAGE>   4
          Inc. at such date and the combined results of their operations for the
          period then ended, subject to normal year-end audit adjustments.

               6.23. PDM Acquisition Transactions. As of the closing date for
          the PDM Acquisition and immediately prior to the making of any Loans
          for the purpose of financing the PDM Acquisition:

               (i) the PDM Acquisition Agreement is in full force and effect, no
          material breach, default or waiver of any term or provision thereof by
          the Company or any of its Subsidiaries or, to the best of the
          Company's knowledge, the other parties thereto, has occurred (except
          for such breaches, defaults and waivers, if any, consented to in
          writing by the Administrative Agent) and no action has been taken by
          any competent authority which restrains, prevents or imposes any
          material adverse condition upon, or seeks to restrain, prevent or
          impose any material adverse condition upon, the PDM Acquisition;

               (ii) the representations and warranties of the Company and its
          Subsidiaries contained in the PDM Acquisition Agreement, if any, are
          true and correct in all material respects, and

               (iii) all conditions precedent to, and all consents necessary to
          permit, the funding of the PDM Acquisition have been satisfied or
          waived with the approval of the Administrative Agent (such approval
          not to be unreasonably withheld).

     1.7. Section 7.3(A)(viii) of the Credit Agreement is amended to delete the
          reference to "$30,000,000" and to substitute therefor: "$35,000,000."

     1.8. Section 7.3(F) of the Credit Agreement is amended (i) to insert the
          phrase "and the PDM Acquisition" after the first occurrence of the
          phrase "the H-B Acquisition", and to insert, "the PDM Acquisition"
          after the second occurrence of the phrase "the H-B Acquisition", in
          each case now appearing in clause (a) thereof; (ii) to insert the
          phrase "(other than the PDM Acquisition)" immediately after the phrase
          "since the Closing Date" now appearing in clause (a)(6) thereof; (iii)
          to re-letter clause (ii) thereof as "clause (b)"; and (iv) to insert
          the following new clause (c) at the end thereof:

               (c) On or prior to the date of the PDM Acquisition, the Company
          shall furnish to the Administrative Agent each of the following, with
          sufficient copies for the Lenders, all in form and substance
          satisfactory to the Administrative Agent and the Lenders:

          (1)  Evidence satisfactory to the Administrative Agent that (i)
               all conditions precedent to the consummation of the PDM
               Acquisition have been satisfied or waived with the approval of
               the Administrative Agent, (ii) the PDM Acquisition Agreement has
               been approved by all necessary corporate action of the Board of
               Directors of the Loan Parties party thereto, and have not been
               amended, waived or modified without the

                                      -4-
<PAGE>   5
               approval of the Administrative Agent and (iii) the
               representations and warranties in the PDM Acquisition Agreement
               shall be accurate as of the date of the PDM Acquisition; and the
               Administrative Agent and the Lenders shall have received an
               opinion of counsel satisfactory to them as to (a) the
               enforceability of the PDM Acquisition Agreement and (b) the Loan
               Parties' compliance with law in respect thereof;

          (2)  Evidence satisfactory to the Administrative Agent that all
               required governmental approvals related to the PDM Acquisition
               have been obtained and all related filings made and any
               applicable waiting periods shall have expired or been terminated;

          (3)  Evidence satisfactory to the Administrative Agent that there
               exists no injunction or temporary restraining order which, in the
               judgment of the Administrative Agent, would prohibit the
               consummation of the PDM Acquisition, or any litigation seeking
               such an injunction or restraining order or which could reasonably
               be expected to have material adverse effect on the business or
               financial condition of the water and engineered construction
               divisions of Pitt-Des Moines, Inc.;

          (4)  Copies of any fairness opinion issued to the Company in respect
               of the PDM Acquisition, and opinions of value, solvency and
               other appropriate factual information and advice in form and
               substance reasonably satisfactory to the Administrative Agent
               from the Chief Financial Officer of the Company supporting the
               conclusions that after giving effect to the PDM Acquisition, the
               Company and its Subsidiaries on a consolidated basis are Solvent
               and will be Solvent subsequent to incurring the indebtedness
               contemplated under the Transaction Documents (after giving effect
               to the PDM Acquisition), will be able to pay its debts and
               liabilities as they become due and will not be left with
               unreasonably small working capital for general corporate
               purposes; and

          (5)  Such other documents as the Administrative Agent may have
               reasonably requested, including, without limitation, a copy of
               the final, executed PDM Acquisition Agreement, and all
               instruments, agreements and other documents related thereto,
               including, without limitation, any shareholder agreement.

     1.9. Section 7.4(B) of the Credit Agreement is amended to insert
          immediately after the reference to "("Fixed Charge Coverage Ratio")"
          the following:

          "without duplication"

          and is further amended to insert immediately after the reference to
          "Restricted Payments" in clause (ii)(d) the following:

                                      -5-
<PAGE>   6
           "other than Restricted Payments made to purchase Capital Stock of the
           Company from Pitt-Des Moines, Inc. acquired by Pitt-Des Moines, Inc.
           in connection with the PDM Acquisition"

           and is further amended to insert immediately after the reference to
           "Rentals for such period" in clause (ii)(e) the following:

           "plus (f) amounts paid during such period with respect to Capitalized
           Lease Obligations".

     1.10. Section 7.4(D) of the Credit Agreement is amended to add at the end
           of clause (c) immediately after the reference to "Equity Interests"
           the following:

           "except for the adjustment made to reflect the issuance of Equity
           Interests in connection with the PDM Acquisition plus (d) seventy
           percent (70%) of the amount by which stockholders' equity of the
           Company is, in accordance with Agreement Accounting Principles,
           adjusted as a result of the issuance of Equity Interests by the
           Company in connection with the PDM Acquisition."

     1.11. The Schedules to the Credit Agreement are amended to add a new
           Schedule 6.22 in the form attached to this Amendment and to
           substitute the attached Schedules 1.1.5 and 6.8 for those now part
           of the Credit Agreement.

          2. Conditions of Effectiveness. The effectiveness of this Amendment
is subject to the conditions precedent that the Administrative Agent shall have
received the following:

     (a)  duly executed originals of this Amendment from each of the Borrowers,
          the requisite number of Lenders under Section 9.2 of the Credit
          Agreement, the Administrative Agent, the Syndication Agent and the
          Documentation Agent;

     (b)  duly executed originals of a Reaffirmation in the form of Attachment A
          attached hereto from each of the Subsidiary Guarantors identified
          thereon;

     (c)  payment of an amendment fee of 5 basis points (0.05%) on the
          Commitment of each Lender that approves this Amendment and returns a
          signature page signed by such Lender to James E. Clark of Sidley &
          Austin by telecopy (312-853-7036) by 5:00 p.m. (Chicago time) on
          Friday, January 12, 2001; and

     (d)  such other documents, instruments and agreements as the Administrative
          Agent may reasonably request.

          3. Representations and Warranties of the Borrowers.

     (a)  The Borrowers hereby represent and warrant that this Amendment, the
          attached Reaffirmations and the Credit Agreement, as previously
          executed and as amended hereby, constitute legal, valid and binding
          obligations of the Borrowers and the Subsidiary Guarantors parties
          thereto and are enforceable against the Borrowers and the Subsidiary
          Guarantors parties thereto in accordance with their terms

                                      -6-
<PAGE>   7
          (except as enforceability may be limited by bankruptcy, insolvency, or
          similar laws affecting the enforcement of creditors' rights
          generally).

     (b)  Upon the effectiveness of this Amendment and after giving effect
          hereto, (i) the Borrowers hereby reaffirm all covenants,
          representations and warranties made in the Credit Agreement as amended
          hereby, and agrees that all such covenants, representations and
          warranties shall be true and correct as of the effective date of this
          Amendment (unless such representation and warranty is made as of a
          specific date, in which case such representation and warranty shall be
          true and correct as of such date) and (ii) no Default or Unmatured
          Default has occurred and is continuing.

          4. References to the Credit Agreement.

     (a)  Upon the effectiveness of Section 1 hereof, on and after the date
          hereof each reference in the Credit Agreement (including any reference
          therein to "this Credit Agreement," "hereunder," "hereof," "herein" or
          words of like import referring thereto) or in any other Loan Document
          shall mean and be a reference to the Credit Agreement as amended
          hereby.

     (b)  Except as specifically amended above, the Credit Agreement and all
          other documents, instruments and agreements executed and/or delivered
          in connection therewith, shall remain in full force and effect, and
          are hereby ratified and confirmed.

     (c)  The execution, delivery and effectiveness of this Amendment shall not,
          except as expressly provided herein, operate as a waiver of any
          right, power or remedy of the Administrative Agent or the Lenders, nor
          constitute a waiver of any provision of the Credit Agreement or any
          other documents, instruments and agreements executed and/or delivered
          in connection therewith.

          5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING 735 ILCS 105/5-1 ET SEQ., BUT
OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS) OF THE STATE OF
ILLINOIS.

          6. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

          7. Counterparts. This Amendment may be executed by one or more of the
parties to this Amendment on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       -7-

<PAGE>   8
          IN WITNESS WHEREOF, this Amendment has been duly executed as of the
day and year first above written.

                                     CHICAGO BRIDGE & IRON COMPANY
                                     N.V., as the Company
                                     By:  Chicago Bridge & Iron Company B.V.
                                     Its: Managing Director

                                     By: /s/ Gerald M. Glenn
                                         --------------------------
                                      Name:  Gerald M. Glenn
                                      Title: Managing Director

                                     CB&I CONSTRUCTORS, INC., as a
                                     Subsidiary Borrower

                                     By: /s/ Timothy J.P. Moran
                                         --------------------------
                                      Name:  Timothy J.P. Moran
                                      Title: Treasurer

                                     CBI SERVICES, INC., as a Subsidiary
                                     Borrower

                                     By: /s/ Dennis C. Planic
                                         --------------------------
                                      Name:  Dennis C. Planic
                                      Title: Treasurer

                                     CHICAGO BRIDGE & IRON COMPANY
                                     (DELAWARE), as a Subsidiary Borrower

                                     By: /s/ Timothy J.P. Moran
                                         --------------------------
                                      Name:  Timothy J.P. Moran
                                      Title: Treasurer

<PAGE>   9

                                          CB&I TYLER COMPANY, as a Subsidiary
                                          Borrower

                                          By: /s/ Timothy J.P. Moran
                                              -------------------------------
                                              Name: Timothy J.P. Moran
                                              Title: Treasurer

AGENTS AND LENDERS:                       BANK ONE, NA (having its principal
                                          office in Chicago, Illinois), as
                                          Administrative Agent and as a Lender

                                          By: /s/ Richard T. Bedell
                                              -------------------------------
                                              Name: Richard T. Bedell
                                              Title: Vice President

                                          BANK OF AMERICA, N.A., as Syndication
                                          Agent and as a Lender

                                          By: /s/ Charles F. Lilygren
                                              -------------------------------
                                              Name: Charles F. Lilygren
                                              Title: Managing Director

                                          HARRIS TRUST AND SAVING BANK, as
                                          Documentation Agent and as a Lender

                                          By: /s/ David M. Rubin
                                              -------------------------------
                                              Name: David M. Rubin
                                              Title: Managing Director

                                          ABN AMRO BANK N.V., as a Lender

                                          By: /s/ Thomas K. Peterson
                                              -------------------------------
                                              Name: Thomas K. Peterson
                                              Title: Senior Vice President

                                          By: /s/ Mary L. Honda
                                              -------------------------------
                                              Name: Mary L. Honda
                                              Title: Group Vice President

<PAGE>   10
                                     THE CHASE MANHATTAN BANK, as a
                                     Lender

                                     By: /s/ C.J. Droogan
                                        ---------------------------
                                      Name: C.J. Droogan
                                      Title: Vice President
<PAGE>   11

                                                                    ATTACHMENT A

                                  REAFFIRMATION

     Each of the undersigned hereby acknowledges receipt of a copy of the
foregoing Amendment No. 1 to the Credit Agreement dated as of December 1, 2000
by and among CHICAGO BRIDGE & IRON COMPANY N.V. (the "Company"), CB&I
CONSTRUCTORS, INC., CBI SERVICES, INC., CHICAGO BRIDGE & IRON COMPANY (DELAWARE)
and CB&I TYLER COMPANY (collectively, the "Subsidiary Borrowers", and, together
with the Company, the "Borrowers"), the financial institutions from time to time
party thereto (the "Lenders"), BANK ONE, NA (having its principal office in
Chicago, Illinois), in its individual capacity as a Lender and in its capacity
as contractual representative (the "Administrative Agent") BANK OF AMERICA,
N.A., as Syndication Agent, and HARRIS TRUST AND SAVINGS BANK, as Documentation
Agent, and BANC ONE CAPITAL MARKETS, INC., as Lead Arranger and Sole Book Runner
(as amended and as the same may be amended, restated, supplemented or otherwise
modified from time to time, the "Credit Agreement"), which Amendment No. 1 is
dated as of February __, 2001 (the "Amendment"). Capitalized terms used in this
Reaffirmation and not defined herein shall have the meanings given to them in
the Credit Agreement. Without in any way establishing a course of dealing by the
Administrative Agent or any Leader, each of the undersigned reaffirms the terms
and conditions of the Guaranty, the Subsidiary Security Agreement, the
Subsidiary Pledge Agreement and any other Loan Document executed by it and
acknowledges and agrees that such agreement and each and every such Loan
Document executed by the undersigned in connection with the Credit Agreement
remains in full force and effect and is hereby reaffirmed, ratified and
confirmed. All references to the Credit Agreement contained in the
above-referenced documents shall be a reference to the Credit Agreement as so
modified by the Amendment and as the same may from time to time hereafter be
amended, modified or restated.

Dated: February ___, 2001

CHICAGO BRIDGE & IRON COMPANY              CHICAGO BRIDGE & IRON COMPANY
                                           (DELAWARE)

By /s/ TIMOTHY J.P. MORAN                  By  /s/ TIMOTHY J.P. MORAN
-------------------------------------      ------------------------------------
Name:  Timothy J.P. Moran                  Name:  Timothy J.P. Moran
Title: Treasurer                           Title: Treasurer

<PAGE>   12

CB&I TYLER COMPANY                          CBI CONSTRUCTORS PTY, LTD.

By /s/ Timothy J.P. Moran                   By /s/ David J. Cochrane
   ----------------------------                ------------------------------
Name:  Timothy J.P. Moran                   Name:  David J. Cochrane
Title: Treasurer                            Title: Director

CB&I CONSTRUCTORS, INC.                     LEALAND FINANCE COMPANY B.V.

By /s/ Timothy J.P. Moran                   By /s/ Timothy J.P. Moran
   ----------------------------                ------------------------------
Name:  Timothy J.P. Moran                   Name:  Timothy J.P. Moran
Title: Treasurer                            Title: Managing Director

CBI SERVICES, INC.                          CB&I (EUROPE) B.V.

By /s/ Dennis C. Planic                     By /s/ J.H. Schurink
   ----------------------------                ------------------------------
Name:  Dennis C. Planic                     Name:  J.H. Schurink
Title: Treasurer                            Title: Director

HORTON CBI, LIMITED                         ARABIAN GULF MATERIAL SUPPLY
                                            COMPANY, LIMITED

By /s/ James W. House                       By /s/ Alan R. Black
   ----------------------------                ------------------------------
Name:  James W. House                       Name:  Alan R. Black
Title: Treasurer                            Title: Vice President

CBI VENEZOLANA, S.A.                        ASIA PACIFIC MATERIAL SUPPLY
                                            COMPANY LTD.

By /s/ Mario Marquez                        By /s/ Timothy J.P. Moran
   ----------------------------                ------------------------------
Name:  Mario Marquez                        Name:  Timothy J.P. Moran
Title: Vice President                       Title: Treasurer

CBI EASTERN ANSTALT                         CBI COMPANY LIMITED

By /s/ Timothy J.P. Moran                   By /s/ Timothy J.P. Moran
   ----------------------------                ------------------------------
Name:  Timothy J.P. Moran                   Name:  Timothy J.P. Moran
Title: Administrator                        Title: Treasurer

<PAGE>   13
CBI CONSTRUCCIONES S.A.                         CHICAGO BRIDGE & IRON (ANTILLES)
                                                N.V.

By: /s/ William P. Hare                         By: /s/ Gerald M. Glenn
    ----------------------------                    ----------------------------
Name:  William P. Hare                          Name:  Gerald M. Glenn
Title: Vice President                           Title: Managing Director

CBI CONSTRUCTORS LIMITED                        CHICAGO BRIDGE & IRON COMPANY
                                                B.V.

By: /s/ J.H. Schurink                           By: /s/ Gerald M. Glenn
    ----------------------------                    ----------------------------
Name:  J.H. Schurink                            Name:  Gerald M. Glenn
Title: Director                                 Title: Managing Director

CBI HOLDINGS (U.K.) LIMITED                     CMP HOLDINGS B.V.

By: /s/ J.H. Schurink                           By: /s/ J.H. Schurink
    ----------------------------                    ----------------------------
Name:  J.H. Schurink                            Name:  J.H. Schurink
Title: Director                                 Title: Director

CBI OVERSEAS, LLC                               PACIFIC RIM MATERIAL SUPPLY
                                                COMPANY, LTD.

By: /s/                                         By: /s/ Alan R. Black
    ----------------------------                    ----------------------------
Name:                                           Name:  Alan R. Black
Title:                                          Title: Vice President

CENTRAL TRADING COMPANY, LTD.

By: /s/ Timothy J.P. Moran
    ----------------------------
Name:  Timothy J.P. Moran
Title: Treasurer
<PAGE>   14
HOWE-BAKER INTERNATIONAL, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President and Chief Executive Officer

HOWE-BAKER ENGINEERS, LTD.
By and through its General Partner
Howe-Baker Management, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President

HOWE-BAKER HOLDINGS, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President and Chief Executive Officer

HOWER-BAKER MANAGEMENT, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President

HOWE-BAKER, L.P.
By and through its General Partner
Howe-Baker Management, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President
<PAGE>   15
MATRIX ENGINEERING, LTD.
By and through its General Partner
Howe-Baker International Management, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: Chairman of the Board and Chief Executive Officer

HBI HOLDINGS, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President and Chief Executive Officer

HOWE-BAKER INTERNATIONAL MANAGEMENT, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: Chairman of the Board and Chief Executive Officer

A & B BUILDERS, LTD.
By and through its General Partner
Matrix Management Services, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: Chairman of the Board and Chief Executive Officer

MATRIX MANAGEMENT SERVICES, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: Chairman of the Board and Chief Executive Officer
<PAGE>   16
CALLIDUS TECHNOLOGIES INTERNATIONAL, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: Chairman of the Board

CALLIDUS TECHNOLOGIES, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: Chairman of the Board

CONSTRUCTORS INTERNATIONAL, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President and Chief Executive Officer

PROCESS MANAGEMENT, L.L.C.

By: /s/ Ronald D. Brazzel
    --------------------------
Name:  Ronald D. Brazzel
Title: President Chief Executive Officer<PAGE>   1
                                                                   EXHIBIT 10.23

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
ARTICLE I. PURPOSES...............................................................................................1

ARTICLE II. CERTAIN DEFINITIONS...................................................................................1
   2.1   "Accrued Obligations"....................................................................................1
   2.2   "Agreement Term".........................................................................................1
   2.3   "Affiliate"..............................................................................................2
   2.4   "Article"................................................................................................2
   2.5   "Beneficial Owner".......................................................................................2
   2.6   "Board"..................................................................................................2
   2.7   "Cause"..................................................................................................2
   2.8   "Change of Control"......................................................................................2
   2.9   "Code"...................................................................................................3
   2.10   "Deferral Plan".........................................................................................3
   2.11   "Disability"............................................................................................4
   2.12   "Effective Date"........................................................................................4
   2.13   "Good Reason" has the meaning defined for that term in Section 4.4(b)...................................4
   2.14   "Gross-up Payment"......................................................................................4
   2.15   "Growth Transaction"....................................................................................4
   2.16   "Imminent Control Change Date"..........................................................................4
   2.17   "IRS"...................................................................................................4
   2.18   "1934 Act"..............................................................................................4
   2.19   "Notice of Termination".................................................................................4
   2.20   "Plans".................................................................................................5
   2.21   "Policies"..............................................................................................5
   2.22   "Post-Change Period"  ..................................................................................5
   2.23   "Present Value".........................................................................................5
   2.24   "SEC" means the Securities and Exchange Commission......................................................5
   2.25   "Section" ..............................................................................................5
   2.26   "SERP"..................................................................................................5
   2.27   "Shareholder Agreement".................................................................................5
   2.28   "Subsidiary"............................................................................................5
   2.29   "Termination Date"......................................................................................5
   2.30   "Transaction Owner".....................................................................................6
   2.31   "Voting Securities".....................................................................................6

ARTICLE III. POST-CHANGE PERIOD PROTECTIONS.......................................................................6
   3.1   General..................................................................................................6
   3.2   Position and Duties......................................................................................6
   3.3   Compensation.............................................................................................7
   3.4   Pro-Rata Bonus Payment..................................................................................10
   3.5   Equity Awards Vesting...................................................................................10
   3.6   Nonqualified Deferred Compensation......................................................................10
</TABLE>

                                      -i-

<PAGE>   3
                                TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
ARTICLE IV. TERMINATION OF EMPLOYMENT............................................................................11
   4.1   Disability..............................................................................................11
   4.2   Death...................................................................................................11
   4.3   Cause...................................................................................................11
   4.4   Good Reason.............................................................................................13

ARTICLE V. OBLIGATIONS OF THE COMPANY UPON TERMINATION...........................................................15
   5.1   If  by the Executive for Good Reason or by the Company Other Than for Cause or Disability...............15
   5.2   If by the Company for Cause.............................................................................17
   5.3   If by the Executive Other Than for Good Reason..........................................................17
   5.4   If by the Company for Disability........................................................................17
   5.5   If upon Death.  ........................................................................................17

ARTICLE VI. NON-EXCLUSIVITY OF RIGHTS............................................................................18
   6.1   Waiver of Other Severance Rights........................................................................18
   6.2   Other Rights............................................................................................18

ARTICLE VII. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY..........................................................18
   7.1   Gross-up for Certain Taxes..............................................................................18
   7.2   Determination by the Executive..........................................................................18
   7.3   Additional Gross-up Amounts.............................................................................19
   7.4   Gross-up Multiple.......................................................................................19
   7.5   Opinion of Counsel......................................................................................20
   7.6   Amount Increased or Contested...........................................................................20
   7.7   Refunds.................................................................................................21

ARTICLE VIII. EXPENSES AND INTEREST..............................................................................21
   8.1   Legal Fees and Other Expenses...........................................................................21
   8.2   Interest................................................................................................22

ARTICLE IX. NO SET-OFF OR MITIGATION.............................................................................22
   9.1   No Set-off or Defenses by Company.......................................................................22
   9.2   No Mitigation...........................................................................................23

ARTICLE X. CONFIDENTIALITY AND NONCOMPETITION....................................................................23
   10.1   Confidentiality.  .....................................................................................23
   10.2   Noncompetition/Nonsolicitation.........................................................................23
   10.3   Remedy.  ..............................................................................................24
</TABLE>

                                      -ii-

<PAGE>   4
                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
ARTICLE XI. MISCELLANEOUS........................................................................................24
   11.1   No Assignability.......................................................................................24
   11.2   Successors.............................................................................................25
   11.3   Payments to Beneficiary................................................................................25
   11.4   Non-alienation of Benefits.............................................................................25
   11.5   Severability...........................................................................................25
   11.6   Amendments.............................................................................................25
   11.7   Notices................................................................................................25
   11.8   Counterparts.  ........................................................................................26
   11.9   Governing Law..........................................................................................26
   11.10  Captions...............................................................................................26
   11.11  Tax Withholding........................................................................................26
   11.12  Joint and Several Obligations..........................................................................26
   11.13  No Waiver..............................................................................................26
   11.14  Entire Agreement.......................................................................................26
</TABLE>

                                     -iii-
<PAGE>   5

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

     THIS AGREEMENT dated as of October 13, 2000 is made among CHICAGO BRIDGE &
IRON COMPANY N.V. ("CBICNV"), a Netherlands corporation, CHICAGO BRIDGE & IRON
COMPANY, a Delaware corporation ("CBIC"), CHICAGO BRIDGE & IRON COMPANY
(DELAWARE), a Delaware corporation ("CBICD" and, together with CBICNV and CBIC,
the "Company"), each having its principal place of business in Plainfield,
Illinois, and Gerald M. Glenn (the "Executive"), a resident of Illinois.

                                   ARTICLE I.
                                    PURPOSES

     The Supervisory Board of CBICNV has determined that it is in the best
interests of the Company and its stockholders to assure that the Company will
have the continued service of the Executive, despite the possibility or
occurrence of a change of control of the Company. The Board believes it is
imperative to reduce the distraction of the Executive that would result from the
personal uncertainties caused by a pending or threatened change of control, to
encourage the Executive's full attention and dedication to the Company, and to
provide the Executive with compensation and benefits arrangements upon a change
of control which ensure that the expectations of the Executive will be satisfied
and are competitive with those of similarly-situated corporations. This
Agreement is intended to accomplish these objectives.

                                  ARTICLE II.
                               CERTAIN DEFINITIONS

     When used in this Agreement, the terms specified below shall have the
following meanings:

     2.1 "Accrued Obligations" has the meaning defined for that term in Section
5.3.

     2.2 "Agreement Term" means the period commencing on the date of this
Agreement and ending on the date which is thirty-six (36) months following the
date of this Agreement ("Expiration Date"); provided, however, that the
Agreement Term shall be extended as follows: (a) if neither the Company nor the
Executive gives written notice to the other pursuant to Section 11.7 that this
Agreement shall not be renewed ("Notice of Nonrenewal") within two years from
the date of this Agreement, the Agreement Term shall be extended to an
Expiration Date which shall be the first annual anniversary of the date a Notice
of Nonrenewal is given; (b) if an Imminent Control Change Date occurs before the
Expiration Date (as it may be extended under clause (a) above), then no Notice
of Nonrenewal shall thereafter be effective and the Agreement Term shall
automatically extend to an Expiration Date which is twelve (12) months after the
Imminent Change of Control Date, as further extended under the terms of this
clause should another Imminent Change of Control Date occur prior to the
Expiration Date as from time to time so extended, and (c) if a Change of Control
occurs before the Expiration Date (as extended

                                      -1-
<PAGE>   6

under clause (a) or (b) above or this clause (c)), the Expiration Date shall
automatically be extended to the last day of the Post-Change Period as the
Post-Change Period may be extended as provided in Section 2.22.

     2.3 "Affiliate" means an "affiliate" or "associate" as those terms are
defined in Rule 12b-2 under the 1934 Act.

     2.4 "Article" means an article of this Agreement.

     2.5 "Beneficial Owner" means such term as defined in Rule 13d-3 of the SEC
under the 1934 Act.

     2.6 "Board" means the Supervisory Board of Chicago Bridge & Iron Company
N.V.

     2.7 "Cause" has the meaning defined for that term in Section 4.3(b).

     2.8 "Change of Control" means, except as otherwise provided below, the
occurrence of any of the following:

         (a) any person (as such term is used in Rule 13d-5 of the SEC under the
     1934 Act) or group (as such term is defined in Section 13(d) of the 1934
     Act), other than a Subsidiary or any employee benefit plan (or any related
     trust) of the Company or a Subsidiary, becomes the Beneficial Owner of 25%
     or more of the common shares of any of CBICNV, CBIC or CBICD or of other
     Voting Securities representing 25% or more of the combined voting power of
     all Voting Securities of any of CBICNV, CBIC or CBICD; provided, however,
     that (i) no Change of Control shall be deemed to have occurred solely by
     reason of any such acquisition by a corporation with respect to which,
     after such acquisition, more than 75% of both the common shares or common
     stock of such corporation and the combined voting power of the Voting
     Securities of such corporation are then beneficially owned, directly or
     indirectly, by the persons who were the Beneficial Owners of the common
     shares and other Voting Securities of CBICNV, CBIC or CBICD immediately
     before such acquisition, in substantially the same proportion as their
     ownership of the common shares and other Voting Securities of CBICNV, CBIC
     or CBICD, as the case may be, immediately before such acquisition; and (ii)
     once a Change of Control occurs under this subsection (a), the occurrence
     of the next Change of Control (if any) under this subsection (a) shall be
     determined by reference to a person or group other than the person or group
     whose acquisition of Beneficial Ownership created such prior Change of
     Control unless the original person or group has in the meantime ceased to
     own 25% or more of the common shares of all of CBICNV, CBIC or CBICD or
     other Voting Securities representing 25% or more of the combined voting
     power of all Voting Securities of all of CBICNV, CBIC or CBICD; or

         (b) individuals who, as of the date of this Agreement or as of any
     Effective Date thereafter, are Supervisory Directors of CBICNV (the
     "Incumbent Directors") cease for any reason to constitute at least 50% of
     the members of the Board; provided, however, that (i) any individual who
     becomes a Supervisory Director after the Effective Date whose binding
     nomination for election to the Board by the general meeting of shareholders
     was approved by a vote or written consent of at least 75% of the

                                      -2-
<PAGE>   7

     Supervisory Directors who are then Incumbent Directors shall be considered
     an Incumbent Director, but excluding, for this purpose, any such individual
     whose initial assumption of office is in connection with an actual or
     threatened election contest relating to the election of the directors of
     the Company (as such terms are used in Rule 14a-11 of the SEC under the
     1934 Act); and (ii) once a Change of Control occurs under this subsection
     (b), the occurrence of the next Change of Control (if any) under this
     subsection (b) shall be determined by reference to the individuals who were
     Incumbent Directors immediately after the Effective Date of such prior
     Change of Control; or

         (c) approval by the Board, or by the shareholders of CBICNV, CBIC or
     CBICD, of any of the following:

              (i) a merger, reorganization or consolidation of CBICNV, CBIC or
         CBICD ("Merger"), other than a Merger after which the individuals and
         entities who were the respective beneficial owners of the common shares
         and other Voting Securities of CBICNV, CBIC or CBICD (as the case may
         be) immediately before such Merger beneficially own, directly or
         indirectly, more than 75% of, respectively, the common shares or common
         stock and the combined voting power of the Voting Securities of the
         corporation resulting from such Merger, in substantially the same
         proportion as their ownership of the common shares or common stock and
         other Voting Securities of CBICNV, CBIC or CBICD (as the case may be)
         immediately before such Merger, or

              (ii) a sale or other disposition by any of CBICNV, CBIC or CBICD
         of all or substantially all of the assets owned by it, or

              (iii) any transaction as a result of which CBICNV would not
         thereafter directly or indirectly own beneficially at least 75% of the
         common stock of CBIC or as a result of which CBIC would not thereafter
         directly or indirectly own beneficially at least 75% of the common
         stock of CBICD, unless after either such transaction CBICNV continues
         to own directly or indirectly substantially all of the pre-transaction
         assets of both CBIC and CBICD.

         (d) if a Growth Transaction previously occurred, any Transaction Owner
     individually, or Transaction Owners collectively:

              (i) materially breach(es) any provision of any shareholder
         agreement to which CBICNV and such Transaction Owner(s) are parties
         that addresses the governance of CBICNV following the Growth
         Transaction; or

              (ii) become(s) the Beneficial Owner of more than 66.5% of the
         common shares of any of CBICNV, CBIC or CBICD or of other Voting
         Securities representing more than 66.5% of the combined voting power of
         all Voting Securities of any of CBICNV, CBIC or CBICD.

     2.9 "Code" means the Internal Revenue Code of 1986, as amended.

     2.10 "Deferral Plan" has the meaning defined for that term in Section 3.6.

                                      -3-
<PAGE>   8

     2.11 "Disability" has the meaning defined for that term in Section 4.1(b).

     2.12 "Effective Date" means each date on which a Change of Control occurs
during the Agreement Term; provided, however, that if the Company terminates the
Executive's employment before the date of a Change of Control, and if the
Executive reasonably demonstrates that such termination of employment (a) was at
the request of a third party who had taken steps reasonably calculated to effect
the Change of Control or (b) otherwise arose in connection with or anticipation
of the Change of Control, then "Effective Date" shall mean the date immediately
before the date of such termination of employment.

     2.13 "Good Reason" has the meaning defined for that term in Section 4.4(b).

     2.14 "Gross-up Payment" has the meaning defined for that term in Section
7.1.

     2.15 "Growth Transaction" means (i) the acquisition by Wedge Group
Incorporated ("WGI"), a Delaware corporation, First Reserve Fund VIII, L.P.
("FRF"), a Delaware limited partnership, or Pitt-Des Moines, Inc. ("PDM"), a
Pennsylvania corporation, or their Affiliates, of common shares or other Voting
Securities of CBICNV as contemplated by an agreement with CBICNV for the
acquisition by CBICNV or an Affiliate of Howe-Baker International, Inc. from WGI
(the "HBI Transaction") or for the acquisition of the PDM Engineered
Construction Division and Water Division from PDM (the "PDM Transaction"); (ii)
the acquisition by a person (other than by public offering) of common shares or
other Voting Securities of CBICNV from CBICNV as part of an arrangement for
financing the HBI Transaction or the PDM Transaction; (iii) the acquisition by a
person of common shares or other Voting Securities of CBICNV from a previous
Transaction Owner if the person acquiring such common shares or other Voting
Securities is or becomes a party to a Shareholder Agreement with CBICNV that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner; or (iv) a transfer of common shares or other
Voting Securities of CBICNV from one Transaction Owner to another Transaction
Owner if the acquiring Transaction Owner is subject with respect to such shares
or other Voting Securities to either a preexisting Shareholder Agreement between
CBICNV and the acquiring Transaction Owner or a Shareholder Agreement that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner. However, a "Growth Transaction" will not include
any event described in Section 2.8(d).

     2.16 "Imminent Control Change Date" means any date on which occurs (a) a
presentation to the Company's shareholders generally or any of the Company's
directors or executive officers of a proposal or offer for a Change of Control,
or (b) the public announcement (whether by advertisement, press release, press
interview, public statement, SEC filing or otherwise) of a proposal or offer for
a Change of Control, or (c) such proposal or offer remains effective and
unrevoked.

     2.17 "IRS" means the Internal Revenue Service.

     2.18 "1934 Act" means the Securities Exchange Act of 1934, as amended.

     2.19 "Notice of Termination" means a written notice given in accordance
with Section 11.7 which sets forth (a) the specific termination provision in
this Agreement relied upon

                                      -4-
<PAGE>   9

by the party giving such notice, (b) in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under such termination provision and (c) if the Termination Date is
other than the date of receipt of such Notice of Termination, the Termination
Date.

     2.20 "Plans" means plans, programs, policies or practices of the Company or
any of its Subsidiaries.

     2.21 "Policies" means policies, practices or procedures of the Company or
any of its Subsidiaries.

     2.22 "Post-Change Period" means the period commencing on each Effective
Date and ending on the third annual anniversary of such Effective Date. If a new
Change of Control creates a new Effective Date during any current Post-Change
Period, the Post-Change Period shall be extended to the third annual anniversary
of such new Effective Date; and shall be further extended upon each new
Effective Date during the Post-Change Period as extended.

     2.23 "Present Value" means the present value, determined using (a) the
actuarial assumptions published by the Pension Benefit Guaranty Corporation
("PBGC") for determining immediate annuity values, as in effect on the first day
of the calendar year in which any payment of present value is required, or (b)
if no such actuarial assumptions are published by the PBGC, using the mortality
assumptions of the UP-84 group mortality table and an interest rate assumption
which is the lesser of (i) 75% of the current 30-year Treasury bond rate or (ii)
the current 30-year Treasury bond rate minus 150 basis points.

     2.24 "SEC" means the Securities and Exchange Commission.

     2.25 "Section" means, unless the context otherwise requires, a section of
this Agreement.

     2.26 "SERP" has the meaning defined for that term in Section 3.6.

     2.27 "Shareholder Agreement" means an agreement between CBICNV and a person
that limits the ability of such person and its Affiliates to obtain and exercise
control over the management and policies of the CBICNV.

     2.28 "Subsidiary" means a corporation as defined in Section 424(f) of the
Code (with the Company being treated as the employer corporation for purposes of
this definition) and any partnership or limited liability company in which the
Company or any Subsidiary has a direct or indirect interest (whether in the form
of voting power or participation in profits or capital contribution) of 50% or
more.

     2.29 "Termination Date" means the date of receipt of the Notice of
Termination or any later date specified in such notice (which date shall be not
more than 15 days after the giving of such notice), as the case may be;
provided, however, that (a) if the Company terminates the Executive's employment
other than for Cause or Disability, then the Termination Date shall be the date
of receipt of such Notice of Termination and (b) if the Executive's employment
is terminated by reason of death or Disability, then the Termination Date shall
be the date of death

                                      -5-
<PAGE>   10

of the Executive or the Disability Effective Date (as defined in Section
4.1(a)), as the case may be.

     2.30 "Transaction Owner" means a person who acquires common shares or other
Voting Securities of CBICNV in a Growth Transaction, or any Affiliate of such
person.

     2.31 "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors of
such corporation.

                                  ARTICLE III.
                         POST-CHANGE PERIOD PROTECTIONS

     3.1 General. On the Effective Date and during the Post-Change Period
thereafter the Company shall make the payments, provide the benefits and fulfill
the other obligations required by this Article III. However, if, such Effective
Date and Post-Change Period result solely from a Growth Transaction:

         (a) Section 3.3(b) shall not apply except for purposes of determining
     the obligations of the Company on termination pursuant to Section 5.1, and
     to the extent provided in Section 4.4(b)(iii) and as modified thereby, in
     determining the existence of Good Reason;

         (b) clause (ii) of each of Sections 3.3(c) through 3.3(h) shall not
     apply except for purposes of determining the obligations of the Company on
     termination pursuant to Section 5.1; but the aggregate value to the
     Executive of all Plans, fringe benefits and arrangements described in
     Sections 3.3(c) through 3.3(h) shall not be less favorable, in the
     aggregate, than the aggregate value to the Executive of such Plans, fringe
     benefits and arrangements provided by the Company to the Executive or peer
     executives at any time during the 90-day period immediately before such
     Effective Date; and

         (c) Except as otherwise agreed to by separate agreement between the
     Company and the Executive that is more favorable to the Executive, Sections
     3.4, 3.5, and 3.6 shall not apply on such Effective Date; but to the extent
     such vesting or payment is not otherwise required by Section 5.1, Sections
     3.4, 3.5 and 3.6, shall apply to the Executive on the Termination Date (as
     if such Sections referred to the "Termination Date" instead of the
     "Effective Date") if during the Post-Change Period the Company shall
     terminate Executive's employment other than for Cause, or if the Executive
     shall terminate employment for Good Reason, or if employment terminates as
     a result of Disability or death.

     3.2 Position and Duties.

         (a) During the Post-Change Period, (1) the Executive's position
     (including offices, titles, reporting requirements and responsibilities),
     authority and duties shall be at least commensurate in all material
     respects with the most significant of those held by, exercised by, or
     assigned to the Executive at any time during the 90-day period immediately
     before the Effective Date and (2) the Executive's services shall be

                                      -6-
<PAGE>   11

     performed at the location where the Executive was employed immediately
     before the Effective Date or any other location less than 40 miles from
     such former location.

         (b) During the Post-Change Period (other than any periods of vacation,
     sick leave, disability leave or other family or medical leave to which the
     Executive is entitled), the Executive shall devote his or her full
     attention and time to the business and affairs of the Company and, to the
     extent necessary to discharge the duties assigned to the Executive in
     accordance with this Agreement, shall use his or her best efforts to
     perform such duties faithfully and efficiently. During the Post-Change
     Period, the Executive may (1) serve on corporate, civic or charitable
     boards or committees, (2) deliver lectures, fulfill speaking engagements or
     teach at educational institutions and (3) manage personal investments, so
     long as such activities are consistent with the Policies of the Company or
     its Subsidiaries at the Effective Date and do not significantly interfere
     with the performance of the Executive's duties under this Agreement. To the
     extent that any such activities have been conducted by the Executive before
     the Effective Date and were consistent with the Policies of the Company or
     its Subsidiaries at the Effective Date, the continued conduct of such
     activities (or activities similar in nature and scope) after the Effective
     Date shall not be deemed to interfere with the performance of the
     Executive's duties under this Agreement.

     3.3 Compensation.

         (a) Base Salary. During the Post-Change Period, the Company shall pay
     or cause to be paid to the Executive an annual base salary in cash
     ("Guaranteed Base Salary"), which shall be paid in a manner consistent with
     the Company's payroll practices in effect immediately before the Effective
     Date for such Post-Change Period, at a rate at least equal to the highest
     rate of annual salary paid or payable to the Executive by the Company at
     any time during the 12-month period immediately before such Effective Date.
     During the Post-Change Period, the Guaranteed Base Salary shall be reviewed
     at least annually and shall be increased at any time and from time to time
     as shall be substantially consistent with increases in base salary awarded
     to other peer executives of the Company. Any increase in Guaranteed Base
     Salary shall not limit or reduce any other obligation of the Company to the
     Executive under this Agreement. After any such increase, the Guaranteed
     Base Salary shall not be reduced and the term "Guaranteed Base Salary"
     shall thereafter refer to the increased amount.

         (b) Guaranteed Bonus.

              (i) During the Post-Change Period, the Company shall pay or cause
         to be paid to the Executive a bonus (the "Guaranteed Bonus") for each
         Performance Period which ends during the Post-Change Period.
         "Performance Period" means each period of time designated in accordance
         with any bonus arrangement ("Bonus Plan") which is based upon
         performance and approved by the Board or by any committee of the Board.
         For purposes of this Section 3.3, a Bonus Plan includes, without
         limitation, the Company's Incentive Compensation Plan as in effect on
         the date hereof or any similar plan, but does not include the Company's
         1997 or 1999 Long-Term Incentive Plan (an "LTIP") or any similar plan
         under

                                      -7-
<PAGE>   12

         which equity awards described Section 3.5 are granted, unless
         failure to consider the LTIP a Bonus Plan would leave the Company
         without any Bonus Plan covering Executive. The Guaranteed Bonus shall
         be at least equal to the product of (A) the greater of (i) the On Plan
         Percentage (as defined below), or (ii) the Actual Bonus Percentage (as
         defined below), multiplied by (B) the Guaranteed Base Salary.

              (ii) For purposes of this Section 3.3(b):

                   (A) "On Plan Percentage" means the percentage of Guaranteed
              Base Salary to which the Executive would be entitled under the
              Bonus Plan(s) for the Performance Period for which the Guaranteed
              Bonus is awarded ("Current Performance Period") if performance
              achieved 100% of the target performance goals established pursuant
              to such Bonus Plan(s); or, if greater, the percentage of
              Guaranteed Base Salary to which Executive would have been entitled
              under the Bonus Plan(s) for the Performance Period ending
              immediately prior to the Post-Change Period if performance
              achieved 100% of the performance goals established pursuant to
              such Bonus Plan(s) for such prior Performance Period.

                   (B) "Actual Bonus Percentage" means the percentage of
              Guaranteed Base Salary for the Current Performance Period to which
              the Executive would be entitled under any Bonus Plan if the
              performance were measured by the actual performance during the
              Current Performance Period; provided, however, that for purposes
              of determining the Guaranteed Bonus for purposes of Sections 3.4
              and 5.1(b), "Actual Bonus Percentage" means the percentage of
              Guaranteed Base Salary for the Performance Period during which the
              Effective Date (for purposes of Section 3.4) or Termination Date
              (for purposes of Section 5.1(b)) occurs to which the Executive
              would be entitled if the performance during such Performance
              Period were measured by the actual performance during the portion
              of such Performance Period before the Effective Date or the
              Termination Date (whichever is applicable), projected to the last
              day of such Performance Period.

         (c) Incentive, Savings and Retirement Plans. During the Post-Change
    Period and notwithstanding the payment required by Section 3.6, (i) the
    Executive shall be entitled to continue to participate in all incentive
    (including long-term incentives and management stock plans), savings,
    deferred compensation, retirement and benefit restoration Plans provided by
    the Company and applicable to other peer executives of the Company, but (ii)
    in no event shall such Plans provide the Executive with incentive (including
    long-term incentives and management stock benefits), savings, deferred
    compensation, retirement and benefit restoration benefits which, in any
    case, are less favorable, in the aggregate, than the most favorable of those
    provided by the Company to

                                      -8-
<PAGE>   13

    the Executive or to peer executives under such Plans as in effect at any
    time during the 90-day period immediately before any Effective Date.

         (d) Welfare Benefit Plans. During the Post-Change Period, (i) the
    Executive and the Executive's family shall be eligible to participate in,
    and receive all benefits under, welfare benefit Plans (including, without
    limitation, medical, prescription, dental, disability, salary continuance,
    individual life, group life, dependent life, accidental death and travel
    accident insurance Plans) provided by the Company and applicable to other
    peer executives of the Company and their families, but (ii) in no event
    shall such Plans provide benefits which in any case are less favorable, in
    the aggregate, than the most favorable of those provided by the Company to
    the Executive or to peer executives under such Plans as in effect at any
    time during the 90-day period immediately before any Effective Date.

         (e) Fringe Benefits. During the Post-Change Period, (i) the Executive
    shall be entitled to fringe benefits (including, without limitation, any
    foreign service travel and housing allowances for Executive and the
    Executive's family under Plans or Policies of the Company for foreign
    service) in accordance with the most favorable Plans provided by the Company
    and applicable to other peer executives of the Company, but (ii) in no event
    shall such Plans provide fringe benefits which in any case are less
    favorable, in the aggregate, than the most favorable of those provided by
    the Company to the Executive or peer executives under such Plans in effect
    at any time during the 90-day period immediately before any Effective Date.

         (f) Expenses. During the Post-Change Period, (i) the Executive shall be
    entitled to prompt reimbursement of all reasonable employment-related
    expenses incurred by the Executive upon the Company's receipt of accountings
    in accordance with the most favorable Policies applicable to peer executives
    of the Company, but (ii) in no event shall such Policies be less favorable,
    in the aggregate, than the most favorable of those provided by the Company
    to the Executive or to peer executives under such Policies in effect at any
    time during the 90-day period immediately before any Effective Date.

         (g) Office and Support Staff. During the Post-Change Period, (i) the
    Executive shall be entitled to an office or offices of a size and with
    furnishings and other appointments, and to secretarial and other assistance
    in accordance with the most favorable Policies applicable to peer executives
    of the Company, but (ii) in no event shall such Policies be less favorable,
    in the aggregate, than the most favorable of those provided by the Company
    to the Executive or to peer executives under such Policies in effect at any
    time during the 90-day period immediately before any Effective Date.

         (h) Vacation. During the Post-Change Period, (i) the Executive shall be
    entitled to paid vacation in accordance with the most favorable Policies
    applicable to peer executives of the Company, but (ii) in no event shall
    such Policies be less favorable, in the aggregate, than the most favorable
    of those provided by the Company to the Executive or to peer executives
    under such Policies in effect at any time during the 90-day period
    immediately before any Effective Date.

                                      -9-
<PAGE>   14

     3.4 Pro-Rata Bonus Payment.

     On each Effective Date the Company shall pay to Executive in a single lump
sum in cash the product of (A) the Guaranteed Bonus for the Performance Period
in which falls the Effective Date, multiplied by (B) a fraction, the numerator
of which is the number of days in such Performance Period before the Effective
Date, and the denominator of which is the total number of days in such
Performance Period. The amount of Guaranteed Bonus for such Performance Period
otherwise payable pursuant to Section 3.3(b), or otherwise payable pursuant to
this Section 3.4 by reason of a later Change of Control in the same Performance
Period, shall be reduced by any earlier payment made under this Section 3.4 for
the same Performance Period.

     3.5 Equity Awards Vesting.

     On the Effective Date, the Executive shall become fully vested in:

         (a) any and all outstanding options ("Options") to purchase common
    shares of the Company granted to Executive prior to the Effective Date under
    any Plan, contract or arrangement for Options, which Options shall become
    fully exercisable;

         (b) any outstanding shares of restricted common shares of the Company
    regardless whether such restrictions are scheduled to lapse based on service
    or on performance or both ("Restricted Stock") awarded to Executive under
    any Plan, contract or arrangement for Restricted Stock; which shall become
    unrestricted and freely transferable; and

         (c) any outstanding awards providing for the payment of a variable
    number of common shares of the Company dependent on the achievement of
    performance goals, or of an amount based on the fair market value of such
    shares or the appreciation thereof ("Performance Shares") awarded to
    Executive under any Plan, contract or arrangement for Performance Shares;
    and there shall be paid out in cash to Executive within 30 days following
    the Effective Date of the Change of Control the value of the Performance
    Shares to which Executive would have been entitled if performance achieved
    100% of the target performance goals established for such Performance
    Shares.

     To the extent that for any reason such Options, Restricted Stock and
Performance Shares do not become vested on the Effective Date, the Company shall
pay Executive a cash amount equal to (i) the positive difference, if any,
between the value of the shares of common stock subject to the Options that did
not become vested (or, if greater, the value paid or to be paid in connection
with the Change of Control to a holder of an equal number of shares of common
stock ("Change of Control Value")) and the Option exercise price with respect to
such shares, as of and on the date such Options are forfeited; plus (ii) the
fair market value (determined without regard to any restriction other than a
restriction which by its terms may never lapse) (or, if greater, the Change of
Control Value) of all non-vested forfeited Restricted Stock and Performance
Shares as of and on the date such Restricted Stock or Performance Shares are
forfeited. Nothing in this Section 3.5 shall require the vesting, or payment, of
equity awards granted after such Effective Date unless a new Effective Date has
intervened

     3.6 Nonqualified Deferred Compensation.

                                      -10-
<PAGE>   15

     On the Effective Date Executive shall become fully vested in and the
Company shall pay to Executive in a single lump sum in cash (1) the value of
Executive's then-accrued benefits, if any, which remain unpaid under any
nonqualified deferred compensation, benefit restoration, excess benefit or other
individual account plan, contract or arrangement for deferred compensation
maintained by the Company under which benefits are calculated by reference to an
individual account (a "Deferral Plan"), and (2) the Present Value of Executive's
then-accrued benefits, if any, which remain unpaid under any nonqualified
supplemental executive retirement plan or other plan, contract or arrangement
for retirement benefits maintained by the Company under which benefits are
calculated by reference to a defined amount payable in connection with or after
retirement or other termination of employment an (a "SERP").

                                  ARTICLE IV.
                            TERMINATION OF EMPLOYMENT

     4.1 Disability.

         (a) During the Post-Change Period, the Company may terminate the
    Executive's employment upon the Executive's Disability (as defined in
    Section 4.1(b)) by giving the Executive or his legal representative, as
    applicable, Notice of Termination accompanied by a certification of the
    Executive's Disability by a physician selected by the Company or its
    insurers and reasonably acceptable to the Executive or the Executive's legal
    representative. The Executive's employment shall terminate effective on the
    30th day (the "Disability Effective Date") after the Executive's receipt of
    such Notice of Termination unless, before the Disability Effective Date, the
    Executive shall have resumed the full-time performance of the Executive's
    duties.

         (b) "Disability" means any medically determinable physical or mental
    impairment that has lasted for a continuous period of not less than six
    months and can be expected to be permanent or of indefinite duration, and
    that renders the Executive unable to perform the essential functions
    required under this Agreement with or without reasonable accommodation.

         (c) Unless the Company establishes, by clear and convincing evidence,
    that Executive has a Disability, any purported termination of employment for
    Disability shall be deemed a termination other than for Disability for all
    purposes of this Agreement.

     4.2 Death. The Executive's employment shall terminate automatically upon
the Executive's death during the Post-Change Period.

     4.3 Cause.

         (a) During the Post-Change Period, the Company may terminate the
    Executive's employment for Cause.

         (b) "Cause" means any of the following: Executive's conviction of a
    felony or of a crime involving fraud, dishonesty or moral turpitude;
    Executive's willful or intentional material breach of this Agreement that
    results in financial detriment that is

                                      -11-
<PAGE>   16
    material to the Company as a whole; or willful or intentional misconduct by
    Executive in the performance of his duties under this Agreement that
    results in financial detriment that is material to the Company as a whole;
    except that Cause shall not mean:

              (i) bad judgment or negligence;

              (ii) any act or omission believed by the Executive in good faith
         to have been in or not opposed to the interest of the Company (without
         intent of the Executive to gain, directly or indirectly, a profit to
         which the Executive was not legally entitled);

              (iii) any act or omission with respect to which a determination
         could properly have been made by the Board that the Executive met the
         applicable standard of conduct for indemnification or reimbursement
         under the Company's by-laws, any applicable indemnification agreement,
         or applicable law, in each case in effect at the time of such act or
         omission; or

              (iv) any act or omission with respect to which Notice of
         Termination is not given within 12 months after the earliest date on
         which any member of the Board, not a party to the act or omission, knew
         or should have known of such act or omission.

         (c) The Company may not during the Post-Change Period terminate
     Executive's employment for Cause unless the following procedures are fully
     complied with:

              (i) no fewer than 45 days prior to the Termination Date, the
         Company provides Executive with written notice (the "Notice of
         Consideration") of its intent to consider termination of Executive's
         employment for Cause, including a detailed description of the specific
         reasons which form the basis for such consideration;

              (ii) if after providing Notice of Consideration, the Board may, by
         the affirmative vote of at least 80% of its members (excluding for this
         purpose Executive if he is a member of the Board, and any other member
         of the Board reasonably believed by the Board to be involved in the
         events issuing the Notice of Consideration), suspend Executive with pay
         until a final determination pursuant to this Section has been made;

              (iii) for a period of not less than 30 days after the date Notice
         of Consideration is provided, Executive shall have the opportunity to
         appear before the Board, with or without legal representation, at
         Executive's election, to present arguments and evidence on his own
         behalf; and

              (iv) following the presentation to the Board as provided in (3)
         above or Executive's failure to appear before the Board at a date and
         time specified in the Notice of Consideration (which date shall not be
         less than 30 days after the date the Notice of Consideration is
         provided), Executive may be terminated for Cause

                                      -12-
<PAGE>   17

         only if (i) the Board, by the affirmative vote of at least 80% of its
         members (excluding Executive if he is a member of the Board, and any
         other member of the Board reasonably believed by the Board to be
         involved in the events leading the Board to terminate Executive for
         Cause), determines that the actions or inactions of Executive specified
         in the Notice of Consideration occurred, that such actions or inactions
         constitute Cause, and that Executive's employment should accordingly be
         terminated for Cause; and (ii) the Board provides Executive with a
         written determination (a "Notice of Termination for Cause") setting
         forth in specific detail the basis of such Termination of Employment,
         which Notice of Termination for Cause shall be consistent with the
         reasons set forth in the Notice of Consideration.

     Unless the Company establishes, by clear and convincing evidence, both (x)
its full compliance with the substantive and procedural requirements of this
Section prior to a termination of employment for Cause, and (y) that Executive's
action or inaction specified in the Notice of Termination for Cause did occur
and constituted Cause, any purported termination of employment for Cause shall
be deemed a termination without Cause for all purposes of this Agreement.

     4.4 Good Reason.

         (a) During the Post-Change Period, the Executive may terminate
     employment for Good Reason within 12 months (or, if applicable, within the
     shorter period provided by subsection (b)(ix) below) following the
     Executive's actual knowledge of an act or omission which constitutes Good
     Reason; provided, however, that the Executive's failure to terminate within
     12 months (or, if applicable, within the shorter period provided by
     subsection (b)(ix) below) following Executive's actual knowledge of a
     particular act or omission which constitutes Good Reason shall not prevent
     Executive's termination for any other act or omission which constitutes
     Good Reason.

         (b) "Good Reason" means any of the following:

              (i) the assignment to the Executive of any duties inconsistent in
         any respect with the Executive's position (including offices, titles,
         reporting requirements or responsibilities), authority or duties as
         prescribed by Section 3.2(a)(1), or the Company's requiring the
         Executive to be based at any office or location other than the location
         described in Section 3.2(a)(2);or any other action by the Company which
         results in a diminution or other material adverse change in such
         position, authority or duties;

              (ii) the failure to pay Guaranteed Base Salary in at least the
         amount prescribed by Section 3.2(a);

              (iii) the failure to pay Guaranteed Bonus in at least the amount
         prescribed by Section 3.3(b); provided, however, that if the
         Post-Change Period results solely from a Growth Transaction; Good
         Reason under this clause (iii) shall only be the failure to provide
         Executive with a bonus opportunity (including

                                      -13-
<PAGE>   18

         designation of target performance goals and percentage of Guaranteed
         Base Salary payable on achievement of target performance goals) no less
         favorable to Executive than that provided by the Company to Executive
         for either of the two most recent Performance Periods beginning before
         such Growth Transaction;

              (iv) the failure to provide any plan or fringe benefits or
         perquisites prescribed by Sections 3.3(c) through 3.3(h), as modified,
         if the Post-Change Period results solely from a Growth Transaction, by
         Section 3.1(b);

              (v) any other failure by the Company to comply with any of the
         provisions of Article III;

              (vi) any other material adverse change to the terms and conditions
         of the Executive's employment (whether or not also described in clauses
         (i) through (v) above);

              (vii) the Board's giving Notice of Consideration pursuant to
         Section 4.3(c) (of the intent to consider terminating Executive for
         Cause) but failing to terminate Executive for Cause within a period of
         90 days thereafter in compliance with all substantive and procedural
         requirements of Section 4.3,

              (viii) any purported termination by the Company of the Executive's
         employment other than as expressly permitted by this Agreement (any
         such purported termination shall not be effective for any other purpose
         under this Agreement);

              (ix) a termination of employment by the Executive for any reason
         or no reason during the 60-day period commencing 30 days after a Major
         Change of Control, for which purpose "Major Change of Control" means an
         event that is not a Growth Transaction and that would be a Change of
         Control under Section 2.8 if Section 2.8 were applied (A) by
         substituting "50%" for each occurrence of "25%" in subsection 2.8(a),
         (B) by substituting the "the closing of any of the following:" for the
         words "approval by the Board, or by the shareholders of CBICNV, CBIC,
         or CBICD, of any of the following:" in the introductory clause of
         subsection 2.8(c), and (C) by substituting "50%" for each occurrence of
         "75%" in subsection 2.8(c);

              (x) a failure by the Company to cause a successor, prior to or as
         of the date it becomes a successor, to assume and agree to perform this
         Agreement in accordance with the provisions of Section 11.2 hereof.

     Any determination by Executive that any of the foregoing events has
     occurred and constitutes "Good Reason" shall be conclusive and binding for
     all purposes unless the Company establishes by clear and convincing
     evidence that Executive did not have a reasonable basis for such a
     determination.

         (c) Any termination of employment by the Executive for Good Reason
     shall be communicated to the Company by Notice of Termination. The passage
     of time not in

                                      -14-
<PAGE>   19

         excess of 12 months after the Executive has actual knowledge of an act
         or omission which constitutes Good Reason prior to delivery of Notice
         of Termination or a failure by the Executive to include in the Notice
         of Termination any fact or circumstance which contributes to a showing
         of Good Reason shall not waive any right of the Executive under this
         Agreement or preclude the Executive from asserting such fact or
         circumstance in enforcing rights under this Agreement.

                                   ARTICLE V.
                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

     5.1 If by the Executive for Good Reason or by the Company Other Than for
Cause or Disability. If, during the Post-Change Period, the Company shall
terminate Executive's employment other than for Cause, Disability, or death or
if the Executive shall terminate employment for Good Reason, the Company shall
pay the Executive within five (5) days of the Termination Date (or if earlier
within five (5) days of the last day Executive performed services for the
Company as an Employee), in addition to all vested rights arising from the
Executive's employment as specified in Article III, a cash amount equal to the
sum of the amounts described in (a) through (g) below and the additional
benefits described in (h) through (i) below:

         (a) The Guaranteed Base Salary, any accrued vacation pay and business
     expenses incurred through the Termination Date, to the extent not
     previously paid to the Executive by the Company.

         (b) The difference between (1) the product of (A) the Guaranteed Bonus,
     multiplied by (B) a fraction, the numerator of which is the number of days
     in the Termination Performance Period which elapsed before the Termination
     Date, and the denominator of which is the total number of days in the
     Termination Performance Period, and (2) the amount of any Guaranteed Bonus
     previously paid to the Executive by the Company with respect to the
     Termination Performance Period.

         (c) The value of Executive's then-accrued benefits under any Deferral
     Plan plus the present value of Executive's then-accrued benefits under any
     SERP, determined without disregarding service and compensation before any
     Effective Date but then reduced by the amount, if any, previously paid to
     the Executive by the Company pursuant to Section 3.6.

         (d) An amount equal to the product of (1) three (3.0), multiplied by
     (2) the sum of (A) the Guaranteed Base Salary and (B) the Guaranteed Bonus.

         (e) An amount equal to the sum of the value of the unvested portion of
     the Executive's accounts or accrued benefits under any qualified plan
     maintained by the Company as of the Termination Date.

         (f) The difference between (1) the amount that would be determined
     under Section 5.1(c) above if such amount were calculated (to the extent
     applicable in determining such amount) (A) as though the Executive
     continued to accrue benefits and be credited with service under the SERP
     for a period of three years after the Termination

                                      -15-
<PAGE>   20

     Date, (B) as though the Executive received compensation during each year of
     such three-year period equal to the sum of the Guaranteed Base Salary and
     the highest Guaranteed Bonus paid (or payable) to the Executive in the
     three calendar years preceding the Termination Date, (C) as though the
     Executive were three (3) years older than his age at the Termination Date,
     and (D) without disregarding service and compensation before the
     Termination Date; reduced by (2) the amount (if any) previously or
     simultaneously paid by the Company to the Executive pursuant to Sections
     3.6 and 5.1(c).

         (g) In addition to the foregoing amounts, the Company shall pay on
     behalf of Executive all fees and costs charged by the outplacement firm
     selected by the Executive to provide outplacement services or at the
     election of the Executive, an immediate cash payment equal to the fees and
     expenses such outplacement firm would charge but not in excess of 20% of
     the Guaranteed Base Salary.

         (h) In addition to the foregoing payments, until the third annual
     anniversary of the Termination Date or such later date as any Plan of the
     Company may specify, the Company shall continue to provide to the Executive
     and the Executive's family welfare benefits (including, without limitation,
     medical, prescription, dental, disability, salary continuance, individual
     life, group life, accidental death and travel accident insurance plans and
     programs) which are at least as favorable as the most favorable Plans of
     the Company applicable to other peer executives and their families as of
     the Termination Date, but which are in no event less favorable than the
     most favorable Plans of the Company applicable to other peer executives and
     their families during the 90-day period immediately before the Effective
     Date; and the cost of such welfare benefits to Executive shall not exceed
     the cost of such benefits to the Executive immediately before the
     Termination Date or, if less, the Effective Date.

         (i) Beginning on the later of the third annual anniversary of the
     Termination Date or the date Executive attains age 50, and continuing until
     the death of the last to die of Executive and his or her spouse, the
     Company shall provide to the Executive and to Executive's family medical
     benefits which (1) until Executive attains age sixty-five (65) are at least
     as favorable as the most favorable medical Plans of the Company applicable
     to actively employed peer executives and that covered any active employee
     of the Company as of the Effective Date, and (2) from and after the date
     Executive attains age 65, are at least as favorable as the most favorable
     medical Plans of the Company applicable to eligible retired peer executives
     and that covered any retired employee as of the Effective Date; and the
     cost to Executive of such medical benefits for the period described in
     clause (1) shall not exceed the cost of such benefits to Executive
     immediately before the Termination Date or, if less, the Effective Date,
     and the cost to Executive of such medical benefits for the period described
     in clause (2) shall not exceed the cost of such benefits to any similarly
     situated eligible retiree of the Company immediately before the Termination
     Date or, if less, the Effective Date.

The Executive's rights under this Section 5.1 shall be in addition to, and not
in lieu of, any post-termination continuation coverage or conversion rights the
Executive may have pursuant to applicable law, including without limitation
continuation coverage required by Section 4980 of the Code or Part 6 of Title I
of the Employee Retirement Income Security Act of 1974, as

                                      -16-
<PAGE>   21

amended, for which purpose the date of the qualifying event shall not be earlier
than the date specified in the first sentence of Section 5.1(i). However, if the
Executive is covered under a medical, life, or disability insurance plan
provided by a subsequent employer at equal or lesser cost to Executive than the
cost to Executive of coverage under the corresponding Company plan required by
Sections 5.1(i), then the benefits under the corresponding Company plan required
by Sections 5.1(i) shall be secondary to the benefits under the subsequent
employer's medical, life, or disability insurance plan.

     5.2 If by the Company for Cause. If the Company terminates the Executive's
employment for Cause during the Post-Change Period pursuant to the procedures
set forth in Section 4.3, this Agreement shall terminate without further
obligation by the Company to the Executive, other than the obligation
immediately to pay the Executive in cash the Executive's Guaranteed Base Salary
through the Termination Date, plus the amount of any compensation previously
deferred by the Executive, plus any accrued vacation pay and business expenses
incurred through the Termination Date, in each case to the extent not previously
paid or reimbursed.

     5.3 If by the Executive Other Than for Good Reason. If the Executive
terminates employment during the Post-Change Period other than for Good Reason,
Disability or death, this Agreement shall terminate without further obligations
by the Company, other than the obligation immediately to pay the Executive in
cash all amounts specified in paragraphs (a), (b) and (c) of Section 5.1 (such
amounts collectively, the "Accrued Obligations").

     5.4 If by the Company for Disability. If the Company terminates the
Executive's employment by reason of the Executive's Disability during the
Post-Change Period, this Agreement shall terminate without further obligations
to the Executive, other than:

         (a) the Company's obligation immediately to pay the Executive in cash
     all Accrued Obligations, and

         (b) the Executive's right after the Disability Effective Date to
     receive disability and other benefits at least equal to the greater of (i)
     those provided under the most favorable disability Plans applicable to
     disabled peer executives of the Company in effect immediately before the
     Termination Date or (ii) those provided under the most favorable disability
     Plans of the Company in effect at any time during the 90-day period
     immediately before the Effective Date.

     5.5 If upon Death. If the Executive's employment is terminated by reason of
the Executive's death during the Post-Change Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than the obligation immediately to pay the
Executive's estate or beneficiary in cash all Accrued Obligations. Despite
anything in this Agreement to the contrary, the Executive's family shall be
entitled to receive benefits at least equal to the most favorable benefits
provided by the Company to the surviving families of peer executives of the
Company under such Plans, but in no event shall such Plans provide benefits
which in each case are less favorable, in the aggregate, than the most favorable
of those provided by the Company to the Executive under such Plans in effect at
any time during the 90-day period immediately before the Effective Date.

                                      -17-
<PAGE>   22

                                  ARTICLE VI.
                            NON-EXCLUSIVITY OF RIGHTS

     6.1 Waiver of Other Severance Rights. To the extent that payments are made
to the Executive pursuant to Section 5.1, the Executive hereby waives the right
to receive severance payments under any other Plan or agreement of or with the
Company.

     6.2 Other Rights. Except as provided in Section 6.1, this Agreement shall
not prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other Plans provided by the Company or any of its
Subsidiaries and for which the Executive may qualify, nor shall this Agreement
limit or otherwise affect such rights as the Executive may have under any other
agreements with the Company or any of its Subsidiaries. Amounts which are vested
benefits or which the Executive is otherwise entitled to receive under any Plan
of the Company or any of its Subsidiaries and any other payment or benefit
required by law at or after the Termination Date shall be payable in accordance
with such Plan or applicable law except as expressly modified by this Agreement.

                                  ARTICLE VII.
                   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY

     7.1 Gross-up for Certain Taxes. If it is determined (by the reasonable
computation of the Company's independent auditors, which determinations shall be
certified to by such auditors and set forth in a written certificate
("Certificate") delivered to the Executive) that any benefit received or deemed
received by the Executive from the Company pursuant to this Agreement or
otherwise (collectively, the "Payments") is or will become subject to any excise
tax under Section 4999 of the Code or any similar tax payable under any United
States federal, state, local or other law (such excise tax and all such similar
taxes collectively, "Excise Taxes"), then the Company shall, immediately after
such determination, pay the Executive an amount (the "Gross-up Payment") equal
to the product of

         (a) the amount of such Excise Taxes

multiplied by

         (b) the Gross-up Multiple (as defined in Section 7.4).

The Gross-up Payment is intended to compensate the Executive for the Excise
Taxes and any federal, state, local or other income or excise taxes or other
taxes payable by the Executive with respect to the Gross-up Payment.

     The Executive or the Company may at any time request the Company's
independent auditors to prepare and deliver a Certificate to the Executive. The
Company shall, in addition to complying with Section 7.2, cause all
determinations and certifications under the Article to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and
file the Executive's individual tax returns on a timely basis.

     7.2 Determination by the Executive.

                                      -18-
<PAGE>   23

         (a) If the Company or its independent auditors shall fail to deliver a
     Certificate to the Executive (and to pay to the Executive the amount of the
     Gross-up Payment, if any) within 14 days after receipt from the Executive
     of a written request for a Certificate, or if at any time following receipt
     of a Certificate the Executive disputes the amount of the Gross-up Payment
     set forth therein, the Executive may elect to demand the payment of the
     amount which the Executive, in accordance with an Executive Counsel
     Opinion), (as defined in Section 7.5), determines to be the Gross-up
     Payment. Any such demand by the Executive shall be made by delivery to the
     Company of a written notice which specifies the Gross-up Payment determined
     by the Executive and an Executive Counsel Opinion regarding such Gross-up
     Payment (such written notice and opinion collectively, the "Executive's
     Determination"). Within 14 days after delivery of the Executive's
     Determination to the Company, the Company shall either (1) pay the
     Executive the Gross-up Payment set forth in the Executive's Determination
     (less the portion of such amount, if any, previously paid to the Executive
     by the Company) or (2) deliver to the Executive a Certificate specifying
     the Gross-up Payment determined by the Company's independent auditors,
     together with a Company Counsel Opinion (as defined in Section 7.5), and
     pay the Executive the Gross-up Payment specified in such Certificate. If
     for any reason the Company fails to comply with clause (2) of the preceding
     sentence, the Gross-up Payment specified in the Executive's Determination
     shall be controlling for all purposes.

         (b) If the Executive does not make a request for, and the Company does
     not deliver to the Executive, a Certificate, the Company shall, for
     purposes of Section 7.3, be deemed to have determined that no Gross-up
     Payment is due.

     7.3 Additional Gross-up Amounts. If the amount of Excise Taxes payable by
the Executive with respect to all Payments is determined (pursuant to the
subsequently-enacted provisions of the Code, final regulations or published
rulings of the IRS, final judgment of a court of competent jurisdiction or the
Company's independent auditors) to be greater than the amount previously paid by
the Company to the Executive pursuant to Section 7.1 or 7.2, as applicable, then
the Company shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

         (a) the sum of (i) such additional Excise Taxes and (ii) any interest,
     fines, penalties, expenses or other costs incurred by the Executive as a
     result of having taken a position in accordance with a determination made
     pursuant to Section 7.1,

multiplied by

         (b) the Gross-up Multiple.

     7.4 Gross-up Multiple. The Gross-up Multiple shall equal the quotient
(greater than one (1.0)) of one (1.0) divided by one (1.0) minus the sum,
expressed as a decimal fraction, of the rates of all federal, state, local and
other income and other taxes and any Excise Taxes applicable to the Gross-up
Payment; provided that, if such sum exceeds 0.75, it shall be deemed equal to
0.75 for purposes of this computation. (If different rates of tax are applicable
to various portions of a Gross-up Payment, the weighted average of such rates
shall be used.)

                                      -19-
<PAGE>   24

     7.5 Opinion of Counsel. "Executive Counsel Opinion" means a legal opinion
of nationally recognized executive compensation counsel who is counsel to the
Executive that there is a reasonable basis to support a conclusion that the
Gross-up Payment determined by the Executive has been calculated in accord with
this Article and applicable law. "Company Counsel Opinion" means a legal opinion
of nationally recognized executive compensation counsel who is counsel to the
Company that (a) there is a reasonable basis to support a conclusion that the
Gross-up Payment set forth of the Certificate of Company's independent auditors
has been calculated in accord with this Article and applicable law, and (b)
there is no reasonable basis for the calculation of the Gross-up Payment
determined by the Executive.

     7.6 Amount Increased or Contested. The Executive shall notify the Company
in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by the Company of a Gross-up Payment. Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid. The Executive shall give such notice as soon as practicable,
but no later than 10 business days, after the Executive first obtains actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such notice shall affect the Company's obligations under this Article
only if and to the extent that such failure results in actual prejudice to the
Company. The Executive shall not pay such claim less than 30 days after the
Executive gives such notice to the Company (or, if sooner, the date on which
payment of such claim is due). If the Company notifies the Executive in writing
before the expiration of such period that it desires to contest such claim, the
Executive shall:

         (a) give the Company any information that it reasonably requests
     relating to such claim,

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

         (c) cooperate with the Company in good faith to contest such claim, and

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax (to the extent not previously paid by the
Company to the Executive) or income tax, including related interest and
penalties, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing, the Company shall control all
proceedings in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner. The Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine;

                                      -20-
<PAGE>   25

provided, however, that if the Company directs the Executive to pay such claim
and sue for a refund, the Company shall advance the amount of such payment to
the Executive, on an interest-free basis and shall indemnify the Executive, on
an after-tax basis, for any Excise Tax or income tax, including related interest
or penalties, imposed with respect to such advance; and further provided that
any extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount. The Company's
control of the contest shall be limited to issues with respect to which a
Gross-up Payment would be payable. The Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the IRS or other taxing
authority.

     7.7 Refunds. If, after the receipt by the Executive of an amount advanced
by the Company pursuant to Section 7.6, the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall (subject to
the Company's complying with the requirements of Section 7.6) promptly pay the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 7.6, a determination is
made that the Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify the Executive in writing of its intent to
contest such determination before the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-up Payment required to be paid. Any contest of a denial of
refund shall be controlled by Section 7.6.

                                 ARTICLE VIII.
                              EXPENSES AND INTEREST

     8.1 Legal Fees and Other Expenses.

         (a) If the Executive incurs legal, accounting and other fees or other
     expenses in a good faith effort to obtain benefits under this Agreement
     (including, without limitation, the fees and other expenses of the
     Executive's legal counsel, any expert witness fees and expenses, and
     accounting and other fees and expenses, including legal and accounting fees
     and expenses in connection with the delivery of the Executive Counsel
     Opinion referred to in Article VII), regardless of whether the Executive
     ultimately prevails, the Company shall reimburse the Executive on a monthly
     basis upon the written request for such fees and expenses to the extent not
     previously reimbursed under the Company's officers and directors liability
     insurance policy, if any. Simultaneously with each such payment Company
     shall pay Executive an amount such that after payment of incremental United
     States federal, state and local income, excise and other taxes payable by
     Executive ("Taxes") with respect to such tax reimbursement, there remains a
     balance sufficient to pay the Taxes on the reimbursement of such fees and
     expenses. The existence of any controlling case or regulatory law which is
     directly inconsistent with the position taken by the Executive shall be
     evidence that the Executive did not act in good faith. Executive's payment
     of such fees and expenses shall be a

                                      -21-
<PAGE>   26

     conclusive determination with respect to the Company that such fees and
     expenses are reasonable.

         (b) Reimbursement of legal fees and expenses shall be made monthly upon
     the written submission of a request for reimbursement together with
     evidence that such fees and expenses are due and payable or were paid by
     the Executive. If the Company shall have reimbursed the Executive for legal
     fees and expenses and it is later determined that the Executive was not
     acting in good faith, all amounts paid on behalf of, or reimbursed to, the
     Executive shall be promptly refunded to the Company.

         (c) To secure its obligations under this Section 8.1 the Company shall
     procure and maintain in force during the Agreement Term and thereafter for
     one (1) year or if longer until the termination (by final judgment and
     after all rights of appeal have been exhausted or waived) of any litigation
     involving a good faith effort of an Executive to obtain benefits under this
     Agreement, a letter of credit and an escrow in favor of Executive (together
     with other executives similarly situated). The letter of credit shall be
     issued by a bank or trust company organized under the laws of the United
     States or Canada or a state or province thereof and having a combined
     capital and surplus of not less than one hundred million dollars
     ($100,000,000), shall be in the aggregate amount of five hundred thousand
     dollars ($500,000) prior to July 1, 2001, and in the aggregate amount of
     two million dollars $2,000,000) on and after July 1, 2001, and shall be
     substantially in the form of that attached (with its attached Annexes and
     Exhibits) to this Agreement as Exhibit A. The escrow shall be maintained in
     the state of Illinois under an escrow agreement with a bank or trust
     company organized under the laws of the United States or Canada or a state
     or province thereof and having a combined capital and surplus of not less
     than one hundred million dollars ($100,000,000), and shall be substantially
     in the form of that attached (with its attached Exhibits) to this Agreement
     as Exhibit B.

     8.2 Interest. If the Company does not pay any amount due to the Executive
under this Agreement within three days after such amount became due and owing,
interest shall accrue on such amount from the date it became due and owing until
the date of payment at a annual rate equal to two percent (2.0%) above the base
commercial lending rate announced by the Company's principal revolving credit
lender in effect from time to time during the period of such nonpayment; or, if
the Company does not have a principal revolving credit lender, then at two
percent (2.0%) above the prime rate of interest in effect from time to time
during the period of such nonpayment, as reported from time to time in the Wall
Street Journal; but in no case greater than the maximum rate of interest
permitted by applicable law.

                                  ARTICLE IX.
                            NO SET-OFF OR MITIGATION

     9.1 No Set-off or Defenses by Company. The Executive's right to receive
when due the payments and other benefits provided for under this Agreement is
absolute, unconditional and shall not be subject to any set-off, counterclaim or
legal or equitable defense. The exclusive method for the Company to avoid
payments to the Executive under this Agreement, to the extent specified in this
Agreement, is to terminate Executive's employment for Cause pursuant to

                                      -22-
<PAGE>   27

Sections 4.3 and 5.2 of this Agreement. Time is of the essence in the
performance by the Company of its obligations under this Agreement. Any claim
which the Company may have against the Executive, whether for a breach of this
Agreement or otherwise, shall be brought in a separate action or proceeding and
not as part of any action or proceeding brought by the Executive to enforce any
rights against the Company under this Agreement.

     9.2 No Mitigation. The Executive shall not have any duty to mitigate the
amounts payable by the Company under this Agreement by seeking new employment
following termination. Except as specifically otherwise provided in this
Agreement, all amounts payable pursuant to this Agreement shall be paid without
reduction regardless of any amounts of salary, compensation or other amounts
which may be paid or payable to the Executive as the result of the Executive's
employment by another employer.

                                   ARTICLE X.
                       CONFIDENTIALITY AND NONCOMPETITION

     10.1 Confidentiality. Executive acknowledges that it is the policy of the
Company and its subsidiaries to maintain as secret and confidential all valuable
and unique information and techniques acquired, developed or used by the Company
and its Subsidiaries relating to their business, operations, employees and
customers, which gives the Company and its subsidiaries a competitive advantage
in the construction and engineering industry and other businesses in which the
Company and its subsidiaries are engaged ("Confidential Information"). Executive
recognizes that all such Confidential Information is the sole and exclusive
property of the Company and its Subsidiaries, and that disclosure of
Confidential Information would cause damage to the Company and its Subsidiaries.
Executive agrees that, except as required by the duties of his employment with
the Company and/or its Subsidiaries and except in connection with enforcing the
Executive's rights under this Agreement or if compelled by a court or
governmental agency, he will not, without the consent of the Company,
disseminate or otherwise disclose any Confidential Information obtained during
his employment with the Company and/or its Subsidiaries for so long as such
information is valuable and unique.

     10.2 Noncompetition/Nonsolicitation.

         (a) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive will not at any time directly or indirectly, in any capacity,
     engage or participate in, or become employed by or render advisory or
     consulting or other services in connection with any Prohibited Business as
     defined in Section 10.2(d).

         (b) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive shall not make any financial investment, whether in the form of
     equity or debt, or own any interest, directly or indirectly, in any
     Prohibited Business. Nothing in this Section 10.2(b) shall, however,
     restrict Executive from making any investment in any company whose stock is
     listed on a

                                      -23-
<PAGE>   28

     national securities exchange or actively traded in the over-the-counter
     market; provided that (1) such investment does not give Executive the right
     or ability to control or influence the policy decisions of any Prohibited
     Business, and (2) such investment does not create a conflict of interest
     between Executive's duties hereunder and Executive's interest in such
     investment.

         (c) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive shall not (1) employ any employee of the Company and/or its
     Subsidiaries or (2) interfere with the Company's or any of its
     Subsidiaries' relationship with, or endeavor to entice away from the
     Company and/or its Subsidiaries any person, firm, corporation, or other
     business organization who or which at any time (whether before or after the
     date of Executive's termination of employment), was an employee, customer,
     vendor or supplier of, or maintained a business relationship with, any
     business of the Company and/or its Subsidiaries which was conducted at any
     time during the period commencing one year prior to the termination of
     employment.

         (d) For the purpose of this Section 10.2, "Prohibited Business" shall
     be defined as any construction and engineering business specializing in the
     engineering and design, materials procurement, fabrication, erection,
     repair and modification of steel tanks and other steel plate structures and
     associated systems and any branch, office or operation thereof, which is a
     direct and material competitor of the Company wherever the Company does
     business, including the Netherlands, the United States and any other
     country.

     10.3 Remedy. Executive and the Company specifically agree that, in the
event that Executive shall breach his obligations under this Article X, the
Company and its Subsidiaries will suffer irreparable injury and no adequate
remedy for such breach, and shall be entitled to injunctive relief therefor, and
in particular, without limiting the generality of the foregoing, the Company
shall not be precluded from pursuing any and all remedies it may have at law or
in equity for breach of such obligations; provided, however, that such breach
shall not in any manner or degree whatsoever limit, reduce or otherwise affect
the obligations of the Company under this Agreement, and in no event shall an
asserted breach of the Executive's obligations under this Article X constitute a
basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement.

                                  ARTICLE XI.
                                  MISCELLANEOUS

     11.1 No Assignability. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

                                      -24-
<PAGE>   29

     11.2 Successors. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to assume expressly and agree to perform this Agreement.
Any successor to the business and/or assets of the Company which assumes and
agrees to perform this Agreement by operation of law, contract, or otherwise
shall be jointly and severally liable with the Company under this Agreement.

     11.3 Payments to Beneficiary. If the Executive dies before receiving
amounts to which the Executive is entitled under this Agreement, such amounts
shall be paid as soon as administratively practicable in a lump sum to the
beneficiary designated in writing by the Executive, or if none is so designated,
to the Executive's estate.

     11.4 Non-alienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

     11.5 Severability. If any one or more articles, sections or other portions
of this Agreement are declared by any court or governmental authority to be
unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any article, section or other portion not so declared to be unlawful
or invalid. Any article, section or other portion so declared to be unlawful or
invalid shall be construed so as to effectuate the terms of such article,
section or other portion to the fullest extent possible while remaining lawful
and valid.

     11.6 Amendments. Except as provided in Section 2.2 hereof, this Agreement
shall not be altered, amended or modified except by written instrument executed
by the Company and Executive.

     11.7 Notices. All notices and other communications under this Agreement
shall be in writing and delivered by hand or by first class registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

              If to the Executive:

              Mr. Gerald M. Glenn
              413 West Walnut
              Hinsdale, Illinois  60521

              If to the Company (including any or all of CBICNV, CBIC or CBICD):

              Chicago Bridge & Iron Company
              1501 North Division Street
              Plainfield, Illinois  60544
              Attention:  General Counsel

                                      -25-
<PAGE>   30

or to such other address as either party shall have furnished to the other in
writing. Notice and communications shall be effective when actually received by
the addressee.

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

     11.9 Governing Law. This Agreement shall be interpreted and construed in
accordance with the laws of the State of Illinois, without regard to its choice
of law principles.

     11.10 Captions. The captions of this Agreement are not a part of the
provisions hereof and shall have no force or effect.

     11.11 Tax Withholding. The Company may withhold from any amounts payable
under this Agreement any federal, state or local taxes that are required to be
withheld pursuant to any applicable law or regulation.

     11.12 Joint and Several Obligations. The obligations of the Company under
this Agreement are joint and several obligations of CBICNV, CBIC and CBICD;
provided, however, that each of CBICNV, CBIC and CBICD may agree between
themselves but without adversely affecting the rights of the Executive which of
them shall provide any particular payment or benefit under this Agreement.

     11.13 No Waiver. The Executive's failure to insist upon strict compliance
with any provision of this Agreement shall not be deemed a waiver of such
provision or any other provision of this Agreement. A waiver of any provision of
this Agreement shall not be deemed a waiver of any other provision, and any
waiver of any default in any such provision shall not be deemed a waiver of any
later default thereof or of any other provision.

     11.14 Entire Agreement. This Agreement contains the entire understanding of
the Company and the Executive with respect to its subject matter and supercedes
any prior change of control severance agreement and any Change of Control
severance benefit provisions in any prior employment agreement between the
Company and the Executive.

                                      -26-
<PAGE>   31

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

                                              EXECUTIVE

                                              /s/ Gerald M. Glenn
                                              ----------------------------------
                                              Gerald M. Glenn

                                              CHICAGO BRIDGE & IRON COMPANY N.V.

                                              By:  /s/ Timothy J. Wiggins
                                                   -----------------------------
                                              Title:  Managing Director
                                                     ---------------------------

                                              CHICAGO BRIDGE & IRON COMPANY

                                              By:  /s/  Robert B. Jordan
                                                   -----------------------------
                                              Title:
                                                     ---------------------------

                                              CHICAGO BRIDGE & IRON COMPANY
                                              (DELAWARE)

                                              By:  /s/ Timothy J. Wiggins
                                                   -----------------------------
                                              Title:
                                                     ---------------------------

                                      -27-
<PAGE>   32

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

<PAGE>   33

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE I. PURPOSES...............................................................................................1

ARTICLE II. CERTAIN DEFINITIONS...................................................................................1
   2.1   "Accrued Obligations"....................................................................................1
   2.2   "Agreement Term".........................................................................................1
   2.3   "Affiliate"..............................................................................................2
   2.4   "Article"................................................................................................2
   2.5   "Beneficial Owner".......................................................................................2
   2.6   "Board"..................................................................................................2
   2.7   "Cause"..................................................................................................2
   2.8   "Change of Control"......................................................................................2
   2.9   "Code"...................................................................................................3
   2.10  "Deferral Plan"..........................................................................................3
   2.11  "Disability".............................................................................................4
   2.12  "Effective Date".........................................................................................4
   2.13  "Good Reason"............................................................................................4
   2.14  "Gross-up Payment".......................................................................................4
   2.15  "Growth Transaction".....................................................................................4
   2.16  "Imminent Control Change Date"...........................................................................4
   2.17  "IRS"....................................................................................................4
   2.18  "1934 Act"...............................................................................................4
   2.19  "Notice of Termination"..................................................................................4
   2.20  "Plans"..................................................................................................5
   2.21  "Policies"...............................................................................................5
   2.22  "Post-Change Period".....................................................................................5
   2.23  "Present Value"..........................................................................................5
   2.24  "SEC" means the Securities and Exchange Commission.......................................................5
   2.25  "Section"................................................................................................5
   2.26  "SERP"...................................................................................................5
   2.27  "Shareholder Agreement"..................................................................................5
   2.28  "Subsidiary".............................................................................................5
   2.29  "Termination Date".......................................................................................5
   2.30  "Transaction Owner"......................................................................................6
   2.31  "Voting Securities"......................................................................................6

ARTICLE III. POST-CHANGE PERIOD PROTECTIONS.......................................................................6
   3.1   General..................................................................................................6
   3.2   Position and Duties......................................................................................6
   3.3   Compensation.............................................................................................7
   3.4   Pro-Rata Bonus Payment...................................................................................9
   3.5   Equity Awards Vesting...................................................................................10
   3.6   Nonqualified Deferred Compensation......................................................................10
</TABLE>

                                      -i-
<PAGE>   34

                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE IV. TERMINATION OF EMPLOYMENT............................................................................11
   4.1   Disability..............................................................................................11
   4.2   Death...................................................................................................11
   4.3   Cause...................................................................................................11
   4.4   Good Reason.............................................................................................13

ARTICLE V. OBLIGATIONS OF THE COMPANY UPON TERMINATION...........................................................14
   5.1   If  by the Executive for Good Reason or by the Company Other Than for Cause or Disability...............14
   5.2   If by the Company for Cause.............................................................................16
   5.3   If by the Executive Other Than for Good Reason..........................................................17
   5.4   If by the Company for Disability........................................................................17
   5.5   If upon Death...........................................................................................17

ARTICLE VI. NON-EXCLUSIVITY OF RIGHTS............................................................................17
   6.1   Waiver of Other Severance Rights........................................................................17
   6.2   Other Rights............................................................................................17

ARTICLE VII. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY..........................................................18
   7.1   Gross-up for Certain Taxes..............................................................................18
   7.2   Determination by the Executive..........................................................................18
   7.3   Additional Gross-up Amounts.............................................................................19
   7.4   Gross-up Multiple.......................................................................................19
   7.5   Opinion of Counsel......................................................................................19
   7.6   Amount Increased or Contested...........................................................................20
   7.7   Refunds.................................................................................................21

ARTICLE VIII. EXPENSES AND INTEREST..............................................................................21
   8.1   Legal Fees and Other Expenses...........................................................................21
   8.2   Interest................................................................................................22

ARTICLE IX. NO SET-OFF OR MITIGATION.............................................................................22
   9.1   No Set-off or Defenses by Company.......................................................................22
   9.2   No Mitigation...........................................................................................22

ARTICLE X. CONFIDENTIALITY AND NONCOMPETITION....................................................................23
   10.1  Confidentiality.........................................................................................23
   10.2  Noncompetition/Nonsolicitation..........................................................................23
   10.3  Remedy..................................................................................................24

ARTICLE XI. MISCELLANEOUS........................................................................................24
   11.1  No Assignability........................................................................................24
</TABLE>

                                      -ii-
<PAGE>   35
                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                            <C>
   11.2  Successors..............................................................................................24
   11.3  Payments to Beneficiary.................................................................................24
   11.4  Non-alienation of Benefits..............................................................................25
   11.5  Severability............................................................................................25
   11.6  Amendments..............................................................................................25
   11.7  Notices.................................................................................................25
   11.8  Counterparts............................................................................................25
   11.9  Governing Law...........................................................................................25
   11.10 Captions................................................................................................25
   11.11 Tax Withholding.........................................................................................26
   11.12 Joint and Several Obligations...........................................................................26
   11.13 No Waiver...............................................................................................26
   11.14 Prior Agreement.........................................................................................26
   11.15 Entire Agreement........................................................................................26
</TABLE>

                                     -iii-
<PAGE>   36
                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

         THIS AGREEMENT dated as of October 13, 2000 is made among CHICAGO
BRIDGE & IRON COMPANY N.V. ("CBICNV"), a Netherlands corporation, CHICAGO BRIDGE
& IRON COMPANY, a Delaware corporation ("CBIC"), CHICAGO BRIDGE & IRON COMPANY
(DELAWARE), a Delaware corporation ("CBICD" and, together with CBICNV and CBIC,
the "Company"), each having its principal place of business in Plainfield,
Illinois, and Stephen P. Crain (the "Executive"), a resident of Illinois.

                                   ARTICLE I.
                                    PURPOSES

         The Supervisory Board of CBICNV has determined that it is in the best
interests of the Company and its stockholders to assure that the Company will
have the continued service of the Executive, despite the possibility or
occurrence of a change of control of the Company. The Board believes it is
imperative to reduce the distraction of the Executive that would result from the
personal uncertainties caused by a pending or threatened change of control, to
encourage the Executive's full attention and dedication to the Company, and to
provide the Executive with compensation and benefits arrangements upon a change
of control which ensure that the expectations of the Executive will be satisfied
and are competitive with those of similarly-situated corporations. This
Agreement is intended to accomplish these objectives.

                                  ARTICLE II.
                               CERTAIN DEFINITIONS

         When used in this Agreement, the terms specified below shall have the
following meanings:

         2.1 "Accrued Obligations" has the meaning defined for that term in
Section 5.3.

         2.2 "Agreement Term" means the period commencing on the date of this
Agreement and ending on the date which is thirty-six (36) months following the
date of this Agreement ("Expiration Date"); provided, however, that the
Agreement Term shall be extended as follows: (a) if neither the Company nor the
Executive gives written notice to the other pursuant to Section 11.7 that this
Agreement shall not be renewed ("Notice of Nonrenewal") within two years from
the date of this Agreement, the Agreement Term shall be extended to an
Expiration Date which shall be the first annual anniversary of the date a Notice
of Nonrenewal is given; (b) if an Imminent Control Change Date occurs before the
Expiration Date (as it may be extended under clause (a) above), then no Notice
of Nonrenewal shall thereafter be effective and the Agreement Term shall
automatically extend to an Expiration Date which is twelve (12) months after the
Imminent Change of Control Date, as further extended under the terms of this
clause should another Imminent Change of Control Date occur prior to the
Expiration Date as from time to time so extended, and (c) if a Change of Control
occurs before the Expiration Date (as extended

                                      -1-
<PAGE>   37

under clause (a) or (b) above or this clause (c)), the Expiration Date shall
automatically be extended to the last day of the Post-Change Period as the
Post-Change Period may be extended as provided in Section 2.22.

         2.3 "Affiliate" means an "affiliate" or "associate" as those terms are
defined in Rule 12b-2 under the 1934 Act.

         2.4 "Article" means an article of this Agreement.

         2.5 "Beneficial Owner" means such term as defined in Rule 13d-3 of the
SEC under the 1934 Act.

         2.6 "Board" means the Supervisory Board of Chicago Bridge & Iron
Company N.V.

         2.7 "Cause" has the meaning defined for that term in Section 4.3(b).

         2.8 "Change of Control" means, except as otherwise provided below, the
occurrence of any of the following:

                  (a) any person (as such term is used in Rule 13d-5 of the SEC
         under the 1934 Act) or group (as such term is defined in Section 13(d)
         of the 1934 Act), other than a Subsidiary or any employee benefit plan
         (or any related trust) of the Company or a Subsidiary, becomes the
         Beneficial Owner of 25% or more of the common shares of any of CBICNV,
         CBIC or CBICD or of other Voting Securities representing 25% or more of
         the combined voting power of all Voting Securities of any of CBICNV,
         CBIC or CBICD; provided, however, that (i) no Change of Control shall
         be deemed to have occurred solely by reason of any such acquisition by
         a corporation with respect to which, after such acquisition, more than
         75% of both the common shares or common stock of such corporation and
         the combined voting power of the Voting Securities of such corporation
         are then beneficially owned, directly or indirectly, by the persons who
         were the Beneficial Owners of the common shares and other Voting
         Securities of CBICNV, CBIC or CBICD immediately before such
         acquisition, in substantially the same proportion as their ownership of
         the common shares and other Voting Securities of CBICNV, CBIC or CBICD,
         as the case may be, immediately before such acquisition; and (ii) once
         a Change of Control occurs under this subsection (a), the occurrence of
         the next Change of Control (if any) under this subsection (a) shall be
         determined by reference to a person or group other than the person or
         group whose acquisition of Beneficial Ownership created such prior
         Change of Control unless the original person or group has in the
         meantime ceased to own 25% or more of the common shares of all of
         CBICNV, CBIC or CBICD or other Voting Securities representing 25% or
         more of the combined voting power of all Voting Securities of all of
         CBICNV, CBIC or CBICD; or

                  (b) individuals who, as of the date of this Agreement or as of
         any Effective Date thereafter, are Supervisory Directors of CBICNV (the
         "Incumbent Directors") cease for any reason to constitute at least 50%
         of the members of the Board; provided, however, that (i) any individual
         who becomes a Supervisory Director after the Effective Date whose
         binding nomination for election to the Board by the general meeting of
         shareholders was approved by a vote or written consent of at least 75%
         of the

                                      -2-
<PAGE>   38

         Supervisory Directors who are then Incumbent Directors shall be
         considered an Incumbent Director, but excluding, for this purpose, any
         such individual whose initial assumption of office is in connection
         with an actual or threatened election contest relating to the election
         of the directors of the Company (as such terms are used in Rule 14a-11
         of the SEC under the 1934 Act); and (ii) once a Change of Control
         occurs under this subsection (b), the occurrence of the next Change of
         Control (if any) under this subsection (b) shall be determined by
         reference to the individuals who were Incumbent Directors immediately
         after the Effective Date of such prior Change of Control; or

                  (c) approval by the Board, or by the shareholders of CBICNV,
         CBIC or CBICD, of any of the following:

                           (i) a merger, reorganization or consolidation of
                  CBICNV, CBIC or CBICD ("Merger"), other than a Merger after
                  which the individuals and entities who were the respective
                  beneficial owners of the common shares and other Voting
                  Securities of CBICNV, CBIC or CBICD (as the case may be)
                  immediately before such Merger beneficially own, directly or
                  indirectly, more than 75% of, respectively, the common shares
                  or common stock and the combined voting power of the Voting
                  Securities of the corporation resulting from such Merger, in
                  substantially the same proportion as their ownership of the
                  common shares or common stock and other Voting Securities of
                  CBICNV, CBIC or CBICD (as the case may be) immediately before
                  such Merger, or

                           (ii) a sale or other disposition by any of CBICNV,
                  CBIC or CBICD of all or substantially all of the assets owned
                  by it, or

                           (iii) any transaction as a result of which CBICNV
                  would not thereafter directly or indirectly own beneficially
                  at least 75% of the common stock of CBIC or as a result of
                  which CBIC would not thereafter directly or indirectly own
                  beneficially at least 75% of the common stock of CBICD, unless
                  after either such transaction CBICNV continues to own directly
                  or indirectly substantially all of the pre-transaction assets
                  of both CBIC and CBICD.

                  (d) if a Growth Transaction previously occurred, any
         Transaction Owner individually, or Transaction Owners collectively:

                           (i) materially breach(es) any provision of any
                  shareholder agreement to which CBICNV and such Transaction
                  Owner(s) are parties that addresses the governance of CBICNV
                  following the Growth Transaction; or

                           (ii) become(s) the Beneficial Owner of more than
                  66.5% of the common shares of any of CBICNV, CBIC or CBICD or
                  of other Voting Securities representing more than 66.5% of the
                  combined voting power of all Voting Securities of any of
                  CBICNV, CBIC or CBICD.

         2.9 "Code" means the Internal Revenue Code of 1986, as amended.

         2.10 "Deferral Plan" has the meaning defined for that term in Section
3.6.

                                      -3-
<PAGE>   39

         2.11 "Disability" has the meaning defined for that term in Section
4.1(b).

         2.12 "Effective Date" means each date on which a Change of Control
occurs during the Agreement Term; provided, however, that if the Company
terminates the Executive's employment before the date of a Change of Control,
and if the Executive reasonably demonstrates that such termination of employment
(a) was at the request of a third party who had taken steps reasonably
calculated to effect the Change of Control or (b) otherwise arose in connection
with or anticipation of the Change of Control, then "Effective Date" shall mean
the date immediately before the date of such termination of employment.

         2.13 "Good Reason" has the meaning defined for that term in Section
4.4(b).

         2.14 "Gross-up Payment" has the meaning defined for that term in
Section 7.1.

         2.15 "Growth Transaction" means (i) the acquisition by Wedge Group
Incorporated ("WGI"), a Delaware corporation, First Reserve Fund VIII, L.P.
("FRF"), a Delaware limited partnership, or Pitt-Des Moines, Inc. ("PDM"), a
Pennsylvania corporation, or their Affiliates, of common shares or other Voting
Securities of CBICNV as contemplated by an agreement with CBICNV for the
acquisition by CBICNV or an Affiliate of Howe-Baker International, Inc. from WGI
(the "HBI Transaction") or for the acquisition of the PDM Engineered
Construction Division and Water Division from PDM (the "PDM Transaction"); (ii)
the acquisition by a person (other than by public offering) of common shares or
other Voting Securities of CBICNV from CBICNV as part of an arrangement for
financing the HBI Transaction or the PDM Transaction; (iii) the acquisition by a
person of common shares or other Voting Securities of CBICNV from a previous
Transaction Owner if the person acquiring such common shares or other Voting
Securities is or becomes a party to a Shareholder Agreement with CBICNV that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner; or (iv) a transfer of common shares or other
Voting Securities of CBICNV from one Transaction Owner to another Transaction
Owner if the acquiring Transaction Owner is subject with respect to such shares
or other Voting Securities to either a preexisting Shareholder Agreement between
CBICNV and the acquiring Transaction Owner or a Shareholder Agreement that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner. However, a "Growth Transaction" will not include
any event described in Section 2.8(d).

         2.16 "Imminent Control Change Date" means any date on which occurs (a)
a presentation to the Company's shareholders generally or any of the Company's
directors or executive officers of a proposal or offer for a Change of Control,
or (b) the public announcement (whether by advertisement, press release, press
interview, public statement, SEC filing or otherwise) of a proposal or offer for
a Change of Control, or (c) such proposal or offer remains effective and
unrevoked.

         2.17 "IRS" means the Internal Revenue Service.

         2.18 "1934 Act" means the Securities Exchange Act of 1934, as amended.

         2.19 "Notice of Termination" means a written notice given in accordance
with Section 11.7 which sets forth (a) the specific termination provision in
this Agreement relied upon

                                      -4-
<PAGE>   40

by the party giving such notice, (b) in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under such termination provision and (c) if the Termination Date is
other than the date of receipt of such Notice of Termination, the Termination
Date.

         2.20 "Plans" means plans, programs, policies or practices of the
Company or any of its Subsidiaries.

         2.21 "Policies" means policies, practices or procedures of the Company
or any of its Subsidiaries.

         2.22 "Post-Change Period" means the period commencing on each Effective
Date and ending on the third annual anniversary of such Effective Date. If a new
Change of Control creates a new Effective Date during any current Post-Change
Period, the Post-Change Period shall be extended to the third annual anniversary
of such new Effective Date; and shall be further extended upon each new
Effective Date during the Post-Change Period as extended.

         2.23 "Present Value" means the present value, determined using (a) the
actuarial assumptions published by the Pension Benefit Guaranty Corporation
("PBGC") for determining immediate annuity values, as in effect on the first day
of the calendar year in which any payment of present value is required, or (b)
if no such actuarial assumptions are published by the PBGC, using the mortality
assumptions of the UP-84 group mortality table and an interest rate assumption
which is the lesser of (i) 75% of the current 30-year Treasury bond rate or (ii)
the current 30-year Treasury bond rate minus 150 basis points.

         2.24 "SEC" means the Securities and Exchange Commission.

         2.25 "Section" means, unless the context otherwise requires, a section
of this Agreement.

         2.26 "SERP" has the meaning defined for that term in Section 3.6.

         2.27 "Shareholder Agreement" means an agreement between CBICNV and a
person that limits the ability of such person and its Affiliates to obtain and
exercise control over the management and policies of the CBICNV.

         2.28 "Subsidiary" means a corporation as defined in Section 424(f) of
the Code (with the Company being treated as the employer corporation for
purposes of this definition) and any partnership or limited liability company in
which the Company or any Subsidiary has a direct or indirect interest (whether
in the form of voting power or participation in profits or capital contribution)
of 50% or more.

         2.29 "Termination Date" means the date of receipt of the Notice of
Termination or any later date specified in such notice (which date shall be not
more than 15 days after the giving of such notice), as the case may be;
provided, however, that (a) if the Company terminates the Executive's employment
other than for Cause or Disability, then the Termination Date shall be the date
of receipt of such Notice of Termination and (b) if the Executive's employment
is terminated by reason of death or Disability, then the Termination Date shall
be the date of death

                                      -5-
<PAGE>   41

of the Executive or the Disability Effective Date (as defined in Section
4.1(a)), as the case may be.

         2.30 "Transaction Owner" means a person who acquires common shares or
other Voting Securities of CBICNV in a Growth Transaction, or any Affiliate of
such person.

         2.31 "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors of
such corporation.

                                  ARTICLE III.
                         POST-CHANGE PERIOD PROTECTIONS

         3.1 General. On the Effective Date and during the Post-Change Period
thereafter the Company shall make the payments, provide the benefits and fulfill
the other obligations required by this Article III. However, if, such Effective
Date and Post-Change Period result solely from a Growth Transaction:

                  (a) Section 3.3(b) shall not apply except for purposes of
         determining the obligations of the Company on termination pursuant to
         Section 5.1, and to the extent provided in Section 4.4(b)(iii) and as
         modified thereby, in determining the existence of Good Reason;

                  (b) clause (ii) of each of Sections 3.3(c) through 3.3(h)
         shall not apply except for purposes of determining the obligations of
         the Company on termination pursuant to Section 5.1; but the aggregate
         value to the Executive of all Plans, fringe benefits and arrangements
         described in Sections 3.3(c) through 3.3(h) shall not be less
         favorable, in the aggregate, than the aggregate value to the Executive
         of such Plans, fringe benefits and arrangements provided by the Company
         to the Executive or peer executives at any time during the 90-day
         period immediately before such Effective Date; and

                  (c) Sections 3.4, 3.5, and 3.6 shall not apply on such
         Effective Date; but to the extent such vesting or payment is not
         otherwise required by Section 5.1, Sections 3.4, 3.5 and 3.6, shall
         apply to the Executive on the Termination Date (as if such Sections
         referred to the "Termination Date" instead of the "Effective Date") if
         during the Post-Change Period the Company shall terminate Executive's
         employment other than for Cause, or if the Executive shall terminate
         employment for Good Reason, or if employment terminates as a result of
         Disability or death.

         3.2 Position and Duties.

                  (a) During the Post-Change Period, (1) the Executive's
         position (including offices, titles, reporting requirements and
         responsibilities), authority and duties shall be at least commensurate
         in all material respects with the most significant of those held by,
         exercised by, or assigned to the Executive at any time during the
         90-day period immediately before the Effective Date and (2) the
         Executive's services shall be performed at the location where the
         Executive was employed immediately before the Effective Date or any
         other location less than 40 miles from such former location.

                                      -6-
<PAGE>   42

                  (b) During the Post-Change Period (other than any periods of
         vacation, sick leave, disability leave or other family or medical leave
         to which the Executive is entitled), the Executive shall devote his or
         her full attention and time to the business and affairs of the Company
         and, to the extent necessary to discharge the duties assigned to the
         Executive in accordance with this Agreement, shall use his or her best
         efforts to perform such duties faithfully and efficiently. During the
         Post-Change Period, the Executive may (1) serve on corporate, civic or
         charitable boards or committees, (2) deliver lectures, fulfill speaking
         engagements or teach at educational institutions and (3) manage
         personal investments, so long as such activities are consistent with
         the Policies of the Company or its Subsidiaries at the Effective Date
         and do not significantly interfere with the performance of the
         Executive's duties under this Agreement. To the extent that any such
         activities have been conducted by the Executive before the Effective
         Date and were consistent with the Policies of the Company or its
         Subsidiaries at the Effective Date, the continued conduct of such
         activities (or activities similar in nature and scope) after the
         Effective Date shall not be deemed to interfere with the performance of
         the Executive's duties under this Agreement.

         3.3 Compensation.

                  (a) Base Salary. During the Post-Change Period, the Company
         shall pay or cause to be paid to the Executive an annual base salary in
         cash ("Guaranteed Base Salary"), which shall be paid in a manner
         consistent with the Company's payroll practices in effect immediately
         before the Effective Date for such Post-Change Period, at a rate at
         least equal to the highest rate of annual salary paid or payable to the
         Executive by the Company at any time during the 12-month period
         immediately before such Effective Date. During the Post-Change Period,
         the Guaranteed Base Salary shall be reviewed at least annually and
         shall be increased at any time and from time to time as shall be
         substantially consistent with increases in base salary awarded to other
         peer executives of the Company. Any increase in Guaranteed Base Salary
         shall not limit or reduce any other obligation of the Company to the
         Executive under this Agreement. After any such increase, the Guaranteed
         Base Salary shall not be reduced and the term "Guaranteed Base Salary"
         shall thereafter refer to the increased amount.

                  (b) Guaranteed Bonus.

                           (i) During the Post-Change Period, the Company shall
                  pay or cause to be paid to the Executive a bonus (the
                  "Guaranteed Bonus") for each Performance Period which ends
                  during the Post-Change Period. "Performance Period" means each
                  period of time designated in accordance with any bonus
                  arrangement ("Bonus Plan") which is based upon performance and
                  approved by the Board or by any committee of the Board. For
                  purposes of this Section 3.3, a Bonus Plan includes, without
                  limitation, the Company's Incentive Compensation Plan as in
                  effect on the date hereof or any similar plan, but does not
                  include the Company's 1997 or 1999 Long-Term Incentive Plan
                  (an "LTIP") or any similar plan under which equity awards
                  described Section 3.5 are granted, unless failure to consider
                  the LTIP a Bonus Plan would leave the Company without any
                  Bonus Plan covering Executive. The Guaranteed Bonus shall be
                  at least equal to the product

                                       -7-
<PAGE>   43

                  of (A) the greater of (i) the On Plan Percentage (as defined
                  below), or (ii) the Actual Bonus Percentage (as defined
                  below), multiplied by (B) the Guaranteed Base Salary.

                           (ii) For purposes of this Section 3.3(b):

                                    (A) "On Plan Percentage" means the
                                percentage of Guaranteed Base Salary to which
                                the Executive would be entitled under the Bonus
                                Plan(s) for the Performance Period for which the
                                Guaranteed Bonus is awarded ("Current
                                Performance Period") if performance achieved
                                100% of the target performance goals established
                                pursuant to such Bonus Plan(s); or, if greater,
                                the percentage of Guaranteed Base Salary to
                                which Executive would have been entitled under
                                the Bonus Plan(s) for the Performance Period
                                ending immediately prior to the Post-Change
                                Period if performance achieved 100% of the
                                performance goals established pursuant to such
                                Bonus Plan(s) for such prior Performance Period.

                                    (B) "Actual Bonus Percentage" means the
                                percentage of Guaranteed Base Salary for the
                                Current Performance Period to which the
                                Executive would be entitled under any Bonus Plan
                                if the performance were measured by the actual
                                performance during the Current Performance
                                Period; provided, however, that for purposes of
                                determining the Guaranteed Bonus for purposes of
                                Sections 3.4 and 5.1(b), "Actual Bonus
                                Percentage" means the percentage of Guaranteed
                                Base Salary for the Performance Period during
                                which the Effective Date (for purposes of
                                Section 3.4) or Termination Date (for purposes
                                of Section 5.1(b)) occurs to which the Executive
                                would be entitled if the performance during such
                                Performance Period were measured by the actual
                                performance during the portion of such
                                Performance Period before the Effective Date or
                                the Termination Date (whichever is applicable),
                                projected to the last day of such Performance
                                Period.

                  (c) Incentive, Savings and Retirement Plans. During the
         Post-Change Period and notwithstanding the payment required by Section
         3.6, (i) the Executive shall be entitled to continue to participate in
         all incentive (including long-term incentives and management stock
         plans), savings, deferred compensation, retirement and benefit
         restoration Plans provided by the Company and applicable to other peer
         executives of the Company, but (ii) in no event shall such Plans
         provide the Executive with incentive (including long-term incentives
         and management stock benefits), savings, deferred compensation,
         retirement and benefit restoration benefits which, in any case, are
         less favorable, in the aggregate, than the most favorable of those
         provided by the Company to the Executive or to peer executives under
         such Plans as in effect at any time during the 90-day period
         immediately before any Effective Date.

                                      -8-
<PAGE>   44

                  (d) Welfare Benefit Plans. During the Post-Change Period, (i)
         the Executive and the Executive's family shall be eligible to
         participate in, and receive all benefits under, welfare benefit Plans
         (including, without limitation, medical, prescription, dental,
         disability, salary continuance, individual life, group life, dependent
         life, accidental death and travel accident insurance Plans) provided by
         the Company and applicable to other peer executives of the Company and
         their families, but (ii) in no event shall such Plans provide benefits
         which in any case are less favorable, in the aggregate, than the most
         favorable of those provided by the Company to the Executive or to peer
         executives under such Plans as in effect at any time during the 90-day
         period immediately before any Effective Date.

                  (e) Fringe Benefits. During the Post-Change Period, (i) the
         Executive shall be entitled to fringe benefits (including, without
         limitation, any foreign service travel and housing allowances for
         Executive and the Executive's family under Plans or Policies of the
         Company for foreign service) in accordance with the most favorable
         Plans provided by the Company and applicable to other peer executives
         of the Company, but (ii) in no event shall such Plans provide fringe
         benefits which in any case are less favorable, in the aggregate, than
         the most favorable of those provided by the Company to the Executive or
         peer executives under such Plans in effect at any time during the
         90-day period immediately before any Effective Date.

                  (f) Expenses. During the Post-Change Period, (i) the Executive
         shall be entitled to prompt reimbursement of all reasonable
         employment-related expenses incurred by the Executive upon the
         Company's receipt of accountings in accordance with the most favorable
         Policies applicable to peer executives of the Company, but (ii) in no
         event shall such Policies be less favorable, in the aggregate, than the
         most favorable of those provided by the Company to the Executive or to
         peer executives under such Policies in effect at any time during the
         90-day period immediately before any Effective Date.

                  (g) Office and Support Staff. During the Post-Change Period,
         (i) the Executive shall be entitled to an office or offices of a size
         and with furnishings and other appointments, and to secretarial and
         other assistance in accordance with the most favorable Policies
         applicable to peer executives of the Company, but (ii) in no event
         shall such Policies be less favorable, in the aggregate, than the most
         favorable of those provided by the Company to the Executive or to peer
         executives under such Policies in effect at any time during the 90-day
         period immediately before any Effective Date.

                  (h) Vacation. During the Post-Change Period, (i) the Executive
         shall be entitled to paid vacation in accordance with the most
         favorable Policies applicable to peer executives of the Company, but
         (ii) in no event shall such Policies be less favorable, in the
         aggregate, than the most favorable of those provided by the Company to
         the Executive or to peer executives under such Policies in effect at
         any time during the 90-day period immediately before any Effective
         Date.

         3.4 Pro-Rata Bonus Payment.

                                      -9-
<PAGE>   45

         On each Effective Date the Company shall pay to Executive in a single
lump sum in cash the product of (A) the Guaranteed Bonus for the Performance
Period in which falls the Effective Date, multiplied by (B) a fraction, the
numerator of which is the number of days in such Performance Period before the
Effective Date, and the denominator of which is the total number of days in such
Performance Period. The amount of Guaranteed Bonus for such Performance Period
otherwise payable pursuant to Section 3.3(b), or otherwise payable pursuant to
this Section 3.4 by reason of a later Change of Control in the same Performance
Period, shall be reduced by any earlier payment made under this Section 3.4 for
the same Performance Period.

         3.5 Equity Awards Vesting.

         On the Effective Date, the Executive shall become fully vested in:

                  (a) any and all outstanding options ("Options") to purchase
         common shares of the Company granted to Executive prior to the
         Effective Date under any Plan, contract or arrangement for Options,
         which Options shall become fully exercisable;

                  (b) any outstanding shares of restricted common shares of the
         Company regardless whether such restrictions are scheduled to lapse
         based on service or on performance or both ("Restricted Stock") awarded
         to Executive under any Plan, contract or arrangement for Restricted
         Stock; which shall become unrestricted and freely transferable; and

                  (c) any outstanding awards providing for the payment of a
         variable number of common shares of the Company dependent on the
         achievement of performance goals, or of an amount based on the fair
         market value of such shares or the appreciation thereof ("Performance
         Shares") awarded to Executive under any Plan, contract or arrangement
         for Performance Shares; and there shall be paid out in cash to
         Executive within 30 days following the Effective Date of the Change of
         Control the value of the Performance Shares to which Executive would
         have been entitled if performance achieved 100% of the target
         performance goals established for such Performance Shares.

         To the extent that for any reason such Options, Restricted Stock and
Performance Shares do not become vested on the Effective Date, the Company shall
pay Executive a cash amount equal to (i) the positive difference, if any,
between the value of the shares of common stock subject to the Options that did
not become vested (or, if greater, the value paid or to be paid in connection
with the Change of Control to a holder of an equal number of shares of common
stock ("Change of Control Value")) and the Option exercise price with respect to
such shares, as of and on the date such Options are forfeited; plus (ii) the
fair market value (determined without regard to any restriction other than a
restriction which by its terms may never lapse) (or, if greater, the Change of
Control Value) of all non-vested forfeited Restricted Stock and Performance
Shares as of and on the date such Restricted Stock or Performance Shares are
forfeited. Nothing in this Section 3.5 shall require the vesting, or payment, of
equity awards granted after such Effective Date unless a new Effective Date has
intervened

         3.6 Nonqualified Deferred Compensation.

                                      -10-
<PAGE>   46

         On the Effective Date Executive shall become fully vested in and the
Company shall pay to Executive in a single lump sum in cash (1) the value of
Executive's then-accrued benefits, if any, which remain unpaid under any
nonqualified deferred compensation, benefit restoration, excess benefit or other
individual account plan, contract or arrangement for deferred compensation
maintained by the Company under which benefits are calculated by reference to an
individual account (a "Deferral Plan"), and (2) the Present Value of Executive's
then-accrued benefits, if any, which remain unpaid under any nonqualified
supplemental executive retirement plan or other plan, contract or arrangement
for retirement benefits maintained by the Company under which benefits are
calculated by reference to a defined amount payable in connection with or after
retirement or other termination of employment an (a "SERP").

                                  ARTICLE IV.
                            TERMINATION OF EMPLOYMENT

         4.1 Disability.

                  (a) During the Post-Change Period, the Company may terminate
         the Executive's employment upon the Executive's Disability (as defined
         in Section 4.1(b)) by giving the Executive or his legal representative,
         as applicable, Notice of Termination accompanied by a certification of
         the Executive's Disability by a physician selected by the Company or
         its insurers and reasonably acceptable to the Executive or the
         Executive's legal representative. The Executive's employment shall
         terminate effective on the 30th day (the "Disability Effective Date")
         after the Executive's receipt of such Notice of Termination unless,
         before the Disability Effective Date, the Executive shall have resumed
         the full-time performance of the Executive's duties.

                  (b) "Disability" means any medically determinable physical or
         mental impairment that has lasted for a continuous period of not less
         than six months and can be expected to be permanent or of indefinite
         duration, and that renders the Executive unable to perform the
         essential functions required under this Agreement with or without
         reasonable accommodation.

                  (c) Unless the Company establishes, by clear and convincing
         evidence, that Executive has a Disability, any purported termination of
         employment for Disability shall be deemed a termination other than for
         Disability for all purposes of this Agreement.

         4.2 Death. The Executive's employment shall terminate automatically
upon the Executive's death during the Post-Change Period.

         4.3 Cause.

                  (a) During the Post-Change Period, the Company may terminate
         the Executive's employment for Cause.

                  (b) "Cause" means any of the following: Executive's conviction
         of a felony or of a crime involving fraud, dishonesty or moral
         turpitude; Executive's willful or intentional material breach of this
         Agreement that results in financial detriment that is material to the

                                      -11-
<PAGE>   47

         Company as a whole; or willful or intentional misconduct by Executive
         in the performance of his duties under this Agreement that results in
         financial detriment that is material to the Company as a whole; except
         that Cause shall not mean:

                           (i)   bad judgment or negligence;

                           (ii)  any act or omission believed by the Executive
                  in good faith to have been in or not opposed to the interest
                  of the Company (without intent of the Executive to gain,
                  directly or indirectly, a profit to which the Executive was
                  not legally entitled);

                           (iii) any act or omission with respect to which a
                  determination could properly have been made by the Board that
                  the Executive met the applicable standard of conduct for
                  indemnification or reimbursement under the Company's by-laws,
                  any applicable indemnification agreement, or applicable law,
                  in each case in effect at the time of such act or omission; or

                           (iv)  any act or omission with respect to which
                  Notice of Termination is not given within 12 months after the
                  earliest date on which any member of the Board, not a party to
                  the act or omission, knew or should have known of such act or
                  omission.

                  (c) The Company may not during the Post-Change Period
         terminate Executive's employment for Cause unless the following
         procedures are fully complied with:

                           (i)   no fewer than 45 days prior to the Termination
                  Date, the Company provides Executive with written notice (the
                  "Notice of Consideration") of its intent to consider
                  termination of Executive's employment for Cause, including a
                  detailed description of the specific reasons which form the
                  basis for such consideration;

                           (ii)  if after providing Notice of Consideration, the
                  Board may, by the affirmative vote of at least 80% of its
                  members (excluding for this purpose Executive if he is a
                  member of the Board, and any other member of the Board
                  reasonably believed by the Board to be involved in the events
                  issuing the Notice of Consideration), suspend Executive with
                  pay until a final determination pursuant to this Section has
                  been made;

                           (iii) for a period of not less than 30 days after the
                  date Notice of Consideration is provided, Executive shall have
                  the opportunity to appear before the Board, with or without
                  legal representation, at Executive's election, to present
                  arguments and evidence on his own behalf; and

                           (iv)  following the presentation to the Board as
                  provided in (3) above or Executive's failure to appear before
                  the Board at a date and time specified in the Notice of
                  Consideration (which date shall not be less than 30 days after
                  the date the Notice of Consideration is provided), Executive
                  may be terminated for Cause only if (i) the Board, by the
                  affirmative vote of at least 80% of its members

                                      -12-
<PAGE>   48

                  (excluding Executive if he is a member of the Board, and any
                  other member of the Board reasonably believed by the Board to
                  be involved in the events leading the Board to terminate
                  Executive for Cause), determines that the actions or inactions
                  of Executive specified in the Notice of Consideration
                  occurred, that such actions or inactions constitute Cause, and
                  that Executive's employment should accordingly be terminated
                  for Cause; and (ii) the Board provides Executive with a
                  written determination (a "Notice of Termination for Cause")
                  setting forth in specific detail the basis of such Termination
                  of Employment, which Notice of Termination for Cause shall be
                  consistent with the reasons set forth in the Notice of
                  Consideration.

         Unless the Company establishes, by clear and convincing evidence, both
(x) its full compliance with the substantive and procedural requirements of this
Section prior to a termination of employment for Cause, and (y) that Executive's
action or inaction specified in the Notice of Termination for Cause did occur
and constituted Cause, any purported termination of employment for Cause shall
be deemed a termination without Cause for all purposes of this Agreement.

         4.4 Good Reason.

                  (a) During the Post-Change Period, the Executive may terminate
         employment for Good Reason within 12 months following the Executive's
         actual knowledge of an act or omission which constitutes Good Reason;
         provided, however, that the Executive's failure to terminate within 12
         months following Executive's actual knowledge of a particular act or
         omission which constitutes Good Reason shall not prevent Executive's
         termination for any other act or omission which constitutes Good
         Reason.

                  (b) "Good Reason" means any of the following:

                           (i)   the assignment to the Executive of any duties
                  inconsistent in any respect with the Executive's position
                  (including offices, titles, reporting requirements or
                  responsibilities), authority or duties as prescribed by
                  Section 3.2(a)(1), or the Company's requiring the Executive to
                  be based at any office or location other than the location
                  described in Section 3.2(a)(2);or any other action by the
                  Company which results in a diminution or other material
                  adverse change in such position, authority or duties;

                           (ii)  the failure to pay Guaranteed Base Salary in at
                  least the amount prescribed by Section 3.2(a);

                           (iii) the failure to pay Guaranteed Bonus in at least
                  the amount prescribed by Section 3.3(b); provided, however,
                  that if the Post-Change Period results solely from a Growth
                  Transaction; Good Reason under this clause (iii) shall only be
                  the failure to provide Executive with a bonus opportunity
                  (including designation of target performance goals and
                  percentage of Guaranteed Base Salary payable on achievement of
                  target performance goals) no less favorable to

                                      -13-
<PAGE>   49

                  Executive than that provided by the Company to Executive for
                  either of the two most recent Performance Periods beginning
                  before such Growth Transaction;

                           (iv)   the failure to provide any plan or fringe
                  benefits or perquisites prescribed by Sections 3.3(c) through
                  3.3(h), as modified, if the Post-Change Period results solely
                  from a Growth Transaction, by Section 3.1(b);

                           (v)    any other failure by the Company to comply
                  with any of the provisions of Article III;

                           (vi)   any other material adverse change to the terms
                  and conditions of the Executive's employment (whether or not
                  also described in clauses (i) through (v) above);

                           (vii)  the Board's giving Notice of Consideration
                  pursuant to Section 4.3(c) (of the intent to consider
                  terminating Executive for Cause) but failing to terminate
                  Executive for Cause within a period of 90 days thereafter in
                  compliance with all substantive and procedural requirements of
                  Section 4.3,

                           (viii) any purported termination by the Company of
                  the Executive's employment other than as expressly permitted
                  by this Agreement (any such purported termination shall not be
                  effective for any other purpose under this Agreement);

                           (ix)   a failure by the Company to cause a successor,
                  prior to or as of the date it becomes a successor, to assume
                  and agree to perform this Agreement in accordance with the
                  provisions of Section 11.2 hereof.

         Any determination by Executive that any of the foregoing events has
         occurred and constitutes "Good Reason" shall be conclusive and binding
         for all purposes unless the Company establishes by clear and convincing
         evidence that Executive did not have a reasonable basis for such a
         determination.

                  (c) Any termination of employment by the Executive for Good
         Reason shall be communicated to the Company by Notice of Termination.
         The passage of time not in excess of 12 months after the Executive has
         actual knowledge of an act or omission which constitutes Good Reason
         prior to delivery of Notice of Termination or a failure by the
         Executive to include in the Notice of Termination any fact or
         circumstance which contributes to a showing of Good Reason shall not
         waive any right of the Executive under this Agreement or preclude the
         Executive from asserting such fact or circumstance in enforcing rights
         under this Agreement.

                                   ARTICLE V.
                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

         5.1 If by the Executive for Good Reason or by the Company Other Than
for Cause or Disability. If, during the Post-Change Period, the Company shall
terminate Executive's

                                      -14-
<PAGE>   50

employment other than for Cause, Disability, or death or if the Executive shall
terminate employment for Good Reason, the Company shall pay the Executive within
five (5) days of the Termination Date (or if earlier within five (5) days of the
last day Executive performed services for the Company as an Employee), in
addition to all vested rights arising from the Executive's employment as
specified in Article III, a cash amount equal to the sum of the amounts
described in (a) through (g) below and the additional benefits described in (h)
through (i) below:

                  (a) The Guaranteed Base Salary, any accrued vacation pay and
         business expenses incurred through the Termination Date, to the extent
         not previously paid to the Executive by the Company.

                  (b) The difference between (1) the product of (A) the
         Guaranteed Bonus, multiplied by (B) a fraction, the numerator of which
         is the number of days in the Termination Performance Period which
         elapsed before the Termination Date, and the denominator of which is
         the total number of days in the Termination Performance Period, and (2)
         the amount of any Guaranteed Bonus previously paid to the Executive by
         the Company with respect to the Termination Performance Period.

                  (c) The value of Executive's then-accrued benefits under any
         Deferral Plan plus the present value of Executive's then-accrued
         benefits under any SERP, determined without disregarding service and
         compensation before any Effective Date but then reduced by the amount,
         if any, previously paid to the Executive by the Company pursuant to
         Section 3.6.

                  (d) An amount equal to the product of (1) three (3.0),
         multiplied by (2) the sum of (A) the Guaranteed Base Salary and (B) the
         Guaranteed Bonus.

                  (e) An amount equal to the sum of the value of the unvested
         portion of the Executive's accounts or accrued benefits under any
         qualified plan maintained by the Company as of the Termination Date.

                  (f) The difference between (1) the amount that would be
         determined under Section 5.1(c) above if such amount were calculated
         (to the extent applicable in determining such amount) (A) as though the
         Executive continued to accrue benefits and be credited with service
         under the SERP for a period of three years after the Termination Date,
         (B) as though the Executive received compensation during each year of
         such three-year period equal to the sum of the Guaranteed Base Salary
         and the highest Guaranteed Bonus paid (or payable) to the Executive in
         the three calendar years preceding the Termination Date, (C) as though
         the Executive were three (3) years older than his age at the
         Termination Date, and (D) without disregarding service and compensation
         before the Termination Date; reduced by (2) the amount (if any)
         previously or simultaneously paid by the Company to the Executive
         pursuant to Sections 3.6 and 5.1(c).

                  (g) In addition to the foregoing amounts, the Company shall
         pay on behalf of Executive all fees and costs charged by the
         outplacement firm selected by the Executive to provide outplacement
         services or at the election of the Executive, an immediate cash

                                      -15-
<PAGE>   51

         payment equal to the fees and expenses such outplacement firm would
         charge but not in excess of 20% of the Guaranteed Base Salary.

                  (h) In addition to the foregoing payments, until the third
         annual anniversary of the Termination Date or such later date as any
         Plan of the Company may specify, the Company shall continue to provide
         to the Executive and the Executive's family welfare benefits
         (including, without limitation, medical, prescription, dental,
         disability, salary continuance, individual life, group life, accidental
         death and travel accident insurance plans and programs) which are at
         least as favorable as the most favorable Plans of the Company
         applicable to other peer executives and their families as of the
         Termination Date, but which are in no event less favorable than the
         most favorable Plans of the Company applicable to other peer executives
         and their families during the 90-day period immediately before the
         Effective Date; and the cost of such welfare benefits to Executive
         shall not exceed the cost of such benefits to the Executive immediately
         before the Termination Date or, if less, the Effective Date.

                  (i) Beginning on the later of the third annual anniversary of
         the Termination Date or the date Executive attains age 50, and
         continuing until the death of the last to die of Executive and his or
         her spouse, the Company shall provide to the Executive and to
         Executive's family medical benefits which (1) until Executive attains
         age sixty-five (65) are at least as favorable as the most favorable
         medical Plans of the Company applicable to actively employed peer
         executives and that covered any active employee of the Company as of
         the Effective Date, and (2) from and after the date Executive attains
         age 65, are at least as favorable as the most favorable medical Plans
         of the Company applicable to eligible retired peer executives and that
         covered any retired employee as of the Effective Date; and the cost to
         Executive of such medical benefits for the period described in clause
         (1) shall not exceed the cost of such benefits to Executive immediately
         before the Termination Date or, if less, the Effective Date, and the
         cost to Executive of such medical benefits for the period described in
         clause (2) shall not exceed the cost of such benefits to any similarly
         situated eligible retiree of the Company immediately before the
         Termination Date or, if less, the Effective Date.

The Executive's rights under this Section 5.1 shall be in addition to, and not
in lieu of, any post-termination continuation coverage or conversion rights the
Executive may have pursuant to applicable law, including without limitation
continuation coverage required by Section 4980 of the Code or Part 6 of Title I
of the Employee Retirement Income Security Act of 1974, as amended, for which
purpose the date of the qualifying event shall not be earlier than the date
specified in the first sentence of Section 5.1(i). However, if the Executive is
covered under a medical, life, or disability insurance plan provided by a
subsequent employer at equal or lesser cost to Executive than the cost to
Executive of coverage under the corresponding Company plan required by Sections
5.1(i), then the benefits under the corresponding Company plan required by
Sections 5.1(i) shall be secondary to the benefits under the subsequent
employer's medical, life, or disability insurance plan.

         5.2 If by the Company for Cause. If the Company terminates the
Executive's employment for Cause during the Post-Change Period pursuant to the
procedures set forth in Section 4.3, this Agreement shall terminate without
further obligation by the Company to the

                                      -16-
<PAGE>   52

Executive, other than the obligation immediately to pay the Executive in cash
the Executive's Guaranteed Base Salary through the Termination Date, plus the
amount of any compensation previously deferred by the Executive, plus any
accrued vacation pay and business expenses incurred through the Termination
Date, in each case to the extent not previously paid or reimbursed.

         5.3 If by the Executive Other Than for Good Reason. If the Executive
terminates employment during the Post-Change Period other than for Good Reason,
Disability or death, this Agreement shall terminate without further obligations
by the Company, other than the obligation immediately to pay the Executive in
cash all amounts specified in paragraphs (a), (b) and (c) of Section 5.1 (such
amounts collectively, the "Accrued Obligations").

         5.4 If by the Company for Disability. If the Company terminates the
Executive's employment by reason of the Executive's Disability during the
Post-Change Period, this Agreement shall terminate without further obligations
to the Executive, other than:

                  (a) the Company's obligation immediately to pay the Executive
         in cash all Accrued Obligations, and

                  (b) the Executive's right after the Disability Effective Date
         to receive disability and other benefits at least equal to the greater
         of (i) those provided under the most favorable disability Plans
         applicable to disabled peer executives of the Company in effect
         immediately before the Termination Date or (ii) those provided under
         the most favorable disability Plans of the Company in effect at any
         time during the 90-day period immediately before the Effective Date.

         5.5 If upon Death. If the Executive's employment is terminated by
reason of the Executive's death during the Post-Change Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than the obligation immediately to
pay the Executive's estate or beneficiary in cash all Accrued Obligations.
Despite anything in this Agreement to the contrary, the Executive's family shall
be entitled to receive benefits at least equal to the most favorable benefits
provided by the Company to the surviving families of peer executives of the
Company under such Plans, but in no event shall such Plans provide benefits
which in each case are less favorable, in the aggregate, than the most favorable
of those provided by the Company to the Executive under such Plans in effect at
any time during the 90-day period immediately before the Effective Date.

                                  ARTICLE VI.
                            NON-EXCLUSIVITY OF RIGHTS

         6.1 Waiver of Other Severance Rights. To the extent that payments are
made to the Executive pursuant to Section 5.1, the Executive hereby waives the
right to receive severance payments under any other Plan or agreement of or with
the Company.

         6.2 Other Rights. Except as provided in Section 6.1, this Agreement
shall not prevent or limit the Executive's continuing or future participation in
any benefit, bonus, incentive or other Plans provided by the Company or any of
its Subsidiaries and for which the Executive may

                                      -17-
<PAGE>   53

qualify, nor shall this Agreement limit or otherwise affect such rights as the
Executive may have under any other agreements with the Company or any of its
Subsidiaries. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any Plan of the Company or any of its
Subsidiaries and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such Plan or applicable law
except as expressly modified by this Agreement.

                                  ARTICLE VII.
                   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY

         7.1 Gross-up for Certain Taxes. If it is determined (by the reasonable
computation of the Company's independent auditors, which determinations shall be
certified to by such auditors and set forth in a written certificate
("Certificate") delivered to the Executive) that any benefit received or deemed
received by the Executive from the Company pursuant to this Agreement or
otherwise (collectively, the "Payments") is or will become subject to any excise
tax under Section 4999 of the Code or any similar tax payable under any United
States federal, state, local or other law (such excise tax and all such similar
taxes collectively, "Excise Taxes"), then the Company shall, immediately after
such determination, pay the Executive an amount (the "Gross-up Payment") equal
to the product of

                  (a) the amount of such Excise Taxes

multiplied by

                  (b) the Gross-up Multiple (as defined in Section 7.4).

The Gross-up Payment is intended to compensate the Executive for the Excise
Taxes and any federal, state, local or other income or excise taxes or other
taxes payable by the Executive with respect to the Gross-up Payment.

         The Executive or the Company may at any time request the Company's
independent auditors to prepare and deliver a Certificate to the Executive. The
Company shall, in addition to complying with Section 7.2, cause all
determinations and certifications under the Article to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and
file the Executive's individual tax returns on a timely basis.

         7.2 Determination by the Executive.

                  (a) If the Company or its independent auditors shall fail to
         deliver a Certificate to the Executive (and to pay to the Executive the
         amount of the Gross-up Payment, if any) within 14 days after receipt
         from the Executive of a written request for a Certificate, or if at any
         time following receipt of a Certificate the Executive disputes the
         amount of the Gross-up Payment set forth therein, the Executive may
         elect to demand the payment of the amount which the Executive, in
         accordance with an Executive Counsel Opinion), (as defined in Section
         7.5), determines to be the Gross-up Payment. Any such demand by the
         Executive shall be made by delivery to the Company of a written notice
         which specifies the Gross-up Payment determined by the Executive and an
         Executive Counsel

                                      -18-
<PAGE>   54

         Opinion regarding such Gross-up Payment (such written notice and
         opinion collectively, the "Executive's Determination"). Within 14 days
         after delivery of the Executive's Determination to the Company, the
         Company shall either (1) pay the Executive the Gross-up Payment set
         forth in the Executive's Determination (less the portion of such
         amount, if any, previously paid to the Executive by the Company) or (2)
         deliver to the Executive a Certificate specifying the Gross-up Payment
         determined by the Company's independent auditors, together with a
         Company Counsel Opinion (as defined in Section 7.5), and pay the
         Executive the Gross-up Payment specified in such Certificate. If for
         any reason the Company fails to comply with clause (2) of the preceding
         sentence, the Gross-up Payment specified in the Executive's
         Determination shall be controlling for all purposes.

                  (b) If the Executive does not make a request for, and the
         Company does not deliver to the Executive, a Certificate, the Company
         shall, for purposes of Section 7.3, be deemed to have determined that
         no Gross-up Payment is due.

         7.3 Additional Gross-up Amounts. If the amount of Excise Taxes payable
by the Executive with respect to all Payments is determined (pursuant to the
subsequently-enacted provisions of the Code, final regulations or published
rulings of the IRS, final judgment of a court of competent jurisdiction or the
Company's independent auditors) to be greater than the amount previously paid by
the Company to the Executive pursuant to Section 7.1 or 7.2, as applicable, then
the Company shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

                  (a) the sum of (i) such additional Excise Taxes and (ii) any
         interest, fines, penalties, expenses or other costs incurred by the
         Executive as a result of having taken a position in accordance with a
         determination made pursuant to Section 7.1,

multiplied by

                  (b) the Gross-up Multiple.

         7.4 Gross-up Multiple. The Gross-up Multiple shall equal the quotient
(greater than one (1.0)) of one (1.0) divided by one (1.0) minus the sum,
expressed as a decimal fraction, of the rates of all federal, state, local and
other income and other taxes and any Excise Taxes applicable to the Gross-up
Payment; provided that, if such sum exceeds 0.75, it shall be deemed equal to
0.75 for purposes of this computation. (If different rates of tax are applicable
to various portions of a Gross-up Payment, the weighted average of such rates
shall be used.)

         7.5 Opinion of Counsel. "Executive Counsel Opinion" means a legal
opinion of nationally recognized executive compensation counsel who is counsel
to the Executive that there is a reasonable basis to support a conclusion that
the Gross-up Payment determined by the Executive has been calculated in accord
with this Article and applicable law. "Company Counsel Opinion" means a legal
opinion of nationally recognized executive compensation counsel who is counsel
to the Company that (a) there is a reasonable basis to support a conclusion that
the Gross-up Payment set forth of the Certificate of Company's independent

                                      -19-
<PAGE>   55

auditors has been calculated in accord with this Article and applicable law, and
(b) there is no reasonable basis for the calculation of the Gross-up Payment
determined by the Executive.

         7.6 Amount Increased or Contested. The Executive shall notify the
Company in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by the Company of a Gross-up Payment. Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid. The Executive shall give such notice as soon as practicable,
but no later than 10 business days, after the Executive first obtains actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such notice shall affect the Company's obligations under this Article
only if and to the extent that such failure results in actual prejudice to the
Company. The Executive shall not pay such claim less than 30 days after the
Executive gives such notice to the Company (or, if sooner, the date on which
payment of such claim is due). If the Company notifies the Executive in writing
before the expiration of such period that it desires to contest such claim, the
Executive shall:

                  (a) give the Company any information that it reasonably
         requests relating to such claim,

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

                  (c) cooperate with the Company in good faith to contest such
         claim, and

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax (to the extent not previously paid by the
Company to the Executive) or income tax, including related interest and
penalties, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing, the Company shall control all
proceedings in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner. The Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify the Executive, on an after-tax basis, for any Excise Tax or income
tax, including related interest or penalties, imposed with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. The Company's control of the contest shall be limited to
issues with respect to which a Gross-up Payment would be payable. The Executive

                                      -20-
<PAGE>   56

shall be entitled to settle or contest, as the case may be, any other issue
raised by the IRS or other taxing authority.

         7.7 Refunds. If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 7.6, the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 7.6) promptly pay
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 7.6, a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such determination before the expiration of 30
days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-up Payment required to be paid. Any contest
of a denial of refund shall be controlled by Section 7.6.

                                 ARTICLE VIII.
                              EXPENSES AND INTEREST

         8.1 Legal Fees and Other Expenses.

                  (a) If the Executive incurs legal, accounting and other fees
         or other expenses in a good faith effort to obtain benefits under this
         Agreement (including, without limitation, the fees and other expenses
         of the Executive's legal counsel, any expert witness fees and expenses,
         and accounting and other fees and expenses, including legal and
         accounting fees and expenses in connection with the delivery of the
         Executive Counsel Opinion referred to in Article VII), regardless of
         whether the Executive ultimately prevails, the Company shall reimburse
         the Executive on a monthly basis upon the written request for such fees
         and expenses to the extent not previously reimbursed under the
         Company's officers and directors liability insurance policy, if any.
         Simultaneously with each such payment Company shall pay Executive an
         amount such that after payment of incremental United States federal,
         state and local income, excise and other taxes payable by Executive
         ("Taxes") with respect to such tax reimbursement, there remains a
         balance sufficient to pay the Taxes on the reimbursement of such fees
         and expenses. The existence of any controlling case or regulatory law
         which is directly inconsistent with the position taken by the Executive
         shall be evidence that the Executive did not act in good faith.
         Executive's payment of such fees and expenses shall be a conclusive
         determination with respect to the Company that such fees and expenses
         are reasonable.

                  (b) Reimbursement of legal fees and expenses shall be made
         monthly upon the written submission of a request for reimbursement
         together with evidence that such fees and expenses are due and payable
         or were paid by the Executive. If the Company shall have reimbursed the
         Executive for legal fees and expenses and it is later determined that
         the Executive was not acting in good faith, all amounts paid on behalf
         of, or reimbursed to, the Executive shall be promptly refunded to the
         Company.

                                      -21-
<PAGE>   57

                  (c) To secure its obligations under this Section 8.1 the
         Company shall procure and maintain in force during the Agreement Term
         and thereafter for one (1) year or if longer until the termination (by
         final judgment and after all rights of appeal have been exhausted or
         waived) of any litigation involving a good faith effort of an Executive
         to obtain benefits under this Agreement, a letter of credit and an
         escrow in favor of Executive (together with other executives similarly
         situated). The letter of credit shall be issued by a bank or trust
         company organized under the laws of the United States or Canada or a
         state or province thereof and having a combined capital and surplus of
         not less than one hundred million dollars ($100,000,000), shall be in
         the aggregate amount of five hundred thousand dollars ($500,000) prior
         to July 1, 2001, and in the aggregate amount of two million dollars
         ($2,000,000) on and after July 1, 2001, and shall be substantially in
         the form of that attached (with its attached Annexes and Exhibits) to
         this Agreement as Exhibit A. The escrow shall be maintained in the
         state of Illinois under an escrow agreement with a bank or trust
         company organized under the laws of the United States or Canada or a
         state or province thereof and having a combined capital and surplus of
         not less than one hundred million dollars ($100,000,000), and shall be
         substantially in the form of that attached (with its attached Exhibits)
         to this Agreement as Exhibit B.

         8.2 Interest. If the Company does not pay any amount due to the
Executive under this Agreement within three days after such amount became due
and owing, interest shall accrue on such amount from the date it became due and
owing until the date of payment at a annual rate equal to two percent (2.0%)
above the base commercial lending rate announced by the Company's principal
revolving credit lender in effect from time to time during the period of such
nonpayment; or, if the Company does not have a principal revolving credit
lender, then at two percent (2.0%) above the prime rate of interest in effect
from time to time during the period of such nonpayment, as reported from time to
time in the Wall Street Journal; but in no case greater than the maximum rate of
interest permitted by applicable law.

                                  ARTICLE IX.
                            NO SET-OFF OR MITIGATION

         9.1 No Set-off or Defenses by Company. The Executive's right to receive
when due the payments and other benefits provided for under this Agreement is
absolute, unconditional and shall not be subject to any set-off, counterclaim or
legal or equitable defense. The exclusive method for the Company to avoid
payments to the Executive under this Agreement, to the extent specified in this
Agreement, is to terminate Executive's employment for Cause pursuant to Sections
4.3 and 5.2 of this Agreement. Time is of the essence in the performance by the
Company of its obligations under this Agreement. Any claim which the Company may
have against the Executive, whether for a breach of this Agreement or otherwise,
shall be brought in a separate action or proceeding and not as part of any
action or proceeding brought by the Executive to enforce any rights against the
Company under this Agreement.

         9.2 No Mitigation. The Executive shall not have any duty to mitigate
the amounts payable by the Company under this Agreement by seeking new
employment following termination. Except as specifically otherwise provided in
this Agreement, all amounts payable pursuant to this Agreement shall be paid
without reduction regardless of any amounts of salary,

                                      -22-
<PAGE>   58

compensation or other amounts which may be paid or payable to the Executive as
the result of the Executive's employment by another employer.

                                   ARTICLE X.
                       CONFIDENTIALITY AND NONCOMPETITION

         10.1 Confidentiality. Executive acknowledges that it is the policy of
the Company and its subsidiaries to maintain as secret and confidential all
valuable and unique information and techniques acquired, developed or used by
the Company and its Subsidiaries relating to their business, operations,
employees and customers, which gives the Company and its subsidiaries a
competitive advantage in the construction and engineering industry and other
businesses in which the Company and its subsidiaries are engaged ("Confidential
Information"). Executive recognizes that all such Confidential Information is
the sole and exclusive property of the Company and its Subsidiaries, and that
disclosure of Confidential Information would cause damage to the Company and its
Subsidiaries. Executive agrees that, except as required by the duties of his
employment with the Company and/or its Subsidiaries and except in connection
with enforcing the Executive's rights under this Agreement or if compelled by a
court or governmental agency, he will not, without the consent of the Company,
disseminate or otherwise disclose any Confidential Information obtained during
his employment with the Company and/or its Subsidiaries for so long as such
information is valuable and unique.

         10.2 Noncompetition/Nonsolicitation.

                  (a) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive will not at any time directly or indirectly, in any capacity,
         engage or participate in, or become employed by or render advisory or
         consulting or other services in connection with any Prohibited Business
         as defined in Section 10.2(d).

                  (b) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive shall not make any financial investment, whether in the form
         of equity or debt, or own any interest, directly or indirectly, in any
         Prohibited Business. Nothing in this Section 10.2(b) shall, however,
         restrict Executive from making any investment in any company whose
         stock is listed on a national securities exchange or actively traded in
         the over-the-counter market; provided that (1) such investment does not
         give Executive the right or ability to control or influence the policy
         decisions of any Prohibited Business, and (2) such investment does not
         create a conflict of interest between Executive's duties hereunder and
         Executive's interest in such investment.

                  (c) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive shall not (1) employ any employee of the Company and/or its
         Subsidiaries or (2) interfere with the Company's or any of its

                                      -23-
<PAGE>   59

         Subsidiaries' relationship with, or endeavor to entice away from the
         Company and/or its Subsidiaries any person, firm, corporation, or other
         business organization who or which at any time (whether before or after
         the date of Executive's termination of employment), was an employee,
         customer, vendor or supplier of, or maintained a business relationship
         with, any business of the Company and/or its Subsidiaries which was
         conducted at any time during the period commencing one year prior to
         the termination of employment.

                  (d) For the purpose of this Section 10.2, "Prohibited
         Business" shall be defined as any construction and engineering business
         specializing in the engineering and design, materials procurement,
         fabrication, erection, repair and modification of steel tanks and other
         steel plate structures and associated systems and any branch, office or
         operation thereof, which is a direct and material competitor of the
         Company wherever the Company does business, including the Netherlands,
         the United States and any other country.

         10.3 Remedy. Executive and the Company specifically agree that, in the
event that Executive shall breach his obligations under this Article X, the
Company and its Subsidiaries will suffer irreparable injury and no adequate
remedy for such breach, and shall be entitled to injunctive relief therefor, and
in particular, without limiting the generality of the foregoing, the Company
shall not be precluded from pursuing any and all remedies it may have at law or
in equity for breach of such obligations; provided, however, that such breach
shall not in any manner or degree whatsoever limit, reduce or otherwise affect
the obligations of the Company under this Agreement, and in no event shall an
asserted breach of the Executive's obligations under this Article X constitute a
basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement.

                                  ARTICLE XI.
                                 MISCELLANEOUS

         11.1 No Assignability. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

         11.2 Successors. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to assume expressly and agree to perform this Agreement.
Any successor to the business and/or assets of the Company which assumes and
agrees to perform this Agreement by operation of law, contract, or otherwise
shall be jointly and severally liable with the Company under this Agreement.

         11.3 Payments to Beneficiary. If the Executive dies before receiving
amounts to which the Executive is entitled under this Agreement, such amounts
shall be paid as soon as administratively practicable in a lump sum to the
beneficiary designated in writing by the Executive, or if none is so designated,
to the Executive's estate.

                                      -24-
<PAGE>   60

         11.4 Non-alienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

         11.5 Severability. If any one or more articles, sections or other
portions of this Agreement are declared by any court or governmental authority
to be unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any article, section or other portion not so declared to be unlawful
or invalid. Any article, section or other portion so declared to be unlawful or
invalid shall be construed so as to effectuate the terms of such article,
section or other portion to the fullest extent possible while remaining lawful
and valid.

         11.6 Amendments. Except as provided in Section 2.2 hereof, this
Agreement shall not be altered, amended or modified except by written instrument
executed by the Company and Executive.

         11.7 Notices. All notices and other communications under this Agreement
shall be in writing and delivered by hand or by first class registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

                   If to the Executive:

                   Mr. Stephen P. Crain
                   1507 Grommon Road
                   Naperville, Illinois  60565

                   If to the Company (including any or all of CBICNV, CBIC or
                   CBICD):

                   Chicago Bridge & Iron Company
                   1501 North Division Street
                   Plainfield, Illinois  60544
                   Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing. Notice and communications shall be effective when actually received by
the addressee.

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

         11.9 Governing Law. This Agreement shall be interpreted and construed
in accordance with the laws of the State of Illinois, without regard to its
choice of law principles.

         11.10 Captions. The captions of this Agreement are not a part of the
provisions hereof and shall have no force or effect.

                                      -25-
<PAGE>   61

         11.11 Tax Withholding. The Company may withhold from any amounts
payable under this Agreement any federal, state or local taxes that are required
to be withheld pursuant to any applicable law or regulation.

         11.12 Joint and Several Obligations. The obligations of the Company
under this Agreement are joint and several obligations of CBICNV, CBIC and
CBICD; provided, however, that each of CBICNV, CBIC and CBICD may agree between
themselves but without adversely affecting the rights of the Executive which of
them shall provide any particular payment or benefit under this Agreement.

         11.13 No Waiver. The Executive's failure to insist upon strict
compliance with any provision of this Agreement shall not be deemed a waiver of
such provision or any other provision of this Agreement. A waiver of any
provision of this Agreement shall not be deemed a waiver of any other provision,
and any waiver of any default in any such provision shall not be deemed a waiver
of any later default thereof or of any other provision.

         11.14 Prior Agreement. The Change of Control Severance Agreement dated
March 4, 1999, between CBIC and the Executive is hereby terminated effective on
the date of this Agreement.

         11.15 Entire Agreement. This Agreement contains the entire
understanding of the Company and the Executive with respect to its subject
matter and supercedes any prior change of control severance agreement and any
Change of Control severance benefit provisions in any prior employment agreement
between the Company and the Executive.

                                      -26-
<PAGE>   62

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

                                              EXECUTIVE

                                              /s/ Stephen P. Crain
                                              ----------------------------------
                                              Stephen P. Crain

                                              CHICAGO BRIDGE & IRON COMPANY N.V.

                                              By: /s/ Gerald M. Glenn
                                                  ------------------------------
                                              Title: Managing Director
                                                    ----------------------------

                                              CHICAGO BRIDGE & IRON COMPANY

                                              By: /s/ Robert B. Jordan
                                                  ------------------------------
                                              Title:
                                                    ----------------------------

                                              CHICAGO BRIDGE & IRON COMPANY
                                              (DELAWARE)

                                              By: /s/  Timothy J. Wiggins
                                                  ------------------------------
                                              Title:
                                                    ----------------------------

                                      -27-
<PAGE>   63

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

<PAGE>   64

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                 PAGE
                                                                                                                 ----

<S>                                                                                                              <C>
ARTICLE I. PURPOSES...............................................................................................1

ARTICLE II. CERTAIN DEFINITIONS...................................................................................1
   2.1    "Accrued Obligations"...................................................................................1
   2.2    "Agreement Term"........................................................................................1
   2.3    "Affiliate".............................................................................................2
   2.4    "Article"...............................................................................................2
   2.5    "Beneficial Owner"......................................................................................2
   2.6    "Board".................................................................................................2
   2.7    "Cause".................................................................................................2
   2.8    "Change of Control".....................................................................................2
   2.9    "Code"..................................................................................................3
   2.10   "Deferral Plan".........................................................................................3
   2.11   "Disability"............................................................................................4
   2.12   "Effective Date"........................................................................................4
   2.13   "Good Reason"...........................................................................................4
   2.14   "Gross-up Payment"......................................................................................4
   2.15   "Growth Transaction"....................................................................................4
   2.16   "Imminent Control Change Date"..........................................................................4
   2.17   "IRS"...................................................................................................4
   2.18   "1934 Act"..............................................................................................4
   2.19   "Notice of Termination".................................................................................4
   2.20   "Plans".................................................................................................5
   2.21   "Policies" .............................................................................................5
   2.22   "Post-Change Period"....................................................................................5
   2.23   "Present Value".........................................................................................5
   2.24   "SEC"...................................................................................................5
   2.25   "Section"...............................................................................................5
   2.26   "SERP"..................................................................................................5
   2.27   "Shareholder Agreement".................................................................................5
   2.28   "Subsidiary"............................................................................................5
   2.29   "Termination Date"......................................................................................5
   2.30   "Transaction Owner".....................................................................................6
   2.31   "Voting Securities".....................................................................................6

ARTICLE III. POST-CHANGE PERIOD PROTECTIONS.......................................................................6
   3.1    General.................................................................................................6
   3.2    Position and Duties.....................................................................................6
   3.3    Compensation............................................................................................7
   3.4    Pro-Rata Bonus Payment..................................................................................9
   3.5    Equity Awards Vesting..................................................................................10
   3.6    Nonqualified Deferred Compensation.....................................................................10
</TABLE>

                                      -i-

<PAGE>   65

                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                             <C>
ARTICLE IV. TERMINATION OF EMPLOYMENT............................................................................11
   4.1    Disability.............................................................................................11
   4.2    Death..................................................................................................11
   4.3    Cause..................................................................................................11
   4.4    Good Reason............................................................................................13

ARTICLE V. OBLIGATIONS OF THE COMPANY UPON TERMINATION...........................................................14
   5.1    If  by the Executive for Good Reason or by the Company Other Than for Cause or Disability..............14
   5.2    If by the Company for Cause............................................................................16
   5.3    If by the Executive Other Than for Good Reason.........................................................17
   5.4    If by the Company for Disability.......................................................................17
   5.5    If upon Death..........................................................................................17

ARTICLE VI. NON-EXCLUSIVITY OF RIGHTS............................................................................17
   6.1    Waiver of Other Severance Rights.......................................................................17
   6.2    Other Rights...........................................................................................17

ARTICLE VII. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY..........................................................18
   7.1    Gross-up for Certain Taxes.............................................................................18
   7.2    Determination by the Executive.........................................................................18
   7.3    Additional Gross-up Amounts............................................................................19
   7.4    Gross-up Multiple......................................................................................19
   7.5    Opinion of Counsel.....................................................................................19
   7.6    Amount Increased or Contested..........................................................................20
   7.7    Refunds................................................................................................21

ARTICLE VIII. EXPENSES AND INTEREST..............................................................................21
   8.1    Legal Fees and Other Expenses..........................................................................21
   8.2    Interest...............................................................................................22

ARTICLE IX. NO SET-OFF OR MITIGATION.............................................................................22
   9.1    No Set-off or Defenses by Company......................................................................22
   9.2    No Mitigation..........................................................................................22

ARTICLE X. CONFIDENTIALITY AND NONCOMPETITION....................................................................23
   10.1   Confidentiality........................................................................................23
   10.2   Noncompetition/Nonsolicitation.........................................................................23
   10.3   Remedy.................................................................................................24

ARTICLE XI. MISCELLANEOUS........................................................................................24
   11.1   No Assignability.......................................................................................24
</TABLE>

                                     -ii-

<PAGE>   66

                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                             <C>
   11.2   Successors.............................................................................................24
   11.3   Payments to Beneficiary................................................................................24
   11.4   Non-alienation of Benefits.............................................................................25
   11.5   Severability...........................................................................................25
   11.6   Amendments.............................................................................................25
   11.7   Notices................................................................................................25
   11.8   Counterparts...........................................................................................25
   11.9   Governing Law..........................................................................................25
   11.10  Captions...............................................................................................25
   11.11  Tax Withholding........................................................................................26
   11.12  Joint and Several Obligations..........................................................................26
   11.13  No Waiver..............................................................................................26
   11.14  Prior Agreement........................................................................................26
   11.15  Entire Agreement.......................................................................................26
</TABLE>

                                      -iii-

<PAGE>   67

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

     THIS AGREEMENT dated as of October 13, 2000 is made among CHICAGO BRIDGE &
IRON COMPANY N.V. ("CBICNV"), a Netherlands corporation, CHICAGO BRIDGE & IRON
COMPANY, a Delaware corporation ("CBIC"), CHICAGO BRIDGE & IRON COMPANY
(DELAWARE), a Delaware corporation ("CBICD" and, together with CBICNV and CBIC,
the "Company"), each having its principal place of business in Plainfield,
Illinois, and Stephen M. Duffy (the "Executive"), a resident of Illinois.

                                   ARTICLE I.
                                    PURPOSES

     The Supervisory Board of CBICNV has determined that it is in the best
interests of the Company and its stockholders to assure that the Company will
have the continued service of the Executive, despite the possibility or
occurrence of a change of control of the Company. The Board believes it is
imperative to reduce the distraction of the Executive that would result from the
personal uncertainties caused by a pending or threatened change of control, to
encourage the Executive's full attention and dedication to the Company, and to
provide the Executive with compensation and benefits arrangements upon a change
of control which ensure that the expectations of the Executive will be satisfied
and are competitive with those of similarly-situated corporations. This
Agreement is intended to accomplish these objectives.

                                   ARTICLE II.
                               CERTAIN DEFINITIONS

     When used in this Agreement, the terms specified below shall have the
following meanings:

     2.1 "Accrued Obligations" has the meaning defined for that term in Section
5.3.

     2.2 "Agreement Term" means the period commencing on the date of this
Agreement and ending on the date which is thirty-six (36) months following the
date of this Agreement ("Expiration Date"); provided, however, that the
Agreement Term shall be extended as follows: (a) if neither the Company nor the
Executive gives written notice to the other pursuant to Section 11.7 that this
Agreement shall not be renewed ("Notice of Nonrenewal") within two years from
the date of this Agreement, the Agreement Term shall be extended to an
Expiration Date which shall be the first annual anniversary of the date a Notice
of Nonrenewal is given; (b) if an Imminent Control Change Date occurs before the
Expiration Date (as it may be extended under clause (a) above), then no Notice
of Nonrenewal shall thereafter be effective and the Agreement Term shall
automatically extend to an Expiration Date which is twelve (12) months after the
Imminent Change of Control Date, as further extended under the terms of this
clause should another Imminent Change of Control Date occur prior to the
Expiration Date as from time to time so extended, and (c) if a Change of Control
occurs before the Expiration Date (as extended

                                      -1-
<PAGE>   68

under clause (a) or (b) above or this clause (c)), the Expiration Date shall
automatically be extended to the last day of the Post-Change Period as the
Post-Change Period may be extended as provided in Section 2.22.

     2.3 "Affiliate" means an "affiliate" or "associate" as those terms are
defined in Rule 12b-2 under the 1934 Act.

     2.4 "Article" means an article of this Agreement.

     2.5 "Beneficial Owner" means such term as defined in Rule 13d-3 of the SEC
under the 1934 Act.

     2.6 "Board" means the Supervisory Board of Chicago Bridge & Iron Company
N.V.

     2.7 "Cause" has the meaning defined for that term in Section 4.3(b).

     2.8 "Change of Control" means, except as otherwise provided below, the
occurrence of any of the following:

         (a) any person (as such term is used in Rule 13d-5 of the SEC under the
     1934 Act) or group (as such term is defined in Section 13(d) of the 1934
     Act), other than a Subsidiary or any employee benefit plan (or any related
     trust) of the Company or a Subsidiary, becomes the Beneficial Owner of 25%
     or more of the common shares of any of CBICNV, CBIC or CBICD or of other
     Voting Securities representing 25% or more of the combined voting power of
     all Voting Securities of any of CBICNV, CBIC or CBICD; provided, however,
     that (i) no Change of Control shall be deemed to have occurred solely by
     reason of any such acquisition by a corporation with respect to which,
     after such acquisition, more than 75% of both the common shares or common
     stock of such corporation and the combined voting power of the Voting
     Securities of such corporation are then beneficially owned, directly or
     indirectly, by the persons who were the Beneficial Owners of the common
     shares and other Voting Securities of CBICNV, CBIC or CBICD immediately
     before such acquisition, in substantially the same proportion as their
     ownership of the common shares and other Voting Securities of CBICNV, CBIC
     or CBICD, as the case may be, immediately before such acquisition; and (ii)
     once a Change of Control occurs under this subsection (a), the occurrence
     of the next Change of Control (if any) under this subsection (a) shall be
     determined by reference to a person or group other than the person or group
     whose acquisition of Beneficial Ownership created such prior Change of
     Control unless the original person or group has in the meantime ceased to
     own 25% or more of the common shares of all of CBICNV, CBIC or CBICD or
     other Voting Securities representing 25% or more of the combined voting
     power of all Voting Securities of all of CBICNV, CBIC or CBICD; or

         (b) individuals who, as of the date of this Agreement or as of any
     Effective Date thereafter, are Supervisory Directors of CBICNV (the
     "Incumbent Directors") cease for any reason to constitute at least 50% of
     the members of the Board; provided, however, that (i) any individual who
     becomes a Supervisory Director after the Effective Date whose binding
     nomination for election to the Board by the general meeting of shareholders
     was approved by a vote or written consent of at least 75% of the

                                      -2-

<PAGE>   69

     Supervisory Directors who are then Incumbent Directors shall be considered
     an Incumbent Director, but excluding, for this purpose, any such individual
     whose initial assumption of office is in connection with an actual or
     threatened election contest relating to the election of the directors of
     the Company (as such terms are used in Rule 14a-11 of the SEC under the
     1934 Act); and (ii) once a Change of Control occurs under this subsection
     (b), the occurrence of the next Change of Control (if any) under this
     subsection (b) shall be determined by reference to the individuals who were
     Incumbent Directors immediately after the Effective Date of such prior
     Change of Control; or

         (c) approval by the Board, or by the shareholders of CBICNV, CBIC or
     CBICD, of any of the following:

              (i) a merger, reorganization or consolidation of CBICNV, CBIC or
         CBICD ("Merger"), other than a Merger after which the individuals and
         entities who were the respective beneficial owners of the common shares
         and other Voting Securities of CBICNV, CBIC or CBICD (as the case may
         be) immediately before such Merger beneficially own, directly or
         indirectly, more than 75% of, respectively, the common shares or common
         stock and the combined voting power of the Voting Securities of the
         corporation resulting from such Merger, in substantially the same
         proportion as their ownership of the common shares or common stock and
         other Voting Securities of CBICNV, CBIC or CBICD (as the case may be)
         immediately before such Merger, or

              (ii) a sale or other disposition by any of CBICNV, CBIC or CBICD
         of all or substantially all of the assets owned by it, or

              (iii) any transaction as a result of which CBICNV would not
         thereafter directly or indirectly own beneficially at least 75% of the
         common stock of CBIC or as a result of which CBIC would not thereafter
         directly or indirectly own beneficially at least 75% of the common
         stock of CBICD, unless after either such transaction CBICNV continues
         to own directly or indirectly substantially all of the pre-transaction
         assets of both CBIC and CBICD.

         (d) if a Growth Transaction previously occurred, any Transaction Owner
     individually, or Transaction Owners collectively:

              (i) materially breach(es) any provision of any shareholder
         agreement to which CBICNV and such Transaction Owner(s) are parties
         that addresses the governance of CBICNV following the Growth
         Transaction; or

              (ii) become(s) the Beneficial Owner of more than 66.5% of the
         common shares of any of CBICNV, CBIC or CBICD or of other Voting
         Securities representing more than 66.5% of the combined voting power of
         all Voting Securities of any of CBICNV, CBIC or CBICD.

     2.9  "Code" means the Internal Revenue Code of 1986, as amended.

     2.10 "Deferral Plan" has the meaning defined for that term in Section 3.6.

                                      -3-

<PAGE>   70

     2.11 "Disability" has the meaning defined for that term in Section 4.1(b).

     2.12 "Effective Date" means each date on which a Change of Control occurs
during the Agreement Term; provided, however, that if the Company terminates the
Executive's employment before the date of a Change of Control, and if the
Executive reasonably demonstrates that such termination of employment (a) was at
the request of a third party who had taken steps reasonably calculated to effect
the Change of Control or (b) otherwise arose in connection with or anticipation
of the Change of Control, then "Effective Date" shall mean the date immediately
before the date of such termination of employment.

     2.13 "Good Reason" has the meaning defined for that term in Section 4.4(b).

     2.14 "Gross-up Payment" has the meaning defined for that term in Section
7.1.

     2.15 "Growth Transaction" means (i) the acquisition by Wedge Group
Incorporated ("WGI"), a Delaware corporation, First Reserve Fund VIII, L.P.
("FRF"), a Delaware limited partnership, or Pitt-Des Moines, Inc. ("PDM"), a
Pennsylvania corporation, or their Affiliates, of common shares or other Voting
Securities of CBICNV as contemplated by an agreement with CBICNV for the
acquisition by CBICNV or an Affiliate of Howe-Baker International, Inc. from WGI
(the "HBI Transaction") or for the acquisition of the PDM Engineered
Construction Division and Water Division from PDM (the "PDM Transaction"); (ii)
the acquisition by a person (other than by public offering) of common shares or
other Voting Securities of CBICNV from CBICNV as part of an arrangement for
financing the HBI Transaction or the PDM Transaction; (iii) the acquisition by a
person of common shares or other Voting Securities of CBICNV from a previous
Transaction Owner if the person acquiring such common shares or other Voting
Securities is or becomes a party to a Shareholder Agreement with CBICNV that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner; or (iv) a transfer of common shares or other
Voting Securities of CBICNV from one Transaction Owner to another Transaction
Owner if the acquiring Transaction Owner is subject with respect to such shares
or other Voting Securities to either a preexisting Shareholder Agreement between
CBICNV and the acquiring Transaction Owner or a Shareholder Agreement that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner. However, a "Growth Transaction" will not include
any event described in Section 2.8(d).

     2.16 "Imminent Control Change Date" means any date on which occurs (a) a
presentation to the Company's shareholders generally or any of the Company's
directors or executive officers of a proposal or offer for a Change of Control,
or (b) the public announcement (whether by advertisement, press release, press
interview, public statement, SEC filing or otherwise) of a proposal or offer for
a Change of Control, or (c) such proposal or offer remains effective and
unrevoked.

     2.17 "IRS" means the Internal Revenue Service.

     2.18 "1934 Act" means the Securities Exchange Act of 1934, as amended.

     2.19 "Notice of Termination" means a written notice given in accordance
with Section 11.7 which sets forth (a) the specific termination provision in
this Agreement relied upon

                                      -4-

<PAGE>   71

by the party giving such notice, (b) in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under such termination provision and (c) if the Termination Date is
other than the date of receipt of such Notice of Termination, the Termination
Date.

     2.20 "Plans" means plans, programs, policies or practices of the Company or
any of its Subsidiaries.

     2.21 "Policies" means policies, practices or procedures of the Company or
any of its Subsidiaries.

     2.22 "Post-Change Period" means the period commencing on each Effective
Date and ending on the third annual anniversary of such Effective Date. If a new
Change of Control creates a new Effective Date during any current Post-Change
Period, the Post-Change Period shall be extended to the third annual anniversary
of such new Effective Date; and shall be further extended upon each new
Effective Date during the Post-Change Period as extended.

     2.23 "Present Value" means the present value, determined using (a) the
actuarial assumptions published by the Pension Benefit Guaranty Corporation
("PBGC") for determining immediate annuity values, as in effect on the first day
of the calendar year in which any payment of present value is required, or (b)
if no such actuarial assumptions are published by the PBGC, using the mortality
assumptions of the UP-84 group mortality table and an interest rate assumption
which is the lesser of (i) 75% of the current 30-year Treasury bond rate or (ii)
the current 30-year Treasury bond rate minus 150 basis points.

     2.24 "SEC" means the Securities and Exchange Commission.

     2.25 "Section" means, unless the context otherwise requires, a section of
this Agreement.

     2.26 "SERP" has the meaning defined for that term in Section 3.6.

     2.27 "Shareholder Agreement" means an agreement between CBICNV and a person
that limits the ability of such person and its Affiliates to obtain and exercise
control over the management and policies of the CBICNV.

     2.28 "Subsidiary" means a corporation as defined in Section 424(f) of the
Code (with the Company being treated as the employer corporation for purposes of
this definition) and any partnership or limited liability company in which the
Company or any Subsidiary has a direct or indirect interest (whether in the form
of voting power or participation in profits or capital contribution) of 50% or
more.

     2.29 "Termination Date" means the date of receipt of the Notice of
Termination or any later date specified in such notice (which date shall be not
more than 15 days after the giving of such notice), as the case may be;
provided, however, that (a) if the Company terminates the Executive's employment
other than for Cause or Disability, then the Termination Date shall be the date
of receipt of such Notice of Termination and (b) if the Executive's employment
is terminated by reason of death or Disability, then the Termination Date shall
be the date of death

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<PAGE>   72

of the Executive or the Disability Effective Date (as defined in Section
4.1(a)), as the case may be.

     2.30 "Transaction Owner" means a person who acquires common shares or other
Voting Securities of CBICNV in a Growth Transaction, or any Affiliate of such
person.

     2.31 "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors of
such corporation.

                                  ARTICLE III.
                         POST-CHANGE PERIOD PROTECTIONS

     3.1 General. On the Effective Date and during the Post-Change Period
thereafter the Company shall make the payments, provide the benefits and fulfill
the other obligations required by this Article III. However, if , such Effective
Date and Post-Change Period result solely from a Growth Transaction:

         (a) Section 3.3(b) shall not apply except for purposes of determining
     the obligations of the Company on termination pursuant to Section 5.1, and
     to the extent provided in Section 4.4(b)(iii) and as modified thereby, in
     determining the existence of Good Reason;

         (b) clause (ii) of each of Sections 3.3(c) through 3.3(h) shall not
     apply except for purposes of determining the obligations of the Company on
     termination pursuant to Section 5.1; but the aggregate value to the
     Executive of all Plans, fringe benefits and arrangements described in
     Sections 3.3(c) through 3.3(h) shall not be less favorable, in the
     aggregate, than the aggregate value to the Executive of such Plans, fringe
     benefits and arrangements provided by the Company to the Executive or peer
     executives at any time during the 90-day period immediately before such
     Effective Date; and

         (c) Sections 3.4, 3.5, and 3.6 shall not apply on such Effective Date;
     but to the extent such vesting or payment is not otherwise required by
     Section 5.1, Sections 3.4, 3.5 and 3.6, shall apply to the Executive on the
     Termination Date (as if such Sections referred to the "Termination Date"
     instead of the "Effective Date") if during the Post-Change Period the
     Company shall terminate Executive's employment other than for Cause, or if
     the Executive shall terminate employment for Good Reason, or if employment
     terminates as a result of Disability or death.

     3.2 Position and Duties.

         (a) During the Post-Change Period, (1) the Executive's position
     (including offices, titles, reporting requirements and responsibilities),
     authority and duties shall be at least commensurate in all material
     respects with the most significant of those held by, exercised by, or
     assigned to the Executive at any time during the 90-day period immediately
     before the Effective Date and (2) the Executive's services shall be
     performed at the location where the Executive was employed immediately
     before the Effective Date or any other location less than 40 miles from
     such former location.

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<PAGE>   73

         (b) During the Post-Change Period (other than any periods of vacation,
     sick leave, disability leave or other family or medical leave to which the
     Executive is entitled), the Executive shall devote his or her full
     attention and time to the business and affairs of the Company and, to the
     extent necessary to discharge the duties assigned to the Executive in
     accordance with this Agreement, shall use his or her best efforts to
     perform such duties faithfully and efficiently. During the Post-Change
     Period, the Executive may (1) serve on corporate, civic or charitable
     boards or committees, (2) deliver lectures, fulfill speaking engagements or
     teach at educational institutions and (3) manage personal investments, so
     long as such activities are consistent with the Policies of the Company or
     its Subsidiaries at the Effective Date and do not significantly interfere
     with the performance of the Executive's duties under this Agreement. To the
     extent that any such activities have been conducted by the Executive before
     the Effective Date and were consistent with the Policies of the Company or
     its Subsidiaries at the Effective Date, the continued conduct of such
     activities (or activities similar in nature and scope) after the Effective
     Date shall not be deemed to interfere with the performance of the
     Executive's duties under this Agreement.

     3.3 Compensation.

         (a) Base Salary. During the Post-Change Period, the Company shall pay
     or cause to be paid to the Executive an annual base salary in cash
     ("Guaranteed Base Salary"), which shall be paid in a manner consistent with
     the Company's payroll practices in effect immediately before the Effective
     Date for such Post-Change Period, at a rate at least equal to the highest
     rate of annual salary paid or payable to the Executive by the Company at
     any time during the 12-month period immediately before such Effective Date.
     During the Post-Change Period, the Guaranteed Base Salary shall be reviewed
     at least annually and shall be increased at any time and from time to time
     as shall be substantially consistent with increases in base salary awarded
     to other peer executives of the Company. Any increase in Guaranteed Base
     Salary shall not limit or reduce any other obligation of the Company to the
     Executive under this Agreement. After any such increase, the Guaranteed
     Base Salary shall not be reduced and the term "Guaranteed Base Salary"
     shall thereafter refer to the increased amount.

         (b) Guaranteed Bonus.

              (i) During the Post-Change Period, the Company shall pay or cause
         to be paid to the Executive a bonus (the "Guaranteed Bonus") for each
         Performance Period which ends during the Post-Change Period.
         "Performance Period" means each period of time designated in accordance
         with any bonus arrangement ("Bonus Plan") which is based upon
         performance and approved by the Board or by any committee of the Board.
         For purposes of this Section 3.3, a Bonus Plan includes, without
         limitation, the Company's Incentive Compensation Plan as in effect on
         the date hereof or any similar plan, but does not include the Company's
         1997 or 1999 Long-Term Incentive Plan (an "LTIP") or any similar plan
         under which equity awards described Section 3.5 are granted, unless
         failure to consider the LTIP a Bonus Plan would leave the Company
         without any Bonus Plan covering Executive. The Guaranteed Bonus shall
         be at least equal to the product

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<PAGE>   74

         of (A) the greater of (i) the On Plan Percentage (as defined below), or
         (ii) the Actual Bonus Percentage (as defined below), multiplied by (B)
         the Guaranteed Base Salary.

              (ii) For purposes of this Section 3.3(b):

                        (A) "On Plan Percentage" means the percentage of
                   Guaranteed Base Salary to which the Executive would be
                   entitled under the Bonus Plan(s) for the Performance Period
                   for which the Guaranteed Bonus is awarded ("Current
                   Performance Period") if performance achieved 100% of the
                   target performance goals established pursuant to such Bonus
                   Plan(s); or, if greater, the percentage of Guaranteed Base
                   Salary to which Executive would have been entitled under the
                   Bonus Plan(s) for the Performance Period ending immediately
                   prior to the Post-Change Period if performance achieved 100%
                   of the performance goals established pursuant to such Bonus
                   Plan(s) for such prior Performance Period.

                        (B) "Actual Bonus Percentage" means the percentage of
                   Guaranteed Base Salary for the Current Performance Period to
                   which the Executive would be entitled under any Bonus Plan if
                   the performance were measured by the actual performance
                   during the Current Performance Period; provided, however,
                   that for purposes of determining the Guaranteed Bonus for
                   purposes of Sections 3.4 and 5.1(b), "Actual Bonus
                   Percentage" means the percentage of Guaranteed Base Salary
                   for the Performance Period during which the Effective Date
                   (for purposes of Section 3.4) or Termination Date (for
                   purposes of Section 5.1(b)) occurs to which the Executive
                   would be entitled if the performance during such Performance
                   Period were measured by the actual performance during the
                   portion of such Performance Period before the Effective Date
                   or the Termination Date (whichever is applicable), projected
                   to the last day of such Performance Period.

         (c) Incentive, Savings and Retirement Plans. During the Post-Change
     Period and notwithstanding the payment required by Section 3.6, (i) the
     Executive shall be entitled to continue to participate in all incentive
     (including long-term incentives and management stock plans), savings,
     deferred compensation, retirement and benefit restoration Plans provided by
     the Company and applicable to other peer executives of the Company, but
     (ii) in no event shall such Plans provide the Executive with incentive
     (including long-term incentives and management stock benefits), savings,
     deferred compensation, retirement and benefit restoration benefits which,
     in any case, are less favorable, in the aggregate, than the most favorable
     of those provided by the Company to the Executive or to peer executives
     under such Plans as in effect at any time during the 90-day period
     immediately before any Effective Date.

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<PAGE>   75

         (d) Welfare Benefit Plans. During the Post-Change Period, (i) the
     Executive and the Executive's family shall be eligible to participate in,
     and receive all benefits under, welfare benefit Plans (including, without
     limitation, medical, prescription, dental, disability, salary continuance,
     individual life, group life, dependent life, accidental death and travel
     accident insurance Plans) provided by the Company and applicable to other
     peer executives of the Company and their families, but (ii) in no event
     shall such Plans provide benefits which in any case are less favorable, in
     the aggregate, than the most favorable of those provided by the Company to
     the Executive or to peer executives under such Plans as in effect at any
     time during the 90-day period immediately before any Effective Date.

         (e) Fringe Benefits. During the Post-Change Period, (i) the Executive
     shall be entitled to fringe benefits (including, without limitation, any
     foreign service travel and housing allowances for Executive and the
     Executive's family under Plans or Policies of the Company for foreign
     service) in accordance with the most favorable Plans provided by the
     Company and applicable to other peer executives of the Company, but (ii) in
     no event shall such Plans provide fringe benefits which in any case are
     less favorable, in the aggregate, than the most favorable of those provided
     by the Company to the Executive or peer executives under such Plans in
     effect at any time during the 90-day period immediately before any
     Effective Date.

         (f) Expenses. During the Post-Change Period, (i) the Executive shall be
     entitled to prompt reimbursement of all reasonable employment-related
     expenses incurred by the Executive upon the Company's receipt of
     accountings in accordance with the most favorable Policies applicable to
     peer executives of the Company, but (ii) in no event shall such Policies be
     less favorable, in the aggregate, than the most favorable of those provided
     by the Company to the Executive or to peer executives under such Policies
     in effect at any time during the 90-day period immediately before any
     Effective Date.

         (g) Office and Support Staff. During the Post-Change Period, (i) the
     Executive shall be entitled to an office or offices of a size and with
     furnishings and other appointments, and to secretarial and other assistance
     in accordance with the most favorable Policies applicable to peer
     executives of the Company, but (ii) in no event shall such Policies be less
     favorable, in the aggregate, than the most favorable of those provided by
     the Company to the Executive or to peer executives under such Policies in
     effect at any time during the 90-day period immediately before any
     Effective Date.

         (h) Vacation. During the Post-Change Period, (i) the Executive shall be
     entitled to paid vacation in accordance with the most favorable Policies
     applicable to peer executives of the Company, but (ii) in no event shall
     such Policies be less favorable, in the aggregate, than the most favorable
     of those provided by the Company to the Executive or to peer executives
     under such Policies in effect at any time during the 90-day period
     immediately before any Effective Date.

     3.4 Pro-Rata Bonus Payment.

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<PAGE>   76

     On each Effective Date the Company shall pay to Executive in a single lump
sum in cash the product of (A) the Guaranteed Bonus for the Performance Period
in which falls the Effective Date, multiplied by (B) a fraction, the numerator
of which is the number of days in such Performance Period before the Effective
Date, and the denominator of which is the total number of days in such
Performance Period. The amount of Guaranteed Bonus for such Performance Period
otherwise payable pursuant to Section 3.3(b), or otherwise payable pursuant to
this Section 3.4 by reason of a later Change of Control in the same Performance
Period, shall be reduced by any earlier payment made under this Section 3.4 for
the same Performance Period.

     3.5 Equity Awards Vesting.

     On the Effective Date, the Executive shall become fully vested in:

         (a) any and all outstanding options ("Options") to purchase common
     shares of the Company granted to Executive prior to the Effective Date
     under any Plan, contract or arrangement for Options, which Options shall
     become fully exercisable;

         (b) any outstanding shares of restricted common shares of the Company
     regardless whether such restrictions are scheduled to lapse based on
     service or on performance or both ("Restricted Stock") awarded to Executive
     under any Plan, contract or arrangement for Restricted Stock; which shall
     become unrestricted and freely transferable; and

         (c) any outstanding awards providing for the payment of a variable
     number of common shares of the Company dependent on the achievement of
     performance goals, or of an amount based on the fair market value of such
     shares or the appreciation thereof ("Performance Shares") awarded to
     Executive under any Plan, contract or arrangement for Performance Shares;
     and there shall be paid out in cash to Executive within 30 days following
     the Effective Date of the Change of Control the value of the Performance
     Shares to which Executive would have been entitled if performance achieved
     100% of the target performance goals established for such Performance
     Shares.

     To the extent that for any reason such Options, Restricted Stock and
Performance Shares do not become vested on the Effective Date, the Company shall
pay Executive a cash amount equal to (i) the positive difference, if any,
between the value of the shares of common stock subject to the Options that did
not become vested (or, if greater, the value paid or to be paid in connection
with the Change of Control to a holder of an equal number of shares of common
stock ("Change of Control Value")) and the Option exercise price with respect to
such shares, as of and on the date such Options are forfeited; plus (ii) the
fair market value (determined without regard to any restriction other than a
restriction which by its terms may never lapse) (or, if greater, the Change of
Control Value) of all non-vested forfeited Restricted Stock and Performance
Shares as of and on the date such Restricted Stock or Performance Shares are
forfeited. Nothing in this Section 3.5 shall require the vesting, or payment, of
equity awards granted after such Effective Date unless a new Effective Date has
intervened

     3.6 Nonqualified Deferred Compensation.

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<PAGE>   77

     On the Effective Date Executive shall become fully vested in and the
Company shall pay to Executive in a single lump sum in cash (1) the value of
Executive's then-accrued benefits, if any, which remain unpaid under any
nonqualified deferred compensation, benefit restoration, excess benefit or other
individual account plan, contract or arrangement for deferred compensation
maintained by the Company under which benefits are calculated by reference to an
individual account (a "Deferral Plan"), and (2) the Present Value of Executive's
then-accrued benefits, if any, which remain unpaid under any nonqualified
supplemental executive retirement plan or other plan, contract or arrangement
for retirement benefits maintained by the Company under which benefits are
calculated by reference to a defined amount payable in connection with or after
retirement or other termination of employment an (a "SERP").

                                  ARTICLE IV.
                            TERMINATION OF EMPLOYMENT

     4.1 Disability.

         (a) During the Post-Change Period, the Company may terminate the
     Executive's employment upon the Executive's Disability (as defined in
     Section 4.1(b)) by giving the Executive or his legal representative, as
     applicable, Notice of Termination accompanied by a certification of the
     Executive's Disability by a physician selected by the Company or its
     insurers and reasonably acceptable to the Executive or the Executive's
     legal representative. The Executive's employment shall terminate effective
     on the 30th day (the "Disability Effective Date") after the Executive's
     receipt of such Notice of Termination unless, before the Disability
     Effective Date, the Executive shall have resumed the full-time performance
     of the Executive's duties.

         (b) "Disability" means any medically determinable physical or mental
     impairment that has lasted for a continuous period of not less than six
     months and can be expected to be permanent or of indefinite duration, and
     that renders the Executive unable to perform the essential functions
     required under this Agreement with or without reasonable accommodation.

         (c) Unless the Company establishes, by clear and convincing evidence,
     that Executive has a Disability, any purported termination of employment
     for Disability shall be deemed a termination other than for Disability for
     all purposes of this Agreement.

     4.2 Death. The Executive's employment shall terminate automatically upon
the Executive's death during the Post-Change Period.

     4.3 Cause.

         (a) During the Post-Change Period, the Company may terminate the
     Executive's employment for Cause.

         (b) "Cause" means any of the following: Executive's conviction of a
     felony or of a crime involving fraud, dishonesty or moral turpitude;
     Executive's willful or intentional material breach of this Agreement that
     results in financial detriment that is material to the

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<PAGE>   78

     Company as a whole; or willful or intentional misconduct by Executive in
     the performance of his duties under this Agreement that results in
     financial detriment that is material to the Company as a whole; except that
     Cause shall not mean:

              (i) bad judgment or negligence;

              (ii) any act or omission believed by the Executive in good faith
         to have been in or not opposed to the interest of the Company (without
         intent of the Executive to gain, directly or indirectly, a profit to
         which the Executive was not legally entitled);

              (iii) any act or omission with respect to which a determination
         could properly have been made by the Board that the Executive met the
         applicable standard of conduct for indemnification or reimbursement
         under the Company's by-laws, any applicable indemnification agreement,
         or applicable law, in each case in effect at the time of such act or
         omission; or

              (iv) any act or omission with respect to which Notice of
         Termination is not given within 12 months after the earliest date on
         which any member of the Board, not a party to the act or omission, knew
         or should have known of such act or omission.

         (c) The Company may not during the Post-Change Period terminate
     Executive's employment for Cause unless the following procedures are fully
     complied with:

              (i) no fewer than 45 days prior to the Termination Date, the
         Company provides Executive with written notice (the "Notice of
         Consideration") of its intent to consider termination of Executive's
         employment for Cause, including a detailed description of the specific
         reasons which form the basis for such consideration;

              (ii) if after providing Notice of Consideration, the Board may, by
         the affirmative vote of at least 80% of its members (excluding for this
         purpose Executive if he is a member of the Board, and any other member
         of the Board reasonably believed by the Board to be involved in the
         events issuing the Notice of Consideration), suspend Executive with pay
         until a final determination pursuant to this Section has been made;

              (iii) for a period of not less than 30 days after the date Notice
         of Consideration is provided, Executive shall have the opportunity to
         appear before the Board, with or without legal representation, at
         Executive's election, to present arguments and evidence on his own
         behalf; and

              (iv) following the presentation to the Board as provided in (3)
         above or Executive's failure to appear before the Board at a date and
         time specified in the Notice of Consideration (which date shall not be
         less than 30 days after the date the Notice of Consideration is
         provided), Executive may be terminated for Cause only if (i) the Board,
         by the affirmative vote of at least 80% of its members

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<PAGE>   79

         (excluding Executive if he is a member of the Board, and any other
         member of the Board reasonably believed by the Board to be involved in
         the events leading the Board to terminate Executive for Cause),
         determines that the actions or inactions of Executive specified in the
         Notice of Consideration occurred, that such actions or inactions
         constitute Cause, and that Executive's employment should accordingly be
         terminated for Cause; and (ii) the Board provides Executive with a
         written determination (a "Notice of Termination for Cause") setting
         forth in specific detail the basis of such Termination of Employment,
         which Notice of Termination for Cause shall be consistent with the
         reasons set forth in the Notice of Consideration.

     Unless the Company establishes, by clear and convincing evidence, both (x)
its full compliance with the substantive and procedural requirements of this
Section prior to a termination of employment for Cause, and (y) that Executive's
action or inaction specified in the Notice of Termination for Cause did occur
and constituted Cause, any purported termination of employment for Cause shall
be deemed a termination without Cause for all purposes of this Agreement.

     4.4 Good Reason.

         (a) During the Post-Change Period, the Executive may terminate
     employment for Good Reason within 12 months following the Executive's
     actual knowledge of an act or omission which constitutes Good Reason;
     provided, however, that the Executive's failure to terminate within 12
     months following Executive's actual knowledge of a particular act or
     omission which constitutes Good Reason shall not prevent Executive's
     termination for any other act or omission which constitutes Good Reason.

         (b) "Good Reason" means any of the following:

              (i) the assignment to the Executive of any duties inconsistent in
         any respect with the Executive's position (including offices, titles,
         reporting requirements or responsibilities), authority or duties as
         prescribed by Section 3.2(a)(1), or the Company's requiring the
         Executive to be based at any office or location other than the location
         described in Section 3.2(a)(2);or any other action by the Company which
         results in a diminution or other material adverse change in such
         position, authority or duties;

              (ii) the failure to pay Guaranteed Base Salary in at least the
         amount prescribed by Section 3.2(a);

              (iii) the failure to pay Guaranteed Bonus in at least the amount
         prescribed by Section 3.3(b); provided, however, that if the
         Post-Change Period results solely from a Growth Transaction; Good
         Reason under this clause (iii) shall only be the failure to provide
         Executive with a bonus opportunity (including designation of target
         performance goals and percentage of Guaranteed Base Salary payable on
         achievement of target performance goals) no less favorable to

                                      -13-
<PAGE>   80

         Executive than that provided by the Company to Executive for either of
         the two most recent Performance Periods beginning before such Growth
         Transaction;

              (iv) the failure to provide any plan or fringe benefits or
         perquisites prescribed by Sections 3.3(c) through 3.3(h), as modified,
         if the Post-Change Period results solely from a Growth Transaction, by
         Section 3.1(b);

              (v) any other failure by the Company to comply with any of the
         provisions of Article III;

              (vi) any other material adverse change to the terms and conditions
         of the Executive's employment (whether or not also described in clauses
         (i) through (v) above);

              (vii) the Board's giving Notice of Consideration pursuant to
         Section 4.3(c) (of the intent to consider terminating Executive for
         Cause) but failing to terminate Executive for Cause within a period of
         90 days thereafter in compliance with all substantive and procedural
         requirements of Section 4.3,

              (viii) any purported termination by the Company of the Executive's
         employment other than as expressly permitted by this Agreement (any
         such purported termination shall not be effective for any other purpose
         under this Agreement);

              (ix) a failure by the Company to cause a successor, prior to or as
         of the date it becomes a successor, to assume and agree to perform this
         Agreement in accordance with the provisions of Section 11.2 hereof.

     Any determination by Executive that any of the foregoing events has
     occurred and constitutes "Good Reason" shall be conclusive and binding for
     all purposes unless the Company establishes by clear and convincing
     evidence that Executive did not have a reasonable basis for such a
     determination.

         (c) Any termination of employment by the Executive for Good Reason
     shall be communicated to the Company by Notice of Termination. The passage
     of time not in excess of 12 months after the Executive has actual knowledge
     of an act or omission which constitutes Good Reason prior to delivery of
     Notice of Termination or a failure by the Executive to include in the
     Notice of Termination any fact or circumstance which contributes to a
     showing of Good Reason shall not waive any right of the Executive under
     this Agreement or preclude the Executive from asserting such fact or
     circumstance in enforcing rights under this Agreement.

                                   ARTICLE V.
                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

     5.1 If by the Executive for Good Reason or by the Company Other Than for
Cause or Disability. If, during the Post-Change Period, the Company shall
terminate Executive's

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<PAGE>   81

employment other than for Cause, Disability, or death or if the Executive shall
terminate employment for Good Reason, the Company shall pay the Executive within
five (5) days of the Termination Date (or if earlier within five (5) days of the
last day Executive performed services for the Company as an Employee), in
addition to all vested rights arising from the Executive's employment as
specified in Article III, a cash amount equal to the sum of the amounts
described in (a) through (g) below and the additional benefits described in (h)
through (i) below:

         (a) The Guaranteed Base Salary, any accrued vacation pay and business
     expenses incurred through the Termination Date, to the extent not
     previously paid to the Executive by the Company.

         (b) The difference between (1) the product of (A) the Guaranteed Bonus,
     multiplied by (B) a fraction, the numerator of which is the number of days
     in the Termination Performance Period which elapsed before the Termination
     Date, and the denominator of which is the total number of days in the
     Termination Performance Period, and (2) the amount of any Guaranteed Bonus
     previously paid to the Executive by the Company with respect to the
     Termination Performance Period.

         (c) The value of Executive's then-accrued benefits under any Deferral
     Plan plus the present value of Executive's then-accrued benefits under any
     SERP, determined without disregarding service and compensation before any
     Effective Date but then reduced by the amount, if any, previously paid to
     the Executive by the Company pursuant to Section 3.6.

         (d) An amount equal to the product of (1) three (3.0), multiplied by
     (2) the sum of (A) the Guaranteed Base Salary and (B) the Guaranteed Bonus.

         (e) An amount equal to the sum of the value of the unvested portion of
     the Executive's accounts or accrued benefits under any qualified plan
     maintained by the Company as of the Termination Date.

         (f) The difference between (1) the amount that would be determined
     under Section 5.1(c) above if such amount were calculated (to the extent
     applicable in determining such amount) (A) as though the Executive
     continued to accrue benefits and be credited with service under the SERP
     for a period of three years after the Termination Date, (B) as though the
     Executive received compensation during each year of such three-year period
     equal to the sum of the Guaranteed Base Salary and the highest Guaranteed
     Bonus paid (or payable) to the Executive in the three calendar years
     preceding the Termination Date, (C) as though the Executive were three (3)
     years older than his age at the Termination Date, and (D) without
     disregarding service and compensation before the Termination Date; reduced
     by (2) the amount (if any) previously or simultaneously paid by the Company
     to the Executive pursuant to Sections 3.6 and 5.1(c).

         (g) In addition to the foregoing amounts, the Company shall pay on
     behalf of Executive all fees and costs charged by the outplacement firm
     selected by the Executive to provide outplacement services or at the
     election of the Executive, an immediate cash

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<PAGE>   82

     payment equal to the fees and expenses such outplacement firm would charge
     but not in excess of 20% of the Guaranteed Base Salary.

         (h) In addition to the foregoing payments, until the third annual
     anniversary of the Termination Date or such later date as any Plan of the
     Company may specify, the Company shall continue to provide to the Executive
     and the Executive's family welfare benefits (including, without limitation,
     medical, prescription, dental, disability, salary continuance, individual
     life, group life, accidental death and travel accident insurance plans and
     programs) which are at least as favorable as the most favorable Plans of
     the Company applicable to other peer executives and their families as of
     the Termination Date, but which are in no event less favorable than the
     most favorable Plans of the Company applicable to other peer executives and
     their families during the 90-day period immediately before the Effective
     Date; and the cost of such welfare benefits to Executive shall not exceed
     the cost of such benefits to the Executive immediately before the
     Termination Date or, if less, the Effective Date.

         (i) Beginning on the later of the third annual anniversary of the
     Termination Date or the date Executive attains age 50, and continuing until
     the death of the last to die of Executive and his or her spouse, the
     Company shall provide to the Executive and to Executive's family medical
     benefits which (1) until Executive attains age sixty-five (65) are at least
     as favorable as the most favorable medical Plans of the Company applicable
     to actively employed peer executives and that covered any active employee
     of the Company as of the Effective Date, and (2) from and after the date
     Executive attains age 65, are at least as favorable as the most favorable
     medical Plans of the Company applicable to eligible retired peer executives
     and that covered any retired employee as of the Effective Date; and the
     cost to Executive of such medical benefits for the period described in
     clause (1) shall not exceed the cost of such benefits to Executive
     immediately before the Termination Date or, if less, the Effective Date,
     and the cost to Executive of such medical benefits for the period described
     in clause (2) shall not exceed the cost of such benefits to any similarly
     situated eligible retiree of the Company immediately before the Termination
     Date or, if less, the Effective Date.

The Executive's rights under this Section 5.1 shall be in addition to, and not
in lieu of, any post-termination continuation coverage or conversion rights the
Executive may have pursuant to applicable law, including without limitation
continuation coverage required by Section 4980 of the Code or Part 6 of Title I
of the Employee Retirement Income Security Act of 1974, as amended, for which
purpose the date of the qualifying event shall not be earlier than the date
specified in the first sentence of Section 5.1(i). However, if the Executive is
covered under a medical, life, or disability insurance plan provided by a
subsequent employer at equal or lesser cost to Executive than the cost to
Executive of coverage under the corresponding Company plan required by Sections
5.1(i), then the benefits under the corresponding Company plan required by
Sections 5.1(i) shall be secondary to the benefits under the subsequent
employer's medical, life, or disability insurance plan.

     5.2 If by the Company for Cause. If the Company terminates the Executive's
employment for Cause during the Post-Change Period pursuant to the procedures
set forth in Section 4.3, this Agreement shall terminate without further
obligation by the Company to the

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<PAGE>   83

Executive, other than the obligation immediately to pay the Executive in cash
the Executive's Guaranteed Base Salary through the Termination Date, plus the
amount of any compensation previously deferred by the Executive, plus any
accrued vacation pay and business expenses incurred through the Termination
Date, in each case to the extent not previously paid or reimbursed.

     5.3 If by the Executive Other Than for Good Reason. If the Executive
terminates employment during the Post-Change Period other than for Good Reason,
Disability or death, this Agreement shall terminate without further obligations
by the Company, other than the obligation immediately to pay the Executive in
cash all amounts specified in paragraphs (a), (b) and (c) of Section 5.1 (such
amounts collectively, the "Accrued Obligations").

     5.4 If by the Company for Disability. If the Company terminates the
Executive's employment by reason of the Executive's Disability during the
Post-Change Period, this Agreement shall terminate without further obligations
to the Executive, other than:

         (a) the Company's obligation immediately to pay the Executive in cash
     all Accrued Obligations, and

         (b) the Executive's right after the Disability Effective Date to
     receive disability and other benefits at least equal to the greater of (i)
     those provided under the most favorable disability Plans applicable to
     disabled peer executives of the Company in effect immediately before the
     Termination Date or (ii) those provided under the most favorable disability
     Plans of the Company in effect at any time during the 90-day period
     immediately before the Effective Date.

     5.5 If upon Death. If the Executive's employment is terminated by reason of
the Executive's death during the Post-Change Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than the obligation immediately to pay the
Executive's estate or beneficiary in cash all Accrued Obligations. Despite
anything in this Agreement to the contrary, the Executive's family shall be
entitled to receive benefits at least equal to the most favorable benefits
provided by the Company to the surviving families of peer executives of the
Company under such Plans, but in no event shall such Plans provide benefits
which in each case are less favorable, in the aggregate, than the most favorable
of those provided by the Company to the Executive under such Plans in effect at
any time during the 90-day period immediately before the Effective Date.

                                  ARTICLE VI.
                            NON-EXCLUSIVITY OF RIGHTS

     6.1 Waiver of Other Severance Rights. To the extent that payments are made
to the Executive pursuant to Section 5.1, the Executive hereby waives the right
to receive severance payments under any other Plan or agreement of or with the
Company.

     6.2 Other Rights. Except as provided in Section 6.1, this Agreement shall
not prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other Plans provided by the Company or any of its
Subsidiaries and for which the Executive may

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<PAGE>   84

qualify, nor shall this Agreement limit or otherwise affect such rights as the
Executive may have under any other agreements with the Company or any of its
Subsidiaries. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any Plan of the Company or any of its
Subsidiaries and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such Plan or applicable law
except as expressly modified by this Agreement.

                                  ARTICLE VII.
                   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY

     7.1 Gross-up for Certain Taxes. If it is determined (by the reasonable
computation of the Company's independent auditors, which determinations shall be
certified to by such auditors and set forth in a written certificate
("Certificate") delivered to the Executive) that any benefit received or deemed
received by the Executive from the Company pursuant to this Agreement or
otherwise (collectively, the "Payments") is or will become subject to any excise
tax under Section 4999 of the Code or any similar tax payable under any United
States federal, state, local or other law (such excise tax and all such similar
taxes collectively, "Excise Taxes"), then the Company shall, immediately after
such determination, pay the Executive an amount (the "Gross-up Payment") equal
to the product of

         (a) the amount of such Excise Taxes

multiplied by

         (b) the Gross-up Multiple (as defined in Section 7.4).

The Gross-up Payment is intended to compensate the Executive for the Excise
Taxes and any federal, state, local or other income or excise taxes or other
taxes payable by the Executive with respect to the Gross-up Payment.

     The Executive or the Company may at any time request the Company's
independent auditors to prepare and deliver a Certificate to the Executive. The
Company shall, in addition to complying with Section 7.2, cause all
determinations and certifications under the Article to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and
file the Executive's individual tax returns on a timely basis.

     7.2 Determination by the Executive.

         (a) If the Company or its independent auditors shall fail to deliver a
     Certificate to the Executive (and to pay to the Executive the amount of the
     Gross-up Payment, if any) within 14 days after receipt from the Executive
     of a written request for a Certificate, or if at any time following receipt
     of a Certificate the Executive disputes the amount of the Gross-up Payment
     set forth therein, the Executive may elect to demand the payment of the
     amount which the Executive, in accordance with an Executive Counsel
     Opinion), (as defined in Section 7.5), determines to be the Gross-up
     Payment. Any such demand by the Executive shall be made by delivery to the
     Company of a written notice which specifies the Gross-up Payment determined
     by the Executive and an Executive Counsel

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<PAGE>   85

     Opinion regarding such Gross-up Payment (such written notice and opinion
     collectively, the "Executive's Determination"). Within 14 days after
     delivery of the Executive's Determination to the Company, the Company shall
     either (1) pay the Executive the Gross-up Payment set forth in the
     Executive's Determination (less the portion of such amount, if any,
     previously paid to the Executive by the Company) or (2) deliver to the
     Executive a Certificate specifying the Gross-up Payment determined by the
     Company's independent auditors, together with a Company Counsel Opinion (as
     defined in Section 7.5), and pay the Executive the Gross-up Payment
     specified in such Certificate. If for any reason the Company fails to
     comply with clause (2) of the preceding sentence, the Gross-up Payment
     specified in the Executive's Determination shall be controlling for all
     purposes.

         (b) If the Executive does not make a request for, and the Company does
     not deliver to the Executive, a Certificate, the Company shall, for
     purposes of Section 7.3, be deemed to have determined that no Gross-up
     Payment is due.

     7.3 Additional Gross-up Amounts. If the amount of Excise Taxes payable by
the Executive with respect to all Payments is determined (pursuant to the
subsequently-enacted provisions of the Code, final regulations or published
rulings of the IRS, final judgment of a court of competent jurisdiction or the
Company's independent auditors) to be greater than the amount previously paid by
the Company to the Executive pursuant to Section 7.1 or 7.2, as applicable, then
the Company shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

         (a) the sum of (i) such additional Excise Taxes and (ii) any interest,
     fines, penalties, expenses or other costs incurred by the Executive as a
     result of having taken a position in accordance with a determination made
     pursuant to Section 7.1,

multiplied by

         (b) the Gross-up Multiple.

     7.4 Gross-up Multiple. The Gross-up Multiple shall equal the quotient
(greater than one (1.0)) of one (1.0) divided by one (1.0) minus the sum,
expressed as a decimal fraction, of the rates of all federal, state, local and
other income and other taxes and any Excise Taxes applicable to the Gross-up
Payment; provided that, if such sum exceeds 0.75, it shall be deemed equal to
0.75 for purposes of this computation. (If different rates of tax are applicable
to various portions of a Gross-up Payment, the weighted average of such rates
shall be used.)

     7.5 Opinion of Counsel. "Executive Counsel Opinion" means a legal opinion
of nationally recognized executive compensation counsel who is counsel to the
Executive that there is a reasonable basis to support a conclusion that the
Gross-up Payment determined by the Executive has been calculated in accord with
this Article and applicable law. "Company Counsel Opinion" means a legal opinion
of nationally recognized executive compensation counsel who is counsel to the
Company that (a) there is a reasonable basis to support a conclusion that the
Gross-up Payment set forth of the Certificate of Company's independent

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<PAGE>   86

auditors has been calculated in accord with this Article and applicable law, and
(b) there is no reasonable basis for the calculation of the Gross-up Payment
determined by the Executive.

     7.6 Amount Increased or Contested. The Executive shall notify the Company
in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by the Company of a Gross-up Payment. Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid. The Executive shall give such notice as soon as practicable,
but no later than 10 business days, after the Executive first obtains actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such notice shall affect the Company's obligations under this Article
only if and to the extent that such failure results in actual prejudice to the
Company. The Executive shall not pay such claim less than 30 days after the
Executive gives such notice to the Company (or, if sooner, the date on which
payment of such claim is due). If the Company notifies the Executive in writing
before the expiration of such period that it desires to contest such claim, the
Executive shall:

         (a) give the Company any information that it reasonably requests
     relating to such claim,

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

         (c) cooperate with the Company in good faith to contest such claim, and

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax (to the extent not previously paid by the
Company to the Executive) or income tax, including related interest and
penalties, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing, the Company shall control all
proceedings in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner. The Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify the Executive, on an after-tax basis, for any Excise Tax or income
tax, including related interest or penalties, imposed with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. The Company's control of the contest shall be limited to
issues with respect to which a Gross-up Payment would be payable. The Executive

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<PAGE>   87

shall be entitled to settle or contest, as the case may be, any other issue
raised by the IRS or other taxing authority.

     7.7 Refunds. If, after the receipt by the Executive of an amount advanced
by the Company pursuant to Section 7.6, the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall (subject to
the Company's complying with the requirements of Section 7.6) promptly pay the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 7.6, a determination is
made that the Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify the Executive in writing of its intent to
contest such determination before the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-up Payment required to be paid. Any contest of a denial of
refund shall be controlled by Section 7.6.

                                  ARTICLE VIII.
                              EXPENSES AND INTEREST

     8.1 Legal Fees and Other Expenses.

         (a) If the Executive incurs legal, accounting and other fees or other
     expenses in a good faith effort to obtain benefits under this Agreement
     (including, without limitation, the fees and other expenses of the
     Executive's legal counsel, any expert witness fees and expenses, and
     accounting and other fees and expenses, including legal and accounting fees
     and expenses in connection with the delivery of the Executive Counsel
     Opinion referred to in Article VII), regardless of whether the Executive
     ultimately prevails, the Company shall reimburse the Executive on a monthly
     basis upon the written request for such fees and expenses to the extent not
     previously reimbursed under the Company's officers and directors liability
     insurance policy, if any. Simultaneously with each such payment Company
     shall pay Executive an amount such that after payment of incremental United
     States federal, state and local income, excise and other taxes payable by
     Executive ("Taxes") with respect to such tax reimbursement, there remains a
     balance sufficient to pay the Taxes on the reimbursement of such fees and
     expenses. The existence of any controlling case or regulatory law which is
     directly inconsistent with the position taken by the Executive shall be
     evidence that the Executive did not act in good faith. Executive's payment
     of such fees and expenses shall be a conclusive determination with respect
     to the Company that such fees and expenses are reasonable.

         (b) Reimbursement of legal fees and expenses shall be made monthly upon
     the written submission of a request for reimbursement together with
     evidence that such fees and expenses are due and payable or were paid by
     the Executive. If the Company shall have reimbursed the Executive for legal
     fees and expenses and it is later determined that the Executive was not
     acting in good faith, all amounts paid on behalf of, or reimbursed to, the
     Executive shall be promptly refunded to the Company.

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<PAGE>   88

         (c) To secure its obligations under this Section 8.1 the Company shall
     procure and maintain in force during the Agreement Term and thereafter for
     one (1) year or if longer until the termination (by final judgment and
     after all rights of appeal have been exhausted or waived) of any litigation
     involving a good faith effort of an Executive to obtain benefits under this
     Agreement, a letter of credit and an escrow in favor of Executive (together
     with other executives similarly situated). The letter of credit shall be
     issued by a bank or trust company organized under the laws of the United
     States or Canada or a state or province thereof and having a combined
     capital and surplus of not less than one hundred million dollars
     ($100,000,000), shall be in the aggregate amount of five hundred thousand
     dollars ($500,000) prior to July 1, 2001, and in the aggregate amount of
     two million dollars $2,000,000) on and after July 1, 2001, and shall be
     substantially in the form of that attached (with its attached Annexes and
     Exhibits) to this Agreement as Exhibit A. The escrow shall be maintained in
     the state of Illinois under an escrow agreement with a bank or trust
     company organized under the laws of the United States or Canada or a state
     or province thereof and having a combined capital and surplus of not less
     than one hundred million dollars ($100,000,000), and shall be substantially
     in the form of that attached (with its attached Exhibits) to this Agreement
     as Exhibit B.

     8.2 Interest. If the Company does not pay any amount due to the Executive
under this Agreement within three days after such amount became due and owing,
interest shall accrue on such amount from the date it became due and owing until
the date of payment at a annual rate equal to two percent (2.0%) above the base
commercial lending rate announced by the Company's principal revolving credit
lender in effect from time to time during the period of such nonpayment; or, if
the Company does not have a principal revolving credit lender, then at two
percent (2.0%) above the prime rate of interest in effect from time to time
during the period of such nonpayment, as reported from time to time in the Wall
Street Journal; but in no case greater than the maximum rate of interest
permitted by applicable law.

                                   ARTICLE IX.
                            NO SET-OFF OR MITIGATION

     9.1 No Set-off or Defenses by Company. The Executive's right to receive
when due the payments and other benefits provided for under this Agreement is
absolute, unconditional and shall not be subject to any set-off, counterclaim or
legal or equitable defense. The exclusive method for the Company to avoid
payments to the Executive under this Agreement, to the extent specified in this
Agreement, is to terminate Executive's employment for Cause pursuant to Sections
4.3 and 5.2 of this Agreement. Time is of the essence in the performance by the
Company of its obligations under this Agreement. Any claim which the Company may
have against the Executive, whether for a breach of this Agreement or otherwise,
shall be brought in a separate action or proceeding and not as part of any
action or proceeding brought by the Executive to enforce any rights against the
Company under this Agreement.

     9.2 No Mitigation. The Executive shall not have any duty to mitigate the
amounts payable by the Company under this Agreement by seeking new employment
following termination. Except as specifically otherwise provided in this
Agreement, all amounts payable pursuant to this Agreement shall be paid without
reduction regardless of any amounts of salary,

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<PAGE>   89

compensation or other amounts which may be paid or payable to the Executive as
the result of the Executive's employment by another employer.

                                   ARTICLE X.
                       CONFIDENTIALITY AND NONCOMPETITION

     10.1 Confidentiality. Executive acknowledges that it is the policy of the
Company and its subsidiaries to maintain as secret and confidential all valuable
and unique information and techniques acquired, developed or used by the Company
and its Subsidiaries relating to their business, operations, employees and
customers, which gives the Company and its subsidiaries a competitive advantage
in the construction and engineering industry and other businesses in which the
Company and its subsidiaries are engaged ("Confidential Information"). Executive
recognizes that all such Confidential Information is the sole and exclusive
property of the Company and its Subsidiaries, and that disclosure of
Confidential Information would cause damage to the Company and its Subsidiaries.
Executive agrees that, except as required by the duties of his employment with
the Company and/or its Subsidiaries and except in connection with enforcing the
Executive's rights under this Agreement or if compelled by a court or
governmental agency, he will not, without the consent of the Company,
disseminate or otherwise disclose any Confidential Information obtained during
his employment with the Company and/or its Subsidiaries for so long as such
information is valuable and unique.

     10.2 Noncompetition/Nonsolicitation.

         (a) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive will not at any time directly or indirectly, in any capacity,
     engage or participate in, or become employed by or render advisory or
     consulting or other services in connection with any Prohibited Business as
     defined in Section 10.2(d).

         (b) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive shall not make any financial investment, whether in the form of
     equity or debt, or own any interest, directly or indirectly, in any
     Prohibited Business. Nothing in this Section 10.2(b) shall, however,
     restrict Executive from making any investment in any company whose stock is
     listed on a national securities exchange or actively traded in the
     over-the-counter market; provided that (1) such investment does not give
     Executive the right or ability to control or influence the policy decisions
     of any Prohibited Business, and (2) such investment does not create a
     conflict of interest between Executive's duties hereunder and Executive's
     interest in such investment.

         (c) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive shall not (1) employ any employee of the Company and/or its
     Subsidiaries or (2) interfere with the Company's or any of its

                                      -23-

<PAGE>   90

     Subsidiaries' relationship with, or endeavor to entice away from the
     Company and/or its Subsidiaries any person, firm, corporation, or other
     business organization who or which at any time (whether before or after the
     date of Executive's termination of employment), was an employee, customer,
     vendor or supplier of, or maintained a business relationship with, any
     business of the Company and/or its Subsidiaries which was conducted at any
     time during the period commencing one year prior to the termination of
     employment.

         (d) For the purpose of this Section 10.2, "Prohibited Business" shall
     be defined as any construction and engineering business specializing in the
     engineering and design, materials procurement, fabrication, erection,
     repair and modification of steel tanks and other steel plate structures and
     associated systems and any branch, office or operation thereof, which is a
     direct and material competitor of the Company wherever the Company does
     business, including the Netherlands, the United States and any other
     country.

     10.3 Remedy. Executive and the Company specifically agree that, in the
event that Executive shall breach his obligations under this Article X, the
Company and its Subsidiaries will suffer irreparable injury and no adequate
remedy for such breach, and shall be entitled to injunctive relief therefor, and
in particular, without limiting the generality of the foregoing, the Company
shall not be precluded from pursuing any and all remedies it may have at law or
in equity for breach of such obligations; provided, however, that such breach
shall not in any manner or degree whatsoever limit, reduce or otherwise affect
the obligations of the Company under this Agreement, and in no event shall an
asserted breach of the Executive's obligations under this Article X constitute a
basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement.

                                   ARTICLE XI.
                                  MISCELLANEOUS

     11.1 No Assignability. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

     11.2 Successors. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to assume expressly and agree to perform this Agreement.
Any successor to the business and/or assets of the Company which assumes and
agrees to perform this Agreement by operation of law, contract, or otherwise
shall be jointly and severally liable with the Company under this Agreement.

     11.3 Payments to Beneficiary. If the Executive dies before receiving
amounts to which the Executive is entitled under this Agreement, such amounts
shall be paid as soon as administratively practicable in a lump sum to the
beneficiary designated in writing by the Executive, or if none is so designated,
to the Executive's estate.

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<PAGE>   91

     11.4 Non-alienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

     11.5 Severability. If any one or more articles, sections or other portions
of this Agreement are declared by any court or governmental authority to be
unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any article, section or other portion not so declared to be unlawful
or invalid. Any article, section or other portion so declared to be unlawful or
invalid shall be construed so as to effectuate the terms of such article,
section or other portion to the fullest extent possible while remaining lawful
and valid.

     11.6 Amendments. Except as provided in Section 2.2 hereof, this Agreement
shall not be altered, amended or modified except by written instrument executed
by the Company and Executive.

     11.7 Notices. All notices and other communications under this Agreement
shall be in writing and delivered by hand or by first class registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

             If to the Executive:

             Mr. Stephen M. Duffy
             15117 Ginger Creek Lane
             Orland Park, Illinois  60467

             If to the Company (including any or all of CBICNV, CBIC or CBICD):

             Chicago Bridge & Iron Company
             1501 North Division Street
             Plainfield, Illinois  60544
             Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing. Notice and communications shall be effective when actually received by
the addressee.

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

     11.9 Governing Law. This Agreement shall be interpreted and construed in
accordance with the laws of the State of Illinois, without regard to its choice
of law principles.

     11.10 Captions. The captions of this Agreement are not a part of the
provisions hereof and shall have no force or effect.

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<PAGE>   92

     11.11 Tax Withholding. The Company may withhold from any amounts payable
under this Agreement any federal, state or local taxes that are required to be
withheld pursuant to any applicable law or regulation.

     11.12 Joint and Several Obligations. The obligations of the Company under
this Agreement are joint and several obligations of CBICNV, CBIC and CBICD;
provided, however, that each of CBICNV, CBIC and CBICD may agree between
themselves but without adversely affecting the rights of the Executive which of
them shall provide any particular payment or benefit under this Agreement.

     11.13 No Waiver. The Executive's failure to insist upon strict compliance
with any provision of this Agreement shall not be deemed a waiver of such
provision or any other provision of this Agreement. A waiver of any provision of
this Agreement shall not be deemed a waiver of any other provision, and any
waiver of any default in any such provision shall not be deemed a waiver of any
later default thereof or of any other provision.

     11.14 Prior Agreement. The Change of Control Severance Agreement dated
March 4, 1999, between CBIC and the Executive is hereby terminated effective on
the date of this Agreement.

     11.15 Entire Agreement. This Agreement contains the entire understanding of
the Company and the Executive with respect to its subject matter and supercedes
any prior change of control severance agreement and any Change of Control
severance benefit provisions in any prior employment agreement between the
Company and the Executive.

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<PAGE>   93

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

                                  EXECUTIVE

                                  /s/ Stephen M. Duffy
                                  ----------------------------------------------
                                  Stephen M. Duffy

                                  CHICAGO BRIDGE & IRON COMPANY N.V.

                                  By:  /s/ Gerald M. Glenn
                                       -----------------------------------------
                                  Title: Managing Director
                                         ---------------------------------------

                                  CHICAGO BRIDGE & IRON COMPANY

                                  By:  /s/ Robert B. Jordan
                                       -----------------------------------------
                                  Title:
                                         ---------------------------------------

                                  CHICAGO BRIDGE & IRON COMPANY (DELAWARE)

                                  By:   /s/ Timothy J. Wiggins
                                       -----------------------------------------
                                  Title:
                                         ---------------------------------------

                                      -27-
<PAGE>   94

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

<PAGE>   95

                                TABLE OF CONTENTS

<TABLE>
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ARTICLE I. PURPOSES...............................................................................................1

ARTICLE II. CERTAIN DEFINITIONS...................................................................................1
   2.1     "Accrued Obligations"..................................................................................1
   2.2     "Agreement Term".......................................................................................1
   2.3     "Affiliate" ...........................................................................................2
   2.4     "Article"..............................................................................................2
   2.5     "Beneficial Owner".....................................................................................2
   2.6     "Board"................................................................................................2
   2.7     "Cause"................................................................................................2
   2.8     "Change of Control"....................................................................................2
   2.9     "Code".................................................................................................3
   2.10    "Deferral Plan"........................................................................................3
   2.11    "Disability"...........................................................................................4
   2.12    "Effective Date".......................................................................................4
   2.13    "Good Reason"..........................................................................................4
   2.14    "Gross-up Payment".....................................................................................4
   2.15    "Growth Transaction"...................................................................................4
   2.16    "Imminent Control Change Date".........................................................................4
   2.17    "IRS"..................................................................................................4
   2.18    "1934 Act".............................................................................................4
   2.19    "Notice of Termination"................................................................................4
   2.20    "Plans"................................................................................................5
   2.21    "Policies".............................................................................................5
   2.22    "Post-Change Period"...................................................................................5
   2.23    "Present Value"........................................................................................5
   2.24    "SEC"..................................................................................................5
   2.25    "Section"..............................................................................................5
   2.26    "SERP".................................................................................................5
   2.27    "Shareholder Agreement"................................................................................5
   2.28    "Subsidiary"...........................................................................................5
   2.29    "Termination Date" ....................................................................................5
   2.30    "Transaction Owner"....................................................................................6
   2.31    "Voting Securities"....................................................................................6

ARTICLE III. POST-CHANGE PERIOD PROTECTIONS.......................................................................6
   3.1     General................................................................................................6
   3.2     Position and Duties....................................................................................6
   3.3     Compensation...........................................................................................7
   3.4     Pro-Rata Bonus Payment.................................................................................9
   3.5     Equity Awards Vesting.................................................................................10
   3.6     Nonqualified Deferred Compensation....................................................................10
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<PAGE>   96
                                TABLE OF CONTENTS
                                   (CONTINUED)
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ARTICLE IV. TERMINATION OF EMPLOYMENT............................................................................11
   4.1     Disability............................................................................................11
   4.2     Death.................................................................................................11
   4.3     Cause.................................................................................................11
   4.4     Good Reason...........................................................................................13

ARTICLE V. OBLIGATIONS OF THE COMPANY UPON TERMINATION...........................................................14
   5.1     If  by the Executive for Good Reason or by the Company Other Than for Cause or Disability.............14
   5.2     If by the Company for Cause...........................................................................16
   5.3     If by the Executive Other Than for Good Reason........................................................17
   5.4     If by the Company for Disability......................................................................17
   5.5     If upon Death.........................................................................................17

ARTICLE VI. NON-EXCLUSIVITY OF RIGHTS............................................................................17
   6.1     Waiver of Other Severance Rights......................................................................17
   6.2     Other Rights..........................................................................................17

ARTICLE VII. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY..........................................................18
   7.1     Gross-up for Certain Taxes............................................................................18
   7.2     Determination by the Executive........................................................................18
   7.3     Additional Gross-up Amounts...........................................................................19
   7.4     Gross-up Multiple.....................................................................................19
   7.5     Opinion of Counsel....................................................................................19
   7.6     Amount Increased or Contested.........................................................................20
   7.7     Refunds...............................................................................................21

ARTICLE VIII. EXPENSES AND INTEREST..............................................................................21
   8.1     Legal Fees and Other Expenses.........................................................................21
   8.2     Interest..............................................................................................22

ARTICLE IX. NO SET-OFF OR MITIGATION.............................................................................22
   9.1     No Set-off or Defenses by Company.....................................................................22
   9.2     No Mitigation.........................................................................................22

ARTICLE X. CONFIDENTIALITY AND NONCOMPETITION....................................................................23
   10.1    Confidentiality.......................................................................................23
   10.2    Noncompetition/Nonsolicitation........................................................................23
   10.3    Remedy................................................................................................24

ARTICLE XI. MISCELLANEOUS........................................................................................24
   11.1    No Assignability......................................................................................24
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                                TABLE OF CONTENTS
                                   (CONTINUED)
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   11.2    Successors............................................................................................24
   11.3    Payments to Beneficiary...............................................................................24
   11.4    Non-alienation of Benefits............................................................................25
   11.5    Severability..........................................................................................25
   11.6    Amendments............................................................................................25
   11.7    Notices...............................................................................................25
   11.8    Counterparts..........................................................................................25
   11.9    Governing Law.........................................................................................25
   11.10   Captions..............................................................................................25
   11.11   Tax Withholding.......................................................................................26
   11.12   Joint and Several Obligations.........................................................................26
   11.13   No Waiver.............................................................................................26
   11.14   Prior Agreement.......................................................................................26
   11.15   Entire Agreement......................................................................................26
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                                     -iii-

<PAGE>   98

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

     THIS AGREEMENT dated as of October 13, 2000 is made among CHICAGO BRIDGE &
IRON COMPANY N.V. ("CBICNV"), a Netherlands corporation, CHICAGO BRIDGE & IRON
COMPANY, a Delaware corporation ("CBIC"), CHICAGO BRIDGE & IRON COMPANY
(DELAWARE), a Delaware corporation ("CBICD" and, together with CBICNV and CBIC,
the "Company"), each having its principal place of business in Plainfield,
Illinois, and Robert B. Jordan (the "Executive"), a resident of Illinois.

                                    ARTICLE I
                                    PURPOSES

     The Supervisory Board of CBICNV has determined that it is in the best
interests of the Company and its stockholders to assure that the Company will
have the continued service of the Executive, despite the possibility or
occurrence of a change of control of the Company. The Board believes it is
imperative to reduce the distraction of the Executive that would result from the
personal uncertainties caused by a pending or threatened change of control, to
encourage the Executive's full attention and dedication to the Company, and to
provide the Executive with compensation and benefits arrangements upon a change
of control which ensure that the expectations of the Executive will be satisfied
and are competitive with those of similarly-situated corporations. This
Agreement is intended to accomplish these objectives.

                                   ARTICLE II
                               CERTAIN DEFINITIONS

     When used in this Agreement, the terms specified below shall have the
following meanings:

     2.1 "Accrued Obligations" has the meaning defined for that term in Section
5.3.

     2.2 "Agreement Term" means the period commencing on the date of this
Agreement and ending on the date which is thirty-six (36) months following the
date of this Agreement ("Expiration Date"); provided, however, that the
Agreement Term shall be extended as follows: (a) if neither the Company nor the
Executive gives written notice to the other pursuant to Section 11.7 that this
Agreement shall not be renewed ("Notice of Nonrenewal") within two years from
the date of this Agreement, the Agreement Term shall be extended to an
Expiration Date which shall be the first annual anniversary of the date a Notice
of Nonrenewal is given; (b) if an Imminent Control Change Date occurs before the
Expiration Date (as it may be extended under clause (a) above), then no Notice
of Nonrenewal shall thereafter be effective and the Agreement Term shall
automatically extend to an Expiration Date which is twelve (12) months after the
Imminent Change of Control Date, as further extended under the terms of this
clause should another Imminent Change of Control Date, occur prior to the
Expiration Date as from time to time so extended, and (c) if a Change of Control
occurs before the Expiration Date (as extended

                                       -1-

<PAGE>   99

under clause (a) or (b) above or this clause (c)), the Expiration Date shall
automatically be extended to the last day of the Post-Change Period as the
Post-Change Period may be extended as provided in Section 2.22

     2.3 "Affiliate" means an "affiliate" or "associate" as those terms are
defined in Rule 12b-2 under the 1934 Act.

     2.4 "Article" means an article of this Agreement.

     2.5 "Beneficial Owner" means such term as defined in Rule 13d-3 of the SEC
under the 1934 Act.

     2.6 "Board" means the Supervisory Board of Chicago Bridge & Iron Company
N.V.

     2.7 "Cause" has the meaning defined for that term in Section 4.3(b).

     2.8 "Change of Control" means, except as otherwise provided below, the
occurrence of any of the following:

         (a) any person (as such term is used in Rule 13d-5 of the SEC under the
     1934 Act) or group (as such term is defined in Section 13(d) of the 1934
     Act), other than a Subsidiary or any employee benefit plan (or any related
     trust) of the Company or a Subsidiary, becomes the Beneficial Owner of 25%
     or more of the common shares of any of CBICNV, CBIC or CBICD or of other
     Voting Securities representing 25% or more of the combined voting power of
     all Voting Securities of any of CBICNV, CBIC or CBICD; provided, however,
     that (i) no Change of Control shall be deemed to have occurred solely by
     reason of any such acquisition by a corporation with respect to which,
     after such acquisition, more than 75% of both the common shares or common
     stock of such corporation and the combined voting power of the Voting
     Securities of such corporation are then beneficially owned, directly or
     indirectly, by the persons who were the Beneficial Owners of the common
     shares and other Voting Securities of CBICNV, CBIC or CBICD immediately
     before such acquisition, in substantially the same proportion as their
     ownership of the common shares and other Voting Securities of CBICNV, CBIC
     or CBICD, as the case may be, immediately before such acquisition; and (ii)
     once a Change of Control occurs under this subsection (a), the occurrence
     of the next Change of Control (if any) under this subsection (a) shall be
     determined by reference to a person or group other than the person or group
     whose acquisition of Beneficial Ownership created such prior Change of
     Control unless the original person or group has in the meantime ceased to
     own 25% or more of the common shares of all of CBICNV, CBIC or CBICD or
     other Voting Securities representing 25% or more of the combined voting
     power of all Voting Securities of all of CBICNV, CBIC or CBICD; or

         (b) individuals who, as of the date of this Agreement or as of any
     Effective Date thereafter, are Supervisory Directors of CBICNV (the
     "Incumbent Directors") cease for any reason to constitute at least 50% of
     the members of the Board; provided, however, that (i) any individual who
     becomes a Supervisory Director after the Effective Date whose binding
     nomination for election to the Board by the general meeting of shareholders
     was approved by a vote or written consent of at least 75% of the

                                      -2-

<PAGE>   100

     Supervisory Directors who are then Incumbent Directors shall be considered
     an Incumbent Director, but excluding, for this purpose, any such individual
     whose initial assumption of office is in connection with an actual or
     threatened election contest relating to the election of the directors of
     the Company (as such terms are used in Rule 14a-11 of the SEC under the
     1934 Act); and (ii) once a Change of Control occurs under this subsection
     (b), the occurrence of the next Change of Control (if any) under this
     subsection (b) shall be determined by reference to the individuals who were
     Incumbent Directors immediately after the Effective Date of such prior
     Change of Control; or

         (c) approval by the Board, or by the shareholders of CBICNV, CBIC or
     CBICD, of any of the following:

              (i) a merger, reorganization or consolidation of CBICNV, CBIC or
         CBICD ("Merger"), other than a Merger after which the individuals and
         entities who were the respective beneficial owners of the common shares
         and other Voting Securities of CBICNV, CBIC or CBICD (as the case may
         be) immediately before such Merger beneficially own, directly or
         indirectly, more than 75% of, respectively, the common shares or common
         stock and the combined voting power of the Voting Securities of the
         corporation resulting from such Merger, in substantially the same
         proportion as their ownership of the common shares or common stock and
         other Voting Securities of CBICNV, CBIC or CBICD (as the case may be)
         immediately before such Merger, or

              (ii) a sale or other disposition by any of CBICNV, CBIC or CBICD
         of all or substantially all of the assets owned by it, or

              (iii) any transaction as a result of which CBICNV would not
         thereafter directly or indirectly own beneficially at least 75% of the
         common stock of CBIC or as a result of which CBIC would not thereafter
         directly or indirectly own beneficially at least 75% of the common
         stock of CBICD, unless after either such transaction CBICNV continues
         to own directly or indirectly substantially all of the pre-transaction
         assets of both CBIC and CBICD.

         (d) if a Growth Transaction previously occurred, any Transaction Owner
     individually, or Transaction Owners collectively:

              (i) materially breach(es) any provision of any shareholder
         agreement to which CBICNV and such Transaction Owner(s) are parties
         that addresses the governance of CBICNV following the Growth
         Transaction; or

              (ii) become(s) the Beneficial Owner of more than 66.5% of the
         common shares of any of CBICNV, CBIC or CBICD or of other Voting
         Securities representing more than 66.5% of the combined voting power of
         all Voting Securities of any of CBICNV, CBIC or CBICD.

     2.9 "Code" means the Internal Revenue Code of 1986, as amended.

     2.10 "Deferral Plan" has the meaning defined for that term in Section 3.6.

                                      -3-

<PAGE>   101

     2.11 "Disability" has the meaning defined for that term in Section 4.1(b).

     2.12 "Effective Date" means each date on which a Change of Control occurs
during the Agreement Term; provided, however, that if the Company terminates the
Executive's employment before the date of a Change of Control, and if the
Executive reasonably demonstrates that such termination of employment (a) was at
the request of a third party who had taken steps reasonably calculated to effect
the Change of Control or (b) otherwise arose in connection with or anticipation
of the Change of Control, then "Effective Date" shall mean the date immediately
before the date of such termination of employment.

     2.13 "Good Reason" has the meaning defined for that term in Section 4.4(b).

     2.14 "Gross-up Payment" has the meaning defined for that term in Section
7.1.

     2.15 "Growth Transaction" means (i) the acquisition by Wedge Group
Incorporated ("WGI"), a Delaware corporation, First Reserve Fund VIII, L.P.
("FRF"), a Delaware limited partnership, or Pitt-Des Moines, Inc. ("PDM"), a
Pennsylvania corporation, or their Affiliates, of common shares or other Voting
Securities of CBICNV as contemplated by an agreement with CBICNV for the
acquisition by CBICNV or an Affiliate of Howe-Baker International, Inc. from WGI
(the "HBI Transaction") or for the acquisition of the PDM Engineered
Construction Division and Water Division from PDM (the "PDM Transaction"); (ii)
the acquisition by a person (other than by public offering) of common shares or
other Voting Securities of CBICNV from CBICNV as part of an arrangement for
financing the HBI Transaction or the PDM Transaction; (iii) the acquisition by a
person of common shares or other Voting Securities of CBICNV from a previous
Transaction Owner if the person acquiring such common shares or other Voting
Securities is or becomes a party to a Shareholder Agreement with CBICNV that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner; or (iv) a transfer of common shares or other
Voting Securities of CBICNV from one Transaction Owner to another Transaction
Owner if the acquiring Transaction Owner is subject with respect to such shares
or other Voting Securities to either a preexisting Shareholder Agreement between
CBICNV and the acquiring Transaction Owner or a Shareholder Agreement that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner. However, a "Growth Transaction" will not include
any event described in Section 2.8(d).

     2.16 "Imminent Control Change Date" means any date on which occurs (a) a
presentation to the Company's shareholders generally or any of the Company's
directors or executive officers of a proposal or offer for a Change of Control,
or (b) the public announcement (whether by advertisement, press release, press
interview, public statement, SEC filing or otherwise) of a proposal or offer for
a Change of Control, or (c) such proposal or offer remains effective and
unrevoked.

     2.17 "IRS" means the Internal Revenue Service.

     2.18 "1934 Act" means the Securities Exchange Act of 1934, as amended.

     2.19 "Notice of Termination" means a written notice given in accordance
with Section 11.7 which sets forth (a) the specific termination provision in
this Agreement relied upon

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<PAGE>   102

by the party giving such notice, (b) in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under such termination provision and (c) if the Termination Date is
other than the date of receipt of such Notice of Termination, the Termination
Date.

     2.20 "Plans" means plans, programs, policies or practices of the Company or
any of its Subsidiaries.

     2.21 "Policies" means policies, practices or procedures of the Company or
any of its Subsidiaries.

     2.22 "Post-Change Period" means the period commencing on each Effective
Date and ending on the third annual anniversary of such Effective Date. If a new
Change of Control creates a new Effective Date during any current Post-Change
Period, the Post-Change Period shall be extended to the third annual anniversary
of such new Effective Date; and shall be further extended upon each new
Effective Date during the Post-Change Period as extended.

     2.23 "Present Value" means the present value, determined using (a) the
actuarial assumptions published by the Pension Benefit Guaranty Corporation
("PBGC") for determining immediate annuity values, as in effect on the first day
of the calendar year in which any payment of present value is required, or (b)
if no such actuarial assumptions are published by the PBGC, using the mortality
assumptions of the UP-84 group mortality table and an interest rate assumption
which is the lesser of (i) 75% of the current 30-year Treasury bond rate or (ii)
the current 30-year Treasury bond rate minus 150 basis points.

     2.24 "SEC" means the Securities and Exchange Commission.

     2.25 "Section" means, unless the context otherwise requires, a section of
this Agreement.

     2.26 "SERP" has the meaning defined for that term in Section 3.6.

     2.27 "Shareholder Agreement" means an agreement between CBICNV and a person
that limits the ability of such person and its Affiliates to obtain and exercise
control over the management and policies of the CBICNV.

     2.28 "Subsidiary" means a corporation as defined in Section 424(f) of the
Code (with the Company being treated as the employer corporation for purposes of
this definition) and any partnership or limited liability company in which the
Company or any Subsidiary has a direct or indirect interest (whether in the form
of voting power or participation in profits or capital contribution) of 50% or
more.

     2.29 "Termination Date" means the date of receipt of the Notice of
Termination or any later date specified in such notice (which date shall be not
more than 15 days after the giving of such notice), as the case may be;
provided, however, that (a) if the Company terminates the Executive's employment
other than for Cause or Disability, then the Termination Date shall be the date
of receipt of such Notice of Termination and (b) if the Executive's employment
is terminated by reason of death or Disability, then the Termination Date shall
be the date of death

                                      -5-

<PAGE>   103

of the Executive or the Disability Effective Date (as defined in Section
4.1(a)), as the case may be.

     2.30 "Transaction Owner" means a person who acquires common shares or other
Voting Securities of CBICNV in a Growth Transaction, or any Affiliate of such
person.

     2.31 "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors of
such corporation.

                                  ARTICLE III.
                         POST-CHANGE PERIOD PROTECTIONS

     3.1 General. On the Effective Date and during the Post-Change Period
thereafter the Company shall make the payments, provide the benefits and fulfill
the other obligations required by this Article III. However, if , such Effective
Date and Post-Change Period result solely from a Growth Transaction:

         (a) Section 3.3(b) shall not apply except for purposes of determining
     the obligations of the Company on termination pursuant to Section 5.1, and
     to the extent provided in Section 4.4(b)(iii) and as modified thereby, in
     determining the existence of Good Reason;

         (b) clause (ii) of each of Sections 3.3(c) through 3.3(h) shall not
     apply except for purposes of determining the obligations of the Company on
     termination pursuant to Section 5.1; but the aggregate value to the
     Executive of all Plans, fringe benefits and arrangements described in
     Sections 3.3(c) through 3.3(h) shall not be less favorable, in the
     aggregate, than the aggregate value to the Executive of such Plans, fringe
     benefits and arrangements provided by the Company to the Executive or peer
     executives at any time during the 90-day period immediately before such
     Effective Date; and

         (c) Sections 3.4, 3.5, and 3.6 shall not apply on such Effective Date;
     but to the extent such vesting or payment is not otherwise required by
     Section 5.1, Sections 3.4, 3.5 and 3.6, shall apply to the Executive on the
     Termination Date (as if such Sections referred to the "Termination Date"
     instead of the "Effective Date") if during the Post-Change Period the
     Company shall terminate Executive's employment other than for Cause, or if
     the Executive shall terminate employment for Good Reason, or if employment
     terminates as a result of Disability or death.

     3.2 Position and Duties.

         (a) During the Post-Change Period, (1) the Executive's position
     (including offices, titles, reporting requirements and responsibilities),
     authority and duties shall be at least commensurate in all material
     respects with the most significant of those held by, exercised by, or
     assigned to the Executive at any time during the 90-day period immediately
     before the Effective Date and (2) the Executive's services shall be
     performed at the location where the Executive was employed immediately
     before the Effective Date or any other location less than 40 miles from
     such former location.

                                      -6-
<PAGE>   104

         (b) During the Post-Change Period (other than any periods of vacation,
     sick leave, disability leave or other family or medical leave to which the
     Executive is entitled), the Executive shall devote his or her full
     attention and time to the business and affairs of the Company and, to the
     extent necessary to discharge the duties assigned to the Executive in
     accordance with this Agreement, shall use his or her best efforts to
     perform such duties faithfully and efficiently. During the Post-Change
     Period, the Executive may (1) serve on corporate, civic or charitable
     boards or committees, (2) deliver lectures, fulfill speaking engagements or
     teach at educational institutions and (3) manage personal investments, so
     long as such activities are consistent with the Policies of the Company or
     its Subsidiaries at the Effective Date and do not significantly interfere
     with the performance of the Executive's duties under this Agreement. To the
     extent that any such activities have been conducted by the Executive before
     the Effective Date and were consistent with the Policies of the Company or
     its Subsidiaries at the Effective Date, the continued conduct of such
     activities (or activities similar in nature and scope) after the Effective
     Date shall not be deemed to interfere with the performance of the
     Executive's duties under this Agreement.

     3.3 Compensation.

         (a) Base Salary. During the Post-Change Period, the Company shall pay
     or cause to be paid to the Executive an annual base salary in cash
     ("Guaranteed Base Salary"), which shall be paid in a manner consistent with
     the Company's payroll practices in effect immediately before the Effective
     Date for such Post-Change Period, at a rate at least equal to the highest
     rate of annual salary paid or payable to the Executive by the Company at
     any time during the 12-month period immediately before such Effective Date.
     During the Post-Change Period, the Guaranteed Base Salary shall be reviewed
     at least annually and shall be increased at any time and from time to time
     as shall be substantially consistent with increases in base salary awarded
     to other peer executives of the Company. Any increase in Guaranteed Base
     Salary shall not limit or reduce any other obligation of the Company to the
     Executive under this Agreement. After any such increase, the Guaranteed
     Base Salary shall not be reduced and the term "Guaranteed Base Salary"
     shall thereafter refer to the increased amount.

         (b) Guaranteed Bonus.

              (i) During the Post-Change Period, the Company shall pay or cause
         to be paid to the Executive a bonus (the "Guaranteed Bonus") for each
         Performance Period which ends during the Post-Change Period.
         "Performance Period" means each period of time designated in accordance
         with any bonus arrangement ("Bonus Plan") which is based upon
         performance and approved by the Board or by any committee of the Board.
         For purposes of this Section 3.3, a Bonus Plan includes, without
         limitation, the Company's Incentive Compensation Plan as in effect on
         the date hereof or any similar plan, but does not include the Company's
         1997 or 1999 Long-Term Incentive Plan (an "LTIP") or any similar plan
         under which equity awards described Section 3.5 are granted, unless
         failure to consider the LTIP a Bonus Plan would leave the Company
         without any Bonus Plan covering Executive. The Guaranteed Bonus shall
         be at least equal to the product

                                      -7-

<PAGE>   105

         of (A) the greater of (i) the On Plan Percentage (as defined below), or
         (ii) the Actual Bonus Percentage (as defined below), multiplied by (B)
         the Guaranteed Base Salary.

              (ii) For purposes of this Section 3.3(b):

                        (A) "On Plan Percentage" means the percentage of
                   Guaranteed Base Salary to which the Executive would be
                   entitled under the Bonus Plan(s) for the Performance Period
                   for which the Guaranteed Bonus is awarded ("Current
                   Performance Period") if performance achieved 100% of the
                   target performance goals established pursuant to such Bonus
                   Plan(s); or, if greater, the percentage of Guaranteed Base
                   Salary to which Executive would have been entitled under the
                   Bonus Plan(s) for the Performance Period ending immediately
                   prior to the Post-Change Period if performance achieved 100%
                   of the performance goals established pursuant to such Bonus
                   Plan(s) for such prior Performance Period.

                        (B) "Actual Bonus Percentage" means the percentage of
                   Guaranteed Base Salary for the Current Performance Period to
                   which the Executive would be entitled under any Bonus Plan if
                   the performance were measured by the actual performance
                   during the Current Performance Period; provided, however,
                   that for purposes of determining the Guaranteed Bonus for
                   purposes of Sections 3.4 and 5.1(b), "Actual Bonus
                   Percentage" means the percentage of Guaranteed Base Salary
                   for the Performance Period during which the Effective Date
                   (for purposes of Section 3.4) or Termination Date (for
                   purposes of Section 5.1(b)) occurs to which the Executive
                   would be entitled if the performance during such Performance
                   Period were measured by the actual performance during the
                   portion of such Performance Period before the Effective Date
                   or the Termination Date (whichever is applicable), projected
                   to the last day of such Performance Period.

              (c) Incentive, Savings and Retirement Plans. During the
         Post-Change Period and notwithstanding the payment required by Section
         3.6, (i) the Executive shall be entitled to continue to participate in
         all incentive (including long-term incentives and management stock
         plans), savings, deferred compensation, retirement and benefit
         restoration Plans provided by the Company and applicable to other peer
         executives of the Company, but (ii) in no event shall such Plans
         provide the Executive with incentive (including long-term incentives
         and management stock benefits), savings, deferred compensation,
         retirement and benefit restoration benefits which, in any case, are
         less favorable, in the aggregate, than the most favorable of those
         provided by the Company to the Executive or to peer executives under
         such Plans as in effect at any time during the 90-day period
         immediately before any Effective Date.

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<PAGE>   106

         (d) Welfare Benefit Plans. During the Post-Change Period, (i) the
     Executive and the Executive's family shall be eligible to participate in,
     and receive all benefits under, welfare benefit Plans (including, without
     limitation, medical, prescription, dental, disability, salary continuance,
     individual life, group life, dependent life, accidental death and travel
     accident insurance Plans) provided by the Company and applicable to other
     peer executives of the Company and their families, but (ii) in no event
     shall such Plans provide benefits which in any case are less favorable, in
     the aggregate, than the most favorable of those provided by the Company to
     the Executive or to peer executives under such Plans as in effect at any
     time during the 90-day period immediately before any Effective Date.

         (e) Fringe Benefits. During the Post-Change Period, (i) the Executive
     shall be entitled to fringe benefits (including, without limitation, any
     foreign service travel and housing allowances for Executive and the
     Executive's family under Plans or Policies of the Company for foreign
     service) in accordance with the most favorable Plans provided by the
     Company and applicable to other peer executives of the Company, but (ii) in
     no event shall such Plans provide fringe benefits which in any case are
     less favorable, in the aggregate, than the most favorable of those provided
     by the Company to the Executive or peer executives under such Plans in
     effect at any time during the 90-day period immediately before any
     Effective Date.

         (f) Expenses. During the Post-Change Period, (i) the Executive shall be
     entitled to prompt reimbursement of all reasonable employment-related
     expenses incurred by the Executive upon the Company's receipt of
     accountings in accordance with the most favorable Policies applicable to
     peer executives of the Company, but (ii) in no event shall such Policies be
     less favorable, in the aggregate, than the most favorable of those provided
     by the Company to the Executive or to peer executives under such Policies
     in effect at any time during the 90-day period immediately before any
     Effective Date.

         (g) Office and Support Staff. During the Post-Change Period, (i) the
     Executive shall be entitled to an office or offices of a size and with
     furnishings and other appointments, and to secretarial and other assistance
     in accordance with the most favorable Policies applicable to peer
     executives of the Company, but (ii) in no event shall such Policies be less
     favorable, in the aggregate, than the most favorable of those provided by
     the Company to the Executive or to peer executives under such Policies in
     effect at any time during the 90-day period immediately before any
     Effective Date.

         (h) Vacation. During the Post-Change Period, (i) the Executive shall be
     entitled to paid vacation in accordance with the most favorable Policies
     applicable to peer executives of the Company, but (ii) in no event shall
     such Policies be less favorable, in the aggregate, than the most favorable
     of those provided by the Company to the Executive or to peer executives
     under such Policies in effect at any time during the 90-day period
     immediately before any Effective Date.

     3.4 Pro-Rata Bonus Payment.

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     On each Effective Date the Company shall pay to Executive in a single lump
sum in cash the product of (A) the Guaranteed Bonus for the Performance Period
in which falls the Effective Date, multiplied by (B) a fraction, the numerator
of which is the number of days in such Performance Period before the Effective
Date, and the denominator of which is the total number of days in such
Performance Period. The amount of Guaranteed Bonus for such Performance Period
otherwise payable pursuant to Section 3.3(b), or otherwise payable pursuant to
this Section 3.4 by reason of a later Change of Control in the same Performance
Period, shall be reduced by any earlier payment made under this Section 3.4 for
the same Performance Period.

     3.5 Equity Awards Vesting.

     On the Effective Date, the Executive shall become fully vested in:

         (a) any and all outstanding options ("Options") to purchase common
     shares of the Company granted to Executive prior to the Effective Date
     under any Plan, contract or arrangement for Options, which Options shall
     become fully exercisable;

         (b) any outstanding shares of restricted common shares of the Company
     regardless whether such restrictions are scheduled to lapse based on
     service or on performance or both ("Restricted Stock") awarded to Executive
     under any Plan, contract or arrangement for Restricted Stock; which shall
     become unrestricted and freely transferable; and

         (c) any outstanding awards providing for the payment of a variable
     number of common shares of the Company dependent on the achievement of
     performance goals, or of an amount based on the fair market value of such
     shares or the appreciation thereof ("Performance Shares") awarded to
     Executive under any Plan, contract or arrangement for Performance Shares;
     and there shall be paid out in cash to Executive within 30 days following
     the Effective Date of the Change of Control the value of the Performance
     Shares to which Executive would have been entitled if performance achieved
     100% of the target performance goals established for such Performance
     Shares.

     To the extent that for any reason such Options, Restricted Stock and
Performance Shares do not become vested on the Effective Date, the Company shall
pay Executive a cash amount equal to (i) the positive difference, if any,
between the value of the shares of common stock subject to the Options that did
not become vested (or, if greater, the value paid or to be paid in connection
with the Change of Control to a holder of an equal number of shares of common
stock ("Change of Control Value")) and the Option exercise price with respect to
such shares, as of and on the date such Options are forfeited; plus (ii) the
fair market value (determined without regard to any restriction other than a
restriction which by its terms may never lapse) (or, if greater, the Change of
Control Value) of all non-vested forfeited Restricted Stock and Performance
Shares as of and on the date such Restricted Stock or Performance Shares are
forfeited. Nothing in this Section 3.5 shall require the vesting, or payment, of
equity awards granted after such Effective Date unless a new Effective Date has
intervened

     3.6 Nonqualified Deferred Compensation.

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<PAGE>   108

     On the Effective Date Executive shall become fully vested in and the
Company shall pay to Executive in a single lump sum in cash (1) the value of
Executive's then-accrued benefits, if any, which remain unpaid under any
nonqualified deferred compensation, benefit restoration, excess benefit or other
individual account plan, contract or arrangement for deferred compensation
maintained by the Company under which benefits are calculated by reference to an
individual account (a "Deferral Plan"), and (2) the Present Value of Executive's
then-accrued benefits, if any, which remain unpaid under any nonqualified
supplemental executive retirement plan or other plan, contract or arrangement
for retirement benefits maintained by the Company under which benefits are
calculated by reference to a defined amount payable in connection with or after
retirement or other termination of employment an (a "SERP").

                                   ARTICLE IV.
                            TERMINATION OF EMPLOYMENT

     4.1 Disability.

         (a) During the Post-Change Period, the Company may terminate the
     Executive's employment upon the Executive's Disability (as defined in
     Section 4.1(b)) by giving the Executive or his legal representative, as
     applicable, Notice of Termination accompanied by a certification of the
     Executive's Disability by a physician selected by the Company or its
     insurers and reasonably acceptable to the Executive or the Executive's
     legal representative. The Executive's employment shall terminate effective
     on the 30th day (the "Disability Effective Date") after the Executive's
     receipt of such Notice of Termination unless, before the Disability
     Effective Date, the Executive shall have resumed the full-time performance
     of the Executive's duties.

         (b) "Disability" means any medically determinable physical or mental
     impairment that has lasted for a continuous period of not less than six
     months and can be expected to be permanent or of indefinite duration, and
     that renders the Executive unable to perform the essential functions
     required under this Agreement with or without reasonable accommodation.

         (c) Unless the Company establishes, by clear and convincing evidence,
     that Executive has a Disability, any purported termination of employment
     for Disability shall be deemed a termination other than for Disability for
     all purposes of this Agreement.

     4.2 Death. The Executive's employment shall terminate automatically upon
the Executive's death during the Post-Change Period.

     4.3 Cause.

         (a) During the Post-Change Period, the Company may terminate the
     Executive's employment for Cause.

         (b) "Cause" means any of the following: Executive's conviction of a
     felony or of a crime involving fraud, dishonesty or moral turpitude;
     Executive's willful or intentional material breach of this Agreement that
     results in financial detriment that is material to the

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<PAGE>   109
     Company as a whole; or willful or intentional misconduct by Executive in
     the performance of his duties under this Agreement that results in
     financial detriment that is material to the Company as a whole; except that
     Cause shall not mean:

              (i) bad judgment or negligence;

              (ii) any act or omission believed by the Executive in good faith
         to have been in or not opposed to the interest of the Company (without
         intent of the Executive to gain, directly or indirectly, a profit to
         which the Executive was not legally entitled);

              (iii) any act or omission with respect to which a determination
         could properly have been made by the Board that the Executive met the
         applicable standard of conduct for indemnification or reimbursement
         under the Company's by-laws, any applicable indemnification agreement,
         or applicable law, in each case in effect at the time of such act or
         omission; or

              (iv) any act or omission with respect to which Notice of
         Termination is not given within 12 months after the earliest date on
         which any member of the Board, not a party to the act or omission, knew
         or should have known of such act or omission.

         (c) The Company may not during the Post-Change Period terminate
     Executive's employment for Cause unless the following procedures are fully
     complied with:

              (i) no fewer than 45 days prior to the Termination Date, the
         Company provides Executive with written notice (the "Notice of
         Consideration") of its intent to consider termination of Executive's
         employment for Cause, including a detailed description of the specific
         reasons which form the basis for such consideration;

              (ii) if after providing Notice of Consideration, the Board may, by
         the affirmative vote of at least 80% of its members (excluding for this
         purpose Executive if he is a member of the Board, and any other member
         of the Board reasonably believed by the Board to be involved in the
         events issuing the Notice of Consideration), suspend Executive with pay
         until a final determination pursuant to this Section has been made;

              (iii) for a period of not less than 30 days after the date Notice
         of Consideration is provided, Executive shall have the opportunity to
         appear before the Board, with or without legal representation, at
         Executive's election, to present arguments and evidence on his own
         behalf; and

              (iv) following the presentation to the Board as provided in (3)
         above or Executive's failure to appear before the Board at a date and
         time specified in the Notice of Consideration (which date shall not be
         less than 30 days after the date the Notice of Consideration is
         provided), Executive may be terminated for Cause only if (i) the Board,
         by the affirmative vote of at least 80% of its members

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<PAGE>   110

         (excluding Executive if he is a member of the Board, and any other
         member of the Board reasonably believed by the Board to be involved in
         the events leading the Board to terminate Executive for Cause),
         determines that the actions or inactions of Executive specified in the
         Notice of Consideration occurred, that such actions or inactions
         constitute Cause, and that Executive's employment should accordingly be
         terminated for Cause; and (ii) the Board provides Executive with a
         written determination (a "Notice of Termination for Cause") setting
         forth in specific detail the basis of such Termination of Employment,
         which Notice of Termination for Cause shall be consistent with the
         reasons set forth in the Notice of Consideration.

     Unless the Company establishes, by clear and convincing evidence, both (x)
its full compliance with the substantive and procedural requirements of this
Section prior to a termination of employment for Cause, and (y) that Executive's
action or inaction specified in the Notice of Termination for Cause did occur
and constituted Cause, any purported termination of employment for Cause shall
be deemed a termination without Cause for all purposes of this Agreement.

     4.4 Good Reason.

         (a) During the Post-Change Period, the Executive may terminate
     employment for Good Reason within 12 months following the Executive's
     actual knowledge of an act or omission which constitutes Good Reason;
     provided, however, that the Executive's failure to terminate within 12
     months following Executive's actual knowledge of a particular act or
     omission which constitutes Good Reason shall not prevent Executive's
     termination for any other act or omission which constitutes Good Reason.

         (b) "Good Reason" means any of the following:

              (i)   the assignment to the Executive of any duties inconsistent
         in any respect with the Executive's position (including offices,
         titles, reporting requirements or responsibilities), authority or
         duties as prescribed by Section 3.2(a)(1), or the Company's requiring
         the Executive to be based at any office or location other than the
         location described in Section 3.2(a)(2); or any other action by the
         Company which results in a diminution or other material adverse change
         in such position, authority or duties;

              (ii)  the failure to pay Guaranteed Base Salary in at least the
         amount prescribed by Section 3.2(a);

              (iii) the failure to pay Guaranteed Bonus in at least the amount
         prescribed by Section 3.3(b); provided, however, that if the
         Post-Change Period results solely from a Growth Transaction; Good
         Reason under this clause (iii) shall only be the failure to provide
         Executive with a bonus opportunity (including designation of target
         performance goals and percentage of Guaranteed Base Salary payable on
         achievement of target performance goals) no less favorable to

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<PAGE>   111

         Executive than that provided by the Company to Executive for either of
         the two most recent Performance Periods beginning before such Growth
         Transaction;

              (iv)   the failure to provide any plan or fringe benefits or
         perquisites prescribed by Sections 3.3(c) through 3.3(h), as modified,
         if the Post-Change Period results solely from a Growth Transaction, by
         Section 3.1(b);

              (v)    any other failure by the Company to comply with any of the
         provisions of Article III;

              (vi)   any other material adverse change to the terms and
         conditions of the Executive's employment (whether or not also described
         in clauses (i) through (v) above);

              (vii)  the Board's giving Notice of Consideration pursuant to
         Section 4.3(c) (of the intent to consider terminating Executive for
         Cause) but failing to terminate Executive for Cause within a period of
         90 days thereafter in compliance with all substantive and procedural
         requirements of Section 4.3,

              (viii) any purported termination by the Company of the Executive's
         employment other than as expressly permitted by this Agreement (any
         such purported termination shall not be effective for any other purpose
         under this Agreement);

              (ix)   a failure by the Company to cause a successor, prior to or
         as of the date it becomes a successor, to assume and agree to perform
         this Agreement in accordance with the provisions of Section 11.2
         hereof.

Any determination by Executive that any of the foregoing events has occurred and
constitutes "Good Reason" shall be conclusive and binding for all purposes
unless the Company establishes by clear and convincing evidence that Executive
did not have a reasonable basis for such a determination.

     (c) Any termination of employment by the Executive for Good Reason shall be
communicated to the Company by Notice of Termination. The passage of time not in
excess of 12 months after the Executive has actual knowledge of an act or
omission which constitutes Good Reason prior to delivery of Notice of
Termination or a failure by the Executive to include in the Notice of
Termination any fact or circumstance which contributes to a showing of Good
Reason shall not waive any right of the Executive under this Agreement or
preclude the Executive from asserting such fact or circumstance in enforcing
rights under this Agreement.

                                   ARTICLE V.
                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

     5.1 If by the Executive for Good Reason or by the Company Other Than for
Cause or Disability. If, during the Post-Change Period, the Company shall
terminate Executive's

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<PAGE>   112

employment other than for Cause, Disability, or death or if the Executive shall
terminate employment for Good Reason, the Company shall pay the Executive within
five (5) days of the Termination Date (or if earlier within five (5) days of the
last day Executive performed services for the Company as an Employee), in
addition to all vested rights arising from the Executive's employment as
specified in Article III, a cash amount equal to the sum of the amounts
described in (a) through (g) below and the additional benefits described in (h)
through (i) below:

         (a) The Guaranteed Base Salary, any accrued vacation pay and business
     expenses incurred through the Termination Date, to the extent not
     previously paid to the Executive by the Company.

         (b) The difference between (1) the product of (A) the Guaranteed Bonus,
     multiplied by (B) a fraction, the numerator of which is the number of days
     in the Termination Performance Period which elapsed before the Termination
     Date, and the denominator of which is the total number of days in the
     Termination Performance Period, and (2) the amount of any Guaranteed Bonus
     previously paid to the Executive by the Company with respect to the
     Termination Performance Period.

         (c) The value of Executive's then-accrued benefits under any Deferral
     Plan plus the present value of Executive's then-accrued benefits under any
     SERP, determined without disregarding service and compensation before any
     Effective Date but then reduced by the amount, if any, previously paid to
     the Executive by the Company pursuant to Section 3.6.

         (d) An amount equal to the product of (1) three (3.0), multiplied by
     (2) the sum of (A) the Guaranteed Base Salary and (B) the Guaranteed Bonus.

         (e) An amount equal to the sum of the value of the unvested portion of
     the Executive's accounts or accrued benefits under any qualified plan
     maintained by the Company as of the Termination Date.

         (f) The difference between (1) the amount that would be determined
     under Section 5.1(c) above if such amount were calculated (to the extent
     applicable in determining such amount) (A) as though the Executive
     continued to accrue benefits and be credited with service under the SERP
     for a period of three years after the Termination Date, (B) as though the
     Executive received compensation during each year of such three-year
     period equal to the sum of the Guaranteed Base Salary and the highest
     Guaranteed Bonus paid (or payable) to the Executive in the three calendar
     years preceding the Termination Date, (C) as though the Executive were
     three (3) years older than his age at the Termination Date, and (D) without
     disregarding service and compensation before the Termination Date; reduced
     by (2) the amount (if any) previously or simultaneously paid by the Company
     to the Executive pursuant to Sections 3.6 and 5.1(c).

         (g) In addition to the foregoing amounts, the Company shall pay on
     behalf of Executive all fees and costs charged by the outplacement firm
     selected by the Executive to provide outplacement services or at the
     election of the Executive, an immediate cash

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<PAGE>   113

     payment equal to the fees and expenses such outplacement firm would charge
     but not in excess of 20% of the Guaranteed Base Salary.

         (h) In addition to the foregoing payments, until the third annual
     anniversary of the Termination Date or such later date as any Plan of the
     Company may specify, the Company shall continue to provide to the Executive
     and the Executive's family welfare benefits (including, without limitation,
     medical, prescription, dental, disability, salary continuance, individual
     life, group life, accidental death and travel accident insurance plans and
     programs) which are at least as favorable as the most favorable Plans of
     the Company applicable to other peer executives and their families as of
     the Termination Date, but which are in no event less favorable than the
     most favorable Plans of the Company applicable to other peer executives and
     their families during the 90-day period immediately before the Effective
     Date; and the cost of such welfare benefits to Executive shall not exceed
     the cost of such benefits to the Executive immediately before the
     Termination Date or, if less, the Effective Date.

         (i) Beginning on the later of the third annual anniversary of the
     Termination Date or the date Executive attains age 50, and continuing until
     the death of the last to die of Executive and his or her spouse, the
     Company shall provide to the Executive and to Executive's family medical
     benefits which (1) until Executive attains age sixty-five (65) are at least
     as favorable as the most favorable medical Plans of the Company applicable
     to actively employed peer executives and that covered any active employee
     of the Company as of the Effective Date, and (2) from and after the date
     Executive attains age 65, are at least as favorable as the most favorable
     medical Plans of the Company applicable to eligible retired peer executives
     and that covered any retired employee as of the Effective Date; and the
     cost to Executive of such medical benefits for the period described in
     clause (1) shall not exceed the cost of such benefits to Executive
     immediately before the Termination Date or, if less, the Effective Date,
     and the cost to Executive of such medical benefits for the period described
     in clause (2) shall not exceed the cost of such benefits to any similarly
     situated eligible retiree of the Company immediately before the Termination
     Date or, if less, the Effective Date.

The Executive's rights under this Section 5.1 shall be in addition to, and not
in lieu of, any post-termination continuation coverage or conversion rights the
Executive may have pursuant to applicable law, including without limitation
continuation coverage required by Section 4980 of the Code or Part 6 of Title I
of the Employee Retirement Income Security Act of 1974, as amended, for which
purpose the date of the qualifying event shall not be earlier than the date
specified in the first sentence of Section 5.1(i). However, if the Executive is
covered under a medical, life, or disability insurance plan provided by a
subsequent employer at equal or lesser cost to Executive than the cost to
Executive of coverage under the corresponding Company plan required by Sections
5.1(i), then the benefits under the corresponding Company plan required by
Sections 5.1(i) shall be secondary to the benefits under the subsequent
employer's medical, life, or disability insurance plan.

     5.2 If by the Company for Cause. If the Company terminates the Executive's
employment for Cause during the Post-Change Period pursuant to the procedures
set forth in Section 4.3, this Agreement shall terminate without further
obligation by the Company to the

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<PAGE>   114

Executive, other than the obligation immediately to pay the Executive in cash
the Executive's Guaranteed Base Salary through the Termination Date, plus the
amount of any compensation previously deferred by the Executive, plus any
accrued vacation pay and business expenses incurred through the Termination
Date, in each case to the extent not previously paid or reimbursed.

     5.3 If by the Executive Other Than for Good Reason. If the Executive
terminates employment during the Post-Change Period other than for Good Reason,
Disability or death, this Agreement shall terminate without further obligations
by the Company, other than the obligation immediately to pay the Executive in
cash all amounts specified in paragraphs (a), (b) and (c) of Section 5.1 (such
amounts collectively, the "Accrued Obligations").

     5.4 If by the Company for Disability. If the Company terminates the
Executive's employment by reason of the Executive's Disability during the
Post-Change Period, this Agreement shall terminate without further obligations
to the Executive, other than:

         (a) the Company's obligation immediately to pay the Executive in cash
     all Accrued Obligations, and

         (b) the Executive's right after the Disability Effective Date to
     receive disability and other benefits at least equal to the greater of (i)
     those provided under the most favorable disability Plans applicable to
     disabled peer executives of the Company in effect immediately before the
     Termination Date or (ii) those provided under the most favorable disability
     Plans of the Company in effect at any time during the 90-day period
     immediately before the Effective Date.

     5.5 If upon Death. If the Executive's employment is terminated by reason of
the Executive's death during the Post-Change Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than the obligation immediately to pay the
Executive's estate or beneficiary in cash all Accrued Obligations. Despite
anything in this Agreement to the contrary, the Executive's family shall be
entitled to receive benefits at least equal to the most favorable benefits
provided by the Company to the surviving families of peer executives of the
Company under such Plans, but in no event shall such Plans provide benefits
which in each case are less favorable, in the aggregate, than the most favorable
of those provided by the Company to the Executive under such Plans in effect at
any time during the 90-day period immediately before the Effective Date.

                                   ARTICLE VI.
                            NON-EXCLUSIVITY OF RIGHTS

     6.1 Waiver of Other Severance Rights. To the extent that payments are made
to the Executive pursuant to Section 5.1, the Executive hereby waives the right
to receive severance payments under any other Plan or agreement of or with the
Company.

     6.2 Other Rights. Except as provided in Section 6.1, this Agreement shall
not prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other Plans provided by the Company or any of its
Subsidiaries and for which the Executive may

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<PAGE>   115

qualify, nor shall this Agreement limit or otherwise affect such rights as the
Executive may have under any other agreements with the Company or any of its
Subsidiaries. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any Plan of the Company or any of its
Subsidiaries and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such Plan or applicable law
except as expressly modified by this Agreement.

                                  ARTICLE VII.
                   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY

     7.1 Gross-up for Certain Taxes. If it is determined (by the reasonable
computation of the Company's independent auditors, which determinations shall be
certified to by such auditors and set forth in a written certificate
("Certificate") delivered to the Executive) that any benefit received or deemed
received by the Executive from the Company pursuant to this Agreement or
otherwise (collectively, the "Payments") is or will become subject to any excise
tax under Section 4999 of the Code or any similar tax payable under any United
States federal, state, local or other law (such excise tax and all such similar
taxes collectively, "Excise Taxes"), then the Company shall, immediately after
such determination, pay the Executive an amount (the "Gross-up Payment") equal
to the product of

         (a) the amount of such Excise Taxes

multiplied by

         (b) the Gross-up Multiple (as defined in Section 7.4).

The Gross-up Payment is intended to compensate the Executive for the Excise
Taxes and any federal, state, local or other income or excise taxes or other
taxes payable by the Executive with respect to the Gross-up Payment.

     The Executive or the Company may at any time request the Company's
independent auditors to prepare and deliver a Certificate to the Executive. The
Company shall, in addition to complying with Section 7.2, cause all
determinations and certifications under the Article to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and
file the Executive's individual tax returns on a timely basis.

     7.2 Determination by the Executive.

         (a) If the Company or its independent auditors shall fail to deliver a
     Certificate to the Executive (and to pay to the Executive the amount of the
     Gross-up Payment, if any) within 14 days after receipt from the Executive
     of a written request for a Certificate, or if at any time following receipt
     of a Certificate the Executive disputes the amount of the Gross-up Payment
     set forth therein, the Executive may elect to demand the payment of the
     amount which the Executive, in accordance with an Executive Counsel
     Opinion), (as defined in Section 7.5), determines to be the Gross-up
     Payment. Any such demand by the Executive shall be made by delivery to the
     Company of a written notice which specifies the Gross-up Payment determined
     by the Executive and an Executive Counsel

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<PAGE>   116
     Opinion regarding such Gross-up Payment (such written notice and opinion
     collectively, the "Executive's Determination"). Within 14 days after
     delivery of the Executive's Determination to the Company, the Company shall
     either (1) pay the Executive the Gross-up Payment set forth in the
     Executive's Determination (less the portion of such amount, if any,
     previously paid to the Executive by the Company) or (2) deliver to the
     Executive a Certificate specifying the Gross-up Payment determined by the
     Company's independent auditors, together with a Company Counsel Opinion (as
     defined in Section 7.5), and pay the Executive the Gross-up Payment
     specified in such Certificate. If for any reason the Company fails to
     comply with clause (2) of the preceding sentence, the Gross-up Payment
     specified in the Executive's Determination shall be controlling for all
     purposes.

         (b) If the Executive does not make a request for, and the Company does
     not deliver to the Executive, a Certificate, the Company shall, for
     purposes of Section 7.3, be deemed to have determined that no Gross-up
     Payment is due.

     7.3 Additional Gross-up Amounts. If the amount of Excise Taxes payable by
the Executive with respect to all Payments is determined (pursuant to the
subsequently-enacted provisions of the Code, final regulations or published
rulings of the IRS, final judgment of a court of competent jurisdiction or the
Company's independent auditors) to be greater than the amount previously paid by
the Company to the Executive pursuant to Section 7.1 or 7.2, as applicable, then
the Company shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

         (a) the sum of (i) such additional Excise Taxes and (ii) any interest,
     fines, penalties, expenses or other costs incurred by the Executive as a
     result of having taken a position in accordance with a determination made
     pursuant to Section 7.1,

multiplied by

         (b) the Gross-up Multiple.

     7.4 Gross-up Multiple. The Gross-up Multiple shall equal the quotient
(greater than one (1.0)) of one (1.0) divided by one (1.0) minus the sum,
expressed as a decimal fraction, of the rates of all federal, state, local and
other income and other taxes and any Excise Taxes applicable to the Gross-up
Payment; provided that, if such sum exceeds 0.75, it shall be deemed equal to
0.75 for purposes of this computation. (If different rates of tax are applicable
to various portions of a Gross-up Payment, the weighted average of such rates
shall be used.)

     7.5 Opinion of Counsel. "Executive Counsel Opinion" means a legal opinion
of nationally recognized executive compensation counsel who is counsel to the
Executive that there is a reasonable basis to support a conclusion that the
Gross-up Payment determined by the Executive has been calculated in accord with
this Article and applicable law. "Company Counsel Opinion" means a legal opinion
of nationally recognized executive compensation counsel who is counsel to the
Company that (a) there is a reasonable basis to support a conclusion that the
Gross-up Payment set forth of the Certificate of Company's independent

                                      -19-

<PAGE>   117

auditors has been calculated in accord with this Article and applicable law, and
(b) there is no reasonable basis for the calculation of the Gross-up Payment
determined by the Executive.

     7.6 Amount Increased or Contested. The Executive shall notify the Company
in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by the Company of a Gross-up Payment. Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid. The Executive shall give such notice as soon as practicable,
but no later than 10 business days, after the Executive first obtains actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such notice shall affect the Company's obligations under this Article
only if and to the extent that such failure results in actual prejudice to the
Company. The Executive shall not pay such claim less than 30 days after the
Executive gives such notice to the Company (or, if sooner, the date on which
payment of such claim is due). If the Company notifies the Executive in writing
before the expiration of such period that it desires to contest such claim, the
Executive shall:

         (a) give the Company any information that it reasonably requests
     relating to such claim,

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

         (c) cooperate with the Company in good faith to contest such claim, and

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax (to the extent not previously paid by the
Company to the Executive) or income tax, including related interest and
penalties, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing, the Company shall control all
proceedings in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner. The Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify the Executive, on an after-tax basis, for any Excise Tax or income
tax, including related interest or penalties, imposed with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. The Company's control of the contest shall be limited to
issues with respect to which a Gross-up Payment would be payable. The Executive

                                      -20-

<PAGE>   118

shall be entitled to settle or contest, as the case may be, any other issue
raised by the IRS or other taxing authority.

     7.7 Refunds. If, after the receipt by the Executive of an amount advanced
by the Company pursuant to Section 7.6, the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall (subject to
the Company's complying with the requirements of Section 7.6) promptly pay the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 7.6, a determination is
made that the Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify the Executive in writing of its intent to
contest such determination before the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-up Payment required to be paid. Any contest of a denial of
refund shall be controlled by Section 7.6.

                                  ARTICLE VIII.
                              EXPENSES AND INTEREST

     8.1 Legal Fees and Other Expenses.

         (a) If the Executive incurs legal, accounting and other fees or other
     expenses in a good faith effort to obtain benefits under this Agreement
     (including, without limitation, the fees and other expenses of the
     Executive's legal counsel, any expert witness fees and expenses, and
     accounting and other fees and expenses, including legal and accounting fees
     and expenses in connection with the delivery of the Executive Counsel
     Opinion referred to in Article VII), regardless of whether the Executive
     ultimately prevails, the Company shall reimburse the Executive on a monthly
     basis upon the written request for such fees and expenses to the extent not
     previously reimbursed under the Company's officers and directors liability
     insurance policy, if any. Simultaneously with each such payment Company
     shall pay Executive an amount such that after payment of incremental United
     States federal, state and local income, excise and other taxes payable by
     Executive ("Taxes") with respect to such tax reimbursement, there remains a
     balance sufficient to pay the Taxes on the reimbursement of such fees and
     expenses. The existence of any controlling case or regulatory law which is
     directly inconsistent with the position taken by the Executive shall be
     evidence that the Executive did not act in good faith. Executive's payment
     of such fees and expenses shall be a conclusive determination with respect
     to the Company that such fees and expenses are reasonable.

         (b) Reimbursement of legal fees and expenses shall be made monthly upon
     the written submission of a request for reimbursement together with
     evidence that such fees and expenses are due and payable or were paid by
     the Executive. If the Company shall have reimbursed the Executive for legal
     fees and expenses and it is later determined that the Executive was not
     acting in good faith, all amounts paid on behalf of, or reimbursed to, the
     Executive shall be promptly refunded to the Company.

                                      -21-

<PAGE>   119

         (c) To secure its obligations under this Section 8.1 the Company shall
     procure and maintain in force during the Agreement Term and thereafter for
     one (1) year or if longer until the termination (by final judgment and
     after all rights of appeal have been exhausted or waived) of any litigation
     involving a good faith effort of an Executive to obtain benefits under this
     Agreement, a letter of credit and an escrow in favor of Executive (together
     with other executives similarly situated). The letter of credit shall be
     issued by a bank or trust company organized under the laws of the United
     States or Canada or a state or province thereof and having a combined
     capital and surplus of not less than one hundred million dollars
     ($100,000,000), shall be in the aggregate amount of five hundred thousand
     dollars ($500,000) prior to July 1, 2001, and in the aggregate amount of
     two million dollars $2,000,000) on and after July 1, 2001, and shall be
     substantially in the form of that attached (with its attached Annexes and
     Exhibits) to this Agreement as Exhibit A. The escrow shall be maintained in
     the state of Illinois under an escrow agreement with a bank or trust
     company organized under the laws of the United States or Canada or a state
     or province thereof and having a combined capital and surplus of not less
     than one hundred million dollars ($100,000,000), and shall be substantially
     in the form of that attached (with its attached Exhibits) to this Agreement
     as Exhibit B.

     8.2 Interest. If the Company does not pay any amount due to the Executive
under this Agreement within three days after such amount became due and owing,
interest shall accrue on such amount from the date it became due and owing until
the date of payment at a annual rate equal to two percent (2.0%) above the base
commercial lending rate announced by the Company's principal revolving credit
lender in effect from time to time during the period of such nonpayment; or, if
the Company does not have a principal revolving credit lender, then at two
percent (2.0%) above the prime rate of interest in effect from time to time
during the period of such nonpayment, as reported from time to time in the Wall
Street Journal; but in no case greater than the maximum rate of interest
permitted by applicable law.

                                   ARTICLE IX.
                            NO SET-OFF OR MITIGATION

     9.1 No Set-off or Defenses by Company. The Executive's right to receive
when due the payments and other benefits provided for under this Agreement is
absolute, unconditional and shall not be subject to any set-off, counterclaim or
legal or equitable defense. The exclusive method for the Company to avoid
payments to the Executive under this Agreement, to the extent specified in this
Agreement, is to terminate Executive's employment for Cause pursuant to Sections
4.3 and 5.2 of this Agreement. Time is of the essence in the performance by the
Company of its obligations under this Agreement. Any claim which the Company may
have against the Executive, whether for a breach of this Agreement or otherwise,
shall be brought in a separate action or proceeding and not as part of any
action or proceeding brought by the Executive to enforce any rights against the
Company under this Agreement.

     9.2 No Mitigation. The Executive shall not have any duty to mitigate the
amounts payable by the Company under this Agreement by seeking new employment
following termination. Except as specifically otherwise provided in this
Agreement, all amounts payable pursuant to this Agreement shall be paid without
reduction regardless of any amounts of salary,

                                      -22-

<PAGE>   120

compensation or other amounts which may be paid or payable to the Executive as
the result of the Executive's employment by another employer.

                                   ARTICLE X.
                       CONFIDENTIALITY AND NONCOMPETITION

     10.1 Confidentiality. Executive acknowledges that it is the policy of the
Company and its subsidiaries to maintain as secret and confidential all valuable
and unique information and techniques acquired, developed or used by the Company
and its Subsidiaries relating to their business, operations, employees and
customers, which gives the Company and its subsidiaries a competitive advantage
in the construction and engineering industry and other businesses in which the
Company and its subsidiaries are engaged ("Confidential Information"). Executive
recognizes that all such Confidential Information is the sole and exclusive
property of the Company and its Subsidiaries, and that disclosure of
Confidential Information would cause damage to the Company and its Subsidiaries.
Executive agrees that, except as required by the duties of his employment with
the Company and/or its Subsidiaries and except in connection with enforcing the
Executive's rights under this Agreement or if compelled by a court or
governmental agency, he will not, without the consent of the Company,
disseminate or otherwise disclose any Confidential Information obtained during
his employment with the Company and/or its Subsidiaries for so long as such
information is valuable and unique.

     10.2 Noncompetition/Nonsolicitation.

         (a) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive will not at any time directly or indirectly, in any capacity,
     engage or participate in, or become employed by or render advisory or
     consulting or other services in connection with any Prohibited Business as
     defined in Section 10.2(d).

         (b) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive shall not make any financial investment, whether in the form of
     equity or debt, or own any interest, directly or indirectly, in any
     Prohibited Business. Nothing in this Section 10.2(b) shall, however,
     restrict Executive from making any investment in any company whose stock is
     listed on a national securities exchange or actively traded in the
     over-the-counter market; provided that (1) such investment does not give
     Executive the right or ability to control or influence the policy decisions
     of any Prohibited Business, and (2) such investment does not create a
     conflict of interest between Executive's duties hereunder and Executive's
     interest in such investment.

         (c) Executive agrees that, during the period of his employment with the
     Company and/or its Subsidiaries and, if Executive's employment is
     terminated for any reason, thereafter for a period of one (1) year,
     Executive shall not (1) employ any employee of the Company and/or its
     Subsidiaries or (2) interfere with the Company's or any of its

                                      -23-

<PAGE>   121

     Subsidiaries' relationship with, or endeavor to entice away from the
     Company and/or its Subsidiaries any person, firm, corporation, or other
     business organization who or which at any time (whether before or after the
     date of Executive's termination of employment), was an employee, customer,
     vendor or supplier of, or maintained a business relationship with, any
     business of the Company and/or its Subsidiaries which was conducted at any
     time during the period commencing one year prior to the termination of
     employment.

         (d) For the purpose of this Section 10.2, "Prohibited Business" shall
     be defined as any construction and engineering business specializing in the
     engineering and design, materials procurement, fabrication, erection,
     repair and modification of steel tanks and other steel plate structures and
     associated systems and any branch, office or operation thereof, which is a
     direct and material competitor of the Company wherever the Company does
     business, including the Netherlands, the United States and any other
     country.

     10.3 Remedy. Executive and the Company specifically agree that, in the
event that Executive shall breach his obligations under this Article X, the
Company and its Subsidiaries will suffer irreparable injury and no adequate
remedy for such breach, and shall be entitled to injunctive relief therefor, and
in particular, without limiting the generality of the foregoing, the Company
shall not be precluded from pursuing any and all remedies it may have at law or
in equity for breach of such obligations; provided, however, that such breach
shall not in any manner or degree whatsoever limit, reduce or otherwise affect
the obligations of the Company under this Agreement, and in no event shall an
asserted breach of the Executive's obligations under this Article X constitute a
basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement.

                                   ARTICLE XI.
                                  MISCELLANEOUS

     11.1 No Assignability. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

     11.2 Successors. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to assume expressly and agree to perform this Agreement.
Any successor to the business and/or assets of the Company which assumes and
agrees to perform this Agreement by operation of law, contract, or otherwise
shall be jointly and severally liable with the Company under this Agreement.

     11.3 Payments to Beneficiary. If the Executive dies before receiving
amounts to which the Executive is entitled under this Agreement, such amounts
shall be paid as soon as administratively practicable in a lump sum to the
beneficiary designated in writing by the Executive, or if none is so designated,
to the Executive's estate.

                                      -24-

<PAGE>   122

     11.4  Non-alienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

     11.5  Severability. If any one or more articles, sections or other portions
of this Agreement are declared by any court or governmental authority to be
unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any article, section or other portion not so declared to be unlawful
or invalid. Any article, section or other portion so declared to be unlawful or
invalid shall be construed so as to effectuate the terms of such article,
section or other portion to the fullest extent possible while remaining lawful
and valid.

     11.6  Amendments. Except as provided in Section 2.2 hereof, this Agreement
shall not be altered, amended or modified except by written instrument executed
by the Company and Executive.

     11.7  Notices. All notices and other communications under this Agreement
shall be in writing and delivered by hand or by first class registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

            If to the Executive:

            Mr. Robert B. Jordan
            2319 Fleetwood Court
            Naperville, Illinois  60565

            If to the Company (including any or all of CBICNV, CBIC or CBICD):

            Chicago Bridge & Iron Company
            1501 North Division Street
            Plainfield, Illinois  60544
            Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing. Notice and communications shall be effective when actually received by
the addressee.

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

     11.9  Governing Law. This Agreement shall be interpreted and construed in
accordance with the laws of the State of Illinois, without regard to its choice
of law principles.

     11.10 Captions. The captions of this Agreement are not a part of the
provisions hereof and shall have no force or effect.

                                      -25-

<PAGE>   123

     11.11 Tax Withholding. The Company may withhold from any amounts payable
under this Agreement any federal, state or local taxes that are required to be
withheld pursuant to any applicable law or regulation.

     11.12 Joint and Several Obligations. The obligations of the Company under
this Agreement are joint and several obligations of CBICNV, CBIC and CBICD;
provided, however, that each of CBICNV, CBIC and CBICD may agree between
themselves but without adversely affecting the rights of the Executive which of
them shall provide any particular payment or benefit under this Agreement.

     11.13 No Waiver. The Executive's failure to insist upon strict compliance
with any provision of this Agreement shall not be deemed a waiver of such
provision or any other provision of this Agreement. A waiver of any provision of
this Agreement shall not be deemed a waiver of any other provision, and any
waiver of any default in any such provision shall not be deemed a waiver of any
later default thereof or of any other provision.

     11.14 Prior Agreement. The Change of Control Severance Agreement dated
March 4, 1999, between CBIC and the Executive is hereby terminated effective on
the date of this Agreement.

     11.15 Entire Agreement. This Agreement contains the entire understanding of
the Company and the Executive with respect to its subject matter and supercedes
any prior change of control severance agreement and any Change of Control
severance benefit provisions in any prior employment agreement between the
Company and the Executive.

                                      -26-

<PAGE>   124

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

                                EXECUTIVE

                                /s/ Robert B. Jordan
                                ------------------------------------------------
                                Robert B. Jordan

                                CHICAGO BRIDGE & IRON COMPANY N.V.

                                By:  /s/ Gerald M. Glenn
                                     -------------------------------------------
                                Title: Managing Director
                                       -----------------------------------------

                                CHICAGO BRIDGE & IRON COMPANY

                                By:  /s/ Stephen M. Duffy
                                     -------------------------------------------
                                Title:
                                       -----------------------------------------

                                CHICAGO BRIDGE & IRON COMPANY (DELAWARE)

                                By:  /s/ Timothy J. Wiggins
                                     -------------------------------------------
                                Title:
                                       -----------------------------------------

                                      -27-
<PAGE>   125

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

<PAGE>   126

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>       <C>                                                                                                  <C>
ARTICLE I. PURPOSES...............................................................................................1

ARTICLE II. CERTAIN DEFINITIONS...................................................................................1
   2.1    "Accrued Obligations"...................................................................................1
   2.2    "Agreement Term"........................................................................................1
   2.3    "Affiliate".............................................................................................2
   2.4    "Article" means an article of this Agreement............................................................2
   2.5    "Beneficial Owner" .....................................................................................2
   2.6    "Board".................................................................................................2
   2.7    "Cause".................................................................................................2
   2.8    "Change of Control".....................................................................................2
   2.9    "Code"..................................................................................................3
   2.10   "Deferral Plan" has the meaning defined for that term in Section 3.6....................................3
   2.11   "Disability"............................................................................................4
   2.12   "Effective Date"........................................................................................4
   2.13   "Good Reason" has the meaning defined for that term in Section 4.4(b)...................................4
   2.14   "Gross-up Payment"......................................................................................4
   2.15   "Growth Transaction" ...................................................................................4
   2.16   "Imminent Control Change Date"..........................................................................4
   2.17   "IRS"...................................................................................................4
   2.18   "1934 Act"..............................................................................................4
   2.19   "Notice of Termination".................................................................................5
   2.20   "Plans".................................................................................................5
   2.21   "Policies"..............................................................................................5
   2.22   "Post-Change Period".  .................................................................................5
   2.23   "Present Value".........................................................................................5
   2.24   "SEC"...................................................................................................5
   2.25   "Section"...............................................................................................5
   2.26   "SERP"..................................................................................................5
   2.27   "Shareholder Agreement".................................................................................5
   2.28   "Subsidiary"............................................................................................5
   2.29   "Termination Date"......................................................................................5
   2.30   "Transaction Owner".....................................................................................6
   2.31   "Voting Securities".....................................................................................6

ARTICLE III. POST-CHANGE PERIOD PROTECTIONS.......................................................................6
   3.1    General.................................................................................................6
   3.2    Position and Duties.....................................................................................6
   3.3    Compensation............................................................................................7
   3.4    Pro-Rata Bonus Payment.................................................................................10
   3.5    Equity Awards Vesting..................................................................................10
   3.6    Nonqualified Deferred Compensation.....................................................................10
</TABLE>

                                      -i-
<PAGE>   127
                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>      <C>                                                                                                   <C>
ARTICLE IV. TERMINATION OF EMPLOYMENT............................................................................11
   4.1   Disability..............................................................................................11
   4.2   Death...................................................................................................11
   4.3   Cause...................................................................................................11
   4.4   Good Reason.............................................................................................13

ARTICLE V. OBLIGATIONS OF THE COMPANY UPON TERMINATION...........................................................14
   5.1   If  by the Executive for Good Reason or by the Company Other Than for Cause or Disability...............14
   5.2   If by the Company for Cause.............................................................................17
   5.4   If by the Company for Disability........................................................................17
   5.5   If upon Death...........................................................................................17

ARTICLE VI. NON-EXCLUSIVITY OF RIGHTS............................................................................17
   6.1   Waiver of Other Severance Rights........................................................................17
   6.2   Other Rights............................................................................................17

ARTICLE VII. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY..........................................................18
   7.1    Gross-up for Certain Taxes.............................................................................18
   7.2    Determination by the Executive.........................................................................18
   7.3    Additional Gross-up Amounts............................................................................19
   7.4    Gross-up Multiple......................................................................................19
   7.5    Opinion of Counsel.....................................................................................19
   7.6    Amount Increased or Contested..........................................................................20
   7.7    Refunds................................................................................................21

ARTICLE VIII. EXPENSES AND INTEREST..............................................................................21
   8.1    Legal Fees and Other Expenses..........................................................................21
   8.2    Interest...............................................................................................22

ARTICLE IX. NO SET-OFF OR MITIGATION.............................................................................22
   9.1    No Set-off or Defenses by Company......................................................................22
   9.2    No Mitigation..........................................................................................23

ARTICLE X. CONFIDENTIALITY AND NONCOMPETITION....................................................................23
   10.1   Confidentiality........................................................................................23
   10.2   Noncompetition/Nonsolicitation.........................................................................23
   10.3   Remedy.................................................................................................24

ARTICLE XI. MISCELLANEOUS........................................................................................24
   11.1   No Assignability.......................................................................................24
</TABLE>

                                      -ii-
<PAGE>   128
                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>      <C>                                                                                                   <C>
   11.2   Successors.............................................................................................24
   11.3   Payments to Beneficiary................................................................................25
   11.4   Non-alienation of Benefits.............................................................................25
   11.5   Severability...........................................................................................25
   11.6   Amendments.............................................................................................25
   11.7   Notices................................................................................................25
   11.8   Counterparts...........................................................................................25
   11.9   Governing Law..........................................................................................25
   11.10  Captions...............................................................................................26
   11.11  Tax Withholding........................................................................................26
   11.12  Joint and Several Obligations..........................................................................26
   11.13  No Waiver..............................................................................................26
   11.14  Prior Agreement........................................................................................26
   11.15  Entire Agreement.......................................................................................26
</TABLE>

                                      -iii-
<PAGE>   129

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

         THIS AGREEMENT dated as of October 13, 2000 is made among CHICAGO
BRIDGE & IRON COMPANY N.V. ("CBICNV"), a Netherlands corporation, CHICAGO BRIDGE
& IRON COMPANY, a Delaware corporation ("CBIC"), CHICAGO BRIDGE & IRON COMPANY
(DELAWARE), a Delaware corporation ("CBICD" and, together with CBICNV and CBIC,
the "Company"), each having its principal place of business in Plainfield,
Illinois, and Timothy J. Wiggins (the "Executive"), a resident of Illinois.

                                   ARTICLE I.
                                    PURPOSES

         The Supervisory Board of CBICNV has determined that it is in the best
interests of the Company and its stockholders to assure that the Company will
have the continued service of the Executive, despite the possibility or
occurrence of a change of control of the Company. The Board believes it is
imperative to reduce the distraction of the Executive that would result from the
personal uncertainties caused by a pending or threatened change of control, to
encourage the Executive's full attention and dedication to the Company, and to
provide the Executive with compensation and benefits arrangements upon a change
of control which ensure that the expectations of the Executive will be satisfied
and are competitive with those of similarly-situated corporations. This
Agreement is intended to accomplish these objectives.

                                  ARTICLE II.
                               CERTAIN DEFINITIONS

         When used in this Agreement, the terms specified below shall have the
following meanings:

         2.1 "Accrued Obligations" has the meaning defined for that term in
Section 5.3.

         2.2 "Agreement Term" means the period commencing on the date of this
Agreement and ending on the date which is thirty-six (36) months following the
date of this Agreement ("Expiration Date"); provided, however, that the
Agreement Term shall be extended as follows: (a) if neither the Company nor the
Executive gives written notice to the other pursuant to Section 11.7 that this
Agreement shall not be renewed ("Notice of Nonrenewal") within two years from
the date of this Agreement, the Agreement Term shall be extended to an
Expiration Date which shall be the first annual anniversary of the date a Notice
of Nonrenewal is given; (b) if an Imminent Control Change Date occurs before the
Expiration Date (as it may be extended under clause (a) above), then no Notice
of Nonrenewal shall thereafter be effective and the Agreement Term shall
automatically extend to an Expiration Date which is twelve (12) months after the
Imminent Change of Control Date, as further extended under the terms of this
clause should another Imminent Change of Control Date occur prior to the
Expiration Date as from time to time so extended, and (c) if a Change of Control
occurs before the Expiration Date (as extended

                                      -1-
<PAGE>   130

under clause (a) or (b) above or this clause (c)), the Expiration Date shall
automatically be extended to the last day of the Post-Change Period as the
Post-Change Period may be extended as provided in Section 2.22.

         2.3 "Affiliate" means an "affiliate" or "associate" as those terms are
defined in Rule 12b-2 under the 1934 Act.

         2.4 "Article" means an article of this Agreement.

         2.5 "Beneficial Owner" means such term as defined in Rule 13d-3 of the
SEC under the 1934 Act.

         2.6 "Board" means the Supervisory Board of Chicago Bridge & Iron
Company N.V.

         2.7 "Cause" has the meaning defined for that term in Section 4.3(b).

         2.8 "Change of Control" means, except as otherwise provided below, the
occurrence of any of the following:

                  (a) any person (as such term is used in Rule 13d-5 of the SEC
         under the 1934 Act) or group (as such term is defined in Section 13(d)
         of the 1934 Act), other than a Subsidiary or any employee benefit plan
         (or any related trust) of the Company or a Subsidiary, becomes the
         Beneficial Owner of 25% or more of the common shares of any of CBICNV,
         CBIC or CBICD or of other Voting Securities representing 25% or more of
         the combined voting power of all Voting Securities of any of CBICNV,
         CBIC or CBICD; provided, however, that (i) no Change of Control shall
         be deemed to have occurred solely by reason of any such acquisition by
         a corporation with respect to which, after such acquisition, more than
         75% of both the common shares or common stock of such corporation and
         the combined voting power of the Voting Securities of such corporation
         are then beneficially owned, directly or indirectly, by the persons who
         were the Beneficial Owners of the common shares and other Voting
         Securities of CBICNV, CBIC or CBICD immediately before such
         acquisition, in substantially the same proportion as their ownership of
         the common shares and other Voting Securities of CBICNV, CBIC or CBICD,
         as the case may be, immediately before such acquisition; and (ii) once
         a Change of Control occurs under this subsection (a), the occurrence of
         the next Change of Control (if any) under this subsection (a) shall be
         determined by reference to a person or group other than the person or
         group whose acquisition of Beneficial Ownership created such prior
         Change of Control unless the original person or group has in the
         meantime ceased to own 25% or more of the common shares of all of
         CBICNV, CBIC or CBICD or other Voting Securities representing 25% or
         more of the combined voting power of all Voting Securities of all of
         CBICNV, CBIC or CBICD; or

                  (b) individuals who, as of the date of this Agreement or as of
         any Effective Date thereafter, are Supervisory Directors of CBICNV (the
         "Incumbent Directors") cease for any reason to constitute at least 50%
         of the members of the Board; provided, however, that (i) any individual
         who becomes a Supervisory Director after the Effective Date whose
         binding nomination for election to the Board by the general meeting of
         shareholders was approved by a vote or written consent of at least 75%
         of the

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<PAGE>   131

         Supervisory Directors who are then Incumbent Directors shall be
         considered an Incumbent Director, but excluding, for this purpose, any
         such individual whose initial assumption of office is in connection
         with an actual or threatened election contest relating to the election
         of the directors of the Company (as such terms are used in Rule 14a-11
         of the SEC under the 1934 Act); and (ii) once a Change of Control
         occurs under this subsection (b), the occurrence of the next Change of
         Control (if any) under this subsection (b) shall be determined by
         reference to the individuals who were Incumbent Directors immediately
         after the Effective Date of such prior Change of Control; or

                  (c) approval by the Board, or by the shareholders of CBICNV,
         CBIC or CBICD, of any of the following:

                           (i) a merger, reorganization or consolidation of
                  CBICNV, CBIC or CBICD ("Merger"), other than a Merger after
                  which the individuals and entities who were the respective
                  beneficial owners of the common shares and other Voting
                  Securities of CBICNV, CBIC or CBICD (as the case may be)
                  immediately before such Merger beneficially own, directly or
                  indirectly, more than 75% of, respectively, the common shares
                  or common stock and the combined voting power of the Voting
                  Securities of the corporation resulting from such Merger, in
                  substantially the same proportion as their ownership of the
                  common shares or common stock and other Voting Securities of
                  CBICNV, CBIC or CBICD (as the case may be) immediately before
                  such Merger, or

                           (ii) a sale or other disposition by any of CBICNV,
                  CBIC or CBICD of all or substantially all of the assets owned
                  by it, or

                           (iii) any transaction as a result of which CBICNV
                  would not thereafter directly or indirectly own beneficially
                  at least 75% of the common stock of CBIC or as a result of
                  which CBIC would not thereafter directly or indirectly own
                  beneficially at least 75% of the common stock of CBICD, unless
                  after either such transaction CBICNV continues to own directly
                  or indirectly substantially all of the pre-transaction assets
                  of both CBIC and CBICD.

                  (d) if a Growth Transaction previously occurred, any
         Transaction Owner individually, or Transaction Owners collectively:

                           (i) materially breach(es) any provision of any
                  shareholder agreement to which CBICNV and such Transaction
                  Owner(s) are parties that addresses the governance of CBICNV
                  following the Growth Transaction; or

                           (ii) become(s) the Beneficial Owner of more than
                  66.5% of the common shares of any of CBICNV, CBIC or CBICD or
                  of other Voting Securities representing more than 66.5% of the
                  combined voting power of all Voting Securities of any of
                  CBICNV, CBIC or CBICD.

         2.9 "Code" means the Internal Revenue Code of 1986, as amended.

         2.10 "Deferral Plan" has the meaning defined for that term in Section
3.6.

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<PAGE>   132

         2.11 "Disability" has the meaning defined for that term in Section
4.1(b).

         2.12 "Effective Date" means each date on which a Change of Control
occurs during the Agreement Term; provided, however, that if the Company
terminates the Executive's employment before the date of a Change of Control,
and if the Executive reasonably demonstrates that such termination of employment
(a) was at the request of a third party who had taken steps reasonably
calculated to effect the Change of Control or (b) otherwise arose in connection
with or anticipation of the Change of Control, then "Effective Date" shall mean
the date immediately before the date of such termination of employment.

         2.13 "Good Reason" has the meaning defined for that term in Section
4.4(b).

         2.14 "Gross-up Payment" has the meaning defined for that term in
Section 7.1.

         2.15 "Growth Transaction" means (i) the acquisition by Wedge Group
Incorporated ("WGI"), a Delaware corporation, First Reserve Fund VIII, L.P.
("FRF"), a Delaware limited partnership, or Pitt-Des Moines, Inc. ("PDM"), a
Pennsylvania corporation, or their Affiliates, of common shares or other Voting
Securities of CBICNV as contemplated by an agreement with CBICNV for the
acquisition by CBICNV or an Affiliate of Howe-Baker International, Inc. from WGI
(the "HBI Transaction") or for the acquisition of the PDM Engineered
Construction Division and Water Division from PDM (the "PDM Transaction"); (ii)
the acquisition by a person (other than by public offering) of common shares or
other Voting Securities of CBICNV from CBICNV as part of an arrangement for
financing the HBI Transaction or the PDM Transaction; (iii) the acquisition by a
person of common shares or other Voting Securities of CBICNV from a previous
Transaction Owner if the person acquiring such common shares or other Voting
Securities is or becomes a party to a Shareholder Agreement with CBICNV that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner; or (iv) a transfer of common shares or other
Voting Securities of CBICNV from one Transaction Owner to another Transaction
Owner if the acquiring Transaction Owner is subject with respect to such shares
or other Voting Securities to either a preexisting Shareholder Agreement between
CBICNV and the acquiring Transaction Owner or a Shareholder Agreement that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner. However, a "Growth Transaction" will not include
any event described in Section 2.8(d).

         2.16 "Imminent Control Change Date" means any date on which occurs (a)
a presentation to the Company's shareholders generally or any of the Company's
directors or executive officers of a proposal or offer for a Change of Control,
or (b) the public announcement (whether by advertisement, press release, press
interview, public statement, SEC filing or otherwise) of a proposal or offer for
a Change of Control, or (c) such proposal or offer remains effective and
unrevoked.

         2.17 "IRS" means the Internal Revenue Service.

         2.18 "1934 Act" means the Securities Exchange Act of 1934, as amended.

         2.19 "Notice of Termination" means a written notice given in accordance
with Section 11.7 which sets forth (a) the specific termination provision in
this Agreement relied upon

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<PAGE>   133
by the party giving such notice, (b) in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under such termination provision and (c) if the Termination Date is
other than the date of receipt of such Notice of Termination, the Termination
Date.

         2.20 "Plans" means plans, programs, policies or practices of the
Company or any of its Subsidiaries.

         2.21 "Policies" means policies, practices or procedures of the Company
or any of its Subsidiaries.

         2.22 "Post-Change Period" means the period commencing on each Effective
Date and ending on the third annual anniversary of such Effective Date. If a new
Change of Control creates a new Effective Date during any current Post-Change
Period, the Post-Change Period shall be extended to the third annual anniversary
of such new Effective Date; and shall be further extended upon each new
Effective Date during the Post-Change Period as extended.

         2.23 "Present Value" means the present value, determined using (a) the
actuarial assumptions published by the Pension Benefit Guaranty Corporation
("PBGC") for determining immediate annuity values, as in effect on the first day
of the calendar year in which any payment of present value is required, or (b)
if no such actuarial assumptions are published by the PBGC, using the mortality
assumptions of the UP-84 group mortality table and an interest rate assumption
which is the lesser of (i) 75% of the current 30-year Treasury bond rate or (ii)
the current 30-year Treasury bond rate minus 150 basis points.

         2.24 "SEC" means the Securities and Exchange Commission.

         2.25 "Section" means, unless the context otherwise requires, a section
of this Agreement.

         2.26 "SERP" has the meaning defined for that term in Section 3.6.

         2.27 "Shareholder Agreement" means an agreement between CBICNV and a
person that limits the ability of such person and its Affiliates to obtain and
exercise control over the management and policies of the CBICNV.

         2.28 "Subsidiary" means a corporation as defined in Section 424(f) of
the Code (with the Company being treated as the employer corporation for
purposes of this definition) and any partnership or limited liability company in
which the Company or any Subsidiary has a direct or indirect interest (whether
in the form of voting power or participation in profits or capital contribution)
of 50% or more.

         2.29 "Termination Date" means the date of receipt of the Notice of
Termination or any later date specified in such notice (which date shall be not
more than 15 days after the giving of such notice), as the case may be;
provided, however, that (a) if the Company terminates the Executive's employment
other than for Cause or Disability, then the Termination Date shall be the date
of receipt of such Notice of Termination and (b) if the Executive's employment
is terminated by reason of death or Disability, then the Termination Date shall
be the date of death

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<PAGE>   134

of the Executive or the Disability Effective Date (as defined in Section
4.1(a)), as the case may be.

         2.30 "Transaction Owner" means a person who acquires common shares or
other Voting Securities of CBICNV in a Growth Transaction, or any Affiliate of
such person.

         2.31 "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors of
such corporation.

                                  ARTICLE III.
                         POST-CHANGE PERIOD PROTECTIONS

         3.1 General. On the Effective Date and during the Post-Change Period
thereafter the Company shall make the payments, provide the benefits and fulfill
the other obligations required by this Article III. However, if, such Effective
Date and Post-Change Period result solely from a Growth Transaction:

                  (a) Section 3.3(b) shall not apply except for purposes of
         determining the obligations of the Company on termination pursuant to
         Section 5.1, and to the extent provided in Section 4.4(b)(iii) and as
         modified thereby, in determining the existence of Good Reason;

                  (b) clause (ii) of each of Sections 3.3(c) through 3.3(h)
         shall not apply except for purposes of determining the obligations of
         the Company on termination pursuant to Section 5.1; but the aggregate
         value to the Executive of all Plans, fringe benefits and arrangements
         described in Sections 3.3(c) through 3.3(h) shall not be less
         favorable, in the aggregate, than the aggregate value to the Executive
         of such Plans, fringe benefits and arrangements provided by the Company
         to the Executive or peer executives at any time during the 90-day
         period immediately before such Effective Date; and

                  (c) Except as otherwise agreed to by separate agreement
         between the Company and the Executive that is more favorable to the
         Executive, Sections 3.4, 3.5, and 3.6 shall not apply on such Effective
         Date; but to the extent such vesting or payment is not otherwise
         required by Section 5.1, Sections 3.4, 3.5 and 3.6, shall apply to the
         Executive on the Termination Date (as if such Sections referred to the
         "Termination Date" instead of the "Effective Date") if during the
         Post-Change Period the Company shall terminate Executive's employment
         other than for Cause, or if the Executive shall terminate employment
         for Good Reason, or if employment terminates as a result of Disability
         or death.

         3.2 Position and Duties.

                  (a) During the Post-Change Period, (1) the Executive's
         position (including offices, titles, reporting requirements and
         responsibilities), authority and duties shall be at least commensurate
         in all material respects with the most significant of those held by,
         exercised by, or assigned to the Executive at any time during the
         90-day period immediately before the Effective Date and (2) the
         Executive's services shall be

                                      -6-
<PAGE>   135

         performed at the location where the Executive was employed immediately
         before the Effective Date or any other location less than 40 miles from
         such former location.

                  (b) During the Post-Change Period (other than any periods of
         vacation, sick leave, disability leave or other family or medical leave
         to which the Executive is entitled), the Executive shall devote his or
         her full attention and time to the business and affairs of the Company
         and, to the extent necessary to discharge the duties assigned to the
         Executive in accordance with this Agreement, shall use his or her best
         efforts to perform such duties faithfully and efficiently. During the
         Post-Change Period, the Executive may (1) serve on corporate, civic or
         charitable boards or committees, (2) deliver lectures, fulfill speaking
         engagements or teach at educational institutions and (3) manage
         personal investments, so long as such activities are consistent with
         the Policies of the Company or its Subsidiaries at the Effective Date
         and do not significantly interfere with the performance of the
         Executive's duties under this Agreement. To the extent that any such
         activities have been conducted by the Executive before the Effective
         Date and were consistent with the Policies of the Company or its
         Subsidiaries at the Effective Date, the continued conduct of such
         activities (or activities similar in nature and scope) after the
         Effective Date shall not be deemed to interfere with the performance of
         the Executive's duties under this Agreement.

         3.3 Compensation.

                  (a) Base Salary. During the Post-Change Period, the Company
         shall pay or cause to be paid to the Executive an annual base salary in
         cash ("Guaranteed Base Salary"), which shall be paid in a manner
         consistent with the Company's payroll practices in effect immediately
         before the Effective Date for such Post-Change Period, at a rate at
         least equal to the highest rate of annual salary paid or payable to the
         Executive by the Company at any time during the 12-month period
         immediately before such Effective Date. During the Post-Change Period,
         the Guaranteed Base Salary shall be reviewed at least annually and
         shall be increased at any time and from time to time as shall be
         substantially consistent with increases in base salary awarded to other
         peer executives of the Company. Any increase in Guaranteed Base Salary
         shall not limit or reduce any other obligation of the Company to the
         Executive under this Agreement. After any such increase, the Guaranteed
         Base Salary shall not be reduced and the term "Guaranteed Base Salary"
         shall thereafter refer to the increased amount.

                  (b) Guaranteed Bonus.

                           (i) During the Post-Change Period, the Company shall
                  pay or cause to be paid to the Executive a bonus (the
                  "Guaranteed Bonus") for each Performance Period which ends
                  during the Post-Change Period. "Performance Period" means each
                  period of time designated in accordance with any bonus
                  arrangement ("Bonus Plan") which is based upon performance and
                  approved by the Board or by any committee of the Board. For
                  purposes of this Section 3.3, a Bonus Plan includes, without
                  limitation, the Company's Incentive Compensation Plan as in
                  effect on the date hereof or any similar plan, but does not
                  include the Company's 1997 or 1999 Long-Term Incentive Plan
                  (an "LTIP") or any similar plan under

                                      -7-
<PAGE>   136

                  which equity awards described Section 3.5 are granted, unless
                  failure to consider the LTIP a Bonus Plan would leave the
                  Company without any Bonus Plan covering Executive. The
                  Guaranteed Bonus shall be at least equal to the product of (A)
                  the greater of (i) the On Plan Percentage (as defined below),
                  or (ii) the Actual Bonus Percentage (as defined below),
                  multiplied by (B) the Guaranteed Base Salary.

                           (ii) For purposes of this Section 3.3(b):

                                    (A) "On Plan Percentage" means the
                                percentage of Guaranteed Base Salary to which
                                the Executive would be entitled under the Bonus
                                Plan(s) for the Performance Period for which the
                                Guaranteed Bonus is awarded ("Current
                                Performance Period") if performance achieved
                                100% of the target performance goals established
                                pursuant to such Bonus Plan(s); or, if greater,
                                the percentage of Guaranteed Base Salary to
                                which Executive would have been entitled under
                                the Bonus Plan(s) for the Performance Period
                                ending immediately prior to the Post-Change
                                Period if performance achieved 100% of the
                                performance goals established pursuant to such
                                Bonus Plan(s) for such prior Performance Period.

                                    (B) "Actual Bonus Percentage" means the
                                percentage of Guaranteed Base Salary for the
                                Current Performance Period to which the
                                Executive would be entitled under any Bonus Plan
                                if the performance were measured by the actual
                                performance during the Current Performance
                                Period; provided, however, that for purposes of
                                determining the Guaranteed Bonus for purposes of
                                Sections 3.4 and 5.1(b), "Actual Bonus
                                Percentage" means the percentage of Guaranteed
                                Base Salary for the Performance Period during
                                which the Effective Date (for purposes of
                                Section 3.4) or Termination Date (for purposes
                                of Section 5.1(b)) occurs to which the Executive
                                would be entitled if the performance during such
                                Performance Period were measured by the actual
                                performance during the portion of such
                                Performance Period before the Effective Date or
                                the Termination Date (whichever is applicable),
                                projected to the last day of such Performance
                                Period.

                  (c) Incentive, Savings and Retirement Plans. During the
         Post-Change Period and notwithstanding the payment required by Section
         3.6, (i) the Executive shall be entitled to continue to participate in
         all incentive (including long-term incentives and management stock
         plans), savings, deferred compensation, retirement and benefit
         restoration Plans provided by the Company and applicable to other peer
         executives of the Company, but (ii) in no event shall such Plans
         provide the Executive with incentive (including long-term incentives
         and management stock benefits), savings, deferred compensation,
         retirement and benefit restoration benefits which, in any case, are
         less favorable, in the aggregate, than the most favorable of those
         provided by the Company to

                                      -8-
<PAGE>   137

         the Executive or to peer executives under such Plans as in effect at
         any time during the 90-day period immediately before any Effective
         Date.

                  (d) Welfare Benefit Plans. During the Post-Change Period, (i)
         the Executive and the Executive's family shall be eligible to
         participate in, and receive all benefits under, welfare benefit Plans
         (including, without limitation, medical, prescription, dental,
         disability, salary continuance, individual life, group life, dependent
         life, accidental death and travel accident insurance Plans) provided by
         the Company and applicable to other peer executives of the Company and
         their families, but (ii) in no event shall such Plans provide benefits
         which in any case are less favorable, in the aggregate, than the most
         favorable of those provided by the Company to the Executive or to peer
         executives under such Plans as in effect at any time during the 90-day
         period immediately before any Effective Date.

                  (e) Fringe Benefits. During the Post-Change Period, (i) the
         Executive shall be entitled to fringe benefits (including, without
         limitation, any foreign service travel and housing allowances for
         Executive and the Executive's family under Plans or Policies of the
         Company for foreign service) in accordance with the most favorable
         Plans provided by the Company and applicable to other peer executives
         of the Company, but (ii) in no event shall such Plans provide fringe
         benefits which in any case are less favorable, in the aggregate, than
         the most favorable of those provided by the Company to the Executive or
         peer executives under such Plans in effect at any time during the
         90-day period immediately before any Effective Date.

                  (f) Expenses. During the Post-Change Period, (i) the Executive
         shall be entitled to prompt reimbursement of all reasonable
         employment-related expenses incurred by the Executive upon the
         Company's receipt of accountings in accordance with the most favorable
         Policies applicable to peer executives of the Company, but (ii) in no
         event shall such Policies be less favorable, in the aggregate, than the
         most favorable of those provided by the Company to the Executive or to
         peer executives under such Policies in effect at any time during the
         90-day period immediately before any Effective Date.

                  (g) Office and Support Staff. During the Post-Change Period,
         (i) the Executive shall be entitled to an office or offices of a size
         and with furnishings and other appointments, and to secretarial and
         other assistance in accordance with the most favorable Policies
         applicable to peer executives of the Company, but (ii) in no event
         shall such Policies be less favorable, in the aggregate, than the most
         favorable of those provided by the Company to the Executive or to peer
         executives under such Policies in effect at any time during the 90-day
         period immediately before any Effective Date.

                  (h) Vacation. During the Post-Change Period, (i) the Executive
         shall be entitled to paid vacation in accordance with the most
         favorable Policies applicable to peer executives of the Company, but
         (ii) in no event shall such Policies be less favorable, in the
         aggregate, than the most favorable of those provided by the Company to
         the Executive or to peer executives under such Policies in effect at
         any time during the 90-day period immediately before any Effective
         Date.

                                       -9-
<PAGE>   138

         3.4 Pro-Rata Bonus Payment.

         On each Effective Date the Company shall pay to Executive in a single
lump sum in cash the product of (A) the Guaranteed Bonus for the Performance
Period in which falls the Effective Date, multiplied by (B) a fraction, the
numerator of which is the number of days in such Performance Period before the
Effective Date, and the denominator of which is the total number of days in such
Performance Period. The amount of Guaranteed Bonus for such Performance Period
otherwise payable pursuant to Section 3.3(b), or otherwise payable pursuant to
this Section 3.4 by reason of a later Change of Control in the same Performance
Period, shall be reduced by any earlier payment made under this Section 3.4 for
the same Performance Period.

         3.5 Equity Awards Vesting.

         On the Effective Date, the Executive shall become fully vested in:

                  (a) any and all outstanding options ("Options") to purchase
         common shares of the Company granted to Executive prior to the
         Effective Date under any Plan, contract or arrangement for Options,
         which Options shall become fully exercisable;

                  (b) any outstanding shares of restricted common shares of the
         Company regardless whether such restrictions are scheduled to lapse
         based on service or on performance or both ("Restricted Stock") awarded
         to Executive under any Plan, contract or arrangement for Restricted
         Stock; which shall become unrestricted and freely transferable; and

                  (c) any outstanding awards providing for the payment of a
         variable number of common shares of the Company dependent on the
         achievement of performance goals, or of an amount based on the fair
         market value of such shares or the appreciation thereof ("Performance
         Shares") awarded to Executive under any Plan, contract or arrangement
         for Performance Shares; and there shall be paid out in cash to
         Executive within 30 days following the Effective Date of the Change of
         Control the value of the Performance Shares to which Executive would
         have been entitled if performance achieved 100% of the target
         performance goals established for such Performance Shares.

         To the extent that for any reason such Options, Restricted Stock and
Performance Shares do not become vested on the Effective Date, the Company shall
pay Executive a cash amount equal to (i) the positive difference, if any,
between the value of the shares of common stock subject to the Options that did
not become vested (or, if greater, the value paid or to be paid in connection
with the Change of Control to a holder of an equal number of shares of common
stock ("Change of Control Value")) and the Option exercise price with respect to
such shares, as of and on the date such Options are forfeited; plus (ii) the
fair market value (determined without regard to any restriction other than a
restriction which by its terms may never lapse) (or, if greater, the Change of
Control Value) of all non-vested forfeited Restricted Stock and Performance
Shares as of and on the date such Restricted Stock or Performance Shares are
forfeited. Nothing in this Section 3.5 shall require the vesting, or payment, of
equity awards granted after such Effective Date unless a new Effective Date has
intervened

         3.6 Nonqualified Deferred Compensation.

                                      -10-
<PAGE>   139

         On the Effective Date Executive shall become fully vested in and the
Company shall pay to Executive in a single lump sum in cash (1) the value of
Executive's then-accrued benefits, if any, which remain unpaid under any
nonqualified deferred compensation, benefit restoration, excess benefit or other
individual account plan, contract or arrangement for deferred compensation
maintained by the Company under which benefits are calculated by reference to an
individual account (a "Deferral Plan"), and (2) the Present Value of Executive's
then-accrued benefits, if any, which remain unpaid under any nonqualified
supplemental executive retirement plan or other plan, contract or arrangement
for retirement benefits maintained by the Company under which benefits are
calculated by reference to a defined amount payable in connection with or after
retirement or other termination of employment an (a "SERP").

                                  ARTICLE IV.
                            TERMINATION OF EMPLOYMENT

         4.1 Disability.

                  (a) During the Post-Change Period, the Company may terminate
         the Executive's employment upon the Executive's Disability (as defined
         in Section 4.1(b)) by giving the Executive or his legal representative,
         as applicable, Notice of Termination accompanied by a certification of
         the Executive's Disability by a physician selected by the Company or
         its insurers and reasonably acceptable to the Executive or the
         Executive's legal representative. The Executive's employment shall
         terminate effective on the 30th day (the "Disability Effective Date")
         after the Executive's receipt of such Notice of Termination unless,
         before the Disability Effective Date, the Executive shall have resumed
         the full-time performance of the Executive's duties.

                  (b) "Disability" means any medically determinable physical or
         mental impairment that has lasted for a continuous period of not less
         than six months and can be expected to be permanent or of indefinite
         duration, and that renders the Executive unable to perform the
         essential functions required under this Agreement with or without
         reasonable accommodation.

                  (c) Unless the Company establishes, by clear and convincing
         evidence, that Executive has a Disability, any purported termination of
         employment for Disability shall be deemed a termination other than for
         Disability for all purposes of this Agreement.

         4.2 Death. The Executive's employment shall terminate automatically
upon the Executive's death during the Post-Change Period.

         4.3 Cause.

                  (a) During the Post-Change Period, the Company may terminate
         the Executive's employment for Cause.

                  (b) "Cause" means any of the following: Executive's conviction
         of a felony or of a crime involving fraud, dishonesty or moral
         turpitude; Executive's willful or intentional material breach of this
         Agreement that results in financial detriment that is

                                      -11-
<PAGE>   140

         material to the Company as a whole; or willful or intentional
         misconduct by Executive in the performance of his duties under this
         Agreement that results in financial detriment that is material to the
         Company as a whole; except that Cause shall not mean:

                  (i) bad judgment or negligence;

                  (ii) any act or omission believed by the Executive in good
         faith to have been in or not opposed to the interest of the Company
         (without intent of the Executive to gain, directly or indirectly, a
         profit to which the Executive was not legally entitled);

                  (iii) any act or omission with respect to which a
         determination could properly have been made by the Board that the
         Executive met the applicable standard of conduct for indemnification or
         reimbursement under the Company's by-laws, any applicable
         indemnification agreement, or applicable law, in each case in effect at
         the time of such act or omission; or

                  (iv) any act or omission with respect to which Notice of
         Termination is not given within 12 months after the earliest date on
         which any member of the Board, not a party to the act or omission, knew
         or should have known of such act or omission.

         (c) The Company may not during the Post-Change Period terminate
Executive's employment for Cause unless the following procedures are fully
complied with:

                  (i) no fewer than 45 days prior to the Termination Date, the
         Company provides Executive with written notice (the "Notice of
         Consideration") of its intent to consider termination of Executive's
         employment for Cause, including a detailed description of the specific
         reasons which form the basis for such consideration;

                  (ii) if after providing Notice of Consideration, the Board
         may, by the affirmative vote of at least 80% of its members (excluding
         for this purpose Executive if he is a member of the Board, and any
         other member of the Board reasonably believed by the Board to be
         involved in the events issuing the Notice of Consideration), suspend
         Executive with pay until a final determination pursuant to this Section
         has been made;

                  (iii) for a period of not less than 30 days after the date
         Notice of Consideration is provided, Executive shall have the
         opportunity to appear before the Board, with or without legal
         representation, at Executive's election, to present arguments and
         evidence on his own behalf; and

                  (iv) following the presentation to the Board as provided in
         (3) above or Executive's failure to appear before the Board at a date
         and time specified in the Notice of Consideration (which date shall not
         be less than 30 days after the date the Notice of Consideration is
         provided), Executive may be terminated for Cause

                                      -12-
<PAGE>   141

         only if (i) the Board, by the affirmative vote of at least 80% of its
         members (excluding Executive if he is a member of the Board, and any
         other member of the Board reasonably believed by the Board to be
         involved in the events leading the Board to terminate Executive for
         Cause), determines that the actions or inactions of Executive specified
         in the Notice of Consideration occurred, that such actions or inactions
         constitute Cause, and that Executive's employment should accordingly be
         terminated for Cause; and (ii) the Board provides Executive with a
         written determination (a "Notice of Termination for Cause") setting
         forth in specific detail the basis of such Termination of Employment,
         which Notice of Termination for Cause shall be consistent with the
         reasons set forth in the Notice of Consideration.

         Unless the Company establishes, by clear and convincing evidence, both
(x) its full compliance with the substantive and procedural requirements of this
Section prior to a termination of employment for Cause, and (y) that Executive's
action or inaction specified in the Notice of Termination for Cause did occur
and constituted Cause, any purported termination of employment for Cause shall
be deemed a termination without Cause for all purposes of this Agreement.

         4.4 Good Reason.

                  (a) During the Post-Change Period, the Executive may terminate
         employment for Good Reason within 12 months following the Executive's
         actual knowledge of an act or omission which constitutes Good Reason;
         provided, however, that the Executive's failure to terminate within 12
         months following Executive's actual knowledge of a particular act or
         omission which constitutes Good Reason shall not prevent Executive's
         termination for any other act or omission which constitutes Good
         Reason.

                  (b) "Good Reason" means any of the following:

                           (i) the assignment to the Executive of any duties
                  inconsistent in any respect with the Executive's position
                  (including offices, titles, reporting requirements or
                  responsibilities), authority or duties as prescribed by
                  Section 3.2(a)(1), or the Company's requiring the Executive to
                  be based at any office or location other than the location
                  described in Section 3.2(a)(2);or any other action by the
                  Company which results in a diminution or other material
                  adverse change in such position, authority or duties;

                           (ii) the failure to pay Guaranteed Base Salary in at
                  least the amount prescribed by Section 3.2(a);

                           (iii) the failure to pay Guaranteed Bonus in at least
                  the amount prescribed by Section 3.3(b); provided, however,
                  that if the Post-Change Period results solely from a Growth
                  Transaction; Good Reason under this clause (iii) shall only be
                  the failure to provide Executive with a bonus opportunity
                  (including designation of target performance goals and
                  percentage of Guaranteed Base Salary payable on achievement of
                  target performance goals) no less favorable to

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                  Executive than that provided by the Company to Executive for
                  either of the two most recent Performance Periods beginning
                  before such Growth Transaction;

                           (iv) the failure to provide any plan or fringe
                  benefits or perquisites prescribed by Sections 3.3(c) through
                  3.3(h), as modified, if the Post-Change Period results solely
                  from a Growth Transaction, by Section 3.1(b);

                           (v) any other failure by the Company to comply with
                  any of the provisions of Article III;

                           (vi) any other material adverse change to the terms
                  and conditions of the Executive's employment (whether or not
                  also described in clauses (i) through (v) above);

                           (vii) the Board's giving Notice of Consideration
                  pursuant to Section 4.3(c) (of the intent to consider
                  terminating Executive for Cause) but failing to terminate
                  Executive for Cause within a period of 90 days thereafter in
                  compliance with all substantive and procedural requirements of
                  Section 4.3,

                           (viii) any purported termination by the Company of
                  the Executive's employment other than as expressly permitted
                  by this Agreement (any such purported termination shall not be
                  effective for any other purpose under this Agreement);

                           (ix) a failure by the Company to cause a successor,
                  prior to or as of the date it becomes a successor, to assume
                  and agree to perform this Agreement in accordance with the
                  provisions of Section 11.2 hereof.

         Any determination by Executive that any of the foregoing events has
         occurred and constitutes "Good Reason" shall be conclusive and binding
         for all purposes unless the Company establishes by clear and convincing
         evidence that Executive did not have a reasonable basis for such a
         determination.

                  (c) Any termination of employment by the Executive for Good
         Reason shall be communicated to the Company by Notice of Termination.
         The passage of time not in excess of 12 months after the Executive has
         actual knowledge of an act or omission which constitutes Good Reason
         prior to delivery of Notice of Termination or a failure by the
         Executive to include in the Notice of Termination any fact or
         circumstance which contributes to a showing of Good Reason shall not
         waive any right of the Executive under this Agreement or preclude the
         Executive from asserting such fact or circumstance in enforcing rights
         under this Agreement.

                                   ARTICLE V.
                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

         5.1 If by the Executive for Good Reason or by the Company Other Than
for Cause or Disability. If, during the Post-Change Period, the Company shall
terminate Executive's

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<PAGE>   143

employment other than for Cause, Disability, or death or if the Executive shall
terminate employment for Good Reason, the Company shall pay the Executive within
five (5) days of the Termination Date (or if earlier within five (5) days of the
last day Executive performed services for the Company as an Employee), in
addition to all vested rights arising from the Executive's employment as
specified in Article III, a cash amount equal to the sum of the amounts
described in (a) through (g) below and the additional benefits described in (h)
through (i) below:

                  (a) The Guaranteed Base Salary, any accrued vacation pay and
         business expenses incurred through the Termination Date, to the extent
         not previously paid to the Executive by the Company.

                  (b) The difference between (1) the product of (A) the
         Guaranteed Bonus, multiplied by (B) a fraction, the numerator of which
         is the number of days in the Termination Performance Period which
         elapsed before the Termination Date, and the denominator of which is
         the total number of days in the Termination Performance Period, and (2)
         the amount of any Guaranteed Bonus previously paid to the Executive by
         the Company with respect to the Termination Performance Period.

                  (c) The value of Executive's then-accrued benefits under any
         Deferral Plan plus the present value of Executive's then-accrued
         benefits under any SERP, determined without disregarding service and
         compensation before any Effective Date but then reduced by the amount,
         if any, previously paid to the Executive by the Company pursuant to
         Section 3.6.

                  (d) An amount equal to the product of (1) three (3.0),
         multiplied by (2) the sum of (A) the Guaranteed Base Salary and (B) the
         Guaranteed Bonus.

                  (e) An amount equal to the sum of the value of the unvested
         portion of the Executive's accounts or accrued benefits under any
         qualified plan maintained by the Company as of the Termination Date.

                  (f) The difference between (1) the amount that would be
         determined under Section 5.1(c) above if such amount were calculated
         (to the extent applicable in determining such amount) (A) as though the
         Executive continued to accrue benefits and be credited with service
         under the SERP for a period of three years after the Termination Date,
         (B) as though the Executive received compensation during each year of
         such three-year period equal to the sum of the Guaranteed Base Salary
         and the highest Guaranteed Bonus paid (or payable) to the Executive in
         the three calendar years preceding the Termination Date, (C) as though
         the Executive were three (3) years older than his age at the
         Termination Date, and (D) without disregarding service and compensation
         before the Termination Date; reduced by (2) the amount (if any)
         previously or simultaneously paid by the Company to the Executive
         pursuant to Sections 3.6 and 5.1(c).

                  (g) In addition to the foregoing amounts, the Company shall
         pay on behalf of Executive all fees and costs charged by the
         outplacement firm selected by the Executive to provide outplacement
         services or at the election of the Executive, an immediate cash

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<PAGE>   144

         payment equal to the fees and expenses such outplacement firm would
         charge but not in excess of 20% of the Guaranteed Base Salary.

                  (h) In addition to the foregoing payments, until the third
         annual anniversary of the Termination Date or such later date as any
         Plan of the Company may specify, the Company shall continue to provide
         to the Executive and the Executive's family welfare benefits
         (including, without limitation, medical, prescription, dental,
         disability, salary continuance, individual life, group life, accidental
         death and travel accident insurance plans and programs) which are at
         least as favorable as the most favorable Plans of the Company
         applicable to other peer executives and their families as of the
         Termination Date, but which are in no event less favorable than the
         most favorable Plans of the Company applicable to other peer executives
         and their families during the 90-day period immediately before the
         Effective Date; and the cost of such welfare benefits to Executive
         shall not exceed the cost of such benefits to the Executive immediately
         before the Termination Date or, if less, the Effective Date.

                  (i) Beginning on the later of the third annual anniversary of
         the Termination Date or the date Executive attains age 50, and
         continuing until the death of the last to die of Executive and his or
         her spouse, the Company shall provide to the Executive and to
         Executive's family medical benefits which (1) until Executive attains
         age sixty-five (65) are at least as favorable as the most favorable
         medical Plans of the Company applicable to actively employed peer
         executives and that covered any active employee of the Company as of
         the Effective Date, and (2) from and after the date Executive attains
         age 65, are at least as favorable as the most favorable medical Plans
         of the Company applicable to eligible retired peer executives and that
         covered any retired employee as of the Effective Date; and the cost to
         Executive of such medical benefits for the period described in clause
         (1) shall not exceed the cost of such benefits to Executive immediately
         before the Termination Date or, if less, the Effective Date, and the
         cost to Executive of such medical benefits for the period described in
         clause (2) shall not exceed the cost of such benefits to any similarly
         situated eligible retiree of the Company immediately before the
         Termination Date or, if less, the Effective Date.

The Executive's rights under this Section 5.1 shall be in addition to, and not
in lieu of, any post-termination continuation coverage or conversion rights the
Executive may have pursuant to applicable law, including without limitation
continuation coverage required by Section 4980 of the Code or Part 6 of Title I
of the Employee Retirement Income Security Act of 1974, as amended, for which
purpose the date of the qualifying event shall not be earlier than the date
specified in the first sentence of Section 5.1(i). However, if the Executive is
covered under a medical, life, or disability insurance plan provided by a
subsequent employer at equal or lesser cost to Executive than the cost to
Executive of coverage under the corresponding Company plan required by Sections
5.1(i), then the benefits under the corresponding Company plan required by
Sections 5.1(i) shall be secondary to the benefits under the subsequent
employer's medical, life, or disability insurance plan.

         5.2 If by the Company for Cause. If the Company terminates the
Executive's employment for Cause during the Post-Change Period pursuant to the
procedures set forth in Section 4.3, this Agreement shall terminate without
further obligation by the Company to the

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<PAGE>   145

Executive, other than the obligation immediately to pay the Executive in cash
the Executive's Guaranteed Base Salary through the Termination Date, plus the
amount of any compensation previously deferred by the Executive, plus any
accrued vacation pay and business expenses incurred through the Termination
Date, in each case to the extent not previously paid or reimbursed.

         5.3 If by the Executive Other Than for Good Reason. If the Executive
terminates employment during the Post-Change Period other than for Good Reason,
Disability or death, this Agreement shall terminate without further obligations
by the Company, other than the obligation immediately to pay the Executive in
cash all amounts specified in paragraphs (a), (b) and (c) of Section 5.1 (such
amounts collectively, the "Accrued Obligations").

         5.4 If by the Company for Disability. If the Company terminates the
Executive's employment by reason of the Executive's Disability during the
Post-Change Period, this Agreement shall terminate without further obligations
to the Executive, other than:

                  (a) the Company's obligation immediately to pay the Executive
         in cash all Accrued Obligations, and

                  (b) the Executive's right after the Disability Effective Date
         to receive disability and other benefits at least equal to the greater
         of (i) those provided under the most favorable disability Plans
         applicable to disabled peer executives of the Company in effect
         immediately before the Termination Date or (ii) those provided under
         the most favorable disability Plans of the Company in effect at any
         time during the 90-day period immediately before the Effective Date.

         5.5 If upon Death. If the Executive's employment is terminated by
reason of the Executive's death during the Post-Change Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than the obligation immediately to
pay the Executive's estate or beneficiary in cash all Accrued Obligations.
Despite anything in this Agreement to the contrary, the Executive's family shall
be entitled to receive benefits at least equal to the most favorable benefits
provided by the Company to the surviving families of peer executives of the
Company under such Plans, but in no event shall such Plans provide benefits
which in each case are less favorable, in the aggregate, than the most favorable
of those provided by the Company to the Executive under such Plans in effect at
any time during the 90-day period immediately before the Effective Date.

                                  ARTICLE VI.
                            NON-EXCLUSIVITY OF RIGHTS

         6.1 Waiver of Other Severance Rights. To the extent that payments are
made to the Executive pursuant to Section 5.1, the Executive hereby waives the
right to receive severance payments under any other Plan or agreement of or with
the Company.

         6.2 Other Rights. Except as provided in Section 6.1, this Agreement
shall not prevent or limit the Executive's continuing or future participation in
any benefit, bonus, incentive or other Plans provided by the Company or any of
its Subsidiaries and for which the Executive may

                                      -17-
<PAGE>   146

qualify, nor shall this Agreement limit or otherwise affect such rights as the
Executive may have under any other agreements with the Company or any of its
Subsidiaries. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any Plan of the Company or any of its
Subsidiaries and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such Plan or applicable law
except as expressly modified by this Agreement.

                                  ARTICLE VII.
                   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY

         7.1 Gross-up for Certain Taxes. If it is determined (by the reasonable
computation of the Company's independent auditors, which determinations shall be
certified to by such auditors and set forth in a written certificate
("Certificate") delivered to the Executive) that any benefit received or deemed
received by the Executive from the Company pursuant to this Agreement or
otherwise (collectively, the "Payments") is or will become subject to any excise
tax under Section 4999 of the Code or any similar tax payable under any United
States federal, state, local or other law (such excise tax and all such similar
taxes collectively, "Excise Taxes"), then the Company shall, immediately after
such determination, pay the Executive an amount (the "Gross-up Payment") equal
to the product of

                  (a) the amount of such Excise Taxes

multiplied by

                  (b) the Gross-up Multiple (as defined in Section 7.4).

The Gross-up Payment is intended to compensate the Executive for the Excise
Taxes and any federal, state, local or other income or excise taxes or other
taxes payable by the Executive with respect to the Gross-up Payment.

         The Executive or the Company may at any time request the Company's
independent auditors to prepare and deliver a Certificate to the Executive. The
Company shall, in addition to complying with Section 7.2, cause all
determinations and certifications under the Article to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and
file the Executive's individual tax returns on a timely basis.

         7.2 Determination by the Executive.

                  (a) If the Company or its independent auditors shall fail to
         deliver a Certificate to the Executive (and to pay to the Executive the
         amount of the Gross-up Payment, if any) within 14 days after receipt
         from the Executive of a written request for a Certificate, or if at any
         time following receipt of a Certificate the Executive disputes the
         amount of the Gross-up Payment set forth therein, the Executive may
         elect to demand the payment of the amount which the Executive, in
         accordance with an Executive Counsel Opinion), (as defined in Section
         7.5), determines to be the Gross-up Payment. Any such demand by the
         Executive shall be made by delivery to the Company of a written notice
         which specifies the Gross-up Payment determined by the Executive and an
         Executive

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<PAGE>   147

         Counsel Opinion regarding such Gross-up Payment (such written notice
         and opinion collectively, the "Executive's Determination"). Within 14
         days after delivery of the Executive's Determination to the Company,
         the Company shall either (1) pay the Executive the Gross-up Payment set
         forth in the Executive's Determination (less the portion of such
         amount, if any, previously paid to the Executive by the Company) or (2)
         deliver to the Executive a Certificate specifying the Gross-up Payment
         determined by the Company's independent auditors, together with a
         Company Counsel Opinion (as defined in Section 7.5), and pay the
         Executive the Gross-up Payment specified in such Certificate. If for
         any reason the Company fails to comply with clause (2) of the preceding
         sentence, the Gross-up Payment specified in the Executive's
         Determination shall be controlling for all purposes.

                  (b) If the Executive does not make a request for, and the
         Company does not deliver to the Executive, a Certificate, the Company
         shall, for purposes of Section 7.3, be deemed to have determined that
         no Gross-up Payment is due.

         7.3 Additional Gross-up Amounts. If the amount of Excise Taxes payable
by the Executive with respect to all Payments is determined (pursuant to the
subsequently-enacted provisions of the Code, final regulations or published
rulings of the IRS, final judgment of a court of competent jurisdiction or the
Company's independent auditors) to be greater than the amount previously paid by
the Company to the Executive pursuant to Section 7.1 or 7.2, as applicable, then
the Company shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

                  (a) the sum of (i) such additional Excise Taxes and (ii) any
         interest, fines, penalties, expenses or other costs incurred by the
         Executive as a result of having taken a position in accordance with a
         determination made pursuant to Section 7.1,

multiplied by

                  (b) the Gross-up Multiple.

         7.4 Gross-up Multiple. The Gross-up Multiple shall equal the quotient
(greater than one (1.0)) of one (1.0) divided by one (1.0) minus the sum,
expressed as a decimal fraction, of the rates of all federal, state, local and
other income and other taxes and any Excise Taxes applicable to the Gross-up
Payment; provided that, if such sum exceeds 0.75, it shall be deemed equal to
0.75 for purposes of this computation. (If different rates of tax are applicable
to various portions of a Gross-up Payment, the weighted average of such rates
shall be used.)

         7.5 Opinion of Counsel. "Executive Counsel Opinion" means a legal
opinion of nationally recognized executive compensation counsel who is counsel
to the Executive that there is a reasonable basis to support a conclusion that
the Gross-up Payment determined by the Executive has been calculated in accord
with this Article and applicable law. "Company Counsel Opinion" means a legal
opinion of nationally recognized executive compensation counsel who is counsel
to the Company that (a) there is a reasonable basis to support a conclusion that
the Gross-up Payment set forth of the Certificate of Company's independent

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auditors has been calculated in accord with this Article and applicable law, and
(b) there is no reasonable basis for the calculation of the Gross-up Payment
determined by the Executive.

         7.6 Amount Increased or Contested. The Executive shall notify the
Company in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by the Company of a Gross-up Payment. Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid. The Executive shall give such notice as soon as practicable,
but no later than 10 business days, after the Executive first obtains actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such notice shall affect the Company's obligations under this Article
only if and to the extent that such failure results in actual prejudice to the
Company. The Executive shall not pay such claim less than 30 days after the
Executive gives such notice to the Company (or, if sooner, the date on which
payment of such claim is due). If the Company notifies the Executive in writing
before the expiration of such period that it desires to contest such claim, the
Executive shall:

                  (a) give the Company any information that it reasonably
         requests relating to such claim,

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

                  (c) cooperate with the Company in good faith to contest such
         claim, and

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax (to the extent not previously paid by the
Company to the Executive) or income tax, including related interest and
penalties, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing, the Company shall control all
proceedings in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner. The Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify the Executive, on an after-tax basis, for any Excise Tax or income
tax, including related interest or penalties, imposed with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. The Company's control of the contest shall be

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limited to issues with respect to which a Gross-up Payment would be payable. The
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the IRS or other taxing authority.

         7.7 Refunds. If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 7.6, the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 7.6) promptly pay
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 7.6, a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such determination before the expiration of 30
days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-up Payment required to be paid. Any contest
of a denial of refund shall be controlled by Section 7.6.

                                 ARTICLE VIII.
                              EXPENSES AND INTEREST

         8.1 Legal Fees and Other Expenses.

                  (a) If the Executive incurs legal, accounting and other fees
         or other expenses in a good faith effort to obtain benefits under this
         Agreement (including, without limitation, the fees and other expenses
         of the Executive's legal counsel, any expert witness fees and expenses,
         and accounting and other fees and expenses, including legal and
         accounting fees and expenses in connection with the delivery of the
         Executive Counsel Opinion referred to in Article VII), regardless of
         whether the Executive ultimately prevails, the Company shall reimburse
         the Executive on a monthly basis upon the written request for such fees
         and expenses to the extent not previously reimbursed under the
         Company's officers and directors liability insurance policy, if any.
         Simultaneously with each such payment Company shall pay Executive an
         amount such that after payment of incremental United States federal,
         state and local income, excise and other taxes payable by Executive
         ("Taxes") with respect to such tax reimbursement, there remains a
         balance sufficient to pay the Taxes on the reimbursement of such fees
         and expenses. The existence of any controlling case or regulatory law
         which is directly inconsistent with the position taken by the Executive
         shall be evidence that the Executive did not act in good faith.
         Executive's payment of such fees and expenses shall be a conclusive
         determination with respect to the Company that such fees and expenses
         are reasonable.

                  (b) Reimbursement of legal fees and expenses shall be made
         monthly upon the written submission of a request for reimbursement
         together with evidence that such fees and expenses are due and payable
         or were paid by the Executive. If the Company shall have reimbursed the
         Executive for legal fees and expenses and it is later determined

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         that the Executive was not acting in good faith, all amounts paid on
         behalf of, or reimbursed to, the Executive shall be promptly refunded
         to the Company.

                  (c) To secure its obligations under this Section 8.1 the
         Company shall procure and maintain in force during the Agreement Term
         and thereafter for one (1) year or if longer until the termination (by
         final judgment and after all rights of appeal have been exhausted or
         waived) of any litigation involving a good faith effort of an Executive
         to obtain benefits under this Agreement, a letter of credit and an
         escrow in favor of Executive (together with other executives similarly
         situated). The letter of credit shall be issued by a bank or trust
         company organized under the laws of the United States or Canada or a
         state or province thereof and having a combined capital and surplus of
         not less than one hundred million dollars ($100,000,000), shall be in
         the aggregate amount of five hundred thousand dollars ($500,000) prior
         to July 1, 2001, and in the aggregate amount of two million dollars
         ($2,000,000) on and after July 1, 2001, and shall be substantially in
         the form of that attached (with its attached Annexes and Exhibits) to
         this Agreement as Exhibit A. The escrow shall be maintained in the
         state of Illinois under an escrow agreement with a bank or trust
         company organized under the laws of the United States or Canada or a
         state or province thereof and having a combined capital and surplus of
         not less than one hundred million dollars ($100,000,000), and shall be
         substantially in the form of that attached (with its attached Exhibits)
         to this Agreement as Exhibit B.

         8.2 Interest. If the Company does not pay any amount due to the
Executive under this Agreement within three days after such amount became due
and owing, interest shall accrue on such amount from the date it became due and
owing until the date of payment at a annual rate equal to two percent (2.0%)
above the base commercial lending rate announced by the Company's principal
revolving credit lender in effect from time to time during the period of such
nonpayment; or, if the Company does not have a principal revolving credit
lender, then at two percent (2.0%) above the prime rate of interest in effect
from time to time during the period of such nonpayment, as reported from time to
time in the Wall Street Journal; but in no case greater than the maximum rate of
interest permitted by applicable law.

                                  ARTICLE IX.
                            NO SET-OFF OR MITIGATION

         9.1 No Set-off or Defenses by Company. The Executive's right to receive
when due the payments and other benefits provided for under this Agreement is
absolute, unconditional and shall not be subject to any set-off, counterclaim or
legal or equitable defense. The exclusive method for the Company to avoid
payments to the Executive under this Agreement, to the extent specified in this
Agreement, is to terminate Executive's employment for Cause pursuant to Sections
4.3 and 5.2 of this Agreement. Time is of the essence in the performance by the
Company of its obligations under this Agreement. Any claim which the Company may
have against the Executive, whether for a breach of this Agreement or otherwise,
shall be brought in a separate action or proceeding and not as part of any
action or proceeding brought by the Executive to enforce any rights against the
Company under this Agreement.

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         9.2 No Mitigation. The Executive shall not have any duty to mitigate
the amounts payable by the Company under this Agreement by seeking new
employment following termination. Except as specifically otherwise provided in
this Agreement, all amounts payable pursuant to this Agreement shall be paid
without reduction regardless of any amounts of salary, compensation or other
amounts which may be paid or payable to the Executive as the result of the
Executive's employment by another employer.

                                   ARTICLE X.
                       CONFIDENTIALITY AND NONCOMPETITION

         10.1 Confidentiality. Executive acknowledges that it is the policy of
the Company and its subsidiaries to maintain as secret and confidential all
valuable and unique information and techniques acquired, developed or used by
the Company and its Subsidiaries relating to their business, operations,
employees and customers, which gives the Company and its subsidiaries a
competitive advantage in the construction and engineering industry and other
businesses in which the Company and its subsidiaries are engaged ("Confidential
Information"). Executive recognizes that all such Confidential Information is
the sole and exclusive property of the Company and its Subsidiaries, and that
disclosure of Confidential Information would cause damage to the Company and its
Subsidiaries. Executive agrees that, except as required by the duties of his
employment with the Company and/or its Subsidiaries and except in connection
with enforcing the Executive's rights under this Agreement or if compelled by a
court or governmental agency, he will not, without the consent of the Company,
disseminate or otherwise disclose any Confidential Information obtained during
his employment with the Company and/or its Subsidiaries for so long as such
information is valuable and unique.

         10.2 Noncompetition/Nonsolicitation.

                  (a) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive will not at any time directly or indirectly, in any capacity,
         engage or participate in, or become employed by or render advisory or
         consulting or other services in connection with any Prohibited Business
         as defined in Section 10.2(d).

                  (b) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive shall not make any financial investment, whether in the form
         of equity or debt, or own any interest, directly or indirectly, in any
         Prohibited Business. Nothing in this Section 10.2(b) shall, however,
         restrict Executive from making any investment in any company whose
         stock is listed on a national securities exchange or actively traded in
         the over-the-counter market; provided that (1) such investment does not
         give Executive the right or ability to control or influence the policy
         decisions of any Prohibited Business, and (2) such investment does not
         create a conflict of interest between Executive's duties hereunder and
         Executive's interest in such investment.

                                      -23-
<PAGE>   152

                  (c) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive shall not (1) employ any employee of the Company and/or its
         Subsidiaries or (2) interfere with the Company's or any of its
         Subsidiaries' relationship with, or endeavor to entice away from the
         Company and/or its Subsidiaries any person, firm, corporation, or other
         business organization who or which at any time (whether before or after
         the date of Executive's termination of employment), was an employee,
         customer, vendor or supplier of, or maintained a business relationship
         with, any business of the Company and/or its Subsidiaries which was
         conducted at any time during the period commencing one year prior to
         the termination of employment.

                  (d) For the purpose of this Section 10.2, "Prohibited
         Business" shall be defined as any construction and engineering business
         specializing in the engineering and design, materials procurement,
         fabrication, erection, repair and modification of steel tanks and other
         steel plate structures and associated systems and any branch, office or
         operation thereof, which is a direct and material competitor of the
         Company wherever the Company does business, including the Netherlands,
         the United States and any other country.

         10.3 Remedy. Executive and the Company specifically agree that, in the
event that Executive shall breach his obligations under this Article X, the
Company and its Subsidiaries will suffer irreparable injury and no adequate
remedy for such breach, and shall be entitled to injunctive relief therefor, and
in particular, without limiting the generality of the foregoing, the Company
shall not be precluded from pursuing any and all remedies it may have at law or
in equity for breach of such obligations; provided, however, that such breach
shall not in any manner or degree whatsoever limit, reduce or otherwise affect
the obligations of the Company under this Agreement, and in no event shall an
asserted breach of the Executive's obligations under this Article X constitute a
basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement.

                                  ARTICLE XI.
                                 MISCELLANEOUS

         11.1 No Assignability. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

         11.2 Successors. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to assume expressly and agree to perform this Agreement.
Any successor to the business and/or assets of the Company which assumes and
agrees to perform this Agreement by operation of law, contract, or otherwise
shall be jointly and severally liable with the Company under this Agreement.

                                      -24-
<PAGE>   153

         11.3 Payments to Beneficiary. If the Executive dies before receiving
amounts to which the Executive is entitled under this Agreement, such amounts
shall be paid as soon as administratively practicable in a lump sum to the
beneficiary designated in writing by the Executive, or if none is so designated,
to the Executive's estate.

         11.4 Non-alienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

         11.5 Severability. If any one or more articles, sections or other
portions of this Agreement are declared by any court or governmental authority
to be unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any article, section or other portion not so declared to be unlawful
or invalid. Any article, section or other portion so declared to be unlawful or
invalid shall be construed so as to effectuate the terms of such article,
section or other portion to the fullest extent possible while remaining lawful
and valid.

         11.6 Amendments. Except as provided in Section 2.2 hereof, this
Agreement shall not be altered, amended or modified except by written instrument
executed by the Company and Executive.

         11.7 Notices. All notices and other communications under this Agreement
shall be in writing and delivered by hand or by first class registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

                   If to the Executive:

                   Mr. Timothy J. Wiggins
                   2205 Hanford Lane
                   Aurora, Illinois  60504

                   If to the Company (including any or all of CBICNV, CBIC or
                   CBICD):

                   Chicago Bridge & Iron Company
                   1501 North Division Street
                   Plainfield, Illinois  60544
                   Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing. Notice and communications shall be effective when actually received by
the addressee.

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

         11.9 Governing Law. This Agreement shall be interpreted and construed
in accordance with the laws of the State of Illinois, without regard to its
choice of law principles.

                                      -25-
<PAGE>   154

         11.10 Captions. The captions of this Agreement are not a part of the
provisions hereof and shall have no force or effect.

         11.11 Tax Withholding. The Company may withhold from any amounts
payable under this Agreement any federal, state or local taxes that are required
to be withheld pursuant to any applicable law or regulation.

         11.12 Joint and Several Obligations. The obligations of the Company
under this Agreement are joint and several obligations of CBICNV, CBIC and
CBICD; provided, however, that each of CBICNV, CBIC and CBICD may agree between
themselves but without adversely affecting the rights of the Executive which of
them shall provide any particular payment or benefit under this Agreement.

         11.13 No Waiver. The Executive's failure to insist upon strict
compliance with any provision of this Agreement shall not be deemed a waiver of
such provision or any other provision of this Agreement. A waiver of any
provision of this Agreement shall not be deemed a waiver of any other provision,
and any waiver of any default in any such provision shall not be deemed a waiver
of any later default thereof or of any other provision.

         11.14 Prior Agreement. The Change of Control Severance Agreement dated
March 4, 1999, between CBIC and the Executive is hereby terminated effective on
the date of this Agreement.

         11.15 Entire Agreement. This Agreement contains the entire
understanding of the Company and the Executive with respect to its subject
matter and supercedes any prior change of control severance agreement and any
Change of Control severance benefit provisions in any prior employment agreement
between the Company and the Executive.

                                      -26-
<PAGE>   155

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

                                              EXECUTIVE

                                               /s/ Timothy J. Wiggins
                                              ----------------------------------
                                              Timothy J. Wiggins

                                              CHICAGO BRIDGE & IRON COMPANY N.V.

                                              by: Chicago Bridge & Iron Company
                                              B.V., its sole Managing Director

                                              By: /s/ Gerald M. Glenn
                                                  ------------------------------
                                              Title: Managing Director
                                                     ---------------------------

                                              CHICAGO BRIDGE & IRON COMPANY

                                              By: /s/ Robert B. Jordan
                                                  ------------------------------
                                              Title:
                                                     ---------------------------

                                              CHICAGO BRIDGE & IRON COMPANY
                                              (DELAWARE)

                                              By: /s/ Timothy J. Wiggins
                                                  ------------------------------
                                              Title:
                                                     ---------------------------

                                      -27-
<PAGE>   156

                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

<PAGE>   157

                                TABLE OF CONTENTS

<TABLE>
<S>         <C>                                                             <C>

Article I.  PURPOSES..........................................................1

Article II. CERTAIN DEFINITIONS...............................................1
   2.1      "Accrued Obligations".............................................1
   2.2      "Agreement Term"..................................................1
   2.3      "Affiliate".......................................................2
   2.4      "Article".........................................................2
   2.5      "Beneficial Owner"................................................2
   2.6      "Board"...........................................................2
   2.7      "Cause"...........................................................2
   2.8      "Change of Control"...............................................2
   2.9      "Code"............................................................3
   2.10     "Deferral Plan"...................................................3
   2.11     "Disability"......................................................4
   2.12     "Effective Date"..................................................4
   2.13     "Good Reason".....................................................4
   2.14     "Gross-up Payment"................................................4
   2.15     "Growth Transaction"..............................................4
   2.16     "Imminent Control Change Date"....................................4
   2.17     "IRS".............................................................4
   2.18     "1934 Act"........................................................4
   2.19     "Notice of Termination"...........................................4
   2.20     "Plans"...........................................................5
   2.21     "Policies" .......................................................5
   2.22     "Post-Change Period"..............................................5
   2.23     "Present Value"...................................................5
   2.24     "SEC".............................................................5
   2.25     "Section".........................................................5
   2.26     "SERP"............................................................5
   2.27     "Shareholder Agreement"...........................................5
   2.28     "Subsidiary"......................................................5
   2.29     "Termination Date"................................................5
   2.30     "Transaction Owner"...............................................6
   2.31     "Voting Securities"...............................................6

Article III. POST-CHANGE PERIOD PROTECTIONS...................................6
   3.1      General...........................................................6
   3.2      Position and Duties...............................................6
   3.3      Compensation......................................................7
   3.4      Pro-Rata Bonus Payment............................................9
   3.5      Equity Awards Vesting............................................10
   3.6      Nonqualified Deferred Compensation...............................10

Article IV. TERMINATION OF EMPLOYMENT........................................11

</TABLE>

                                      -i-

<PAGE>   158

                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                           PAGE
                                                                           ----
<S>       <C>                                                              <C>

   4.1    Disability........................................................11
   4.2    Death.............................................................11
   4.3    Cause.............................................................11
   4.4    Good Reason.......................................................13

Article V. OBLIGATIONS OF THE COMPANY UPON TERMINATION......................14
   5.1    If  by the Executive for Good Reason or by the Company
          Other Than for Cause or Disability................................14
   5.2    If by the Company for Cause.......................................16
   5.3    If by the Executive Other Than for Good Reason....................17
   5.4    If by the Company for Disability..................................17
   5.5    If upon Death.....................................................17

Article VI. NON-EXCLUSIVITY OF RIGHTS.......................................17
   6.1    Waiver of Other Severance Rights..................................17
   6.2    Other Rights......................................................17

Article VII. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.....................18
   7.1    Gross-up for Certain Taxes........................................18
   7.2    Determination by the Executive....................................18
   7.3    Additional Gross-up Amounts.......................................19
   7.4    Gross-up Multiple.................................................19
   7.5    Opinion of Counsel................................................19
   7.6    Amount Increased or Contested.....................................20
   7.7    Refunds...........................................................21

Article VIII. EXPENSES AND INTEREST.........................................21
   8.1    Legal Fees and Other Expenses.....................................21
   8.2    Interest..........................................................22

Article IX. NO SET-OFF OR MITIGATION........................................22
   9.1    No Set-off or Defenses by Company.................................22
   9.2    No Mitigation.....................................................22

Article X. CONFIDENTIALITY AND NONCOMPETITION...............................23
   10.1   Confidentiality...................................................23
   10.2   Noncompetition/Nonsolicitation....................................23
   10.3   Remedy............................................................24

Article XI. MISCELLANEOUS...................................................24
   11.1   No Assignability..................................................24
   11.2   Successors........................................................24

</TABLE>

                                      -ii-

<PAGE>   159

                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                           PAGE
                                                                           ----
<S>       <C>                                                              <C>

   11.3   Payments to Beneficiary...........................................24
   11.4   Non-alienation of Benefits........................................25
   11.5   Severability......................................................25
   11.6   Amendments........................................................25
   11.7   Notices...........................................................25
   11.8   Counterparts......................................................25
   11.9   Governing Law.....................................................25
   11.10  Captions..........................................................25
   11.11  Tax Withholding...................................................26
   11.12  Joint and Several Obligations.....................................26
   11.13  No Waiver.........................................................26
   11.14  Prior Agreement...................................................26
   11.15  Entire Agreement..................................................26

</TABLE>

                                     -iii-

<PAGE>   160
                          CHICAGO BRIDGE & IRON COMPANY

                      CHANGE OF CONTROL SEVERANCE AGREEMENT

         THIS AGREEMENT dated as of October 13, 2000 is made among CHICAGO
BRIDGE & IRON COMPANY N.V. ("CBICNV"), a Netherlands corporation, CHICAGO BRIDGE
& IRON COMPANY, a Delaware corporation ("CBIC"), CHICAGO BRIDGE & IRON COMPANY
(DELAWARE), a Delaware corporation ("CBICD" and, together with CBICNV and CBIC,
the "Company"), each having its principal place of business in Plainfield,
Illinois, and Stephen M. Duffy (the "Executive"), a resident of Illinois.

                                   ARTICLE I.
                                    PURPOSES

         The Supervisory Board of CBICNV has determined that it is in the best
interests of the Company and its stockholders to assure that the Company will
have the continued service of the Executive, despite the possibility or
occurrence of a change of control of the Company. The Board believes it is
imperative to reduce the distraction of the Executive that would result from the
personal uncertainties caused by a pending or threatened change of control, to
encourage the Executive's full attention and dedication to the Company, and to
provide the Executive with compensation and benefits arrangements upon a change
of control which ensure that the expectations of the Executive will be satisfied
and are competitive with those of similarly-situated corporations. This
Agreement is intended to accomplish these objectives.

                                   ARTICLE II.
                               CERTAIN DEFINITIONS

         When used in this Agreement, the terms specified below shall have the
following meanings:

         2.1  "Accrued Obligations" has the meaning defined for that term in
Section 5.3.

         2.2  "Agreement Term" means the period commencing on the date of this
Agreement and ending on the date which is thirty-six (36) months following the
date of this Agreement ("Expiration Date"); provided, however, that the
Agreement Term shall be extended as follows: (a) if neither the Company nor the
Executive gives written notice to the other pursuant to Section 11.7 that this
Agreement shall not be renewed ("Notice of Nonrenewal") within two years from
the date of this Agreement, the Agreement Term shall be extended to an
Expiration Date which shall be the first annual anniversary of the date a Notice
of Nonrenewal is given; (b) if an Imminent Control Change Date occurs before the
Expiration Date (as it may be extended under clause (a) above), then no Notice
of Nonrenewal shall thereafter be effective and the Agreement Term shall
automatically extend to an Expiration Date which is twelve (12) months after the
Imminent Change of Control Date, as further extended under the terms of this
clause should another Imminent Change of Control Date occur prior to the
Expiration Date as from time to time so extended, and (c) if a Change of Control
occurs before the Expiration Date (as extended

                                     -1-

<PAGE>   161

under clause (a) or (b) above or this clause (c)), the Expiration Date shall
automatically be extended to the last day of the Post-Change Period as the
Post-Change Period may be extended as provided in Section 2.22.

         2.3  "Affiliate" means an "affiliate" or "associate" as those terms are
defined in Rule 12b-2 under the 1934 Act.

         2.4  "Article" means an article of this Agreement.

         2.5  "Beneficial Owner" means such term as defined in Rule 13d-3 of the
SEC under the 1934 Act.

         2.6  "Board" means the Supervisory Board of Chicago Bridge & Iron
Company N.V.

         2.7  "Cause" has the meaning defined for that term in Section 4.3(b).

         2.8  "Change of Control" means, except as otherwise provided below, the
occurrence of any of the following:

              (a) any person (as such term is used in Rule 13d-5 of the SEC
         under the 1934 Act) or group (as such term is defined in Section 13(d)
         of the 1934 Act), other than a Subsidiary or any employee benefit plan
         (or any related trust) of the Company or a Subsidiary, becomes the
         Beneficial Owner of 25% or more of the common shares of any of CBICNV,
         CBIC or CBICD or of other Voting Securities representing 25% or more of
         the combined voting power of all Voting Securities of any of CBICNV,
         CBIC or CBICD; provided, however, that (i) no Change of Control shall
         be deemed to have occurred solely by reason of any such acquisition by
         a corporation with respect to which, after such acquisition, more than
         75% of both the common shares or common stock of such corporation and
         the combined voting power of the Voting Securities of such corporation
         are then beneficially owned, directly or indirectly, by the persons who
         were the Beneficial Owners of the common shares and other Voting
         Securities of CBICNV, CBIC or CBICD immediately before such
         acquisition, in substantially the same proportion as their ownership of
         the common shares and other Voting Securities of CBICNV, CBIC or CBICD,
         as the case may be, immediately before such acquisition; and (ii) once
         a Change of Control occurs under this subsection (a), the occurrence of
         the next Change of Control (if any) under this subsection (a) shall be
         determined by reference to a person or group other than the person or
         group whose acquisition of Beneficial Ownership created such prior
         Change of Control unless the original person or group has in the
         meantime ceased to own 25% or more of the common shares of all of
         CBICNV, CBIC or CBICD or other Voting Securities representing 25% or
         more of the combined voting power of all Voting Securities of all of
         CBICNV, CBIC or CBICD; or

              (b) individuals who, as of the date of this Agreement or as of any
         Effective Date thereafter, are Supervisory Directors of CBICNV (the
         "Incumbent Directors") cease for any reason to constitute at least 50%
         of the members of the Board; provided, however, that (i) any individual
         who becomes a Supervisory Director after the Effective Date whose
         binding nomination for election to the Board by the general meeting of
         shareholders was approved by a vote or written consent of at least 75%
         of the

                                      -2-

<PAGE>   162

         Supervisory Directors who are then Incumbent Directors shall be
         considered an Incumbent Director, but excluding, for this purpose, any
         such individual whose initial assumption of office is in connection
         with an actual or threatened election contest relating to the election
         of the directors of the Company (as such terms are used in Rule 14a-11
         of the SEC under the 1934 Act); and (ii) once a Change of Control
         occurs under this subsection (b), the occurrence of the next Change of
         Control (if any) under this subsection (b) shall be determined by
         reference to the individuals who were Incumbent Directors immediately
         after the Effective Date of such prior Change of Control; or

              (c) approval by the Board, or by the shareholders of CBICNV, CBIC
         or CBICD, of any of the following:

                     (i)     a merger, reorganization or consolidation of
              CBICNV, CBIC or CBICD ("Merger"), other than a Merger after which
              the individuals and entities who were the respective beneficial
              owners of the common shares and other Voting Securities of CBICNV,
              CBIC or CBICD (as the case may be) immediately before such Merger
              beneficially own, directly or indirectly, more than 75% of,
              respectively, the common shares or common stock and the combined
              voting power of the Voting Securities of the corporation resulting
              from such Merger, in substantially the same proportion as their
              ownership of the common shares or common stock and other Voting
              Securities of CBICNV, CBIC or CBICD (as the case may be)
              immediately before such Merger, or

                     (ii)    a sale or other disposition by any of CBICNV, CBIC
              or CBICD of all or substantially all of the assets owned by it, or

                     (iii)   any transaction as a result of which CBICNV would
              not thereafter directly or indirectly own beneficially at least
              75% of the common stock of CBIC or as a result of which CBIC would
              not thereafter directly or indirectly own beneficially at least
              75% of the common stock of CBICD, unless after either such
              transaction CBICNV continues to own directly or indirectly
              substantially all of the pre-transaction assets of both CBIC and
              CBICD.

              (d) if a Growth Transaction previously occurred, any Transaction
         Owner individually, or Transaction Owners collectively:

                     (i)     materially breach(es) any provision of any
              shareholder agreement to which CBICNV and such Transaction
              Owner(s) are parties that addresses the governance of CBICNV
              following the Growth Transaction; or

                     (ii)    become(s) the Beneficial Owner of more than 66.5%
              of the common shares of any of CBICNV, CBIC or CBICD or of other
              Voting Securities representing more than 66.5% of the combined
              voting power of all Voting Securities of any of CBICNV, CBIC or
              CBICD.

         2.9  "Code" means the Internal Revenue Code of 1986, as amended.

         2.10 "Deferral Plan" has the meaning defined for that term in Section
3.6.

                                      -3-

<PAGE>   163

         2.11 "Disability" has the meaning defined for that term in Section
4.1(b).

         2.12 "Effective Date" means each date on which a Change of Control
occurs during the Agreement Term; provided, however, that if the Company
terminates the Executive's employment before the date of a Change of Control,
and if the Executive reasonably demonstrates that such termination of employment
(a) was at the request of a third party who had taken steps reasonably
calculated to effect the Change of Control or (b) otherwise arose in connection
with or anticipation of the Change of Control, then "Effective Date" shall mean
the date immediately before the date of such termination of employment.

         2.13 "Good Reason" has the meaning defined for that term in Section
4.4(b).

         2.14 "Gross-up Payment" has the meaning defined for that term in
Section 7.1.

         2.15 "Growth Transaction" means (i) the acquisition by Wedge Group
Incorporated ("WGI"), a Delaware corporation, First Reserve Fund VIII, L.P.
("FRF"), a Delaware limited partnership, or Pitt-Des Moines, Inc. ("PDM"), a
Pennsylvania corporation, or their Affiliates, of common shares or other Voting
Securities of CBICNV as contemplated by an agreement with CBICNV for the
acquisition by CBICNV or an Affiliate of Howe-Baker International, Inc. from WGI
(the "HBI Transaction") or for the acquisition of the PDM Engineered
Construction Division and Water Division from PDM (the "PDM Transaction"); (ii)
the acquisition by a person (other than by public offering) of common shares or
other Voting Securities of CBICNV from CBICNV as part of an arrangement for
financing the HBI Transaction or the PDM Transaction; (iii) the acquisition by a
person of common shares or other Voting Securities of CBICNV from a previous
Transaction Owner if the person acquiring such common shares or other Voting
Securities is or becomes a party to a Shareholder Agreement with CBICNV that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner; or (iv) a transfer of common shares or other
Voting Securities of CBICNV from one Transaction Owner to another Transaction
Owner if the acquiring Transaction Owner is subject with respect to such shares
or other Voting Securities to either a preexisting Shareholder Agreement between
CBICNV and the acquiring Transaction Owner or a Shareholder Agreement that is
substantially similar to the Shareholder Agreement, if any, between CBICNV and
the selling Transaction Owner. However, a "Growth Transaction" will not include
any event described in Section 2.8(d).

         2.16 "Imminent Control Change Date" means any date on which occurs (a)
a presentation to the Company's shareholders generally or any of the Company's
directors or executive officers of a proposal or offer for a Change of Control,
or (b) the public announcement (whether by advertisement, press release, press
interview, public statement, SEC filing or otherwise) of a proposal or offer for
a Change of Control, or (c) such proposal or offer remains effective and
unrevoked.

         2.17 "IRS" means the Internal Revenue Service.

         2.18 "1934 Act" means the Securities Exchange Act of 1934, as amended.

         2.19 "Notice of Termination" means a written notice given in accordance
with Section 11.7 which sets forth (a) the specific termination provision in
this Agreement relied upon

                                      -4-

<PAGE>   164

by the party giving such notice, (b) in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under such termination provision and (c) if the Termination Date is
other than the date of receipt of such Notice of Termination, the Termination
Date.

         2.20 "Plans" means plans, programs, policies or practices of the
Company or any of its Subsidiaries.

         2.21 "Policies" means policies, practices or procedures of the Company
or any of its Subsidiaries.

         2.22 "Post-Change Period" means the period commencing on each Effective
Date and ending on the third annual anniversary of such Effective Date. If a new
Change of Control creates a new Effective Date during any current Post-Change
Period, the Post-Change Period shall be extended to the third annual anniversary
of such new Effective Date; and shall be further extended upon each new
Effective Date during the Post-Change Period as extended.

         2.23 "Present Value" means the present value, determined using (a) the
actuarial assumptions published by the Pension Benefit Guaranty Corporation
("PBGC") for determining immediate annuity values, as in effect on the first day
of the calendar year in which any payment of present value is required, or (b)
if no such actuarial assumptions are published by the PBGC, using the mortality
assumptions of the UP-84 group mortality table and an interest rate assumption
which is the lesser of (i) 75% of the current 30-year Treasury bond rate or (ii)
the current 30-year Treasury bond rate minus 150 basis points.

         2.24 "SEC" means the Securities and Exchange Commission.

         2.25 "Section" means, unless the context otherwise requires, a section
of this Agreement.

         2.26 "SERP" has the meaning defined for that term in Section 3.6.

         2.27 "Shareholder Agreement" means an agreement between CBICNV and a
person that limits the ability of such person and its Affiliates to obtain and
exercise control over the management and policies of the CBICNV.

         2.28 "Subsidiary" means a corporation as defined in Section 424(f) of
the Code (with the Company being treated as the employer corporation for
purposes of this definition) and any partnership or limited liability company in
which the Company or any Subsidiary has a direct or indirect interest (whether
in the form of voting power or participation in profits or capital contribution)
of 50% or more.

         2.29 "Termination Date" means the date of receipt of the Notice of
Termination or any later date specified in such notice (which date shall be not
more than 15 days after the giving of such notice), as the case may be;
provided, however, that (a) if the Company terminates the Executive's employment
other than for Cause or Disability, then the Termination Date shall be the date
of receipt of such Notice of Termination and (b) if the Executive's employment
is terminated by reason of death or Disability, then the Termination Date shall
be the date of death

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of the Executive or the Disability Effective Date (as defined in Section
4.1(a)), as the case may be.

         2.30 "Transaction Owner" means a person who acquires common shares or
other Voting Securities of CBICNV in a Growth Transaction, or any Affiliate of
such person.

         2.31 "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors of
such corporation.

                                  ARTICLE III.
                         POST-CHANGE PERIOD PROTECTIONS

         3.1  General. On the Effective Date and during the Post-Change Period
thereafter the Company shall make the payments, provide the benefits and fulfill
the other obligations required by this Article III. However, if, such Effective
Date and Post-Change Period result solely from a Growth Transaction:

              (a) Section 3.3(b) shall not apply except for purposes of
         determining the obligations of the Company on termination pursuant to
         Section 5.1, and to the extent provided in Section 4.4(b)(iii) and as
         modified thereby, in determining the existence of Good Reason;

              (b) clause (ii) of each of Sections 3.3(c) through 3.3(h) shall
         not apply except for purposes of determining the obligations of the
         Company on termination pursuant to Section 5.1; but the aggregate value
         to the Executive of all Plans, fringe benefits and arrangements
         described in Sections 3.3(c) through 3.3(h) shall not be less
         favorable, in the aggregate, than the aggregate value to the Executive
         of such Plans, fringe benefits and arrangements provided by the Company
         to the Executive or peer executives at any time during the 90-day
         period immediately before such Effective Date; and

              (c) Sections 3.4, 3.5, and 3.6 shall not apply on such Effective
         Date; but to the extent such vesting or payment is not otherwise
         required by Section 5.1, Sections 3.4, 3.5 and 3.6, shall apply to the
         Executive on the Termination Date (as if such Sections referred to the
         "Termination Date" instead of the "Effective Date") if during the
         Post-Change Period the Company shall terminate Executive's employment
         other than for Cause, or if the Executive shall terminate employment
         for Good Reason, or if employment terminates as a result of Disability
         or death.

         3.2  Position and Duties.

              (a) During the Post-Change Period, (1) the Executive's position
         (including offices, titles, reporting requirements and
         responsibilities), authority and duties shall be at least commensurate
         in all material respects with the most significant of those held by,
         exercised by, or assigned to the Executive at any time during the
         90-day period immediately before the Effective Date and (2) the
         Executive's services shall be performed at the location where the
         Executive was employed immediately before the Effective Date or any
         other location less than 40 miles from such former location.

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<PAGE>   166

              (b) During the Post-Change Period (other than any periods of
         vacation, sick leave, disability leave or other family or medical leave
         to which the Executive is entitled), the Executive shall devote his or
         her full attention and time to the business and affairs of the Company
         and, to the extent necessary to discharge the duties assigned to the
         Executive in accordance with this Agreement, shall use his or her best
         efforts to perform such duties faithfully and efficiently. During the
         Post-Change Period, the Executive may (1) serve on corporate, civic or
         charitable boards or committees, (2) deliver lectures, fulfill speaking
         engagements or teach at educational institutions and (3) manage
         personal investments, so long as such activities are consistent with
         the Policies of the Company or its Subsidiaries at the Effective Date
         and do not significantly interfere with the performance of the
         Executive's duties under this Agreement. To the extent that any such
         activities have been conducted by the Executive before the Effective
         Date and were consistent with the Policies of the Company or its
         Subsidiaries at the Effective Date, the continued conduct of such
         activities (or activities similar in nature and scope) after the
         Effective Date shall not be deemed to interfere with the performance of
         the Executive's duties under this Agreement.

         3.3  Compensation.

              (a) Base Salary. During the Post-Change Period, the Company shall
         pay or cause to be paid to the Executive an annual base salary in cash
         ("Guaranteed Base Salary"), which shall be paid in a manner consistent
         with the Company's payroll practices in effect immediately before the
         Effective Date for such Post-Change Period, at a rate at least equal to
         the highest rate of annual salary paid or payable to the Executive by
         the Company at any time during the 12-month period immediately before
         such Effective Date. During the Post-Change Period, the Guaranteed Base
         Salary shall be reviewed at least annually and shall be increased at
         any time and from time to time as shall be substantially consistent
         with increases in base salary awarded to other peer executives of the
         Company. Any increase in Guaranteed Base Salary shall not limit or
         reduce any other obligation of the Company to the Executive under this
         Agreement. After any such increase, the Guaranteed Base Salary shall
         not be reduced and the term "Guaranteed Base Salary" shall thereafter
         refer to the increased amount.

              (b) Guaranteed Bonus.

                     (i)     During the Post-Change Period, the Company shall
              pay or cause to be paid to the Executive a bonus (the "Guaranteed
              Bonus") for each Performance Period which ends during the
              Post-Change Period. "Performance Period" means each period of time
              designated in accordance with any bonus arrangement ("Bonus Plan")
              which is based upon performance and approved by the Board or by
              any committee of the Board. For purposes of this Section 3.3, a
              Bonus Plan includes, without limitation, the Company's Incentive
              Compensation Plan as in effect on the date hereof or any similar
              plan, but does not include the Company's 1997 or 1999 Long-Term
              Incentive Plan (an "LTIP") or any similar plan under which equity
              awards described Section 3.5 are granted, unless failure to
              consider the LTIP a Bonus Plan would leave the Company without any
              Bonus Plan covering Executive. The Guaranteed Bonus shall be at
              least equal to the product

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              of (A) the greater of (i) the On Plan Percentage (as defined
              below), or (ii) the Actual Bonus Percentage (as defined below),
              multiplied by (B) the Guaranteed Base Salary.

                     (ii) For purposes of this Section 3.3(b):

                                  (A)"On Plan Percentage" means the percentage
                          of Guaranteed Base Salary to which the Executive would
                          be entitled under the Bonus Plan(s) for the
                          Performance Period for which the Guaranteed Bonus is
                          awarded ("Current Performance Period") if performance
                          achieved 100% of the target performance goals
                          established pursuant to such Bonus Plan(s); or, if
                          greater, the percentage of Guaranteed Base Salary to
                          which Executive would have been entitled under the
                          Bonus Plan(s) for the Performance Period ending
                          immediately prior to the Post-Change Period if
                          performance achieved 100% of the performance goals
                          established pursuant to such Bonus Plan(s) for such
                          prior Performance Period.

                                  (B) "Actual Bonus Percentage" means the
                          percentage of Guaranteed Base Salary for the Current
                          Performance Period to which the Executive would be
                          entitled under any Bonus Plan if the performance were
                          measured by the actual performance during the Current
                          Performance Period; provided, however, that for
                          purposes of determining the Guaranteed Bonus for
                          purposes of Sections 3.4 and 5.1(b), "Actual Bonus
                          Percentage" means the percentage of Guaranteed Base
                          Salary for the Performance Period during which the
                          Effective Date (for purposes of Section 3.4) or
                          Termination Date (for purposes of Section 5.1(b))
                          occurs to which the Executive would be entitled if the
                          performance during such Performance Period were
                          measured by the actual performance during the portion
                          of such Performance Period before the Effective Date
                          or the Termination Date (whichever is applicable),
                          projected to the last day of such Performance Period.

              (c) Incentive, Savings and Retirement Plans. During the
         Post-Change Period and notwithstanding the payment required by Section
         3.6, (i) the Executive shall be entitled to continue to participate in
         all incentive (including long-term incentives and management stock
         plans), savings, deferred compensation, retirement and benefit
         restoration Plans provided by the Company and applicable to other peer
         executives of the Company, but (ii) in no event shall such Plans
         provide the Executive with incentive (including long-term incentives
         and management stock benefits), savings, deferred compensation,
         retirement and benefit restoration benefits which, in any case, are
         less favorable, in the aggregate, than the most favorable of those
         provided by the Company to the Executive or to peer executives under
         such Plans as in effect at any time during the 90-day period
         immediately before any Effective Date.

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<PAGE>   168

              (d) Welfare Benefit Plans. During the Post-Change Period, (i) the
         Executive and the Executive's family shall be eligible to participate
         in, and receive all benefits under, welfare benefit Plans (including,
         without limitation, medical, prescription, dental, disability, salary
         continuance, individual life, group life, dependent life, accidental
         death and travel accident insurance Plans) provided by the Company and
         applicable to other peer executives of the Company and their families,
         but (ii) in no event shall such Plans provide benefits which in any
         case are less favorable, in the aggregate, than the most favorable of
         those provided by the Company to the Executive or to peer executives
         under such Plans as in effect at any time during the 90-day period
         immediately before any Effective Date.

              (e) Fringe Benefits. During the Post-Change Period, (i) the
         Executive shall be entitled to fringe benefits (including, without
         limitation, any foreign service travel and housing allowances for
         Executive and the Executive's family under Plans or Policies of the
         Company for foreign service) in accordance with the most favorable
         Plans provided by the Company and applicable to other peer executives
         of the Company, but (ii) in no event shall such Plans provide fringe
         benefits which in any case are less favorable, in the aggregate, than
         the most favorable of those provided by the Company to the Executive or
         peer executives under such Plans in effect at any time during the
         90-day period immediately before any Effective Date.

              (f) Expenses. During the Post-Change Period, (i) the Executive
         shall be entitled to prompt reimbursement of all reasonable
         employment-related expenses incurred by the Executive upon the
         Company's receipt of accountings in accordance with the most favorable
         Policies applicable to peer executives of the Company, but (ii) in no
         event shall such Policies be less favorable, in the aggregate, than the
         most favorable of those provided by the Company to the Executive or to
         peer executives under such Policies in effect at any time during the
         90-day period immediately before any Effective Date.

              (g) Office and Support Staff. During the Post-Change Period, (i)
         the Executive shall be entitled to an office or offices of a size and
         with furnishings and other appointments, and to secretarial and other
         assistance in accordance with the most favorable Policies applicable to
         peer executives of the Company, but (ii) in no event shall such
         Policies be less favorable, in the aggregate, than the most favorable
         of those provided by the Company to the Executive or to peer executives
         under such Policies in effect at any time during the 90-day period
         immediately before any Effective Date.

              (h) Vacation. During the Post-Change Period, (i) the Executive
         shall be entitled to paid vacation in accordance with the most
         favorable Policies applicable to peer executives of the Company, but
         (ii) in no event shall such Policies be less favorable, in the
         aggregate, than the most favorable of those provided by the Company to
         the Executive or to peer executives under such Policies in effect at
         any time during the 90-day period immediately before any Effective
         Date.

         3.4  Pro-Rata Bonus Payment.

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<PAGE>   169

         On each Effective Date the Company shall pay to Executive in a single
lump sum in cash the product of (A) the Guaranteed Bonus for the Performance
Period in which falls the Effective Date, multiplied by (B) a fraction, the
numerator of which is the number of days in such Performance Period before the
Effective Date, and the denominator of which is the total number of days in such
Performance Period. The amount of Guaranteed Bonus for such Performance Period
otherwise payable pursuant to Section 3.3(b), or otherwise payable pursuant to
this Section 3.4 by reason of a later Change of Control in the same Performance
Period, shall be reduced by any earlier payment made under this Section 3.4 for
the same Performance Period.

         3.5  Equity Awards Vesting.

         On the Effective Date, the Executive shall become fully vested in:

              (a) any and all outstanding options ("Options") to purchase common
         shares of the Company granted to Executive prior to the Effective Date
         under any Plan, contract or arrangement for Options, which Options
         shall become fully exercisable;

              (b) any outstanding shares of restricted common shares of the
         Company regardless whether such restrictions are scheduled to lapse
         based on service or on performance or both ("Restricted Stock") awarded
         to Executive under any Plan, contract or arrangement for Restricted
         Stock; which shall become unrestricted and freely transferable; and

              (c) any outstanding awards providing for the payment of a variable
         number of common shares of the Company dependent on the achievement of
         performance goals, or of an amount based on the fair market value of
         such shares or the appreciation thereof ("Performance Shares") awarded
         to Executive under any Plan, contract or arrangement for Performance
         Shares; and there shall be paid out in cash to Executive within 30 days
         following the Effective Date of the Change of Control the value of the
         Performance Shares to which Executive would have been entitled if
         performance achieved 100% of the target performance goals established
         for such Performance Shares.

         To the extent that for any reason such Options, Restricted Stock and
Performance Shares do not become vested on the Effective Date, the Company shall
pay Executive a cash amount equal to (i) the positive difference, if any,
between the value of the shares of common stock subject to the Options that did
not become vested (or, if greater, the value paid or to be paid in connection
with the Change of Control to a holder of an equal number of shares of common
stock ("Change of Control Value")) and the Option exercise price with respect to
such shares, as of and on the date such Options are forfeited; plus (ii) the
fair market value (determined without regard to any restriction other than a
restriction which by its terms may never lapse) (or, if greater, the Change of
Control Value) of all non-vested forfeited Restricted Stock and Performance
Shares as of and on the date such Restricted Stock or Performance Shares are
forfeited. Nothing in this Section 3.5 shall require the vesting, or payment, of
equity awards granted after such Effective Date unless a new Effective Date has
intervened

         3.6  Nonqualified Deferred Compensation.

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         On the Effective Date Executive shall become fully vested in and the
Company shall pay to Executive in a single lump sum in cash (1) the value of
Executive's then-accrued benefits, if any, which remain unpaid under any
nonqualified deferred compensation, benefit restoration, excess benefit or other
individual account plan, contract or arrangement for deferred compensation
maintained by the Company under which benefits are calculated by reference to an
individual account (a "Deferral Plan"), and (2) the Present Value of Executive's
then-accrued benefits, if any, which remain unpaid under any nonqualified
supplemental executive retirement plan or other plan, contract or arrangement
for retirement benefits maintained by the Company under which benefits are
calculated by reference to a defined amount payable in connection with or after
retirement or other termination of employment an (a "SERP").

                                  ARTICLE IV.
                            TERMINATION OF EMPLOYMENT

         4.1  Disability.

              (a) During the Post-Change Period, the Company may terminate the
         Executive's employment upon the Executive's Disability (as defined in
         Section 4.1(b)) by giving the Executive or his legal representative, as
         applicable, Notice of Termination accompanied by a certification of the
         Executive's Disability by a physician selected by the Company or its
         insurers and reasonably acceptable to the Executive or the Executive's
         legal representative. The Executive's employment shall terminate
         effective on the 30th day (the "Disability Effective Date") after the
         Executive's receipt of such Notice of Termination unless, before the
         Disability Effective Date, the Executive shall have resumed the
         full-time performance of the Executive's duties.

              (b) "Disability" means any medically determinable physical or
         mental impairment that has lasted for a continuous period of not less
         than six months and can be expected to be permanent or of indefinite
         duration, and that renders the Executive unable to perform the
         essential functions required under this Agreement with or without
         reasonable accommodation.

              (c) Unless the Company establishes, by clear and convincing
         evidence, that Executive has a Disability, any purported termination of
         employment for Disability shall be deemed a termination other than for
         Disability for all purposes of this Agreement.

         4.2  Death.  The Executive's employment shall terminate automatically
 upon the Executive's death during the Post-Change Period.

         4.3  Cause.

              (a) During the Post-Change Period, the Company may terminate the
         Executive's employment for Cause.

              (b) "Cause" means any of the following: Executive's conviction of
         a felony or of a crime involving fraud, dishonesty or moral turpitude;
         Executive's willful or intentional material breach of this Agreement
         that results in financial detriment that is material to the

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<PAGE>   171

         Company as a whole; or willful or intentional misconduct by Executive
         in the performance of his duties under this Agreement that results in
         financial detriment that is material to the Company as a whole; except
         that Cause shall not mean:

                     (i)     bad judgment or negligence;

                     (ii)    any act or omission believed by the Executive in
              good faith to have been in or not opposed to the interest of the
              Company (without intent of the Executive to gain, directly or
              indirectly, a profit to which the Executive was not legally
              entitled);

                     (iii)   any act or omission with respect to which a
              determination could properly have been made by the Board that the
              Executive met the applicable standard of conduct for
              indemnification or reimbursement under the Company's by-laws, any
              applicable indemnification agreement, or applicable law, in each
              case in effect at the time of such act or omission; or

                     (iv)    any act or omission with respect to which Notice of
              Termination is not given within 12 months after the earliest date
              on which any member of the Board, not a party to the act or
              omission, knew or should have known of such act or omission.

              (c) The Company may not during the Post-Change Period terminate
         Executive's employment for Cause unless the following procedures are
         fully complied with:

                     (i)     no fewer than 45 days prior to the Termination
              Date, the Company provides Executive with written notice (the
              "Notice of Consideration") of its intent to consider termination
              of Executive's employment for Cause, including a detailed
              description of the specific reasons which form the basis for such
              consideration;

                     (ii)    if after providing Notice of Consideration, the
              Board may, by the affirmative vote of at least 80% of its members
              (excluding for this purpose Executive if he is a member of the
              Board, and any other member of the Board reasonably believed by
              the Board to be involved in the events issuing the Notice of
              Consideration), suspend Executive with pay until a final
              determination pursuant to this Section has been made;

                     (iii)   for a period of not less than 30 days after the
              date Notice of Consideration is provided, Executive shall have the
              opportunity to appear before the Board, with or without legal
              representation, at Executive's election, to present arguments and
              evidence on his own behalf; and

                     (iv)    following the presentation to the Board as provided
              in (3) above or Executive's failure to appear before the Board at
              a date and time specified in the Notice of Consideration (which
              date shall not be less than 30 days after the date the Notice of
              Consideration is provided), Executive may be terminated for Cause
              only if (i) the Board, by the affirmative vote of at least 80% of
              its members

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<PAGE>   172

              (excluding Executive if he is a member of the Board, and any other
              member of the Board reasonably believed by the Board to be
              involved in the events leading the Board to terminate Executive
              for Cause), determines that the actions or inactions of Executive
              specified in the Notice of Consideration occurred, that such
              actions or inactions constitute Cause, and that Executive's
              employment should accordingly be terminated for Cause; and (ii)
              the Board provides Executive with a written determination (a
              "Notice of Termination for Cause") setting forth in specific
              detail the basis of such Termination of Employment, which Notice
              of Termination for Cause shall be consistent with the reasons set
              forth in the Notice of Consideration.

         Unless the Company establishes, by clear and convincing evidence, both
(x) its full compliance with the substantive and procedural requirements of this
Section prior to a termination of employment for Cause, and (y) that Executive's
action or inaction specified in the Notice of Termination for Cause did occur
and constituted Cause, any purported termination of employment for Cause shall
be deemed a termination without Cause for all purposes of this Agreement.

         4.4  Good Reason.

              (a) During the Post-Change Period, the Executive may terminate
         employment for Good Reason within 12 months following the Executive's
         actual knowledge of an act or omission which constitutes Good Reason;
         provided, however, that the Executive's failure to terminate within 12
         months following Executive's actual knowledge of a particular act or
         omission which constitutes Good Reason shall not prevent Executive's
         termination for any other act or omission which constitutes Good
         Reason.

              (b) "Good Reason" means any of the following:

                     (i)     the assignment to the Executive of any duties
              inconsistent in any respect with the Executive's position
              (including offices, titles, reporting requirements or
              responsibilities), authority or duties as prescribed by Section
              3.2(a)(1), or the Company's requiring the Executive to be based at
              any office or location other than the location described in
              Section 3.2(a)(2);or any other action by the Company which results
              in a diminution or other material adverse change in such position,
              authority or duties;

                     (ii)    the failure to pay Guaranteed Base Salary in at
              least the amount prescribed by Section 3.2(a);

                     (iii)   the failure to pay Guaranteed Bonus in at least the
              amount prescribed by Section 3.3(b); provided, however, that if
              the Post-Change Period results solely from a Growth Transaction;
              Good Reason under this clause (iii) shall only be the failure to
              provide Executive with a bonus opportunity (including designation
              of target performance goals and percentage of Guaranteed Base
              Salary payable on achievement of target performance goals) no less
              favorable to

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<PAGE>   173

              Executive than that provided by the Company to Executive for
              either of the two most recent Performance Periods beginning before
              such Growth Transaction;

                     (iv)    the failure to provide any plan or fringe benefits
              or perquisites prescribed by Sections 3.3(c) through 3.3(h), as
              modified, if the Post-Change Period results solely from a Growth
              Transaction, by Section 3.1(b);

                     (v)     any other failure by the Company to comply with any
              of the provisions of Article III;

                     (vi)    any other material adverse change to the terms and
              conditions of the Executive's employment (whether or not also
              described in clauses (i) through (v) above);

                     (vii)   the Board's giving Notice of Consideration pursuant
              to Section 4.3(c) (of the intent to consider terminating Executive
              for Cause) but failing to terminate Executive for Cause within a
              period of 90 days thereafter in compliance with all substantive
              and procedural requirements of Section 4.3,

                     (viii)  any purported termination by the Company of the
              Executive's employment other than as expressly permitted by this
              Agreement (any such purported termination shall not be effective
              for any other purpose under this Agreement);

                     (ix)    a failure by the Company to cause a successor,
              prior to or as of the date it becomes a successor, to assume and
              agree to perform this Agreement in accordance with the provisions
              of Section 11.2 hereof.

         Any determination by Executive that any of the foregoing events has
         occurred and constitutes "Good Reason" shall be conclusive and binding
         for all purposes unless the Company establishes by clear and convincing
         evidence that Executive did not have a reasonable basis for such a
         determination.

              (c) Any termination of employment by the Executive for Good Reason
         shall be communicated to the Company by Notice of Termination. The
         passage of time not in excess of 12 months after the Executive has
         actual knowledge of an act or omission which constitutes Good Reason
         prior to delivery of Notice of Termination or a failure by the
         Executive to include in the Notice of Termination any fact or
         circumstance which contributes to a showing of Good Reason shall not
         waive any right of the Executive under this Agreement or preclude the
         Executive from asserting such fact or circumstance in enforcing rights
         under this Agreement.

                                   ARTICLE V.
                   OBLIGATIONS OF THE COMPANY UPON TERMINATION

         5.1  If by the Executive for Good Reason or by the Company Other Than
for Cause or Disability. If, during the Post-Change Period, the Company shall
terminate Executive's

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<PAGE>   174

employment other than for Cause, Disability, or death or if the Executive shall
terminate employment for Good Reason, the Company shall pay the Executive within
five (5) days of the Termination Date (or if earlier within five (5) days of the
last day Executive performed services for the Company as an Employee), in
addition to all vested rights arising from the Executive's employment as
specified in Article III, a cash amount equal to the sum of the amounts
described in (a) through (g) below and the additional benefits described in (h)
through (i) below:

              (a) The Guaranteed Base Salary, any accrued vacation pay and
         business expenses incurred through the Termination Date, to the extent
         not previously paid to the Executive by the Company.

              (b) The difference between (1) the product of (A) the Guaranteed
         Bonus, multiplied by (B) a fraction, the numerator of which is the
         number of days in the Termination Performance Period which elapsed
         before the Termination Date, and the denominator of which is the total
         number of days in the Termination Performance Period, and (2) the
         amount of any Guaranteed Bonus previously paid to the Executive by the
         Company with respect to the Termination Performance Period.

              (c) The value of Executive's then-accrued benefits under any
         Deferral Plan plus the present value of Executive's then-accrued
         benefits under any SERP, determined without disregarding service and
         compensation before any Effective Date but then reduced by the amount,
         if any, previously paid to the Executive by the Company pursuant to
         Section 3.6.

              (d) An amount equal to the product of (1) three (3.0), multiplied
         by (2) the sum of (A) the Guaranteed Base Salary and (B) the Guaranteed
         Bonus.

              (e) An amount equal to the sum of the value of the unvested
         portion of the Executive's accounts or accrued benefits under any
         qualified plan maintained by the Company as of the Termination Date.

              (f) The difference between (1) the amount that would be determined
         under Section 5.1(c) above if such amount were calculated (to the
         extent applicable in determining such amount) (A) as though the
         Executive continued to accrue benefits and be credited with service
         under the SERP for a period of three years after the Termination Date,
         (B) as though the Executive received compensation during each year of
         such three-year period equal to the sum of the Guaranteed Base Salary
         and the highest Guaranteed Bonus paid (or payable) to the Executive in
         the three calendar years preceding the Termination Date, (C) as though
         the Executive were three (3) years older than his age at the
         Termination Date, and (D) without disregarding service and compensation
         before the Termination Date; reduced by (2) the amount (if any)
         previously or simultaneously paid by the Company to the Executive
         pursuant to Sections 3.6 and 5.1(c).

              (g) In addition to the foregoing amounts, the Company shall pay on
         behalf of Executive all fees and costs charged by the outplacement firm
         selected by the Executive to provide outplacement services or at the
         election of the Executive, an immediate cash

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<PAGE>   175

payment equal to the fees and expenses such outplacement firm would charge but
not in excess of 20% of the Guaranteed Base Salary.

              (h) In addition to the foregoing payments, until the third annual
         anniversary of the Termination Date or such later date as any Plan of
         the Company may specify, the Company shall continue to provide to the
         Executive and the Executive's family welfare benefits (including,
         without limitation, medical, prescription, dental, disability, salary
         continuance, individual life, group life, accidental death and travel
         accident insurance plans and programs) which are at least as favorable
         as the most favorable Plans of the Company applicable to other peer
         executives and their families as of the Termination Date, but which are
         in no event less favorable than the most favorable Plans of the Company
         applicable to other peer executives and their families during the
         90-day period immediately before the Effective Date; and the cost of
         such welfare benefits to Executive shall not exceed the cost of such
         benefits to the Executive immediately before the Termination Date or,
         if less, the Effective Date.

              (i) Beginning on the later of the third annual anniversary of the
         Termination Date or the date Executive attains age 50, and continuing
         until the death of the last to die of Executive and his or her spouse,
         the Company shall provide to the Executive and to Executive's family
         medical benefits which (1) until Executive attains age sixty-five (65)
         are at least as favorable as the most favorable medical Plans of the
         Company applicable to actively employed peer executives and that
         covered any active employee of the Company as of the Effective Date,
         and (2) from and after the date Executive attains age 65, are at least
         as favorable as the most favorable medical Plans of the Company
         applicable to eligible retired peer executives and that covered any
         retired employee as of the Effective Date; and the cost to Executive of
         such medical benefits for the period described in clause (1) shall not
         exceed the cost of such benefits to Executive immediately before the
         Termination Date or, if less, the Effective Date, and the cost to
         Executive of such medical benefits for the period described in clause
         (2) shall not exceed the cost of such benefits to any similarly
         situated eligible retiree of the Company immediately before the
         Termination Date or, if less, the Effective Date.

The Executive's rights under this Section 5.1 shall be in addition to, and not
in lieu of, any post-termination continuation coverage or conversion rights the
Executive may have pursuant to applicable law, including without limitation
continuation coverage required by Section 4980 of the Code or Part 6 of Title I
of the Employee Retirement Income Security Act of 1974, as amended, for which
purpose the date of the qualifying event shall not be earlier than the date
specified in the first sentence of Section 5.1(i). However, if the Executive is
covered under a medical, life, or disability insurance plan provided by a
subsequent employer at equal or lesser cost to Executive than the cost to
Executive of coverage under the corresponding Company plan required by Sections
5.1(i), then the benefits under the corresponding Company plan required by
Sections 5.1(i) shall be secondary to the benefits under the subsequent
employer's medical, life, or disability insurance plan.

         5.2  If by the Company for Cause. If the Company terminates the
Executive's employment for Cause during the Post-Change Period pursuant to the
procedures set forth in Section 4.3, this Agreement shall terminate without
further obligation by the Company to the

                                      -16-

<PAGE>   176

Executive, other than the obligation immediately to pay the Executive in cash
the Executive's Guaranteed Base Salary through the Termination Date, plus the
amount of any compensation previously deferred by the Executive, plus any
accrued vacation pay and business expenses incurred through the Termination
Date, in each case to the extent not previously paid or reimbursed.

         5.3  If by the Executive Other Than for Good Reason. If the Executive
terminates employment during the Post-Change Period other than for Good Reason,
Disability or death, this Agreement shall terminate without further obligations
by the Company, other than the obligation immediately to pay the Executive in
cash all amounts specified in paragraphs (a), (b) and (c) of Section 5.1 (such
amounts collectively, the "Accrued Obligations").

         5.4  If by the Company for Disability. If the Company terminates the
Executive's employment by reason of the Executive's Disability during the
Post-Change Period, this Agreement shall terminate without further obligations
to the Executive, other than:

              (a) the Company's obligation immediately to pay the Executive in
         cash all Accrued Obligations, and

              (b) the Executive's right after the Disability Effective Date to
         receive disability and other benefits at least equal to the greater of
         (i) those provided under the most favorable disability Plans applicable
         to disabled peer executives of the Company in effect immediately before
         the Termination Date or (ii) those provided under the most favorable
         disability Plans of the Company in effect at any time during the 90-day
         period immediately before the Effective Date.

         5.5  If upon Death. If the Executive's employment is terminated by
reason of the Executive's death during the Post-Change Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than the obligation immediately to
pay the Executive's estate or beneficiary in cash all Accrued Obligations.
Despite anything in this Agreement to the contrary, the Executive's family shall
be entitled to receive benefits at least equal to the most favorable benefits
provided by the Company to the surviving families of peer executives of the
Company under such Plans, but in no event shall such Plans provide benefits
which in each case are less favorable, in the aggregate, than the most favorable
of those provided by the Company to the Executive under such Plans in effect at
any time during the 90-day period immediately before the Effective Date.

                                  ARTICLE VI.
                            NON-EXCLUSIVITY OF RIGHTS

         6.1  Waiver of Other Severance Rights. To the extent that payments are
made to the Executive pursuant to Section 5.1, the Executive hereby waives the
right to receive severance payments under any other Plan or agreement of or with
the Company.

         6.2  Other Rights. Except as provided in Section 6.1, this Agreement
shall not prevent or limit the Executive's continuing or future participation in
any benefit, bonus, incentive or other Plans provided by the Company or any of
its Subsidiaries and for which the Executive may

                                      -17-

<PAGE>   177

qualify, nor shall this Agreement limit or otherwise affect such rights as the
Executive may have under any other agreements with the Company or any of its
Subsidiaries. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any Plan of the Company or any of its
Subsidiaries and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such Plan or applicable law
except as expressly modified by this Agreement.

                                  ARTICLE VII.
                   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY

         7.1  Gross-up for Certain Taxes. If it is determined (by the reasonable
computation of the Company's independent auditors, which determinations shall be
certified to by such auditors and set forth in a written certificate
("Certificate") delivered to the Executive) that any benefit received or deemed
received by the Executive from the Company pursuant to this Agreement or
otherwise (collectively, the "Payments") is or will become subject to any excise
tax under Section 4999 of the Code or any similar tax payable under any United
States federal, state, local or other law (such excise tax and all such similar
taxes collectively, "Excise Taxes"), then the Company shall, immediately after
such determination, pay the Executive an amount (the "Gross-up Payment") equal
to the product of

              (a) the amount of such Excise Taxes

multiplied by

              (b) the Gross-up Multiple (as defined in Section 7.4).

The Gross-up Payment is intended to compensate the Executive for the Excise
Taxes and any federal, state, local or other income or excise taxes or other
taxes payable by the Executive with respect to the Gross-up Payment.

         The Executive or the Company may at any time request the Company's
independent auditors to prepare and deliver a Certificate to the Executive. The
Company shall, in addition to complying with Section 7.2, cause all
determinations and certifications under the Article to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and
file the Executive's individual tax returns on a timely basis.

         7.2 Determination by the Executive.

              (a) If the Company or its independent auditors shall fail to
         deliver a Certificate to the Executive (and to pay to the Executive the
         amount of the Gross-up Payment, if any) within 14 days after receipt
         from the Executive of a written request for a Certificate, or if at any
         time following receipt of a Certificate the Executive disputes the
         amount of the Gross-up Payment set forth therein, the Executive may
         elect to demand the payment of the amount which the Executive, in
         accordance with an Executive Counsel Opinion), (as defined in Section
         7.5), determines to be the Gross-up Payment. Any such demand by the
         Executive shall be made by delivery to the Company of a written notice
         which specifies the Gross-up Payment determined by the Executive and an
         Executive Counsel

                                      -18-

<PAGE>   178

         Opinion regarding such Gross-up Payment (such written notice and
         opinion collectively, the "Executive's Determination"). Within 14 days
         after delivery of the Executive's Determination to the Company, the
         Company shall either (1) pay the Executive the Gross-up Payment set
         forth in the Executive's Determination (less the portion of such
         amount, if any, previously paid to the Executive by the Company) or (2)
         deliver to the Executive a Certificate specifying the Gross-up Payment
         determined by the Company's independent auditors, together with a
         Company Counsel Opinion (as defined in Section 7.5), and pay the
         Executive the Gross-up Payment specified in such Certificate. If for
         any reason the Company fails to comply with clause (2) of the preceding
         sentence, the Gross-up Payment specified in the Executive's
         Determination shall be controlling for all purposes.

              (b) If the Executive does not make a request for, and the Company
         does not deliver to the Executive, a Certificate, the Company shall,
         for purposes of Section 7.3, be deemed to have determined that no
         Gross-up Payment is due.

         7.3  Additional Gross-up Amounts. If the amount of Excise Taxes payable
by the Executive with respect to all Payments is determined (pursuant to the
subsequently-enacted provisions of the Code, final regulations or published
rulings of the IRS, final judgment of a court of competent jurisdiction or the
Company's independent auditors) to be greater than the amount previously paid by
the Company to the Executive pursuant to Section 7.1 or 7.2, as applicable, then
the Company shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

              (a) the sum of (i) such additional Excise Taxes and (ii) any
         interest, fines, penalties, expenses or other costs incurred by the
         Executive as a result of having taken a position in accordance with a
         determination made pursuant to Section 7.1,

multiplied by

              (b) the Gross-up Multiple.

         7.4  Gross-up Multiple. The Gross-up Multiple shall equal the quotient
(greater than one (1.0)) of one (1.0) divided by one (1.0) minus the sum,
expressed as a decimal fraction, of the rates of all federal, state, local and
other income and other taxes and any Excise Taxes applicable to the Gross-up
Payment; provided that, if such sum exceeds 0.75, it shall be deemed equal to
0.75 for purposes of this computation. (If different rates of tax are applicable
to various portions of a Gross-up Payment, the weighted average of such rates
shall be used.)

         7.5  Opinion of Counsel. "Executive Counsel Opinion" means a legal
opinion of nationally recognized executive compensation counsel who is counsel
to the Executive that there is a reasonable basis to support a conclusion that
the Gross-up Payment determined by the Executive has been calculated in accord
with this Article and applicable law. "Company Counsel Opinion" means a legal
opinion of nationally recognized executive compensation counsel who is counsel
to the Company that (a) there is a reasonable basis to support a conclusion that
the Gross-up Payment set forth of the Certificate of Company's independent

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<PAGE>   179

auditors has been calculated in accord with this Article and applicable law, and
(b) there is no reasonable basis for the calculation of the Gross-up Payment
determined by the Executive.

         7.6  Amount Increased or Contested. The Executive shall notify the
Company in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by the Company of a Gross-up Payment. Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid. The Executive shall give such notice as soon as practicable,
but no later than 10 business days, after the Executive first obtains actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such notice shall affect the Company's obligations under this Article
only if and to the extent that such failure results in actual prejudice to the
Company. The Executive shall not pay such claim less than 30 days after the
Executive gives such notice to the Company (or, if sooner, the date on which
payment of such claim is due). If the Company notifies the Executive in writing
before the expiration of such period that it desires to contest such claim, the
Executive shall:

              (a) give the Company any information that it reasonably requests
         relating to such claim,

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

              (c) cooperate with the Company in good faith to contest such
         claim, and

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax (to the extent not previously paid by the
Company to the Executive) or income tax, including related interest and
penalties, imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing, the Company shall control all
proceedings in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner. The Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify the Executive, on an after-tax basis, for any Excise Tax or income
tax, including related interest or penalties, imposed with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. The Company's control of the contest shall be limited to
issues with respect to which a Gross-up Payment would be payable. The Executive

                                      -20-

<PAGE>   180

shall be entitled to settle or contest, as the case may be, any other issue
raised by the IRS or other taxing authority.

         7.7  Refunds. If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 7.6, the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 7.6) promptly pay
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 7.6, a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such determination before the expiration of 30
days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-up Payment required to be paid. Any contest
of a denial of refund shall be controlled by Section 7.6.

                                 ARTICLE VIII.
                              EXPENSES AND INTEREST

         8.1  Legal Fees and Other Expenses.

              (a) If the Executive incurs legal, accounting and other fees or
         other expenses in a good faith effort to obtain benefits under this
         Agreement (including, without limitation, the fees and other expenses
         of the Executive's legal counsel, any expert witness fees and expenses,
         and accounting and other fees and expenses, including legal and
         accounting fees and expenses in connection with the delivery of the
         Executive Counsel Opinion referred to in Article VII), regardless of
         whether the Executive ultimately prevails, the Company shall reimburse
         the Executive on a monthly basis upon the written request for such fees
         and expenses to the extent not previously reimbursed under the
         Company's officers and directors liability insurance policy, if any.
         Simultaneously with each such payment Company shall pay Executive an
         amount such that after payment of incremental United States federal,
         state and local income, excise and other taxes payable by Executive
         ("Taxes") with respect to such tax reimbursement, there remains a
         balance sufficient to pay the Taxes on the reimbursement of such fees
         and expenses. The existence of any controlling case or regulatory law
         which is directly inconsistent with the position taken by the Executive
         shall be evidence that the Executive did not act in good faith.
         Executive's payment of such fees and expenses shall be a conclusive
         determination with respect to the Company that such fees and expenses
         are reasonable.

              (b) Reimbursement of legal fees and expenses shall be made monthly
         upon the written submission of a request for reimbursement together
         with evidence that such fees and expenses are due and payable or were
         paid by the Executive. If the Company shall have reimbursed the
         Executive for legal fees and expenses and it is later determined that
         the Executive was not acting in good faith, all amounts paid on behalf
         of, or reimbursed to, the Executive shall be promptly refunded to the
         Company.

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<PAGE>   181

              (c) To secure its obligations under this Section 8.1 the Company
         shall procure and maintain in force during the Agreement Term and
         thereafter for one (1) year or if longer until the termination (by
         final judgment and after all rights of appeal have been exhausted or
         waived) of any litigation involving a good faith effort of an Executive
         to obtain benefits under this Agreement, a letter of credit and an
         escrow in favor of Executive (together with other executives similarly
         situated). The letter of credit shall be issued by a bank or trust
         company organized under the laws of the United States or Canada or a
         state or province thereof and having a combined capital and surplus of
         not less than one hundred million dollars ($100,000,000), shall be in
         the aggregate amount of five hundred thousand dollars ($500,000) prior
         to July 1, 2001, and in the aggregate amount of two million dollars
         $2,000,000) on and after July 1, 2001, and shall be substantially in
         the form of that attached (with its attached Annexes and Exhibits) to
         this Agreement as Exhibit A. The escrow shall be maintained in the
         state of Illinois under an escrow agreement with a bank or trust
         company organized under the laws of the United States or Canada or a
         state or province thereof and having a combined capital and surplus of
         not less than one hundred million dollars ($100,000,000), and shall be
         substantially in the form of that attached (with its attached Exhibits)
         to this Agreement as Exhibit B.

         8.2 Interest. If the Company does not pay any amount due to the
Executive under this Agreement within three days after such amount became due
and owing, interest shall accrue on such amount from the date it became due and
owing until the date of payment at a annual rate equal to two percent (2.0%)
above the base commercial lending rate announced by the Company's principal
revolving credit lender in effect from time to time during the period of such
nonpayment; or, if the Company does not have a principal revolving credit
lender, then at two percent (2.0%) above the prime rate of interest in effect
from time to time during the period of such nonpayment, as reported from time to
time in the Wall Street Journal; but in no case greater than the maximum rate of
interest permitted by applicable law.

                                  ARTICLE IX.
                            NO SET-OFF OR MITIGATION

         9.1  No Set-off or Defenses by Company. The Executive's right to
receive when due the payments and other benefits provided for under this
Agreement is absolute, unconditional and shall not be subject to any set-off,
counterclaim or legal or equitable defense. The exclusive method for the Company
to avoid payments to the Executive under this Agreement, to the extent specified
in this Agreement, is to terminate Executive's employment for Cause pursuant to
Sections 4.3 and 5.2 of this Agreement. Time is of the essence in the
performance by the Company of its obligations under this Agreement. Any claim
which the Company may have against the Executive, whether for a breach of this
Agreement or otherwise, shall be brought in a separate action or proceeding and
not as part of any action or proceeding brought by the Executive to enforce any
rights against the Company under this Agreement.

         9.2  No Mitigation. The Executive shall not have any duty to mitigate
the amounts payable by the Company under this Agreement by seeking new
employment following termination. Except as specifically otherwise provided in
this Agreement, all amounts payable pursuant to this Agreement shall be paid
without reduction regardless of any amounts of salary,

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<PAGE>   182

compensation or other amounts which may be paid or payable to the Executive as
the result of the Executive's employment by another employer.

                                   ARTICLE X.
                       CONFIDENTIALITY AND NONCOMPETITION

         10.1 Confidentiality. Executive acknowledges that it is the policy of
the Company and its subsidiaries to maintain as secret and confidential all
valuable and unique information and techniques acquired, developed or used by
the Company and its Subsidiaries relating to their business, operations,
employees and customers, which gives the Company and its subsidiaries a
competitive advantage in the construction and engineering industry and other
businesses in which the Company and its subsidiaries are engaged ("Confidential
Information"). Executive recognizes that all such Confidential Information is
the sole and exclusive property of the Company and its Subsidiaries, and that
disclosure of Confidential Information would cause damage to the Company and its
Subsidiaries. Executive agrees that, except as required by the duties of his
employment with the Company and/or its Subsidiaries and except in connection
with enforcing the Executive's rights under this Agreement or if compelled by a
court or governmental agency, he will not, without the consent of the Company,
disseminate or otherwise disclose any Confidential Information obtained during
his employment with the Company and/or its Subsidiaries for so long as such
information is valuable and unique.

         10.2 Noncompetition/Nonsolicitation.

              (a) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive will not at any time directly or indirectly, in any capacity,
         engage or participate in, or become employed by or render advisory or
         consulting or other services in connection with any Prohibited Business
         as defined in Section 10.2(d).

              (b) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive shall not make any financial investment, whether in the form
         of equity or debt, or own any interest, directly or indirectly, in any
         Prohibited Business. Nothing in this Section 10.2(b) shall, however,
         restrict Executive from making any investment in any company whose
         stock is listed on a national securities exchange or actively traded in
         the over-the-counter market; provided that (1) such investment does not
         give Executive the right or ability to control or influence the policy
         decisions of any Prohibited Business, and (2) such investment does not
         create a conflict of interest between Executive's duties hereunder and
         Executive's interest in such investment.

              (c) Executive agrees that, during the period of his employment
         with the Company and/or its Subsidiaries and, if Executive's employment
         is terminated for any reason, thereafter for a period of one (1) year,
         Executive shall not (1) employ any employee of the Company and/or its
         Subsidiaries or (2) interfere with the Company's or any of its

                                      -23-

<PAGE>   183

         Subsidiaries' relationship with, or endeavor to entice away from the
         Company and/or its Subsidiaries any person, firm, corporation, or other
         business organization who or which at any time (whether before or after
         the date of Executive's termination of employment), was an employee,
         customer, vendor or supplier of, or maintained a business relationship
         with, any business of the Company and/or its Subsidiaries which was
         conducted at any time during the period commencing one year prior to
         the termination of employment.

              (d) For the purpose of this Section 10.2, "Prohibited Business"
         shall be defined as any construction and engineering business
         specializing in the engineering and design, materials procurement,
         fabrication, erection, repair and modification of steel tanks and other
         steel plate structures and associated systems and any branch, office or
         operation thereof, which is a direct and material competitor of the
         Company wherever the Company does business, including the Netherlands,
         the United States and any other country.

         10.3 Remedy. Executive and the Company specifically agree that, in the
event that Executive shall breach his obligations under this Article X, the
Company and its Subsidiaries will suffer irreparable injury and no adequate
remedy for such breach, and shall be entitled to injunctive relief therefor, and
in particular, without limiting the generality of the foregoing, the Company
shall not be precluded from pursuing any and all remedies it may have at law or
in equity for breach of such obligations; provided, however, that such breach
shall not in any manner or degree whatsoever limit, reduce or otherwise affect
the obligations of the Company under this Agreement, and in no event shall an
asserted breach of the Executive's obligations under this Article X constitute a
basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement.

                                  ARTICLE XI.
                                 MISCELLANEOUS

         11.1 No Assignability. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

         11.2 Successors. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns. The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to assume expressly and agree to perform this Agreement.
Any successor to the business and/or assets of the Company which assumes and
agrees to perform this Agreement by operation of law, contract, or otherwise
shall be jointly and severally liable with the Company under this Agreement.

         11.3 Payments to Beneficiary. If the Executive dies before receiving
amounts to which the Executive is entitled under this Agreement, such amounts
shall be paid as soon as administratively practicable in a lump sum to the
beneficiary designated in writing by the Executive, or if none is so designated,
to the Executive's estate.

                                      -24-

<PAGE>   184

         11.4  Non-alienation of Benefits. Benefits payable under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

         11.5  Severability. If any one or more articles, sections or other
portions of this Agreement are declared by any court or governmental authority
to be unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any article, section or other portion not so declared to be unlawful
or invalid. Any article, section or other portion so declared to be unlawful or
invalid shall be construed so as to effectuate the terms of such article,
section or other portion to the fullest extent possible while remaining lawful
and valid.

         11.6  Amendments. Except as provided in Section 2.2 hereof, this
Agreement shall not be altered, amended or modified except by written instrument
executed by the Company and Executive.

         11.7  Notices. All notices and other communications under this
Agreement shall be in writing and delivered by hand or by first class registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                             If to the Executive:

                             Mr. Robert H. Wolfe
                             732 Fairfield Court
                             Westmont, Illinois  60559

                             If to the Company (including any or all of CBICNV,
                             CBIC or CBICD):

                             Chicago Bridge & Iron Company
                             1501 North Division Street
                             Plainfield, Illinois  60544
                             Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing. Notice and communications shall be effective when actually received by
the addressee.

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

         11.9  Governing Law. This Agreement shall be interpreted and construed
in accordance with the laws of the State of Illinois, without regard to its
choice of law principles.

         11.10 Captions. The captions of this Agreement are not a part of the
provisions hereof and shall have no force or effect.

                                      -25-

<PAGE>   185

         11.11 Tax Withholding. The Company may withhold from any amounts
payable under this Agreement any federal, state or local taxes that are required
to be withheld pursuant to any applicable law or regulation.

         11.12 Joint and Several Obligations. The obligations of the Company
under this Agreement are joint and several obligations of CBICNV, CBIC and
CBICD; provided, however, that each of CBICNV, CBIC and CBICD may agree between
themselves but without adversely affecting the rights of the Executive which of
them shall provide any particular payment or benefit under this Agreement.

         11.13 No Waiver. The Executive's failure to insist upon strict
compliance with any provision of this Agreement shall not be deemed a waiver of
such provision or any other provision of this Agreement. A waiver of any
provision of this Agreement shall not be deemed a waiver of any other provision,
and any waiver of any default in any such provision shall not be deemed a waiver
of any later default thereof or of any other provision.

         11.14 Prior Agreement. The Change of Control Severance Agreement dated
March 4, 1999, between CBIC and the Executive is hereby terminated effective on
the date of this Agreement.

         11.15 Entire Agreement. This Agreement contains the entire
understanding of the Company and the Executive with respect to its subject
matter and supercedes any prior change of control severance agreement and any
Change of Control severance benefit provisions in any prior employment agreement
between the Company and the Executive.

                                      -26-

<PAGE>   186

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

                                      EXECUTIVE

                                      /s/ Robert H. Wolfe
                                      ------------------------------------------
                                      Robert H. Wolfe

                                      CHICAGO BRIDGE & IRON COMPANY N.V.

                                      By:   /s/ Gerald M. Glenn
                                           -------------------------------------
                                      Title:    Managing Director
                                             -----------------------------------

                                      CHICAGO BRIDGE & IRON COMPANY

                                      By:   /s/ Robert B. Jordan
                                           -------------------------------------
                                      Title:
                                             -----------------------------------

                                      CHICAGO BRIDGE & IRON COMPANY (DELAWARE)

                                      By:   /s/ Timothy J. Wiggins
                                           -------------------------------------
                                      Title:
                                             -----------------------------------

                                      -27-

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