Document:

AMENDMENT NO. 5

         AMENDMENT NO. 5 dated as of July 31, 2002 (this "AMENDMENT") to
AMENDMENT No. 1 and WAIVER dated as of January 28, 2002 (as the same has
heretofore been or may hereafter be amended from time to time, the "FIRST
AMENDMENT AND WAIVER") relating to the Second Amended and Restated Revolving
Credit Agreement dated as of May 25, 2001 (as the same has heretofore been or
may hereafter be amended from time to time, the "CREDIT AGREEMENT") among FOSTER
WHEELER LLC, FOSTER WHEELER USA CORPORATION, FOSTER WHEELER POWER GROUP, INC.
(formerly known as FOSTER WHEELER ENERGY INTERNATIONAL, INC.), FOSTER WHEELER
ENERGY CORPORATION, the Guarantors signatory thereto, the Lenders signatory
thereto, BANK OF AMERICA, N.A., as Administrative Agent, WACHOVIA BANK, NATIONAL
ASSOCIATION (formerly known as FIRST UNION NATIONAL BANK), as Syndication Agent,
and ABN AMRO BANK N.V., as Documentation Agent, arranged by BANC OF AMERICA
SECURITIES LLC, as Lead Arranger and Book Manager, and ABN AMRO BANK N.V.,
WACHOVIA SECURITIES, INC. (FORMERLY KNOWN AS FIRST UNION CAPITAL MARKETS),
GREENWICH NATWEST STRUCTURED FINANCE INC. and TORONTO DOMINION BANK, as
Arrangers.

         The parties hereto agree as follows:

         SECTION 1. DEFINED TERMS; REFERENCES. Unless otherwise specifically
defined herein, each term used herein which is defined in the Credit Agreement
has the meaning assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein" and "hereby" and each other similar reference
and each reference to "this Agreement" and each other similar reference
contained in the Credit Agreement shall, after this Amendment becomes effective,
refer to the Credit Agreement as amended hereby.

         SECTION 2. AMENDMENTS TO FIRST AMENDMENT AND WAIVER. (a) The definition
of "SPECIAL CHARGE" in Section 1(b) of the First Amendment and Waiver is amended
to read it in its entirety as follows:

                  "SPECIAL CHARGE" means, collectively, (i) the special charges
         listed on Schedule A hereto and communicated in writing to the Lenders
         on January 18, 2002, (ii) up to an additional $186,000,000 in charges
         and (iii) any contract writedowns or reduction in claims relating to
         the Combe landfill project and/or the SIPCO project.

                                        3

<PAGE>

          (b) Clause (i) of the definition of "WAIVER PERIOD" in Section 1(b) of
the First Amendment and Waiver is amended by changing "July 31, 2002" to "August
30, 2002".

          (c) Clause (i) of the second sentence of Section 2(g) of the First
Amendment and Waiver is amended by changing "July 31, 2002" to "August 30,
2002".

         SECTION 3. REPRESENTATIONS OF THE COMPANY. The Company represents and
warrants that (i) subject in the case of Section 3.08 to (w) the matters
disclosed in writing to the Lenders prior to the effective date of the First
Amendment and Waiver, (x) the $30,000,000 shortfall in Consolidated Adjusted
EBITDAR disclosed to the Lenders at the bank meeting held on April 4, 2002, (y)
an additional $26,000,000 shortfall in Consolidated Adjusted EBITDAR and (z) the
Special Charge, the representations and warranties of the Company set forth in
Article 3 of the Credit Agreement will be true on and as of the Amendment
Effective Date and (ii) no Event of Default or Potential Default will have
occurred and be continuing on such date, in each case after giving effect to
this Amendment.

         SECTION 4. GOVERNING LAW. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

         SECTION 5. COUNTERPARTS. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

         SECTION 6. CONDITIONS TO EFFECTIVENESS. This Amendment shall become
effective on the date when the following conditions are met (the "AMENDMENT
EFFECTIVE DATE"):

                  (a) the Administrative Agent shall have received from each of
         the Borrowers and the Guarantors and Lenders comprising the Required
         Lenders a counterpart hereof signed by such party or facsimile or other
         written confirmation (in form satisfactory to the Administrative Agent)
         that such party has signed a counterpart hereof; and

                  (b) the Administrative Agent shall have received evidence
         satisfactory to it of the payment by the Company of all fees and
         expenses owed by it pursuant to the Credit Agreement or any written
         agreement in connection with the First Amendment and Waiver (including
         without limitation the fees and expenses of Davis Polk & Wardwell,
         Ernst &

                                       2

<PAGE>

         Young Corporate Finance LLC and Peterson Consulting) for which
         invoices have theretofore been rendered.

                  IN WITNESS WHEREOF, the parties hereto have caused this
         Amendment to be duly executed as of the date first above written.

ATTEST:                              FOSTER WHEELER LLC, as a Borrower
                                     By: Foreign Holdings Ltd., its sole member

By   /s/ LISA FRIES GARDNER           By /S/ ROBERT D. ISEMAN
     ----------------------          --------------------------
     Name: Lisa Fries Gardner        Name: Robert D. Iseman
     Title:Corporate Secretary       Title:Vice President & Treasurer

                                     FOSTER WHEELER USA CORPORATION,
                                      as a Borrower

                                     By /S/ ROBERT A. KOECKERT
                                        -------------------------
                                     Name: Robert A. Koeckert
                                     Title: Treasurer

                                     FOSTER WHEELER POWER GROUP, INC.
                                      (formerly known as
                                     FOSTER WHEELER ENERGY INTERNATIONAL, INC.)
                                       as a Borrower

                                     By /s/ ROBERT D. ISEMAN
                                        --------------------------
                                     Name: Robert D. Iseman
                                     Title:Vice President & Treasurer

                                     FOSTER WHEELER ENERGY CORPORATION,
                                       as a Borrower

                                     By /S/ ROBERT A. KOECKERT
                                        -------------------------
                                     Name: Robert A. Koeckert
                                     Title: Treasurer

<PAGE>

                                     FOSTER WHEELER INC. (formerly known as
                                      FOSTER WHEELER US HOLDINGS, INC.),
                                      as a Guarantor

                                     By /s/ ROBERT D. ISEMAN
                                        --------------------------
                                     Name: Robert D. Iseman
                                     Title:Vice President & Treasurer

                                     FOSTER WHEELER INTERNATIONAL HOLDINGS, INC,
                                       as a Guarantor

                                     By /s/ ROBERT D. ISEMAN
                                        --------------------------
                                     Name: Robert D. Iseman
                                     Title:Vice President & Treasurer

                                     FOREIGN HOLDINGS LTD., as a Guarantor

                                     By /s/ ROBERT D. ISEMAN
                                        --------------------------
                                     Name: Robert D. Iseman
                                     Title:Vice President & Treasurer

                                     FOSTER WHEELER LTD., as a Guarantor

                                     By /s/ ROBERT D. ISEMAN
                                        --------------------------
                                     Name: Robert D. Iseman
                                     Title:Vice President & Treasurer

<PAGE>

                                     BANK OF AMERICA, N.A., individually and
                                     as Administrative Agent, LC Issuer and
                                     Swingline Lender

                                     By /S/ F.A. ZAGAR
                                        -------------------------
                                     Name: F.A. Zagar
                                     Title: Managing Director

                                     WACHOVIA BANK, NATIONAL ASSOCIATION,
                                     individually and as Syndication Agent

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     ABN AMRO BANK N.V., individually and as
                                      Documentation Agent

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     TORONTO DOMINION (TEXAS), INC.

                                     By
                                         -----------------------
                                     Name:
                                     Title:

<PAGE>
                                     BANK OF AMERICA, N.A., individually and as
                                        Administrative Agent, LC Issuer and
                                        Swingline Lender

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        individually and as Syndication Agent

                                     By  /s/ CHRISTOPHER TIERNEY
                                         -----------------------
                                     Name: Christopher Tierney
                                     Title: Senior Vice President

                                     ABN AMRO BANK N.V., individually and as
                                        Documentation Agent

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     TORONTO DOMINION (TEXAAS), INC.

                                     By
                                         -----------------------
                                     Name:
                                     Title:

<PAGE>

                                     BANK OF AMERICA, N.A., individually and as
                                        Administrative Agent, LC Issuer and
                                        Swingline Lender

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        individually and as Syndication Agent

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     ABN AMRO BANK N.V., individually and as
                                        Documentation Agent

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     By
                                         -----------------------
                                     Name:
                                     Title:

                                     TORONTO DOMINION (TEXAAS), INC.

                                     By   /S/ ANN S. SLANIS
                                         -----------------------
                                     Name: Ann S. Slanis
                                     Title:Vice President

<PAGE>

                                     NATIONAL WESTMINSTER BANK PLC,
                                      NEW YORK BRANCH

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     NATIONAL WESTMINSTER BANK PLC,
                                      NASSAU BRANCH

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     THE BANK OF NOVA SCOTIA

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     MERRILL LYNCH, PIERCE, FENNER &
                                      SMITH INCORPORATED

                                     By  /S/ GRAHAM GOLDSMITH
                                        ----------------------------
                                     Name: Graham Goldsmith
                                     Title: Managing Director

                                     SALOMON BROTHERS HOLDING COMPANY INC.

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

<PAGE>

                                     DEUTSCHE BANK AG NEW YORK BRANCH and/or
                                      CAYMAN ISLANDS BRANCH

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     BNP PARIBAS
                                      (successor by merger to Paribas)

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     PNC BANK, NATIONAL ASSOCIATION

                                     By  /s/ DENNIS F. LENNON
                                        ----------------------------
                                     Name:  Dennis F. Lennon
                                     Title: Vice President

                                     SOCIETE GENERALE, NEW YORK BRANCH

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

<PAGE>
                                     DEUTSCHE BANK AG NEW YORK BRANCH and/or
                                      CAYMAN ISLANDS BRANCH

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     BNP PARIBAS
                                      (successor by merger to Paribas)

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     By
                                        ----------------------------
                                     Name:
                                     Title:

                                     PNC BANK, NATIONAL ASSOCIATION

                                     By  /s/ DENNIS F. LENNON
                                        ----------------------------
                                     Name:  Dennis F. Lennon
                                     Title: Vice President

                                     SOCIETE GENERALE, NEW YORK BRANCH

                                     By  /s/ GORDON R. EADON
                                        ----------------------------
                                     Name:  Gordon R. Eadon
                                     Title: Director

<PAGE>

                                     WELLINGTON PARTNERS LIMITED
                                     PARTNERSHIP
                                     By:  Citadel Limited Partnership,
                                          its Portfolio Manager
                                     By:  GLB Partners, L.P.,
                                          its General Partner
                                     By:  Citadel Investment Group, L.L.C.,
                                          its General Partner

                                     By
                                         -----------------------------
                                     Name:
                                     Title:

                                     LIBERTYVIEW FUND LLC

                                     By   /s/ GEORGE T. HARTIGAN
                                           --------------------------
                                     Name:  George T. Hartigan
                                     Title: Managing Director, Chief Operations
                                            Officer, Liberty View Capital
                                            Management, Inc.Execution Copy

                         FORBEARANCE EXTENSION AGREEMENT

              This Forbearance Extension Agreement (this "AGREEMENT") made as of
this 31st day of July, 2002 by and among (i) Perryville III Trust, a trust
created under the laws of the state of New York pursuant to a trust agreement
dated as of December 16, 1994 (the "LANDLORD"), (ii) BNY Midwest Trust Company,
as successor trustee to Harris Trust and Savings Bank, not in its individual
capacity but solely in its capacity as Owner Trustee of Perryville III Trust
(the "OWNER TRUSTEE"), (iii) Foster Wheeler Realty Services, Inc., a Delaware
corporation ("FWRS"), (iv) Foster Wheeler LLC, a Delaware limited liability
company (together with FWRS, the "TENANTS" and each a "TENANT"), (v) Lombard US
Equipment Finance Corporation, a New York corporation (the "OWNER PARTICIPANT"),
(vi) National Westminster Bank Plc (the "AGENT") and (vii) the banks listed on
Schedule I to that certain Construction Loan Agreement dated as of December 16,
1994, among the Landlord, as Borrower, the lenders party thereto and their
permitted successors and assigns (the "LENDERS") and the Agent.

              WHEREAS, the parties hereto have entered into that certain
Forbearance Agreement dated as of February 28, 2002 (the "FORBEARANCE
AGREEMENT") in connection with the Specified Events of Default (as defined in
the Forbearance Agreement);

              WHEREAS, the parties hereto have entered into Forbearance
Extension Agreements dated as of April 12, 2002, dated as of April 30, 2002,
dated as of May 30, 2002 and dated as of June 30, 2002 respectively, in
connection with the Specified Events of Default;

              WHEREAS, Foster Wheeler LLC has entered into that certain
Amendment No. 5 dated as of the date hereof to Amendment No. 1 and Waiver (the
"AMENDMENT TO AMENDMENT NO. 1 AND WAIVER") relating to the Second Amended and
Restated Revolving Credit Agreement dated as of May 25, 2001 (as amended,
modified and supplemented from time to time, the "CREDIT AGREEMENT") among
Foster Wheeler LLC, Foster Wheeler USA Corporation, Foster Wheeler Power Group,
Inc. (formerly known as Foster Energy International), Foster Wheeler Energy
Corporation, the guarantors signatory thereto, the lenders signatory thereto,
Bank of America, N.A., as administrative agent, First Union National Bank, as
syndication agent, and ABN AMRO Bank N.V., as documentation agent, arranged by
Banc of America Securities LLC, as lead arranger and book manager, and ABN AMRO
Bank N.V., First Union Capital Markets, Greenwich Natwest Structured Finance
Inc. and Toronto Dominion Bank, as arrangers; and

         WHEREAS, the parties hereto desire to (i) extend the term of
forbearance by the Agent, the Landlord, the Required Lenders and the Owner
Participant under the Forbearance Agreement and (ii) make certain other
amendments to the Forbearance Agreement.

<PAGE>

              NOW, THEREFORE, based on these premises, and in consideration of
the mutual promises, representations and warranties, covenants and conditions
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Tenants, the Landlord, the
Agent, the Owner Participant and the Required Lenders signatory hereto hereby
agree as follows:

              SECTION 1. DEFINITIONS. The capitalized terms set forth herein,
and not otherwise defined herein shall have the meanings given to such terms in
that certain Master Lease dated as of December 16, 1994 (as the same has been
and may hereafter be amended, modified or supplemented from time to time, the
"MASTER LEASE").

              SECTION 2. AMENDMENTS. Effective as of the date hereof, the
Forbearance Agreement is hereby amended as follows:

                  (a) Section 4 of the Forbearance Agreement is hereby amended
by deleting the date "July 31, 2002" in clause (a) thereof and replacing such
date with "August 31, 2002".

                  (b) Section 4 of the Forbearance Agreement is hereby amended
by adding the following immediately prior to the word "relating" in the eighth
line thereof:

                      "and the Amendment No. 5 dated as of July 31, 2002 to
Amendment No.1 and Waiver,"

              SECTION 3. AGREEMENT. Rent. Pursuant to Paragraph 4(c) of the
Master Lease, on August 29, 2002 the Tenants shall make a monthly rental payment
to the Landlord in an amount equal to $324,235.52 which constitutes 150% of the
January 2002 rental payment.

              SECTION 4. CONDITIONS PRECEDENT. The effectiveness of this
Agreement shall be subject to the satisfaction of the following conditions
precedent:

                   (a) Receipt by the Agent of this Agreement executed by the
Tenants, the Landlord, the Owner Trustee, the Agent, the Owner Participant and
the Required Lenders.

                    (b) Receipt by the Agent of an extension fee in the amount
of 50 basis points on the aggregate outstanding Loans and Equity Investment
Amount to be distributed on a pro rata basis to each of the Lenders signatory
hereto and the Owner Participant.

                    (c) Receipt by the Agent of payment by the Tenants of all
accrued fees and expenses of Agent, its counsel and consultants.

                    (d) Receipt by the Agent of a copy of the Amendment to
Amendment No. 1 and Waiver executed by the requisite lenders thereunder.

              SECTION 5. REPRESENTATIONS AND WARRANTIES. In order to induce the
Agent, the Landlord, the Required Lenders and the Owner Participant to enter
into this

                                       2

<PAGE>

Agreement, the Tenants jointly and severally represent and warrant to the
Agent, the Landlord, the Required Lenders and the Owner Participant that:

                   (a) Subject in the case of Paragraph 32(h) to matters
disclosed in writing to the Lenders and Owner Participant prior to the effective
date of this Agreement, the representations and warranties of the Tenants set
forth in Paragraph 32 of the Master Lease are true and correct in all material
respects.

                   (b) The Agent, the Lenders and the Owner Participant have a
valid, enforceable and fully perfected first priority security interest in the
Property subject to no Liens other than Permitted Encumbrances.

                   (c) Except as otherwise provided herein, no Event of Default
exists as of the date hereof, no Event of Default would result from the
execution, delivery or consummation of the transactions contemplated by this
Agreement and no default exists under any of the Tenants' financing documents or
material contracts or agreements.

              SECTION 6. FULL FORCE AND EFFECT. Except as expressly amended
hereby, all of the provisions of the Forbearance Agreement shall continue to be,
and shall remain, in full force and effect in accordance with their terms.
Nothing contained herein shall constitute a waiver by the Agent, the Landlord,
the Lenders or the Owner Participant of any of their rights and remedies under
the Operative Documents or under the Forbearance Agreement, all of which rights
and remedies are expressly reserved and not waived.

              SECTION 7. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ALL
RESPECTS IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAWS PROVISIONS THEREOF (OTHER THAN
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

              SECTION 8. COUNTERPARTS. This Agreement may be executed by one or
more of the parties on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement.

      [Remainder of Page Intentionally Left Blank; Signature Pages Follow]

                                       3

              IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed under seal by their respective duly authorized officers as of the
date first written above.

                                     PERRYVILLE III TRUST

                                     By: BNY Midwest Trust Company, as
                                     successor trustee to Harris Trust and
                                     Savings Bank, not in its individual
                                     capacity but solely in its capacity as
                                     Owner Trustee of Perryville III Trust

                                      By: /s/ CYNTHIA DAVIS
                                         -------------------------
                                          Name:  Cynthia Davis
                                          Title: Assistant Vice President

                                     BNY MIDWEST TRUST COMPANY,
                                     as successor trustee to
                                     Harris Trust and Savings
                                     Bank, not in its individual
                                     capacity but solely in its
                                     capacity as Owner Trustee
                                     of Perryville III Trust

                                     By: /s/ CYNTHIA DAVIS
                                        -------------------------
                                     Name:  Cynthia Davis
                                     Title: Assistant Vice President

                                   FOSTER WHEELER REALTY SERVICES, INC., a
                                     Delaware corporation

                                     By: /s/ ROBERT D. ISEMAN
                                        -------------------------
                                     Name:  Robert D. Iseman
                                     Title: Treasurer

                                     FOSTER WHEELER LLC,
                                     a Delaware limited liability company

                                     By: /s/ ROBERT D. ISEMAN
                                        -------------------------
                                     Name:  Robert D. Iseman
                                     Title: Vice President & Treasurer

                                     AGENT, LENDERS, AND OWNER PARTICIPANT:

                                     NATIONAL WESTMINSTER BANK Plc, as Agent

                                     By:  /s/ CHARLES GREER
                                     -----------------------------
                                     Name:  Charles Greer
                                     Title: Senior Vice President

                                     NATIONAL WESTMINSTER BANK Plc, as Lender

                                     By:  /s/ CHARLES GREER
                                     -----------------------------
                                     Name:   Charles Greer
                                     Title:  Senior Vice President

                                     BANK OF MONTREAL, as Lender

                                     By:
                                     -----------------------------
                                     Name:
                                     Title:

                                     THE BANK OF NOVA SCOTIA, as Lender

                                     By:  /s/ K.C. CLARK
                                     -----------------------------
                                     Name:   K.C. Clark
                                     Title:  Vice President

                                     WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Lender

                                     SUCCESSOR IN INTEREST TO FIRST FIDELITY
                                       BANK, NATIONAL ASSOCIATION

                                     By:  /s/ CHRISTOPHER TIERNEY
                                     -----------------------------
                                     Name:   Christopher Tierney
                                     Title:  Senior Vice President

<PAGE>

                                     LOMBARD US EQUIPMENT FINANCE CORPORATION

                                     By:  /s/ RICHARD DANGERFIELD
                                     -----------------------------
                                     Name:  Richard Dangerfield
                                     Title: Secretary

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