EMPLOYMENT AGREEMENT DEED OF VARIATION

1.

Clause 2.2 of the Appointment Letter shall be replaced with the following terms:

2.

2.1

In addition to the matters set out in clause 12.3 of the Appointment Letter, the Company also may terminate the Executive’s employment immediately and without payment in lieu of notice if he materially breaches the Foster Wheeler Code of Business Conduct and Ethics. For the avoidance of doubt, immediate dismissal or termination with immediate effect pursuant to the Appointment Letter’s Clause 12.3 (including as such Clause is amended by this Deed of Variation) shall be deemed termination for “Cause” as such term is used in this Agreement.

2.2

Clause 7.1 of the Appointment Letter shall be replaced with the following terms:

2.3

Reference to age 60 in clause 12.1(a) of the Appointment Letter shall be replaced with age 65. For the avoidance of doubt, the Executive’s Normal Retirement Date remains his 60^th birthday for the purposes of the Foster Wheeler (UK) Pension Plan.

3.

(i)

an amount equal to twelve (12) months of basic salary at the rate in effect on the Termination Date, payable in twelve (12) equal monthly instalments on the Company’s normal payroll dates;

(ii)

an amount equal to one hundred percent (100%) of the Executive’s annual cash incentive payment at target, payable once in a lump sum at the same time that the Company pays annual cash incentives to its active employees pursuant to its then current annual incentive program;

(iii)

twelve (12) months of continued benefits under the Company’s medical benefits programme following the Termination Date at active employee levels and at active employee cost, if and to the extent the Executive was participating in any such plan on the Termination Date, or, at the Company’s discretion, payment to the Executive of an amount equivalent to the cost of the Executive acquiring a private or individual policy providing substantially similar benefits less the amount the Executive would have paid for medical benefits if he had remained an active employee; and

(iv)

executive outplacement services by a firm selected by the Executive and approved by the Company in an amount not to exceed an equivalent sum of $8,000.00 (US Dollars) in the aggregate (which amount includes any applicable gross-up for any taxes due for such payment).

4.

4.1

Confidential Information. The Executive acknowledges that the Executive’s services will be unique, that they will involve the development of Company-subsidized relationships with key customers, suppliers, and service providers as well as with key Company employees and that the Executive’s work for the Company will give the Executive access to highly confidential information not available to the public or competitors, including trade secrets and confidential marketing, sales, product development and other data and information which it would be impracticable for the Company to effectively protect and preserve in the absence of this Section 4 and the disclosure or misappropriation of which could materially adversely affect the Company. Accordingly, the Executive agrees that except in the course of performing the Executive’s normal duties, not at any time, whether before, during or after the Executive’s employment with the Company, to divulge to any other entity or person any confidential information acquired by the Executive concerning the Company’s or its Group Companies’ financial affairs or business processes or methods or their research, development or marketing programs or plans, or any other of its or their trade secrets. The foregoing prohibitions shall include, without limitation, directly or indirectly publishing (or causing, participating in, assisting or providing any statement, opinion or information in connection with the publication of) any diary, memoir, letter, story, photograph, interview, article, essay, account or description (whether fictionalized or not) concerning any of the foregoing, publication being deemed to include any presentation or reproduction of any written, verbal or visual material in any communication medium, including any book, magazine, newspaper, theatrical production or movie, or television or radio programming or commercial. In the event that the Executive is requested or required to make disclosure of information subject to this Section 4.1. under any court order, subpoena or other judicial process, then, except as prohibited by law, the Executive will promptly notify the Company, take all reasonable steps requested by the Company to defend against the compulsory disclosure and permit the Company to control with counsel of its choice any proceeding relating to the compulsory disclosure. The Executive acknowledges that all information, the disclosure of which is prohibited by this section, is of a confidential and proprietary character and of great value to the Company and its subsidiaries and affiliates.

4.2

Clauses 13.1 and 13.2 of the Appointment Letter shall be replaced with the following terms:

(i)

engage in any activity for or on behalf of a Competitor, as director, employee, shareholder (excluding any such shareholding by the Executive of no more than 5% of the shares of a publicly-traded company), consultant or otherwise, which is the same as or similar to activity in which Executive engaged at any time during the Relevant Period; or

(ii)

be employed, engaged, concerned or interested in any business which was at any time during the Relevant Period a Relevant Customer of the Company or any Relevant Group Company and/or do or attempt to do anything which causes or may cause the Relevant Customer or any Relevant Supplier to the Company or any Relevant Group Company to cease or materially to reduce its orders, supplies or contracts with the Company or any Relevant Group Company; or

(iii)

so as to compete with the Company or any Relevant Group Company canvass, solicit, deal, contract or approach or cause to be canvassed, solicited or approached any Relevant Customer for the sale or supply of Relevant Products or Services or endeavour to do so; or

(iv)

solicit, induce or entice away from the Company or any Relevant Group Company or, in connection with any business in or proposing to be in competition with the Company or any Relevant Group Company, employ, engage or appoint or in any way cause to be employed, engaged or appointed a Critical Person whether or not such person would commit any breach of his or her contract of employment or engagement by leaving the service of the Company or any Relevant Group Company.

4.3

For purposes of this Agreement:

(i)

negotiating with the Company or a Relevant Group Company for the sale or supply of Relevant Products or Services; or

(ii)

a client or customer of the Company or any Relevant Group Company for the sale or supply of Relevant Products or Services; or

(iii)

in the habit of dealing with the Company or any Relevant Group Company for the sale or supply of Relevant Products or Services

(i)

negotiating with the Company or a Relevant Group Company for the sale or supply of Relevant Products or Services; or

(ii)

in the habit of dealing with the Company or any Relevant Group Company for the sale or supply of Relevant Products or Services; or

(iii)

selling or supplying the Company or a Relevant Group Company any Relevant Products or Services.

4.4

Remedies and Injunctive Relief. If the Executive commits a breach or threatens to breach any of the provisions of Section 4.1 or 4.2 hereof, the Company shall have the right and remedy to have the provisions of this Agreement specifically enforced by injunction or otherwise by any court having jurisdiction, it being acknowledged and agreed that any such breach will cause irreparable injury to the Company in addition to money damage and that money damages alone will not provide a complete or adequate remedy to the Company, it being further agreed that such right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity.

4.5

Severability. If any of the covenants contained in Sections 4.1 or 4.2, or any part thereof, hereafter are construed to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be given full effect, without regard to the invalid portions.

4.6

Extension of Term of Covenants Following Violation. The period during which the prohibitions of Section 4.2 are in effect shall be extended by any period or periods during which the Executive is in violation of Section 4.2.

4.7

Blue Pencilling by Court. If any of the covenants or definitions contained in Sections 4.1, 4.2 or 4.3, or any part thereof, are held to be unenforceable, the parties agree that the court making such determination shall have the power to revise or modify such provision to make it enforceable to the maximum extent permitted by applicable law and, in its revised or modified form, said provision shall then be enforceable.

4.8

Blue Penciling by One Court Not to Affect Covenants in Another Jurisdiction. The parties hereto intend to and hereby confer jurisdiction to enforce the covenants contained in Sections 4.1, 4.2 or 4.3 upon the courts of any jurisdiction within the geographical scope of such covenants. In the event that the courts of any one or more of such jurisdictions shall hold such covenants unenforceable by reason of the breadth of such covenants or otherwise, it is the intention of the parties’ hereto that such determination not bar or in any way affect the Company’s right to the relief provided above in the courts of any other jurisdictions within the geographical scope of such covenants as to breaches of such covenants in such other respective jurisdictions, the above covenants as they relate to each jurisdiction being for this purpose severable into diverse and independent covenants.

4.9

Group Companies. The restrictions entered into by the Executive in clauses 4.1 and 4.2 above are given to the Company for itself and as trustee for each and any Group Company and the Company hereby declares that to the extent that such restrictions relate to any Group Company the Company holds the benefit of them as trustee.

5.

5.1.1

Definitions.

(i)

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

(ii)

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

(iii)

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

(iv)

Parent. For the purposes of this Agreement “Parent” shall mean Foster Wheeler Ltd., a Bermuda company.

(v)

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

5.1.2

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

(i)

Accrued Obligations. The sum of (I) the Executive’s Annual Base Salary through the Termination Date to the extent not theretofore paid, and (II) any compensation previously deferred by the Executive (together with any accrued interest or earnings thereon) and any accrued vacation pay, in each case, to the extent not theretofore paid (the sum of the amounts described in subclauses (I) and (II), the “Accrued Obligations”), all in a lump sum in cash within 30 days following the Termination Date; and

(ii)

Base Salary. Base Salary at the rate in effect on the Termination Date and continuing for two (2) years thereafter, payable in twenty-four (24) equal monthly instalments on the Company’s normal payroll dates;

(iii)

Bonus. Two (2) payments, each in an amount equal to one hundred percent (100%) of the Executive’s annual cash incentive payment at target, one (1) of each such payments being payable in each of the two (2) years following the Termination Date at the same time that the Company pays annual cash incentives to its active employees pursuant to its then current annual incentive program;

(iv)

Medical Coverage. For two (2) years after the Executive’s Termination Date, or such longer period as may be provided by the terms of the appropriate health or welfare plan, program, practice or policy, the Company shall continue benefits to the Executive and/or the Executive’s family at least equal to those which would have been provided to them in accordance with the health or welfare plans, programs, practices and policies if the Executive’s employment had not been terminated or, if more favorable to the Executive, and to the extent he otherwise is or becomes eligible therefor, as in effect generally at any time thereafter with respect to other similarly situated peer executives of the Company and the Affiliated Companies and their families; provided, however, that if the Executive becomes reemployed with another employer and is eligible to receive health or welfare benefits under another employer provided plan, the health and welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility, and provided, however, that in lieu of the foregoing and at the Company’s discretion, the Company may make payment to the Executive of an amount equivalent to the cost of the Executive acquiring a private or individual policy providing benefits substantially similar to those set forth above in this subsection (iv). For purposes of determining eligibility (but not the time of commencement of benefits) of the Executive for retiree benefits pursuant to such plans, practices, programs and policies, the Executive shall be considered to have remained employed until the second anniversary of the Termination Date and to have retired on such second anniversary;

(v)

Outplacement Services. The Company shall, at its sole expense as incurred, in an amount not to exceed $8,000.00 in the aggregate (which amount includes any applicable gross-up for any taxes), provide the Executive with outplacement services the scope and provider of which shall be selected by the Executive in the Executive’s sole discretion; and

(vi)

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

5.1.3

Obligations of the Company upon Executive’s Death. If the Executive’s employment is terminated by reason of the Executive’s death during the Change of Control Period, the Company shall provide the Executive’s estate or beneficiaries with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. The Accrued Obligations shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Termination Date. With respect to the provision of Other Benefits, the term “Other Benefits” as utilized in this Subsection 5.1.3 shall include, without limitation, and the Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company and the Affiliated Companies to the estates and beneficiaries of similarly situated peer executives of the Company and the Affiliated Companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other similarly situated peer executives and their beneficiaries at any time during the 120-day period immediately preceding the Start Date or, if more favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date of the Executive’s death with respect to other similarly situated peer executives of the Company and the Affiliated Companies and their beneficiaries.

5.1.4

Obligations of the Company upon Executive’s Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability (for the purposes of this Agreement defined to mean the physical or mental disability of the Executive, whether totally or partially, such that with or without reasonable accommodation the Executive is unable to perform the Executive’s material duties, for a period of not less than one hundred and eighty (180) consecutive days) during the Change of Control Period, the Company shall provide the Executive with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. The Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Termination Date. With respect to the provision of Other Benefits, the term “Other Benefits” as utilized in this Subsection 5.1.4 shall include, and the Executive shall be entitled after the Disability start date to receive, disability and other benefits at least equal to the most favorable of those generally provided by the Company and the Affiliated Companies to similarly situated disabled executives and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other similarly situated peer executives and their families at any time during the 120-day period immediately preceding the Start Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter generally with respect to other similarly situated peer executives of the Company and the Affiliated Companies and their families.

5.1.5

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

6.

7.

Deductions and Withholdings. All payments and other compensation provided in connection with this Agreement shall be less such deductions or withholdings as are required by applicable law.

8.

9.

10.

11.

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

12.

Applicable law: This Agreement will be governed by and interpreted in accordance with the law of England and Wales.

EXECUTED AND DELIVERED as a

)

Deed by FOSTER WHEELER ENERGY

)

LIMITED acting by Francis Bird and

)

Keith Batchelor

)

EXECUTED AND DELIVERED as a

)

Deed by THE EXECUTIVE in the

)

presence of:

)

Signature:

Name:

Karen Allcock

Address:

19 The Delphi

Lower Earley

Reading