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                                                                   EXHIBIT 10.13



FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        129

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99

Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================

OBJECTIVE

To provide severance compensation to eligible executives of Fluor Corporation
and designated subsidiaries (the company) who leave the company, depending on
the circumstances and conditions leading to termination.

ELIGIBILITY

Executives of Fluor Corporation and designated subsidiaries actively at work who
are participants in the Fluor Corporation and Subsidiaries Executive Incentive
Compensation Plan.

DEFINITIONS

For the purpose of the Plan, the following definitions apply:

           A.   VOLUNTARY SEPARATION

                Action taken by an executive for personal reasons, to seek other
                employment, to accept another position, for failure to return at
                conclusion of leave, or to voluntarily retire.


           B.   INVOLUNTARY SEPARATION

                1.    Action taken by the company due to reduction in force
                      resulting from reorganization or reduced workload or other
                      similar circumstances whereby the executive's services are
                      no longer required on the job. Executives involuntarily
                      separated who meet the retirement criteria may elect
                      retirement.

                2.    Action taken by the company when an executive is covered
                      by the Americans with Disabilities Act and is unable to
                      perform his/her essential job functions with reasonable
                      accommodation.


           C.   INVOLUNTARY DISCHARGE

                Action taken by the company for reasons other than stated in
                Paragraph B. above including but not limited to absenteeism,
                misconduct, insubordination, appearing at work under the
                influence of a controlled substance or alcohol, unethical
                behavior, disclosure of confidential information, sexual
                harassment, employment discrimination, or unsatisfactory
                performance.


<PAGE>   2

FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        130

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99
             (Continued)

Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================

           D.   OFFICER

                An executive who is a vice president or above of Fluor
                Corporation, Fluor Daniel, Inc., Fluor Signature Services, Fluor
                Global Services, Inc., or Fluor Constructors, Inc., who
                participates in the Fluor Corporation and subsidiaries Executive
                Incentive Compensation Plan.


           E.   COMPLETED YEARS OF ACCUMULATED SERVICE

                A period of accumulated service with the company, subject to the
                limitation set forth under Procedure, A.4.c.


           F.   BENEFICIARY

                The beneficiary designated by the executive under the Fluor
                Corporation Employee's Retirement Plan, or, if no such
                designation has been made, then as designated under the Group
                Life/Health Insurance Plan unless the executive otherwise makes
                a beneficiary designation on the form provided by the
                executive's corporate employer, or, in the absence of any
                designation, the administrator or executor of the executive's
                estate.


PROCEDURE

           A.   SEVERANCE PAY

                1.    Voluntary Separation

                      The company will not provide severance pay nor prorated
                      Incentive Compensation (Paragraph A under "Definitions").

                2.    Involuntary Separation

                      Severance pay will be based on current base salary and
                      total completed years of accumulated service as follows:

                      a.   Officers

                           1.   Two weeks' severance pay for each completed year
                                of accumulated service up to 52 weeks.

                           2.   Minimum eight weeks' severance.



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FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        131

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99
             (Continued)

Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================

                      b.   Non-Officer Executives

                           1.   Two weeks' severance pay for each completed year
                                of accumulated service up to 26 weeks.

                           2.   Minimum four weeks' severance

                3.    Involuntary Discharge

                      a.   The company will not provide severance pay nor
                           consider proration of Incentive Compensation
                           (Paragraph C, Definitions).

                4.    Limitations

                      a.   Maximum severance pay will be 52 weeks for officers,
                           26 weeks for non-officer executives.

                      b.   Minimum severance pay will be eight weeks for
                           officers, four weeks for non-officer executives.

                      c.   The total completed years of accumulated service
                           calculated for a severance payment may only be used
                           one time in severance calculations.

                      d.   For executives involuntarily separated and placed on
                           Leave of Absence in Lieu of Layoff, severance pay
                           will be based on completed years of accumulated
                           service up to the effective date of the Leave of
                           Absence.

                      e.   Officers in policy making positions who meet
                           retirement criteria will receive severance pay as
                           follows:

                           1.   Officers who meet the minimum retirement income
                                requirement set forth by federal law, excluding
                                any amount payable under this Plan, will receive
                                severance pay for only the period from the date
                                of termination until January 2 following the
                                officer's 65th birthday subject to the
                                limitation set forth under Procedure, A.2.a.

                           2.   Officers who do not meet the minimum retirement
                                income requirement set forth by federal law,
                                computed excluding any amount payable under this
                                Plan, will receive severance pay as determined
                                under Procedure, A.2.a.

<PAGE>   4

FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        132

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99
             (Continued)
Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================

                      f.   In the case of involuntary separation due to an
                           executive's inability to perform his/her essential
                           job functions with reasonable accommodation, the
                           executive's severance pay amount will be reduced by
                           the expected entitlements under Fluor's short-term
                           and long-term disability for the number of weeks
                           determined under Procedure A.2.a and b. If the actual
                           entitlements received by the employee are less than
                           that deducted from severance pay, the employee will
                           be paid the difference for the period of weeks for
                           which the employee received severance. This provision
                           is not intended to affect any state or federal
                           benefits to which the executive may be entitled.

                      g.   In cases where the executive is entitled to
                           legislated severance pay in non-U.S. countries,
                           executive's severance pay amount will be reduced by
                           any legislated severance payments required of the
                           company that are calculated with reference to the
                           number of weeks determined under Procedure A.2.a and
                           b.

                5.    Severance pay will be paid in a lump sum, or at the
                      discretion of the company, annual installments over a
                      period not to exceed the total number of weeks determined
                      under Paragraph A.2.a. and b. above.

                6.    In event of an executive's death prior to payment of the
                      entire entitlement, payment may be made to the designated
                      beneficiary in one lump sum or by continuation of
                      installments at the discretion of the executive's
                      corporate employer.


           B.   INCENTIVE COMPENSATION

                (As defined in the Executive Incentive Compensation Plan, Fluor
                Corporation and Subsidiaries Management Manual)

                1.    Voluntary Separation

                      The company will not provide a prorated incentive award.

                2.    Involuntary Separation

                      Incentive Compensation may be considered based on the
                      number of completed months of service during the current
                      fiscal year prior to termination and consistent with the
                      administration of the Plan during the year of termination.


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FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        133

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99
             (Continued)
Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================

                3.    Involuntary Discharge

                      The company will not provide a prorated incentive award.


           C.   COMPANY AUTOMOBILES

                      In company locations where officers/directors may be
                      assigned company-owned automobiles, the following will
                      apply:

                      a.   Voluntary Separation

                           Officers/directors who voluntarily retire will be
                           presented with the automobile that is currently
                           assigned as a gift.


                      b.   Involuntary Separation

                           Officers/directors who are requested to take early
                           retirement will be presented with the automobile
                           which is currently assigned as a gift.

                      c.   Involuntary Discharge

                           Officers/directors will not be given an automobile,
                           and it will not be available for purchase.


           D.   CLUB MEMBERSHIP

                Company memberships will not be awarded to an executive
                regardless of reason for termination.


           E.   AUTOMOBILE ALLOWANCE

                1.    In locations where executives receive a car
                      allowance/insurance, the following will apply:

                      a.   Voluntary Separation

                           The company will not provide a car
                           allowance/insurance.


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FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        134

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99
             (Continued)
Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================

                      b.   Involuntary Separation

                           The company will not provide a car
                           allowance/insurance.


                      c.   Involuntary Discharge

                           The company will not provide a car
                           allowance/insurance.

           F.   INSURANCE COVERAGE

                Applicable insurance coverage, i.e., group health, long-term
                disability, executive health, etc., will cease on date of
                termination. Where applicable, departing executive may elect
                continued coverage through the Consolidated Omnibus Budget
                Reconciliation Act (COBRA).

           G.   TIME OFF WITH PAY (TOWP) PROGRAM

                Balance will be paid at time of termination.

           H.   STOCK BASED AWARDS

                1.    Voluntary Separation

                      Upon qualified retirement, awards become 100 percent
                      vested.

                2.    Involuntary Separation

                      Upon qualified retirement, awards become 100 percent
                      vested.

                3.    Involuntary Discharge

                      Vested portion may be exercised.


           I.   LONG TERM INCENTIVE (LTI) PROGRAM

                Applicable cash awards under the long-term incentive program
                will not be prorated for any reason, except death or total and
                permanent disability.


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FLUOR CORPORATION AND SUBSIDIARIES
       Management  Manual

================================================================================

Section:     Compensation                                  Page:        135

Subject:     EXECUTIVE SEVERANCE PLAN                      Effective:   07-21-99
             (Continued)
Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  10-20-98

================================================================================


           J.   WAIVERS

                A settlement agreement and release form must be obtained from
                employees in exchange for severance benefits. No severance
                benefit will be due employees unless a settlement and release
                agreement provided by the company has been properly executed.


           K.   OUTPLACEMENT

                In-house outplacement services are available.


           L.   PLAN TERMINATION

                This Plan will expire December 31st., 2000. Any executive whose
                employment terminates after the Plan expires, will not be
                eligible for participation in the Plan. Further, no benefits
                will accrue or be payable under the Plan after Plan Termination.


           M.   EXCEPTION

                Approved by the Chief Executive Officer of Fluor Corporation.