Document:

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                                                                   Exhibit 10.16

                                                                          HR-148
                                                        EFFECTIVE DATE: 02-04-04

FLUOR HUMAN RESOURCES POLICY  __________________________________________________
                                                                POLICY/PROCEDURE

THIS FLUOR ENTERPRISES, INC. POLICY IS SUBJECT TO MODIFICATION OR REVISION IN
PART OR IN ITS ENTIRETY TO REFLECT CHANGES IN CONDITIONS SUBSEQUENT TO THE
EFFECTIVE DATE OF THIS POLICY.

SUBJECT:  BUSINESS ETHICS AND CONDUCT

HR-148
EFFECTIVE DATE:  02-04-04
SUPERSEDES: 03-03-03

I.   POLICY

     Employees are expected to adhere to the highest standards of business
     ethics and to conduct themselves and Fluor's business in a manner that will
     safeguard the company's reputation and retain the respect of its
     shareholders and all who associate with Fluor. No one in Fluor may give any
     order or directive that would violate the principle of strict adherence to
     the law, regulations governing company activities, or this policy. Fluor
     has additional policies in place that supplement and support the standards
     of conduct in this policy. Employees are expected to adhere to these and
     all other company policies as well.

II.  PROCEDURES

     A. CONFLICTS OF INTEREST AND MISAPPROPRIATION OF CORPORATE OPPORTUNITIES:

         1.   Employees must avoid circumstances giving rise to potential bias
              due to conflicting personal interests and investments not
              consistent with the employee's performance of company business. In
              addition, employees are prohibited from taking for themselves
              opportunities related to Fluor's business, using Fluor's property,
              information, or position for personal gain, or competing with
              Fluor for business opportunities.

         2.   The company recognizes that the complexities of personal and
              company interests may occasionally result in situations where
              employees feel compelled to excuse themselves from a particular
              transaction because of inability to preclude the appearance of
              bias or the occurrence of personal gain at the expense of the
              company. To facilitate the avoidance of such circumstances and to
              protect both employees and the company, all potential personal
              conflicts and all opportunities that relate to Fluor's business
              must be disclosed in writing upon initial employment with the
              company, at the time of the recertification of this policy, and at
              any other time in the course of employment when potential conflict
              situations or opportunities that relate to Fluor's business arise.

         3.   Employees must disclose to their supervisors, management, Human
              Resources, or the Ethics Hotline (see Section III of this policy)
              circumstances, investments, interests, or affiliations which could
              reasonably be expected to:

              a.      Create the appearance of personal gain at company expense
                      (including, but not limited to, opportunities that relate
                      to Fluor's business);

              b.      Create the appearance of preferential treatment or lack of
                      impartiality;

              c.      Impede company economy or efficiency;

              d.      Result in a loss of independence and objectivity;

              e.      Reflect poorly on the company or its clients; or

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                                          UNITED STATES HUMAN RESOURCES POLICIES

<PAGE>

                                                                   Exhibit 10.16

                                                                          HR-148
                                                        EFFECTIVE DATE: 02-04-04

FLUOR HUMAN RESOURCES POLICY  __________________________________________________
                                                                POLICY/PROCEDURE

THIS FLUOR ENTERPRISES, INC. POLICY IS SUBJECT TO MODIFICATION OR REVISION IN
PART OR IN ITS ENTIRETY TO REFLECT CHANGES IN CONDITIONS SUBSEQUENT TO THE
EFFECTIVE DATE OF THIS POLICY.

SUBJECT:  BUSINESS ETHICS AND CONDUCT

              f.      Have the effect of diminishing the trust and confidence of
                      the public, the government, our clients, or other
                      employees in the company.

         4.   Employees must notify a supervisor, member of management, or
              member of Human Resources before accepting membership on any
              for-profit board of directors.

         5.   Officers must disclose any circumstances, investments, interests,
              or affiliations described in Section II.A.3. (a) through (f) of
              this policy to the Senior Vice President Law. Officers must notify
              the Senior Vice President Law before accepting membership on any
              board of directors, whether of a charitable organization, or
              otherwise.

     B.  CONFIDENTIAL INFORMATION: Many aspects of Fluor's business, with the
         exception of those normally found in the public domain, are
         confidential and proprietary information and are only to be shared with
         co-workers on a need-to-know basis. This includes, but is not
         necessarily restricted to, technologies and concepts, financial
         position, construction or expansion plans, computer programs, process
         data, bid data, and employee histories / pay, or any business plans of
         Fluor's clients, partners, customers, suppliers, and contractors. All
         employees are required to sign an agreement in which they agree not to
         disclose confidential information belonging to Fluor, its clients, or
         others with whom it does business. Furthermore, Fluor recognizes the
         confidentiality of business data and no employee shall seek to obtain
         such data through collusion, bribery, or any illegal or unethical
         means.

     C.  ANTI-TRUST: Employees will not engage in any practice that restricts
         trade and, as such, violates anti-trust regulations, such as giving to,
         accepting from, or discussing with a competitor, unpublished
         competitive data (prices or terms and conditions of sales agreements).
         Employees may not enter into any agreement or plan that would restrict
         competition.

     D.  ACCURATE RECORD-KEEPING AND REPORTING: Fluor's books, records,
         accounts, and reports must accurately reflect its transactions, and
         must be subject to an adequate system of internal controls and
         disclosure controls to promote the highest degree of integrity. Reports
         and documents that Fluor files with or submits to the Securities and
         Exchange Commission, and other public communications, should contain
         full, fair, accurate, timely, and understandable disclosure.

     E.  POLITICAL CONTRIBUTIONS AND ACTIVITIES: Participation and involvement
         in public issues, including political activities, are on the
         individual's own behalf and not on behalf of the company. Employees may
         also, if they so choose, make voluntary contributions to political
         causes which are solicited without direction or coercion. Any such
         contribution or failure to contribute shall not advantage or
         disadvantage the employee.

     F.  GOVERNMENT CONTRACTING: The statutes and regulations governing business
         with or for governmental entities are complex and impose different and
         special requirements from those applicable to the private sector.
         Failure to comply with these requirements may be a criminal offense.
         The company has specific business conduct standards for this area. Any
         questions regarding compliance should be referred to Fluor's Legal
         Services Group.

     G.  BOYCOTT: Employees shall not engage in any organized effort on behalf
         of the company to punish an organization by refusing to buy, sell, or
         use its products or services. It is illegal for Fluor or employees
         acting on its behalf to participate in or cooperate with boycotts
         conducted by countries other than the

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                                          UNITED STATES HUMAN RESOURCES POLICIES

<PAGE>

                                                                   Exhibit 10.16

                                                                          HR-148
                                                        EFFECTIVE DATE: 02-04-04

FLUOR HUMAN RESOURCES POLICY  __________________________________________________
                                                                POLICY/PROCEDURE

THIS FLUOR ENTERPRISES, INC. POLICY IS SUBJECT TO MODIFICATION OR REVISION IN
PART OR IN ITS ENTIRETY TO REFLECT CHANGES IN CONDITIONS SUBSEQUENT TO THE
EFFECTIVE DATE OF THIS POLICY.

SUBJECT:  BUSINESS ETHICS AND CONDUCT

         United States. When an issue over a boycott arises, employees are
         expected to contact Fluor's Legal Services Group.

     H.  INSIDER TRADING: Trading on inside information about a corporation's
         securities or conveying such inside information to others ("tipping")
         or suggesting that anyone purchase or sell a corporation's securities
         while in possession of inside information is strictly prohibited by
         law. An employee who, during the course of his or her employment, has
         come into possession of material non-public information relating to
         Fluor or any other corporation, including any of its clients, may not
         buy or sell the securities of that corporation or direct anyone to
         purchase such securities on his or her behalf. In addition, an employee
         may not tip non-public information relating to Fluor or any other
         corporation to members of the employee's immediate family or others.

     I.  CORPORATE ASSETS: Employees are expected to respect the company's
         assets as they would their own. Corporate assets take many forms (land,
         buildings, equipment, etc.), and support daily work (desks, tools,
         computers, telephones, etc.).

     J.  FAIR DEALING: Employees should deal fairly with Fluor's customers,
         suppliers, competitors, and employees. No employee should take unfair
         advantage of anyone through manipulation, concealment, abuse of
         confidential, privileged or proprietary information, or
         misrepresentation of material facts.

     K.  BRIBES, PAYOFFS AND GRATUITIES: Employees must not bribe or make
         payoffs to anyone, nor may they accept anything of more than nominal
         value from anyone with whom Fluor does business (suppliers,
         contractors, clients, etc.).

     L.  COPYRIGHTS: In accordance with United States law, no employee shall
         make unauthorized copies of copyrighted materials such as books,
         magazines, newspapers, periodicals, computer programs, or user manuals.

     M.  COMPLIANCE WITH LAWS AND REGULATIONS: Employees shall comply with all
         applicable laws and regulations including those applicable to the
         conduct of business with governmental bodies, which include, but are
         not limited to, those regarding cost accounting, time charging,
         national security, procurement, and discrimination.

III. COMMUNICATIONS AND REPORTING

     A.  ENCOURAGING OPEN COMMUNICATION: No policy can anticipate every
         situation that may arise. Accordingly, this policy is not meant to be
         all-inclusive, but rather is intended to serve as a source of guiding
         principles and to encourage communication and dialogue between
         employees and supervisors concerning standards of conduct addressed in
         the policy. Employees are encouraged to discuss with any supervisor,
         manager, or member of Human Resources questions about particular
         circumstances that may implicate the provisions of this policy.

     B.  REPORTING OBLIGATIONS: Employees who believe that Fluor's standards are
         not being practiced are required to report the circumstances to their
         supervisors, managers, or a member of Human Resources. Retaliation for
         reports of misconduct by others made in good faith is prohibited by
         law, and Fluor will not permit retaliation of any kind against any
         employee who reports misconduct in good faith.

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                                          UNITED STATES HUMAN RESOURCES POLICIES

<PAGE>
                                                                   Exhibit 10.16

                                                                          HR-148
                                                        EFFECTIVE DATE: 02-04-04

FLUOR HUMAN RESOURCES POLICY  __________________________________________________
                                                                POLICY/PROCEDURE

THIS FLUOR ENTERPRISES, INC. POLICY IS SUBJECT TO MODIFICATION OR REVISION IN
PART OR IN ITS ENTIRETY TO REFLECT CHANGES IN CONDITIONS SUBSEQUENT TO THE
EFFECTIVE DATE OF THIS POLICY.

SUBJECT:  BUSINESS ETHICS AND CONDUCT

     C.  ETHICS HOTLINE: In the event that an employee does not want to report
         internally, the company has an Ethics Hotline which is managed by an
         external organization specializing in compliance and reporting issues.
         Employees may call the hotline at 1-800-223-1544 to report potential
         legal, ethical, accounting, or auditing violations or concerns. Any
         calls to the Ethics Hotline may be made anonymously, although employees
         are encouraged to identify themselves so that a full confidential
         investigation is possible.

IV.  COMPLIANCE

     A.  VIOLATIONS: Violation of this policy by any employee may result in
         disciplinary action, up to and including termination. Civil charges
         against the employee may also be filed.

     B.  SIGNATURES AND REAFFIRMATIONS

         1.   Newly hired employees will sign and receive copies of Fluor Human
              Resources Policy, HR-148, Business Ethics and Conduct.

         2.   Employees will recertify their adherence to Policy HR-148 as
              required.

V.   EXCEPTIONS

     None

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                                          UNITED STATES HUMAN RESOURCES POLICIES<PAGE>

                                                                   Exhibit 10.17

May 7, 2001

Mr. D. Michael Steuert
2956 Morvale Drive
Thousand Oaks, CA 91361

Dear Michael,

We are pleased to extend to you an offer of employment as Senior Vice President
and Chief Financial Officer of Fluor Corporation. All of us that have had the
opportunity to visit with you are confident that we will benefit from your years
of experience and are sure that you will find Fluor Corporation a challenging
and enjoyable environment in which to work. We will work with you to determine a
mutually agreeable start date.

SALARY

     Your starting salary will be $500,000 annually.

ANNUAL INCENTIVE

     As a member of the Executive Management Team you will be in a "must review"
     category for annual incentive consideration each year based upon your
     individual performance as well as the performance of the Corporation. Your
     target incentive amount is 65% of your base salary or $325,000, and you
     will have the potential to earn from zero to twice this amount based on
     your individual performance and the overall results of the corporation. Our
     fiscal year is January 1st through December 31st, with incentives paid the
     following March. Your first year bonus will be prorated based on actual
     months worked.

NEW HIRE AWARD

     We will recommend to the Organization and Compensation Committee of Fluor
     Corporation that we provide you the following awards:

     LTI CASH 2001 - 2003 PROGRAM
     You will be recommended for participation in the current LTI cash program
     covering FY 2001-2003 with a three-year targeted cash award of $300,000.
     Performance objectives for the cash portion of this three-year program will
     be established each fiscal year. At the end of each fiscal year, the
     Organization and Compensation Committee will evaluate the performance
     results of Fluor Corporation. If the objectives are achieved a payout with
     a performance rating of 0 to 2 times will be paid to you based on one-third
     of your target cash award ($100,000) each year.

                                                             Initialed__________

<PAGE>

Mr. D. Michael Steuert
May 7, 2001
Page 2

     RESTRICTED STOCK
     A restricted stock grant of 3,600 shares vesting 25% (900 shares) per year
     beginning one year from date of hire. You will receive dividends and voting
     rights on these shares.

     RESTRICTED UNITS
     A restricted unit grant of 2,400 units vesting 25% (600 shares) per year
     beginning one year from date of hire.

LONG-TERM INCENTIVES

     In December we will recommend to the Organization and Compensation
     Committee the grant of a Long-Term Incentive (LTI) award valued at
     $1,000,000. This award will be comprised of non-qualified stock options,
     restricted shares, restricted tandem units, and a cash award which you have
     the potential to earn from zero to twice this cash amount based on targeted
     Company performance (based on current design).

SEVERANCE / POST RETIREMENT SUPPLEMENTAL BENEFIT PAYMENT

     If you are involuntarily separated from the Company for any reason, except
     for cause, the Company will provide you with one year's pay at your then
     current base salary.

     If you continue your employment to early or normal retirement, the Company
     has agreed to pay you one year's pay, at your then current base salary, as
     a supplemental retirement benefit.

AUTOMOBILE ALLOWANCE

     You will be provided a monthly automobile allowance of $1,400. Automobile
     insurance will be provided for one automobile at no expense to you.

CLUB MEMBERSHIP

     As a senior level executive you will be eligible for a club membership at a
     club of your choice, within reason, and with the final approval of Alan
     Boeckmann. The Company will pay the annual dues and business related
     expenses.

PERSONAL FINANCIAL PLANNING

     You will be reimbursed for financial planning services during your first
     two years of employment and the year of retirement up to a maximum of
     $15,000 per year.

TAX SERVICES

     Annual tax planning services will be reimbursed up to a maximum of $4,000
     per year.

                                                             Initialed__________

<PAGE>

Mr. D. Michael Steuert
May 7, 2001
Page 3

ESTATE ENHANCEMENT PROGRAM

     You will be eligible to participate in a program which allows you to use
     deferred compensation to make payments on a life insurance policy which can
     be held in trust and provides a tax advantage vehicle for
     survivors/beneficiaries.

RELOCATION

     Should you sell your current residence and move to the Aliso Viejo area,
     you will be reimbursed for travel, moving, relocation and buy/sale expenses
     in accordance with the attached Personnel Policy (HR-121). Should you
     voluntarily terminate your employment with the company (except when caused
     by death or permanent total disability) within one year from your
     relocation date you will be required to reimburse to the company 100% of
     those costs previously transmitted. The company will provide you full tax
     gross up protection for Federal and State personal income tax liability for
     costs associated with your move to the Aliso Viejo, California area.

TEMPORARY HOUSING

     The company will provide you with a company provided apartment for up to
     six months. This can be extended with Alan Boeckmann's approval.

EXECUTIVE DEFERRED COMPENSATION PROGRAM (EDCP)

     You will be eligible to participate in this program from date of hire. Two
     deferral options are available to help you reduce your tax obligations and
     plan for financial security: the Deferred Salary account and the Deferred
     Incentive Award account. Participation is entirely voluntary. Amounts
     deferred under this program may be deferred until termination, retirement
     or for a specified period of time of one year or more and will accrue
     monthly interest based on the allocation of your Executive Deferred
     Compensation Program balance among the available crediting options.
     Participation in this program is subject to continued Executive status.

SALARIED EMPLOYEE'S SAVINGS INVESTMENT PLAN 401(K)

     You will be eligible immediately to participate in the 401(k) Plan. You may
     elect to defer up to 16% of your base monthly salary. After one year of
     service the company match is discretionary. In 2001 the company is matching
     100% (dollar for dollar) on the first 4% for eligible employees. If you
     elect, you may rollover the funds from a qualified plan and constitute a
     rollover contribution under applicable IRS Code.

FLUOR CORPORATION DEFINED RETIREMENT PLAN

     You will be eligible to participate in the Fluor Corporation Defined
     Retirement Plan after completing one year of service. Once eligible, the
     company credits your account with a percentage of pay based on you age and
     years of service as of January 1 of the plan year. The vesting schedule for
     participants is 100% after five years of service.

FLUOR CORPORATION PERFORMANCE PLAN

     You will be eligible to participate in the Fluor Corporation Performance
     Plan after one year of service. Based on financial performance, the Company
     will make an annual contribution to an account in your name. You will
     manage the investment of your contributions among several varied investment
     funds. The amount of the contribution will depend on the overall financial
     performance of the Company and employees will receive awards based on
     percentage of base salary. The vesting schedule for participants is 100%
     after five years of service.

                                                             Initialed__________

<PAGE>

Mr. D. Michael Steuert
May 7, 2001
Page 4

FLUOR CORPORATION PERFORMANCE PLAN

     You will be eligible to participate in the Fluor Corporation Performance
     Plan after one year of service. Based on financial performance, the Company
     will make an annual contribution to an account in your name.  You will
     manage the investment of your contributions among several varied investment
     funds.  The amount of the contribution will depend on the overall financial
     performance of the Company and employees will receive awards based on
     percentage of base salary.  The vesting schedule for participants is 100%
     after five years of service.

COMPANY-PAID PHYSICAL EXAMINATION PROGRAM

     As a member of the Management Team, you will be provided an annual physical
     examination at company expense. You will be notified by the company
     physician when it is time to schedule your physical. Participation in this
     program is subject to continued Executive status.

GROUP HEALTH, LIFE, AND LONG-TERM DISABILITY INSURANCE COVERAGE

     Your share of the cost for a standard group health insurance will be 0.5%
     of your base salary up to a maximum of $186.28 per month. Your share of the
     cost for group dental insurance is 0.1% of your base salary up to a maximum
     of $18.20 a month. Additionally, you may, at your option, cover your
     dependents on our group health care and life insurance plans for a monthly
     premium. You may also purchase additional life insurance.

EXECUTIVE HEALTH CARE

     Eligibility in this program is immediate and will provide reimbursement for
     health care expenses to you and your dependents which exceed covered charge
     payments under Option 1 of the Fluor Employee's Health Care Plan. Items
     generally covered by this Plan include:

     1. Deductibles and co-insurance

     2. Reasonable and customary charges not covered under Option 1, and

     3. Charges for private rooms

TIME OFF WITH PAY (TOWP)

     TOWP accrues on each day worked from the date of hire at the rate of 3.54
     hours per week, or 184 hours/23 days per year. In addition, we will credit
     your TOWP account with 160 hours.

                                                             Initialed__________

<PAGE>

Mr. D. Michael Steuert
May 7, 2001
Page 5

CHANGE OF CONTROL

     A Change of Control plan is ready for immediate implementation should the
     Chairman and the Board of Directors choose to implement it. Presently,
     there are no individual executive change-of-control agreements in place.
     However, there is change of control language included in the plan documents
     that govern our Executive Deferred Compensation Plan and Stock-Based Award
     Agreements.

OTHER

     The Immigration Reform and Control Act of 1986 requires Fluor to verify and
     record both your identity and right to work in the United States.
     Accordingly, this offer of employment is contingent on your being able to
     satisfy the above-mentioned law on or before your first day of work.
     Further, the EMT status of a position is discretionary and subject to
     change.

     In addition, this offer is conditional upon your successful completion of a
     pre-employment drug screen, conducted by the company. We recommend that you
     not resign your current position until a satisfactory drug test result is
     received. Please contact Dr. Sam Elias at (949) 831-1776 to schedule an
     appointment. The offer is also conditional on positive responses on
     completing the reference checks.

     Furthermore, as with most companies, the employment relationship with Fluor
     Corporation is based on the mutual consent of you and the Company.
     Accordingly, either you or Fluor Corporation can terminate the employment
     relationship at will, without cause or advance notice. While Fluor
     Corporation's benefits and policies may be changed from time to time, this
     letter reflects our entire agreement concerning our at-will relationship.

                                                             Initialed__________

<PAGE>

Mr. D. Michael Steuert
May 7, 2001
Page 6

We look forward to your joining the Company and are sure that your employment
with Fluor Corporation will be both successful and rewarding for you. If you
have any further questions, please call me at (949) 349-3047. We would
appreciate your returning a signed copy of this offer letter to me as soon as
possible. An additional copy is enclosed for your records.

Sincerely,

/s/ Lisa Glatch

Lisa Glatch
Senior Vice President
Human Resources and Administration
Fluor Corporation

ACCEPTED BY:                                                     REPORT DATE:

/S/ D. MICHAEL STEUERT                                           MAY 21, 2001
--------------------------------                                 ------------
D. MICHAEL STEUERT                                               DATE

LG:OLS:ch

cc: Alan Boeckmann
    Lew Smith

                                                             Initialed__________

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