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                                                                    EXHIBIT 10.9

                             STANDARD PACIFIC CORP.
                 2001 NON-EXECUTIVE OFFICER STOCK INCENTIVE PLAN

SECTION 1. PURPOSE OF PLAN

     The purpose of this Standard Pacific Corp. 2001 Non-Executive Officer Stock
Incentive Plan (this "Plan") is to advance the interests of Standard Pacific
Corp., a Delaware corporation (the "Company"), by stimulating the efforts of
employees of the Company and its subsidiaries, other than executive officers,
who are selected to be participants, by heightening the desire of such persons
to continue in working toward and contributing to the success of the Company.
Stock options granted pursuant to this Plan are not incentive stock options, as
defined in Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code").

SECTION 2. ADMINISTRATION OF PLAN

     2.1 Composition of Committee. Subject to the express provisions of this
         ------------------------
Plan, this Plan shall be administered by the Compensation Committee of the Board
of Directors (the "Committee"), as appointed from time to time by the Board of
Directors. The Board of Directors shall fill vacancies on, and from time to time
may remove or add members to, the Committee. The Committee shall act pursuant to
a majority vote or unanimous written consent. The Board of Directors, in its
sole discretion, may exercise any authority of the Committee under this Plan in
lieu of the Committee's exercise thereof. Notwithstanding the foregoing, the
Committee may appoint one or more separate committees (any such committee, a
"Subcommittee") composed of one or more directors of the Company (who may but
need not be members of the Committee) and may delegate to any such
Subcommittee(s) the authority to grant Awards (as defined in Section 5.1), under
the Plan to Eligible Persons (as defined in Section 4), to determine all terms
of such Awards, and/or to administer the Plan or any aspect of it. Any action by
any such Subcommittee within the scope of such delegation shall be deemed for
all purposes to have been taken by the Committee. The Committee may designate
the Secretary of the Company or other Company employees to assist the Committee
in the administration of the Plan, and may grant authority to such persons to
execute agreements or other documents evidencing Awards made under this Plan or
other documents entered into under this Plan on behalf of the Committee or the
Company.

     2.2 Powers of the Committee. Subject to the express provisions of this
         -----------------------
Plan, the Committee shall be authorized and empowered to do all things necessary
or desirable, in its sole discretion, in connection with the administration of
this Plan, including, without limitation, the following:

          (a) to prescribe, amend and rescind rules and regulations relating to
     this Plan and to define terms not otherwise defined herein; provided that,
     unless the Committee shall specify otherwise, for purposes of this Plan (i)
     the term "fair market value" shall mean, as of any date, the closing price
     for a Share (as defined in Section 3.1) reported for that date by the New
     York Stock Exchange (or such other stock exchange or quotation system on
     which Shares are then listed or quoted) or, if no Shares are traded on the
     New York Stock Exchange (or such other stock exchange or quotation system)
     on the date in

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     question, then the closing price for the next preceding date for which
     Shares traded on the New York Stock Exchange (or such other stock exchange
     or quotation system); and (ii) the term "Company" shall mean the Company
     and its subsidiaries and affiliates, unless the context otherwise requires;

          (b) to determine which persons are Eligible Persons, to which of such
     Eligible Persons, if any, Awards shall be granted hereunder and the timing
     of any such Awards, and to grant Awards;

          (c) to grant Awards to Eligible Persons and determine the terms and
     conditions thereof, including the number of Shares subject to Awards and
     the exercise or purchase price of such Shares and the circumstances under
     which Awards become exercisable or vested or are forfeited or expire, which
     terms may but need not be conditioned upon the passage of time, continued
     employment, the satisfaction of performance criteria, the occurrence of
     certain events (including events which the Board or the Committee determine
     constitute a change of control), or other factors;

          (d) to establish, verify the extent of satisfaction of, adjust, reduce
     or waive any performance goals or other conditions applicable to the grant,
     issuance, exercisability, vesting and/or ability to retain any Award;

          (e) to prescribe and amend the terms of the agreements or other
     documents evidencing Awards made under this Plan (which need not be
     identical);

          (f) to determine whether, and the extent to which, adjustments are
     required pursuant to Section 10;

          (g) to interpret and construe this Plan, any rules and regulations
     under this Plan and the terms and conditions of any Award granted
     hereunder, and to make exceptions to any such provisions in good faith and
     for the benefit of the Company; and

          (h) to make all other determinations deemed necessary or advisable for
     the administration of this Plan.

     2.3 Determinations of the Committee. All decisions, determinations and
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interpretations by the Committee regarding this Plan shall be final and binding
on all Eligible Persons and Participants (as defined in Section 4). The
Committee shall consider such factors as it deems relevant to making such
decisions, determinations and interpretations including, without limitation, the
recommendations or advice of any director, officer or employee of the Company
and such attorneys, consultants and accountants as it may select.

SECTION 3. STOCK SUBJECT TO PLAN

     3.1 Aggregate Limits. The aggregate number of shares of the Company's
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common stock, $.01 par value per share ("Shares"), issued pursuant to all Awards
granted under this Plan shall not exceed 525,000. The aggregate number of Shares
available for issuance under this Plan and the number of Shares subject to
outstanding Options or other Awards shall be subject to adjustment as provided
in Section 10. The Shares issued pursuant to this Plan may be Shares

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that either were reacquired by the Company, including Shares purchased in the
open market, or authorized but unissued Shares.

     3.2 Issuance of Shares. For purposes of Section 3.1, the aggregate number
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of Shares issued under this Plan at any time shall equal only the number of
Shares actually issued upon exercise or settlement of an Award and shall not
include Shares subject to Awards that have been canceled, expired or forfeited
or Shares subject to Awards that have been delivered (either actually or
constructively by attestation) to or retained by the Company in payment or
satisfaction of the purchase price, exercise price or tax withholding obligation
of an Award.

SECTION 4. PERSONS ELIGIBLE UNDER PLAN

     Any person who is an employee or prospective employee of the Company or any
of its affiliates shall be eligible to be considered for the grant of Awards
hereunder unless such person is a director of the Company or an "officer" as
defined under paragraph 312.04 of the New York Stock Exchange Listed Company
Manual (or any successor rule) (an "Eligible Person"). Unless provided otherwise
by the Committee, the term "employee" shall mean an "employee," as such term is
defined in General Instruction A to Form S-8 under the Securities Act of 1933,
as amended. A "Participant" is any current or former Eligible Person to whom an
Award has been made and any person (including any estate) to whom an Award has
been assigned or transferred pursuant to Section 9.1.

SECTION 5. PLAN AWARDS

     5.1 Award Types. The Committee, on behalf of the Company, is authorized
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under this Plan to enter into certain types of written arrangements with
Eligible Persons and to confer certain benefits on them. The following
arrangements or benefits are authorized under this Plan if their terms and
conditions are not inconsistent with the provisions of this Plan: Options,
Incentive Bonuses and Incentive Stock. Such arrangements and benefits are
sometimes referred to herein as "Awards." The authorized types of arrangements
and benefits for which Awards may be granted are defined as follows:

          (a) Options: An option is a right granted under Section 6 (an
     "Option") to purchase a number of Shares at such exercise price, at such
     times, and on such other terms and conditions as are specified in the
     agreement or terms and conditions or other document evidencing the Award
     (the "Option Document"). Stock options granted pursuant to this Plan are
     not incentive stock options, as defined in Section 422 of the Code.

          (b) Incentive Bonus: An Incentive bonus is a bonus opportunity awarded
     under Section 7 (an "Incentive Bonus") pursuant to which a Participant may
     become entitled to receive an amount based on satisfaction of such
     performance criteria as are specified in the agreement or other document
     evidencing the Award (the "Incentive Bonus Document").

          (c) Incentive Stock: Incentive stock is an award or issuance of Shares
     made under Section 8 ("Incentive Stock"), the grant, issuance, retention,
     vesting and/or transferability of which is subject during specified periods
     of time to such conditions (including continued employment or performance
     conditions) and terms as are expressed

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     in the agreement or other document evidencing the Award (the "Incentive
     Stock Document").

     5.2 Grants of Awards. An Award may consist of one such arrangement or
         ----------------
benefit or two or more of them in tandem or in the alternative.

SECTION 6. OPTIONS

     The Committee may grant an Option or provide for the grant of an Option,
either from time to time in the discretion of the Committee or automatically
upon the occurrence of specified events, including, without limitation, the
achievement of performance goals, the satisfaction of an event or condition
within the control of the recipient of the Award or within the control of
others.

     6.1 Option Document. Each Option Document shall contain provisions
         ---------------
regarding (a) the number of Shares that may be issued upon exercise of the
Option, (b) the purchase price of the Shares and the means of payment for the
Shares, (c) the term of the Option, (d) such terms and conditions on the vesting
and/or exercisability of an Option as may be determined from time to time by the
Committee, (e) restrictions on the transfer of the Option and forfeiture
provisions and (f) such further terms and conditions, in each case not
inconsistent with this Plan as may be determined from time to time by the
Committee.

     6.2 Option Price. The purchase price per share of the Shares subject to
         ------------
each Option granted under this Plan shall equal or exceed 100% of the fair
market value of a Share on the date the Option is granted, except that (a) the
exercise price of an Option may be higher or lower in the case of Options
granted to an employee of a company acquired by the Company in assumption and
substitution of options held by such employee at the time such company is
acquired ("Substitution Options"), and (b) if an Eligible Person is required to
pay or forego the receipt of any cash amount in consideration of receipt of an
Option, the exercise price plus such cash amount shall equal or exceed 100% of
the fair market value of such Shares on the date the Option is granted.

     6.3 Option Term. The "term" of each Option granted under this Plan shall be
         -----------
10 years from the date of its grant, unless the Committee provides for a shorter
period.

     6.4 Option Vesting. Options granted under this Plan shall be exercisable at
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such time and in such installments during the period prior to the expiration of
the Option's term as determined by the Committee, except that no Option other
than Substitution Options shall first become exercisable within one (1) year
from its date of grant, other than upon death or disability of the Participant
or upon a Change of Control (as defined in Section 11). The Committee shall have
the right to make the timing of the ability to exercise any Option granted under
this Plan subject to continued employment, the passage of time and/or such
performance requirements as deemed appropriate by the Committee. Subject to the
limitation set forth in the first sentence of this Section 6.4, at any time
after the grant of an Option the Committee may reduce or eliminate any
restrictions surrounding any Participant's right to exercise all or part of the
Option.

     6.5 Termination of Employment or Service. Subject to Section 11, upon a
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termination of a Participant's employment prior to the full vesting or exercise
of an Option, (a)

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the unvested portion of the Option shall be forfeited unless the Committee in
its discretion determines otherwise, and (b) any unexercised Options shall be
subject to such procedures as the Committee may establish.

     6.6 Payment of Exercise Price. The exercise price of an Option shall be
         -------------------------
paid in the form of one of more of the following, as the Committee shall
specify, either through the terms of the Option Document or at the time of
exercise of an Option: (a) cash or certified or cashiers' check, (b) shares of
capital stock of the Company that have been held by the Participant for such
period of time as the Committee may specify, (c) other property deemed
acceptable by the Committee, (d) a reduction in the number of Shares or other
property otherwise issuable pursuant to such Option, (e) payment under an
arrangement with a broker selected or approved by the Company where payment is
made pursuant to an irrevocable commitment by the broker to deliver to the
Company proceeds from the sale of the Shares issuable upon exercise of the
Option, or (f) any combination of (a) through (e).

     6.7 No Option Repricing. Without the approval of stockholders, the Company
         -------------------
shall not reprice any Options. For purposes of this Plan, the term "reprice"
shall mean lowering the exercise price of previously awarded Options within the
meaning of Item 402(i) under Securities and Exchange Commission Regulation S-K
(including canceling previously awarded Options and regranting them with a lower
exercise price).

SECTION 7. INCENTIVE BONUSES

     Each Incentive Bonus Award will confer upon the Participant the opportunity
to earn a future payment tied to the level of achievement with respect to one or
more performance criteria established for a specified performance period.

     7.1 Incentive Bonus Document. Each Incentive Bonus Document shall contain
         ------------------------
provisions regarding (a) the target and maximum amount payable to the
Participant as an Incentive Bonus, (b) the performance criteria and level of
achievement versus these criteria that shall determine the amount of such
payment, (c) the term of the performance period as to which performance shall be
measured for determining the amount of any payment, (d) the timing of any
payment earned by virtue of performance, (e) restrictions on the alienation or
transfer of the Incentive Bonus prior to actual payment, (f) forfeiture
provisions and (g) such further terms and conditions, in each case not
inconsistent with this Plan as may be determined from time to time by the
Committee. The maximum amount payable as an Incentive Bonus may be a multiple of
the target amount payable.

     7.2 Performance Criteria. The Committee shall establish the performance
         --------------------
criteria and level of achievement versus these criteria that shall determine the
target and maximum amount payable under an Incentive Bonus Award, which criteria
may be based on financial performance and/or personal performance evaluations.
The Committee shall certify the extent to which any performance criteria has
been satisfied, and the amount payable as a result thereof, prior to payment of
any Incentive Bonus.

     7.3 Timing and Form of Payment. The Committee shall determine the timing of
         --------------------------
payment of any Incentive Bonus. The Committee may provide for or, subject to
such terms and

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conditions as the Committee may specify, may permit a Participant to elect for
the payment of any Incentive Bonus to be deferred to a specified date or event.
An Incentive Bonus may be payable in Shares or in cash or other property. Any
Incentive Bonus that is paid in cash or other property shall not affect the
number of Shares otherwise available for issuance under this Plan.

     7.4 Discretionary Adjustments. Notwithstanding satisfaction of any
         -------------------------
performance goals, the amount paid under an Incentive Bonus Award on account of
either financial performance or personal performance evaluations may be reduced
by the Committee on the basis of such further considerations as the Committee
shall determine.

     7.5 Termination of Employment. Subject to Section 11, upon a termination of
         -------------------------
employment by a Participant prior to the vesting of or the lapsing of
restrictions on Incentive Bonuses the Incentive Bonus Awards granted to such
Participant shall be forfeited, unless the Committee in its discretion
determines otherwise.

SECTION 8. INCENTIVE STOCK

     Incentive Stock is an award or issuance of Shares the grant, issuance,
retention, vesting and/or transferability of which is subject during specified
periods of time to such conditions (including continued employment and/or
performance conditions) and terms as the Committee deems appropriate.

     8.1 Incentive Stock Document. Each Incentive Stock Document shall contain
         ------------------------
provisions regarding (a) the number of Shares subject to such Award or a formula
for determining such, (b) the purchase price of the Shares, if any, and the
means of payment for the Shares, (c) the performance criteria, if any, and level
of achievement versus these criteria that shall determine the number of Shares
granted, issued, retainable and/or vested, (d) such terms and conditions on the
grant, issuance, vesting and/or forfeiture of the Shares as may be determined
from time to time by the Committee, (e) restrictions on the transferability of
the Shares and (f) such further terms and conditions in each case not
inconsistent with this Plan as may be determined from time to time by the
Committee.

     8.2 Sale Price. Subject to the requirements of applicable law, the
         ----------
Committee shall determine the price, if any, at which Shares of Incentive Stock
shall be sold or awarded to an Eligible Person, which may vary from time to time
and among Eligible Persons and which may be below the fair market value of such
Shares at the date of grant or issuance.

     8.3 Share Vesting. The grant, issuance, retention and/or vesting of Shares
         -------------
of Incentive Stock shall be at such time and in such installments as determined
by the Committee or under criteria established by the Committee. The Committee
shall have the right to make the timing of the grant and/or the issuance,
ability to retain and/or vesting of Shares of Incentive Stock subject to
continued employment, passage of time and/or such performance criteria and level
of achievement versus these criteria as deemed appropriate by the Committee,
which criteria may be based on financial performance and/or personal performance
evaluations.

     8.4 Discretionary Adjustments. Notwithstanding satisfaction of any
         -------------------------
performance goals, the number of Shares granted, issued, retainable and/or
vested under an Incentive Stock Award on account of either financial performance
or personal performance evaluations may be

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reduced by the Committee on the basis of such further considerations as the
Committee shall determine.

     8.5 Termination of Employment. Subject to Section 11, upon a termination of
         -------------------------
employment by a Participant prior to the vesting of or the lapsing of
restrictions on Incentive Stock, the Incentive Stock Awards granted to such
Participant shall be forfeited unless the Committee in its discretion determines
otherwise.

SECTION 9. OTHER PROVISIONS APPLICABLE TO AWARDS

     9.1 Transferability. Unless the agreement or other document evidencing an
         ---------------
Award (or an amendment thereto authorized by the Committee) expressly states
that the Award is transferable as provided hereunder, no Award granted under
this Plan, nor any interest in such Award, may be sold, assigned, conveyed,
gifted, pledged, hypothecated or otherwise transferred in any manner, other than
by will or the laws of descent and distribution.

     9.2 Dividends. Unless otherwise provided by the Committee, no adjustment
         ---------
shall be made in Shares issuable under Awards on account of cash dividends that
may be paid or other rights that may be issued to the holders of Shares prior to
their issuance under any Award. The Committee shall specify whether dividends or
dividend equivalent amounts shall be paid to any Participant with respect to the
Shares subject to any Award that on the record date for such dividends have not
vested or been issued or that are subject to any restrictions or conditions.

     9.3 Documents Evidencing Awards. The Committee shall, subject to applicable
         ---------------------------
law, determine the date an Award is deemed to be granted. The Committee or,
except to the extent prohibited under applicable law, its delegate(s) may
establish the terms of agreements or other documents evidencing Awards under
this Plan and may, but need not, require as a condition to any such agreement's
or document's effectiveness that such agreement or document be executed by the
Participant and that such Participant agree to such further terms and conditions
as specified in such agreement or document. The grant of an Award under this
Plan shall not confer any rights upon the Participant holding such Award other
than such terms, and subject to such conditions, as are specified in this Plan
as being applicable to such type of Award (or to all Awards) or as are expressly
set forth in the agreement or other document evidencing such Award.

     9.4 Tandem Stock or Cash Rights. Either at the time an Award is granted or
         ---------------------------
by subsequent action, the Committee may, but need not, provide that an Award
shall contain as a term thereof, a right, either in tandem with the other rights
under the Award or as an alternative thereto, of the Participant to receive,
without payment to the Company, a number of Shares, cash or a combination
thereof, the amount of which is determined by reference to the value of the
Award.

     9.5 Financing. The Committee may in its discretion provide financing to a
         ---------
Participant in a principal amount sufficient to pay the purchase price of any
Award and/or to pay the amount of taxes required by law to be withheld with
respect to any Award. Any such loan shall be subject to all applicable legal
requirements and restrictions pertinent thereto, including without limitation
Regulation G promulgated by the Federal Reserve Board. Neither the prior

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financing of another Participant, nor the grant of an Award to a Participant,
shall obligate the Company or the Committee to provide any financing whatsoever
in connection with such grant.

     9.6 Additional Restrictions on Awards. Either at the time an Award is
         ---------------------------------
granted or by subsequent action, the Committee may, but need not, impose such
restrictions, conditions or limitations as it determines appropriate as to the
timing and manner of any resales by a Participant or other subsequent transfers
by a Participant of any Shares issued under an Award, including without
limitation (a) restrictions under an insider trading policy, (b) restrictions
designed to delay and/or coordinate the timing and manner of sales by
Participants, and (c) restrictions as to the use of a specified brokerage firm
for such resales or other transfers.

SECTION 10. CHANGES IN CAPITAL STRUCTURE

     10.1 Corporate Actions Unimpaired. The existence of outstanding Awards
          ----------------------------
shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations, exchanges, or other changes in the Company's capital structure
or its business, or any merger or consolidation of the Company, or any issuance
of common stock or other securities or subscription rights thereto, or any
issuance of bonds, debentures, preferred or prior preference stock ahead of or
affecting the common stock or other securities of the Company or the rights
thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise. Further, except
as expressly provided herein or by the Committee, (a) the issuance by the
Company of shares of stock of any class (including any class of securities
convertible into shares of stock of any class, for cash), property, labor or
services, upon direct sale, upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible
into such shares or other securities, (b) the payment of a dividend in property
other than common stock, or (c) the occurrence of any similar transaction, and
in any case whether or not for fair value, shall not affect, and no adjustment
by reason thereof shall be made with respect to, the number of shares of common
stock subject to Awards theretofore granted or the purchase price per Share,
unless the Committee shall determine in its discretion that an adjustment is
necessary.

     10.2 Adjustments Upon Certain Events. If the outstanding shares of common
          -------------------------------
stock or other securities of the Company, or both, for which the Award is then
exercisable or as to which the Award is to be settled shall at any time be
changed or exchanged by declaration of a stock dividend, stock split,
combination of shares, recapitalization, or reorganization, the Committee may,
and if such event occurs after a Change of Control, the Committee shall,
appropriately and equitably adjust the number and kind of shares of common stock
or other securities which are subject to the Plan or subject to any Awards
theretofore granted, and the exercise or settlement prices of such Awards. If
the Company recapitalizes or otherwise changes its capital structure, or merges,
consolidates, sells all of its assets or dissolves (each of the foregoing a
"Fundamental Change"), then thereafter upon any exercise of an Option or
settlement of an Award theretofore granted, the Participant shall be entitled to
purchase under such Option or receive under such Award, in lieu of the number of
shares of common stock as to which such Option shall then be exercisable or such
Award shall then be subject, the number and class of shares of stock and
securities to which the Participant would have been entitled pursuant to the
terms of the Fundamental Change if, immediately prior to such Fundamental
Change, the

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Participant had been the holder of record of the number of shares of common
stock as to which such Option or Award is then subject. No fractional interests
shall be issued under this Plan resulting from any adjustments.

SECTION 11. CHANGE OF CONTROL

     11.1 Definitions. Unless the Committee provides otherwise,
          -----------

     For purposes of the Plan and Awards granted under the Plan, the term
"Change of Control" shall mean:

          (a) any "person" (as such term is used in Sections 13(d) and 14(d) of
     the Exchange Act) or group of persons acting in concert (other than the
     Company or any subsidiary thereof or any employee benefit plan of the
     Company or any subsidiary thereof, or any underwriter in connection with a
     firm commitment public offering of the Company's capital stock) becomes the
     "beneficial owner" (as such term is defined in Rule 13d-3 of the Exchange
     Act except that a person shall also be deemed the beneficial owner of all
     securities which such person may have a right to acquire, whether or not
     such right is presently exercisable), directly or indirectly, of securities
     of the Company representing thirty percent (30%) or more of the combined
     voting power of the Company's then outstanding securities ordinarily having
     the right to vote in the election of directors ("voting stock");

          (b) during any period subsequent to the effective date of this Plan, a
     majority of the members of the Board shall not for any reason be the
     individuals who at the beginning of such period constitute the Board or
     those persons who are nominated as new directors by a majority of the
     current directors or their successors who have been so nominated;

          (c) there shall be consummated any merger, consolidation (including a
     series of mergers or consolidations), or any sale, lease, exchange or other
     transfer (in one transaction or a series of related transactions) of all,
     or substantially all, of the assets of the Company (meaning assets
     representing fifty percent (50%) or more of the net tangible assets of the
     Company or generating fifty percent (50%) or more of the Company's
     operating cash flow, in each case measured over the Company's last four
     full fiscal quarters), or any other similar business combination or
     transaction, but excluding any business combination or transaction which
     would result in the voting stock of the Company immediately prior thereto
     continuing to represent (either by remaining outstanding or by being
     converted into voting stock of the surviving entity) more than seventy
     percent (70%) of the combined voting power of the voting stock of the
     Company (or such surviving entity) outstanding immediately after giving
     effect to such business combination or transaction;

          (d) the adoption of any plan or proposal for the liquidation or
     dissolution of the Company;

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          (e) the occurrence of any other event that would be required to be
     reported in response to Item 6(e) of Schedule 14A of Regulation 14A of the
     Exchange Act as in effect on the date hereof; or

          (f) any other event specified by the Committee, regardless of whether
     at the time an Award is granted or thereafter.

     11.2 Effect of Change of Control. The Committee may provide, either at the
          ---------------------------
time an Award is granted or thereafter, that a Change of Control shall have such
effect as specified by the Committee, or no effect, as the Committee in its
discretion may provide. Without limiting the foregoing, the Committee may but
need not provide, either at the time an Award is granted or thereafter, that if
a Change of Control occurs, then effective as of a date selected by the
Committee, the Committee (which for purposes of the Changes of Control described
in (a), (b) and (c) above shall be the Committee as constituted prior to the
occurrence of such Change of Control) acting in its discretion without the
consent or approval of any Participant, may effect one or more of the following
alternatives or combination of alternatives with respect to all outstanding
Awards (which alternatives may be conditional on the occurrence of such of the
Changes of Control specified above and which may vary among individual
Participants):

          (a) in the case of a Change of Control specified in clause (c) of
     Section 11.1, accelerate the time at which Options then outstanding may
     vest or be exercised in full for a limited period of time on or before a
     specified date (which will permit the Participant to participate with the
     common stock received upon exercise of such Option in the event of a Change
     of Control specified in clause (c) of Section 11.1) fixed by the Committee,
     after which specified date all unexercised Options and all rights of
     Participants thereunder shall terminate,

          (b) accelerate the time at which Options then outstanding may be
     exercised so that such Options may be exercised in full for their then
     remaining term,

          (c) accelerate the vesting of Incentive Stock Awards, or

          (d) require the mandatory surrender to the Company of outstanding
     Options or unvested Incentive Stock held by such Participant (irrespective
     of whether such Options are then exercisable under the provisions of the
     Plan) as of a date, before or not later than 60 days after such Change of
     Control, specified by the Committee, and in such event the Committee shall
     thereupon cancel such Options and unvested Incentive Stock and the Company
     shall pay to each Participant an amount of cash equal to the excess of the
     fair market value of the aggregate shares subject to such Option over the
     aggregate Option exercise price of such shares or the fair market value of
     the aggregate unvested shares of Incentive Stock, as applicable.

Notwithstanding the foregoing, with the consent of the Participant, the
Committee may in lieu of the foregoing make such provisions with respect of any
Change of Control as it deems appropriate.

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SECTION 12. TAXES

     12.1 Withholding Requirements. The Committee may make such provisions or
          ------------------------
impose such conditions as it may deem appropriate for the withholding or payment
by a Participant of any taxes that the Committee determines are required in
connection with any Award granted under this Plan, and a Participant's rights in
any Award are subject to satisfaction of such conditions.

     12.2 Payment of Withholding Taxes. Notwithstanding the terms of Section
          ----------------------------
12.1, the Committee may provide in the agreement or other document evidencing an
Award or otherwise that all or any portion of the taxes required to be withheld
by the Company or, if permitted by the Committee, desired to be paid by the
Participant, in connection with the exercise, vesting, settlement or transfer of
any other Award shall be paid or, at the election of the Participant, may be
paid by the Company by withholding shares of the Company's common stock
otherwise issuable or subject to such Award, or by the Participant delivering
previously owned shares of the Company's common stock, in each case having a
fair market value equal to the amount required or elected to be withheld or
paid, or by a broker selected or approved by the Company paying such amount
pursuant to an irrevocable commitment by the broker to deliver to the Company
proceeds from the sale of the Shares issuable under the Award. Any such election
is subject to such conditions or procedures as may be established by the
Committee and may be subject to approval by the Committee.

SECTION 13. AMENDMENTS OR TERMINATION

     The Board may amend, alter or discontinue this Plan or any agreement or
other document evidencing an Award made under this Plan, but, except as provided
pursuant to the anti-dilution adjustment provision of Section 10, no such
amendment or alteration shall be made which would impair the rights of any
Participant, without such Participant's consent, under any Award theretofore
granted, provided that no such consent shall be required if the Committee
determines in its sole discretion and prior to the date of any Change of Control
that such amendment or alteration either is required or advisable in order for
the Company, the Plan or the Award to satisfy any law or regulation or to meet
the requirements of any accounting standard or is not reasonably likely to
diminish the Participant's benefits thereunder or that any diminution has been
adequately compensated for.

SECTION 14. COMPLIANCE WITH OTHER LAWS AND REGULATIONS

     This Plan, the grant and exercise of Awards thereunder, and the obligation
of the Company to sell, issue or deliver Shares under any Awards, shall be
subject to all applicable federal, state and foreign laws, rules and regulations
and to such approvals by any governmental or regulatory agency as may be
required. The Company shall not be required to register in a Participant's name
or deliver any Shares prior to the completion of any registration or
qualification of such Shares under any federal, state or foreign law or any
ruling or regulation of any government body which the Committee shall determine
to be necessary or advisable. This Plan is intended to constitute an unfunded
arrangement for a select group of employees.

                                       A-11

<PAGE>

     No Option shall be exercisable unless a registration statement with respect
to the Option is effective or the Company has determined that such registration
is unnecessary. Unless the Awards and Shares covered by this Plan have been
registered under the Securities Act of 1933, as amended, or the Company has
determined that such registration is unnecessary, each person receiving an Award
and/or Shares pursuant to any Award may be required by the Company to give a
representation in writing that such person is acquiring such Shares for his or
her own account for investment and not with a view to, or for sale in connection
with, the distribution of any part thereof.

SECTION 15. OPTION GRANTS BY SUBSIDIARIES

     In the case of a grant of an Option to any Eligible Person employed by a
subsidiary of the Company, such grant may, if the Committee so directs, be
implemented by the Company issuing any subject shares to the subsidiary, for
such lawful consideration as the Committee may determine, upon the condition or
understanding that the subsidiary will transfer the shares to the optionholder
in accordance with the terms of the Option specified by the Committee pursuant
to the provisions of the Plan. Notwithstanding any other provision hereof, such
Option may be issued by and in the name of the subsidiary and shall be deemed
granted on such date as the Committee shall determine.

SECTION 16. NO RIGHT TO COMPANY EMPLOYMENT

     Nothing in this Plan or as a result of any Award granted pursuant to this
Plan shall confer on any individual any right to continue in the employ of the
Company or its affiliates or interfere in any way with the right of the Company
or its affiliates to terminate an individual's employment at any time. The
agreements or other documents evidencing Awards may contain such provisions as
the Committee may approve with reference to the effect of approved leaves of
absence.

SECTION 17. LIABILITY OF COMPANY

     The Company and any affiliate of the Company which is in existence or
hereafter comes into existence shall not be liable to a Participant, an Eligible
Person or other persons as to:

          (a) the non-issuance or sale of Shares as to which the Company has
     been unable to obtain from any governmental or regulatory body having
     jurisdiction the authority deemed by the Company's counsel to be necessary
     to the lawful issuance and sale of any Shares hereunder; and

          (b) any tax consequence expected, but not realized, by any
     Participant, Eligible Person or other person due to the receipt, exercise
     or settlement of any Option or other Award granted hereunder.

SECTION 18. EFFECTIVENESS AND EXPIRATION OF PLAN

     This Plan shall be effective on the date of its adoption by the Company's
Board of Directors. No Awards shall be granted pursuant to this Plan more than
10 years after the effective date of this Plan.

                                       A-12

<PAGE>

SECTION 19. NON-EXCLUSIVITY OF PLAN

     Neither the adoption of this Plan by the Board nor the submission of this
Plan to the stockholders of the Company for approval shall be construed as
creating any limitations on the power of the Board or the Committee to adopt
such other incentive arrangements as either may deem desirable, including
without limitation, the granting of restricted stock or stock options otherwise
than under this Plan, and such arrangements may be either generally applicable
or applicable only in specific cases.

SECTION 20. GOVERNING LAW

     This Plan and any agreements or other documents hereunder shall be
interpreted and construed in accordance with the laws of the State of Delaware
and applicable federal law. The Committee may provide that any dispute as to any
Award shall be presented and determined in such forum as the Committee may
specify, including through binding arbitration. Any reference in this Plan or in
the agreement or other document evidencing any Award to a provision of law or to
a rule or regulation shall be deemed to include any successor law, rule or
regulation of similar effect or applicability.

                                       A-13<PAGE>

                                                                   EXHIBIT 10.10

                                 FLUOR EXECUTIVE

                          DEFERRED COMPENSATION PROGRAM

                  (Amended and Restated as of January 1, 2002)

                                       1

<PAGE>

                                FLUOR EXECUTIVE

                          DEFERRED COMPENSATION PROGRAM

                  (Amended and Restated as of January 1, 2002)

         THIS INSTRUMENT, executed and made effective as of January 1, 2002 by
         FLUOR CORPORATION, a Delaware corporation, evidences an amendment and
         restatement of the terms of the Fluor Executive Deferred Compensation
         Program (formerly known as the Fluor Corporation and Subsidiaries
         Executive Deferred Compensation Program) adopted for the benefit of
         certain key employees of Fluor Corporation and its subsidiaries.

                                   WITNESSETH:

         WHEREAS, the Company has previously amended and restated the terms and
         conditions of the Fluor Executive Deferred Compensation Program
         (formerly known as the Fluor Corporation and Subsidiaries Executive
         Deferred Compensation Program), referred to herein as the "Plan", on
         May 1, 1997; and

         WHEREAS, the Company is in the process of updating the administrative
         process respecting the Plan, and is changing the crediting options
         available to participants in the Plan, and for these and other reasons
         now desires to amend and restate the terms and conditions of the Plan;

         NOW, THEREFORE, the Company hereby declares the current terms and
         conditions of the Fluor Executive Deferred Compensation Program
         (formerly known as the Fluor Corporation and Subsidiaries Executive
         Deferred Compensation Program) to be, as of January 1, 2002, as
         follows:

                                    ARTICLE I

                                    THE PLAN

1.1.     NAME.  This Plan shall be known as the "Fluor Executive Deferred
         Compensation Program".

1.2      PURPOSE. This Plan is adopted for the purpose of providing eligible
         executive employees with a means to satisfy future financial needs and
         also for the purpose of providing such employees with retirement and
         other benefits which, because of various contribution and benefit
         accrual limitations, cannot be provided for them under the tax
         qualified retirement, profit sharing and savings plans in which such
         employee is a participant. The Company intends that the Plan constitute
         an unfunded "top hat" plan maintained for the purpose of providing
         deferred compensation to a select group of management or highly
         compensated employees under applicable provisions of ERISA.

                                       2

<PAGE>

1.3      PLAN ADMINISTRATION.  The Plan shall be administered by the Committee
         in accordance with the following:

         (a).     The Committee, on behalf of the Participants and their
                  Beneficiaries, shall enforce the Plan in accordance with its
                  terms, shall be charged with the general administration of the
                  Plan, and shall have all powers necessary to accomplish its
                  purposes, including, but not by way of limitation, the
                  following:

                  (i)      To determine all questions relating to the
                           eligibility of employees to participate;

                  (ii)     To construe and interpret the terms and provisions of
                           this Plan;

                  (iii)    To compute and certify to the amount and kind of
                           benefits payable to Participants or their
                           Beneficiaries;

                  (iv)     To maintain all records that may be necessary for the
                           administration of the Plan;

                  (v)      To provide for the disclosure of all information and
                           the filing or provision of all reports and statements
                           to Participants, Beneficiaries or governmental
                           agencies as the Committee may determine or as shall
                           be required by law;

                  (vi)     To make and publish such rules for the regulation of
                           the Plan and procedures for the administration of the
                           Plan as are not inconsistent with the terms hereof;
                           and

                  (vii)    To appoint a plan administrator or any other agent,
                           and to delegate to such person such powers and duties
                           in connection with the administration of the Plan as
                           the Committee may from time to time prescribe.

         (b).     The Committee shall have full discretion to make factual
                  determinations as may be necessary and to construe and
                  interpret the terms and provisions of this Plan, which
                  interpretation or construction shall be final and binding on
                  all parties, including but not limited to the Company and any
                  Participant or Beneficiary. The Committee shall administer
                  such terms and provisions in a uniform manner and in full
                  accordance with any and all laws applicable to the Plan.

         (c).     To enable the Committee to perform its functions, the Company
                  shall supply full and timely information to the Committee on
                  all Plan matters relating to the Participants, their death or
                  other cause of termination, and such other pertinent facts as
                  the Committee may require.

                                       3

<PAGE>

                                   ARTICLE II

                                   DEFINITIONS

2.1      DEFINITIONS.

         Accrual Accounts - shall mean a Participant's Excess Benefit Accrual
         ----------------
         Account and Pre-Effective Date Excess Benefit Accrual Accounts, if any.

         Beneficiary - The beneficiary designated on a form provided by the
         -----------
         Participant's corporate employer, or, if no such designation has been
         made, the beneficiary designated by the Participant under the
         Retirement Plan, or, in the absence of any designation, the personal
         representative of the Participant's estate.

         Board - shall mean the Board of Directors of Fluor Corporation.
         -----

         Change of Control - "Change of Control" of the Company shall be deemed
         -----------------
         to have occurred if, (i) a third person, including a "group" as defined
         in Section 13(d)(3) of the Securities Exchange Act of 1934, acquires
         shares of the Company having twenty-five percent or more of the total
         number of votes that may be cast for the election of directors of the
         Company; or (ii) as the result of any cash tender or exchange offer,
         merger or other business combination or any combination of the
         foregoing transactions (a "Transaction"), the persons who were
         directors of the Company before the Transaction shall cease to
         constitute a majority of the Board of the Company or any successor to
         the Company.

         Code - shall mean the Internal Revenue Code of 1986, as amended.
         ----

         Committee - shall mean the Executive Compensation Committee of the
         ---------
         Company.

         Company - shall mean Fluor Corporation.
         -------

         Crediting Options - shall mean the crediting options shown on Schedule
         -----------------
         A, as modified from time to time.

         Deferral Account - shall mean collectively, a Participant's Deferred
         ----------------
         Incentive Award Account, Deferred Salary Account, Pre-Effective Date
         Deferral Account, the Pre-Effective Date Deferred Salary Accounts and
         the Pre-1986 Deferral Accounts.

         Deferred Incentive Award Account - shall have the meaning set forth in
         --------------------------------
         Section 6.1 hereof.

         Deferred Salary Account - shall have the meaning set forth in Section
         -----------------------
         6.1 hereof.

         Effective Date - shall mean May 1, 1995.
         --------------

         Eligible Employee - shall mean any employee of the Company or its
         -----------------
         subsidiaries who (a) is eligible to participate in the Retirement Plan
         or has been specifically designated as eligible for participation in
         this Plan by the Committee and (b) is an Executive.

                                       4

<PAGE>

         ERISA - shall mean the Employee Retirement Income Security Act of 1974,
         -----
         as amended.

         Excess Benefit Accrual Account - shall have the meaning set forth in
         ------------------------------
         Section 6.2 hereof.

         Excess 401(k) Account - shall mean the accounts maintained pursuant to
         ---------------------
         the Prior Plan to compensate for lost benefits under the Savings Plan
         that were attributable to the annual contribution limitations of
         section 401(k) of the Code.

         Executive shall mean any employee who has been determined to be
         ---------
         eligible to participate in the Fluor Corporation and Subsidiaries
         Executive Incentive Compensation Program, or any other person which the
         Committee determines to be eligible for participation.

         Fiscal Year - shall mean the twelve-month period ending on December 31
         -----------
         of each year.

         Incentive Award - shall mean awards made pursuant to the terms of the
         ---------------
         Fluor Corporation and Subsidiaries Executive Incentive Compensation
         Program, and any other incentive program for Executives or other highly
         compensated employees whose participants the Committee determines to be
         eligible for participation in this Plan.

         Net Asset Value - shall mean a mutual fund's share value, calculated
         ---------------
         once a day, based on the closing market price for each security in the
         fund's portfolio. It is computed by deducting the fund's liabilities
         from the portfolio's total assets and dividing this amount by the
         number of shares outstanding.

         Participant - shall mean any Eligible Employee who has one or more
         -----------
         Deferral Accounts and/or one or more Accrual Accounts under this Plan.

         Performance Plan - shall mean the Fluor Performance Plan.
         ----------------

         Plan - shall mean the Fluor Executive Deferred Compensation Program the
         ----
         terms of which are set forth herein.

         Pre-1986 Deferral Account - shall have the meaning set forth in Section
         -------------------------
         6.1 hereof.

         Pre-Effective Date Deferral Account - shall have the meaning set forth
         -----------------------------------
         in Section 6.1 hereof.

         Pre-Effective Date Deferred Salary Account - shall have the meaning set
         ------------------------------------------
         forth in Section 6.1 hereof.

         Pre-Effective Date Excess Benefit Accrual Account - shall have the
         -------------------------------------------------
         meaning set forth in Section 6.2 hereof.

         Prior Plan - shall mean the Fluor Corporation and Subsidiaries
         ----------
         Executive Deferred Salary Program.

         Retirement Plan - shall mean the Fluor Corporation Defined Retirement
         ---------------
         Plan.

                                       5

<PAGE>

         Salary - shall mean the base salary regularly paid to an employee
         ------
         including the employee's deferrals under Sections 401(k) and 125 of the
         Code.

         Savings Plan - shall mean the Fluor Corporation Salaried Employees'
         ------------
         Savings Investment Plan.

         Termination of Service - Termination of the full-time employee/employer
         ----------------------
         relationship between a Participant and Fluor Corporation or any of its
         subsidiaries by reason of retirement, death, resignation, involuntary
         termination, permanent total disability or change in status to a
         part-time employee, as these terms are defined for purposes of the
         Retirement Plan.

                                   ARTICLE III

                                  PARTICIPATION

3.1      SALARY DEFERRALS. Any Eligible Employee will, for the period of such
         membership, be entitled to defer all or a portion of Salary pursuant to
         the provisions of Section 4.2(a) hereof for so long as he or she
         remains an Eligible Employee. If an Eligible Employee is removed as an
         Executive, such Eligible Employee will, notwithstanding such removal,
         remain eligible to defer salary through the end of the calendar year in
         which such removal occurred.

3.2      INCENTIVE AWARD DEFERRALS. Any Eligible Employee who earns an Incentive
         Award which becomes payable after the Effective Date will be entitled
         to defer such Incentive Award or portion thereof pursuant to the
         provisions of Section 4.2(b) hereof.

3.3      EXISTING ACCOUNTS. All undistributed account balances in the Prior Plan
         as of the Effective Date are hereby transferred to and made a part of
         this Plan. The Prior Plan is hereby merged into this Plan as of the
         Effective Date and all benefits previously payable under the Prior Plan
         shall be paid solely from this Plan. Any such account balances will be
         subject to Adjustment pursuant to the terms of Section 7.1 hereof and,
         subject to the deferral period or periods previously elected by the
         Employee, will be maintained, determined and distributed in accordance
         with the terms hereof. All undistributed account balances of Eligible
         Employees under the Fluor Excess Benefit Plan as of the Effective Date
         are hereby transferred to and made a part of this Plan and such account
         balances will be subject to Adjustment pursuant to the terms of Section
         7.1 hereof. On and after the Effective Date all benefits previously
         payable to Eligible Employees under the Fluor Excess Benefit Plan shall
         be paid solely under this Plan.

3.4      EXCESS BENEFIT ACCRUALS. As of the last day of each calendar year each
         Eligible Employee shall be entitled to receive an Excess Benefit
         Accrual if and to the extent earned in accordance with the provisions
         of Section 5.1 hereof.

                                       6

<PAGE>

                                   ARTICLE IV
                                    DEFERRALS

4.1  AMOUNTS SUBJECT TO DEFERRAL. Subject to the effect of any previously
     authorized or required deductions, reductions or income or employment tax
     withholdings applicable to such compensation, an Eligible Employee may
     elect to defer all or any portion of his or her Salary or any Incentive
     Award, or his or her distributions upon termination subsequent to a Change
     in Control, as described in Section 9.1.

4.2  TIMING AND MECHANICS OF ELECTION.

     (a). Salary - The amount of Salary to be deferred for future payroll
          periods must be specified by the Eligible Employee in writing to his
          or her corporate employer as a fixed percentage of Salary. Such
          deferral election shall be effective with the first payroll period
          within the first fiscal quarter beginning after receipt of the
          election by the Company and will continue in effect until a subsequent
          election or termination of the election is received by the Company,
          which change or termination shall also be effective as of the first
          payroll period within the first fiscal quarter beginning after receipt
          of such election or termination. The deferral percentage so specified
          may not be changed, terminated or re-initiated more often than once
          every fiscal quarter.

     (b). Incentive Awards - The amount of any Incentive Award to be deferred
          must be specified by the Eligible Employee in writing to his or her
          corporate employer no later than the end of the fiscal period(s) for
          which performance is measured in determining the amount of the
          Incentive Award. The amount to be deferred may be specified either as
          a fixed dollar amount or as a percentage of the Incentive Award. Such
          amount or percentage, once specified, is irrevocable as to such
          Incentive Award.

     (c). Change of Control - The amounts to be deferred under Section 9.1 must
          be specified by the Eligible Employee in writing to his or her
          corporate employer at the time the election is required to be made
          pursuant to Section 9.1. The amount to be deferred shall be the entire
          lump sum distribution due upon Change of Control, or this amount taken
          with all or a portion of the other moneys due to him or her from the
          Company upon termination, as described in Section 9.1.

4.3  DEFERRAL PERIODS. Unless otherwise specified by the Eligible Employee at
     the time of his or her deferral election, payment of such amounts shall be
     deferred until such Eligible Employee's Termination of Service. If a
     specific deferral period has been selected, the deferral period shall end
     upon the earlier to occur of (a) the Eligible Employee's Termination of
     Service or (b) expiration of the specified deferral period.

                                       7

<PAGE>

                                    ARTICLE V
                                 OTHER ACCRUALS

5.1  EXCESS BENEFIT ACCRUALS. As of the last business day of each month, the
     Company shall credit the Excess Benefit Accrual Account of each Eligible
     Employee with an amount equal to the excess of the amount of Company
     contributions which would have been allocated to such Eligible Employee's
     account under the Retirement Plan for the calendar year but for the
     limitations imposed by Sections 401 and 415 of the Code over the actual
     amount of company contributions allocated to his or her accounts under such
     plans for the calendar year. As of the last business day of each calendar
     month, the Company shall credit the Excess Benefit Accrual Account of each
     Eligible Employee with an amount equal to the excess of the amount of
     Company contributions which would have been made to the account of such
     Eligible Employee for such month under Section 5.1 and Article VI of the
     Savings Plan, but for the limitations imposed by Sections 401 and 415 of
     the Code over the actual amount of Company contributions allocated to his
     or her accounts for such month pursuant to such Article VI; provided
     however, that such amounts will be so credited only if such Eligible
     Employee elects, prior to beginning of any such month, to defer an
     additional portion of his or her Salary which is equal to the amount by
     which the amounts contributed on behalf of such Eligible Employee pursuant
     to Section 5.1 of the Savings Plan for such month were reduced by reason of
     the limitations imposed by Sections 401 and 415 of the Code. As of the last
     business day of each calendar year, the Company shall credit the Excess
     Benefit Accrual Account of each Eligible Employee with an amount equal to
     the excess of the amount of company contributions which would have been
     allocated to such Eligible Employee's account under the Performance Plan
     for the calendar year but for the limitations imposed by Sections 401 and
     415 of the Code over the actual amount of Company contributions allocated
     to his or her accounts under such plan for the calendar year.

5.2  COMPENSATING ACCRUALS. Each Eligible Employee who elects to defer all or a
     portion of his or her Salary pursuant to Section 4.2(a) hereof will also be
     credited with additional accruals to his or her Deferred Salary Account to
     compensate for reductions in Retirement Plan, Savings Plan, and Performance
     Plan contributions that result from such Salary deferral. Such accruals
     shall be calculated as follows:

     (a). As of the last business day of each calendar month, there shall be
          credited to the account of each Eligible Employee, an additional
          amount that is equal to the amount by which Company contributions to
          such Eligible Employee's accounts in the Retirement Plan were reduced
          by reason of Salary deferrals made under this Plan.

     (b). At the last business day of each calendar month, there shall be
          credited to the account of each Eligible Employee an additional amount
          that is equal to the amount by which Company contributions made under
          Article VI of the Savings Plan for such month to the account of such
          Eligible Employee are reduced by reason of Salary deferrals made under
          this Plan.

                                       8

<PAGE>

     (c). As of the last business day of each calendar year, there shall be
          credited to the account of each Eligible Employee, an additional
          amount that is equal to the amount by which Company contributions to
          such Eligible Employee's accounts in the Performance Plan were reduced
          by reason of Salary deferrals made under this Plan.

                                   ARTICLE VI
                             MAINTENANCE OF ACCOUNTS

6.1  DEFERRAL ACCOUNTS. The Company shall maintain one or more of the following
     separate deferral accounts, as applicable, for Eligible Employees: (1) a
     Deferred Incentive Award Account to which shall be credited all amounts of
     Incentive Awards which have been deferred by such Eligible Employee
     pursuant to the provisions of Section 4.2(b) hereof; (2) a Pre-Effective
     Date Deferral Account which shall include all undistributed amounts
     relating to Incentive Awards as to which a deferral election had been made
     prior to the Effective Date, but not including deferred amounts of
     Incentive Awards for Fiscal Years ending on or before October 31, 1985; and
     (3) a Pre-1986 Deferral Account which shall include all undistributed
     amounts relating to Incentive Awards for Fiscal Years ending on or before
     October 31, 1985; (4) a Pre-Effective Date Deferred Salary Account to which
     shall be credited the balance as of the Effective Date of the amount
     standing to the credit of such Eligible Employee under the Prior Plan,
     reduced by the amount attributable to the Excess 401(k) Account maintained
     under such Prior Plan; and (5) a Deferred Salary Account to which shall be
     credited all amounts of Salary deferred on and after the Effective Date and
     all amounts credited such Eligible Employee pursuant to Section 5.2 hereof.

6.2  EXCESS BENEFIT ACCRUAL ACCOUNTS. The Company shall maintain the following
     separate accrual accounts, as applicable, for Eligible Employees: (1) a
     Pre-Effective Date Excess Benefit Accrual Account to which shall be
     credited as of the Effective Date all amounts then standing to the credit
     of such Eligible Employees in the Fluor Excess Benefit Plan, and in the
     Excess 401(k) Account of the Prior Plan; and (2) an Excess Benefit Accrual
     Account to which shall be credited all amounts accruing for the benefit of
     such Eligible Employee pursuant to Section 5.1 hereof.

6.3  ADJUSTMENTS. Each account of a Participant established pursuant to Sections
     6.1 and 6.2 hereof shall be adjusted monthly to reflect any gains and/or
     losses thereon (the "Adjustment") in accordance with the provisions of
     Section 7.1 hereof.

                                   ARTICLE VII
                                CREDITING OPTIONS

7.1  CREDITING OPTIONS. The Company has selected certain crediting options , any
     of which may be changed, modified or deleted, or additional investment
     options may be added, from time to time by the Committee in its discretion
     (the "Crediting Options"), provided however, that (a) the Five Year T-Bill
     Option will remain available for Pre-Effective Date Deferral Accounts,
     Pre-Effective Date Deferred Salary Accounts and Pre-

                                       9

<PAGE>

     Effective Date Excess Benefit Accrual Accounts and, until the end of the
     1995 fiscal year, for Salary Deferrals put into place prior to the
     Effective Date; and (b) the Fluor Average Interest Factor option shall
     always remain available for Pre-1986 Deferral Accounts. At the time that an
     Eligible Employee first becomes a Participant, the Participant shall
     allocate deferrals among the Crediting Options that will be used as a
     measure of the investment performance of the contents of each of his or her
     Deferral and Accrual Accounts on a form provided by the Committee. In
     making this designation, the Participant may specify that all or any 1%
     multiple of each of his or her Deferral and Accrual Accounts be deemed to
     be invested in one or more of the Crediting Options. Each Participant will
     be able to reallocate the Crediting Options (1) for each of his or her
     Deferral and Accrual Accounts and (2) both for current account balances and
     for future contributions to these accounts, once every month in 1%
     multiples on a form provided by the Committee. Said reallocation will be
     effective as of the first day of the month following the month in which the
     form is received by the Committee, unless the form is received after the
     monthly deadline set from time to time by the Committee for receipt of
     reallocation forms, in which case said reallocation will be effective as of
     the first day of the next subsequent month. Until a Participant delivers a
     new Crediting Options form to the Committee, his or her prior Crediting
     Options shall control. If a Participant has never selected a Crediting
     Option for deferrals or accruals made after the Effective Date, he or she
     shall be deemed to have elected the Money Market Option. The Company shall
     use the Participant's Crediting Option designations as the basis for
     calculating the Adjustment component of each Deferral and Accrual Account.
     If a Participant changes his or her Crediting Option designations, then
     such change shall supersede the previous designation effective the first
     business day of the month following the month the change is made. The
     Company shall begin crediting the Participant's Deferral Accounts with the
     amount deferred by the Participant on the last day of the month in which
     the applicable deferral amount would have otherwise been paid. The daily
     adjustment shall be determined as follows: As of each business day in which
     any amount remains credited to any Deferral Account or Accrual Account of a
     Participant, each portion of such accounts deemed invested in a particular
     Crediting Option shall either be credited or debited with an amount equal
     to that determined by multiplying the portion of such account (as measured
     by number of shares) deemed invested in a particular Crediting Option by
     the Net Asset Value reported for that day for the applicable Investment
     Option. As to the applicable amount distributed, the Company shall cease
     crediting or debiting adjustments to the Participant's Deferral and/or
     Accrual Accounts on the last day of the month prior to the applicable
     distribution event set forth in Articles VIII and IX (the "Valuation
     Date").

     Allocation of investment selections shall be made among the Crediting
     Options. A Participant shall have absolutely no ownership interest in any
     Crediting Option. The Company shall be the sole owner of (if any) funds
     invested in any such Investment Option, as well as all amounts accounted
     for in the Deferral and Accrual Accounts, all of which shall at all times
     be subject to the claims of the Company's creditors.

     A Participant shall be entitled to payment of an amount equal to the amount
     in each of his or her Deferral and Accrual Accounts in accordance with
     Articles VIII and IX hereof.

                                       10

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                                  ARTICLE VIII
                              ACCOUNT DISTRIBUTIONS

8.1  NO DEFERRAL PERIOD SPECIFIED. With respect to any Accrual Account and those
     portions of any Deferral Account (including, any Adjustments related
     thereto) as to which no specific deferral period has been selected by the
     Participant at the time of deferral:

     (a). The lump sum payment or the first installment will be paid in January
          of the year succeeding termination; provided, however, that the
          Company may in its sole discretion elect to make payment on or before
          December 31 of the year of termination.

     (b). In the event of installment payments, the second installment will be
          paid in January following the year in which the first installment was
          paid and all remaining installments will be paid annually in January.

     (c). Payment in cash in one lump sum will be made to all Participants with
          aggregate Accrual and Deferral Account balances of less than
          twenty-five thousand dollars ($25,000). For all other Participants,
          payments either in cash in one lump sum or in annual installments will
          be at the sole discretion of the Participant's corporate employer. The
          number of installment payments will not exceed twenty.

     (d). In the event of the death of a Participant prior to commencement of
          any payments hereunder, payments will be made to his or her
          Beneficiary in accordance with the foregoing provisions. In the event
          of the death of a Participant after commencement of benefit payments
          in installments but prior to payment of his or her entire entitlement,
          payment may be made to his or her Beneficiary in one lump sum or by
          continuation of installments at the discretion of the Participant's
          corporate employer. In the event installments continue to the
          Beneficiary, they will continue to be subject to Adjustment under
          Section 7.1 hereof.

8.2  SPECIFIED DEFERRAL PERIOD. With respect to those portions of any Deferral
     Account (including any Adjustments related thereto) as to which a specified
     deferral period has been selected by a Participant at the time of deferral:

     (a). Entitlement to payment will occur upon the earlier of the (i)
          Participant's Termination of Service or (ii) upon expiration of the
          specific deferral period.

     (b). All payments will be made in a lump sum in cash unless (i) in the
          cases where entitlement to payment arises upon expiration of the
          deferral period, the Participant designates at the time of deferral
          that the deferred amount be paid in a specified number (not to exceed
          twenty) of annual installments or, (ii) in cases where entitlement to
          payment arises upon Termination of Service and where the Participant
          has aggregate Accrual and Deferral Account Balances of twenty-five
          thousand dollars ($25,000) or more, the Company in its sole discretion
          elects to make payments of the deferred amount in a specified number
          (not to exceed twenty) of annual installments.

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     (c). The lump sum payment or the first installment payment will be paid in
          January of the year succeeding entitlement; provided, however, that
          the Company may in its sole discretion elect to make such payment on
          or before December 31 of the year of entitlement.

     (d). If a Participant's entitlement is paid in installments, the second
          installment payment will be paid during January of the year following
          the year in which the first installment was paid and all remaining
          installments will be paid annually in the month of January.

     (e). In the event of the death of a Participant prior to commencement of
          any payments hereunder, payments will be made to his or her
          Beneficiary in accordance with the foregoing provisions. In the event
          of the death of a Participant after commencement of benefit payments
          in installments but prior to payment of his or her entire entitlement,
          payment may be made to his or her Beneficiary in one lump sum or by
          continuation of the installments all at the discretion of the
          Participant's corporate employer. If a Participant has received his or
          her entire entitlement under one or more, but less than all of his or
          her deferral elections, and dies prior to commencement of payments
          under one or more unpaid deferral elections he or she shall be
          considered to have died prior to the commencement of any payments
          hereunder. In the event installments continue to the Beneficiary, they
          will continue to be subject to Adjustment pursuant to Section 7.1
          hereof until distributed.

     (f). Notwithstanding the foregoing, in the event of Termination of Service
          of the Participant after commencement of benefit payments in
          installments but prior to payment of his or her entire entitlement,
          continued payment may be made to Participant by continuation of
          installments, or may be made pursuant to the provisions of Section
          8.1, all at the discretion of the Participant's corporate employer.

     (g). Acceptance of payment of the distributions required hereunder to a
          Participant or his or her beneficiary (as applicable) shall constitute
          a release by such Participant or beneficiary (as applicable) of all
          claims against the Company by the Participant or beneficiary (as
          applicable).

                                   ARTICLE IX
                            OTHER DISTRIBUTION EVENTS

9.1  CHANGE OF CONTROL.

     (a). Notwithstanding any other Section hereof, if a Participant's
          employment with the Company or its subsidiaries terminates for any
          reason other than death, within the two-year period beginning on the
          date that a Change of Control of the Company occurs, then the Company
          shall pay to the Participant by the end of the month following the
          month of termination a lump sum distribution of all of his or her
          Deferral Accounts and Accrual Accounts. If the Participant dies after
          termination

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          of employment but before payment of any amount under this Section,
          then such amount shall be paid to the Beneficiary within the first
          fifteen (15) days of the month following the Participant's death.

     (b). A Participant may elect to waive the lump sum distribution of all of
          his or her Deferral Accounts and Accrual Accounts provided for in
          Section 9.1(a) and maintain these Accounts upon the terms and
          conditions of this Program. Such an election is permitted in either of
          two ways, and a Participant may make either or both forms of election.
          First, such an election can be made subsequent to the Change of
          Control and upon termination of the Participant's employment for any
          reason other than death within the two year period beginning on the
          date of that Change of Control. In the event of a distribution
          pursuant to such an election to waive the lump sum distribution,
          Participant shall forfeit an amount equal to 10% of the amount that
          would otherwise have been distributed to him or her but for the
          election. Such forfeited amount shall become the property of the
          Company. Second, such an election can be made no less than three
          months prior to the date on which a Change of Control occurs. In the
          event of such an election, the election shall apply to any Change of
          Control occurring at least three months later which is followed by
          termination of that Participant's employment for any reason other than
          death within the two-year period beginning on the date of that Change
          of Control. In the event of a distribution pursuant to such an
          election, no forfeiting of 10% of the amount of the distribution shall
          occur. Participant may include within this second type of election all
          or a portion of any other moneys which would be due to him or her from
          the Company upon termination, including for example but without
          limitation accrued vacation, sick pay and severance benefits.

9.2  UNFORESEEABLE EMERGENCY.

     (a). A distribution of a portion of a Participant's Deferral Accounts and
          Accrual Accounts because of an Unforeseeable Emergency will be
          permitted only to the extent required by the Participant to satisfy
          the emergency need. Whether an Unforeseeable Emergency has occurred
          will be determined solely by the Committee. Distributions in the event
          of an Unforeseeable Emergency may be made by and with the approval of
          the Committee upon written request by a Participant.

     (b). An "Unforeseeable Emergency" is defined as a severe financial hardship
          to the Participant caused by sudden and unexpected illness or accident
          of the Participant or of a dependent of the Participant (as defined in
          Code Section 152(a), as interpreted by Treas. Reg. 1457-2(h)(iv) and
          (v) and Rev. Proc. 92-65), loss of the Participant's property due to
          casualty, or other extraordinary and unforeseeable circumstances
          caused by a result of events beyond the Participant's control. The
          circumstances that will constitute an unforeseeable emergency will
          depend upon the facts of each case, but, in any event, any
          distribution under this Section shall not exceed the amount required
          by the Participant to resolve the hardship after (i)

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          reimbursement or compensation through insurance or otherwise, (ii)
          obtaining liquidation of the Participant's assets, to the extent such
          liquidation would not itself cause a severe financial hardship, or
          (iii) suspension of deferrals under the Plan.

9.3  WITHDRAWALS. A Participant may elect by filing with the Company a form
     specified by the Committee, to receive an amount equal to ninety percent of
     his or her Deferral Accounts and Accrual Accounts at any time prior to his
     or her Termination of Service. If a Participant makes an election described
     in this Section 9.3 the balance of the Participant's Deferral Accounts not
     distributed to the Participant shall be forfeited to the Company; the
     amount to which he or she is entitled under this Section 9.3 shall be
     distributed to the Participant in a single lump sum as soon as
     administratively practical following such election; the Participant shall
     be prohibited from participating in deferral portions of the Plan for the
     balance of the Fiscal Year in which this distribution is made and the
     following Fiscal Year; any elections previously made pursuant to Section
     4.2 of this Plan shall cease to be effective.

9.4  HUMANE TREATMENT DISTRIBUTION. In the event of the divorce or legal
     separation of a Participant, and the awarding of all or a portion of the
     Deferral Accounts and Accrual Accounts to the spouse of the Participant by
     court order, , such spouse may elect, by filing with the Committee a form
     specified by the Committee and by providing such other information as the
     Committee may in its discretion reasonably request in order to confirm that
     the applicable facts and circumstances are present, to receive a
     distribution of his or her portion of the Deferral Accounts and Accrual
     Accounts pursuant and subject to the terms of Section 8.1.

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

10.1 PARTICIPANT RIGHTS IN THE UNFUNDED PLAN. Any liability of the Company to
     any Participant with respect to any benefit shall be based solely upon the
     contractual obligations created by the Plan; no such obligation shall be
     deemed to be secured by any pledge or any encumbrance on any property of
     the Company. The Company's obligations under this agreement shall be an
     unfunded and unsecured promise to pay. No Participant or his or her
     designated beneficiaries shall have any rights under the Plan other than
     those of a creditor of the Company. Assets segregated or identified by the
     Company for the purpose of paying benefits pursuant to the Plan remain
     general corporate assets subject to the claims of the Company's creditors.

10.2 NON-ASSIGNABILITY. Neither the Participant nor his or her Beneficiary shall
     have any power or right to transfer, assign, anticipate, hypothecate or
     otherwise encumber any part or all of the amounts payable hereunder, which
     are expressly declared to be unassignable and non-transferable. Any such
     attempted assignment or transfer shall be void and the Company shall
     thereupon have no further liability to such Participant or such Beneficiary
     hereunder. No amount payable hereunder shall, prior to actual payment
     thereof, be subject to seizure by any creditor of any Participant or
     Beneficiary for the payment of debt, judgment or other obligation, by a
     proceeding at law or in equity, nor

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      transferable by operation of law in the event of the bankruptcy,
      insolvency or death of the Participant, his or her designated Beneficiary
      or any other beneficiary hereunder.

10.3  TERMINATION OR AMENDMENT OF PLAN. The Company retains the right, at any
      time and in its sole discretion, to amend or terminate the Plan, in whole
      or in part. Any amendment of the Plan shall be approved by the Board,
      shall be in writing, and shall be communicated to the Participants.
      Notwithstanding the above, the Committee shall have the authority to
      change the requirements of eligibility or to modify the Crediting Options
      hereunder. No amendment of the Plan shall materially impair or curtail the
      Company's contractual obligations arising from deferral elections
      previously made or for benefits accrued prior to such amendment.
      Notwithstanding any other provision herein to the contrary, in the event
      of Plan termination, payment of Deferral and Accrual Accounts shall occur
      not later than the last business day of the month following the month in
      which the termination is made effective.

10.4  CONTINUATION OF EMPLOYMENT. This Plan shall not be deemed to constitute a
      contract of employment between the Company and a Participant. Nothing in
      the Plan or in any instrument executed pursuant to the Plan will confer
      upon any Participant any right to continue in the employ of the Company or
      any Subsidiary or affect the right of the Company or any Subsidiary to
      terminate the employment of any Participant at any time with or without
      cause. Nothing in the Plan will otherwise affect any Participant's
      employment relationship with the Company.

10.5  RESPONSIBILITY FOR LEGAL EFFECT. Neither the Committee nor the Company
      makes any representations or warranties, express or implied, or assumes
      any responsibility concerning the legal, tax or other implications or
      effects of this Plan.

10.6  WITHHOLDING. The Company shall withhold from or offset against any payment
      or accrual made under the Plan any taxes the Company determines it is
      required to withhold by applicable federal, state or local laws.

10.7  OTHER COMPENSATION PLANS. The adoption of the Plan shall not affect any
      other incentive or other compensation plans in effect for the Company or
      any subsidiary, nor shall the Plan preclude the Company from establishing
      any other forms of incentive or other compensation for employees of the
      Company or any subsidiary.

10.8  PLAN BINDING ON SUCCESSORS. The Plan shall be binding upon the successors
      and assigns of the Company.

10.9  SINGULAR, PLURAL. Wherever appropriate in this Plan, nouns in the singular
      shall include the plural.

10.10 CONTROLLING LAW. The Plan shall be governed by and construed in accordance
      with the internal law, without regard to conflict of law principles, of
      the State of California to the extent not pre-empted by the laws of the
      United States of America.

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