Document:

Exhibit 10.3

 

SEVERANCE AGREEMENT

 

This
Severance Agreement (the “Agreement”) dated and effective as of June 26,
2010 (the “Effective Date”) is entered into by and between Westway Group, Inc.,
a Delaware corporation with headquarters in New Orleans, Louisiana (the “Company”),
and Thomas A. Masilla, Jr. (“Executive”).

 

WHEREAS,
the Company employs the Executive in the position of Chief Financial Officer;
and,

 

WHEREAS,
it is understood that the Executive is employed by the Company on an “at will”
basis, and, as such can be terminated by the Company and/or by action of the
Company’s Board of Directors to effect such termination, with or without cause;
and,

 

WHEREAS,
the Company wishes to provide an inducement for the Executive to remain with
the Company; and,

 

WHEREAS,
the Company and the Executive wish to memorialize the terms of the Company’s
severance promises to the Executive in writing.

 

THEREFORE,
in consideration of the foregoing and the mutual provisions contained herein,
and for other good and valuable consideration, the parties hereto agree with
each other as follows:

 

1.                                       Term of
Agreement

 

(a)                                  The term of
this Agreement shall commence on the Effective Date and expire at the end of
the month in which the Executive reaches age 70.

 

(b)                                 This Agreement
cannot be modified or terminated (except as expressly provided herein) without
the mutual consent of the Company and the Executive;

 

(c)                                  Following the
expiration of the Term, the Company will have no further obligations to the
Executive under this Agreement.

 

2.                                       Position

 

The
Executive is currently employed as Chief Financial Officer of the Company and
shall report to the Chief Executive Officer and Board of Directors of the
Company.  The Executive shall have the
duties, responsibilities and authority commensurate with the Executive’s title
and position.  The Executive shall carry
out the duties and responsibilities of the Executive’s position primarily at
the Corporate Office of the Company located in New Orleans, Louisiana.

 

 

3.                                       Compensation
and Benefits

 

(a)                                  Base
Salary.

 

Executive’s
current base salary is $320,000.00 per annum. 
Executive’s base salary may be increased by the Board of Directors at
any time.  The term “Base Salary” as
utilized in the Agreement shall refer to the Executive’s base salary in effect
as of the Effective Date, as the same may be increased by the Board of
Directors from time to time.  Except as
may otherwise be provided in this Agreement, any obligation to pay Executive’s
Base Salary will cease upon termination of the Executive’s employment.

 

(b)                                 Annual
Bonus.

 

For
each calendar year during which the Executive is employed by the Company, the
Executive is eligible to earn an annual performance-based bonus pursuant to the
Westway Group, Inc. 2010 Incentive Compensation Plan which is determined
by the Compensation Committee of the Company’s Board of Directors (the “Compensation
Committee”).

 

(c)                                  Benefits.

 

For
so long as the Executive is employed by the Company and as expressly provided
herein, the Executive shall be entitled to receive employee benefits, fringe
benefits and perquisites consistent with, and on the same basis as, other high
level executives in the Company (the “Benefits”).

 

(d)                                 ADA,
FMLA and Age Discrimination Laws.

 

This
Agreement is subject to the Americans with Disabilities Act (“ADA”), the Family
and Medical Leave Act (“ FMLA”) and all Age Discrimination Laws of the United
States.

 

4.                                       Definitions

 

(a)                                  “Cause” shall
mean for the purposes of this Agreement the commission of acts of gross
negligence, fraud, theft, or misappropriation against the Company or the
conviction of a felony under the law.

 

(b)                                 “Without Cause”
shall mean the absence of Cause.

 

(c)                                  “Constructive
Termination” for purposes of this Agreement shall mean (1) a reduction in
Base Salary or Benefits; (2) any requirement that the Executive’s services
be rendered primarily at a location or locations other than the Company’s
corporate offices in New Orleans, Louisiana; (3) a material diminution by
the Company of the Executive’s roles and responsibilities as Chief Financial
Officer of the Company; (4) any material breach of this Agreement or the
spirit of this Agreement by the Company; or (5) the creation of a hostile
work environment 

 

2

 

whereby the Executive is unable to carry out the
duties and responsibilities of the Executive’s roles and responsibilities as
Chief Financial Officer of the Company.

 

(d)                                 “Change in
Control” means (i) any person or “group” (as defined in Section 13(d)(3) of
the 1934 Act), other than ED&F Man Holdings Limited and its subsidiaries,
acquiring (whether by stock purchase, asset purchase, merger or otherwise)
twenty percent (20%) or more of the voting power of the Company’s then
outstanding voting shares, or (ii) the individuals who, as of July 1,
2010, are members of the Board of Directors (the “Incumbent Board”), cease for
any reason to constitute more than fifty percent of the Board of Directors;
provided, however, that if the election, or nomination for election by the
Company’s shareowners, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of
this Agreement, be considered as a member of the Incumbent Board, but excluding
for this purpose, any such individual whose initial assumption of office occurs
as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board of
Directors; or (iii) approval by shareowners of the Company of a complete
liquidation or dissolution of the Company or an agreement for the sale or other
disposition of all or substantially all of the assets of the Company.

 

(e)                                  “Disabled” and “Disability”,
as used herein, shall mean Executive’s inability to perform the essential
duties and responsibilities of Executive’s job with reasonable accommodation,
for a continuous period of 90 days or more, or for 120 days or more in a12
month period, due to a physical or mental condition.

 

5.                                       Termination for
Cause/Resignation by Executive.

 

The
Company may terminate Executive’s employment with Cause and the Executive may
resign from employment from the Company for any reason or no reason at
all.  Upon the Company’s termination of
the Executive for Cause or the Executive’s resignation (other than the
Executive’s death or Disability), Executive shall be entitled to receive only
that portion of Executive’s Base Salary earned, but unpaid, as of the date of
termination, payable no later than 30 days after Executive’s date of
termination.  The Executive will also
receive all vested benefits, including 401k and previously deferred
compensation.

 

6.                                       Termination of
Employment Without Cause

 

The
Company may terminate Executive’s employment Without Cause.  If the Company terminates the Executive’s
employment Without Cause for any reason other than the Executive’s death or
Disability, Executive shall be entitled to receive the following:

 

(a)                                  that portion of
Executive’s Base Salary earned, but unpaid as of the date of termination, paid
within 30 days of the date of the Executive’s termination;

 

(b)                                 a pro-rata
portion of the Executive’s Annual Bonus earned in the year of termination,
measured as of the date of termination, paid at the same time as all 

 

3

 

other Company annual bonuses are paid for the year
in which Executive’s employment terminates, but in no event later than March 15
of the calendar year following the year in which Executive’s employment
terminates;

 

(c)                                  any Annual
Bonus earned by the Executive for a prior completed calendar year to the extent
not therefore paid and not theretofore deferred (with any such deferred amounts
to be paid in accordance with and at the times set forth in the applicable
deferral arrangement) paid at the same time as all other Company annual bonuses
are paid for the prior completed year, but in no event later than March 15
of the calendar year following the year in which the Executive’s employment
terminates (the amounts described in clauses (a), (b), and (c), and the times
at which such amounts are paid, shall be hereinafter referred to as the “Accrued
Obligations”);

 

(d)                                 a lump sum
payment (the “Severance Payment”) equal to two times the sum of
(x) Executive’s Base Salary in effect at the time of such termination, and
(y) the cash portion of Executive’s Annual Bonus in respect of the
calendar year immediately preceding the calendar year in which such termination
occurs.  Payment of the Severance Payment
will be made in cash; and

 

(e)                                  (A) any
outstanding equity awards (including outstanding awards held by the Executive
pursuant to the Westway Group, Inc. 2010 Incentive Compensation Plan)
shall become fully vested and exercisable and any restrictions thereon shall
lapse effective as of the Executive’s date of termination and (B) any
stock options outstanding as of Executive’s date of termination must be
exercised within 90 days of the Executive’s date of termination ( clauses (A) and
(B) collectively referred to herein as the “Equity Benefits”).

 

In
order to receive the Severance Payment, Executive will be required to sign a
Settlement Agreement and Release of the Company (the “Release”).  The Severance Payment shall be paid to Executive
within 10 business days following the expiration of the revocation period
applicable to the Release consistent with applicable state and Federal
law.  For the avoidance of doubt,
(x) if the Executive is terminated Without Cause within 12 months of a Change
in Control and is entitled to payments and/or benefits pursuant to
Section 8 hereof, Executive shall not be entitled to any payments and/or
benefits pursuant to this Section 6 and (y) the Severance Payment
shall be calculated as provided in paragraph (d) above, regardless of the
amount of time remaining in the Term of this Agreement at the time the
Executive is terminated.

 

7.                                       Constructive
Termination.

 

For
purposes of this Agreement, a Constructive Termination shall constitute
termination of the Executive Without Cause, subject to the provisions of this
Section 7.  In order to confect a
claim by the Executive of constructive termination, the Executive must provide
written notice to the Company of the existence of the conditions giving rise to
such a situation including evidential matter supporting the Executive’s
allegation.  The Company shall have 30
business days following receipt of such notice (the “Cure Period”) during which
it may remedy the condition.  In the
event that the Company fails to remedy the 

 

4

 

condition
constituting the Constructive Termination during the Cure Period, Executive
must deliver notice to the Company that the condition has not been remedied
which, for purposes of this Agreement, will constitute termination Without
Cause.

 

8.                                       Termination
After a Change in Control of the Company.

 

If
within 12 calendar months of a Change in Control the Company terminates the
Executive’s employment Without Cause for any reason other than the Executive’s
death or Disability, Executive shall be entitled to receive:

 

(a)                                  the Accrued
Obligations;

 

(b)                                 the Severance
Payments; and

 

(c)                                  the Equity
Benefits.

 

In
order to receive the Severance Payment, Executive will be required to sign a
Settlement Agreement and Release of the Company (the “Release”).  The Severance Payment shall be paid to
Executive within 10 business days following the expiration of the revocation
period applicable to the Release consistent with applicable state and Federal
law.  For the avoidance of doubt, (x) if
the Executive is terminated Without Cause within 12 months of a Change in
Control and is entitled to payments and/or benefits pursuant to this
Section 8, Executive shall not be entitled to any payments and/or benefits
pursuant to Section 6 hereof and (y) the Severance Payment shall be
calculated as provided in paragraph (d) of Section 6 hereof,
regardless of the amount of time remaining in the Term of this Agreement at the
time the Executive is terminated..

 

9.                                       Death or
Disability.

 

The
Executive’s employment shall be automatically terminated upon Executive’s
death.  If Executive becomes “Disabled”,
the Company may terminate this Agreement after giving Executive 30 business
days written notice of its intention to do so unless Executive returns to
full-time performance of Executive’s duties within such 30 business day notice
period.  Disputes on issues of Disability
shall be determined by an impartial, reputable physician agreed upon by the
parties or their respective doctors. 
Upon the Executive’s termination due to death or Disability, the
Executive or Executive’s estate shall be entitled to receive (1) six
months Base Salary; (2) any Accrued Obligations; and (3) any Equity
Benefits.

 

10.                                 Tax Matters.

 

(a)                                  With regard to
any payments made under this Agreement which would trigger a tax under Internal
Revenue Code (“IRC”) Sec. 280G for the Executive, the Company will gross up the
payment for the IRC Section 280G tax liability.

 

(b)                                 The Company or
any of its applicable affiliates shall withhold from any amounts payable or
provided under this Agreement such federal, state or local taxes as 

 

5

 

shall be required to be withheld under any
applicable law or regulation and other required or applicable deductions.

 

(c)                                  If and to the
extent any portion of any payment, compensation or other benefit provided to
Executive in connection with Executive’s separation from service (as defined in
IRC Section 409A) is determined to constitute “nonqualified deferred
compensation” within the meaning of IRC Section 409A and Executive is a
specified employee as defined in IRC Section 409A(a)(2)(B)(i), as
determined by the Company or any of its applicable affiliates in accordance
with its procedures, by which determination Executive hereby agrees that
Executive is bound, such portion of the payment, compensation or other benefit
shall not be paid before the day that is six months plus one day after the date
of separation from service (as determined under IRC Section 409A) (the “New Payment Date”), except as IRC Section 409A may
then permit.  The aggregate of any
payments that otherwise would have been paid to Executive during the period
between the date of separation from service and the New Payment Date (the “Postponement Period”) shall be paid to Executive in a lump
sum on such New Payment Date, and any remaining payments will be paid on their
original schedule.

 

(d)                                 If Executive
dies during the Postponement Period, the amounts and entitlements delayed on
account of IRC Section 409A of the Code shall be paid to the personal
representative of Executive’s estate on the first to occur of the New Payment
Date and thirty (30) days after the date of Executive’s death.

 

(e)                                  For purposes of
this Agreement, each amount to be paid or benefit to be provided shall be
construed as a separate payment for purposes of IRC Section 409A, and any
payments that are due within the “short term deferral period” as defined in IRC
Section 409A shall not be treated as deferred compensation unless
applicable law requires otherwise. 
Neither the Company nor any of its applicable affiliates nor Executive
shall have the right to accelerate or defer the delivery of any such payments
or benefits except to the extent specifically permitted or required by IRC Section 409A.

 

(f)                                    All
reimbursements and in-kind benefits provided under this Agreement that
constitute deferred compensation within the meaning of IRC Section 409A
shall be made or provided in accordance with the requirements of IRC Section 409A,
including, without limitation, that (i) in no event shall reimbursements
to Executive under this Agreement be made later than the end of the calendar
year next following the calendar year in which the applicable fees and expenses
were incurred, provided, that Executive shall have submitted an invoice for
such fees and expenses at least ten (10) days before the end of the
calendar year next following the calendar year in which such fees and expenses
were incurred; (ii) the amount of in-kind benefits that Executive is
entitled to receive in any given calendar year shall not affect the in-kind
benefits that Executive is entitled to receive in any other calendar year;
(iii) Executive’s right to reimbursements and in-kind benefits may not be
liquidated or exchanged for any other benefit; and (d) in no event shall
Executive’s entitlement to reimbursements or in-kind benefits 

 

6

 

apply later than Executive’s remaining lifetime (or
if longer, through the twentieth (20th) anniversary of the Effective Date).

 

(g)                                 This Agreement
is intended to comply with the provisions of IRC Section 409A and shall,
to the extent practicable, be construed in accordance therewith.

 

(h)                                 In no event
shall a tax gross-up payment be paid later than the end of the year following
the year that the related taxes, or taxes on the underlying income or imputed
income, are remitted to the applicable taxing authority.  Employment Periods defined in this Agreement
shall have the meanings given such terms under IRC Section 409A if and to
the extent required to comply with IRC Section 409A.  In any event, neither the Company nor any of
its affiliates makes any representations or warranty and shall have no
liability to Executive or any other person if any provisions of or payments
under this Agreement are determined to constitute deferred compensation subject
to IRC Section 409A but not to satisfy the conditions of IRC Section 409A.

 

11.                                 If Executive’s
employment ends for any reason, Executive agrees that Executive will
immediately resign from any and all officer and director positions that
Executive then has with the Company or any subsidiary or affiliate upon request
of the Board of Directors of the Company.

 

12.                                 In no event
shall Executive be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to Executive under any of the
provisions of this Agreement, and such amounts shall not be reduced whether or
not the Executive obtains other employment.

 

13.           While employed
and for a period of two years following the date of termination of Executive’s
employment for any reason, Executive shall not solicit or induce, or cause any
other person to solicit or induce, any employee of the Company or any of its
subsidiaries to leave the Company or any of its subsidiaries or in any way to
modify his or her relationship with the Company.

 

14.           While employed
and for a period of ten years following the date of termination of Executive’s
employment for any reason, Executive shall not directly or indirectly disclose
or furnish to any entity, firm, corporation or person, except as otherwise
required by law or in the direct performance of the Executive’s duties for or
to the Company, any confidential or proprietary non-public information of the
Company.

 

15.           Executive
agrees that upon termination of Executive’s employment, Executive shall provide
to the Company all documents, papers, files (including electronic files) or
other material in Executive’s possession or under Executive’s control that are
connected with or derived from the Executive’s services to the Company or that
belong to the Company.

 

16.                                 Mediation

 

The
parties shall first try in good faith to settle by mediation any dispute
arising out of or relating to this Agreement or its breach.  The mediation is to be administered by the 

 

7

 

American
Arbitration Association (“AAA”).  The
mediation shall be held in the City of New Orleans.  All expenses associated with the mediation shall
be the responsibility of the Company.  If
the mediation is unsuccessful, the parties may then resort to litigation or any
other mutually agreeable dispute resolution procedure.

 

17.                                 Injunctive
Relief

 

In
the event of a breach by Executive of Executive’s obligations under this
Agreement, the Company, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement. 
Executive acknowledges that the Company shall suffer irreparable harm in
the event of a breach or prospective breach of Sections 13, 14, and/or 15
hereof and that monetary damages would not be adequate relief.  Notwithstanding the provisions of Section 16
(Mediation), the Company shall be entitled to seek and obtain temporary
injunctive relief to enforce its rights under this Agreement in any court of
competent jurisdiction without first attempting to settle the matter through
mediation, provided that the Company does seek to mediate the dispute prior to
seeking permanent equitable relief from the court.  This section shall survive the expiration of
the Executive’s employment with the Company.

 

18.                                 Choice of Law;
Venue.

 

The
laws of the State of Louisiana (without giving effect to its conflicts of law
principles) govern all matters arising out of or relating to this Agreement,
including, without limitation, its validity, interpretation, construction,
performance, and enforcement.  Any party
bringing a legal action or proceeding against any other party arising out of or
relating to this Agreement may bring the legal action or proceeding in the
United States District Court for the Eastern District of Louisiana or in any
court of the State of Louisiana sitting in New Orleans, Louisiana.

 

19.                                 Severability

 

Should
any provision of this Agreement be rendered or declared legally invalid or
unenforceable by a court or arbitration tribunal of competent jurisdiction or
by the decision of an authorized governmental agency, invalidation or unenforceability
of such provision shall not invalidate or render unenforceable any of the
remaining provisions of this Agreement.

 

20.                                 The provisions
of this Agreement contain the entire agreement and understanding of the parties
regarding the Agreement and its provisions, and shall, as of the Effective
Date, fully supersede any and all prior agreements, representations, promises
or understandings, written or oral, between them pertaining to the subject
matter.  The provisions of this Agreement
may not be amended except in writing by the Executive and an authorized officer
appointed by the Board of Directors of the Company to sign the amendment.

 

21.                                 Any failure by
either party to exercise any of its rights to enforce any of the provisions of
this Agreement shall not prejudice such party’s rights with respect to any
subsequent or 

 

8

 

further violation, breach or default by the other
party.  A waiver of any provision of this
Agreement by the parties shall not be valid or effective unless memorialized in
writing and signed by both parties to this Agreement.

 

22.           The rights and
obligations of the Company under this Agreement will be transferable and will
be binding upon and be enforceable by its successors and assigns; provided,
however, that no assignment or transfer of Company’s rights and/or obligations
hereunder will serve to release the Company from its obligations hereunder
without the written agreement of the Executive.

 

9

 

IN
WITNESS WHEREOF, Executive and the Company have executed this Agreement
effective as of June 26, 2010.

 

	
   

  	
  WESTWAY
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Francis Jenkins, Jr.

  
	
   

  	
   

  	
  Francis
  Jenkins, Jr.

  
	
   

  	
   

  	
  Chairman
  of the Board of the Compensation Committee of the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Thomas A. Masilla, Jr.

  
	
   

  	
  Thomas
  A. Masilla, Jr.

  
	
   

  	
  Date:

  	
  June 25,
  2010

  

 

10Exhibit
10.1

 

FORM OF CHANGE IN CONTROL
AGREEMENT

 

THIS
CHANGE IN CONTROL AGREEMENT (“Agreement”)
is effective as of [                         ,
20    ] (the “Effective Date”),
by and between Fluor Corporation, a Delaware corporation (the “Company”) and [NAME] (“Executive”).

 

SECTION 1:  DEFINITIONS

 

All
terms defined in this Section 1 will, throughout this Agreement, have the
meanings given herein:

 

(a)                                  “Affiliate” means any company controlled by, controlling or
under common control with the Company within the meaning of section 414 of the
Code.

 

(b)                                 “Annual Incentive Plan” means the Company’s incentive plan
pursuant to which annual incentives are granted, including any successor plan
thereto.

 

(c)                                  “Board” means the board of directors of the Company.

 

(d)                                 “Base Salary” means on the date of determination, the annual
base salary then in effect for Executive (but not less than the highest annual
base salary paid to Executive during any of the three (3) years
immediately preceding the date of Executive’s Qualifying Termination).

 

(e)                                  “Bonus” means the annual incentive amount payable to
Executive, if any, under the Annual Incentive Plan.

 

(f)                                    “Cause” means Executive’s (i) fraud, (ii) conviction
of a felony, (iii) material failure or refusal to perform Executive’s job
duties in accordance with Company policies, or (iv) a material violation
of Company policy that causes substantial  harm to the
Company or its Subsidiaries.

 

Executive
will not be deemed to have been terminated for Cause unless and until there has
been delivered to Executive written notice that Executive has engaged in
conduct constituting Cause.  The
determination of Cause will be made by [*]1.  If
Executive receives written notice that he or she has engaged in conduct
constituting Cause, Executive will be given the opportunity to be heard (either
in person or in writing) as mutually agreed to by Executive and [*]2 for the purpose of
considering whether Cause exists.  If it
is determined either at or following such hearing that Cause exists, Executive
will be notified in writing of such determination within five (5) business
days of the hearing.  If Executive
disagrees with such determination, Executive may file a claim contesting such
determination with any court of competent jurisdiction or pursuant to Section 21
within thirty (30) days after Executive’s receipt of such written determination
that Cause exists.

 

1  The Compensation
Committee will make such determination with respect to the Chief Executive
Officer and any Section 16(b) Officer; and it is expected that the
Executive’s immediate supervisor will make the determination for any other
Executive to which this Agreement is extended.

 

2  Insert individual or
entity responsible for determination of Cause.

 

 

(g)                                 “Change in Control” means any of any of the following events:

 

(i)                                     25%
Ownership Change: any “person” or group (as defined in section 3(a)(9) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and as modified in section 13(d) and 14(d) of the Exchange Act),
together with their affiliates and associates (both as defined in Rule 12b-2
under the Exchange Act) other than (A) the
Company or any of its Subsidiaries, (B) any employee benefit plan of the
Company or any of its Subsidiaries, or the trustee or other fiduciary holding
securities under any such employee benefit plan, (C) a company owned,
directly or indirectly, by shareholders of the Company in substantially the
same proportions as their ownership of the Company or (D) an underwriter
temporarily holding securities pursuant to an offering of such securities
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange
Act), directly or indirectly, through one single transaction or group of
related transactions, of more than twenty-five percent (25%) of either (1) the
then-outstanding shares of common stock of the Company or (2) the combined
voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of the Board; provided,
however, that such a twenty-five percent (25%) ownership change will
not be deemed to have occurred in the event that the shareholders of the
Company on the date of such ownership change continue to own at least
seventy-five percent (75%) of the equity and the combined voting power of any holding
company of which the Company becomes a wholly-owned direct or indirect
subsidiary following such ownership change; or

 

(ii)                                  Board Majority Change:  as the result of any cash tender or exchange
offer, merger or other business combination or transaction, including a
transaction described in Section 1(g)(i), (iii) or (iv) of this
Agreement, or any combination of the foregoing transactions (a “Transaction”), individuals who as of the date that is ninety
(90) days preceding the date of the Transaction, constitute the members of the Board  (the “Incumbent  Directors”)
cease for any reason other than due to (A) death or (B) disability or
mandatory retirement, as determined in accordance with applicable Company
personnel policies, to constitute at least a majority of the members of the
Board, provided that any director who was nominated for election or was elected
with the approval of at least a majority of the members of the Board who are at
the time Incumbent Directors will be considered an Incumbent Director unless
such individual’s initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by
or on behalf of a person other than the Board; or

 

(iii)                               Merger or Acquisition: the Company
will have merged into or consolidated with another corporation, or merged
another corporation into the Company, on a basis whereby less than fifty
percent (50%) of the total voting power of the surviving corporation is
represented by shares held by stockholders of the Company immediately prior to
such merger or consolidation; or

 

(iv)                              Asset Disposition:  the consummation of a sale or disposition by
the Company of all or substantially all of the Company’s assets, other than a
sale or disposition if the holders of the voting securities of the Company
outstanding immediately prior thereto hold securities immediately thereafter
which represent more than a 

 

2

 

majority
of the combined voting power of the voting securities of the acquirer, or
parent of the acquirer, of such assets.

 

(h)                                 “Code” means the Internal Revenue Code of 1986, as amended.

 

(i)                                     “Company” means Fluor Corporation, a Delaware corporation,
and any successor thereto which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

 

(j)                                     “Compensation” means the greater of (a) the
sum of Executive’s Base Salary plus Target Bonus determined immediately prior
to the date on which a Change in Control occurs, or (b) the sum of
Executive’s Base Salary plus Target Bonus determined immediately prior to the
date of the Qualifying Termination.

 

(k)                                  “Compensation Committee” means the Organization and
Compensation Committee of the Board.

 

(l)                                     “Equity Plan” means any equity-compensation plan maintained
by the Company or a Subsidiary under which Executive received equity-based
awards, such as stock options, restricted stock units, performance units or
restricted stock.

 

(m)                               “Good Reason” means any one or more of the following events:

 

(i)                                     a material
diminution of Executive’s aggregate compensation (including, without
limitation, Base Salary, annual bonus opportunity, and equity incentive
compensation opportunities);

 

(ii)                                  a material
diminution of Executive’s authority, duties or responsibilities;3

 

(iii)                               a material
diminution in the authority, duties or responsibilities of the supervisor to
whom Executive is required to report;4

 

(iv)                              a material
diminution of the budget over which Executive retains authority;

 

(v)                                 any other
action or inaction that constitutes a material breach by the Company of the
agreement under which Executive provides services (e.g.,
failure of successor to assume this Agreement or breach of same);

 

provided, however, that no later than sixty
(60) days after learning of the action (or inaction) described herein as the
basis for a termination of employment for Good Reason, Executive must advise
the Company in writing that the action (or inaction) constitutes grounds for a
termination of his or her employment for Good Reason, in 

 

3  For persons other
than the Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer and Chief Legal Officer, the language will read as follows:  “a material diminution of Executive’s
authority, duties or responsibilities; provided, however, that an event that
causes Executive to have an additional layer of reporting but does not
otherwise affect Executive’s position shall not be considered a material diminution
of Executive’s authority, duties or responsibilities for purposes of this
definition.”

 

4  To be included only for the Chief Executive Officer, Chief
Operating Officer, Chief Financial Officer and Chief Legal Officer.

 

3

 

which
event the Company will have thirty (30) days to correct such action (or
inaction) (the “Cure Period”) and if such action
(or inaction) is timely corrected within the Cure Period, then Executive will
not be entitled to terminate his or her employment for Good Reason as a result
of such action (or inaction). If such action or inaction is not timely
corrected within the Cure Period, then Executive will be entitled to terminate
his or her employment for Good Reason at any time within the one-hundred and
twenty (120) day period following expiration of the Cure Period.

 

(n)                                 “IRS” means the Internal Revenue Service.

 

(o)                                 “Qualifying Termination” means any termination of Executive’s
employment with the Company or any Affiliate that is a “Separation from Service”
(within the meaning of section 409A of the Code and Treasury Regulation §
1.409A-1(h)(3) (or any successor regulations or guidance thereto)) that
occurs within two (2) years after the date upon which a Change in Control
occurs by reason of (a) Executive’s involuntary termination of employment
without Cause or (b) Executive’s resignation from employment for Good
Reason.

 

(p)                                 “Subsidiary” means any entity in which the Company, directly
or indirectly, possesses 50% or more of the total combined voting power of all
classes of its stock.

 

(q)                                 “Target Bonus” means Executive’s target incentive award
opportunity under the Annual Incentive Plan in effect for the year with respect
to which the target bonus amount is being determined or, if no such plan is
then in effect, for the last year in which such a plan was in effect.

 

(r)                                    “Waiver and Release” means a legal document, substantially in
the form attached hereto as Attachment A,
in which Executive, in exchange for severance benefits described in Section 2,
among other things, releases the Company, its Subsidiaries and their
Affiliates, their respective directors, officers, employees and agents, and
their respective employee benefit plans and the fiduciaries and agents of said
plans from liability and damages in any way related to Executive’s employment
with or separation from the Company.

 

(s)                                  “Welfare Benefit Coverage” means each of the group medical,
dental and vision benefit coverages provided by the Company in which Executive
and Executive’s eligible dependents, if any, are participating immediately
preceding the date of Executive’s Qualifying Termination.

 

SECTION 2:  SEVERANCE BENEFITS

 

If
Executive experiences a Qualifying Termination, then, subject to the Waiver and
Release requirement in Section 2(i) below, Executive will be entitled
to receive, as additional compensation for services rendered to the Company
(including its Subsidiaries and  Affiliates),
the following severance benefits:

 

(a)                                  Cash
Severance Amount:  A lump sum
cash payment in an amount equal to Executive’s Compensation multiplied by [*]5, subject to
applicable withholding for income 

 

5  This
amount will be three (3) for the Chief Executive Officer and either two
(2) or one (1) for other persons to whom the Agreement is extended,
as determined by management (referred to herein as the “Severance Multiplier”).

 

4

 

and employment taxes.  Such cash severance payment will be paid on
the sixtieth (60th) day following Executive’s Qualifying Termination, but only
if the Waiver and Release described in Section 2(i) has been timely
executed and returned and the Waiver and Release Revocation Period has expired.

 

(b)                                 Accrued
Obligations:  Executive
will be entitled to payment of all accrued Base Salary, accrued time off and
any other accrued and unpaid obligations as of the date of the Qualifying
Termination.  Such accrued obligations
will be paid in a lump sum, subject to applicable withholding for income and
employment taxes, as soon as practicable following the date of Executive’s
Qualifying Termination in accordance with the Company’s normal payroll policies
and practices.

 

(c)                                  Pro-Rated
Earned Bonus:  Unless the
provisions of Section 3 (regarding the successor’s failure to assume the
Annual Incentive Plan) apply, Executive will be entitled to payment of the
Bonus earned in accordance with the terms of the Annual Incentive Plan as acted
on by the Compensation Committee during the Company’s fiscal year of the
Qualifying Termination.  Such Bonus will
be pro rated as a fraction of twelve (12) for full months worked by Executive
for the Company during such fiscal year and will be paid to Executive, at the
time and in the same manner specified in the Annual Incentive Plan.

 

(d)                                 Welfare
Benefit Coverage:  Executive
will be entitled to continued Welfare Benefit Coverage on the same basis as
similarly situated active executives of the Company for Executive and his or
her eligible dependents for a period of [*]6 year[s].  Executive and his or her covered dependents,
if any, will be required to pay on an after-tax basis that portion of the
premium cost paid by similarly situated executives for active employee coverage
to retain such coverages and the Company paid portion of the premium for such
coverages will be imputed as income and reported as wages to Executive.  In all other respects Executive and his or
her dependents will be treated the same as other participants under the terms
of such plans.  The Welfare Benefit
Coverage provided to Executive and his or her dependents pursuant to this Section 2(d) will
be in addition to any continued coverage Executive and such dependents are
entitled to elect under the Consolidated Omnibus Budget Reconciliation Act of
1985, as amended (“COBRA”), and
Executive and such dependents will be provided with notice of their COBRA
rights, if any, at the end of the [*]7 year period specified in this Section 2(d).

 

(e)                                  Outplacement:  Executive will be entitled to reimbursement
of any expenses reasonably incurred by Executive during the twelve (12) month
period following Executive’s Qualifying Termination for outplacement services
in an amount equal to the lesser of ten percent (10%) of his or her Base Salary
or twenty-five thousand dollars ($25,000). 
Reimbursement of such expenses will be made upon Executive’s
substantiation of such outplacement expenses; provided,
however, that in no event will reimbursement be made later than March 15
of the year following the year in which Executive incurs the substantiated
expenses.

 

(f)                                    Payment
of Legal Expenses.  Executive
will be entitled to reimbursement of any legal expenses reasonably incurred by
Executive in order to obtain benefits under this 

 

6  Insert the applicable
Severance Multiplier.

 

7  Insert the applicable Severance Multiplier.

 

5

 

Agreement; provided, that,
the payment of such expenses is subject to an arms-length, bona fide dispute as
to Executive’s right to such benefits. 
Such reimbursements will be made on a regular, periodic basis upon
Executive’s substantiation of such legal expenses; provided,
however, that in no event will reimbursement be made later than March 15
of the year following the year in which Executive incurs the expenses unless
Executive is a “Specified Employee” within the meaning of section 409A of the
Code and it is determined that reimbursement of such expenses is being made by
reason of Executive’s “Separation from Service” (within the meaning of section
409A of the Code and Treasury Regulation § 1.409A-1(h)(3) (or any
successor regulations or guidance thereto) in which case reimbursement of such
expenses will not be made before the day that is six (6) months and one (1) day
following Executive’s Separation from Service. 
The amount of legal expenses eligible for reimbursement under this Section 2(f) during
a taxable year may not affect the legal expenses eligible for reimbursement in
any other taxable year and the right to reimbursement under this Section 2(f) is
not subject to liquidation or exchange for another benefit.

 

The pendency of a claim by the Company that a claim
or defense of Executive is frivolous or otherwise lacking merit will not excuse
the Company from making periodic payments of legal expenses pursuant to this Section 2(f) until
a final determination is made regarding the validity of Executive’s claim. In
the event that a final determination is made that a claim asserted by Executive
was frivolous, the portion of such expenses incurred by Executive as a result
of such frivolous claim will become Executive’s sole responsibility and any
funds advanced by the Company will be repaid to the Company.  Any failure by the Company to satisfy any of
its obligations under this Section 2(f) will not limit the rights of
Executive hereunder.  Subject to the
foregoing, Executive will have the status of a general unsecured creditor of
the Company and will have no right to, or security interest in, any assets of
the Company or any Subsidiary or Affiliate.

 

(g)                                 Equity
Compensation Adjustments. 
Unless the provisions of Section 3 (regarding the successor’s
failure to assume the Equity Plan) apply, upon a Qualifying Termination, (i) any
equity-based compensation awards, other than performance-based equity awards,
granted to Executive by the Company under an Equity Plan prior to such
termination that are outstanding will, to the extent that the terms of the
Equity Plan and its associated award agreements do not provide for the
immediate vesting, exercisability and/or settlement of such awards, become
fully vested and exercisable or settled, subject to the requirements of section
409A of the Code to the extent applicable, and (ii) any performance-based
equity awards will, to the extent the applicable performance criteria are met,
be earned on a pro rata basis based on the number of full months worked by
Executive for the Company during the applicable performance period and the
number of months in the applicable performance period and will be settled at
the time and in the same manner specified in the Equity Plan.  Executive will not be entitled to any
new-equity based compensation awards following the date of his or her
Qualifying Termination.

 

(h)                                 Retention
Awards.  Unless the provisions of Section 3
apply (regarding the successor’s failure to assume the retention awards), upon
a Qualifying Termination any outstanding retention awards granted to Executive
which are outstanding will become immediately vested and settled pursuant to
their terms, subject to the requirements of section 409A of the Code, to the
extent applicable.

 

6

 

(i)                                     Waiver
and Release Requirement. 
Payment of the benefits under this Section 2 is subject to
Executive’s timely execution and return of the Waiver and Release to the
Company, without subsequent revocation during the seven (7)-day period
following such execution date (the “Waiver and Release
Revocation Period”), as provided in this Section 2(i).  Executive will have fifty (50) days following
(i) his or her Qualifying Termination date to consider, execute and return
the Waiver and Release to the Company and will then have the right to revoke
the Waiver and Release during the Waiver and Release Revocation Period.  If Executive fails to timely execute and return
the Waiver and Release to the Company or revokes such Waiver and Release during
the Waiver and Release Revocation Period, then Executive will forfeit, and will
not be entitled to, any of the benefits described in this Section 2 (other
than the amounts described in Section 2(b)).

 

(j)                                     Rabbi Trust
Funding Obligation.  Within five
(5) business days following the occurrence of a Change in Control, the
Company must contribute to a domestic rabbi trust an amount sufficient to fully
fund the cash severance amount and outplacement benefits accrued as of the date
of the Change in Control pursuant to this Section 2; provided,
however, that the trust will not be funded if the funding thereof
would result in taxable income to Executive by reason of section 409A(b) of
the Code; and provided, further, in no event
will any trust assets at any time be located or transferred outside of the
United States, within the meaning of section 409A(b) of the Code. Such
funding obligation will remain in effect for the two (2) year period
following such Change in Control, such that any increase in such amounts by
reason of any increase in Executive’s Compensation will be funded within five (5) business
days following the end of the calendar quarter in which such increase in
Compensation occurs.

 

SECTION 3:  TARGET BONUS PAYMENT, RETENTION AWARDS AND
EQUITY CASHOUT

 

In
the event that the successor to the Company does not assume the Annual
Incentive Plan, and irrespective of whether Executive incurs a Qualifying
Termination, Executive will be entitled to receive a lump sum cash payment in
an amount equal to the Target Bonus in effect at the time of the Change in
Control, subject to applicable withholding for income and employment
taxes.  Such Target Bonus will be paid
within five (5) business days following the date of the Change in
Control.  In the event the successor to
the Company does not assume any outstanding retention awards as of the date of
the Change in Control, then such awards will become immediately fully vested
and settled at the time of such Change in Control, subject to the requirements
of section 409A of the Code to the extent applicable.  In the event the successor to the Company
does not assume the Equity Plan or grant comparable awards in substitution of
the outstanding awards under the Equity Plan as of the date of the Change in
Control, then any equity-based compensation awards granted to Executive by the
Company under Equity Plan and outstanding as of the date of the Change in
Control, other than performance-based equity awards, will become immediately fully
vested and/or exercisable and will no longer be subject to a substantial risk
of forfeiture or restrictions on transferability, other than those imposed by
applicable legislative or regulatory requirements, including the provisions of
section 409A of the Code to the extent applicable.  Any performance-based equity compensation
awards granted to Executive by the Company under the Equity Plan and
outstanding as of the date of the Change in Control will become fully vested at
a rate determined under the Equity Plan as if the target performance measures
were met and will be settled at the time of such Change in Control, subject to
applicable legislative or regulatory requirements, including the provisions of
section 409A of the Code to the extent applicable.

 

7

 

SECTION 4:  SECTION 280G

 

(a)                              Adjustment
for 280G Excise Tax.  In the
event payments to Executive pursuant to this Agreement (when considered with
all other payments made to Executive as a result of a Change in Control that
are subject to section 280G of the Code) (the amount of all such payments,
collectively, the “Parachute Payment”)
results in Executive becoming liable for the payment of any excise taxes
pursuant to section 4999 of the Code, together with any interest or penalties
with respect to such excise tax (“280G Excise Tax”),
then the Company will automatically reduce (the “Reduction”)
Executive’s Parachute Payment to the minimum extent necessary to prevent the
Parachute Payment (after the Reduction) from being subject to the Excise Tax,
but only if, by reason of the Reduction, the after-tax benefit of the reduced
Parachute Payment exceeds the after-tax benefit if such Reduction were not
made.  If the after-tax benefit of the
reduced Parachute Payment does not exceed the after-tax benefit if the
Parachute Payment is not reduced, then the Reduction will not apply.  If the Reduction is applicable, the Parachute
Payment will be reduced in such a manner that provides Executive with the best
economic benefit and, to the extent any portions of the Parachute Payment are
economically equivalent with each other, each will be reduced pro rata.

 

(b)                                  Determination
of Adjustment.  All
determinations required to be made under Section 4(a), including the
after-tax benefit and calculation of the Reduction, will be made by a
nationally recognized certified public accounting firm that is selected by the
Company (the “Accounting Firm”), which may be
the Company’s independent auditors.  In
the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control or the Accounting
Firm declines or is unable to serve, Executive will appoint another nationally
recognized certified public accounting firm, which is reasonably agreed to by
the Company, to make the determinations required hereunder (which accounting
firm will then be referred to as the Accounting Firm hereunder).  In the event that the Accounting Firm
determines that no Excise Tax is payable by Executive, either with or without
application of the Reduction under Section 4(a), then the Accounting Firm
will furnish Executive with a written opinion that failure to report the Excise
Tax on Executive’s applicable federal income tax return would not result in the
imposition of a negligence or similar penalty. 
If the Reduction is applicable, the Company will provide Executive with
a written summary of the portions of the Parachute Payment that will be
reduced.  All fees and expenses of the
Accounting Firm will be borne solely by the Company.   All determinations by the Accounting Firm
made under this Section 4(b) will be binding upon the Company and
Executive.

 

SECTION 5:  INDEMNIFICATION

 

THE COMPANY WILL, TO THE
FULLEST EXTENT PERMITTED BY LAW, INDEMNIFY AND HOLD HARMLESS EXECUTIVE
FROM AND AGAINST ANY AND ALL LIABILITY, COSTS AND DAMAGES ARISING FROM
EXECUTIVE’S SERVICE AS AN EMPLOYEE, OFFICER OR DIRECTOR OF THE COMPANY OR ITS
AFFILIATES, SPECIFICALLY INCLUDING LIABILITY, COSTS AND DAMAGES THAT ARISE IN
WHOLE OR IN PART FROM ANY NEGLIGENCE OR ALLEGED NEGLIGENCE OF EXECUTIVE,
EXCEPT, HOWEVER, TO THE EXTENT THAT ANY SUCH LIABILITY, COST OR DAMAGE RESULTED
FROM AN ACT OR OMISSION BY EXECUTIVE THAT CONSTITUTES GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT ON EXECUTIVE’S PART. 
The Company will provide directors’ and officers’ liability insurance
that will cover Executive’s actions in the course and scope of Executive’s
duties on behalf of the 

 

8

 

Company or its Affiliates as
well as any contractual indemnification provided to other executives at his or
her level at any given time. To the fullest extent permitted by Texas law, in
connection with any litigation or proceeding related to Executive’s actions in
the course and scope of Executive’s duties on behalf of the Company or its
Affiliates, the Company will either (a) retain counsel to defend Executive
or (b) reimburse Executive for legal fees and expenses for counsel
selected by Executive, twenty (20) days after receipt by the Company of a
written request for reimbursement, which request will include an itemized list
of the fees and expenses incurred. 
Before the Company retains counsel or reimburses Executive under this Section 5,
Executive must agree in writing in a form acceptable to the Company to
reimburse the  Company for all amounts
paid under this Section 5 if it is ultimately determined that Executive is
not entitled to be indemnified for such fees 
and expenses.  This Section 5
will be in addition to, and will not limit in any way, the rights of Executive
to any other indemnification from the Company, as a matter of law, contract or
otherwise.

 

Notwithstanding the
preceding paragraph, the Company’s indemnification and hold harmless
obligations hereunder will not apply to the extent Executive is required to
repay any amounts to the Company pursuant to federal legislation or a generally
applicable clawback policy adopted by the Company.

 

SECTION 6:  CONFIDENTIALITY

 

Executive
acknowledges that pursuant to this Agreement, the Company agrees to provide
Executive Confidential Information regarding the Company and the Company’s
business and has previously provided him or her other such Confidential
Information.  In return for this and
other consideration, provided under this Agreement, Executive agrees that he or
she will not, while employed by the Company and thereafter, disclose or make
available to any other person or entity, or use for his or her own personal
gain, any Confidential Information, except for such disclosures as required in
the performance of Executive’s duties hereunder as may otherwise be required by
law or legal process (in which case Executive will notify the Company of such
legal or judicial proceeding as soon as practicable following Executive’s
receipt of notice of such a proceeding, and permit the Company to seek to
protect its interests and information). 
For purposes of this Agreement, “Confidential Information”
means any and all information, data and knowledge that has been created,
discovered, developed or otherwise become known to the Company or any of its
Affiliates, Subsidiaries or ventures or in which
property rights have been assigned or otherwise conveyed to the Company or any
of its Affiliates, Subsidiaries or ventures, which information, data or
knowledge has commercial value in the business in which the Company is engaged,
except such information, data or knowledge as is or becomes known to the public
without violation of the terms of this Agreement.  By way of illustration, but not limitation,
Confidential Information includes business trade secrets, secrets concerning
the Company’s plans and strategies, nonpublic information concerning material
market opportunities, technical trade secrets, processes, formulas, know-how,
improvements, discoveries, developments, designs, inventions, techniques,
marketing plans, manuals, records of research, reports, memoranda, computer
software, strategies, forecasts, new products, unpublished financial
information, projections, licenses, prices, costs, and employee, customer and
supplier lists or parts thereof.

 

SECTION 7:  RETURN OF PROPERTY

 

Executive
agrees that at the time of leaving the Company’s employ, Executive will deliver
to the Company (and will not keep in Executive’s possession, recreate or deliver
to anyone else) all Confidential Information as well as all other devices,
records, data, notes, reports, proposals, 

 

9

 

lists,
correspondence, specifications, drawings, blueprints, sketches, materials, equipment,
customer or client lists or information, or any other documents or property
(including all reproductions of the aforementioned items) belonging to the
Company or any of its Affiliates, Subsidiaries or ventures, regardless of
whether such items were prepared by Executive.

 

SECTION 8:  NON-SOLICITATION AND NON-COMPETITION AND
NONDISPARAGEMENT

 

(a)                                  Non-Solicitation.  In return for the consideration provided
under this Agreement, including, but not limited to the Company’s agreement to
provide Executive with Confidential Information (as defined in Section 6)
regarding the Company and the Company’s business, Executive agrees that while
employed by the Company and for one (1) year following a Qualifying
Termination Executive will not, without the prior written consent of the
Company, directly or indirectly, (i) hire or induce, entice or solicit (or
attempt to induce, entice or solicit) any employee of the Company or any of its
Subsidiaries, Affiliates or ventures to leave the employment of the Company or
any of its Subsidiaries, Affiliates or ventures or (ii) solicit or attempt
to solicit the business of any customer or acquisition prospect of the Company
or any of its Affiliates or ventures with whom Executive had any actual contact
while employed at the Company.

 

(b)                                 Non-Competition.  Additionally, in return for the consideration
provided under this Agreement, including, but not limited to the Company’s
agreement to provide Executive with Confidential Information regarding the
Company and the Company’s business, Executive agrees that while employed by the
Company and for one (1) year following a Qualifying Termination Executive
will not, without the prior written consent of the Company, acting alone or in
conjunction with others, either directly or indirectly, engage in any business
that is in competition with the Company or accept employment with or render
services to such a business as an officer, agent, employee, independent
contractor or consultant, or otherwise engage in activities that are in competition
with the Company.

 

(c)                                  Geographic
Restrictions.  The
restrictions contained in this Section 8 are limited to the geographic
areas in which Executive performed duties on behalf of the Company or about
which Executive possessed Confidential Information during the twelve (12)
months prior to Executive’s Qualifying Termination.

 

(d)                                 Nondisparagement.  Executive agrees that Executive will not
disparage the Company, the Board, the Company’s executives, the Company’s
employees and the Company’s products or services during the term of this
Agreement and thereafter.  The Company
likewise agrees that it will not disparage Executive during the term of this
Agreement and thereafter.  For purposes
of this Section 8(d), disparagement does not include (i) compliance with
legal process or subpoenas to the extent only truthful statements are rendered
in such compliance attempt, (ii) statements in response to an inquiry from
a court or regulatory body, or (iii) statements or comments in rebuttal of
media stories.

 

(e)                                  Forfeiture Provision. If Executive
violates any of the covenants and restrictions contained in this Section 8
or the confidentiality provisions of Section 6, Executive must pay to the
Company the full amount of the severance benefits received by Executive pursuant
to Section 2 (other than Section 2(b)) or such lesser amount as
determined to be the maximum reasonable and enforceable amount by a court or
arbitrator.  The provisions of this Section 8(e) are
in addition to any forfeiture provisions of other Company plans, programs or
agreements applicable to Executive. 
Executive specifically 

 

10

 

recognizes
and affirms that this Section 8 is a material part of this Agreement
without which the Company would not have entered into this Agreement.  Executive further covenants and agrees that
if all or any part or application of this Section 8 is held or found
invalid or unenforceable for any reason whatsoever by a court of competent
jurisdiction or arbitrator in an action between Executive and the Company, then
Executive will promptly pay to the Company the amount of the severance benefits
received by Executive pursuant to Section 2, or such lesser amount as is
determined to be the maximum reasonable and enforceable amount by a court or
arbitrator, as applicable.

 

(f)                                    Reasonableness
of Restrictions.  Executive
acknowledges that these restrictive covenants under this Agreement, for which
Executive received valuable consideration from the Company as provided in this
Agreement, including, but not limited to the Company’s agreement to provide
Executive with Confidential Information regarding the Company and the Company’s
business are ancillary to otherwise enforceable provisions of this Agreement
that the consideration provided by the Company gives rise to the Company’s
interest in restraining Executive from competing and that the restrictive
covenants are designed to enforce Executive’s consideration or return promises
under this Agreement.  Additionally,
Executive acknowledges that these restrictive covenants contain limitations as
to time, geographical area, and scope of activity to be restrained that are
reasonable and do not impose a greater restraint than is necessary to protect
the goodwill or other legitimate business interests of the Company, including,
but not limited to, the Company’s need to protect its Confidential Information.

 

(g)                                 Enforcement and Remedies.  Should a court of competent jurisdiction or
arbitrator find that the restrictive covenants are unreasonable, Executive and
the Company agree that the court or arbitrator will revise the restrictive
covenants to restrict Executive’s activities for the maximum period, scope or
geographic area permitted by law. 
Because Executive’s services are unique and due to Executive’s receipt
of the Confidential Information, Executive and the Company agree that the
Company would suffer imminent, irreparable harm from a breach of this Section 8
as well as the non-disclosure provisions of Section 6 and monetary damages
would not provide an adequate remedy for a breach of Sections 6 and 8.  Therefore, in the event of a breach or
threatened breach, the Company is entitled to specific performance, injunctive
relief and/or equitable relief from a court of competent jurisdiction in order
to enforce this Agreement and prevent a breach of Sections 6 and 8 of this
Agreement.

 

SECTION 9:  CONFLICTS WITH OTHER AGREEMENTS

 

In
the event that Executive becomes entitled to benefits under a prior or
subsequent agreement pertaining to Executive’s employment by the Company or any
Subsidiary or Affiliate (other than this Agreement) or the benefits to which
Executive is entitled as a result of such employment and such benefits conflict
with the terms of this Agreement, Executive will receive the greater and more
favorable of each of the benefits provided under either this Agreement or such
other agreement or benefits, on an individual benefit basis, provided, however, that any such other conflicting payment
is payable under its terms in the same calendar year and in the same form as
the corresponding benefit payable under this Agreement.

 

11

 

SECTION 10:  NOTICES

 

For
purposes of this Agreement, notices and all other communications provided for
herein will be in writing and will be deemed to have been duly given when
personally delivered or when mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

	
  If to Company:

  	
   

  	
  Fluor
  Corporation

  
	
   

  	
   

  	
  6700
  Las Colinas Boulevard

  
	
   

  	
   

  	
  Irving,
  Texas 75039

  
	
   

  	
   

  	
  Attention:

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  [NAME]

  
	
   

  	
   

  	
  [ADDRESS]

  
	
   

  	
   

  	
  [CITY,
  STATE, ZIP]

  

 

or
to such other address as either party may furnish to the other in writing in
accordance herewith, except that notices of changes of address will be
effective only upon receipt.

 

SECTION 11:  LITIGATION ASSISTANCE

 

Executive
agrees to assist the Company with any litigation matters related to the Company
or any of its Subsidiaries or Affiliates as may be reasonably requested by the
Company’s Chief Legal Officer following the date of Executive’s Qualifying
Termination.  The Company will reimburse
Executive for any reasonable travel or other business expenses incurred in
connection with providing such assistance and cooperation.  Executive will provide such services as an
independent contractor and such services will be limited solely to those
matters with which Executive is suitably experienced and knowledgeable by
reason of Executive’s education, training, background and prior employment with
the Company.  The Company and Executive
agree to work out reasonable accommodations for the provision of such
assistance so that it does not unreasonably interfere with any of Executive’s
personal affairs, business endeavors or future employment.  The Company and Executive agree that the
services provided by Executive under this Section 11, if any, will not
exceed twenty percent (20%) of the average level of bona fide services
performed by Executive (whether as an employee or an independent contractor of
the Company) over the thirty-six (36) month period (or the full period of
services to the Company if Executive has been providing services to the Company
for less than thirty-six (36) months) immediately preceding Executive’s
Qualifying Termination date.

 

SECTION 12:  PRIOR AGREEMENTS/MODIFICATION

 

This
Agreement contains the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements or understandings,
whether written or oral, between the parties with respect thereto.  This Agreement may be amended by an agreement
in writing signed by the parties hereto; provided, however,
that, in addition, (i) Executive’s Compensation may be increased at any
time by the Company without in any way affecting any of the other terms and
conditions of this Agreement which in all other respects will remain in full
force and effect, (ii) the Company may amend this Agreement upon written
notice to Executive in order to comply with or minimize the adverse impact of
changes in the law (including, without limitation, the avoidance of new
regulatory requirements applicable to welfare benefits), provided that the economic
benefits of this Agreement as so amended are maintained to the extent
reasonably practicable and (iii) the Company may amend this Agreement
without the 

 

12

 

consent
of Executive upon written notice to Executive, provided that the amendment is
not effective until at least one year after it is communicated to Executive and
a Change in Control has not occurred prior to the effective date of the
amendment.  The provisions of this
Agreement will be binding upon, and will inure to the benefit of, the
respective heirs, legal representatives and successors of the parties
hereto.  Executive represents to the
Company that he or she is not a party to any agreement or subject to any legal
restriction that would prevent him or her from fulfilling his or her duties
hereunder.

 

SECTION 13:  SECTION 409A

 

It
is the intent of the parties that the provisions of this Agreement comply with,
or satisfy an exemption from, section 409A of the Code, as specified
below.  Accordingly, the parties intend
that this Agreement be interpreted and operated consistent with such
requirements of section 409A in order to avoid the application of penalty taxes
under section 409A to the extent reasonably practicable.  The Company will neither cause nor
permit:  (a) any payment, benefit or
consideration to be substituted for a benefit that is payable under this
Agreement if such action would result in the failure of any amount that is
subject to section 409A of the Code to comply with the applicable requirements
of section 409A of the Code; or (b) any adjustments to any equity interest
to be made in a manner that would result in the equity interest becoming
subject to section 409A of the Code unless, after such adjustment, the equity
interest is in compliance with the requirements of section 409A of the Code to
the extent applicable.

 

Notwithstanding
any provision of this Agreement to the contrary, if Executive is a “Specified
Employee” within the meaning of section 409A of the Code as of Executive’s
Qualifying Termination date, then any amounts or benefits which are payable
under this Agreement upon Executive’s “Separation from Service” (within the
meaning of section 409A), other than due to death, which are subject to the
provisions of section 409A and not otherwise excluded under section 409A, and
would otherwise be payable during the first six (6)-month period following such
Separation from Service, will be paid on the day that is (a) six (6) months
and one (1) day after the date after Executive’s Qualifying Termination
date or (b) follows Executive’s date of death, if earlier.

 

The
cash severance benefits in Section 2(a), the accrued obligations under Section 2(b),
the pro-rata earned bonus under Section 2(c), the welfare benefit coverage
under Section 2(d), the outplacement services under Section 2(e) and
the Target Bonus payout under Section 3 are excluded from section
409A.  The legal expense provision under Section 2(f) (and
the welfare benefit coverage under Section 2(d) if deemed to be
subject to section 409A) are intended to qualify as eligible reimbursement
arrangements under Treasury Regulation § 1.409A-3(i)(1)(iv) and will be
reimbursed in accordance with the requirements of such regulation such that any
reimbursements will be deemed payable at a specified time or on a fixed
schedule relative to a permissible payment event.  The equity compensation provided pursuant to Section 2(g) and
retention awards provided pursuant to Section 2(h) are subject to
section 409A of the Code to the extent provided under the applicable Equity
Plan or retention award agreement, as applicable.

 

SECTION 14:  APPLICABLE LAW

 

The
validity, interpretation, construction and performance of this Agreement will
be governed by and construed in accordance with the substantive laws of the
State of Texas, including the Texas statute of limitations, but without giving
effect to the principles of conflict of laws of such State.

 

13

 

SECTION 15:  SEVERABILITY

 

If
a court of competent jurisdiction determines that any provision of this
Agreement is invalid or unenforceable, then the invalidity or unenforceability
of that provision will not affect the validity or enforceability of any other
provision of this Agreement and all other provisions will remain in full force
and effect.

 

SECTION 16:  WITHHOLDING OF TAXES

 

The
Company may withhold from any benefits payable under this Agreement all
federal, state, city or other taxes as may be required pursuant to any law or
governmental regulation or ruling.

 

SECTION 17:  NO EMPLOYMENT AGREEMENT

 

Nothing
in this Agreement changes the at will nature of Executive’s employment, nor
will it give Executive any rights to (or impose any obligations for) continued
employment by the Company (or any Affiliate or Subsidiary) or successor
thereto, nor will it give the Company any rights (or impose any obligations)
with respect to continued performance of duties by Executive for the Company
(or any Affiliate or Subsidiary) or successor thereto.

 

SECTION 18:  NO ASSIGNMENT; SUCCESSORS

 

Executive’s
right to receive payments or benefits hereunder will not be assignable or
transferable, whether by pledge, creation of a security interest or otherwise,
whether voluntary, involuntary, by operation of law or otherwise, other than a
transfer by will or by the laws of descent or distribution, and in the event of
any attempted assignment or transfer contrary to this Section 18, the
Company will have no liability to pay any amount so attempted to be assigned or
transferred.  This Agreement will inure
to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 

This
Agreement will be binding upon and inure to the benefit of the Company, its
successors and assigns (including, without limitation, any company into or with
which the Company may merge or consolidate). 
The Company agrees that it will not effect the sale or other disposition
of all or substantially all of its assets unless either (a) the person or
entity acquiring such assets or a substantial portion thereof will expressly
assume by an instrument in writing all duties and obligations of the Company
hereunder or (b) the Company will provide, through the establishment of a
separate reserve therefor, for the payment in full of all amounts which are or
may reasonably be expected to become payable to Executive hereunder.

 

SECTION 19:  PAYMENT OBLIGATIONS ABSOLUTE

 

Except
for the requirement of Executive to execute and return to the Company a Waiver
and Release in accordance with Section 2, the Company’s obligation to pay
(or cause one of its Affiliates or  Subsidiaries
to pay) Executive the amounts and to make the arrangements provided herein will
be absolute and unconditional and will not be affected by any circumstances,
including, without limitation, any set off, counter claim, recoupment, defense
or other right which the Company (including its Affiliates and Subsidiaries)
may have against Executive or anyone else. 
All amounts payable by the Company (including its Affiliates and
Subsidiaries hereunder) will be paid without notice or demand.  Executive will not be obligated to seek other
employment in mitigation of the amounts payable or arrangements made under any
provision of this 

 

14

 

Agreement,
and, subject to the restrictions in Section 8, the obtaining of any other
employment will in no event affect any reduction of the Company’s obligations
to make (or cause to be made) the payments and arrangements required to be made
under this Agreement.

 

SECTION 20:  NUMBER AND GENDER

 

Wherever
appropriate herein, words used in the singular will include the plural and the
plural will include the singular.  The
masculine gender where appearing herein will be deemed to include the feminine
gender.

 

SECTION 21:  DISPUTE RESOLUTION

 

Executive
has the right and option to elect (in lieu of litigation) to have any dispute
or controversy arising under or in connection with this Agreement settled by
arbitration conducted pursuant to the JAMS Employment Arbitration Rules &
Procedures.

 

The
arbitrator will be mutually selected by Executive and the Company from a list
of arbitrators who are experienced in change in control benefit matters that is
provided by JAMS.  If the parties are
unable to agree on the selection of an arbitrator within ten (10) days of
receiving the list from JAMS, JAMS will appoint an arbitrator.  The arbitrator’s review will be limited to
interpretation of this Agreement in the context of the particular facts
involved.  Executive and the Company
agree to accept the award of the arbitrator as binding, and all exercises of
power by the arbitrator hereunder will be final, conclusive and binding on all
interested parties, unless found by a court of competent jurisdiction, in a
final judgment that is no longer subject to review or appeal, to be arbitrary
and capricious.  Executive and the
Company agree that the venue for the arbitration will be in Dallas, Texas.  The costs of arbitration will be paid by the
Company; the costs of legal representation for Executive or witness costs for
Executive will be borne by Executive; provided, that, as part of his or her
award, the arbitrator may require the Company to reimburse the claimant for all
or a portion of such amounts.

 

The
following discovery may be conducted by the parties: interrogatories, demands
to produce documents, requests for admissions and oral depositions.  The arbitrator will resolve any discovery
disputes by such pre-hearing conferences as may be needed.  The Company and Executive agree that the
arbitrator will have the power of subpoena process as provided by law.  Disagreements concerning the scope of
depositions or document production, its reasonableness and enforcement of
discovery requests will be subject to agreement by the Company and Executive or
will be resolved by the arbitrator.  All
discovery requests will be subject to the proprietary rights and rights of
privilege and other protections granted by applicable law to the Company and
Executive and the arbitrator will adopt procedures to protect such rights.  With respect to any dispute, the Company and
Executive agree that all discovery activities will be expressly limited to
matters directly relevant to the dispute and the arbitrator will be required to
fully enforce this requirement.

 

The
arbitrator will have no power to add to, subtract from, or modify any of the
terms of this Agreement, or to change or add to any benefits provided by this
Agreement, or to waive or fail to apply any requirements of eligibility for a
benefit under this Agreement. 
Nonetheless, the arbitrator will have absolute discretion in the
exercise of its powers under this Agreement. 
Arbitration decisions will not establish binding precedent with respect
to the administration or operation of this Agreement.  Judgment may be entered on the award of the
arbitrator in any court having jurisdiction.

 

15

 

SECTION 22:  TERM

 

The
term of this Agreement will commence on the Effective Date and will end on the
last day of the two (2) year period following a Change in Control; provided, however, that if, prior to a Change in Control,
Executive ceases for any reason to be an employee of the Company, then the term
will, without further action, expire, and this Agreement will terminate, as of
such termination date; provided, further, that if Executive exercises his or
her rights under this Agreement prior to the end of the two (2) year
period following a Change in Control, this Agreement will continue for so long
as any actions are being taken by Executive, within the terms of the Agreement,
to enforce his or her rights hereunder .

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be
executed effective as of the Effective Date.

 

	
   

  	
  FLUOR
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME]

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

16

 

ATTACHMENT A

 

WAIVER AND RELEASE

 

In
exchange for the payment to me of the Severance Benefits described in Section 2
of the Change in Control Agreement between Fluor Corporation and me effective
as of                 ,
20     (the “Agreement”),
which I understand is incorporated herein by reference, and of other
remuneration and consideration provided for in the Agreement (the “Separation Benefits”), which is in addition to any
remuneration or benefits to which I am already entitled, I agree to waive
all of my claims against and release (i) Fluor Corporation and its
predecessors, successors and assigns (collectively referred to as the “Company”), (ii) all of the affiliates (including all
parent companies and all wholly or partially owned subsidiaries) of the Company
and their directors, officers, employees, agents, insurers, predecessors,
successors and assigns (collectively referred to as the “Affiliates”),
and (iii) the Company’s and its Affiliates’ employee benefit plans and the
fiduciaries and agents of said plans (collectively referred to as the “Benefit Plans”) from any and all claims, demands, actions,
liabilities and damages arising out of or relating in any way to my employment
with or separation from employment with the Company and its Affiliates other
than amounts due pursuant to Section 2 or Section 3 of the Agreement
and rights and benefits I am entitled to under the Benefit Plans.  (The Company, its Affiliates and the Benefit
Plans are sometimes hereinafter collectively referred to as the “Released Parties.”)

 

I
understand that signing this Waiver and Release is an important legal act.  I acknowledge that I am hereby advised in
writing to consult an attorney before signing this Waiver and Release.  I understand that, in order to be eligible
for the Separation Benefits, I must sign (and return to the Company) this
Waiver and Release.  I acknowledge that I
have been given at least [21] days to consider whether to accept the Separation
Benefits and therefore execute this Waiver and Release.

 

In
exchange for the payment to me of the Separation Benefits, (1) I agree not
to pursue a legal claim in any local, state and/or federal court regarding or
relating in any way to my employment with or separation from employment with
the Company and its Affiliates, and (2) I knowingly and voluntarily waive
all claims and release the Released Parties from any and all claims, demands,
actions, liabilities, and damages, whether known or unknown, arising out of or
relating in any way to my employment with or separation from employment with
the Company and its Affiliates, except to the extent that my rights are vested
under the terms of any employee benefit plans sponsored by the Company and its
Affiliates and except with respect to such rights or claims as may arise after
the date this Waiver and Release is executed.

 

This
Waiver and Release includes, but is not limited to, claims and causes of action
under:  Title VII of the Civil Rights Act
of 1964, as amended; the Age Discrimination in Employment Act of 1967, as
amended, including the Older Workers Benefit Protection Act of 1990; the Civil
Rights Act of 1866, as amended; the Civil Rights Act of 1991; the Americans
with Disabilities Act of 1990; the Workers Adjustment and Retraining
Notification Act of 1988; the Pregnancy Discrimination Act of 1978; the
Employee Retirement Income Security Act of 1974, as amended; the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended; the Family and Medical
Leave Act of 1993; the Fair Labor Standards Act; the Occupational Safety and
Health Act; the Texas Labor Code §21.001 et. seq.; the Texas Labor Code; claims
in connection with workers’ compensation, retaliation or “whistle blower”
statutes; and/or contract, tort, defamation, slander, wrongful termination or
any other state or federal regulatory, statutory 

 

17

 

or
common law.  Notwithstanding the above, I
further acknowledge that I am not waiving and am not being required to waive
any right that cannot be waived under law (including, without limitation, the
right to file an administrative charge or participate in an administrative
investigation or proceeding); provided that I disclaim and waive any right to
share or participate in any monetary award resulting from the prosecution of
such charge or investigation or proceeding.

 

Further, I
expressly represent that no promise or agreement which is not expressed in this
Waiver and Release has been made to me in executing this Waiver and Release,
and that I am relying on my own judgment in executing this Waiver and Release,
and that I am not relying on any statement or representation of the Company or
its Affiliates or any of their agents.  I
agree that this Waiver and Release is valid, fair, adequate and reasonable, is
made with my full knowledge and consent, was not procured through fraud, duress
or mistake and has not had the effect of misleading, misinforming or failing to
inform me.  I acknowledge and agree that
the Company will withhold the minimum amount of any taxes required by federal
or state law from the Separation Benefits otherwise payable to me.

 

Notwithstanding
the foregoing, I do not release and expressly retain (a) all rights
to indemnity, contribution, and defense, and directors and officers and other
liability coverage that I may have under any statute, the bylaws of the Company
or by other agreement; and (b) the right to any, unpaid reasonable
business expenses and any accrued benefits payable under any Company welfare
plan or tax-qualified plan.

 

I
acknowledge that payment of the Separation Benefits is not an admission by any
one or more of the Released Parties that they engaged in any wrongful or
unlawful act or that they violated any federal or state law or regulation.  I acknowledge that neither the Company nor
its Affiliates has promised me continued employment or represented to me that I
will be rehired in the future.  I
acknowledge that my employer and I contemplate an unequivocal, complete and
final dissolution of my employment relationship.  I acknowledge that this Waiver and Release
does not create any right on my part to be rehired by the Company or its
Affiliates, and I hereby waive any right to future employment by the Company or
its Affiliates.

 

I
understand that for a period of seven (7) calendar days following the date
that I sign this Waiver and Release, I may revoke my acceptance of this
Waiver and Release, provided that my written statement of revocation is
received on or before that seventh day by [Name and/or Title],
[address], facsimile number:                             ,
in which case the Waiver and Release will not become effective.  If I timely revoke my acceptance of this
Waiver and Release, the Company will have no obligation to provide the
Separation Benefits to me.  I understand
that failure to revoke my acceptance of the offer within seven (7) calendar
days from the date I sign this Waiver and Release will result in this Waiver
and Release being permanent and irrevocable.

 

Should
any of the provisions set forth in this Waiver and Release be determined to be
invalid by a court, agency or other tribunal of competent jurisdiction, it is
agreed that such determination will not affect the enforceability of other
provisions of this Waiver and Release.  I
acknowledge that this Waiver and Release sets forth the entire understanding
and agreement between me and the Company and its Affiliates concerning the
subject matter of this Waiver and Release and supersede any prior or
contemporaneous oral and/or written agreements or representations, if any,
between me and the Company or its Affiliates.

 

18

 

I
acknowledge that I have read this Waiver and Release, have had an opportunity
to ask questions and have it explained to me, am signing this Waiver and
Release knowingly and voluntarily and with the advice of any attorney I have
retained to advise me with respect to it, and that I understand that this
Waiver and Release will have the effect of knowingly and voluntarily waiving
any action I might pursue, including breach of contract, personal injury,
retaliation, discrimination on the basis of race, age, sex, national origin, or
disability and any other claims arising prior to the date of this Waiver and
Release.

 

I
represent that I am not aware of any claim by me other than the claims that are
released in this Waiver and Release.  By
execution of this document, I do not waive or release or otherwise
relinquish any legal rights I may have which are attributable to or arise out
of acts, omissions, or events of the Company or its Affiliates which occur
after the date of the execution of this Waiver and Release.

 

 

	
   

  	
   

  
	
  Executive’s
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executive’s
  Printed Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executive’s
  Signature Date

  	
   

  

 

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]