SEC Contract Filing

Filing Date: 2020-12-10

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>flr2020q3ex103.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<div><a name="s2D5397580869313697152EB9A0B59976"></a></div><div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Exhibit 10.3</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">FORM OF PERFORMANCE AWARD AGREEMENT</font></div><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;">This Performance Award Agreement (&#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Agreement</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;) entered into as of [GRANT DATE] (the &#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Grant Date</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;), by and between Fluor Corporation, a Delaware corporation (the &#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Company</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;), and you (&#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Grantee</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221; or &#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">you</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;) evidences the grant to Grantee of a Performance Award (&#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Performance Award</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;) under the Fluor Corporation 2017 Performance Incentive Plan (the &#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Plan</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;). Capitalized terms used in this Agreement and not defined herein have the meaning set forth in the Plan.</font></div><div style="line-height:120%;padding-top:16px;text-align:left;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Section 1.&#160;&#160;&#160;&#160;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;text-decoration:underline;">AWARD SUBJECT TO PLAN</font></div><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;">Your Performance Award is granted subject to all of the terms and conditions of this Agreement and the Plan, including any terms, rules or determinations made by the Committee pursuant to its administrative authority under the Plan, and such further terms as are set forth in the Plan that are applicable to awards thereunder, including without limitation provisions on adjustment of awards, non-transferability, satisfaction of tax requirements and compliance with other laws. </font></div><div style="line-height:120%;padding-top:16px;text-align:left;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Section 2.&#160;&#160;&#160;&#160;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;text-decoration:underline;">MEASURE DEFINITIONS</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">&#32;</font></div><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;">Your Performance Award performance criteria are comprised of two measures: Return on Invested Capital (&#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">ROIC</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;) and Earnings Per Share (&#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">EPS</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;, and together with ROIC, the &#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Performance Targets</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;), averaged over a three-year performance period beginning on January 1, [GRANT YEAR] and ending on December 31, [END OF THREE-YEAR PERIOD] (the &#8220;</font><font style="font-family:Arial Narrow;font-size:10pt;font-weight:bold;">Performance Period</font><font style="font-family:Arial Narrow;font-size:10pt;">&#8221;). ROIC is calculated by dividing full year corporate net earnings attributable to Fluor Corporation from continuing operations (excluding after-tax net interest) by Net Invested Capital. Net Invested Capital is defined as total shareholders&#8217; equity (excluding accumulated other comprehensive income) plus total external long and short-term debt (excluding non-recourse debt) minus cash, current and non-current marketable securities in excess of US $1.0 billion. ROIC is calculated based on the average Net Invested Capital reported for the previous five quarters. EPS represents diluted earnings per share attributable to Fluor Corporation from continuing operations.</font></div><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial Narrow;font-size:10pt;">The Performance Targets ma