Retirement Plan for Outside Directors - Fluor Corp.
RETIREMENT PLAN FOR OUTSIDE DIRECTORS
SUMMARY OF TERMS
Eligibility Outside Directors of Fluor Corporation who have not
previously served in the management of the Company or a
subsidiary, and who have served as a Director for a
total of six years, (i.e., the equivalent of two three
year terms) are eligible for retirement payments.
Payment Amount An annual amount equivalent to the annual base retainer
in effect at the time of the Director's retirement.
This is currently $30,000 per year. Excluded are
meeting fees, Committee Chairman retainers, etc.
Payment Period The annual amount will be payable quarterly beginning
at the age specified for retirement from the Board in
the Bylaws, (i.e., age 72). Payments will continue for
the life of the Director but not to exceed the number
of years of the Director's prior Board service.
Early Retirement An Outside Director who leaves the Board prior to the
age for Board retirement may, with the approval of the
Executive Committee, receive benefits beginning at the
age for Board retirement, continuing thereafter for
life, not to exceed the period of prior Board service.
Disability In the event of total disability while a Board member,
Outside Directors with six or more years Board service
are eligible to receive the retirement benefit
thereafter during the life of the Director, not to
exceed the period of prior Board service.
Death If the Director is survived by his spouse, benefits
shall continue to his spouse for two years beyond the
Director's death, not to exceed pre and post death
payments equivalent to the Director's total Board
Administration The Plan is administered by the Executive Committee of
the Board of Directors of Fluor Corporation
Effective Date The Plan is effective May 1, 1992.
RETIREMENT PLAN FOR OUTSIDE DIRECTORS
1.1 Plan. This Plan is established by Fluor Corporation for the
benefit of Outside Directors of the Board of Fluor Corporation who retire from
the Board at any time on or after the Effective Date and meet the eligibility
requirements for becoming a Participant under the Plan.
1.2 Authority. The Plan shall be maintained according to the terms
of this document, as it may be amended from time to time. The Executive
Committee of the Board shall have the sole authority to amend the Plan and to
resolve any dispute with respect to the interpretation and administration of the
Plan. The Plan shall be administered and interpreted by the Executive Committee.
2.1 Definitions. When used in this document, the following terms
shall have the meaning assigned to them, unless the context clearly indicates
(a) Company means Fluor Corporation.
(b) Board means the board of directors of the Company.
(c) Executive Committee means the Executive Committee of the
Board of the Company.
(d) Outside Director means a member of the Board who is
neither a current nor a former management employee of the Company or
any subsidiary of the Company.
(e) Participant means an Outside Director who becomes
eligible for retirement benefit payments under the Plan.
(f) Age for Board Retirement means the age for mandatory
retirement of members of the Board as specified
in the Bylaws of the Company, as applied to Outside Directors on the
date of such Outside Directors' retirement from the Board.
(g) Plan means the Fluor Corporation Retirement Plan for
Outside Directors, as set forth in this document and as amended from
time to time.
(h) Effective Date means May 1, 1992.
3.1 Eligibility. Commencing at the time each of the following
requirements have been met, an Outside Director shall become a Participant under
the Plan and eligible to receive retirement benefit payments:
(a) Completion of at least six (6) years of service as an Outside
(b) Either attains the Age for Board Retirement while serving as
an Outside Director, or becomes permanently and totally disabled as
defined in applicable Company personnel policies while serving as an
Outside Director; and
(c) Retires from the Board.
3.2 Payment. Payments to Participants shall be made quarterly on the
dates corresponding to the dates on which quarterly installments of the annual
retainer are made to Outside Directors.
3.3 Amount. A Participant's quarterly payment as specified in Section
3.2 shall be an amount equal to one-fourth of the annual directors' retainer
(exclusive of meeting fees or committee chairmen's retainers) for Outside
Directors prevailing at the time the Participant retires from the Board.
3.4 Period of Payments. A Participant shall be entitled to receive the
payments specified in Section 3.3 for the life of the Participant, but not to
exceed the period equal to the Participant's Board service as an Outside
3.5 Early Retirement. An Outside Director who has served at least six
years and who leaves the Board prior to the Age for Board Retirement, may, upon
application to and in the discretion of the Executive Committee, be granted
early retirement status. With early retirement status the Outside
Director shall become a Participant upon attainment of the Age for Board
Retirement and thereafter be entitled to quarterly payments as specified in
Section 3.3, calculated as of the date of departure from the Board, for the
period specified in Section 3.4.
3.6 Deferred Compensation Plan. Nothing in this Plan shall affect
eligibility for or benefits under the Company's Deferred Directors Fee Plan or
any other deferred fee plan maintained by the Company.
3.7 Forfeiture of Benefits. All benefits not yet paid for which an
Outside Director would be otherwise eligible under this Plan shall be forfeited
in the event that the Executive Committee determines that any of the following
circumstances has occurred:
(a) The Outside Director has engaged in knowing and willful
misconduct in connection with his or her service as a director; or
(b) The Outside Director, without the consent of the Executive
Committee, at any time during or after his or her period of Board
service, is employed by, becomes a principal of, serves as a director
of, or owns a material interest in, any business which either directly
or through any controlled subsidiary competes with the Company or any
subsidiary of the Company.
3.8 Surviving Spouse.
(a) The surviving spouse of an Outside Director with at least six
years Board service but who is not a Participant in the Plan shall be
entitled to receive a quarterly payment, calculated in the manner
specified in Section 3.3 as of the date of death of such Outside
Director, payable for a period of two years following such death, but
not to exceed the life of the surviving spouse.
(b) The surviving spouse of a Participant shall be entitled to
receive continuing quarterly payments in the amount specified in
Section 3.3 for a period of two additional years following the death of
the Participant, but not to exceed the life of the surviving spouse, or
payments to both the Participant and the surviving spouse exceeding the
period of Participant's prior Board service.
4.1 No Funding Obligation. The obligation of the Company to pay any
benefits under this Plan shall be unfunded and unsecured and any payments under
this Plan shall be made from the general assets of the Company. The Company may,
however, in its discretion, set aside assets, or purchase annuity or life
insurance contracts, to discharge a1l or part of its obligations under this
Plan. Any such assets set aside, and any such annuity or life insurance
contracts, shall remain in the name of the Company and it is intended that no
trust be created to fund this Plan.
4.2 Applicable Law. This Plan shall be construed and enforced in
accordance with the laws of the State of California.
4.3 Continued Board Service. Nothing in this Plan or the benefits
payable hereunder shall confer upon any Participant the right to continue as a
member of the Board.
4.4 Plan Binding on Successors. This Plan shall be binding upon the
successors and assigns of the Company.