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Exhibit 10.2

 
XEDAR CORPORATION

July 1, 2008

Mr. Don W. Rakestraw
Atlantic Systems Corporation
1215 South Clark Street
Suite 1102
Arlington, VA 22202

Dear Don:

This letter confirms the terms of your employment by Atlantic Systems
Corporation (Atlantic) as of the above date, and replaces any preceding
employment agreements written or verbal.  All terms of this agreement shall
remain in effect for two years after you have realized $2.640 million in stock
sales from the shares you received when Atlantic Systems was acquired by XeDAR
unless your employment is terminated for any reason pursuant to the Termination
section below.

Position
Chief Executive Officer of Atlantic Systems, a wholly-owned subsidiary of XeDAR
Corporation.
   
Base Salary
Your Base Salary for this position will be $25,416.67 per month (expressed as
$305,000 per annum).  You will receive annual cost of living increases of at
least 3.0% of your then base salary through the term of this agreement, with
adjustments taking place annually on the first day of each calendar year. 
   
Incentive
You will receive cash annual incentive compensation based on a graduated
percentage of Atlantic’s annual EBITDA as follows:
 
1.  20% of EBITDA between $0 and $100,000
 
2.  15% of the additional EBITDA between $100,000 and $500,000
 
3.  10% of the additional EBITDA over $500,000
      Payments pursuant to this incentive plan will be paid on the next payroll
following the release of Xedar's audited financial statements.    
Expenses
Reasonable business travel and entertainment expenses, reimbursed monthly based
on approved expense reports.
   
Restricted
Stock
You will receive a restricted stock unit (RSU) grant of 20% of your then base
compensation on the date of the next payroll following the release of Xedar's
audited financial statements.   You will pay taxes on any restricted stock
grant, and XeDAR will comply with any applicable withholding requirements.
       
Termination
If you are terminated, except for cause (which is defined as your death or
permanent disability, a conviction for a crime of moral turpitude, a felony, or
a conviction resulting from actions by you which harm Atlantic or its parents
(but shall not include a conviction related to a minor traffic or other petty
offense)), you will receive termination pay as follows:
 
1.  Your salary will continue to be paid on normal pay dates until you received
at least $2.640 million from XeDAR stock sales, as noted above.
 
2.  Once you have received at least $2.640 million from the sale of XeDAR
stock, you will also receive a final termination payment of $550,000.
 
 
If you are terminated for cause, you will receive compensation through your date
of termination only, and will receive no additional compensation.
   
Benefits
In accordance with the benefits of Atlantic/Point One as set forth in the
previous "terms of employment letter" dated March 20, 2007.

 
 

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This letter does not constitute an employment contract, either express or
implied.  Any employment by Atlantic is on an “at will” basis and may be
terminated by the Board of XeDAR at any time, with or without cause.

Sincerely,

/s/ Hugh H. Williamson III
/s/ John P. Moreno
Hugh H. Williamson III
John P. Moreno, Chair
Chairman and CEO
Compensation Committee
XeDAR Corporation
XeDAR Corporation

Accepted:

/s/ Don W. Rakestraw
Don W. Rakestraw
 
 
 

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