EMPLOYMENT AGREEMENT


	THIS EMPLOYMENT AGREEMENT is made and entered into as of May 31, 2007,
by and between VSE Corporation, a Delaware corporation ("Employer" or "VSE"),
and James W. Lexo ("Employee");

	WHEREAS, Employee is to be employed by VSE as its Executive Vice
President for Strategic Initiatives and Business Development,

	WHEREAS, VSE and its wholly owned subsidiaries are referred to herein as
the "Covered Company,"

	WHEREAS, VSE may also assign specified duties to Employee at Integrated
Concepts and Research Corporation ("ICRC"), a wholly owned subsidiary of VSE,
VSE agrees that Employee's performance of such duties and services at ICRC do
not present a conflict of interest by virtue of his employment by VSE,

	WHEREAS, Employer desires to ensure that, if a Change in Control appears
possible, Employee will be in a secure position from which to objectively
engage in any potential deliberations or negotiations respecting such Change
in Control without fear of any direct or implied threat to employment, status
and responsibilities, and

	WHEREAS, Employee desires to have the foregoing assurances,

	NOW, THEREFORE, in consideration of the mutual promises contained
herein, and for other good and valuable consideration, the adequacy of which
is hereby acknowledged, Employer and Employee, each intending to be legally
bound, agree as follows:


	1.	Term.  The term of Employee's employment hereunder shall
                commence on the date hereof and shall continue until
                December 31, 2008, except as otherwise provided in Section 7.
                If the term of Employee's employment hereunder shall have
                continued until December 31, 2008, thereafter, such term of
                Employee's employment hereunder shall be deemed to be renewed
                automatically, on the same terms and conditions contained
                herein, for successive periods of one year each, unless and
                until Employee or Employer, at least 60 days prior to the
                expiration of the original term or any such extended term, shall
                give written notice to the other party of intent not to renew
                the term of Employee's employment hereunder. All references
                herein to the "Term" refer to the original term of Employee's
                employment hereunder and any extensions thereof.


	2.	Duties

		(a)    Offices

                During the Term, Employee shall serve as VSE's Executive
                Vice President for Strategic Initiatives and Business
                Development. Employer agrees that Employee will be assigned
                only duties of the type, nature and dignity normally
                assigned to someone in a comparable position at a
                corporation of the size, stature and nature of Employer.
                During the Term, Employee shall report to VSE's Chairman of
                the Board of Directors (the "Board") and Chief Executive
                Officer and VSE's President and Chief Operating Officer for
                all operational and administrative matters.

		(b)    Full-Time Basis

                During the Term, Employee shall devote, on a full-time
                basis, his services, skills and abilities to his employment
                hereunder, excepting periods of vacation, illness or
                Disability (as defined below), and excepting any pursuits
                which do not materially interfere with duties hereunder or
                present a conflict of interest with the interests of any
                Covered Company.

        3.      Compensation

		(a)	Salary

                During the Term, as compensation for services rendered by
                Employee hereunder, Employer shall pay to Employee a base
                salary, payable in installments in accordance with
                Employer's policy governing salary payments to senior
                officers generally ("Base Salary"). Effective January 1 of
                every year during the Term, or on such other annual date as
                shall be determined by the Employer, Employee's
                compensation, including Base Salary, will be subject to
                review.

              	(b)	Performance Bonus

                Except as otherwise provided in Section 7, in addition to
                the Base Salary, Employee shall be eligible for an annual
                performance bonus as determined by the Board ("Performance
                Bonus"). Any Performance Bonus payable pursuant to this
                Section 3(b) shall be paid within 60 days after the later of
                the date determined or the end of the year to which such
                Performance Bonus relates.


	        (c)	Other Compensation Plans or Arrangements

                During the Term, Employee shall also be eligible to
                participate in all other currently existing or subsequently
                implemented compensation or benefit plans or arrangements
                available generally to other officers or senior officers of
                Employer.

                (d)	Consultation with Board

                It is understood that the Chairman of the Board (the
                "Chairman") will consult with the Board's compensation
                committee in respect of review of Employee's Base Salary,
                Performance Bonus, and other benefits hereunder.

              	(e)	Tax Withholdings

                Employer shall withhold from Employee's compensation
                hereunder and pay over to the appropriate governmental
                agencies all payroll taxes, including income, social
                security, and unemployment compensation taxes, required by
                the federal, state and local governments with jurisdiction
                over Employer.

	4.	Benefits. During the Term, Employee shall be entitled to such
                vacation benefits and comparable fringe benefits and perquisites
                as may be provided to any or all of Employer's senior officers
                pursuant to policies established from time to time by Employer.
                These fringe benefits and perquisites may include holidays,
                group health insurance, short-term and long-term disability
                insurance, life insurance, and retirement plan contributions.

        5.	Expenses and Other Perquisites. Employer shall reimburse Employee
                for all reasonable and proper business expenses incurred by him
                during the Term in the performance of his duties hereunder, in
                accordance with Employer's customary practices for senior
                officers, and provided such business expenses are reasonably
                documented. Also, during the Term, Employer shall continue to
                provide Employee with an office and suitable office fixtures,
                telephone services, and secretarial assistance of a nature
                appropriate to Employee's position and status.



        6.	Exclusive Services, Confidential Information, Business
                Opportunities and Non-Solicitation

		(a)	Exclusive Services

                        (i)    During the Term, Employee shall at all times
                               devote his full-time attention, energies, efforts
                               and skills to Employer's business and shall not,
                               directly or indirectly, engage in any other
                               business activity, whether or not for profit,
                               gain or other pecuniary advantages, without the
                               Chairman's written consent provided that such
                               prior consent shall not be required with respect
                               to (1) business interests that neither compete
                               with any Covered Company nor interfere with
                               Employee's duties and obligations hereunder, and
                               (2) Employee's charitable, eleemosynary,
                               philanthropic, or professional association
                               activities.

			(ii)   During the Term, Employee shall not, without the
                               Chairman's prior written consent, directly or
                               indirectly, either as an officer, director,
                               employee, agent, advisor, consultant, principal,
                               stockholder, partner, owner or in any other
                               capacity, on Employee's own behalf or otherwise,
                               in any way engage in, represent, be connected
                               with or have a financial interest in, any
                               business which is, or to his knowledge, is about
                               to become, engaged in the business of providing
                               engineering, management, energy or environmental
                               services to the United States Government or any
                               department, agency, or instrumentality thereof
                               or any state or local governmental agency or to
                               any person, corporation, partnership, limited
                               liability company, trust, joint venture, or other
                               entity (collectively a "Person") with which any
                               Covered Company is currently or has previously
                               done business or any subsequent line of business
                               developed by Employee or any Covered Company
                               during the Term. Notwithstanding the foregoing,
                               Employee shall be permitted to own passive
                               investments in publicly held companies provided
                               that such investments do not exceed one percent
                               of any such company's outstanding equity.

		(b)	Confidential Information

                        During the Term and the period commencing on the date of
                        termination thereof and ending on the second anniversary
                        of such termination date, Employee shall not disclose or
                        use, directly or indirectly, any Confidential
                        Information (as defined below). For the purposes of this
                        Agreement, "Confidential Information" shall mean all
                        information disclosed to Employee, or known by him as a
                        consequence of or through his employment with Employer,
                        where such information is not generally known in the
                        trade or industry or was regarded or treated as
                        confidential by any Covered Company, and where such
                        information refers or relates in any manner whatsoever
                        to the business activities, processes, services or
                        products of any Covered Company. Confidential
                        Information shall include business and development plans
                        (whether contemplated, initiated or completed), informa-
                        tion with respect to the development of technical and
                        management services, business contacts, methods of
                        operation, results of analysis, business forecasts,
                        financial data, costs, revenues, and similar
                        information. Upon termination of Term, Employee shall
                        immediately return to Employer all property of any
                        Covered Company and all Confidential Information
                        which is in tangible form, and all copies thereof.

		(c)	Business Opportunities

			(i)    During the Term, Employee shall promptly disclose
                               to Employer each business opportunity of a type
                               which, based upon its prospects and relationship
                               to the existing businesses of any Covered
                               Company, Employer or any other Covered Company
                               might reasonably consider pursuing. Upon
                               termination of the Term, regardless of the
                               circumstances thereof, Employer or such other
                               Covered Company shall have the exclusive right to
                               participate in or undertake any such opportunity
                               on its own behalf without any involvement of
                               Employee.

		        (ii)   During the Term, Employee shall refrain from
                               engaging in any activity, practice or act which
                               conflicts with, or has the potential to conflict
                               with, the interests of any Covered Company, and
                               he shall avoid any acts or omissions which are
                               disloyal to, or competitive with any Covered
                               Company.

		(d)	Non-Solicitation of Employees

                        During the Term and until the second anniversary of the
                        termination of the Term, Employee shall not, except in
                        the course of duties hereunder, directly or indirectly,
                        induce or attempt to induce or otherwise counsel,
                        advise, ask or encourage any person to leave the employ
                        of any Covered Company, or solicit or offer employment
                        to any person who was employed by any Covered Company at
                        any time during the twelve-month period preceding the
                        solicitation or offer.

		(e)	Covenant Not To Compete

		        (i)    If Employee voluntarily terminates the Term, or
                               if Employer terminates the Term for Cause (as
                               defined below), Employee shall not, before the
                               second anniversary of such termination, engage
                               in competition with any Covered Company, or
                               solicit, from any Person who purchased any then
                               existing product or service from any Covered
                               Company during the Term, the purchase of any then
                               existing product or service in competition with
                               then existing products or services of any Covered
                               Company.

			(ii)   For purposes of this Agreement, Employee shall be
                               deemed to engage in competition with a Covered
                               Company if Employee shall directly or indirectly,
                               either individually or as a stockholder,
                               director, officer, partner, consultant, owner,
                               employee, agent, or in any other capacity,
                               consult with or otherwise assist any Person
                               engaged in providing technical and management
                               services to any Person which any Covered Company,
                               during the Term, has developed or is working to
                               develop.

                (f)	Employee Acknowledgment

                        Employee hereby agrees and acknowledges that the
                        restrictions imposed upon Employee by the provisions of
                        this Section 6 are fair and reasonable considering the
                        nature of the business of each Covered Company, and are
                        reasonably required for each Covered Company's
                        protection.

                (g)	Invalidity

                        If a court of competent jurisdiction or an arbitrator
                        shall declare any provision or restriction contained in
                        this Section 6 as unenforceable or void, the provisions
                        of this Section 6 shall remain in full force and effect
                        to the extent not so declared to be unenforceable or
                        void, and the court may modify the invalid provision to
                        make it enforceable to the maximum extent permitted by
                        law.

                (h)	Specific Performance

                        Employee agrees that if Employee breaches any of the
                        provisions of this Section 6, the remedies available at
                        law to Employer would be inadequate and in lieu thereof,
                        or in addition thereto, Employer shall be entitled to
                        appropriate equitable remedies, including specific
                        performance and injunctive relief. Employee agrees not
                        to enter into any agreement, either written or oral,
                        which may conflict with this Agreement, and Employee
                        authorizes Employer to make known the terms of Sections
                        6 and 7 hereof to any Person, including future or
                        prospective employers of Employee.



        7.	Termination

		(a)	By Employer

	                (i)    Termination for Cause

                               Employer may terminate the Term for Cause (as
                               defined below) at any time by written notice to
                               Employee. For purposes of this Agreement, the
                               term "Cause" shall mean any one or more of the
                               following: (1) conduct by Employee which is
                               materially illegal or fraudulent or contrary to
                               Employer's policy; (2) the breach or violation
                               by Employee of this Agreement, provided that
                               Employee must first be given notice by VSE's
                               President or Chairman of the alleged breach or
                               violation and 30 days to cure said alleged breach
                               or violation; (3) Employee's use of illegal drugs
                               or abuse of alcohol or authorized drugs which
                               impairs Employee's ability to perform duties
                               hereunder, provided that Employee must be given
                               notice by the Chairman of such impairment and
                               60 days to cure the impairment; (4) Employee's
                               knowing and willful neglect of duties or
                               negligence in the performance of duties which
                               materially affects the business of any Covered
                               Company, provided that Employee must first be
                               given notice by the Chairman or the of such
                               alleged neglect or negligence and 30 days to
                               cure said alleged neglect or negligence. If a
                               termination occurs pursuant to clause (1) above,
                               the date on which the Term is terminated (the
                               "Termination Date") shall be the date Employee
                               receives notice of termination and, if a
                               termination occurs pursuant to clauses (2), (3)
                               or (4) above, the Termination Date shall be the
                               date on which the specified cure period expires.
                               In any event, as of the Termination Date (in
                               the absence of satisfying the alleged breach or
                               violation within the applicable cure period),
                               Employee shall be relieved of all duties
                               hereunder and Employee shall not be entitled to
                               the accrual or provision of any compensation or
                               benefit, after the Termination Date but Employee
                               shall be entitled to the provision of all
                               compensation and other benefits that shall have
                               accrued as of the Termination Date, including
                               Base Salary, Performance Bonuses, paid leave
                               benefits, and reimbursement of incurred business
                               expenses.

              		(ii)   Termination Without Cause

                               Employer may, in its sole discretion, without
                               Cause, terminate the Term at any time by
                               providing Employee with (1) five days' prior
                               written notice thereof and (2) on or prior to
                               the Termination Date, a lump sum severance
                               compensation payment equal to Employee's Base
                               Salary as of the effective Termination Date
                               (e.g., if the Base Salary was $185,000, Employee
                               would be entitled to a lump sum severance payment
                               of $185,000). In such event, Employee shall not
                               be entitled to the accrual or provision of any
                               other compensation or benefit after the
                               Termination Date other than (1) the medical and
                               hospitalization benefits for the first 18 months
                               after the Termination Date or longer if permitted
                               under Employer's policies and procedures; (2) the
                               provision of all compensation and other benefits
                               that shall have accrued as of the Termination
                               Date, including Base Salary, Performance Bonus,
                               paid leave benefits, and reimbursements of
                               incurred expenses; and (3) all stock options or
                               similar rights to acquire capital stock granted
                               by VSE to Employee shall automatically become
                               vested and exercisable in whole or in part.
                               Notwithstanding anything herein to the contrary,
                               the expiration or non-renewal of the Term by
                               Employer or Employee pursuant to Section 1 shall
                               not be considered a termination without Cause for
                               the purposes of this Agreement, including this
                               Section 7(a)(ii).

		(b)	Death or Disability

                        The Term shall be terminated immediately and
                        automatically upon Employee's death or "Disability." The
                        term "Disability" shall mean Employee's inability to
                        perform all of the essential functions of his position
                        hereunder for a period of 26 consecutive weeks or for an
                        aggregate of 150 work days during period of 365
                        consecutive days by reason of illness, accident or any
                        other physical or mental incapacity, as may be permitted
                        by applicable law. Employee's capability to continue
                        performance of Employee's duties hereunder shall be
                        determined by a panel composed of two independent
                        medical doctors appointed by the Parent Company and one
                        appointed by the Employee or designated representative.
                        If the panel is unable to reach a decision, the matter
                        will be referred to arbitration in accordance with
                        Section 8. In the event of Employee's death or
                        Disability, Employee (or designated beneficiary) will
                        be paid his Base Salary then in effect for 365 days
                        following the date of death or Disability.

		(c)	By Employee

		        (i)    Employee may, in his sole discretion, without
                               Cause, terminate the Term at any time upon 60
                               days' written notice to the Chairman. If Employee
                               exercises such termination right, Employer may,
                               at its option, at any time after receiving such
                               notice from Employee, relieve Employee of all
                               duties and terminate the Term at any time prior
                               to the expiration of said notice period, and such
                               termination shall not constitute a termination
                               without Cause pursuant to this Agreement,
                               including Section 7(a)(ii). If the Term is
                               terminated by Employee or Employer pursuant to
                               this Section 7(c)(i), Employee shall not be
                               entitled to any further Base Salary or the
                               accrual or provision of any compensation or
                               benefits after the Termination Date, except
                               standard medical and hospitalization benefits
                               in accordance with Employer's policy.

			(ii)   If, during the Term, a Change of Control (as
                               defined below) occurs, Employee may terminate the
                               Term for Good Reason (as defined below) upon 30
                               days' written notice to Employer. If Employee
                               exercises such termination right, Employer may,
                               at its option, at any time after receiving such
                               notice from Employee, relieve Employee of all
                               duties hereunder and terminate the Term at any
                               time prior to the expiration of said notice
                               period, and such termination shall not constitute
                               a termination without Cause pursuant to this
                               Agreement, including Section 7(a)(ii). However,
                               if this Agreement is terminated by Employee or
                               Employer pursuant to this Section 7(c)(ii) within
                               365 days after a Change of Control has occurred,
                               Employee shall be entitled to (a) payment on or
                               prior to the Termination Date of a lump sum
                               severance compensation payment equal to
                               Employee's Annual Base Salary as of the
                               Termination Date (e.g., if the Base Salary was
                               $185,000, Employee would be entitled to a lump
                               sum payment of $185,000); (b) continue the
                               medical and hospitalization benefits in
                               accordance with Employer's policy and to payment
                               of all compensation and other benefits that shall
                               have accrued as of the Termination Date, as
                               described in Section 7(a)(ii)(l); and (c) to the
                               automatic vesting and exercisability in whole or
                               in part of all stock options or similar rights to
                               acquire capital stock granted by VSE to Employee;
                               provided that Employee shall not be entitled,
                               after the Termination Date to the accrual or
                               provision of any other compensation payable
                               hereunder, including the Performance Bonus.

		(d)	Change in Control and Good Reason

                        (i)    For purposes of this Section 7, a "Change in
                               Control" shall be deemed to have occurred upon
                               the happening of any of the following events:

                               (1)	any "person," including a "group," as
                                        such terms are defined in Sections 13(d)
                                        and 14(d) of the Securities Exchange Act
                                        of 1934, as amended, and the rules
                                        promulgated thereunder (collectively
                                        the "Exchange Act"), other than a
                                        trustee or other fiduciary holding
                                        voting securities of VSE ("Voting
                                        Securities") under any VSE-sponsored
                                        benefit plan, becomes the beneficial
                                        owner, as defined under the Exchange
                                        Act, directly or indirectly, whether
                                        by purchase or acquisition or agreement
                                        to act in concert or otherwise, of 45%
                                        or more of the outstanding Voting
                                        Securities of VSE;

	                       (2)	a cash tender or exchange offer is
                                        completed for such amount of Voting
                                        Securities which, together with the
                                        Voting Securities then beneficially
                                        owned, directly or indirectly, by the
                                        offeror (and affiliates thereof)
                                        constitutes 45% or more of the
                                        outstanding Voting Securities;

                               (3)	except in the case of a merger or
                                        consolidation in which (a) VSE is the
                                        surviving corporation and (b) the
                                        holders of Voting Securities immediately
                                        prior to such merger or consolidation
                                        beneficially own, directly or
                                        indirectly, more than 50% of the
                                        outstanding Voting Securities
                                        immediately after such merger or
                                        consolidation (there being excluded from
                                        the number of Voting Securities held by
                                        such holders, but not from the
                                        outstanding Voting Securities, any
                                        Voting Securities received by affiliates
                                        of the other constituent corporation(s)
                                        in the merger or consolidation in
                                        exchange for stock of such other
                                        corporation), VSE's shareholders approve
                                        an agreement to merge, consolidate,
                                        liquidate, or sell all or substantially
                                        all of VSE's assets; or

                               (4)	a majority of VSE's directors are
                                        elected to the Board without having
                                        previously been nominated and approved
                                        by the members of the Board incumbent on
                                        the day immediately preceding such
                                        election. For purposes of this Section
                                        7, "affiliate" of a Person shall mean a
                                        Person that directly or indirectly
                                        controls, is controlled by, or is under
                                        common control with the Person or other
                                        entity specified.

                        (ii)   For purposes of this Section 7, "Good Reason"
                               shall mean after the occurrence of a Change in
                               Control, any one or more of the following events
                               has occurred:

                               (1)	a material change in the nature of
                                        Employee's authorities, duties,
                                        responsibilities or status (including
                                        offices and titles) from those in effect
                                        immediately prior to the Change in
                                        Control;

                               (2)	the relocation of Employee's place of
                                        employment to a location in excess of 75
                                        miles from the place of Employee's
                                        employment immediately prior to the
                                        Change in Control, except for required
                                        travel on Employee's business to an
                                        extent substantially equivalent to
                                        Employee's business travel obligations
                                        immediately prior to the Change in
                                        Control;

                               (3)	any reduction by Employer of Employee's
                                        Base Salary or material reduction in
                                        Employee's incentive benefits from those
                                        in effect immediately prior to the
                                        Change in Control; or

                               (4)	Employer breaches any obligation
                                        hereunder and such breach is not cured
                                        within 30 days after Employer's receipt
                                        of notice thereof from Employee.

		(e)	No Duty to Mitigate

                        If Employee is entitled to the compensation and other
                        benefits provided under Sections 7(a)(ii) or (c)(ii),
                        Employee shall have no obligation to seek employment to
                        mitigate damages hereunder.

                (f)	Board Approval

                        Notwithstanding anything herein to the contrary, the
                        Term shall expire as of June 30, 2007, if this Agreement
                        has not been previously approved by the Board, and any
                        such termination shall not constitute a termination
                        without Cause pursuant to this Agreement, including
                        Section 7(a)(ii).

        8.	Arbitration.	Whenever a dispute arises between the parties
                concerning this Agreement or any of the obligations hereunder,
                or Employee's employment generally, Employer and Employee shall
                use their best efforts to resolve the dispute by mutual
                agreement. If any dispute cannot be resolved by Employer and
                Employee, such dispute shall be submitted to arbitration to the
                exclusion of all other avenues of relief and adjudicated
                pursuant to the American Arbitration Association's Rules for
                Employment Dispute Resolution then in effect. The decision of
                the arbitrator must be in writing and shall be final and binding
                on the parties, and judgment may be entered on the arbitrator's
                award in any court having jurisdiction thereof. The arbitrator's
                authority in granting relief to Employee shall be limited to an
                award of compensation, benefits and unreimbursed expenses as
                described in Sections 3, 4, and 5 above, and to the release of
                Employee from the provisions of Section 6 and the arbitrator
                shall have no authority to award other types of damages or
                relief to Employee, including consequential or punitive damages.
                The arbitrator shall also have no authority to award
                consequential or punitive damages to Employer for violations of
                this Agreement by Employee. The expenses of the arbitration
                shall be borne by the losing party to the arbitration and the
                prevailing party shall be entitled to recover from the losing
                party all of its own costs and attorneys' fees with respect to
                the arbitration. Nothing in this Section 8 shall be construed to
                derogate Employer's rights to seek legal and equitable relief in
                a court of competent jurisdiction as contemplated by Section
                6(h).

        9.	Non-Waiver.	A party's failure at any time to require the
                performance by the other party of any of the terms, provisions,
                covenants or conditions hereof shall in no way affect the first
                party's right thereafter to enforce the same, nor shall the
                waiver by either party of the breach of any term, provision,
                covenant or condition hereof be taken or held to be a waiver of
                any succeeding breach.

        10.	Severability.	If any provision of this Agreement conflicts
                with the law under which this Agreement is to be construed, or
                if any such provision is held invalid or unenforceable by a
                court of competent jurisdiction or any arbitrator, such
                provision shall be deleted from this Agreement and the Agreement
                shall be construed to give full effect to the remaining
                provision thereof.

        11.	Survivability.	Unless otherwise provided herein, upon
                termination of the Term, the provisions of Sections 6(b), (d)
                and (e) shall nevertheless remain in full force and effect.

        12.	Governing Law. This Agreement shall be interpreted, construed,
                and governed according to the laws of the Commonwealth of
                Virginia, without regard to the conflict of law provisions
                thereof.

        13.	Construction.	The paragraph headings and captions contained in
                this Agreement are for convenience only and shall not be
                construed to define, limit or affect the scope or meaning of the
                provisions hereof. All references herein to Sections shall be
                deemed to refer to Sections of this Agreement.

        14.	Entire Agreement. This Agreement contains and represents the
                entire agreement of Employer and Employee and supersedes all
                prior agreements, representations or understandings, oral or
                written, express or implied with respect to the subject matter
                hereof. This Agreement may not be modified or amended in any
                way unless in writing signed by each of Employer and Employee.
                No representation, promise or inducement has been made by either
                Employer or Employee that is not embodied in this Agreement,
                and neither Employer nor Employee shall be bound by or liable
                for any alleged representation, promise or inducement not
                specifically set forth herein.

        15.	Assignability.	Neither this Agreement nor any rights or
                obligations of Employer or Employee hereunder may be assigned by
                Employer or Employee without the other party's prior written
                consent. Subject to the foregoing, this Agreement shall be
                binding upon and inure to the benefit of Employer and Employee
                and their heirs, successors and assigns.

        16.	Notices. All notices required or permitted hereunder shall be in
                writing and shall be deemed properly given if delivered
                personally or sent by certified or registered mail, postage
                prepaid, return receipt requested, or sent by telegram, telex,
                telecopy or similar form of telecommunication, and shall be
                deemed to have been given when received. Any such notice or
                communication shall be addressed: (a) if to Employer, to
                Chairman c/o Chief Executive Officer, VSE Corporation, 2550
                Huntington Avenue, Alexandria, Virginia 22303-1499; or (b) if
                to Employee, to the last known home address on file with
                Employer, or to such other address as Employer or Employee
                shall have furnished to the other in writing.

	IN WITNESS WHEREOF, Employer and Employee have duly executed this
Agreement, to be effective as of the day and year first above written.


				VSE CORPORATION, a Delaware corporation

				By:	 /s/ D. M. Ervine
					________________________________
					Chairman, President, and CEO/COO


					/s/ James W. Lexo
					________________________________
					James W. Lexo