Document:

Exhibit 10.2
                             FIRST AMENDMENT TO
                    BUSINESS LOAN AND SECURITY AGREEMENT
                    ------------------------------------

       THIS FIRST AMENDMENT TO BUSINESS LOAN AND SECURITY AGREEMENT (this
"Agreement") made as of the 21st day of May, 2008 by and among VSE CORPORATION,
a corporation organized under the laws of the State of Delaware ("VSE"),
ENERGETICS INCORPORATED, a corporation organized under the laws of the State of
Maryland ("Energetics"), VSE SERVICES INTERNATIONAL, INC., a corporation
organized under the laws of the State of Delaware ("VSI"), INTEGRATED CONCEPTS
AND RESEARCH CORPORATION, a corporation organized under the laws of the District
of Columbia ("ICRC"), G&B SOLUTIONS, INC., a corporation organized under the
laws of the Commonwealth of Virginia ("G&B"), jointly and severally (each of
VSE, Energetics, VSI, ICRC and G&B a "Borrower"; and collectively, the
"Borrowers") and CITIZENS BANK OF PENNSYLVANIA, a bank chartered in the State of
Pennsylvania, its successors and assigns (the "Lender").

                                  RECITALS
                                  --------
       A.	The Lender has made a revolving line of credit in the current
maximum principal amount of Twenty-Five Million Dollars ($25,000,000), jointly
and severally, to the Borrowers (the "Loan") pursuant to that certain Business
Loan and Security Agreement, dated August 14, 2007, by and among VSE,
Energetics, VSI, ICRC and the Lender (the Business Loan and Security Agreement,
as amended from time to time, is hereinafter called, the "Business Loan
Agreement").

       B.	The Loan is currently evidenced by that certain Revolving
Promissory Note, dated August 14, 2007, from VSE, Energetics, VSI, and ICRC in
favor of the Lender in the maximum principal amount of Twenty-Five Million
Dollars ($25,000,000) (as amended from time to time, is hereinafter called the
"Note").

       C.	Pursuant to that certain Additional Borrower Joinder Supplement
dated April 14, 2008 by and among VSE, Energetics, VSI, ICRC, G&B and Lender,
G&B was added as a party to each of the Financing Documents.

       D.	The Borrowers have requested that the Lender increase the
maximum principal amount of the Loan and revise other provisions of the Business
Loan Agreement and the Lender has agreed on the condition, among others, that
this Agreement be executed and delivered by the Borrowers to the Lender.

       E.	All capitalized terms used herein and not otherwise defined
shall have the meanings given to such terms in the Business Loan Agreement.

       NOW, THEREFORE, in consideration of the premises, the mutual agreements
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

       1. Recitals.  The parties hereto acknowledge and agree that the above
Recitals are true and correct in all respects and that the same are incorporated
herein and made a part hereof by reference.

       2. Definitions.
              (a)	The following defined terms set forth in Section 1.1 of
the Business Loan Agreement are amended and restated in their entirety as
follows:

       "Fees" means the collective reference to each fee payable to the Lender,
under the terms of this Agreement or under the terms of any of the other
Financing Documents, including, without limitation, the Revolving Credit Unused
Line Fees, Letter of Credit Fees and the Field Examination Fees.

       "Leverage Ratio" means the ratio of Total Funded Debt on a specified date
to EBITDA for the four (4) quarter period then ending on such date.

       "LIBOR rate" means the London interbank offered rate of major banks for
deposits in United States Dollars for a designated period (e.g. one, two, three
or six months) as set forth at Telerate Page 3750 at approximately 11:00 a.m.
London time on the third Euro-Dollar Business Day preceding the date when the
LIBOR-based Rate will be become effective; provided, however, that if such
information is not available on Telerate, the "LIBOR rate" shall be determined
from information supplied to the Lender by a nationally recognized reporting
service for similar information acceptable to the Lender.

       "LIBOR Rate Margin" means the amount determined to be in effect from time
to time using the chart set forth below.  The initial LIBOR Rate Margin will be
determined at the Supplemental Closing Date using the Leverage Ratio calculated
by reference to the consolidated financial statements of VSE most recently
received by the Lender.  Commencing on the date following the Supplemental
Closing Date when the Lender receives the consolidated financial statements of
VSE in accordance with this Agreement and on each such date thereafter, the
LIBOR Rate Margin will be reset based on the Leverage Ratio calculated by
reference to such consolidated financial statements.

          LIBOR Rate Margin              Leverage Ratio
          -----------------              --------------
                1.25%                 Less than 1.0 to 1.0
                1.75%                 Equal to or greater than 1.0 to 1.0 but
                                      less than 2.0 to 1.0
                2.00%                 Equal to or greater than 2.0 to 1.0

       In the event VSE fails to provide such consolidated financial statements
when due, the LIBOR Rate Margin shall be 2.00% until such time as such
consolidated financial statements are submitted as required by this Agreement.

       "Obligations" means all present and future, whether now existing or
contemplated or hereafter arising, of any one or more of the Borrowers to the
Lender under, arising pursuant to, in connection with and/or on account of the
provisions of this Agreement, each Note, each Security Document, and/or any of
the other Financing Documents, the Loans, and/or any of the Facilities
including, without limitation, the principal of, and interest on, each Note,
late charges, the Fees, Enforcement Costs, and prepayment fees (if any), letter
of credit reimbursement obligations, letter of credit fees or fees charged with
respect to any guaranty of any letter of credit; also means all other present
and future indebtedness, duties, obligations, and liabilities, whether now
existing or contemplated or hereafter arising, of any one or more of the
Borrowers to the Lender or its Affiliates of any nature whatsoever, including,
without limitation, any indebtedness, duties, obligations, and liabilities,
under or in connection with, any Swap Transaction or Bank Products, regardless
of whether such indebtedness, duties, obligations, and liabilities be direct,
indirect, primary, secondary, joint, several, joint and several, fixed or
contingent; and also means any and all renewals, extensions, substitutions,
amendments, restatements and rearrangements of any such indebtedness, duties,
obligations, and liabilities.

       "Prime Rate Margin" means zero percent (0.0%).

       "Revolving Credit Expiration Date" means May 21, 2010.
              (b)	The following defined terms are added in alphabetical
order to Section 1.1 of the Business Loan Agreement:

       "Bank Products" shall mean any (i) commercial credit card, purchase card
and merchant card services, or other commercial credit card services or
facilities, (ii) cash management services or facilities, (iii) foreign
investment or exchange products or services or (iv) products under any non-
speculative hedging agreement or arrangement, extended to any Borrower by Lender
or any Affiliate of Lender, from time to time.

       "EBITDA" means as to Borrowers for any period of determination thereof,
the sum of (a) net profit (or loss) determined in accordance with GAAP
consistently applied, plus (b) interest expense and income tax provisions for
such period, plus (c) depreciation and amortization of assets for such period,
plus (d) non-cash stock compensation, plus (e) non-cash non-recurring charges,
as approved in writing by the Lender prior to the due date of the Compliance
Certificate as required under Sections 6.1.1(a) (Annual Statements and
Certificates) and 6.1.1(b) (Quarterly Statements and Certificates), minus any
non-cash gains to the extent included in net income.  EBITDA shall be determined
on a rolling basis, based on the four (4) quarter period then ending.  EBITDA
from any Permitted Acquisitions will be included on a pro forma basis.

       "Fixed Charge Coverage Ratio" means as to Borrowers for any period of
determination thereof the ratio of (a) the sum of (i) EBITDA, plus
(ii) operating lease payments (including rent), minus (iii) cash taxes, minus
(iv) dividends, minus (v) share repurchases to (b) Fixed Charges.

       "Fixed Charges" means as to Borrowers for any period of determination
thereof, the sum of (i) scheduled or required principal payments on all
Indebtedness for Borrowed Money of Borrowers, plus (ii) all operating lease
payments (including rent), plus (iii) cash interest expense, plus (iv) any earn
out payments of Borrowers.

       "Supplemental Closing Date" means May 21, 2008.

       "Total Funded Debt" means as to Borrowers for any period of determination
thereof the sum of (i) all Indebtedness for Borrowed Money of Borrowers, plus
(ii) any accrued earn out payments of Borrowers (net of any Cash Equivalents for
purposes of calculating accrued earn out payments of Borrowers).

       "Unused Fee Margin" means that per annum percentage rate determined by
Lender from time to time in accordance with the chart set forth below.

Revolving Credit Unused Line Fee          Leverage Ratio
--------------------------------          --------------
            0.10%                    Less than 1.0 to 1.0
            0.15%                    Equal to or greater than 1.0
                                     to 1.0 but less than 2.0 to 1.0
            0.20%                    Equal to or greater than 2.0 to 1.0

       3. Revolving Credit Facility.  Section 2.1.1 of the Loan Agreement is
hereby amended and restated in its entirety as follows:

                      2.1.1	Revolving Credit Facility.

                      Subject to and upon the provisions of this Agreement, the
Lender establishes a revolving credit facility in favor of the Borrowers.  The
aggregate of all advances under the Revolving Credit Facility is sometimes
referred to in this Agreement collectively as the "Revolving Loan".  The
Lender's "Revolving Credit Committed Amount" is $35,000,000.  During the
Revolving Credit Commitment Period, any or all of the Borrowers may request
advances under the Revolving Credit Facility in accordance with the provisions
of this Agreement; provided that after giving effect to any Borrower's request
the aggregate outstanding principal balance of the Revolving Loan and all Letter
of Credit Obligations would not exceed the lesser of (i) the Revolving Credit
Committed Amount or (ii) the Borrowing Base.

                      Unless sooner paid, the unpaid Revolving Loan, together
with interest accrued and unpaid thereon and all other Obligations shall be due
and payable in full on the Revolving Credit Expiration Date.  Interest on the
Revolving Loan shall be payable on each Interest Payment Date.

       4. Revolving Credit Unused Line Fee.  Section 2.1.10 of the Loan
Agreement is hereby amended and restated in its entirety as follows:

                      2.1.10	Revolving Credit Unused Line Fee.

                      Borrowers shall pay to Lender a revolving credit facility
fee (collectively, the "Revolving Credit Unused Line Fees" and individually, a
"Revolving Credit Unused Line Fee") in an amount equal to the Unused Fee Margin
multiplied by the average daily unused and undisbursed portion of the Revolving
Credit Committed Amount in effect from time to time accruing during each
calendar quarter.  For purposes of clarification, the face amount of outstanding
Letters of Credit shall be considered usage of the Revolving Credit Committed
Amount.  The accrued and unpaid portion of the Revolving Credit Unused Line Fee
shall be paid by Borrowers to Lender on the last day of each calendar quarter,
commencing on the first such date following the Supplemental Closing Date, and
on the Revolving Credit Termination Date.

       5. Financial Statements.  Section 6.1.1 of Business Loan Agreement is
hereby amended as follows:

              (a)	Section 6.1.1(c) is hereby amended and restated in its
entirety as follows:
                      (c)	Quarterly Reports.  The Borrowers shall furnish
to the Lender within twenty (20) days after the end of each fiscal quarter, a
Borrowing Base Report, and a report containing the following information:

                          (i)	a detailed aging schedule of all Receivables by
Account Debtor, in such detail, and accompanied by such supporting information,
as the Lender may from time to time reasonably request;

                          (ii)	a detailed aging of all accounts payable by
supplier, in such detail, and accompanied by such supporting information, as the
Lender may from time to time reasonably request; and

                          (iii)	such other information as the Lender may
reasonably request.

              (b)	Section 6.1.1(g) is hereby added its entirety
immediately after Section 6.1.1(f) as follows:

                      (g)	Annual Projections.  The Borrowers shall furnish
to the Lender as soon as available, but in no event less than forty-five (45)
days after the end of each fiscal year, management prepared annual financial
projections on a consolidated basis for the Borrowers for the immediately
succeeding fiscal year.

       6. Financial Covenants.  Section 6.1.14 of the Business Loan Agreement is
hereby amended and restated in its entirety as follows:

              6.1.14	Financial Covenants.

                      (a)	Leverage Ratio.  Borrowers will maintain, on a
consolidated basis and tested as of the last day of each of Borrowers' fiscal
quarters, commencing on March 31, 2008, for the four (4) quarter period ending
on that date, a Leverage Ratio of not greater than 3.00 to 1.00.

                      (b)	Fixed Charge Coverage Ratio.  Borrowers will
maintain, on a consolidated basis and tested as of the last day of each of
Borrowers' fiscal quarters, commencing on March 31, 2008, for the four (4)
quarter period ending on that date, a Fixed Charge Coverage Ratio of not less
than 1.25 to 1.00.

                      (c)	Profitability.  Borrowers will maintain, on a
consolidated basis and tested as of the last day of each of Borrowers' fiscal
quarters, commencing on March 31, 2008, for the four (4) quarter period ending
on that date, net income, minus cash dividends declared by Borrowers during
such period, in excess of $1.00.

       7. Exhibits to Loan Agreement.  Exhibit B (Revolving Credit Note) to the
Business Loan Agreement is hereby replaced in its entirety with the form
attached hereto as Exhibit A.

       8. Conditions Precedent.  This Agreement shall be deemed effective by
Lender upon the satisfaction by Borrowers of each of the following:
              (a) the due execution and delivery to Lender of this Agreement
by each party hereto;

              (b) the due execution and delivery to Lender of that certain
Amended and Restated Revolving Promissory Note, dated as of the date hereof,
by each Borrower in favor of Lender;

              (c) the due execution and delivery to Lender of the Collateral
Disclosure List by each party thereto;

              (d) a legal opinion letter from Borrowers' counsel, Arent Fox,
dated as of the date hereof;

              (e) proof that the Borrowers have paid all fees, costs and
expenses to the Lender in connection with this Agreement, including, but not
limited to, the Lender's attorneys fees; and

              (f) such other information, instruments, opinions, documents,
certificates and reports as the Lender may deem necessary.

       9. Representations.  The Borrowers hereby confirm that:

              (a) The representations, warranties and covenants set forth in
Articles IV and VI of the Business Loan Agreement, are true and correct as of
the date hereof; and

              (b) The Borrowers have no defenses, rights of setoff, claims,
counterclaims, or causes of action of any kind or nature whatsoever against the
Lender, or any agent, attorney, legal representative, predecessor-in-interest,
or affiliate of the Lender, directly or indirectly in any manner connected with,
pursuant to, or by virtue of the Obligations or any of the Financing Documents,
and TO THE EXTENT ANY SUCH DEFENSES, RIGHTS OF SETOFF, CLAIMS, COUNTERCLAIMS, OR
CAUSES OF ACTION EXIST, SUCH DEFENSES, RIGHTS, CLAIMS, COUNTERCLAIMS, AND CAUSES
OF ACTION ARE HEREBY FOREVER WAIVED, DISCHARGED AND RELEASED.

       10. Counterparts.  This Agreement may be executed in any number of
duplicate originals or counterparts, each of which duplicate original or
counterpart shall be deemed to be an original and all taken together shall
constitute one and the same instrument.

       11. Financing Documents; Governing Law; Etc.  This Agreement is one of
the Financing Documents defined in the Business Loan Agreement and shall be
governed and construed in accordance with the laws of the Commonwealth of
Virginia.  The headings and captions in this Agreement are for the convenience
of the parties only and are not a part of this Agreement.

       12. Acknowledgments.  Each Borrower hereby confirms to Lender the
enforceability and validity of each of the Financing Documents.  In addition,
each Borrower hereby agrees to the execution and delivery of this Agreement and
the terms and provisions, covenants or agreements contained in this Agreement
shall not in any manner release, impair, lessen, modify, waive or otherwise
limit the joint and several liability and obligations of the Borrowers under the
terms of any of the Financing Documents, except as otherwise specifically set
forth in this Agreement.

       13. Modifications.  This Agreement may not be supplemented, changed,
waived, discharged, terminated, modified or amended, except by written
instrument executed by the parties.

                   [signatures are on the following page.]

       IN WITNESS WHEREOF, each of the parties hereto have executed and
delivered this Agreement under their respective seals as of the day and year
first written above.

	                        BORROWERS:

WITNESS/ATTEST:	                VSE CORPORATION

/s/ R. J. Hannah	           /s/ M. A. Gauthier
_________________________	By:________________________(Seal)
                                   Name: Maurice A. Gauthier
                                   Title: CEO, President, and COO

WITNESS/ATTEST:	                ENERGETICS INCORPORATED

/s/ R. J. Hannah	           /s/ D. M. Ervine
_________________________	By:________________________(Seal)
                                   Name: D. M. Ervine
                                   Title: Chairman of the Board

WITNESS/ATTEST:	                VSE SERVICES INTERNATIONAL, INC.

/s/ R. J. Hannah	           /s/ D. M. Ervine
_________________________	By:________________________(Seal)
                                   Name: D. M. Ervine
                                   Title: Chairman of the Board

WITNESS/ATTEST:	                INTEGRATED CONCEPTS AND RESEARCH
                                CORPORATION

/s/ R. J. Hannah	           /s/ D. M. Ervine
_________________________	By:________________________(Seal)
                                   Name: D. M. Ervine
                                   Title: Chairman of the Board

WITNESS:	                G&B SOLUTIONS, INC.

/s/ R. J. Hannah	           /s/ D. M. Ervine
_________________________	By:________________________(Seal)
                                   Name: D. M. Ervine
                                   Title: Chairman of the Board

                                LENDER:
WITNESS:	                CITIZENS BANK OF PENNSYLVANIA

                                   /s/ Owen Burman
_________________________	By:_________________________(Seal)
                                   Name: Owen Burman
                                   Title: Vice PresidentExhibit 10.3
                  SEVERANCE AND MUTUAL PROTECTION AGREEMENT

	This Severance and Mutual Protection Agreement ("Agreement") is by and
between VSE Corporation ("Employer") and Thomas M. Kiernan ("Employee").
Employer and Employee will be referred to collectively as the "Parties."

	Employer is in the business of creating, sustaining, and improving the
systems, equipment, and processes of government through core competencies in
legacy systems sustainment, obsolescence management, prototyping, reverse
engineering, technology insertion, supply chain management, foreign military
sales, management consulting, and process improvement, and providing
innovative services and technologies including program management to help its
customers succeed in the engineering, energy, environment, information
technology, infrastructure and defense services markets (collectively, the
"Employer Business"). Employee acknowledges that in connection with Employee's
employment with Employer, Employee will have access to and will obtain
knowledge about Corporate Opportunities and Confidential Information of
Employer as defined below; and will develop relationships with actual and
potential customers, contractors, vendors, suppliers and employees.  Employer
acknowledges that Employee holds a key position with Employer and Employer
wishes to provide an incentive for Employee to remain employed and protection
in the event Employee is terminated without Cause or resigns for a Good Reason
as defined below.

       In consideration for Employee's initial and/or continued employment with
Employer, and for the promises contained in this Agreement, and for other good
and valuable consideration, the Parties agree to the following terms:

	1.  Duty of Loyalty:  Employee agrees that during Employee's employment
with Employer, Employee has a duty of undivided loyalty to Employer, and
Employee will not engage in any conduct that violates this duty of loyalty or
that presents a conflict between Employee's own personal interests and the
interests of Employer.

	2.  Corporate Opportunities:  During Employee's employment with
Employer, Employee promptly will inform Employer in writing of all
opportunities he becomes aware of that, given the nature of Employer Business,
reasonably would be of interest to Employer for consideration ("Corporate
Opportunities").  During and after Employee's employment with Employer,
Employee will not directly or indirectly use, disclose, divert, exploit, trade
upon, solicit, participate in or otherwise benefit from any of such Corporate
Opportunities for himself or any other party, unless Employer expressly
forever disclaims any interest in such opportunity in a written document
signed by an authorized representative of Employer.

	3.  Nondisclosure:  Except as required by law or as authorized in the
performance of Employee's duties for Employer and for the benefit of Employer,
during and after employment with Employer, Employee will not directly or
indirectly disclose or use any Confidential Information.  For the purposes of
this Agreement, "Confidential Information" means information about Employer
and/or its parents, subsidiaries and affiliated entities (collectively
"Affiliates") and its and their business, operations, finances, personnel and
customers, that is not in the public domain and that Employee obtained in the
course of employment with Employer and includes without limitation information
constituting or relating to trade secrets; Corporate Opportunities; strategic
plans; marketing plans; financial information; bid information; contract
information; personnel information; actual and potential customers; customer
lists; carrier information; contact lists; passwords, source codes and other
similar information.  Information does not lose its protection as Confidential
Information if it was disclosed by Employee or any other person in violation
of an obligation not to disclose such information.

	4.  Nonsolicitation of Employees:  During Employee's employment with
Employer and for a period of two (2) years thereafter, Employee will not, for
the benefit of Employee or any other person or entity besides Employer,
whether as an employee, consultant, independent contractor, officer, director,
shareholder (except as a shareholder of a publicly traded company in which
Employee owns less than 5% of the stock), owner, member, partner or in any
other capacity, directly or indirectly solicit for hire, any person who then
is,  an employee of Employer;  The foregoing sentence will only prohibit such
conduct where the purpose or effect of such conduct is directly or indirectly
to encourage, assist, permit, facilitate, result in, or cause the person (aa)
to cease, curtail or refrain from entering into such a relationship with
Employer; or (bb) to enter into such a relationship with any other person
engaged in a Competing Business.  For the purposes of this Agreement, a
"Competing Business" is any enterprise engaged in the Employer Business. Such
provision will not prohibit assisting with the hiring of Employer's
employee(s) if such employee(s) respond to a public job posting, provided
Employee does not direct Employer's employee(s) to the existence of such job
posting.

	5. Third Party Board membership.  Notwithstanding paragraph 1 above,
Employer shall permit Employee to serve as a member of the Board of Directors
of an unrelated company, provided such membership (1) is not with a company
which substantially is in the same Employer Business and is commonly viewed as
a competitor of Employer and (2) such membership does not pose a conflict of
interest with Employee's duty of loyalty to the Employer.  Employee shall
request written consent in writing to serve on such a Board and Employer shall
grant reasonable consent in writing.

	6.  Reasonableness and Remedies:  Employee acknowledges that the
provisions of this Agreement are reasonable and necessary for the legitimate
business interests of Employer.  Employee further agrees that in the event
Employee materially breaches any provision of this Agreement, Employer may
suffer irreparable injury that could not be adequately remedied by money
damages alone, and thus Employer would be entitled to seek and receive
appropriate injunctive relief in addition to all other relief that a court may
deem proper, including without limitation money damages.

	7.  Employment Status:  Nothing in this Agreement will guarantee that
Employee will be employed by Employer for a definite period of time, or alter
the at-will employment relationship between the Parties.  Either party may
terminate their relationship at any time for any lawful reason with or without
Cause or Good Reason as defined below.

	8.  Severance Benefits:  If at any time during Employee's employment
with Employer, Employer terminates Employee's employment without Cause or
Employee resigns for a Good Reason, Employer will provide Employee with a
severance benefit equal to continuation of Employee's base salary for twelve
months (12) months from the date of termination plus the pro-rated value up to
the date of termination of any additional compensation plans for which
Employee was then a participant, including but not limited to, the Corporate
Performance Bonus Plan, Deferred Supplemental Compensation Plan, the
Restricted Stock Plan (with automatic vesting as of the date of termination)
and all accrued annual leave earned during the period up to such termination
date, less applicable withholdings and deductions, payable in installments in
accordance with Employer's payroll practices (the "Severance Benefits").
Employee's entitlement to the Severance Benefits will be conditional upon (i)
Employee's execution of a separation agreement and mutual general release
mutually agreed upon by the Parties; and (ii) Employee's continuing compliance
with all of the terms of this Agreement.

	For the purposes of this Agreement, "Cause" shall mean Employee has (A)
engaged in gross negligence or willful misconduct in the performance of
Employee's duties; (B) willfully engaged in conduct that Employee knows or,
based on facts known to Employee, should know is materially injurious to
Employer or any of its Affiliates; (C) materially breached any provision of
this Agreement; (D) been convicted of, or entered a plea bargain or settlement
admitting guilt for, fraud, embezzlement, or any other felony (but
specifically excluding felonies involving a traffic violation); or (E)
materially violated any substantial policy of Employer, but in each case only
if Employer has provided written notice to Employee within 90 days after the
condition providing the basis for such Cause first exists and if such Cause
has not been corrected or cured by Employee (if cureable) within 30 days after
Employee has received written notice from Employer of Employer's intent to
terminate Employee's employment for Cause and specifying in detail the basis
for such termination.

	For the purposes of this Agreement, "Good Reason" means  (A) a material
diminution in Employee's base salary rate; (B) a material diminution in
Employee's authority, duties or responsibilities; (C) a material change in the
geographic location at which Employee must perform Employee's duties; or (D)
any other material breach of this Agreement by Employer, but in each case only
if Employee has provided written notice to Employer within 90 days after the
condition providing the basis for such Good Reason first exists and if such
Good Reason has not been corrected or cured by Employer (if cureable) within
30 days after Employer has received written notice from Employee of Employee's
intent to terminate Employee's employment for Good Reason and specifying in
detail the basis for such termination.

 	 9. Change in Control.  **Note: Would like to discuss what compensation
benefits there are, if any, for Officers if there is a change in control.**

	10. Severability:  The invalidity of any provision of this Agreement
will not affect the validity of any remaining provisions.  The court will
modify any invalid provisions to make them valid to the maximum extent
permitted by law.

	11. Choice of Law:  This Agreement will be governed by the law of the
Commonwealth of Virginia, without reference to the principles of conflicts of
law in that state.

	12. Waiver:  The failure of either party to enforce any provision of
this Agreement shall not in any way be construed as a waiver of such provision
in that instance or as to any future violation of that provision, nor will  it
affect the non-breaching party's right to enforce that provision or any other
provision of the Agreement.

	13. Successors and Assigns:  This Agreement will be binding upon and
will inure to the benefit of each of the Parties and their respective
successors and assigns.  Employer may assign its rights and obligations under
this Agreement to its successors and assigns.  Employee may not assign
Employee's rights and obligations under this Agreement without the prior
written consent of Employer.

	14. Section 409A: To the extent that such requirements are applicable,
this Agreement is intended to comply with the requirements of Section 409A of
the Internal Revenue Code ("Section 409A") and shall be interpreted and
administered in accordance with that intent.  If any provision of the
Agreement would otherwise conflict with or frustrate this intent, that
provision will be interpreted and deemed amended so as to avoid the conflict.
Further, for purposes of the limitations on nonqualified deferred compensation
under Section 409A, each payment of compensation under this Agreement shall be
treated as a separate payment of compensation for purposes of applying the
deferral election rules under Section 409A and the exclusion from Section 409A
for certain short-term deferral amounts.  Anything to the contrary herein
notwithstanding, in the event that any such benefit or payment is deemed to
not comply with Section 409A, Employer and Employee agree to renegotiate in
good faith any such benefit or payment so that either (i) Section 409A will
not apply or (ii) compliance with Section 409A will be achieved.
Notwithstanding the above, if Executive qualifies as a "specified employee,"
as defined in Section 409A, and incurs a separation from service for any
reason other than death and becomes entitled to a distribution under this
Agreement, then to the extent required by Section 409A, no distribution
otherwise payable to Executive during the first six (6) months after the date
of such separation from service, shall be paid to Executive until the date
which is one day after the date which is six (6) months after the date of such
separation from service (or, if earlier, the date of Executive's death).

	15. Entire Agreement:  This Agreement represents the entire agreement
of the parties, and supersedes all other agreements, discussions or
understandings of the parties concerning the subject matter.  This Agreement
may not be amended except in a written amendment signed by both Parties.

	The Parties have duly signed this Agreement, intending to be legally
bound.

EMPLOYEE				      VSE CORPORATION

Thomas M. Kiernan                             /s/ M. A. Gauthier
______________________________                _________________________________
Print Name				      Signature

/s/ Thomas M. Kiernan			      M. A. Gauthier, CEO/President/COO
_____________________________		      _________________________________
Sign Name				      Printed Name and Title

November 6, 2008			      November 7, 2008
_____________________________		      _________________________________
Date					      Date

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