Document:

exv10w1

 

Exhibit 10.1

LIMITED WAIVER REGARDING REPURCHASE OF

OUTSTANDING SENIOR NOTES

     This
LIMITED WAIVER (this “Waiver”) is dated as of
June 6, 2005 and is entered into by and
among URS CORPORATION, a Delaware corporation (“Company”), the FINANCIAL INSTITUTIONS LISTED ON THE
SIGNATURE PAGES HEREOF (the “Lenders”), CREDIT SUISSE, Cayman Islands Branch (formerly Credit
Suisse First Boston), as administrative agent for Lenders (“Administrative Agent”) and, for
purposes of Section 6 hereof, the Loan Parties other than Company listed on the signature pages
hereof (the “Subsidiary Guarantors”) and is made with reference to that certain Credit Agreement
dated as of August 22, 2002, as amended by that certain First Amendment to Credit Agreement dated
as of January 30, 2003, that certain Second Amendment to Credit Agreement dated as of November 6,
2003, that certain Third Amendment to Credit Agreement dated as of December 16, 2003, that certain
Fourth Amendment to Credit Agreement dated as of March 29, 2004, that certain Fifth Amendment to
Credit Agreement dated as of June 4, 2004, that certain Sixth Amendment to Credit Agreement dated
as of November 29, 2004 and that certain Seventh Amendment to Credit Agreement dated as of January
27, 2005 (as so amended and as further amended, modified, restated or otherwise supplemented to the
date hereof, the “Credit Agreement”), by and among Company, Lenders, CREDIT SUISSE FIRST BOSTON, as
a Co-Lead Arranger and Administrative Agent for Lenders, WELLS FARGO BANK, NATIONAL ASSOCIATION, as
a Co-Lead Arranger and Syndication Agent for Lenders, and BNP PARIBAS, HARRIS TRUST & SAVINGS BANK
and THE ROYAL BANK OF SCOTLAND PLC, as Co-Documentation Agents for Lenders. Capitalized terms used
herein without definition shall have the same meanings herein as set forth in the Credit Agreement.

RECITALS

     WHEREAS, Company and the Lenders desire to waive compliance with certain provisions related to
the repurchase of all outstanding Senior Notes;

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

Section 1. WAIVER

     Subject to the terms and conditions set forth herein and in reliance on the representations
and warranties of Company herein contained, the undersigned Lenders, constituting Requisite
Lenders, hereby waive compliance with the provisions of subsections 2.4B(iii)(c) and 7.5B of the
Credit Agreement to the extent, and only to the extent, necessary to permit Company, prior to the
date that is 180 days following the date hereof, to use the Net Securities Proceeds from the
issuance of the Capital Stock of Company, together with Cash on hand and the proceeds of Revolving
Loans, to repurchase the outstanding Senior Notes.

 

 

Section 2. LIMITATION OF WAIVER

     Without limiting the generality of the provisions of subsection 10.6 of the Credit Agreement,
the waiver set forth above shall be limited precisely as written and relates solely to the
noncompliance by Company with the provisions of subsections 2.4B(iii)(c) and 7.5B of the Credit
Agreement in the manner and to the extent described above, and nothing in this Waiver shall be
deemed to:

     (a) constitute a waiver of compliance by Company with respect to (i) subsections 2.4B(iii)(c)
and 7.5B of the Credit Agreement in any other instance or (ii) any other term, provision or
condition of the Credit Agreement or any other instrument referred to therein; or

     (b) prejudice any right or remedy that Administrative Agent or any Lender may now have (except
to the extent such right or remedy was based upon existing defaults that will not exist after
giving effect to this Waiver) or may have in the future under or in connection with the Credit
Agreement or any other instrument or agreement referred to therein.

     Except as expressly set forth herein, the terms, provisions and conditions of the Credit
Agreement and the other Loan Documents shall remain in full force and effect and in all other
respects are hereby ratified and confirmed.

Section 3. REPRESENTATIONS AND WARRANTIES

     In order to induce Lenders to enter into this Waiver, Company hereby represents and warrants
that:

     (a) as of the date hereof, there exists no Event of Default or Potential Event of Default
under the Credit Agreement;

     (b) all representations and warranties contained in the Credit Agreement and the other Loan
Documents are true, correct and complete in all material respects on and as of the date hereof
except to the extent such representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete in all material respects on and as of such earlier
date; and

     (c) as of the date hereof, Company has performed all agreements to be performed on its part as
set forth in the Credit Agreement.

Section 4. COUNTERPARTS; EFFECTIVENESS

     This Waiver may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed an original,
but all such counterparts together shall constitute but one and the same

Limited Waiver

2

 

instrument; signature pages may be detached from multiple separate counterparts and attached to a
single counterpart so that all signature pages are physically attached to the same document. This
Waiver shall become effective as of the date hereof upon the execution of counterparts hereof by
Company and Subsidiary Guarantors and by Lenders constituting Requisite Lenders and receipt by
Company and Administrative Agent of written or telephonic notification of such execution and
authorization of delivery thereof.

Section 5. GOVERNING LAW

     THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD
TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF ANOTHER LAW.

Section 6. ACKNOWLEDGEMENT AND CONSENT BY SUBSIDIARY GUARANTORS

     Each Subsidiary Guarantor hereby acknowledges that it has read this Waiver and consents to the
terms thereof and further hereby confirms and agrees that, notwithstanding the effectiveness of
this Waiver, the obligations of Subsidiary Guarantor under the Subsidiary Guaranty shall not be
impaired or affected and the Subsidiary Guaranty is, and shall continue to be, in full force and
effect and is hereby confirmed and ratified in all respects.

[Remainder of page intentionally left blank.]

Limited Waiver

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	URS CORPORATION, a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CREDIT SUISSE, Cayman Islands Branch 
(formerly Credit Suisse First Boston),
	 	 	Individually and as Administrative Agent
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ S. William Fox	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	Director	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ David Dodd	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	Vice President	 	 
	

	 	 	 	 	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	[SUBSIDIARY GUARANTORS:]
	 	 	 	 	 	 
	 	 	AMAN ENVIRONMENTAL CONSTRUCTION, INC.,
 a California corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BANSHEE CONSTRUCTION
COMPANY, INC.,
	 	 	a California corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Rita Armstrong	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Rita Armstrong	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	CLEVELAND WRECKING COMPANY,
	 	 	a California corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Rita Armstrong	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Rita Armstrong	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	EG&G DEFENSE MATERIALS, INC.,
	 	 	a Utah corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ William Neeb	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	William Neeb	 	 
	

	 	Title:
	 	Vice President, Chief Financial Officer,
Assistant Secretary and Assistant Treasurer	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	 	 	EG&G TECHNICAL SERVICES, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	D&M CONSULTING ENGINEERS, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and
Chief Financial Officer	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	 	 	E.C. DRIVER & ASSOCIATES, INC.,
	 	 	a Florida corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and
Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	LEAR SIEGLER LOGISTICS INTERNATIONAL, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	LEAR SIEGLER SERVICES, INC.
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RADIAN ENGINEERING, INC.
	 	 	a New York corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President,
Chief Financial Officer and Secretary	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	 	 	URS CORPORATION AES,
	 	 	a Connecticut corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and
Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	URS CORPORATION
ARCHITECTURE - NC, P.C.,
	 	 	a North Carolina corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and
Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	URS CORPORATION —NEW YORK,
	 	 	a New York corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Peter J. Pedalino	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Peter J. Pedalino	 	 
	

	 	Title:
	 	Vice President, Treasurer and
Controller	 	 
	 
	 	 	 	 	 	 
	 	 	URS RESOURCES, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Member Representative	 	 
	 
	 	 	 	 	 	 
	 	 	RADIAN INTERNATIONAL LLC,
	 	 	a Delaware limited liability company

	 	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	 	 	SIGNET TESTING
LABORATORIES, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Rita Armstrong 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Rita Armstrong	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	URS CONSTRUCTION SERVICES, INC.,
	 	 	a Florida corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and
Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	URS CORPORATION, a Nevada
	 	 	corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	URS CORPORATION GREAT LAKES,
	 	 	a Michigan corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Kent P. Ainsworth 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Kent P. Ainsworth	 	 
	

	 	Title:
	 	Executive Vice President and
Chief Financial Officer	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	 	 	URS CORPORATION–MARYLAND, a
	 	 	Maryland corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	URS
CORPORATION–OHIO, an Ohio
 corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	URS CORPORATION SOUTHERN, a
	 	 	California corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	

	 	URS GROUP, INC., a Delaware corporation

	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Assistant Treasurer	 	 

Limited Waiver

 

 

	 	 	 	 	 	 	 
	 	 	URS HOLDINGS, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	URS INTERNATIONAL INC., a Delaware
	 	 	corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Judy L. Rodgers	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Judy L. Rodgers	 	 
	

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	URS OPERATING SERVICES, INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	/s/ Peter J. Pedalino	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Peter J. Pedalino	 	 
	

	 	Title:
	 	Vice President and Controller	 	 

Limited Waiver

 

 

	 	 	 	 	 
	 	 	Landmark II CDO Limited

By: Aladdin Capital Management LLC, as manager,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joseph Moroney

Name: Joseph Moroney, CFA

Title: Authorized Signatory
	 
	 	 	 	 
	 	 	BNP PARIBAS,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Katherine Wolfe

Name: Katherine Wolfe

Title: Director
	 
	 	 	 	 
	

	 	By:
	 	/s/ Sandy Bertram

Name: Sandy Bertram

Title: Vice President
	 
	 	 	 	 
	 	 	Bank Leumi USA,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joung Hee Hong

Name: Joung Hee Hong

Title: Vice President
	 
	 	 	 	 
	 	 	Bank of America, N.A.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael J. Landini

Name: Michael J. Landini

Title: Senior Vice President
	 
	 	 	 	 
	 	 	Callidus Debt Partners CDO Fund I, Ltd.

By: Its Collateral Manager, Callidus Capital Management, LLC,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mavis Taintor

Name: Mavis Taintor

Title: Senior Managing Director

 

 

	 	 	 	 	 
	 	 	Callidus Debt Partners CDO Fund II, Ltd.

By: Its Collateral Manager, Callidus Capital Management, LLC,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mavis Taintor

Name: Mavis Taintor

Title: Senior Managing Director
	 
	 	 	 	 
	 	 	Callidus Debt Partners CDO Fund III, Ltd.

By: Its Collateral Manager, Callidus Capital Management, LLC,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mavis Taintor

Name: Mavis Taintor

Title: Senior Managing Director
	 
	 	 	 	 
	 	 	Denali Capital LLC, managing member of DC Funding

Partners, portfolio manager for DENALI CAPITAL CLO I,

LTD., or an affiliate,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John P. Thacker

Name: John P. Thacker

Title: Chief Credit Officer
	 
	 	 	 	 
	 	 	Denali Capital LLC, managing member of DC Funding

Partners, portfolio manager for DENALI CAPITAL CLO II,

LTD., or an affiliate,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John P. Thacker

Name: John P. Thacker

Title: Chief Credit Officer

 

 

	 	 	 	 	 
	 	 	Denali Capital LLC, managing member of DC Funding

Partners, portfolio manager for DENALI CAPITAL CLO III,

LTD., or an affiliate,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John P. Thacker

Name: John P. Thacker

Title: Chief Credit Officer
	 
	 	 	 	 
	 	 	ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John Fay

Name: John Fay

Title: Director
	 
	 	 	 	 
	

	 	By:
	 	/s/ Bryan Lynch

Name: Bryan Lynch

Title: First Vice President
	 
	 	 	 	 
	 	 	General Electric Capital Corporation,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Brian Schwinn

Name: Brian Schwinn

Title: Duly Authorized Signatory
	 
	 	 	 	 
	 	 	Harris N.A.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joann Holman

Name: Joann Holman

Title: Director
	 
	 	 	 	 
	 	 	IKB Capital Corporation,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ David Snyder

Name: David Snyder

Title: President

 

 

	 	 	 	 	 
	 	 	National City Bank,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Frank Byrne

Name: Frank Byrne

Title: AVP
	 
	 	 	 	 
	 	 	NATIONWIDE MUTUAL INSURANCE CO.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joseph P. Young

Name: Joseph P. Young

Title: Authorized Signatory
	 
	 	 	 	 
	 	 	SCOTTSDALE INSURANCE CO.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joseph P. Young

Name: Joseph P. Young

Title: Authorized Signatory
	 
	 	 	 	 
	 	 	AMCO INSURANCE CO.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joseph P. Young

Name: Joseph P. Young

Title: Authorized Signatory
	 
	 	 	 	 
	 	 	The Norinchukin Bank, New York Branch,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Masanori Shoji

Name: Masanori Shoji

Title: Joint General Manager
	 
	 	 	 	 
	 	 	North Fork Business Capital Corp.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ron Walker

Name: Ron Walker

Title: VP

 

 

	 	 	 	 	 
	 	 	OAK HILL SECURITIES FUND, L.P.,
	 
	 	 	 	 
	 	 	By: Oak Hill Securities GenPar, L.P.

its General Partner
	 
	 	 	 	 
	 	 	By: Oak Hill Securities MGP, Inc.,

its General Partner
	 
	 	 	 	 
	

	 	By:
	 	/s/ Scott D. Krase

Name: Scott D. Krase

Title: Vice President
	 
	 	 	 	 
	 	 	OAK HILL SECURITIES FUND II, L.P.,
	 
	 	 	 	 
	 	 	By: Oak Hill Securities GenPar II, L.P.

its General Partner
	 
	 	 	 	 
	 	 	By: Oak Hill Securities MGP II, Inc.,

its General Partner
	 
	 	 	 	 
	

	 	By:
	 	/s/ Scott D. Krase

Name: Scott D. Krase

Title: Vice President
	 
	 	 	 	 
	 	 	OAK HILL CREDIT PARTNERS I, LIMITED
	 
	 	 	 	 
	 	 	By: Oak Hill CLO Management I, LLC

As Investment Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Scott D. Krase

Name: Scott D. Krase

Title: Vice President
	 
	 	 	 	 
	 	 	OAK HILL CREDIT PARTNERS II, LIMITED
	 
	 	 	 	 
	 	 	By: Oak Hill CLO Management II, LLC

As Investment Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Scott D. Krase

Name: Scott D. Krase

Title: Vice President

 

 

	 	 	 	 	 
	 	 	Pacific CDO II, Ltd.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Phil Otero

Name: Phil Otero

Title: Senior Vice President
	 
	 	 	 	 
	 	 	Pacific CDO III, Ltd.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Phil Otero

Name: Phil Otero

Title: Senior Vice President
	 
	 	 	 	 
	 	 	PILGRIM CLO 1999-1 LTD.

By: ING Investments, LLC

As its investment manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert Wilson

Name: Robert Wilson

Title: Senior Vice President
	 
	 	 	 	 
	 	 	ML CLO XII PILGRIM AMERICA (CAYMAN) LTD.

By: ING Investments, LLC

As its investment manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert Wilson

Name: Robert Wilson

Title: Senior Vice President
	 
	 	 	 	 
	 	 	ML CLO XV PILGRIM AMERICA (CAYMAN) LTD.

By: ING Investments, LLC

As its investment manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert Wilson

Name: Robert Wilson

Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	ING SENIOR INCOME FUND

By: ING Investment Management Co.

As its investment manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert Wilson

Name: Robert Wilson

Title: Senior Vice President
	 
	 	 	 	 
	 	 	PPM SHADOW CREEK FUNDING LLC

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Meredith J. Koslick

Name: Meredith J. Koslick

Title: Assistant Vice President
	 
	 	 	 	 
	 	 	PPM SPYGLASS FUNDING TRUST

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Meredith J. Koslick

Name: Meredith J. Koslick

Title: Assistant Vice President
	 
	 	 	 	 
	 	 	The Royal Bank of Scotland,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Curt Lueker

Name: Curt Lueker

Title: Director
	 
	 	 	 	 
	 	 	Granite Ventures I Ltd,

By: Stone Tower Debt Advisors

as its Collateral Manager,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ W. Anthony Edson

Name: W. Anthony Edson

Title: Authorized Signatory

 

 

	 	 	 	 	 
	 	 	Stone Tower CLO III Ltd,

By: Stone Tower Debt Advisors

as its Collateral Manager,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ W. Anthony Edson

Name: W. Anthony Edson

Title: Authorized Signatory
	 
	 	 	 	 
	 	 	STANWICH LOAN FUNDING LLC,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Meredith J. Koslick

Name: Meredith J. Koslick

Title: Assistant Vice President
	 
	 	 	 	 
	 	 	Toronto Dominion (New York), LLC,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Masood Fikrec

Name: Masood Fikrec

Title: Authorized Signatory
	 
	 	 	 	 
	 	 	Transamerica Business Capital Corporation,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Brian Schwinn

Name: Brian Schwinn

Title: Duly Authorized Signatory
	 
	 	 	 	 
	 	 	Trumbull THC2 Loan Funding LLC,

for itself or as agent for Trumbull THC2 CFP1 Loan

Funding LLC,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Dominic Blea

Name: Dominic Blea

Title: As Attorney-in-Fact

 

 

	 	 	 	 	 
	 	 	Union Bank of California, N.A.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ David Jackson

Name: David Jackson

Title: Vice President
	 
	 	 	 	 
	 	 	Union Bank National Association,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ David Jackson

Name: David Jackson

Title: Vice President
	 
	 	 	 	 
	 	 	Wachovia Bank, N.A.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John G. Taylor

Name: John G. Taylor

Title: Vice President
	 
	 	 	 	 
	 	 	Wells Fargo,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Marsha Poenisch

Name: Marsh Poenisch

Title: Vice Presidentexv10w2

 

Exhibit 10.2

3,636,721 Shares

URS CORPORATION

COMMON STOCK, PAR VALUE $0.01 PER SHARE

UNDERWRITING AGREEMENT

June 8, 2005

 

 

June 8, 2005

Morgan Stanley & Co. Incorporated

Merrill Lynch, Pierce, Fenner & Smith

          
Incorporated

c/o Morgan Stanley & Co. Incorporated

     1585 Broadway

     New York, New York 10036

Dear Sirs and Mesdames:

     URS Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to the
several Underwriters named in Schedule I hereto (the
“Underwriters”) 3,636,721 shares of Common Stock, par
value $0.01 per share, of the Company (the “Firm Shares”). The Company also proposes to issue and
sell to the several Underwriters not more than an additional 363,672 shares of its Common Stock, par
value $0.01 per share (the “Additional Shares”), if and to the extent that you, as Managers of the
offering, shall have determined to exercise, on behalf of the Underwriters, the right to purchase
such shares granted to the Underwriters in Section 2 hereof. The Firm Shares and the Additional
Shares are hereinafter collectively referred to as the “Shares”. The shares of Common Stock, par
value $0.01 per share, of the Company to be outstanding after giving effect to the sales
contemplated hereby are hereinafter referred to as the “Common Stock”.

     The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-3 (No. 333-112216), including a prospectus, relating to the Shares
and the offering thereof from time to time in accordance with Rule 415 of the rules and regulations
of the Commission under the Securities Act (the “Securities Act Regulations”), and has filed with,
or transmitted for filing to, or shall promptly hereafter file with or transmit for filing to, the
Commission (i) a prospectus supplement (the “Prospectus Supplement”) specifically relating to the
Shares pursuant to Rule 424 under the Securities Act of 1933, as amended (the “Securities Act”),
and (ii) a related prospectus dated March 1, 2004 (the “Base Prospectus”). Such registration
statement has been declared effective by the Commission. Such registration statement, as amended
to the date hereof and including the abbreviated registration statement registering additional
shares of Common Stock pursuant to Rule 462(b) under the Securities Act (the “Rule 462 Registration
Statement”) filed by the Company on June 1, 2005, is referred to herein as the “Registration
Statement”; and the Base Prospectus and the Prospectus Supplement, in the form first used to
confirm sales of the Shares, are collectively referred to herein as the “Prospectus”; provided,
however, that all references to the “Registration Statement” and the “Prospectus” shall also be
deemed to include all documents incorporated therein by reference pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).

     1. Representations and Warranties. The Company represents and warrants to and agrees with
each of the Underwriters that:

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     (a) The Registration Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no proceedings for such
purpose are pending before or threatened by the Commission.

     (b) (i) Each document, if any, filed or to be filed pursuant to the Exchange Act, and
incorporated by reference in the Prospectus complied or will comply when so filed in all
material respects with the Exchange Act and the applicable rules and regulations of the
Commission thereunder, (ii) the Registration Statement, when it became effective and when
the Company’s most recent Annual Report on Form 10-K/A was filed with the Commission, did
not contain and, as amended or supplemented, if applicable, will not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, (iii) the Registration Statement
and the Prospectus comply and, as amended or supplemented, if applicable, will comply in all
material respects with the Securities Act and the applicable Securities Act Regulations and
(iv) the Prospectus does not contain and, as amended or supplemented, if applicable, will
not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, except that the representations and warranties set forth in this
paragraph do not apply to statements or omissions in the Registration Statement or the
Prospectus based upon information relating to any Underwriter furnished to the Company in
writing by such Underwriter through you expressly for use therein.

     (c) The Company has been duly incorporated, is validly existing as a corporation in
good standing under the laws of the jurisdiction of its incorporation, has the corporate
power and authority to own its property and to conduct its business as described in the
Prospectus and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so qualified or be
in good standing would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole.

     (d) Each subsidiary of the Company has been duly incorporated or formed, is validly
existing as a corporation in good standing under the laws of the jurisdiction of its
incorporation or formation, has the corporate or limited liability company power and
authority to own its property and to conduct its business as described in the Prospectus and
is duly qualified to transact business and is in good standing in each jurisdiction in which
the conduct of its business or its ownership or leasing of property requires such
qualification, except to the extent that the failure to be so qualified or be in good
standing would not have a material adverse effect on the Company and its subsidiaries, taken
as a whole; all of the issued shares of capital stock of each subsidiary of the Company that
is a corporation and all of the issued limited liability company interests of each
subsidiary that is a limited liability company have been duly and validly authorized and
issued, are fully paid and non-assessable and are owned directly or beneficially by the
Company or through wholly owned subsidiaries of the Company, free and clear of all liens,
encumbrances, equities or claims (except in each case as disclosed in the Prospectus).

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     (e) This Agreement has been duly authorized, executed and delivered by the Company.

     (f) The authorized capital stock of the Company conforms as to legal matters to the
description thereof contained in the Prospectus.

     (g) The shares of Common Stock outstanding prior to the issuance of the Shares have
been duly authorized and are validly issued, fully paid and non-assessable.

     (h) The Shares have been duly authorized and, when issued and delivered in accordance
with the terms of this Agreement, will be validly issued, fully paid and non-assessable, and
the issuance of such Shares will not be subject to any preemptive or similar rights.

     (i) The execution and delivery by the Company of, and the performance by the Company of
its obligations under, this Agreement will not contravene any provision of applicable law or
the certificate of incorporation or by-laws of the Company or any agreement or other
instrument binding upon the Company or any of its subsidiaries that is material to the
Company and its subsidiaries, taken as a whole, or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the Company or any subsidiary,
and no consent, approval, authorization or order of, or qualification with, any governmental
body or agency is required for the performance by the Company of its obligations under this
Agreement, except such as may be required by the securities or Blue Sky laws of the various
states in connection with the offer and sale of the Shares.

     (j) There has not occurred any material adverse change, or any development involving a
prospective material adverse change, in the condition, financial or otherwise, or in the
earnings, business or operations of the Company and its subsidiaries, taken as a whole, from
that set forth in the Prospectus (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement).

     (k) There are no legal or governmental proceedings pending or threatened to which the
Company or any of its subsidiaries is a party or to which any of the properties of the
Company or any of its subsidiaries is subject that are required to be described in the
Registration Statement or the Prospectus and are not so described or any statutes,
regulations, contracts or other documents that are required to be described in the
Registration Statement or the Prospectus or to be filed as exhibits to the Registration
Statement that are not described or filed as required or described in a document
incorporated by reference into the Registration Statement.

     (l) Each preliminary prospectus or preliminary prospectus supplement filed as part of
the Registration Statement as originally filed or as part of any amendment thereto, or filed
pursuant to Rule 424 under the Securities Act, complied when so filed in all material
respects with the Securities Act and the Securities Act Regulations.

     (m) The Company is not, and after giving effect to the offering and sale of the Shares
and the application of the proceeds thereof as described in the Prospectus will not

3

 

be, required to register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

     (n) Except as disclosed in the Prospectus, the Company and its subsidiaries (i) are in
compliance with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”),
(ii) have received all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval, except
where such noncompliance with Environmental Laws, failure to receive required permits,
licenses or other approvals or failure to comply with the terms and conditions of such
permits, licenses or approvals would not, singly or in the aggregate, reasonably be expected
to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

     (o) Except as disclosed in the Prospectus, there are no costs or liabilities associated
with Environmental Laws (including, without limitation, any capital or operating
expenditures required for clean-up, closure of properties or compliance with Environmental
Laws or any permit, license or approval, any related constraints on operating activities and
any potential liabilities to third parties) which would, singly or in the aggregate,
reasonably be expected to have a material adverse effect on the Company and its
subsidiaries, taken as a whole.

     (p) Except for the Registration Rights Agreement dated as of August 22, 2002, by and
among the Company, Blum Strategic Partners, L.P., Blum Capital Partners, L.P., Carlyle-EG&G,
L.L.C. and EG&G Technical Services Holdings, L.L.C., there are no contracts, agreements or
understandings between the Company and any person granting such person the right to require
the Company to file a registration statement under the Securities Act with respect to any
securities of the Company or to require the Company to include such securities with the
Shares registered pursuant to the Registration Statement.

     (q) The Company and each of its subsidiaries (i) have all necessary consents,
authorizations, approvals, orders, certificates and permits of and from, and have made all
declarations and filings with, all federal, state, local and other governmental,
administrative or regulatory authorities, all self-regulatory organizations and all courts
and other tribunals, to own, lease, license and use their respective properties and assets
and to conduct their respective businesses in the manner described in the Prospectus, except
to the extent that the failure to obtain such consents, authorizations, approvals, orders,
certificates and permits or make such declarations and filings would not have a material
adverse effect on the Company and its subsidiaries, taken as a whole, and (ii) have not
received any notice of proceedings relating to revocation or modification of any such
consent, authorization, approval, order, certificate or permit which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, would have a
material adverse effect on the Company and its subsidiaries, taken as a whole, except as
described in the Prospectus.

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     (r) No material labor dispute exists with the employees of the Company or any of its
subsidiaries, except as described in or contemplated by the Prospectus, or, to the Company’s
knowledge, is imminent; and the Company is not aware of any existing, threatened or imminent
labor disturbance by the employees of any of its principal suppliers, manufacturers or
contractors that could have a material adverse effect on the Company and its subsidiaries,
taken as a whole.

     (s) The Company and its subsidiaries have good and marketable title in fee simple to
all real property and good and marketable title to all personal property owned by them which
is material to their respective businesses, in each case free and clear of all liens,
encumbrances and defects, except such as (i) are described in the Prospectus, (ii) do not
materially affect the value of such property or (iii) do not interfere with the use made and
proposed to be made of such property by them; and any real property and buildings held under
lease by them are held under valid, subsisting and enforceable leases with such exceptions
as are not material and do not materially interfere with the use made and proposed to be
made of such property and buildings by them, in each case except as described in the
Prospectus.

     (t) Each of the Company and its subsidiaries own, possess or can acquire on reasonable
terms, adequate trademarks, trade names and other rights to inventions, know-how, patents,
copyrights, confidential information and other intellectual property (collectively,
“intellectual property rights”) necessary to conduct the business now operated by them, or
presently employed by them, and have not received any notice of infringement of or conflict
with asserted rights of others with respect to any intellectual property rights that, if
determined adversely to the Company or any of its subsidiaries would individually or in the
aggregate reasonably be expected to have a material adverse effect on the Company and its
subsidiaries, taken as a whole.

     (u) URS Holdings, Inc., a Delaware corporation (“URS Holdings”); EG&G Technical
Services, a Delaware corporation (“EG&G”); URS Corporation, a Nevada corporation (“URS
Nevada”); and URS Corporation – New York, a New York corporation (“URS New York”) are the
only significant subsidiaries of the Company (calculated on a basis consistent with the term
“significant subsidiary” as defined under Regulation S-X promulgated under the Securities
Act for the period ended October 31, 2004).

     (v) The financial statements and related notes included in the Registration Statement
and Prospectus present fairly the financial position of the Company and its consolidated
subsidiaries as of the dates shown and their results of operations and cash flows for the
periods shown, and such financial statements and the notes thereto have been prepared in
conformity with generally accepted accounting principles in the United States applied on a
consistent basis except as disclosed therein.

     (w) The Company and its subsidiaries maintain systems of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with

5

 

generally accepted accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any
differences.

     (x) There is and has been no failure on the part of the Company or any of the Company’s
directors or officers, in their capacities as such, to comply with Section 402 (related to
loans) and Sections 302 and 906 (related to certifications) of the Sarbanes-Oxley Act of
2002 (the “Sarbanes-Oxley Act”) and the rules and regulations promulgated in connection
therewith (the “Sarbanes-Oxley Regulations”), nor has there been any failure on the part of
the Company or any of the Company’s directors or officers, in their capacities as such, to
comply with any other provision of the Sarbanes-Oxley Act or the Sarbanes-Oxley Regulations.

     2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the several
Underwriters, and each Underwriter, upon the basis of the representations and warranties herein
contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to
purchase from the Company at $32.775 a share (the “Purchase Price”) the number of Firm Shares set forth
in Schedule I hereto opposite its name.

     On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, the Company agrees to sell to the Underwriters the Additional Shares, and
the Underwriters shall have the right to purchase, severally and not
jointly, up to 363,672 Additional
Shares at the Purchase Price. You may exercise this right on behalf of the Underwriters in whole
or from time to time in part by giving written notice of each election to exercise the option not
later than 30 days after the date of this Agreement. Any exercise notice shall specify the number
of Additional Shares to be purchased by the Underwriters and the date on which such shares are to
be purchased. Each purchase date must be at least two business days after the written notice is
given and may not be earlier than the closing date for the Firm Shares nor later than ten business
days after the date of such notice. Additional Shares may be purchased as provided in Section 4
hereof solely for the purpose of covering over-allotments made in connection with the offering of
the Firm Shares. On each day, if any, that Additional Shares are to be purchased (an “Option
Closing Date”), each Underwriter agrees, severally and not jointly, to purchase the number of
Additional Shares (subject to such adjustments to eliminate fractional shares as you may determine)
that bears the same proportion to the total number of Additional Shares to be purchased on such
Option Closing Date as the number of Firm Shares set forth in Schedule I hereto opposite the name
of such Underwriter bears to the total number of Firm Shares.

     The Company hereby agrees that, without the prior written consent of Morgan Stanley & Co.
Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated on behalf of the Underwriters,
it will not, during the period ending 90 days after the date of the Prospectus, (i) offer, pledge,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock or file any registration statement with the

6

 

Commission relating to the offering of any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock or (ii) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise.

     The restrictions contained in the preceding paragraph shall not apply to (A) the Shares to be
sold hereunder; (B) the issuance by the Company of shares of Common Stock upon the exercise of
options granted under the Company’s employee benefit plans that are outstanding as of the date of
this Agreement; (C) the grant by the Company of options to purchase shares of Common Stock under
the Company’s employee benefit plans as in effect on the date hereof, so long as such plans are
described in the Registration Statement and the Prospectus or in a document incorporated therein by
reference; or (D) the issuance by the Company of shares of Common Stock under the Company’s
employee stock purchase plan as in effect on the date hereof, so long as such plan is described in
the Registration Statement and the Prospectus or in a document incorporated therein by reference.

     3. Terms of Public Offering. The Company is advised by you that the Underwriters propose to
make a public offering of their respective portions of the Shares as soon after this Agreement has
become effective as in your judgment is advisable. The Company is further advised by you that the
Shares are to be offered to the public initially at $34.50 a share (the “Public Offering Price”) and to
certain dealers selected by you at a price that represents a
concession not in excess of $1.12 a share
under the Public Offering Price.

     4. Payment and Delivery. Payment for the Firm Shares shall be made to the Company in Federal
or other funds immediately available in New York City against delivery of such Firm Shares for the
respective accounts of the several Underwriters at 10:00 a.m.,
New York City time, on June 14, 2005,
or at such other time on the same or such other date, not later than
June 21, 2005, as shall be
designated in writing by you. The time and date of such payment are hereinafter referred to as the
“Closing Date”.

     Payment for any Additional Shares shall be made to the Company in Federal or other funds
immediately available in New York City against delivery of such Additional Shares for the
respective accounts of the several Underwriters at 10:00 a.m., New York City time, on the date
specified in the corresponding notice described in Section 2 or at such other time on the same or
on such other date, in any event not later than July 22, 2005, as shall be designated in writing by you.

     The Firm Shares and Additional Shares shall be registered in such names and in such
denominations as you shall request in writing not later than one full business day prior to the
Closing Date or the applicable Option Closing Date, as the case may be. The Firm Shares and
Additional Shares shall be delivered to you on the Closing Date or an Option Closing Date, as the
case may be, for the respective accounts of the several Underwriters, with any transfer taxes
payable in connection with the transfer of the Shares to the Underwriters duly paid, against
payment of the Purchase Price therefor.

7

 

     5. Conditions to the Underwriters’ Obligations. The obligations of the Company to sell the
Shares to the Underwriters and the several obligations of the Underwriters to purchase and pay for
the Shares on the Closing Date are subject to the condition that no stop order suspending the
effectiveness of the Registration Statement shall have been issued under the Securities Act or
proceedings therefor initiated or threatened by the Commission.

     The several obligations of the Underwriters are subject to the following further conditions:

     (a) Subsequent to the execution and delivery of this Agreement and prior to the Closing
Date:

     (i) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded any of the Company’s securities by any “nationally recognized statistical
rating organization,” as such term is defined for purposes of Rule 436(g)(2) under
the Securities Act; and

     (ii) there shall not have occurred any change, or any development involving a
prospective change, in the condition, financial or otherwise, or in the earnings,
business or operations of the Company and its subsidiaries, taken as a whole, from
that set forth in the Prospectus (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement) that, in your judgment, is material and
adverse and that makes it, in your judgment, impracticable to market the Shares on
the terms and in the manner contemplated in the Prospectus.

     (b) The Underwriters shall have received on the Closing Date a certificate, dated the
Closing Date and signed by an executive officer of the Company, to the effect set forth in
Section 5(a)(i) above and to the effect that the representations and warranties of the
Company contained in this Agreement are true and correct as of the Closing Date and that the
Company has complied with all of the agreements and satisfied all of the conditions on its
part to be performed or satisfied hereunder on or before the Closing Date.

     The officer signing and delivering such certificate may rely upon the best of his knowledge as
to proceedings threatened.

     (c) The Underwriters shall have received on the Closing Date an opinion of Cooley
Godward LLP, outside counsel for the Company, dated the Closing Date, to the effect that:

     (i) the Company has been duly incorporated, is validly existing as a
corporation in good standing under the laws of the State of Delaware, has the
corporate power and authority to own its property and to conduct its business as
described in the Prospectus and, to such counsel’s knowledge, is duly qualified to
transact business and is in good standing in each

8

 

state of the United States in which the conduct of its business or its
ownership or leasing of property requires such qualification, except to the extent
that the failure to be so qualified or be in good standing would not have a material
adverse effect on the Company and its subsidiaries, taken as a whole;

     (ii) each of URS Holdings and EG&G (each, a “Covered Subsidiary” and together,
the “Covered Subsidiaries”), has been duly incorporated, is validly existing as a
corporation in good standing under the laws of the jurisdiction of its
incorporation, and has the corporate power and authority to own its property and to
conduct its business as described in the Prospectus;

     (iii) the authorized capital stock of the Company conforms as to legal matters
to the description thereof contained in the Prospectus under the caption
“Description of Capital Stock” and in the Form 8-A dated January 30, 1984 under the
caption “Description of Capital Stock” (which incorporates by reference the
description of the Common Stock contained in the Registration Statement on Form S-1
filed on February 28, 1983);

     (iv) the outstanding shares of Common Stock have been duly authorized and are
validly issued, fully paid and non-assessable;

     (v) the Shares have been duly authorized and, when issued and delivered in
accordance with the terms of this Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Shares will not be subject to any
preemptive rights, or to such counsel’s knowledge, similar rights;

     (vi) this Agreement has been duly authorized, executed and delivered by the
Company;

     (vii) the execution and delivery by the Company of, and the performance by the
Company of its obligations under, this Agreement will not contravene any provision
of applicable law (except for Section 8 relating to indemnity and contribution as to
which such counsel need not express any opinion) or the certificate of incorporation
or by-laws of the Company or any agreement or other instrument binding upon the
Company or any of its subsidiaries that is (A) filed as an exhibit to the
Registration Statement or any document incorporated by reference therein, (B)
incorporated by reference in the Registration Statement or (C) which the Company has
advised such counsel will be filed as an exhibit to the Company’s next quarterly
report on Form 10-Q or on a Form 8-K and was executed by the Company prior to the
date of such opinion, or to the best of such counsel’s knowledge, any judgment,
order or decree of any governmental body, agency or court having jurisdiction over
the Company or any of its subsidiaries, and no consent, approval, authorization or
order of, or qualification with, any governmental body or agency is required for the
performance by the Company of its obligations under this Agreement, except such as
have been made or obtained or except such as may be required by the securities

9

 

or Blue Sky laws of the various states in connection with the offer and sale of
the Shares;

     (viii) the statements in (A) the Prospectus under the captions “Description of
Capital Stock” and “Underwriters” and (B) the Registration Statement in Item 15, in
each case insofar as such statements constitute matters of law, summaries of legal
matters, provisions of the Company’s certificate of incorporation or by-laws or
other equivalent corporate governance documents or legal proceedings, or legal
conclusions, have been reviewed by such counsel and fairly present, to the extent
required by the Securities Act and the Securities Act Regulations, the matters
referred to therein;

     (ix) such counsel does not know of any legal or governmental proceedings
pending or overtly threatened to which the Company or any of its subsidiaries is a
party or to which any of the properties of the Company or any of its subsidiaries is
subject that are required to be described in the Registration Statement or the
Prospectus and are not so described or of any statutes, regulations, contracts or
other documents that are required to be described in the Registration Statement or
the Prospectus that are not so described or described in documents incorporated by
reference in the Registration Statement as required;

     (x) the Company is not, and after giving effect to the offering and sale of the
Shares and the application of the proceeds thereof as described in the Prospectus
will not be, required to register as an “investment company” as such term is defined
in the Investment Company Act of 1940, as amended; and

     (xi) to such counsel’s knowledge, (A) each document filed pursuant to the
Exchange Act and incorporated by reference in the Registration Statement or the
Prospectus (except for the financial statements and financial schedules and other
financial and statistical data derived therefrom, as to which such counsel need not
express any belief) complied as to form when filed in all material respects with the
requirements of the Exchange Act, and the applicable rules and regulations of the
Commission thereunder and (B) the Registration Statement or the Prospectus (except
for the financial statements and financial schedules and other financial and
statistical data derived therefrom, as to which such counsel need not express any
belief) complied as to form in all material respects with the requirements of the
Securities Act and the applicable rules and regulations of the Commission
thereunder. In addition, such counsel shall confirm that such counsel has
participated in conferences with officers and other representatives of the Company
and the independent public accountants of the Company and representatives of the
Underwriters at which conferences the contents of the Registration Statement and
Prospectus were discussed and, although such counsel is not passing upon and does
not assume responsibility for the accuracy, completeness or fairness of the
statements contained in the Registration Statements or Prospectus (except as and to
the extent stated in subparagraphs ((iii) and (viii) above), on the basis of the
foregoing, nothing has come to the attention of such counsel that causes such
counsel to believe that the

10

 

Registration Statement or the prospectus included therein (except for the
financial statements and financial schedules and other financial and statistical
data derived therefrom, as to which such counsel need not express any belief) at the
time the Registration Statement became effective contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading or the Prospectus (except
for the financial statements and financial schedules and other financial and
statistical data derived therefrom, as to which such counsel need not express any
opinion) as of its date or as of the date of such opinion contained or contains an
untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     (d) The Underwriters shall have received on the Closing Date an opinion of Woodburn and
Wedge, special Nevada counsel for the Company, dated the Closing Date, to the effect that:

     (i) URS Nevada has been duly incorporated, is validly existing as a corporation
in good standing under the laws of the State of Nevada, has the corporate power and
authority to own its property and to conduct its business as described in the
Prospectus.

     (e) The Underwriters shall have received on the Closing Date an opinion of Skadden,
Arps, Slate, Meagher & Flom LLP, special New York counsel for the Company, dated the Closing
Date, to the effect that:

     (i) URS New York is an existing corporation under the laws of the State of New
York. URS New York has the status of qualified to do business in Massachusetts and
in good standing in New Jersey.

     (f) The Underwriters shall have received on the Closing Date an opinion of Sidley
Austin Brown & Wood LLP, counsel for the Underwriters, dated the Closing Date, covering the
matters referred to in Sections 5(c)(v), 5(c)(vi), 5(c)(viii) (but only as to the statements
in the Prospectus under “Description of Capital Stock” and “Underwriters”) and Section
5(c)(xi) (other than clause (A)) above.

     The opinions of Cooley Godward LLP, Woodburn and Wedge LLP and Skadden Arps, Slate, Meagher &
Flom LLP described in Sections 5(c), 5(d) and 5(e) above shall be rendered to the Underwriters at
the request of the Company and shall so state therein.

     (g) The Underwriters shall have received, on each of the date hereof and the Closing
Date, a letter dated the date hereof or the Closing Date, as the case may be, in form and
substance satisfactory to the Underwriters, from PricewaterhouseCoopers LLP, independent
registered public accounting firm, containing statements and information of the type
ordinarily included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information contained in, or incorporated

11

 

by reference into, the Registration Statement and the Prospectus; provided that the
letter delivered on the Closing Date shall use a “cut-off date” not earlier than the date
hereof.

     (h) The “lock-up” agreements, each substantially in the form of Exhibit A hereto,
between you and certain stockholders, officers and directors of the Company relating to
sales and certain other dispositions of shares of Common Stock or certain other securities,
delivered to you on or before the date hereof, shall be in full force and effect on the
Closing Date.

     (i) The Underwriters shall have received on the Closing Date a certificate, dated the
Closing Date and signed by the chief financial officer of the Company, certifying as to the
preparation, completeness and accuracy of certain financial and statistical data relating to
the Company included in the Prospectus.

     The several obligations of the Underwriters to purchase Additional Shares hereunder are
subject to the delivery to you on the applicable Option Closing Date of such documents as you may
reasonably request with respect to the good standing of the Company, the due authorization and
issuance of the Additional Shares to be sold on such Option Closing Date and other matters related
to the issuance of such Additional Shares.

     6. Covenants of the Company. In further consideration of the agreements of the Underwriters
herein contained, the Company covenants with each Underwriter as follows:

     (a) To furnish to you, without charge, four signed copies of the Registration Statement
(including exhibits thereto and documents incorporated by reference) and for delivery to
each other Underwriter a conformed copy of the Registration Statement (without exhibits
thereto but including documents incorporated by reference) and to furnish to you in New
York City, without charge, prior to 10:00 a.m. New York City time on the business day next
succeeding the date of this Agreement and during the period mentioned in Section 6(c) below,
as many copies of the Prospectus, any documents incorporated by reference, and any
supplements and amendments thereto or to the Registration Statement as you may reasonably
request. The terms “supplement” and “amendment” or “amend” as used in this Agreement shall
include all documents subsequently filed by the Company with the Commission pursuant to the
Exchange Act that are deemed to be incorporated by reference in the Prospectus.

     (b) Before amending or supplementing the Registration Statement or the Prospectus, to
furnish to you a copy of each such proposed amendment or supplement and not to file any such
proposed amendment or supplement to which you reasonably object, and to file with the
Commission within the applicable period specified in Rule 424(b) under the Securities Act
any prospectus or prospectus supplement required to be filed pursuant to such Rule.

     (c) If, during such period after the first date of the public offering of the Shares as
in the opinion of counsel for the Underwriters the Prospectus is required by law to be
delivered in connection with sales by an Underwriter or dealer, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the

12

 

Prospectus in order to make the statements therein, in the light of the circumstances
when the Prospectus is delivered to a purchaser, not misleading, or if, in the opinion of
counsel for the Underwriters, it is necessary to amend or supplement the Prospectus to
comply with applicable law, forthwith to prepare, file with the Commission and furnish, at
its own expense, to the Underwriters and to the dealers (whose names and addresses you will
furnish to the Company) to which Shares may have been sold by you on behalf of the
Underwriters and to any other dealers upon request, either amendments or supplements to the
Prospectus so that the statements in the Prospectus as so amended or supplemented will not,
in the light of the circumstances when the Prospectus is delivered to a purchaser, be
misleading or so that the Prospectus, as amended or supplemented, will comply with law.

     (d) To endeavor to qualify the Shares for offer and sale under the securities or Blue
Sky laws of such jurisdictions as you shall reasonably request.

     (e) To make generally available to the Company’s security holders and to you as soon as
practicable an earning statement covering the twelve-month period ending June 30, 2006
that satisfies the provisions of Section 11(a) of the Securities Act and the Securities Act
Regulations.

     7. Expenses. Whether or not the transactions contemplated in this Agreement are consummated
or this Agreement is terminated, the Company agrees to pay or cause to be paid all expenses
incident to the performance of its obligations under this Agreement, including: (i) the fees,
disbursements and expenses of the Company’s counsel and the Company’s accountants in connection
with the registration and delivery of the Shares under the Securities Act and all other fees or
expenses in connection with the preparation and filing of the Registration Statement, any
preliminary prospectus, the Prospectus and amendments and supplements to any of the foregoing,
including all printing costs associated therewith, and the mailing and delivering of copies thereof
to the Underwriters and dealers, in the quantities hereinabove specified, (ii) all costs and
expenses related to the transfer and delivery of the Shares to the Underwriters, including any
transfer or other taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or
Legal Investment memorandum in connection with the offer and sale of the Shares under state
securities laws and all expenses in connection with the qualification of the Shares for offer and
sale under state securities laws as provided in Section 6(d) hereof, including filing fees and the
reasonable fees and disbursements of counsel for the Underwriters in connection with such
qualification and in connection with the Blue Sky or Legal Investment memorandum, (iv) all filing
fees and the reasonable fees and disbursements of counsel to the Underwriters incurred in
connection with the review and qualification of the offering of the Shares by the National
Association of Securities Dealers, Inc., (v) all costs and expenses incident to listing the Shares
on the NYSE and the Pacific Exchange, (vi) the cost of printing certificates representing the
Shares, (vii) the costs and charges of any transfer agent, registrar or depositary, (viii) the
costs and expenses of the Company relating to investor presentations on any “road show” undertaken
in connection with the marketing of the offering of the Shares, including, without limitation,
expenses associated with the production of road show slides and graphics, fees and expenses of any
consultants engaged in connection with the road show presentations with the prior approval of the
Company, travel and lodging expenses of the representatives and officers of the Company and any
such consultants, and the cost of any aircraft chartered in connection with

13

 

the road show, (ix) the document production charges and expenses associated with printing this
Agreement and (x) all other costs and expenses incident to the performance of the obligations of
the Company hereunder for which provision is not otherwise made in this Section. It is understood,
however, that except as provided in this Section, Section 8 entitled “Indemnity and Contribution”,
and the last paragraph of Section 10 below, the Underwriters will pay all of their costs and
expenses, including fees and disbursements of their counsel, stock transfer taxes payable on resale
of any of the Shares by them and any advertising expenses connected with any offers they may make.

     8. Indemnity and Contribution. (a) The Company agrees to indemnify and hold harmless each
Underwriter, each person, if any, who controls any Underwriter within the meaning of either Section
15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Underwriter
within the meaning of Rule 405 under the Securities Act, from and against any and all losses,
claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement or any amendment thereof, any preliminary prospectus or preliminary
prospectus supplement or the Prospectus (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto), or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such losses, claims, damages or liabilities are caused by
any such untrue statement or omission or alleged untrue statement or omission based upon
information relating to any Underwriter furnished to the Company in writing by such Underwriter
through you expressly for use therein; provided, however, that the foregoing indemnity agreement
with respect to any preliminary prospectus or preliminary prospectus supplement shall not inure to
the benefit of any Underwriter, or any person controlling such Underwriter, if a copy of the
Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or
supplements thereto) was not sent or given by or on behalf of such Underwriter to the person
asserting any such losses, claims, damages or liabilities, if required by law so to have been
delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if
the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such
losses, claims, damages or liabilities, unless such failure is the result of noncompliance by the
Company with Section 6(a) hereof.

     (b) (b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, the directors of the Company, the officers of the Company who sign the Registration
Statement and each person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act from and against any and all losses,
claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement or any amendment thereof, any preliminary prospectus or preliminary
prospectus supplement or the Prospectus (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto), or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only with reference to information relating to such

14

 

Underwriter furnished to the Company in writing by such Underwriter through you expressly for use
in the Registration Statement, any preliminary prospectus or preliminary prospectus supplement, the
Prospectus or any amendments or supplements thereto.

     (c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b),
such person (the “indemnified party”) shall promptly notify the person against whom such indemnity
may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In
any such proceeding, any indemnified party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to the retention of such
counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interests between them.
It is understood that the indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to
any local counsel) for all indemnified parties and that all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by Morgan Stanley & Co.
Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated in the case of parties
indemnified pursuant to Section 8(a), and by the Company, in the case of parties indemnified
pursuant to Section 8(b). The indemnifying party shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or judgment. Notwithstanding
the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying
party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the
second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable
for any settlement of any proceeding effected without its written consent if (1) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the aforesaid request
and has not been objected to by such indemnifying party within such 30 day period and (2) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such request
prior to the date of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened proceeding in
respect of which any indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter of such
proceeding.

     (d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to
an indemnified party or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable
by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such

15

 

proportion as is appropriate to reflect the relative benefits received by the Company on the one
hand and the Underwriters on the other hand from the offering of the Shares or (ii) if the
allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but
also the relative fault of the Company on the one hand and of the Underwriters on the other hand in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits
received by the Company on the one hand and the Underwriters on the other hand in connection with
the offering of the Shares shall be deemed to be in the same respective proportions as the net
proceeds from the offering of the Shares (before deducting expenses) received by the Company and
the total underwriting discounts and commissions received by the Underwriters, in each case as set
forth in the table on the cover of the Prospectus Supplement, bear to the aggregate Public Offering
Price of the Shares. The relative fault of the Company on the one hand and the Underwriters on the
other hand shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Underwriters and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Underwriters’ respective obligations to contribute pursuant to this Section 8 are
several in proportion to the respective number of Shares they have purchased hereunder, and not
joint.

     (e) The Company and the Underwriters agree that it would not be just or equitable if
contribution pursuant to this Section 8 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation that
does not take account of the equitable considerations referred to in Section 8(d). The amount paid
or payable by an indemnified party as a result of the losses, claims, damages and liabilities
referred to in the immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8, no Underwriter shall be required to contribute any amount in excess
of the amount by which the total price at which the Shares underwritten by it and distributed to
the public were offered to the public exceeds the amount of any damages that such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The remedies provided for in this Section 8 are not
exclusive and shall not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity.

     (f) The indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Company contained in this Agreement shall
remain operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Underwriter, any person controlling any
Underwriter or any affiliate of any Underwriter or by or on behalf of the
Company, its officers or directors or any person controlling the Company and (iii) acceptance
of and payment for any of the Shares.

16

 

     9. Termination. The Underwriters may terminate this Agreement by notice given by you to the
Company, if after the execution and delivery of this Agreement and prior to the Closing Date (i)
trading generally shall have been suspended or materially limited on, or by, as the case may be,
any of the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the
Chicago Board of Options Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade or
the Pacific Exchange, (ii) trading of any securities of the Company shall have been suspended on
any exchange or in any over-the-counter market, (iii) a material disruption in securities
settlement, payment or clearance services in the United States shall have occurred, (iv) any
moratorium on commercial banking activities shall have been declared by Federal or New York State
authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any
change in financial markets, currency exchange rates or controls or any calamity or crisis that, in
your judgment, is material and adverse and which, singly or together with any other event specified
in this clause (v), makes it, in your judgment, impracticable or inadvisable to proceed with the
offer, sale or delivery of the Shares on the terms and in the manner contemplated in the
Prospectus.

     10. Effectiveness; Defaulting Underwriters. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.

     If, on the Closing Date or an Option Closing Date, as the case may be, any one or more of the
Underwriters shall fail or refuse to purchase Shares that it has or they have agreed to purchase
hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase is not more than one-tenth of the aggregate
number of the Shares to be purchased on such date, the other Underwriters shall be obligated
severally in the proportions that the number of Firm Shares set forth opposite their respective
names in Schedule I bears to the aggregate number of Firm Shares set forth opposite the names of
all such non-defaulting Underwriters, or in such other proportions as you may specify, to purchase
the Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase on such date; provided that in no event shall the number of Shares that any Underwriter
has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 10 by an
amount in excess of one-ninth of such number of Shares without the written consent of such
Underwriter. If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to
purchase Firm Shares and the aggregate number of Firm Shares with respect to which such default
occurs is more than one-tenth of the aggregate number of Firm Shares to be purchased, and
arrangements satisfactory to you and the Company for the purchase of such Firm Shares are not made
within 36 hours after such default, this Agreement shall terminate without liability on the part of
any non-defaulting Underwriter or the Company. In any such case either you or the Company shall
have the right to postpone the Closing Date, but in no event for longer than seven days, in order
that the required changes, if any, in the Registration Statement and in the Prospectus or in any
other documents or arrangements may be effected. If, on an Option Closing Date, any Underwriter or
Underwriters shall fail or refuse to purchase Additional Shares and the aggregate number of
Additional Shares with respect to which such default occurs is more than one-tenth of the aggregate
number of Additional Shares to be purchased on such Option Closing Date, the non-defaulting
Underwriters shall have the option to (i) terminate their obligation hereunder to purchase the Additional Shares to be sold on such
Option Closing Date or (ii) purchase not less than the number of Additional Shares that such
non-defaulting Underwriters would have been obligated to purchase in the absence of such

17

 

default.
Any action taken under this paragraph shall not relieve any defaulting Underwriter from liability
in respect of any default of such Underwriter under this Agreement.

     If this Agreement shall be terminated by the Underwriters, or any of them, because of any
failure or refusal on the part of the Company to comply with the terms or to fulfill any of the
conditions of this Agreement, or if for any reason the Company shall be unable to perform its
obligations under this Agreement, the Company will reimburse the Underwriters or such Underwriters
as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket
expenses (including the fees and disbursements of their counsel) reasonably incurred by such
Underwriters in connection with this Agreement or the offering contemplated hereunder.

     11. Counterparts. This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

     12. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.

     13. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.

[SIGNATURE PAGE FOLLOWS]

18

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	URS CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kent P. Ainsworth	 
	

	 	 	 	Name:	 Kent P. Ainsworth	 
	

	 	 	 	Title:	 Executive Vice President and
 Chief Financial
Officer	 

Accepted as of the date hereof

Morgan Stanley & Co. Incorporated

	 	 	 	 	 
	By:

	 	/s/ Bryan Andrzejewski	 	 
	

	 	Name:  Bryan Andrzejewski	 	 
	

	 	Title:    Executive Director	 	 

Merrill Lynch, Pierce, Fenner & Smith

          
            Incorporated

	 	 	 	 	 
	By:

	 	/s/ Leonard Chung	 	 
	

	 	Authorized Signatory	 	 

	 	 	 	 	 
	Acting severally on behalf of themselves and

	 	 	 	 
	the several Underwriters named in
	 	 	 	 
	Schedule I hereto.
	 	 	 	 

19

 

SCHEDULE I

	 	 	 	 	 
	 	 	Number of Firm	 
	 	 	Shares To Be	 
	Underwriters	 	Purchased	 
	Morgan Stanley & Co. Incorporated
	 	 	1,181,934	 
	 
	 	 	 	 
	Merrill Lynch, Pierce, Fenner & Smith
Incorporated
	 	 	1,181,934	 
	 
	 	 	 	 
	Credit Suisse First Boston LLC
	 	 	360,763	 
	 
	 	 	 	 
	Lehman Brothers Inc.
	 	 	360,763	 
	 
	 	 	 	 
	UBS Securities LLC
	 	 	360,763	 
	 
	 	 	 	 
	D.A. Davidson & Co.
	 	 	95,282	 
	 
	 	 	 	 
	Morgan Joseph & Co. Inc.
	 	 	95,282	 
	 
	 	 	 	 
	 
	 	 	 
	Total
	 	 	3,636,721	 
	 
	 	 	 

20

 

EXHIBIT A

[FORM OF LOCK-UP LETTER]

June l, 2005

Morgan Stanley & Co. Incorporated

Merrill Lynch, Pierce, Fenner & Smith

          Incorporated

c/o Morgan Stanley & Co. Incorporated

     1585 Broadway

     New York, NY 10036

Dear Sirs and Mesdames:

     The undersigned understands that Morgan Stanley & Co. Incorporated (“Morgan Stanley”) and
Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) propose to enter into an
Underwriting Agreement (the “Underwriting Agreement”) with URS Corporation, a Delaware corporation
(the “Company”), providing for the public offering (the “Public Offering”) by the several
Underwriters, including Morgan Stanley and Merrill Lynch (the “Underwriters”), of approximately l
shares (the “Shares”) of the common stock, par value $0.01 per share, of the Company (the “Common
Stock”).

     To induce the Underwriters that may participate in the Public Offering to continue their
efforts in connection with the Public Offering, the undersigned hereby agrees that, without the
prior written consent of Morgan Stanley and Merrill Lynch on behalf of the Underwriters, it will
not, during the period commencing on the date hereof and ending the earlier of (x) 90 days after
the date of the final prospectus relating to the Public Offering (the “Prospectus”), and (y) if the
Underwriting Agreement has not been executed by the parties thereto by July 31, 2005, July 31,
2005, (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock, or (2) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Common Stock, whether any such transaction described in clause (1) or (2) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing sentence shall not apply to (a) the sale of any Shares to the Underwriters pursuant to
the Underwriting Agreement; (b) transactions relating to shares of Common Stock or other securities
acquired in open market transactions after the completion of the offering of the Shares; (c)
transfers of shares of Common Stock or any security convertible into or exercisable or exchangeable
for Common Stock as a bona fide gift or gifts; (d) transfers

A-1

 

or distributions of shares of Common Stock, or any security convertible into or exercisable or
exchangeable for Common Stock, to affiliates (as defined in Rule 405 under the Securities Act); (e)
transfers to the Company of shares of Common Stock to pay the exercise price of stock options
granted to the undersigned under the Company’s employee stock option plans (provided that the
shares so transferred are not sold or otherwise disposed of by the Company) and transfers of
shares of Common Stock to the Company so long as the proceeds from such transfers are applied
solely to pay withholding taxes due with respect to the exercise by the undersigned of any such
stock options or with respect to the vesting of restricted stock granted to the undersigned under
the Company’s restricted stock plan; and (f) transfers by the undersigned or its permitted
distributee or transferee of Common Stock or securities convertible into or exercisable or
exchangeable for Common Stock to a family member of the undersigned or of such distributee or
transferee or a trust created for the benefit of the undersigned or such distributee or transferee
or a family member of the undersigned or such distributee or transferee; provided that in the case
of any gift, transfer or distribution referred to in clause (c), (d) or (f) above, such donee,
transferee or distributee shall execute and deliver to Morgan Stanley and Merrill Lynch, prior to
or contemporaneously with such gift, transfer or distribution, an agreement to be bound by the
restrictions set forth herein. In addition, the undersigned agrees that, without the prior written
consent of Morgan Stanley and Merrill Lynch on behalf of the Underwriters, it will not, during the
period commencing on the date hereof and ending 90 days after the date of the Prospectus, make any
demand for or exercise any right with respect to, the registration of any shares of Common Stock or
any security convertible into or exercisable or exchangeable for Common Stock. The undersigned
also agrees and consents to the entry of stop transfer instructions with the Company’s transfer
agent and registrar against the transfer of the undersigned’s shares of Common Stock except in
compliance with the foregoing restrictions.

     The undersigned understands that the Company and the Underwriters are relying upon this
Lock-Up Agreement in proceeding toward consummation of the Public Offering. The undersigned
further understands that this Lock-Up Agreement is irrevocable and shall be binding upon the
undersigned’s heirs, legal representatives, successors and assigns.

     Whether or not the Public Offering actually occurs depends on a number of factors, including
market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement,
the terms of which are subject to negotiation between the Company and the Underwriters.

Very truly yours,

                                                                                

(Name)

                                                                                

(Address)

A-2

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