Document:

Exhibit 10.3

    

      Exhibit
        10.3

       

      AMENDED
        AND RESTATED 

      SUPPLEMENTAL
        EXECUTIVE RETIREMENT AGREEMENT

       

      Whereas, Martin M.
        Koffel (“Executive”)
        and URS
        Corporation,
        a
        Delaware corporation (the
        “Company”) entered into a Supplemental Executive Retirement Agreement (the
“Agreement”) effective as of September 5, 2003 (the “Effective
        Date”);

       

      Whereas,
        this
        Agreement is intended to provide Executive with a supplemental retirement
        benefit in addition to the benefit that Executive will be eligible to receive
        following the termination of his employment with the Company under the URS
        Corporation 401(k) Retirement Plan;

       

      Whereas,
        this
        Agreement is not intended to meet the qualification requirements under Section
        401 of the Code;

       

      Whereas,
        Executive
        and the Company wish to amend and restate the Agreement effective as of December
        7, 2006; and

       

      Whereas,
        Executive and the Company acknowledge and agree that (i) Executive was vested
        in
        a portion of the Benefit (as defined below) as of December 31, 2004, in an
        annual amount as contemplated under Section 4.2(a) equal to $901,452, which
        is
        equivalent to a lump sum amount as contemplated under Section 4.2(b)(ii)
        of
        $10,956,000, and therefore such amount shall not be considered subject to
        the
        provisions of Section 409A of the Code (the “Grandfathered
        Amount”)
        and
        (ii) any portion of the Benefit exceeding the Grandfathered Amount shall
        be
        considered subject to the provisions of Section 409A of the Code (the
“Non-Grandfathered
        Amount”).

      

      Now
        Therefore,
        the
        Company and Executive hereby agree as follows:

       

      ARTICLE
        1  

      Scope
        of and Consideration for this Agreement

       

      1.1  Executive
        is currently employed by the Company.

       

      1.2  The
        Company and Executive entered into a Supplemental Executive Retirement Agreement
        effective as of July 13, 1999 (the “Prior SERP”), which sets forth the
        supplemental retirement benefit that Executive or his Beneficiary will be
        eligible to receive following his termination of employment with the
        Company.

       

      1.3  The
        duties and obligations of the Company to Executive under this Agreement shall
        be
        in consideration for Executive’s past services to the Company and Executive’s
        continued employment with the Company.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.4  This
        Agreement shall amend, restate and supersede the Prior SERP and any other
        agreement with the Company relating to supplemental executive retirement
        benefits to be received by Executive upon his termination of employment with
        the
        Company. This Agreement is not intended to amend, restate or supersede any
        other
        agreement into which Executive and the Company have entered including, but
        not
        limited to, employment agreements, stock option agreements and deferred
        compensation agreements.

       

      ARTICLE
        2  

      Amount
        of Benefit

       

      Executive
        shall be eligible to receive a benefit under this Agreement following his
        termination of employment with the Company (the “Benefit”). The Benefit shall be
        an annual amount, payable for the life of Executive with a guarantee of payments
        for at least ten (10) years, equal to (a) a percentage of Executive’s Final
        Average Compensation, which percentage shall be determined based on Executive’s
        age at his termination of employment as set forth in the following table
        (with
        interpolation of percentages for ages between those whole years specified
        based
        on the number of complete weeks beyond a specified whole year divided by
        52),
        reduced by (b) the annual Social Security benefit to which Executive is
        entitled at the time of earliest eligibility:

       

      
        	
                Executive’s
                  Age at Termination of Employment

              	
                Applicable
                  Percentage

              
	
                 

                67
                  or older

              	
                 

                60%

              
	
                66

              	
                55%

              
	
                65
                  or younger

              	
                50%

              

      

       

       

      If
        Executive’s employment with the Company is terminated (a) by the Company
        for any reason within thirteen (13) months following a Change in Control,
        (b) by
        Executive for any reason within two (2) years following a Change in Control
        or
        (c) by the Company for any reason following the occurrence of a Potential
        Change in Control and within six (6) months prior to the occurrence of a
        Change
        in Control, Executive’s Benefit shall be calculated as if Executive’s age at
        termination of employment were sixty-seven (67). If Executive terminates
        employment with the Company after attaining age sixty-seven (67), the Benefit
        shall be the greater of (a) the Benefit computed as of the date of
        Executive’s termination of employment with the Company or (b) the Actuarial
        Equivalent (to reflect later commencement) of the Benefit computed as if
        it
        commenced as of the first day of the month coinciding with or next following
        the
        date of Executive’s sixty-seventh (67th) birthday.

       

        

      
        
          
          

        

        
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      ARTICLE
        3

      Timing
        of Benefit Payment

       

      3.1 Grandfathered
        Amount.
        Payment
        of any Grandfathered Amount of the Benefit shall commence on the first day
        of
        the month following the month in which Executive’s termination of employment
        with the Company occurs.

       

      Executive
        may, upon executing this Agreement or thereafter, by notice to the Company,
        elect such later date upon which any Grandfathered Amount of the Benefit
        shall
        commence following termination of his employment. Such election of a Benefit
        payment commencement date shall be irrevocable; provided,
        however,
        that
        Executive may change his election of a Benefit payment commencement date
        if the
        election to change the Benefit payment commencement date is made at least
        one
        (1) year prior to the date that Benefit payments actually commence to Executive.
        If Executive elects such a change in the commencement date of Benefit payments
        and such election is made less than one (1) year prior to the date that Benefit
        payments actually commence to Executive, then such election change shall
        not be
        effective until one (1) year from the date the election change is made, and
        Benefit payments scheduled to be made during such one (1) year period shall
        be
        paid on schedule. If Executive does not elect a Benefit commencement date
        prior
        to his termination of employment with the Company, he shall be deemed to
        have
        elected to begin receiving Benefit payments on the first day of the month
        following the month in which his employment with the Company
        terminates.

       

      3.2 Non-Grandfathered
        Amount. If
        and to
        the extent necessary to avoid the imposition of additional tax under Section
        409A of the Code, payment of any Non-Grandfathered Amount of the Benefit
        shall
        be made in a lump sum on the date that is six (6) months following the date
        on
        which Executive’s termination of employment with the Company
        occurs.

       

      Notwithstanding
        the foregoing, Executive may, upon executing this Agreement or thereafter,
        by
        notice to the Company, elect such later date upon which payment of any
        Non-Grandfathered Amount of the Benefit shall commence following termination
        of
        his employment or change such election of a Benefit payment commencement
        date,
        provided that (i) such election may not be made less than twelve (12) months
        prior to the date payment of the Benefit is scheduled to commence, and (ii)
        the
        new Benefit payment commencement date is at least five (5) years following
        the
        date payment of the Benefit otherwise would have commenced.

       

       

      
        
          
          

        

        
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      ARTICLE 4  

      Form
        of Benefit Payment

       

      4.1  Executive
        shall, upon executing this Agreement or thereafter, elect the form in which
        his
        Benefit shall be distributed. Such election of a distribution form shall
        be
        irrevocable; provided,
        however,
        that
        Executive may change his election of a distribution form if such election
        is
        made no later than one (1) year prior to the date that Benefit payments actually
        commence to Executive;
        provided further, however,
        that
        with respect to any Non-Grandfathered Amount of the Benefit, Executive may
        change his election of a distribution form only if the new form results in
        the
        commencement of Benefit payments at least five (5) years following the date
        such
        payments otherwise would have commenced. Subject to the foregoing sentence,
        if
        Executive elects a change in the distribution form of his Benefit and such
        election is made less than one (1) year prior to the date that Benefit payments
        actually commence, then such election change shall be ineffective, and the
        Benefit shall be distributed according to Executive’s immediately prior
        election. If Executive does not elect a distribution form prior to becoming
        eligible to receive a Benefit under this Agreement, he shall be deemed to
        have
        elected the lump sum Benefit pursuant to Section 4.2(b)(ii).

       

      4.2  Executive
        may elect a distribution form for his Benefit from among the following
        forms:

       

      (a) The
        normal form of Benefit is a life annuity with a ten (10) year term certain.
        This
        form of Benefit shall be paid in equal monthly installments for the longer
        of
        the life of Executive or ten (10) years. 

       

      (b) The
        following optional forms of Benefit shall each be calculated to be the Actuarial
        Equivalent of the normal form of Benefit:

       

      (i) A
        joint
        and survivor annuity shall be paid in equal monthly installments for the
        life of
        Executive, and after Executive’s death, a fifty percent (50%) continuation of
        such installments shall be paid to Executive’s Beneficiary for the life of such
        Beneficiary.

       

      (ii) A
        single
        lump sum payment to Executive or Executive’s Beneficiary.

       

       

      
        
          
          

        

        
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      ARTICLE 5  

      Death
        of Executive

       

      5.1  If
        Executive should die prior to the commencement of Benefit payments, Executive’s
        Beneficiary shall be entitled to receive a death benefit in the form of a
        single
        lump sum equal to the value of the lump sum Benefit Executive would have
        received pursuant to Section 4.2(b)(ii) above if he had terminated his
        employment with the Company on the day before his death and had received
        such
        Benefit on such day. The foregoing death benefit shall be paid within thirty
        (30) days following Executive’s death.

       

      5.2  If
        Executive should die after commencing to receive Benefit payments in the
        form of
        a life annuity with a ten (10) year term certain, Executive’s Beneficiary shall
        be entitled to receive a death benefit equal to the value of the remaining
        ten
        (10) year term certain payments. Such Benefit will be paid in monthly
        installments for the remainder of the ten (10) year life term; provided,
        however,
        that if
        the Beneficiary is Executive’s estate, the Actuarial Equivalent of the
        Grandfathered Amount of the Benefit shall be paid in the form of a single
        lump
        sum. The foregoing death benefit shall be paid, or commence to be paid, within
        thirty (30) days following Executive’s death.

       

      ARTICLE 6  

      Post-Retirement
        Health Insurance Coverage

       

      6.1  During
        the eighteen (18) month period commencing upon Executive’s termination of
        employment with the Company for any reason, including his death, Executive
        (and,
        where applicable, his dependents) shall be entitled, at the Company’s expense,
        to continue participation in the insurance programs maintained by the Company,
        including life, disability and health (including dental, vision and EAP)
        insurance programs, as if he were still an employee of the Company. Where
        applicable, Executive’s salary shall be deemed to be equal to the Base
        Compensation (as defined in Section 8.8 below) as in effect immediately prior
        to
        his termination of employment. During Executive’s life, such coverage shall be
        extended to Executive and his dependents who qualify as such under the terms
        of
        the Company’s health insurance programs. Following Executive’s death, such
        coverage shall continue to be available to Executive’s surviving spouse, at the
        Company’s expense, during such eighteen (18) month period. To the extent the
        Company finds it impossible to cover Executive or his surviving spouse or
        dependents under its group insurance policies during such eighteen (18) month
        period, the Company shall provide Executive with the same level of coverage
        under individual policies at the same cost to Executive. The foregoing coverage
        shall satisfy the obligations of the Company and its heath insurance programs
        under the Comprehensive Omnibus Reconciliation Act of 1985, as amended (“COBRA”)
        and any analogous state laws, and Executive shall make any elections requested
        by the Company to evidence such fact.

       

      
        
          
          

        

        
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      6.2  Following
        the expiration of the extended period of Company-paid health insurance coverage
        provided for in Section 6.1 above, Executive shall be entitled, at his expense
        but at the Company’s group rates, to continue participation in the health
        insurance programs maintained by the Company, including life, disability
        and
        health (including vision, dental and EAP) insurance programs, as if he were
        still an employee of the Company, and primary to any Medicare coverage that
        might be available. During Executive’s life, such coverage shall be extended to
        Executive and his dependents who qualify as such under the terms of the
        Company’s health insurance programs. Following Executive’s death, such coverage
        shall continue to be available to Executive’s surviving spouse, at her expense
        but at the Company’s group rates, for her lifetime. To the extent that the
        Company finds it impossible to cover Executive or his surviving spouse or
        dependents under its group insurance policies, the Company shall arrange
        for
        Executive or his surviving spouse, at their expense but at a rate equivalent
        to
        the Company’s group rates, to be provided with an individual policy providing
        substantially the same level of coverage as the Company’s health insurance
        programs.

       

      ARTICLE 7  

      Funding

       

      7.1  Benefits
        payable under this Agreement shall be “unfunded,”
as
        that
        term is used in Sections 201(2), 301(a)(3), 401(a)(1) and 4021(a)(6) of ERISA
        with respect to unfunded plans maintained primarily for the purpose of providing
        deferred compensation to a select group of management or highly compensated
        employees, and the Company shall administer this Agreement in a manner that
        will
        ensure that benefits are unfunded and that Executive will not be considered
        to
        have received a taxable economic benefit prior to the time at which benefits
        are
        actually payable hereunder. Accordingly, the Company shall not be required
        to
        segregate or earmark any of its assets for the benefit of Executive or his
        spouse or other Beneficiary, and each such person shall have only a contractual
        right against the Company for benefits hereunder. The rights and interests
        of
        Executive under this Agreement shall not be subject in any manner to
        anticipation, alienation, sale, transfer, assignment, pledge or encumbrance
        by
        Executive or any person claiming under or through Executive, nor shall they
        be
        subject to the debts, contracts, liabilities or torts of Executive or anyone
        else prior to payment. 

       

       

      
        
          
          

        

        
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      7.2  In
        satisfaction of the prior agreement between Executive and the Company to
        defer
        the obligation of the Company to establish a grantor (“rabbi”) trust following a
        Change in Control (as defined in the Prior SERP), and notwithstanding the
        foregoing Section 7.1, the Company shall, within fifteen (15) days of the
        earliest to occur of (i) receiving a written request therefor from Executive
        and
        (ii) the termination of Executive’s employment with the Company for any reason,
        including the death of Executive, establish a grantor (“rabbi”) trust,
        substantially in the form attached hereto as Exhibit A (or such other form
        as the Company and Executive may agree), the assets of which shall be used
        exclusively and irrevocably to provide benefits to Executive pursuant to
        this
        Agreement (subject, however, to the claims of the general creditors of the
        Company); provided,
        however,
        that
        the establishment of such a trust will not render this Agreement other than
        “unfunded” (as that term is defined in Section 7.1). Upon the establishment of
        any such rabbi trust, and within sixty (60) days following the end of each
        of
        the Company’s fiscal years thereafter, the Company shall deposit in the trust an
        amount of cash or marketable securities (other than securities issued by
        the
        Company or any of its current or future affiliates) sufficient so that the
        total
        amount so deposited in the trust is equal in value to the lump sum payment
        that
        would be payable to Executive if on the date such trust is established, and
        on
        the last day of each of the Company’s fiscal years thereafter, Executive’s
        employment with the Company had terminated. Such amount shall be computed
        based
        on the thirty (30) year treasury bill rate as of the date such lump sum payment
        would have been payable.

       

      ARTICLE 8  

      Definitions

       

      For
        purposes of this Agreement, the following terms are defined as
        follows:

       

      8.1  “Actuarial
        Equivalent” shall
        mean a form of Benefit (including a lump sum payment) differing in time or
        manner of payment from the normal form of Benefit set forth in Section 4.2(a)
        but having the same present value when computed using the following actuarial
        assumptions:

       

      Mortality
        Table: the table specified in Section 417(e)(3)(A)(ii)(I) of the
        Code.

       

      Interest
        Rate: the annual rate of interest on 30-year Treasury securities for the
        month
        preceding the date Benefit payments commence.

       

      However,
        for purposes of clause (b) of the final sentence of Article 2, only the Interest
        Rate (and not the Mortality Table) shall apply.

       

      8.2  “Board”
        shall
        mean the Board of Directors of URS Corporation or of a successor to URS
        Corporation, as described in Section 11.9.

       

      8.3  “Beneficiary”
        shall
        mean the beneficiary designated by Executive to receive benefits under this
        Agreement after Executive’s death. If Executive designates no Beneficiary, or if
        the designated Beneficiary does not survive Executive, the Beneficiary shall
        be
        Executive’s surviving spouse or, if none, Executive’s estate.

       

      
        
          
          

        

        
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      8.4  “Change
        in Control”
        shall
        mean the occurrence of any of the following events after the date of this
        Agreement:

       

      (a)  A
        change
        in control required to be reported pursuant to Item 6(e) of Schedule 14A
        of
        Regulation 14A under the Securities Exchange Act of 1934, as amended (the
        “Exchange Act”);

       

      (b)  A
        change
        in the composition of the Board as a result of which fewer than two-thirds
        (2/3)
        of the incumbent directors are directors who either (i) had been directors
        of the Company twenty-four (24) months prior to such change or (ii) were
        elected, or nominated for election, to the Board with the affirmative votes
        of
        at least a majority of the directors who had been directors of the Company
        twenty-four (24) months prior to such change and who were still in office
        at the
        time of the election or nomination (the directors described in clauses (i)
        and
        (ii) above being referred to as “Incumbent Directors”); or

       

      (c)  Any
        “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
        through the acquisition or aggregation of securities is or becomes the
        beneficial owner, directly or indirectly, of securities of the Company
        representing twenty percent (20%) or more of the combined voting power of
        the
        Company’s then outstanding securities ordinarily (and apart from rights accruing
        under special circumstances) having the right to vote at elections of directors
        (the “Base Capital Stock”); except that:

       

      (i)  The
        beneficial ownership by a person of twenty percent (20%) or more, but less
        than
        a majority, of the Base Capital Stock shall not constitute a Change in Control
        if such beneficial ownership was acquired in the ordinary course of such
        person’s business and not with the purpose or effect of changing or influencing
        the control of the Company and if such person is eligible to file a short-form
        statement on Schedule 13G under Rule 13d-1 under the Exchange Act with respect
        to such beneficial ownership; 

       

      (ii)  The
        beneficial ownership by Blum Capital Partners, L.P. and any person “affiliated”
(within the meaning of the Exchange Act) with Blum Capital Partners, L.P.
        (collectively, “Blum”) of the Base Capital Stock shall not constitute a Change
        in Control unless and until Blum, either alone or as a member of a group
        that
        constitutes a “person” (as defined above), beneficially owns an aggregate of
        over twenty-five percent (25%) of the Base Capital Stock; and

       

      (iii)  The
        beneficial ownership by TCG Holdings, L.L.C. and any person “affiliated” with
        TCG Holdings, L.L.C. (collectively, “TCG”) of the Base Capital Stock shall not
        constitute a Change in Control unless and until TCG, either alone or as a
        member
        of a group that constitutes a “person” (as defined above), beneficially owns an
        aggregate of over twenty-five percent (25%) of the Base Capital
        Stock.

       

      8.5  “Code”
        shall
        mean the Internal Revenue Code of 1986, as amended.

       

      8.6  “ERISA”
        shall
        mean the Employee Retirement Income Security Act of 1974, as amended.

       

      8.7  “Exchange
        Act”
        shall
        mean the Securities Exchange Act of 1934, as amended.

       

      
        
          
          

        

        
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      8.8  “Final
        Average Compensation”
        shall
        mean the sum of (a) the average Base Compensation actually earned by Executive
        during the thirty-six (36) consecutive calendar months during the final sixty
        (60) calendar months of Executive’s employment with the Company in which such
        average Base Compensation was highest, but in no event higher than $950,000,
        plus (b) the amount of such average Base Compensation multiplied by the average
        Annual Target Bonus (not actual bonus paid), or, if applicable, Target Bonus
        percentage (not actual bonus paid), in effect during the same thirty-six
        (36)
        month period, but in no event higher than 120%. For purposes of this definition,
        “Base Compensation” and “Annual Target Bonus” have the meanings defined in the
        Employment Agreement between the Company and Executive originally dated December
        16, 1991, as subsequently amended, and as restated in its entirety effective
        September 5, 2003, and as amended by the First Amendment dated December 7,
        2006,
        as the same may be further amended or restated subsequent to the date of
        this
        Agreement (the “Employment Agreement”), and “Target Bonus” has the meaning
        defined in the Employment Agreement prior to its restatement. For purposes
        of
        calculating Final Average Compensation under this Agreement, the Annual Target
        Bonus (and Target Bonus percentage, if applicable) as in effect on the last
        day
        of each of the Company’s fiscal years shall be deemed to have been in effect
        during each calendar month of such year, regardless of any increase in the
        Annual Target Bonus (or Target Bonus percentage) during such year.

       

      8.9  “Potential
        Change in Control”
        shall
        mean the occurrence of any of the following after the Effective
        Date:

       

      (a)  an
        event
        described in Section 8.4(iii), but substituting “ten percent (10%)” for “twenty
        percent (20%),” without the approval of a majority of the Incumbent
        Directors;

       

      (b)  the
        institution by any person (as such term is used in Sections 13(d) and 14(d)
        of
        the Exchange Act) of a tender offer to acquire ten percent (10%) or more
        of the
        combined voting power of the Company’s Base Capital Stock without the approval
        of a majority of the Incumbent Directors prior to or within twenty (20) business
        days following such offer; or

       

      (c)  a
        public
        announcement or receipt by the Board of a proposal of any person (as such
        term
        is used in Sections 13(d) and 14(d) of the Exchange Act) or group of persons
        to
        merge into, combine with or acquire all or substantially all of the assets
        or
        business of the Company without the approval of a majority of the Incumbent
        Directors within twenty (20) business days following such public announcement
        or
        receipt.

       

      ARTICLE 9  

      Administration
        and Operation of the Agreement

       

      The
        Company shall have the authority to control and manage the operation and
        administration of this Agreement. The Company has the sole discretion to
        make
        such rules, regulations, and interpretations of this Agreement and to make
        such
        computations and shall take such other actions to administer this Agreement
        as
        it may deem appropriate in its sole discretion. Such rules, regulations,
        interpretations, computations, and other actions shall be conclusive and
        binding
        upon all persons. The Company may engage the services of such persons or
        organizations to render advice or perform services with respect to its
        responsibilities under this Agreement as it shall determine to be necessary
        or
        appropriate. Such persons or organizations may include (without limitation)
        actuaries, attorneys, accountants and consultants.

       

       

      
        
          
          

        

        
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      ARTICLE 10  

      Claims,
        Inquiries and Appeals

       

      10.1  Applications
        for Benefits and Inquiries.
        Applications for benefits shall be in writing, signed and submitted to the
        Company at its primary office location.

       

      10.2  Claims
        Procedure.
        The
        Company and Executive agree that all disputes regarding benefits under this
        Agreement shall be resolved in accordance with a reasonable claims procedure
        complying with 29 CFR §2560.503-1, as such regulations of the United States
        Department of Labor may from time to time be amended. For purposes of such
        a
        procedure, any denied claim shall be subject to review by the Compensation
        Committee of the Board.

       

      10.3  Exhaustion
        of Remedies.
        No legal
        action for benefits under this Agreement may be brought until Executive or
        other
        claimant has pursued a resolution of the benefits claim in accordance with
        Section 10.2.

       

      ARTICLE
        11  

      General
        Provisions

       

      11.1  Employment
        Status.
        This
        Agreement does not constitute a contract of employment or impose upon Executive
        any obligation to remain as an employee, nor does it impose on the Company
        any
        obligation (i) to retain Executive as an employee, (ii) to change the
        status of Executive as an at-will employee, or (iii) to change the
        Company’s policies regarding termination of employment.

       

      11.2  Notices.
        Any
        notices provided hereunder must be in writing, and such notices or any other
        written communication shall be deemed effective upon the earlier of personal
        delivery (including personal delivery by facsimile) or the third day after
        mailing by first class mail, to the Company at its primary office location
        and
        to Executive at Executive’s address as listed in the Company’s payroll records.
        Any payments made by the Company to Executive under the terms of this Agreement
        shall be delivered to Executive either in person or at the address as listed
        in
        the Company’s payroll records.

       

      11.3  Severability.
        Whenever
        possible, each provision of this Agreement will be interpreted in such manner
        as
        to be effective and valid under applicable law, but if any provision of this
        Agreement is held to be invalid, illegal or unenforceable in any respect
        under
        any applicable law or rule in any jurisdiction, such invalidity, illegality
        or
        unenforceability will not affect any other provision or any other jurisdiction,
        but this Agreement will be reformed, construed and enforced in such jurisdiction
        as if such invalid, illegal or unenforceable provisions had never been contained
        herein.

       

      11.4  Waiver.
        If
        either party should waive any breach of any provisions of this Agreement,
        he or
        it shall not thereby be deemed to have waived any preceding or succeeding
        breach
        of the same or any other provision of this Agreement.

       

       

      
        
          
          

        

        
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      11.5  Complete
        Agreement.
        This
        Agreement and the Employment Agreement constitute the entire agreement between
        Executive and the Company and are the complete, final, and exclusive embodiment
        of their agreement with regard to the subject matter hereof and thereof,
        wholly
        amending, restating and superseding all written and oral agreements with
        respect
        to supplemental executive retirement benefits, including, without limitation,
        the Prior SERP. It is entered into without reliance on any promise or
        representation other than those expressly contained herein.

       

      11.6  Amendment
        Or Termination Of Agreement.
        This
        Agreement may be changed or terminated only upon the mutual written consent
        of
        the Company and Executive. The written consent of the Company to a change
        or
        termination of this Agreement must be signed by an executive officer of the
        Company after such change or termination has been approved by the
        Board.

       

      11.7  Counterparts.
        This
        Agreement may be executed in separate counterparts, any one of which need
        not
        contain signatures of more than one party, but all of which taken together
        will
        constitute one and the same Agreement.

       

      11.8  Headings.
        The
        headings of the Articles and Sections hereof are inserted for convenience
        only
        and shall not be deemed to constitute a part hereof or to affect the meaning
        thereof.

       

      11.9  Successors
        And Assigns.
        This
        Agreement is intended to bind and inure to the benefit of and be enforceable by
        Executive and his Beneficiary, and the Company, and any surviving entity
        resulting from a Change in Control and upon any other person who is a successor
        by merger, acquisition, consolidation or otherwise to the business formerly
        carried on by the Company, and their respective successors, assigns, heirs,
        executors and administrators, without regard to whether or not such person
        actively assumes any rights or duties hereunder.

       

      11.10  Non-Alienation.
        No
        benefit under this Agreement may be anticipated, alienated, sold, transferred,
        assigned, pledged, encumbered or charged, and any attempt to do so will be
        void.

       

      11.11  Legal
        Construction.
        All
        questions concerning the construction, validity and interpretation of this
        Agreement will be governed by the laws of the State of California, without
        regard to such state’s conflict of laws rules, to the extent that such laws are
        not preempted by ERISA.

       

      11.12  Non-Publication.
        The
        parties mutually agree not to disclose publicly the terms of this Agreement
        except to their respective advisors (e.g.,
        attorneys, accountants) or to the extent that disclosure is mandated by
        applicable law.

       

      11.13  Other
        Documents.
        In the
        event of a conflict between the text of this Agreement and any summary,
        description or other information regarding this Agreement, the text of this
        Agreement shall control.

       

       

       

      
        
           

          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      In
        Witness Whereof,
        the
        parties have executed this Agreement on the Effective Date written
        above.

       

      
        	 	 	 	 
	 	 	 	/s/
                Martin
                Koffel
	
              	 	 	
                

              
	 	 	 	Martin
                Koffel

      

       

       

      
        	 	 	 
	 	URS CORPORATION
	 
 	 
 	 
 
	Date: December
                7, 2006	By:  	/s/ Joseph
                Masters
	 	
                
Joseph
                Masters
	 	Vice
                President and General Counsel

      

       

       

       

      
        
          
             

          

          
          

        

        
          12

          
            

          

        

        
          
          

          
            

          

        

      

      Exhibit
        A

       

      FORM
        OF TRUST AGREEMENT

       

      

      
        
          
          

        

        
          13Exhibit 10.4

    Exhibit
      10.4

     

    URS
      Corporation

     

    Restricted
      Stock Award

     

    Grant
      Notice

     

    (1999
      Equity Incentive Plan)

     

    URS
      Corporation (the “Company”), pursuant to its 1999 Incentive Equity Plan (the
“Plan”), hereby grants to Participant the right to receive the number of shares
      of the Company’s Common Stock set forth below (“Award”). This Award is subject
      to all of the terms and conditions as set forth herein and in the Restricted
      Stock Award Agreement and the Plan, each of which are attached hereto and
      incorporated herein in their entirety. Defined terms not explicitly defined
      in
      this Grant Notice but defined in the Plan shall have the same definitions as
      in
      the Plan.

     

    Participant: Martin
      M.
      Koffel 

    Date
      of
      Grant: December
      7, 2006 

    Vesting
      Commencement Date: December
      7, 2006 

    Number
      of
      Shares Subject to Award: 300,000 

    Participant’s
      Social Security Number:  on
      file   

    Fair
      Market Value Per Share:   $
      44.05    

     

    Vesting
      Schedule:
       One-half
      (1⁄2) of the shares subject to the Award shall vest as set forth in (a) below and
      the remaining one-half (1⁄2) of the shares subject to the Award shall vest as set
      forth in (b) below: 

    

    
      	 	
              (a)

            	
              Time-based
                vesting: 50,000 of the shares subject to the Award shall vest on
                each of
                May 25, 2007, May 25, 2008 and May 25, 2009, provided that Participant’s
                Continuous Service has not terminated prior to such vesting
                date.

            

    

    

    
      	 	
              (b)

            	
              Time
                and performance-based vesting: 50,000 of the shares subject to the
                Award
                shall vest on each of May 25, 2007, May 25, 2008 and May 25, 2009,
                provided that (i) Participant’s Continuous Service has not terminated
                prior to such vesting date and (ii) the Company has met the net income
                goal for the fiscal year ending immediately preceding such vesting
                date,
                as established by the Board during the first quarter of such fiscal
                year,
                and as confirmed by the Compensation Committee after the audited
                financial
                results for such fiscal year have been prepared by the Company, in
                the
                Committee’s sole discretion acting pursuant to the terms of the Plan
                (including, but not limited to, Section 2(ee) regarding permissible
                adjustments in the method of calculating the attainment of Performance
                Goals).

            

    

    

    Additional
      Terms/Acknowledgements:
      The
      undersigned Participant acknowledges receipt of, and understands and agrees
      to,
      this Grant Notice, the Restricted Stock Award Agreement and the Plan.
      Participant further acknowledges that this Grant Notice, the Restricted Stock
      Award Agreement and the Plan set forth the entire understanding between
      Participant and the Company regarding the award of Common Stock in the Company
      and supersede all prior oral and written agreements on that subject with the
      exception of awards previously granted and delivered to Participant under the
      Plan.

     

     

    
      	
              URS
                Corporation 

               

            	 	 	 Participant:
	By:
              /s/ Joseph Masters	 	 	By:/s/
              Martin
              M. Koffel 
	
              

            	 	 	
              

              Martin
                M. Koffel

            
	           
              Joseph Masters

                         
                Vice President and General Counsel 

            	 	 	
               

                                                  

            
	 	 	 	 Date: December 7,
              2006

     

    

    Attachments:
       Restricted
      Stock Award Agreement and 1999 Incentive Equity Plan

    

    
      
        
           

        

        
        

      

      
        1

        
          

        

      

      
        
        

        
        

      

    

    Attachment
      I

     

    RESTRICTED
      STOCK AWARD AGREEMENT

    

    
      
        
           

        

        
        

      

      
        2

        
          

        

      

      
        
        

        
        

      

    

    URS
      Corporation

    1999
      Incentive Equity Plan

     

    Restricted
      Stock Award Agreement

     

    Pursuant
      to the Restricted Stock Award Grant Notice (“Grant Notice”) and this Restricted
      Stock Award Agreement (collectively, the “Award”) and in consideration of your
      past services, URS Corporation (the “Company”) has awarded you a restricted
      stock award under its 1999 Incentive Equity Plan (the “Plan”) for the number of
      shares of the Company’s Common Stock subject to the Award indicated in the Grant
      Notice. Except where indicated otherwise, defined terms not explicitly defined
      in this Restricted Stock Award Agreement but defined in the Plan shall have
      the
      same definitions as in the Plan.

     

    The
      details of your Award are as follows:

     

    1.  Vesting.
      Subject
      to the limitations contained herein, your Award shall vest as provided in your
      Grant Notice, and any portion of your Award that does not vest due to either
      the
      termination of your Continuous Service or the failure to satisfy a Performance
      Goal shall be canceled. Notwithstanding the foregoing, your Award shall become
      vested in its entirety either (i) in the circumstances providing for accelerated
      vesting under the terms of your Employment Agreement, dated as of September
      5,
      2003, between you and URS Corporation, as amended by the First Amendment dated
      as of December 7, 2006, and as it may be amended subsequently from time to
      time
      (the “Employment Agreement”), while your Employment Agreement is in effect, or
      (ii) in the circumstances provided in Section 13(c) of the Plan. The shares
      subject to your Award will be held by the Company until your interest in such
      shares vests. As each portion of your interest in the shares vests, the Company
      shall issue you a stock certificate covering such vested shares.

     

    2.  Number
      of Shares.
      The
      number of shares subject to your Award may be adjusted from time to time for
      Capitalization Adjustments, as provided in the Plan.

     

    3.  Payment.
      This
      Award was granted in consideration of your past services to the Company and
      its
      Affiliates. Subject to Section 10 below, you will not be required to make any
      payment to the Company with respect to your receipt of the Award or the vesting
      thereof. 

     

    4.  Securities
      Law Compliance.
      You
      will not be issued any shares of Common Stock under your Award unless either
      (a)
      such shares are then registered under the Securities Act or (b) the Company
      has
      determined that such issuance would be exempt from the registration requirements
      of the Securities Act. Your Award must also comply with other applicable laws
      and regulations governing the Award, and you will not receive such shares if
      the
      Company determines that such receipt would not be in material compliance with
      such laws and regulations.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    5.  Transfer
      Restrictions.
      Prior to
      the time that they have vested, you may not transfer, pledge, sell or otherwise
      dispose of the shares of Common Stock subject to the Award. For example, you
      may
      not use shares subject to the Award that have not vested as security for a
      loan.
      This restriction on the transfer of shares will lapse with respect to vested
      shares when such shares vest. Notwithstanding the foregoing, you may, by
      delivering written notice to the Company, in a form satisfactory to the Company,
      designate a third party who, in the event of your death, shall thereafter be
      entitled to receive vested shares as of the date of your death.

     

    6.  Termination
      of Continuous Service.

     

    (a)  Except
      as
      may be provided in your Employment Agreement and subject to Section 1 hereof,
      in
      the event your Continuous Service terminates for reasons other than your death
      or Disability (as that term is defined in your Employment Agreement), you will
      be credited with the vesting that has accrued under your Award as of the date
      of
      your termination of Continuous Service. Except as may be provided in your
      Employment Agreement and subject to Section 1 hereof, you will accrue no
      additional vesting of your Award following your termination of Continuous
      Service. To the extent your Award is not vested on the date of your termination,
      it shall automatically lapse on such date. 

     

    (b)  In
      the
      event your Continuous Service terminates due to your death, the Award
      automatically shall become vested in full as of the date of your death and
      your
      rights under the Award shall pass by will or the laws of descent and
      distribution; provided,
      however,
      that
      you may designate a beneficiary to receive your vested shares as set forth
      in
      Section 5 hereof.

     

    (c)  In
      the
      event your Continuous Service terminates due to your Disability (as that term
      is
      defined in your Employment Agreement), the Award automatically shall become
      vested in full as of the date of your termination of Continuous
      Service.

     

    7.  Restrictive
      Legends.
      The
      shares issued under your Award shall be endorsed with appropriate legends
      determined by the Company as applicable.

     

    8.  Rights
      as a Stockholder.
      You
      shall
      exercise all rights and privileges of a stockholder of the Company with respect
      to the shares subject to your Award. You shall be deemed to be the holder of
      the
      shares for purposes of receiving any dividends which may be paid with respect
      to
      such shares and for purposes of exercising any voting rights relating to such
      shares, even if some or all of such shares have not yet vested.

     

    9.  Award
      not a Service Contract.
      Your
      Award is not an employment or service contract, and nothing in your Award shall
      be deemed to (i) alter the terms of your Employment Agreement or (ii) create
      in
      any way whatsoever any obligation on your part to continue in the employ of
      the
      Company or any Affiliate thereof, or on the part of the Company or any Affiliate
      thereof to continue your employment or service. In addition, nothing in your
      Award shall obligate the Company or any Affiliate thereof, their respective
      stockholders, boards of directors, officers or employees to continue any
      relationship that you might have as a director or consultant for the Company
      or
      any Affiliate thereof.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    10.  Withholding
      Obligations.

     

    (a)  At
      the
      time your Award is made, or at any time thereafter as requested by the Company,
      you hereby authorize withholding from payroll and any other amounts payable
      to
      you, and otherwise agree to make adequate provision for any sums required to
      satisfy the federal, state, local and foreign tax withholding obligations of
      the
      Company or any Affiliate thereof, if any, which arise in connection with your
      Award. Such withholding obligations may be satisfied by your relinquishment
      of
      your right to receive a portion of the shares otherwise issuable to you pursuant
      to the Award; provided,
      however,
      that you
      shall not be authorized to relinquish your right to shares with a fair market
      value in excess of the amount required to satisfy the minimum amount of tax
      required to be withheld by law.

     

    (b)  Unless
      the tax withholding obligations of the Company and/or any Affiliate thereof
      are
      satisfied, the Company shall have no obligation to issue a certificate for
      such
      shares or release such shares from any escrow provided for herein.

     

    11.  Tax
      Consequences.  The
      acquisition and vesting of the shares may have adverse tax consequences to
      you
      that may be mitigated by filing an election under Section 83(b) of the Code.
      Such election must be filed within thirty (30) days after the date of the grant
      of your Award. YOU ACKNOWLEDGE THAT IT IS YOUR OWN RESPONSIBILITY, AND NOT
      THE
      COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF YOU
      REQUEST THE COMPANY TO MAKE THE FILING ON YOUR BEHALF.

     

    12.  Notices.
      Any
      notices provided for in your Award or the Plan shall be given in writing and
      shall be deemed effectively given upon receipt or, in the case of notices
      delivered by the Company to you, five (5) days after deposit in the United
      States mail, postage prepaid, addressed to you at the last address you provided
      to the Company.

     

    13.  Miscellaneous.

     

    (a)   The
      rights and obligations of the Company under your Award shall be transferable
      to
      any one or more persons or entities, and all covenants and agreements hereunder
      shall inure to the benefit of, and be enforceable by the Company’s successors
      and assigns. Your rights and obligations under your Award may only be assigned
      with the prior written consent of the Company. 

     

    (b)  You
      agree
      upon request to execute any further documents or instruments necessary or
      desirable in the sole determination of the Company to carry out the purposes
      or
      intent of your Award.

     

    (c)  You
      acknowledge and agree that you have reviewed your Award in its entirety, have
      had an opportunity to obtain the advice of counsel prior to executing and
      accepting your Award and fully understand all provisions of your
      Award.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    14.  Governing
      Plan Document.
      Your
      Award is subject to all the provisions of the Plan, the provisions of which
      are
      hereby made a part of your Award, and is further subject to all interpretations,
      amendments, rules and regulations which may from time to time be promulgated
      and
      adopted pursuant to the Plan. In the event of any conflict between the
      provisions of your Award and those of the Plan, the provisions of the Plan
      shall
      control.

     

    

     

    

     

    
      
        
           

        

        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

    Attachment
      II

     

    1999
      INCENTIVE EQUITY PLAN

     

    

     

    
      
        
        

      

      
        7

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