Document:

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                                                                   EXHIBIT 10(l)

                             RETENTION BONUS PLAN

     This Retention Bonus Plan (the "Plan") provides eligible employees of
REPUBLIC GROUP INCORPORATED (the "Company") with the opportunity to receive
retention bonuses, provided they remain in the employ of the Company through the
completion of a Change in Control (as hereinafter defined) of the Company and a
designated transition period thereafter. The Plan shall become effective upon
its adoption by the Company's Board of Directors (the "Board") and shall
terminate in accordance with Parts III and IV(7) hereof.

I.   ELIGIBILITY

          An employee of the Company shall be eligible to receive his or her
     designated retention bonus under the Plan if each of the following
     requirements is satisfied;

     (1)  the Board has selected such employee for participation in the Plan and
          the Company has delivered to the employee his retention bonus award
          letter prior to a Change in Control; and

     (2)  the employee remains actively employed by the Company or a successor
          on each Bonus Payment Date, or, prior to each such Date, the
          occurrence of any of the following events: (a) the involuntary
          termination of such employee's employment by the Company or a
          successor for any reason other than for Cause, (b) the employee's
          resignation for Good Reason.

          During the period that an employee satisfies the requirements set
     forth above, such employee shall be considered an "Eligible Employee".

          The amount of each Eligible Employee's retention bonus shall be
     determined by the Board at the time of such Eligible Employee's selection
     for participation in the Plan and shall be indicated on the retention bonus
     award letter attached hereto as Appendix A.

          An employee who would otherwise be an Eligible Employee will not be
     eligible for any retention bonus payable on a Bonus Payment Date after:

               .    such employee voluntarily terminates employment with the
                    Company or a successor other than for Good Reason,

               .    such employee's death or Disability,

               .    such employee is terminated by the Company or a successor
                    for Cause.

               For purposes of the Plan, the following definitions shall be in
               effect:

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               .    "Bonus Payment Dates" shall mean (i) the date of a Change in
                    Control, (ii) the date that is six (6) months following a
                    Change in

               .    Control, and (iii) if occurring prior to the date set forth
                    in (ii), the date of the involuntary termination of an
                    Eligible Employee's employment by the Company or a successor
                    for any reason other than for Cause, or the Eligible
                    Employee's resignation for Good Reason.

               .    "Cause" shall mean (i) fraud, embezzlement or theft
                    constituting a felony, (ii) willful and continued gross
                    inattention to the duties owed to the Company (other than by
                    reason of illness, accident or other physical or mental
                    incapacity), after a written demand for performance is
                    delivered to the employee by the Board or the Chief
                    Executive Officer of the Company which specifically
                    identifies the manner in which the Board or Chief Executive
                    Officer believes that the employee has not performed the
                    employee's duties, or (iii) any intentional or willful act
                    (or omission) that is materially injurious to the Company,
                    monetarily or otherwise. For purposes of this paragraph, an
                    act or omission is not "willful" unless it is done not in
                    good faith and without a reasonable belief that the act (or
                    omission) is in the best interests of the Company.

               .    "Change in Control" shall mean a change in the beneficial
                    ownership of the Company's voting stock or a change in the
                    composition of the Board which occurs as follows:

                    (i)   any "person" (as such term is used in Sections 13(d)
                          and 14(d)(2) of the Securities Exchange Act of 1934),
                          other than the Company, an executive officer of the
                          Company or his Affiliates, any employee benefit plan
                          of the Company, or any trustee of such a plan, is or
                          becomes a beneficial owner, directly or indirectly, of
                          stock of the Company representing thirty-five percent
                          (35%) or more of the total voting power of the
                          Company" then outstanding voting stock. "Affiliates"
                          refers to those persons defined in Rule 12b-2 under
                          the Securities Exchange Act of 1934, as amended;

                    (ii)  a tender offer (for which a filing has been made with
                          the Securities and Exchange Commission ("SEC") which
                          purports to comply with the requirements of Section
                          14(d) of the Securities Exchange Act of 1934 and the
                          corresponding SEC rules) is made for the stock of the
                          Company, which has not been negotiated and approved by
                          the Board, provided that in the case of a tender offer

Retention Bonus Plan                                                     Page 2
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                          described in this paragraph (ii), the Change in
                          Control will be deemed to have occurred upon the first
                          to occur of (a) any time during the offer when the
                          person (using the definition in (i) above) making the
                          offer owns or has accepted for payment stock of the
                          Company with thirty-five percent (35%) of the total
                          voting power of the Company's stock or (b) three (3)
                          business days before the offer is to terminate unless
                          the offer is withdrawn first, if the person making the
                          offer could own, by the terms of the offer plus any
                          shares owned by this person, stock with thirty-five
                          percent (35%) or more of the total voting power of the
                          Company's stock when the offer terminates;

                    (iii) individuals who were the board's nominees for election
                          as directors of the Company immediately prior to a
                          meeting of the stockholders of the Company involving a
                          contest for the election of directors shall not
                          constitute a majority of the Board following the
                          election;

                    (iv)  there occurs a reorganization, merger or consolidation
                          or other transaction involving the Company (a
                          "Transaction"), with respect to which the stockholders
                          of the Company immediately prior to such Transaction
                          do not, immediately after the Transaction, own more
                          than fifty percent (50%) of the combined voting power
                          of the Company or other entity resulting from such
                          Transaction; or

                    (v)   all or substantially all of the assets of the Company
                          are sold, liquidated or distributed.

                    For purposes hereof, a person will be deemed to be the
                    beneficial owner of any voting securities of the Company
                    which it would be considered to own beneficially under SEC
                    Rule 13d-3 (or any similar or superseding statute or rule)
                    from time to time in effect.

               .    "Disability" shall mean an employee's inability, by reason
                    of physical or mental impairment, to engage in any
                    substantial gainful activity, of which the Board shall be
                    the sole judge.

               .    "Good Reason" shall mean one or more of the following
                    changes to the terms and conditions of an employee's
                    employment with the Company or a successor after a Change in
                    Control: (i) any change in the employee's position with the
                    Company to a position of lesser authority, (ii) any material
                    reduction in the employee's salary, bonuses, or employee
                    benefits; (iii) any change in the employee's

Retention Bonus Plan                                                   Page 3
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                    job location or more than fifty (50) miles without
                    employee's consent; or (iv) any change in the circumstances
                    of employment which results in employee's inability to carry
                    out the duties, authority and powers attached to his
                    position.

II.  TERMS OF THE PLAN

          The amount of the retention bonus that will be payable to each
     individual Eligible Employee pursuant to the Plan shall be set forth in an
     award letter in the form attached to this Plan as Appendix A.

          The retention bonus will be payable in two  installments, 50% upon the
     date of a Change in Control, and the remaining 50% upon the date that is
     six (6) months following a Change in Control.   An Eligible Employee must
     remain employed by the Company or a successor in order to receive the
     installment payable on that date. However, if an Eligible Employee is
     involuntarily terminated by the Company or a successor other than for
     Cause, or resigns for Good Reason, then such Eligible Employee will receive
     the full amount (or the remaining balance, as the case may be) of his or
     her retention bonus in a lump-sum payment as soon as administratively
     feasible following the termination date.

          Retention bonuses do not constitute eligible earnings or compensation
     for purposes of any other employee plans, programs or arrangements now or
     hereafter offered by the Company or a successor.  Therefore, retention
     bonuses are not eligible for 401(k) plan savings election deferrals, and
     are not considered in determining your compensation under any of the
     Company's retirement or welfare benefit plans.

          Payment of the retention bonus will be subject to the collection by
     the Company or the successor of all applicable federal, state and local
     income and employment withholding taxes.

III. DURATION OF THE PLAN

          The Plan shall become effective upon its adoption by the Board.  If no
     Change of Control has occurred as of September 1, 2000, the Plan shall
     terminate on such date unless the Board, by written resolution, elects in
     its sole discretion to extend the term of the Plan for an additional period
     specified by the Board.  Notwithstanding any provision of this Plan to the
     contrary, if an Eligible Employee becomes entitled to a retention bonus
     before the Plan terminates, the employee's right to receive such bonus
     shall not be affected by the subsequent termination of the Plan.

IV.  OTHER IMPORTANT INFORMATION

     (1)  Plan Administration.  Within the scope of the terms of the Plan and in
          -------------------
          accordance therewith, as the administrator of the Plan, the Board has
          full discretionary authority to administer and interpret the Plan,
          including the discretionary authority to determine eligibility for
          participation and benefits under the Plan and the

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          amount of benefits (if any) payable per participant. All such
          determinations by the Board shall be final, binding and conclusive
          upon all persons.

     (2)  Benefits.  All bonuses will be paid from the general assets of the
          --------
          Company.  The Company will not establish any trust or escrow to fund
          the benefits which may become due and payable under the Plan.  The
          benefits provided under the Plan are not assignable or transferable.
          However, should a participant die prior to receipt of all or any
          portion of the retention bonus to which he or she becomes entitled
          under the Plan, then that unpaid amount shall be paid to the executor
          or administrator of that participant's estate.

     (3)  Successor Liability.  The terms and provisions of this Plan shall be
          -------------------
          binding upon any successor entity to the Company (including, without
          limitation, any assignee of all or substantially all of the assets of
          the Company), and such successor entity shall accordingly be liable
          for the payment of all benefits which become due and payable under the
          Plan with respect to the eligible employees of the Company.

      (4) Taxes.  The Company or a successor will withhold taxes and all other
          -----
          applicable payroll deductions from any payment made pursuant to the
          Plan.  Except to the extent otherwise agreed by the Company in
          writing, to the extent any retention bonus paid to any eligible
          employee under the Plan constitutes an "excess parachute payment"
          within meaning of Section 280G(b) of the Internal Revenue Code of
          1986, as amended, that employee shall be solely responsible for any
          and all excise taxes attributable to such payment, and those excise
          taxes shall accordingly be withheld from the retention bonus payable
          to such individual.

     (5)  No Right to Employment.  No provision of the Plan is intended to
          ----------------------
          provide any employee with any right to continue in the employ of the
          Company or a successor or otherwise affect the right of the Company or
          a successor, which right is hereby expressly reserved, to terminate
          the employment of any individual at any time for any reason, with or
          without Cause.

     (6)  Amendment or Termination of Plan.  The Board reserves the right to
          --------------------------------
          amend or terminate the Plan at any time prior to a Change in Control;
          provided, however, no amendment or termination will affect any
          Eligible Employee's entitlement to a retention bonus that has become
          payable prior to such amendment or termination.

     (7)  Applicable Law.  This Plan shall be governed by the laws of the State
          --------------
          of Texas, without giving effect to the conflicts of laws principles
          thereof

                                            REPUBLIC GROUP INCORPORATED

                                            By: /s/ Phil Simpson
                                               -------------------------------

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                                           Phil Simpson
                                    Name:___________________________
                                           Chairman of the Board
                                    Title:__________________________

Retention Bonus Plan                                                    Page 6
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                     APPENDIX A - For Participants in the
                        Key Employee Continuation Plan

                          REPUBLIC GROUP INCORPORATED

June 6, 2000

________________________________
________________________________
________________________________

Dear_________________:

     In recognition of your efforts, the contributions you have made, and the
future contributions you will continue to make as an employee of Republic Group
Incorporated  (the "Company"), we are offering you the opportunity to earn a
special Retention Bonus (the 'Retention Bonus") in the amount indicated below.
The Retention Bonus will be fully subject to the terms of the Retention Bonus
Plan, to which this award letter is attached as Appendix A.

     The Retention Bonus is intended to encourage you to continue your
employment with the Company (and to reward you for such service) during the
period leading up to, and for a transition period following,  a transaction in
which the Company may be sold.  Your Retention Bonus is  generally payable in
two installments,  the first payment date  being the date of the closing of  a
transaction for the sale of the Company, when 50% of your Retention Bonus will
be paid.  The remaining 50% of your Retention Bonus will be paid on the second
payment date, which will occur on the earlier of (i) the date that is 6 months
after the closing, (ii) your termination by the Company for any reason other
than Cause, or (iii) your resignation for Good Reason.  Cause and Good Reason
shall have the meanings assigned to them in the Plan document.

     Please note that this letter is not a guarantee of continuing employment or
an employment contract between you and the Company.  You remain an at-will
employee of the Company.

     You are also a participant in the Company's Key Employee Continuation Plan,
adopted in 1991.  The Continuation Plan was originally intended to protect the
Company's key executives from the risk of involuntary termination of their
employment following a hostile takeover of the Company. The Company's Board of
Directors has amended the Continuation Plan so that, if a negotiated merger or
other transaction occurs, and your employment is involuntarily terminated within
one year thereafter, the Continuation Plan benefits will be triggered.  However,
the

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Company does not intend that key executives who participate in both programs
receive "double" benefits.  Therefore, the Continuation Plan has been amended to
provide that, if you are terminated by the buyer within one year after a
transaction, your Continuation Plan termination payment will be reduced by an
amount equal to 50% of the Retention Bonus that you received.  Attached to this
letter is a copy of the amended Continuation Plan with the new provisions
highlighted for your reference.  By your execution and delivery of this letter,
you agree to such amendment of the Continuation Plan and any award letter
thereunder, and accept your participation in the Retention Bonus Plan.

     This letter will become effective upon your execution of it in the space
provided below and its delivery to the Company.

                              REPUBLIC GROUP INCORPORATED

                              By:_______________________________
                              Name:_____________________________
                              Title:____________________________

Amount of Retention Bonus Award: ____ times your base salary

ACCEPTED AND AGREED TO:
-----------------------

_________________________________
Employee

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          APPENDIX A - For Participants who do not participate in the
                        Key Employee Continuation Plan

                          REPUBLIC GROUP INCORPORATED

June 6, 2000

________________________________
________________________________
________________________________

Dear_____________________:

     In recognition of your efforts, the contributions you have made, and the
future contributions you will continue to make as an employee of Republic Group
Incorporated  (the "Company"), we are offering you the opportunity to earn a
special Retention Bonus (the 'Retention Bonus") in the amount indicated below.
The Retention Bonus will be fully subject to the terms of the Retention Bonus
Plan, to which this award letter is attached as Appendix A.

     The Retention Bonus is intended to encourage you to continue your
employment with the Company (and to reward you for such service) during the
period leading up to, and for a transition period following,  a transaction in
which the Company may be sold.  Your Retention Bonus is generally payable in two
installments, the first payment date being the date of the closing of a
transaction for the sale of the Company, when 50% of your Retention Bonus will
be paid.  The remaining 50% of your Retention Bonus will be paid on the second
payment date, which will occur on the earlier of (i) the date that is 6 months
after the closing, (ii) your termination by the Company for any reason other
than Cause, or (iii) your resignation for Good Reason.  Cause and Good Reason
shall have the meanings assigned to them in the Plan document.

     Please note that this letter is not a guarantee of continuing employment or
an employment contract between you and the Company.  You remain an at-will
employee of the Company.

     By your execution and delivery of this letter, you accept your
participation in the Retention Bonus Plan.  This letter will become effective
upon your execution of it in the space provided below and its delivery to the
Company.

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                              REPUBLIC GROUP INCORPORATED

                              By:__________________________________
                              Name:________________________________
                              Title:_______________________________

Amount of Retention Bonus Award: ____ times your base salary

ACCEPTED AND AGREED TO:
-----------------------

__________________________________
Employee

Retention Bonus Plan                                                    Page 10THIS  AGREEMENT is entered into as of November 19, 1999, by and between
DAVID c. NELSON (the  "Employee") and URS  CORPORATION,  a Delaware  corporation
(the "Company").

         1.  Employment.  The Company agrees to employ the Employee and Employee
agrees to be employed by the Company in accordance with the terms and conditions
set forth in the November 19, 1999  confirmation of offer letter (the "Letter"),
as such terms and  conditions  may now exist or may hereafter be altered  and/or
changed.  All terms and  conditions of the  Employee's  employment  that are not
governed by this  Agreement or by the Letter shall be governed by the  Company's
policies  and  procedures  which are set  forth in the  Company's  Policies  and
Procedures Manual.

         2.  Termination of Employment.

             (a) Basic Rule.  The  Company  agrees to  continue  the  Employee's
employment,  and the  Employee  agrees  to  remain  in the  employment  with the
Company,  from the date  hereof  until the date when the  Employee's  employment
terminates pursuant to Subsection (b), (c), or (d) below.

             (b)  Early  Termination.  Subject  to  Sections  3  and  4 of  this
Agreement,  the Company may  terminate the  Employee's  employment by giving the
Employee 30 days'  advance  notice in writing.  The Employee may  terminate  his
employment  by giving  the  Company  30 days'  advance  notice in  writing.  The
Employee's  employment shall terminate  automatically in the event of his death.
Any waiver  notice  shall be valid only if it is made in writing  and  expressly
refers to the applicable notice requirement of this Section 2(b).

             (c) Cause.  Subject to Section 3, the  Company  may  terminate  the
Employee's  employment  for Cause by giving the Employee 30 days' advance notice
in writing.  For all purposes  under this  Agreement,  "Cause"  shall mean (i) a
willful failure by the Employee to substantially perform his duties as Treasurer
(or any other applicable  position(s)),  other than a failure resulting from the
Employee's  complete or partial  incapacity due to physical or mental illness or
impairment,  (ii)  a  willful  act  by  the  Employee  which  constitutes  gross
misconduct or fraud and which is materially  injurious to the Company,  or (iii)
conviction  of, or a plea of "guilty" or "no contest"  to, a felony.  No act, or
failure to act, by the Employee shall be considered  "willful"  unless committed
without good faith and without a reasonable  belief that the act or omission was
in the Company's best interest.

             (d) Disability. Subject to Section 3, the Company may terminate the
Employee's  active  employment due to Disability by giving the Employee 30 days'

                                       25

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advance notice in writing.  For all purposes under this Agreement,  "Disability"
shall mean that the Employee, at the time notice is given, has performed none of
his duties as Treasurer (or any other  applicable  position(s))  for a period of
not less  than 180  consecutive  days as the  result  of his  incapacity  due to
physical  or  mental  illness.  In the  event  that  the  Employee  resumes  the
performance  of  substantially  all of his  duties  as  Treasurer  (or any other
applicable  position(s))  before the termination of his active  employment under
this  Subsection  (d)  becomes  effective,   the  notice  of  termination  shall
automatically be deemed to have been revoked.

             (e)  Rights  Upon  Termination.  Except as  expressly  provided  in
Sections 3 and 4, upon the termination of the Employee's  employment pursuant to
this  Section  2, the  Employee  shall  only be  entitled  to the  compensation,
reimbursements,  and/or  benefits to which the Employee is or may be entitled to
receive for the period  preceding the  effective  date of the  termination.  The
payments under this Agreement shall fully discharge all  responsibilities of the
Company to the Employee.

             (f)  Termination of Agreement.  This Agreement shall terminate when
all obligations of the parties hereunder have been satisfied.

         3. Change in Control.

             (a) Definition.  For all purposes under this Agreement,  "Change in
Control"  shall have the meaning  assigned  to that term in the URS  Corporation
1999 Equity Incentive Plan, as such plan may be amended from time to time.

             (b) Severance Payment. If, during the term of this Agreement and at
any time after the occurrence of a Change in Control, the Company terminates the
Employee's  employment for any reason other than Cause,  then the Employee shall
be entitled  to receive a severance  payment  from the Company  (the  "Severance
Payment").  The Severance Payment shall be made in a lump sum not more than five
business days following the date of the employment  termination  and shall be in
an amount  determined under Subsection (d) below. The Severance Payment shall be
in lieu of any  further  payments  of  compensation  to and/or  any  accrual  of
benefits on behalf of the  Employee  with respect to periods  subsequent  to the
date of the employment termination.

             (c) Amount.  The amount of the Severance  Payment shall be equal to
12 months of base  compensation  (as is in effect at the time of the termination
of employment), reduced by applicable income and payroll taxes. Further, any and
all  unvested  stock  options  held by the Employee on the date of the Change in
Control shall become immediately exercisable.

             (d) No  Mitigation.  The Employee shall not be required to mitigate
the amount of any payment contemplated by this Section 3 (whether by seeking new
employment or in any other manner), nor shall any such payment be reduced by any
earnings that the Employee may receive from any other source.

                                       26

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         4.  Involuntary Termination Without Cause.

             (a)  Payment.  In the  event  that,  within  the  first  24  months
following the Employee's  first day of employment with the Company,  the Company
terminates the Employee's employment for the convenience of the Company, and not
for Cause or Disability,  and Section 3 does not apply,  then the Employee shall
be  entitled  to  receive  a lump  sum  payment  equal  to six  months  of  base
compensation,  reduced by applicable income and payroll taxes.  Payment shall be
made not more than  five  business  days  following  the date of the  employment
termination and shall be in an amount determined under Subsection (b) below.

             (b) No  Mitigation.  The Employee shall not be required to mitigate
the amount of any payment contemplated by this Section 4 (whether by seeking new
employment or in any other manner), nor shall any such payment be reduced by any
earnings that the Employee may receive from any other source.

         5.  Limitation on Payments.

             (a)  Basic   Rule.   Any   other   provision   of  this   Agreement
notwithstanding,  the  Company  shall not be required to make any payment to, or
for the benefit of, the Employee  (under this Agreement or otherwise) that would
be  nondeductible  by the  Company  by reason of  Section  280G of the  Internal
Revenue  Code of 1986,  as  amended  (the  "Code"),  or that would  subject  the
Employee  to  the  excise  tax  described  in  Section  4999  of the  Code.  All
calculations  required by this Section 5 shall be  performed by the  independent
auditors  retained by the Company most  recently  prior to the Change in Control
(the "Auditors"), based on information supplied by the Company and the Employee,
and shall be binding on the Company and the  Employee.  All fees and expenses of
the Auditors shall be paid by the Company.

             (b)  Reductions.  If the amount of the  aggregate  payments  to the
Employee must be reduced under this Section 5, then the Employee shall direct in
which order the payments  are to be reduced,  but no change in the timing of any
payment shall be made without the Company's consent.  As a result of uncertainty
in the  application  of  Sections  280G  and  4999 of the Code at the time of an
initial  determination by the Auditors hereunder,  it is possible that a payment
will  have  been  made by the  Company  that  should  not  have  been  made  (an
"Overpayment") or that an additional payment that will not have been made by the
Company  could  have  been  made  (an  "Underpayment").  In the  event  that the
Auditors, based on the assertion of a deficiency by the Internal Revenue Service
against  the  Company  or the  Employee  that the  Auditors  believe  has a high
probability  of  success,  determine  that an  Overpayment  has been made,  such
Overpayment  shall be treated for all purposes as a loan to the Employee that he
shall repay to the Company,  together  with interest at the  applicable  federal
rate specified in Section  7872(f)(2) of the Code;  provided,  however,  that no
amount shall be payable by the Employee to the Company if and to the extent that
such payment  would not reduce the amount that is  nondeductible  under  Section
280G of the Code or is subject to an excise

                                       27

<PAGE>

tax under  Section 4999 of the Code.  In the event that the  Auditors  determine
that an Underpayment has occurred,  such Underpayment  shall promptly be paid or
transferred  by the Company to, or for the  benefit of, the  Employee,  together
with interest at the applicable  federal rate specified in Section 7872(f)(2) of
the Code.

         6.  Successors.

             (a) Company's  Successors.  The Company shall require any successor
(whether   direct  or  indirect   and  whether  by  purchase,   lease,   merger,
consolidation,  liquidation  or  otherwise) to all or  substantially  all of the
Company's  business  and/or  assets,  by an  agreement  in  substance  and  form
satisfactory to the Employee, to assume this Agreement and to agree expressly to
perform this  Agreement in the same manner and to the same extent as the Company
would be required to perform it in the absence of a  succession.  The  Company's
failure to obtain such  agreement  prior to the  effectiveness  of a  succession
shall be a breach of this Agreement and shall entitle the Employee to all of the
compensation and benefits to which he would have been entitled  hereunder if the
Company had  involuntarily  terminated his employment  without Cause immediately
after such succession become  effective.  For all purposes under this Agreement,
the term "Company" shall include any successor to the Company's  business and/or
assets which  executes and delivers the assumption  agreement  described in this
Subsection 6(a) or which becomes bound by this Agreement by operation of law.

             (b)  Employee's  Successors.  This  Agreement and all rights of the
Employee  hereunder  shall inure to the benefit of, and be  enforceable  by, the
Employee's  personal  or  legal  representatives,   executors,   administrators,
successors, heirs, distributees, devisees and legatees.

         7.  Miscellaneous Provisions.

             (a) Notice.  Notices and all other  communications  contemplated by
this  Agreement  shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by U.S. registered mail, return receipt
requested and postage prepaid. In the case of the Employee, mailed notices shall
be addressed to him at the home address which he most recently  communicated  to
the Company in writing.  In the case of the  Company,  mailed  notices  shall be
addressed to its  corporate  headquarters,  and all notices shall be directed to
the attention of its Secretary.

             (b) Waiver.  No  provision  of this  Agreement  shall be  modified,
waived or discharged unless the  modification,  waiver or discharge is agreed to
in  writing  and  signed by the  Employee  and by an  authorized  officer of the
Company (other than the  Employee).  No waiver by either party of any breach of,
or of compliance with, any condition or provision of this Agreement by the other
party shall be  considered  a waiver of any other  condition or provision of the
same condition or provision at another time.

                                       28

<PAGE>

             (c) No Setoff; Withholding Taxes. There shall be no right of setoff
or counterclaim, with respect to any claim, debt or obligation, against payments
to the Employee  under this  Agreement.  All payments made under this  Agreement
shall be subject to a reduction to reflect taxes required to be withheld by law.

             (d) Choice of Law. The validity,  interpretation,  construction and
performance  of this  Agreement  shall be  governed  by the laws of the State of
California.

             (e)  Severability.   The  invalidity  or  unenforceability  of  any
provision  or  provisions  of this  Agreement  shall not affect the  validity or
enforceability of any other provision  hereof,  which shall remain in full force
and effect.

             (f)  Arbitration.  Except as  otherwise  provided in Section 5, any
controversy or claim arising out of or relating to this Agreement, or the breach
thereof,  shall be settled by  arbitration  in  accordance  with the  Commercial
Arbitration Rules of the American Arbitration  Association,  and judgment on the
award rendered by the arbitrator may be entered in any court having jurisdiction
thereof.  All fees and expenses of the arbitrator and such Association  shall be
paid by the Company.

             (g) No  Assignment.  The  rights of any person to  payments  and/or
benefits under this Agreement shall not be made subject to option or assignment,
either by voluntary or involuntary  assignment or by operation of law, including
(without  limitation)  bankruptcy,  garnishment,  attachment or other creditor's
process, and any action in violation of this Subsection g) shall be void.

         IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized  officer,  as of the day and year
first above written.

                                                    /s/ David C. Nelson
                                                    --------------------
                                                    David C. Nelson

                                                    URS CORPORATION

                                                    By:  /s/ Kent P. Ainsworth
                                                         -----------------------
                                                         Kent P. Ainsworth
                                                         Chief Financial Officer

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