Document:

exv10w2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is entered into as of May 31, 2005, by
and between H. Thomas Hicks (the “Employee”) and URS Corporation, a Delaware
corporation (the “Company”).

	 	1.  	Term Of Employment.

          (a) Basic Rule. The Company agrees to employ the Employee, and the Employee agrees to remain
in employment with the Company, from September 3, 2005 until the date on which the Employee’s
employment terminates pursuant to Subsection (b), (c), (d), (e) or (f) below.

          (b) Termination by Company Without Cause. The Company may terminate the Employee’s employment
at any time without Cause (as defined below) by giving the Employee thirty (30) days’ advance
notice in writing.

          (c) Termination by Company for Cause. The Company may terminate the Employee’s employment at
any time, with or without advance notice, for Cause. For all purposes under this Agreement,
“Cause” shall mean:

               (i) A willful failure or omission of the Employee to substantially perform his duties
hereunder, other than as a result of the death or Disability (as defined below) of the Employee;

               (ii) A willful act by the Employee that constitutes gross misconduct or fraud;

               (iii) The Employee’s conviction of, or plea of “guilty” or “no contest” to, a felony, or any
misdemeanor involving dishonesty;

               (iv) The Employee’s disobedience of lawful orders or directives of the Chief Financial Officer
(the “Chief Financial Officer”) or Chief Executive Officer (the “Chief Executive Officer”) of the
Company, or their respective designees, or of the Board of Directors of the Company or a duly
appointed committee thereof (collectively, the “Board”); or

               (v) The Employee’s breach of any agreement with the Company.

          (d) Resignation by Employee. The Employee may terminate his employment by giving the Company
thirty (30) days’ advance notice in writing.

          (e) Death of Employee. The Employee’s employment shall terminate automatically and
immediately in the event of his death.

          (f) Disability. Subject to applicable laws, the Company may terminate the Employee’s
employment due to Disability by giving the Employee thirty (30) days’ advance notice in writing.
For all purposes under this Agreement, “Disability” shall mean that the

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Employee, at the time the notice is given, has performed none of his duties under this
Agreement for a period of not less than one hundred eighty (180) consecutive days as a result of
any physical or mental injury or illness. In the event the Employee resumes the performance of
substantially all of his duties hereunder before termination of his active employment under this
Section 1(f) becomes effective, the notice of termination shall automatically be deemed to have
been revoked.

          (g) Rights Upon Termination. Except as expressly provided in Sections 6 and 7, upon the
termination of the Employee’s employment pursuant to this Section 1, the Employee shall only be
entitled to the compensation, benefits and reimbursements described in Sections 3, 4 and 5 for the
period preceding and including the effective date of the termination, which shall include all
accrued and unused vacation, all of which shall fully discharge all responsibilities of the
Company, its subsidiary and affiliated corporations and related entities (collectively, “URS” and,
individually, a “URS Entity”) to the Employee.

          (h) Employment by Affiliate. The employment of the Employee shall not be considered to have
terminated for purposes of this Agreement if the Employee is employed by any URS Entity.

          (i) Termination of Agreement. This Agreement shall terminate on the earlier of the tenth
(10th) anniversary of the date of this Agreement or the date when all obligations of the parties
hereunder have been satisfied.

	 	2.  	Duties And Scope Of Employment.

          (a) Position. The Company agrees to employ the Employee in an executive position during the
term of his employment under this Agreement as follows:

               (i) For the period from September 3, 2005 until March 1, 2006 or, if later, the date on which
the Company files its Annual Report on Form 10-K for the fiscal year ending December 30, 2005 with
the U.S. Securities and Exchange Commission (the “SEC”), the Company agrees to employ the Employee
as Vice President, Finance (the “Transition Period”); and

               (ii) For the period commencing on the first day following the end of the Transition Period and
for the remaining term of his employment under this Agreement, the Company agrees to employ the
Employee as Vice President and Chief Financial Officer (the “Continuation Period”).

The Employee shall report to the Chief Financial Officer during the Transition Period and shall
report to the Chief Executive Officer during the Continuation Period. The Employee shall serve in
such other positions on behalf of URS and perform such duties consistent with an executive position
for URS as are required by the Chief Executive Officer and, with respect to the Transition Period,
the Chief Financial Officer. It is anticipated that the Employee’s duties will require him to
travel frequently and extensively. If the principal office to which the Employee is assigned is
changed by the Company, the Company shall reimburse reasonable relocation expenses of the Employee
in accordance with generally applicable policies of the Company.

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          (b) Obligations. During the term of his employment under this Agreement, the Employee shall
devote his full business efforts and time to URS and shall not render services to any other person
or entity without the prior written consent of the Chief Executive Officer or his designee. The
foregoing, however, shall not preclude the Employee from (i) engaging in appropriate civic,
charitable or religious activities, (ii) devoting a reasonable amount of time to private
investments that do not interfere or conflict with his responsibilities to the Company or (iii)
serving on the boards of directors of other companies provided that prior written approval for such
service is obtained from the Chief Executive Officer or his designee and that such service does not
interfere or conflict with his responsibilities to the Company.

          (c) Resignation from Other Positions. Immediately upon request by the Company, before or
after the termination of the employment of the Employee, he shall resign from any and all positions
he holds as director, officer, trustee, nominee, agent for service of process, attorney-in-fact or
similar position with respect to any URS Entity, and shall execute, verify, acknowledge, swear to
and deliver any documents and instruments reasonably requested by the Company or required to
reflect such resignation.

	 	3.  	Base Compensation, Target Bonus And Hiring Bonus.

          (a) Base Compensation. During the term of the Employee’s employment under this Agreement, the
Company agrees to pay the Employee as compensation for his services a base salary at an annual rate
of Four Hundred Sixty-Five Thousand Dollars ($465,000), or at such higher rate as the Company may
determine from time to time in its sole discretion. Such salary shall be payable in accordance
with the Company’s standard payroll procedures. (The annual rate of compensation specified in this
Section 3, as increased by the Company from time to time in its sole discretion, is referred to in
this Agreement as “Base Compensation.”)

          (b) Target Bonus. Commencing January 1, 2006 and for the remainder of the term of the
Employee’s employment under this Agreement, the Company agrees that the Employee shall participate
in the Company’s annual bonus plan with a target bonus percentage of not less than seventy-five
percent (75%) of Base Compensation. (The annual target bonus percentage specified in this Section
3, as increased by the Company from time to time in its sole discretion, is referred to in this
Agreement as “Annual Target Bonus.”)

          (c) Hiring Bonus. The Company will pay Employee on March 31, 2006 a one-time hiring bonus in
the amount of one hundred sixteen thousand two hundred fifty dollars ($116,250); provided that the
Employee remains employed by the Company under the terms of this Agreement on December 31, 2005;
provided, further, that the Company has met the minimum Net Income Threshold set forth in the URS
Corporation Annual Incentive Compensation Plan 2005 Plan Year Document.

	 	4.  	Employee Benefits, Stock Options, Incentive Compensation And Other Compensation Plans And Programs. 

          (a) General. During the term of his employment under this Agreement, the Employee shall be
eligible to participate in the employee benefit plans, stock option and other

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equity-based incentive and compensation plans, and other executive incentive and compensation
programs maintained with respect to employees of the Company, subject in each case to (i) the
generally applicable terms and conditions of the applicable plan or program and to the
determinations of the Board or other person administering such plan or program, (ii) determinations
by URS, the Board or any such person as to whether and to what extent the Employee shall so
participate or cease to participate, and (iii) amendment, modification or termination of any such
plan or program in the sole and absolute discretion of URS.

          (b) Equity Grant. Upon commencement of the Employee’s employment under this Agreement, the
Employee shall be granted forty thousand (40,000) shares of restricted URS common stock under the
Company’s 1999 Equity Incentive Plan, such grant to provide for ratable vesting of ten thousand
(10,000) shares on the first, second, third and fourth anniversaries of the date of grant and
otherwise to be evidenced by a standard form of restricted stock award agreement. In addition,
commencing January 1, 2006, the Employee shall be eligible for additional equity grants or awards
consistent with the type and size of equity grants and awards provided to other senior executives
of the Company when such grants or awards are made generally to such senior executives as a group,
subject to the limitations specified in Section 4(a) above.

          (c) Relocation.

               (i) Relocation Bonus. Within thirty (30) days after commencement of the Employee’s employment
under this Agreement, the Company will pay the Employee a one-time relocation bonus in the amount
of four hundred thousand dollars ($400,000) to assist the Employee with the cost of purchasing a
residence in the San Francisco Bay Area (the “New Residence”).

               (ii) Relocation Expenses. Within thirty (30) days after the Employee submits to the Company
an itemized account and appropriate supporting documentation, the Company will reimburse the
Employee for reasonable relocation expenses, including moving expenses, house-hunting expenses and
air fares for the Employee and his dependents.

               (iii) Temporary Housing Allowance. For the period from the date of commencement of the
Employee’s employment under this Agreement until the earlier of (i) the date the Employee takes
possession of the New Residence or (ii) June 30, 2006, the Company will reimburse the Employee for
temporary housing costs in the San Francisco area in an aggregate amount not to exceed ten thousand
dollars ($10,000) per month.

               (iv) Satisfaction of Obligations. The above payments shall represent all relocation payments
payable by the Company to the Employee, and the Company will not be obligated to reimburse the
Employee for any amount associated with closing costs for the New Residence (e.g., closing costs,
broker commissions, mortgage points, etc.) or for any costs associated with the sale of the
Employee’s current residence, including any costs incident to such sale, any difference between the
proceeds from such sale and the cost of purchasing the New Residence, or otherwise.

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          (d) Automobile. During the term of the Employee’s employment under this Agreement, the
Company shall provide the Employee with an appropriate, American-made automobile in accordance with
the terms of the Company’s executive automobile policy as in effect from time to time.

	 	5.  	Business Expenses.

          In accordance with the Company’s generally applicable policies, (i) during the term of his
employment under this Agreement, the Employee shall be authorized to incur necessary and reasonable
travel, entertainment and other business expenses in connection with his duties hereunder, and (ii)
the Company shall reimburse the Employee for such expenses upon presentation of an itemized account
and appropriate supporting documentation.

	 	6.  	Certain Terminations Of Employment Following Change In Control.

          (a) Change in Control. For all purposes under this Agreement, “Change in Control” shall mean
that, after the date of commencement of the Employee’s employment under this Agreement, any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended), through the acquisition or aggregation of securities, becomes the beneficial owner,
directly or indirectly, of securities of the Company representing more than fifty percent (50%) of
the combined voting power of the then outstanding securities ordinarily (and apart from rights
accruing under special circumstances) having the right to vote at elections of directors of the
Company.

          (b) Good Reason. For all purposes under this Agreement, “Good Reason” shall mean that (i) the
Employee has incurred a reduction in his Base Compensation or Annual Target Bonus, (ii) the
Employee’s responsibilities and authority, as set forth in Section 2(a), have been substantially
reduced, or (iii) the Employee’s principal office is changed, without the Employee’s written
approval, to a location more than twenty-five (25) miles from the location of the Employee’s
principal office on the date hereof.

          (c) Change in Control Payment and Severance Benefits. If, during the term of the Employee’s
employment under this Agreement and within one (1) year after the occurrence of a Change in
Control, either (i) the Employee voluntarily resigns his employment for Good Reason, or (ii) the
Company terminates the Employee’s employment for any reason other than Cause or Disability, then
the Employee shall be entitled to receive a severance payment from the Company (the “Change in
Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with
Subdivision (ii) of Section 7(a). No Change in Control payment shall be made in case of
termination of employment of the Employee for Cause or by reason of resignation of the Employee
other than for Good Reason, or due to the death of Employee, or in any other circumstance not
specifically and expressly described in the immediately preceding sentence. The Change in Control
Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum
not more than five (5) business days following the effective date of the Employee’s release as
described in Section 8 below or such later date as may be necessary to avoid the excise tax imposed
by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

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          (d) Amount of Change in Control Payment. The amount of the Change in Control Payment shall be
equal to two hundred percent (200%) of the sum of (i) the Employee’s Base Compensation plus (ii)
the Employee’s Base compensation multiplied by his Annual Target Bonus, both as in effect on the
date of the Change in Control.

          (e) Incentive Programs. If, during the term of the Employee’s employment under this
Agreement, a Change in Control occurs, the Employee shall become fully vested in all awards
heretofore or hereafter granted to him under all incentive compensation, deferred compensation,
bonus, stock option, stock appreciation rights, restricted stock, phantom stock or similar plans
maintained by URS that were held by the Employee but not yet vested as of the date of the Change in
Control, except if and to the extent specifically provided to the contrary under the terms of any
such plan or any specific grant or award made to the Employee under any such plan.

          (f) No Mitigation. The Employee shall not be required to mitigate the amount of any payment
or benefit contemplated by this Section 6 (whether by seeking new employment or in any other
manner), nor shall any such payment or benefit be reduced by earnings or benefits that the Employee
may receive from any other source.

	 	7.  	Other Terminations Of Employment.

          (a) Severance Payment and Severance Benefits. In the event that, during the term of the
Employee’s employment under this Agreement, the Company terminates the Employee’s employment for
any reason other than Cause or Disability or the Employee voluntarily resigns his employment for
Good Reason within one (1) month of the occurrence of the event constituting Good Reason, and
Section 6 does not apply, then:

               (i) The Company shall pay an amount (“Severance Payment”) in an amount equal to one hundred
percent (100%) of the Employee’s Base Compensation as in effect on the date of employment
termination. The Severance Payment shall be paid in a lump sum not more than five (5) business
days following the effective date of the Employee’s release as described in Section 8 below or such
later date as may be necessary to avoid the excise tax imposed by Section 409A of the Code.

               (ii) For the period of one (1) year following such termination, the Company shall (i)
reimburse the Employee for dental and health insurance premiums required to be paid by the Employee
for such one (1) year period to obtain COBRA continuation coverage within the meaning of Section
4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause
group long-term disability insurance coverage and basic term life insurance coverage then provided
to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such
coverage cannot be continued or can only be continued at a cost to the Company greater than the
Company would have incurred absent such termination, then, at the Company’s election, the Company
may either provide such long-term disability or term life insurance as may be available at no
greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent
such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums
the Company would

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have incurred to continue such coverage absent such termination) (payments and benefits under
this Subdivision (ii) of Section 7(a), collectively “Severance Benefits”).

          (b) Termination of Severance Benefits. All Severance Benefits shall be discontinued
completely as of the date when the Employee returns to employment or self-employment, whether full-
or part-time, with an entity that offers any group health insurance coverage to its employees or
independent contractors, regardless of whether such coverage is equivalent to the insurance
coverage contemplated by the Severance Benefits.

          (c) No Mitigation. The Employee shall not be required to mitigate the amount of any payment
or benefit contemplated by this Section 7 (whether by seeking new employment or in any other
manner), nor shall any such payment or benefit be reduced by earnings or benefits that the Employee
may receive from any other source.

	 	8.  	Change In Control Payment, Severance Payment And Severance Benefits Conditioned Upon Execution Of Effective Release Of Claims.

          Notwithstanding any of the foregoing to the contrary, in no event shall the Company be
required to make any payment or provide any benefit pursuant to Section 6 or 7 above unless and
until the Employee executes and delivers to the Company a General Release in the form of Exhibit A
hereto, and such release becomes effective in accordance with its terms; provided, however, that
pending such execution and delivery of such a release by the Employee, the Company will advance for
the account of the Employee premiums required to be paid during the period during which the
effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee
within such period of a group dental, health or disability policy to which Severance Benefits
provided under Subdivision (ii) of Section 7(a) relate, which advance shall be repaid by the
Employee upon expiration of (i) the period during which the Employee is permitted to consider
whether to execute the release (if the Employee does not execute the release) or (ii) the period
during which the effectiveness of the release is pending (if the Employee executes the release then
revokes it within the seven- (7-) day revocation period).

	 	9.  	Certain Additional Payments.

          If any payments, distributions or other benefits by or from the Company to or for the benefit
of the Employee (whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or otherwise, but determined without regard to any additional payment required under
this Section 9) (collectively, the “Payment”) would be subject to the excise tax imposed by Section
4999 of the Code or any interest or penalties are incurred by the Employee with respect to such
excise tax (such excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then the Employee shall be entitled to receive from
the Company an additional payment (a “Gross-Up Payment”) in an amount such that after payment by
the Employee of all taxes (including, without limitation, any Excise Tax, income and employment
taxes and any interest and penalties imposed with respect thereto) and the Excise Tax imposed upon
the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Payment. All calculations required by this Section 9 shall be performed by
the independent auditors retained

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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 final and binding on the Company
and the Employee. All fees and expenses of the Auditors shall be paid by the Company.

	 	10.  	Nondisclosure.

          During the term of this Agreement and thereafter, the Employee shall not, without the prior
written consent of the Chief Executive Officer or his designee or the Board, disclose or use for
any purpose (except in the course of his employment under this Agreement and in furtherance of the
business of URS) confidential information or proprietary data of URS, except as required by
applicable law or legal process, in which case promptly and before disclosure the Employee shall
give notice to the Company of any such requirement or process; provided, however, that confidential
information shall not include any information available from another source on a nonconfidential
basis, known generally to the public, or ascertainable from public or published information (other
than as a result of unauthorized disclosure by the Employee) or any information of a type not
otherwise considered confidential by persons engaged in the same business as, or a business similar
to, that conducted by URS. The Employee agrees to deliver to the Company at the termination of his
employment, or at any other time the Company may request, all memoranda, notes, plans, records,
reports and other documents or electronic information (and copies thereof) relating to the business
of URS, which he may then possess or have under his control. Nothing in this Section 10 or
elsewhere in this Agreement shall be deemed to waive, or to permit or authorize the Employee to
take any action which waives or could have the consequence of waiving, the attorney-client
privilege, the work product doctrine or any other privilege or doctrine with respect to any
information in the possession of the Employee or any communication between the Employee and URS or
any of its directors, officers, employees, agents or other representatives.

	 	11.  	Miscellaneous Provisions.

          (a) Successors. Subject to Section 11(j) below and provided that the Employee may not
delegate his duties hereunder without the consent of the Board, this Agreement and all rights
hereunder shall inure to the benefit of, and be enforceable by, the parties’ successors, assigns,
personal or legal representatives, executors, administrators, heirs, distributees, devisees and
legatees.

          (b) 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, when mailed by U.S.
registered mail (return receipt requested and postage prepaid), or when telecopied. 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 for income tax withholding purposes or by notice given
pursuant to this Section 11(b). In the case of the Company, mailed notices shall be addressed to
its corporate headquarters as reflected in its most recent Annual Report on Form 10-K or Quarterly
Report on Form 10-Q filed with the SEC, directed to the attention of its Secretary. Telecopied
notices shall be sent to such telephone number as the Company and the Employee may specify for this
purpose.

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          (c) Modifications; 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 or of the same
condition or provision at another time.

          (d) Whole Agreement. No agreements, representations or understandings (whether oral or
written and whether express or implied) which are not expressly set forth in this Agreement have
been made or entered into by either party with respect to the subject matter hereof. Effective as
of the date hereof, this Agreement amends, restates and supersedes all prior employment agreements
and severance agreements between the parties, any other URS Entity, and their respective
predecessors.

          (e) Withholding. All payments made under this Agreement shall be subject to reduction to
reflect taxes and other payroll deductions required to be withheld by law. The Employee hereby
declares under penalty of perjury that the Social Security Number he has provided to the Company is
true and accurate. To the extent permitted by applicable law, the Company also shall be entitled
to withhold from or offset against any payments under this Agreement any amounts owed by the
Employee (whether or not liquidated) to the Company or any other URS Entity.

          (f) Certain Reductions and Offsets. Notwithstanding any other provision of this Agreement to
the contrary, any payments or benefits under this Agreement shall be reduced by any severance
payments and benefits payable by URS to the Employee under any policy, plan, program or
arrangement, including, without limitation, any contract between the Employee and URS.

          (g) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal laws of the State of California, without regard to
where the Employee has his residence or principal office or where he performs his duties hereunder.

          (h) 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.

          (i) Arbitration. Except as otherwise provided in Section 9, any controversy or claim arising
out of or relating to this Agreement, or the breach thereof, or the Employee’s employment with the
Company or the terms and conditions or termination thereof, or any action or omission of any kind
whatsoever in the course of or connected in any way with any relations between URS and the
Employee, including without limitation all claims encompassed within the scope of the form of
General Release attached to this Agreement as Exhibit A, shall be finally settled by binding
arbitration before a single arbitrator in accordance with the National rules for the Resolution of
Employment Disputes of the American Arbitration Association (the “Association”), and judgment on
the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The
arbitration shall be administered by the San Francisco,

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California regional office of the Association and shall be conducted at the San Francisco,
California offices of the Association or at such other location in San Francisco, California as the
Association may designate. All fees and expenses of the arbitrator and the Association shall be
paid by the Company. The Company and the Employee acknowledge and agree that any and all rights
they may have to resolve their claims by a jury trial hereby are expressly waived.

          (j) No Assignment. The rights of any person to payments 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 Section 11(j) 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/ H. Thomas Hicks
	 	 	 
	 	 	H. Thomas Hicks
	 
	 	 	 	 
	 	 	URS Corporation,
	 	 	a Delaware corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kent P. Ainsworth
	

	 	 	 	 
	

	 	 	 	Kent P. Ainsworth
	

	 	 	 	Executive Vice President, Chief Financial
Officer and Secretary

 10.

 

Exhibit A

GENERAL RELEASE

(Individual Termination)

     This General Release (“Release”) is executed and delivered by H. Thomas Hicks
(“Employee”) to and for the benefit of URS Corporation, a Delaware corporation, and any
parent, subsidiary or affiliated corporation or related entity of URS Corporation (collectively,
“Company”).

     In consideration of certain payments and benefits which Employee will receive following
termination of employment pursuant to the terms of the Employment Agreement entered into as May 31,
2005, between Employee and Company (the “Agreement”), the sufficiency of which Employee hereby
acknowledges, Employee hereby agrees not to sue and fully, finally, completely and generally
releases, absolves and discharges Company, its predecessors, successors, subsidiaries, parents,
related companies and business concerns, affiliates, partners, trustees, directors, officers,
agents, attorneys, servants, representatives and employees, past and present, and each of them
(hereinafter collectively referred to as “Releasees”) from any and all claims, demands, liens,
agreements, contracts, covenants, actions, suits, causes of action, grievances, arbitrations,
unfair labor practice charges, wages, vacation payments, severance payments, obligations,
commissions, overtime payments, debts, profit sharing or bonus claims, expenses, damages,
judgments, orders and/or liabilities of whatever kind or nature in law, equity or otherwise,
whether known or unknown to Employee which Employee now owns or holds or has at any time owned or
held as against Releasees, or any of them through the date Employee executes this Release
(“Claims”), including specifically but not exclusively and without limiting the generality of the
foregoing, any and all Claims arising out of or in any way connected to Employee’s employment with
or separation of employment from Company, including any Claims based on contract, tort, wrongful
discharge, fraud, breach of fiduciary duty, attorneys’ fees and costs, discrimination in
employment, any and all acts or omissions in contravention of any federal, state or local laws or
statutes (including, but not limited to, federal or state securities laws, any deceptive trade
practices act or any similar act in any other state and the Racketeer Influenced and Corrupt
Organizations Act), and any right to recovery based on local, state or federal age, sex, pregnancy,
race, color, national origin, marital status, religion, veteran status, disability, sexual
orientation, medical condition, union affiliation or other anti-discrimination laws, including,
without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment
Act, the Americans with Disabilities Act, the National Labor Relations Act, the California Fair
Employment and Housing Act, and any similar act in effect in any jurisdiction applicable to
Employee or Company, all as amended, whether such claim be based upon an action filed by Employee
or by a governmental agency.

     During the time Employee is entitled to any Change in Control Payment, Severance Payment or
Severance Benefits, as defined and provided in Sections 6 and 7 of the Agreement, Employee agrees
(i) to assist, as reasonably requested by Company, in the transition of Employee’s responsibilities
and (ii) not to solicit any employee of Company to terminate or cease employment with Company.

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     Employee agrees to cooperate with the Company in responding to the reasonable requests of the
Company in connection with any and all existing or future litigation, arbitrations, mediations or
investigations brought by or against the Company, or its current or former affiliates, agents,
officers, directors or employees, whether administrative, civil or criminal in nature, in which the
Company reasonably deems Employee’s cooperation necessary or desirable. In such matters, Employee
agrees to provide the Company with reasonable advice, assistance and information, including
offering and explaining evidence, providing sworn statements, and participating in discovery and
trial preparation and testimony. Employee also agrees to promptly send the Company copies of all
correspondence (for example, but not limited to, subpoenas) received by Employee in connection with
any such proceedings, unless Employee is expressly prohibited by law from so doing. The failure by
Employee to cooperate fully with the Company in accordance with this provision will be a material
breach of the terms of this Agreement, which will excuse all commitments of the Company to provide
severance or other benefits to Employee under any agreement. The Company agrees to reimburse
Employee for all reasonable out-of-pocket expenses she incurs in connection with the performance of
his obligations under this section; provided, however, that such expenses shall not include
attorneys fees, foregone wages or payment for services provided under this section.

     Without superseding any other agreements, including the Agreement, and obligations Employee
has with respect thereto, (i) Employee agrees not to divulge or use, at any time, any information
that might be of a confidential or proprietary nature relative to Company, and (ii) Employee agrees
to keep confidential all information contained in this Release (except to the extent (A) Company
consents in writing to disclosure, (B) Employee is required by process of law to make such
disclosure and Employee promptly notifies Company of receipt by Employee of such process, or (C)
such information previously shall have become publicly available other than by breach hereof on the
part of Employee).

     Employee acknowledges and agrees that neither anything in this Release nor the offer,
execution, delivery, or acceptance thereof shall be construed as an admission by Company of any
kind, and this Release shall not be admissible as evidence in any proceeding except to enforce this
Release.

     It is the intention of Employee in executing this instrument that it shall be effective as a
bar to each and every claim, demand, grievance and cause of action hereinabove specified. In
furtherance of this intention, Employee hereby expressly consents that this Release shall be given
full force and effect according to each and all of its express terms and provisions, including
those relating to unknown and unsuspected claims, demands, grievances and causes of action, if any,
as well as those relating to any other claims, demands, grievances and causes of action hereinabove
specified, and elects to assume all risks for claims, demands, grievances and causes of action that
now exist in Employee’s favor, known or unknown, that are released under this Release. Employee
acknowledges Employee may hereafter discover facts different from, or in addition to, those
Employee now knows or believes to be true with respect to the claims, demands, liens, agreements,
contracts, covenants, actions, suits, causes of action, wages, obligations, debts, expenses,
damages, judgments, orders and liabilities herein released, and agrees the release herein shall be
and remain in effect in all respects as a complete and general release as to all matters released
herein, notwithstanding any such different or additional facts.

 2.

 

     If any provision of this Release or application thereof is held invalid, the invalidity shall
not affect other provisions or applications of the Release which can be given effect without the
invalid provision or application. To this end, the provisions of this Release are severable.

     Employee represents and warrants that Employee has not heretofore assigned or transferred or
purported to assign or transfer to any person, firm or corporation any claim, demand, right,
damage, liability, debt, account, action, cause of action, or any other matter herein released.

     Employee represents that he is not aware of any claims other than the claims that are released
by this instrument. Employee acknowledges that he is familiar with the provisions of California
Civil Code Section 1542, which states as follows:

A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing
the release, which if known by him must have materially affected his
settlement with the debtor.

Employee, being aware of such Code section, agrees to waive any rights he may have thereunder, as
well as under any other statute or common law principle of similar effect.

NOTICE TO EMPLOYEE

     The law requires that Employee be advised and Company hereby advises Employee in writing to
consult with an attorney and discuss this Release before executing it. Employee acknowledges
Company has provided to Employee at least twenty-one (21) calendar days (forty-five (45) calendar
days, in the case of a group termination) within which to review and consider this Release before
signing it.

     Should Employee decide not to use the full twenty-one (21) or forty-five (45) days, as
applicable, then Employee knowingly and voluntarily waives any claims that Employee was not in fact
given that period of time or did not use the entire twenty-one (21) or forty-five (45) days to
consult an attorney and/or consider this Release. Employee acknowledges that Employee may revoke
this Release for up to seven (7) calendar days following Employee’s execution of this Release and
that it shall not become effective or enforceable until such revocation period has expired.
Employee further acknowledges and agrees that such revocation must be in writing and delivered to
Company in accordance with Section 11(b) of the Agreement and must be received by Company as so
addressed not later than midnight on the seventh (7th) day following Employee’s execution of this
Release. If Employee so revokes this Release, the Release shall not be effective or enforceable
and Employee will not receive the monies and benefits described above. If Employee does not revoke
this Release in the time frame specified above, the Release shall become effective at 12:00:01 A.M.
on the eighth (8th) day after it is signed by Employee.

     In the case of a group termination, the law requires that Employee be provided a detailed list
of the job titles and ages of all employees who were terminated in the group termination and the
ages of all employees of the Company in the same job classification or organizational unit who were
not terminated. Employee acknowledges that Employee has been provided with this information.

 3.

 

PLEASE READ CAREFULLY. THIS AGREEMENT CONTAINS A

GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

     I have read and understood the foregoing General Release, have been advised to and have had
the opportunity to discuss it with anyone I desire, including an attorney of my own choice, and I
accept and agree to its terms, acknowledge receipt of a copy of the same and the sufficiency of the
monies and benefits described above, and hereby execute this Release voluntarily and with full
understanding of its consequences.

	 	 	 	 	 
	Dated:

	 	 
	 	 
	

	 	 
	 	 
	

	 	 	 	H. Thomas Hicks

 4.Exhibit 10.1

 

Exhibit 10.1

AGREEMENT

     This Agreement is made as of                                          by and between HARRIS INTERACTIVE INC., a Delaware
corporation with offices at 135 Corporate Woods, Rochester, New York 14623 (“Harris”) and
                                         (“Employee”).

     WHEREAS, Employee is employed by Harris in a senior managerial role, and Harris desires to
provide additional employment incentives to Employee,

     NOW THEREFORE, in consideration of the continued employment of Employee by Harris, the mutual
promises herein contained, and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

     1. Definitions.

     (a) "Bonus” shall mean non-salary, discretionary cash compensation, whether paid under a
performance based bonus plan or otherwise.

     (b) "Cause” shall mean (i) refusal or substantial failure to perform (other than due to
physical or mental disability), or misconduct in the performance of, the ordinary and customary
duties of Employee as reasonably required by Harris or a New Employer, provided that such refusal,
failure, or misconduct has continued after Harris or the New Employer has given Employee five
business days written notice of same, (ii) overt and willful disobedience of orders or directives
issued by the Board of Directors of Harris or the New Employer that are within the reasonable scope
of Employee’s duties to Harris or the New Employer, (iii) conviction of or commission of any
felony, whether or not related to performance of duties under this Agreement, (iv) commission of
any other illegal act if committed in connection with the performance of duties for Harris or the
New Employer if such act could reasonably tend to bring Harris or Employee into disrepute in the
community, or (v) material violation of Harris’s or the New Employer’s written rules, regulations
or policies of general application provided that such violation has continued after Harris or the
New Employer has given Employee five business days written notice of same.

     (c) A “Change of Control” shall be deemed to have occurred if:

     (i) the following individuals (Recommended Directors”) cease for any reason to
constitute a majority of the number of directors then serving as directors of Harris:
individuals who, on the date hereof, constitute the Board of Directors of Harris and any new
director (other than a director whose initial assumption of office is in connection with the
settlement of an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of Harris) whose appointment or
election by the Board of Directors of Harris or nomination for election by Harris’s
stockholders was approved or recommended by a vote of at least a majority of the directors
then still in office who either were directors on the date hereof or whose

 

 

appointment, election or nomination for election was previously so approved or recommended;

     (ii) the stockholders of Harris approve a complete liquidation or dissolution of
Harris, except in connection with a recapitalization or other transaction which does not
otherwise constitute a Change of Control for purposes of subsection (iii) or (iv) below;

     (iii) any consolidation or merger of Harris occurs; or

     (iv) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of assets accounting for fifty percent (50%) or more of total assets
or fifty percent (50%) or more of the total revenues of Harris occurs;

other than, in case of either subsection (iii) or (iv), a transaction in which immediately
following such transaction, (x) more than fifty percent (50%) of the combined voting power of the
then outstanding voting securities of the surviving entity in the case of a merger or consolidation
or acquiring entity in the case of a transfer (in each case, the “Surviving Entity”) entitled to
vote generally in the election of directors (or other determination of governing body) is then
beneficially owned (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934) by
all or substantially all of the individuals and entities who were the owners of Harris common stock
immediately prior to such transaction in substantially the same proportion, as among themselves, as
their ownership of such common stock immediately prior to such transaction, or (y) a majority of
the directors (or other governing body) of the Surviving Entity consists of Recommended Directors.

     (d) “Confidential Information” shall mean any and all information and material proprietary to
Harris or not generally known or available to the public in which Harris has any interest or rights
now or in the future, including without limitation Harris’s business strategies, client lists,
supplier lists, partners, agreement terms, pricing, databases, products, designs, processes,
systems, methods; trade secrets, know-how, data, technical plans, drawings, information,
inventions, formulas, technology and anything else that might be construed as proprietary or
confidential in nature. Confidential Information shall not include information and material (i)
publicly available through no action by Employee, (ii) released by Harris with a written waiver of
confidentiality, (iii) lawfully obtained from third parties, or (iv) previously known or developed
by third parties independently of Harris and Employee provided that such knowledge or development
can be independently substantiated.

     (e) "Good Reason” shall mean:

     (i) material breach of Harris’s or the New Employer’s obligations to Employee, provided
that Employee shall have given reasonably specific written notice thereof to Harris and/or
the New Employer, and Harris and/or the New Employer shall have failed to remedy the
circumstances within ten business days thereafter;

     (ii) any decrease in Employee’s base salary as in effect immediately prior to any
Change of Control, or any material decrease in Employee’s benefits if such

2

 

modification is not of general applicability to other senior managerial Employees of Harris
or the New Employer;

     (iii) the relocation of Employee’s principal office to a location more than thirty (30)
miles from the location of his[her] office immediately prior to any Change of Control;
provided, however, that Employee’s principal office shall not be deemed to be relocated by
virtue of Employee being required to spend up to ten working days per month on average in
Harris’s or the New Employer’s, and their affiliates’, other offices; or

     (iv) the failure of any New Employer or successor in interest of Harris to be bound by
the terms of this Agreement.

     (f) "New Employer” shall mean the new employer resulting from a Change of Control.

     2. Compensation After Change of Control. If at any time within the first year after a
Change of Control Employee’s employment is terminated by Harris or a New Employer other than for
Cause, or Employee terminates his[her] employment for Good Reason, Employee shall be entitled to
receive the benefits provided in this Section 2. No benefits shall be payable under this Section 2
under other circumstances.

     For the one year period following the date of termination (the “Coverage Period”), Harris or
the New Employer shall pay to the Employee an aggregate amount equal to (i) Employee’s base annual
salary at the rate in effect immediately before the effective date of the Change of Control, and
(ii) the average annual value of the Employee’s annual Bonus (with such average based on Bonuses
earned during the immediately preceding two full fiscal years). Payments shall be made in
bi-weekly installments, less standard deductions, in the same manner and frequency as compensation
payments were made prior to the Coverage Period. If, however, termination is by Employee for Good
Reason under subsection (iv) of the definition thereof, the payment to Employee shall be made in a
single aggregate lump sum, rather than in installments.

     In addition to such compensation and during the same period Harris or the New Employer shall
provide, or cause to be provided, health insurance benefits equivalent to those provided by Harris
immediately prior to the Change of Control, or to the extent that such benefits are not available
under Harris’s or the New Employer’s group plans, reimbursement to the Employee of an amount
equivalent to the cost paid by Harris for such benefits immediately prior to the Change of Control.
Harris or the New Employer also shall provide reimbursement for reasonable (in the discretion of
Harris or, if applicable, the New Employer) and actual expenses incurred by Employee for six months
of out-placement services.

     Such payments shall be in addition to, and not in lieu of, payments otherwise due under Harris
and/or the New Employer’s employment policies.

     3. Confidentiality. During the course of his[her] employment, Employee may have
access to, develop, or otherwise be exposed to or aware of Confidential Information. Employee
acknowledges that the Confidential Information must be kept strictly confidential. During and

3

 

after termination of Employee’s employment by Harris Employee agrees: (a) to take every reasonable
precaution to safeguard and treat the Confidential Information as confidential, (b) not to disclose
the Confidential Information to any third party except as part and in furtherance of the business
of Harris, and (c) not to disclose or use the Confidential Information in any manner that would not
be in furtherance of the interests of Harris.

     4. Non-Compete; Non-Solicitation. In consideration of, and as a condition to the
benefits afforded Employee under this Agreement and in consideration of the other rights and
privileges of Employee, Employee agrees that:

	(a)  	during the term of his[her] employment, Employee shall not, directly or indirectly, including
among others as a director, officer, employee, agent, partner or equity owner (except as owner
of less than 1% of the shares of the publicly traded stock of a corporation) of any entity,
compete in any manner with Harris, or if applicable, the New Employer;
	 
	(b)  	if at any time within the first year after a Change of Control either (i) Employee
voluntarily terminates his[her] employment except for Good Reason or (ii) Employee is
terminated for Cause, then for a period of one year following the date of such employment
termination Employee shall not, directly or indirectly, including among others as a director,
officer, employee, agent, partner or equity owner (except as owner of less than 1% of the shares of the publicly traded stock of a corporation) of any entity, solicit or otherwise deal
in any way with any of the clients or customers of Harris, or if applicable New Employer, as
of the time of his[her] voluntary termination (including also and without limitation any
client to whom Harris, or after a Change of Control New Employer, has sold services or
products in the two years prior to termination and any prospective client or customer for whom
a bid or proposal has been prepared within the previous six months) with respect to any
services or products competitive with those of Harris;
	 
	(c)  	if at any time within the first year after a Change of Control either (i) Employee’s
employment is terminated by Harris or a New Employer other than for Cause, or (ii) Employee
terminates his[her] employment for Good Reason, then during the Coverage Period Employee shall
not, directly or indirectly, including among others as a director, officer, employee, agent,
partner or equity owner (except as owner of less than 1% of the shares of the publicly traded
stock of a corporation) of any entity, solicit or otherwise deal in any way with any of the
clients or customers of Harris, or if applicable New Employer, as of the time of his[her]
voluntary termination (including also and without limitation any client to whom Harris, or
after a Change of Control New Employer, has sold services or products in the two years prior
to termination and any prospective client or customer for whom a bid or proposal has been
prepared within the previous six months) with respect to any services or products competitive
with those of Harris;
	 
	(d)  	if at any time within the first year after a Change of Control either (i) Employee
voluntarily terminates his[her] employment except for Good Reason or (ii) Employee is
terminated for Cause, then for a period of two years following the date of such

4

 

employment termination Employee shall not solicit for hire or hire, or in any manner,
whether directly or indirectly, be involved in, participate in, or benefit from the
solicitation for hire or hiring of, any employee of Harris or any person who was employed by
Harris within the six month period prior to such solicitation or hire (including employees
and previous employees of New Employer who were employees of Harris immediately prior to the
Change of Control); and

	(e)  	if at any time within the first year after a Change of Control either (i) Employee’s
employment is terminated by Harris or a New Employer other than for Cause, or (ii) Employee
terminates his[her] employment for Good Reason, then during the Coverage Period and one-year
period following the Coverage Period, Employee shall not solicit for hire or hire, or in any
manner, whether directly or indirectly, be involved in, participate in, or benefit from the
solicitation for hire or hiring of, any employee of Harris or any person who was employed by
Harris within the six month period prior to such solicitation or hire (including employees and
previous employees of New Employer who were employees of Harris immediately prior to the
Change of Control).

Employee acknowledges that Harris’s legal remedies for a breach of this provision shall be
inadequate and that in addition to any other rights, including among others the right to terminate
further payments hereunder, Harris shall be entitled to obtain injunctive relief to enforce this
provision.

     5. Successors and Assigns. This Agreement shall inure to the benefit of, and shall be
binding upon, the respective heirs, legal representatives, successors, and assigns of the parties
hereto.

     6. Governing Law. This Agreement shall be construed under and governed by the laws of
the State of New York, without reference to principles of conflicts of laws. The parties hereto
consent to exclusive venue in the courts of the State of New York sitting in Monroe County, or in
the United States District Court, Western District of New York.

     7. Entire Agreement/Waivers. This Agreement constitutes the entire agreement of the
parties with respect to the subject matter hereof and shall not be modified or amended except in
writing signed by both of the parties. No waiver of any breach of this Agreement shall be a waiver
of any preceding or succeeding breach, and no waiver of any right under this Agreement shall be
construed as a waiver of any other right.

     8. Severability. If one or more of the provisions in this Agreement are deemed
unenforceable by law, then the remaining provisions will continue in full force and effect.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of
the date first above written.

[Signature Pages Follow]

5

 

HARRIS INTERACTIVE INC.

By:                                         

Title:                                         

6

 

                                        

     [Employee Name]

7

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