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                                                                    EXHIBIT 4.10

                       VERITAS DGC INC. 2001 KEY EMPLOYEE
                              RESTRICTED STOCK PLAN

                                    ARTICLE I

                                PURPOSE AND TERM

The purpose of the Plan is to foster and promote the long-term financial success
of Veritas DGC Inc. (the "Company") and its Subsidiaries and to increase
stockholder value by: (a) encouraging the commitment of selected key Employees,
(b) motivating superior performance of such Employees by means of long-term
performance related incentives, (c) encouraging and providing such Employees
with a program for obtaining ownership interests in the Company which link and
align their personal interests to those of the Company's stockholders, (d)
attracting and retaining key Employees by providing competitive incentive
compensation opportunities, and (e) enabling key Employees to share in the
long-term growth and success of the Company.

The Plan shall become effective as of February 1, 2001 (the "Effective Date").
The Plan shall commence on the Effective Date, and shall remain in effect,
subject to the right of the Board to amend or terminate the Plan at any time
pursuant to Section 8.5, until all Shares subject to the Plan have been
purchased or acquired according to its provisions. No Incentive Awards shall be
granted under the Plan after the expiration of ten (10) years from the Effective
Date.

                                   ARTICLE II

                                   DEFINITIONS

The words and phrases defined in this Article shall have the meaning set out in
Schedule A attached hereto, unless the context in which any such word or phrase
appears reasonably requires a broader, narrower or different meaning.

                                   ARTICLE III

                           ADMINISTRATION OF THE PLAN

3.1      AUTHORITY OF THE COMMITTEE. Except as may be limited by law and subject
         to the provisions herein, the Committee shall have full power to (i)
         select Grantees who shall participate in the Plan; (ii) determine the
         sizes, duration and types of Incentive Awards; (iii) determine the
         terms and conditions of Incentive Awards and Restricted Stock
         Agreements; (iv) determine whether any Shares subject to Incentive
         Awards will be subject to any restrictions on transfer; (v) construe
         and interpret the Plan and any Restricted Stock Agreement or other
         agreement entered into under the Plan; and (vi) establish, amend, or
         waive rules for the Plan's administration. Further, the Committee shall

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         make all other determinations which may be necessary or advisable for
         the administration of the Plan.

3.2      MEETINGS. The Committee shall designate a chairman from among its
         members who shall preside at all of its meetings, and shall designate a
         secretary, without regard to whether that person is a member of the
         Committee, who shall keep the minutes of the proceedings and all
         records, documents, and data pertaining to its administration of the
         Plan. Meetings shall be held at such times and places as shall be
         determined by the Committee and the Committee may hold telephonic
         meetings. The Committee may take any action otherwise proper under the
         Plan by the affirmative vote, taken with or without a meeting, of a
         majority of its members. The Committee may authorize any one or more of
         their members or any officer of the Company to execute and deliver
         documents on behalf of the Committee.

3.3      DECISIONS BINDING. All determinations and decisions made by the
         Committee shall be made in its discretion pursuant to the provisions of
         the Plan, and shall be final, conclusive and binding on all persons
         including the Company, its shareholders, Employees, Grantees, and their
         estates and beneficiaries. The Committee's decisions and determinations
         with respect to any Incentive Award need not be uniform and may be made
         selectively among Incentive Awards and Grantees, whether or not such
         Incentive Awards are similar or such Grantees are similarly situated.

3.4      MODIFICATION OF OUTSTANDING INCENTIVE AWARDS. Subject to any required
         stockholder approval requirements, if applicable, the Committee may, in
         its discretion, provide for the extension of the exercisability of an
         Incentive Award, accelerate the vesting or exercisability of an
         Incentive Award, eliminate or make less restrictive any restrictions
         contained in an Incentive Award, waive any restriction or other
         provisions of an Incentive Award, or otherwise amend or modify an
         Incentive Award in any manner that is either (i) not adverse to the
         Grantee to whom such Incentive Award was granted, or (ii) consented to
         by such Grantee.

3.5      DELEGATION OF AUTHORITY. The Committee may delegate to any Authorized
         Officer certain of its duties under the Plan pursuant to such
         conditions or limitations as the Committee may establish from time to
         time.

3.6      EXPENSES OF COMMITTEE. The Committee may employ legal counsel,
         including, without limitation, independent legal counsel and counsel
         regularly employed by the Company, and other agents as the Committee
         may deem appropriate for the administration of the Plan. The Committee
         may rely upon any opinion or computation received from any such counsel
         or agent. All expenses incurred by the Committee in interpreting and
         administering the Plan, including, without limitation, meeting expenses
         and professional fees, shall be paid by the Company.

3.7      SURRENDER OF PREVIOUS INCENTIVE AWARDS. The Committee may, in its
         absolute discretion, grant Incentive Awards to Grantees on the
         condition that such Grantees surrender to the Committee for
         cancellation such other Incentive Awards as the Committee directs.
         Incentive Awards granted on the condition precedent of surrender of

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         outstanding Incentive Awards shall not count against the limits set
         forth in Section 4.1 until such time as such previous Incentive Awards
         are surrendered and canceled.

3.8      INDEMNIFICATION. Each person who is or was a member of the Committee
         shall be indemnified by the Company against and from any damage, loss,
         liability, cost and expense that may be imposed upon or reasonably
         incurred by him in connection with or resulting from any claim, action,
         suit, or proceeding to which he may be a party or in which he may be
         involved by reason of any action taken or failure to act under the
         Plan, except for any such act or omission constituting willful
         misconduct or gross negligence. Such person shall be indemnified by the
         Company for all amounts paid by him in settlement thereof, with the
         Company's approval, or paid by him in satisfaction of any judgment in
         any such action, suit, or proceeding against him, provided he shall
         give the Company an opportunity, at its own expense, to handle and
         defend the same before he undertakes to handle and defend it on his own
         behalf. The foregoing right of indemnification shall not be exclusive
         of any other rights of indemnification to which such persons may be
         entitled under the Company's Articles of Incorporation or Bylaws, as a
         matter of law, or otherwise, or any power that the Company may have to
         indemnify them or hold them harmless.

                                   ARTICLE IV

                                PURPOSE AND TERM

4.1      SHARES OF COMMON STOCK AVAILABLE FOR INCENTIVE AWARDS.

         Subject to adjustment under Section 7.5, there shall be available for
         Incentive Awards under the Plan an aggregate of 200,000 Shares of
         Common Stock. The number of Shares of Common Stock subject to Incentive
         Awards that are forfeited or terminated, or are settled in a manner
         such that all or some of the Shares covered by the Incentive Award are
         not issued to a Grantee, shall again immediately become available for
         Incentive Awards hereunder. The Common Stock available for issuance or
         transfer under the Plan shall be made available from Shares now or
         hereafter (a) held in the treasury of the Company, (b) authorized but
         unissued Shares or (c) Shares to be purchased or acquired by the
         Company. No fractional Shares shall be issued under the Plan.

                                    ARTICLE V

                                   ELIGIBILITY

The individuals who shall be eligible to receive Incentive Awards shall be those
Employees who are not officers (as defined by the Securities and Exchange
Commission in Rule 16a-1(f) under the Exchange Act, or any successor rule) or
directors of the Company, who have substantial responsibility for the management
and growth of the Company or any of its Subsidiaries as the Committee shall
determine from time to time.

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                                   ARTICLE VI

                             RESTRICTED STOCK AWARDS

6.1      GRANT. In consideration for services by the Grantee, Shares of
         Restricted Stock may be awarded under the Plan by the Committee with
         such restrictions during the Restriction Period as the Committee
         designates in its discretion, any of which restrictions may differ with
         respect to a particular Grantee. Restricted Stock shall be awarded for
         no additional consideration or such additional consideration as the
         Committee may determine, which consideration may be less than, equal to
         or more than the Fair Market Value of the Shares of Restricted Stock on
         the date of grant. The terms and conditions of each grant of Restricted
         Stock shall be evidenced by a Restricted Stock Agreement.

6.2      IMMEDIATE TRANSFER WITHOUT IMMEDIATE DELIVERY OF RESTRICTED STOCK.
         Unless otherwise specified in the Grantee's Restricted Stock Agreement,
         each Incentive Award shall constitute an immediate transfer of the
         record and beneficial ownership of the Shares of Restricted Stock to
         the Grantee in consideration of the performance of services as an
         Employee, entitling such Grantee to all voting and other ownership
         rights in such Shares subject to any restrictions thereon.

         As specified in the Restricted Stock Agreement, an Incentive Award may
         limit the Grantee's dividend rights during the Restriction Period in
         which the Shares of Restricted Stock are subject to a "substantial risk
         of forfeiture" (within the meaning given to such term under Code
         Section 83) and restrictions on transfer. In the Restricted Stock
         Agreement, the Committee may apply any restrictions to the dividends
         that the Committee deems appropriate.

         As determined by the Committee, Shares awarded pursuant to a grant of
         Restricted Stock may be issued in the name of the Grantee and held,
         together with a stock power endorsed by the Grantee in blank, by the
         Committee or the Secretary of the Company (or their delegates) as a
         depository for safekeeping until such time as the forfeiture
         restrictions and restrictions on transfer have lapsed. All such terms
         and conditions shall be set forth in the particular Grantee's
         Restricted Stock Agreement. The Company or Committee shall issue to the
         Grantee a receipt evidencing the certificates held by it which are
         registered in the name of the Grantee.

6.3      RESTRICTIONS

         (a)      Forfeiture of Restricted Stock.  Restricted Stock awarded to a
                  Grantee may be subject to the following restrictions until the
                  expiration of the Restriction Period:

                  (i)      a restriction that constitutes a "substantial risk of
                           forfeiture" (as defined in Code Section 83), or a
                           restriction on transferability under Code Section 83;
                           and

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                  (ii)     any other restrictions that the Committee determines
                           are appropriate, including, without limitation,
                           rights of repurchase or first refusal in the Company
                           or provisions subjecting the Restricted Stock to a
                           continuing substantial risk of forfeiture in the
                           hands of any transferee. Any such restrictions shall
                           be set forth in the particular Grantee's Restricted
                           Stock Agreement.

         (b)      Issuance of Certificates. Coincident with or promptly after
                  the grant date with respect to Shares of Restricted Stock, the
                  Company shall cause to be issued a stock certificate,
                  registered in the name of the Grantee to whom such Restricted
                  Stock was granted, evidencing such Shares; provided, however,
                  that the Company shall not cause to be issued such a stock
                  certificate unless it has received a stock power duly endorsed
                  in blank by the Grantee with respect to such Shares. Each such
                  stock certificate shall bear the following legend or any other
                  legend approved by the Company:

         THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK
         REPRESENTED HEREBY ARE SUBJECT TO THE RESTRICTIONS, TERMS AND
         CONDITIONS (INCLUDING FORFEITURE AND RESTRICTIONS AGAINST TRANSFER)
         CONTAINED IN THE VERITAS DGC INC. RESTRICTED STOCK PLAN AND A
         RESTRICTED STOCK AGREEMENT DATED _______________, ____ BETWEEN THE
         REGISTERED OWNER OF SUCH SHARES AND VERITAS DGC INC. RESTRICTIONS ON
         THE RIGHT TO OWN OR TRANSFER THE SHARES OF STOCK REPRESENTED BY THIS
         CERTIFICATE HAVE BEEN IMPOSED PURSUANT TO SAID RESTRICTED STOCK
         AGREEMENT. A COPY OF THE RESTRICTED STOCK AGREEMENT IS ON FILE AT THE
         PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED WITHOUT CHARGE TO
         THE HOLDER OF THIS CERTIFICATE UPON RECEIPT BY THE COMPANY AT ITS
         PRINCIPAL PLACE OF BUSINESS OR REGISTERED OFFICE OF A WRITTEN REQUEST
         FROM THE HOLDER REQUESTING SUCH COPY.

         Such legend shall not be removed from the certificate evidencing such
         Shares of Restricted Stock until such Shares vest pursuant to the terms
         of the Restricted Stock Agreement.

         (c)      Removal of Restrictions. The Committee, in its discretion,
                  shall have the authority to remove any or all of the
                  restrictions on the Restricted Stock if it determines that, by
                  reason of a change in applicable law or another change in
                  circumstance arising after the grant date of the Restricted
                  Stock, such action is appropriate.

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6.4      DELIVERY OF SHARES OF COMMON STOCK.

         Subject to withholding taxes under Section 8.2 and to the terms of the
         Restricted Stock Agreement, a stock certificate evidencing the Shares
         of Restricted Stock with respect to which the restrictions in the
         Restricted Stock Agreement have lapsed or otherwise been satisfied
         shall be delivered to the Grantee or other appropriate recipient free
         of restrictions. Such delivery shall be effected for all purposes when
         the Company shall have deposited such certificate in the United States
         mail, addressed to the Grantee or other appropriate recipient.

6.5      SUPPLEMENTAL PAYMENT ON VESTING OF RESTRICTED STOCK.

         The Grantee shall be responsible for the payment of any federal, state
         or other income taxes due in connection with the Grant, whether such
         taxes are due at the time the Incentive Award is granted or otherwise.

                                   ARTICLE VII

                    PROVISIONS RELATING TO PLAN PARTICIPATION

7.1      PLAN CONDITIONS.

         (a)      Restricted Stock Agreement. Each Grantee to whom an Incentive
                  Award is granted shall be required to enter into a Restricted
                  Stock Agreement with the Company, in such a form as is
                  provided by the Committee. The Restricted Stock Agreement
                  shall contain specific terms as determined by the Committee,
                  in its discretion, with respect to the Grantee's particular
                  Incentive Award. Such terms need not be uniform among all
                  Grantees or any similarly-situated Grantees. The Restricted
                  Stock Agreement may include, without limitation, vesting,
                  forfeiture and other provisions particular to the particular
                  Grantee's Incentive Award, as well as, for example, provisions
                  to the effect that the Grantee (i) shall not disclose any
                  confidential information acquired during Employment with the
                  Company, (ii) shall abide by all the terms and conditions of
                  the Plan and such other terms and conditions as may be imposed
                  by the Committee, (iii) shall not interfere with the
                  employment or other service of any employee, (iv) shall not
                  compete with the Company or become involved in a conflict of
                  interest with the interests of the Company, (v) shall forfeit
                  an Incentive Award if terminated for Cause, (vi) shall not be
                  permitted to make an election under Section 83(b) of the Code
                  when applicable, and (vii) shall be subject to any other
                  agreement between the Grantee and the Company regarding Shares
                  that may be acquired under an Incentive Award including,
                  without limitation, an agreement restricting the
                  transferability of Shares by Grantee. A Restricted Stock
                  Agreement shall include such terms and conditions as are
                  determined by the Committee, in its discretion, to be
                  appropriate with respect to any individual Grantee. The
                  Restricted Stock Agreement shall be signed by the Grantee to
                  whom the Incentive Award is made and by an Authorized Officer.

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         (b)      No Right to Employment. Nothing in the Plan or any instrument
                  executed pursuant to the Plan shall create any employment
                  rights (including without limitation, rights to continued
                  employment) in any Grantee or affect the right of the Company
                  or a Subsidiary to terminate the employment of any Grantee at
                  any time without regard to the existence of the Plan.

         (c)      Securities Requirements.  The Company shall be under no
                  obligation to effect the registration pursuant to the
                  Securities Act of 1933 of any Shares of Common Stock to be
                  issued hereunder or to effect similar compliance under any
                  state laws. Notwithstanding anything herein to the contrary,
                  the Company shall not be obligated to cause to be issued or
                  delivered any certificates evidencing Shares pursuant to the
                  Plan unless and until the Company is advised by its legal
                  counsel that the issuance and delivery of such certificates is
                  in compliance with all applicable laws, regulations of
                  governmental authorities, and the requirements of any
                  securities exchange on which Shares are traded. The Committee
                  may require, as a condition of the issuance and delivery of
                  certificates evidencing Shares pursuant to the terms hereof,
                  that the recipient of such Shares make such covenants,
                  agreements and representations, and that such certificates
                  bear such legends, as the Committee, in its discretion, deems
                  to be necessary or desirable.

7.2      TRANSFERABILITY.

         (a)      Non-Transferable Awards. No Incentive Award and no right under
                  the Plan, contingent or otherwise, will be (i) assignable,
                  saleable, or otherwise transferable by a Grantee except by
                  will or by the laws of descent and distribution, or (ii)
                  subject to any encumbrance, pledge, lien, assignment or charge
                  of any nature.

                  No transfer by will or by the laws of descent and distribution
                  shall be effective to bind the Company unless the Committee
                  has been furnished with a copy of the deceased Grantee's
                  enforceable will or such other evidence as the Committee deems
                  necessary to establish the validity of the transfer. Any
                  attempted transfer in violation of this Section 7.2(a) shall
                  be void and ineffective.

         (b)      Ability to Exercise Rights. Subject to a valid beneficiary
                  designation pursuant to Section 8.4, only the Grantee (or his
                  legal guardian in the event of Grantee's Disability), or in
                  the event of his death, his estate, may assume any rights of
                  the Grantee hereunder.

7.3      RIGHTS AS A STOCKHOLDER.

         (a)      Stockholder Rights. Except as otherwise provided in his
                  Restricted Stock Agreement for the grant of Restricted Stock,
                  the Grantee (or a permitted transferee of such Grantee) shall
                  have voting and other rights as a stockholder with respect to

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                  such Shares of Restricted Stock prior to the lapse of any
                  restrictions thereon.

         (b)      Representation of Ownership. In the case of the exercise of an
                  Incentive Award by a person or estate acquiring the right to
                  exercise such Incentive Award by reason of the death or
                  Disability of a Grantee, the Committee may require evidence as
                  to the ownership of such Incentive Award, or the authority of
                  such person, and may require such consents and releases of
                  taxing authorities as the Committee deems advisable.

7.4      LISTING AND REGISTRATION OF SHARES OF COMMON STOCK.

         The exercise of any Incentive Award granted hereunder shall only be
         effective at such time as legal counsel to the Company shall have
         determined that the issuance and delivery of Shares of Common Stock
         pursuant to such exercise is in compliance with all applicable laws,
         regulations of governmental authorities and the requirements of any
         securities exchange on which Shares are traded. The Committee may, in
         its discretion, defer the effectiveness of any exercise of an Incentive
         Award in order to allow the issuance of Shares to be made pursuant to
         registration or an exemption from registration or other methods for
         compliance available under federal or state securities laws. The
         Committee shall inform the Grantee in writing of its decision to defer
         the effectiveness of the exercise of an Incentive Award. During the
         period that the effectiveness of an Incentive Award has been deferred,
         the Grantee may, by written notice to the Committee, withdraw such
         exercise and obtain the refund of any amount paid with respect thereto.

7.5      CHANGE IN STOCK AND ADJUSTMENTS.

         (a)      Changes in Law or Circumstances.  Subject to Section 7.7
                  (which only applies in the event of a Change in Control), in
                  the event of any change in applicable laws or any change in
                  circumstances which results in or would result in any dilution
                  of the rights granted under the Plan, or which otherwise
                  warrants equitable adjustment because it interferes with the
                  intended operation of the Plan, then, if the Committee should
                  determine, in its absolute discretion, that such change
                  equitably requires an adjustment in the number or kind of
                  shares of stock or other securities or property theretofore
                  subject, or which may become subject, to issuance or transfer
                  under the Plan or in the terms and conditions of outstanding
                  Incentive Awards, such adjustment shall be made in accordance
                  with such determination. Such adjustments may include changes
                  with respect to (i) the aggregate number of Shares that may be
                  issued under the Plan, (ii) the number of Shares subject to
                  Incentive Awards, and (iii) the price per Share for
                  outstanding Incentive Awards.

         (b)      Exercise of Corporate Powers.  The existence of the Plan or
                  outstanding Incentive Awards hereunder shall not affect in any
                  way the right or power of the Company or its stockholders to
                  make or authorize any or all adjustments, recapitalization,
                  reorganization or other changes in the Company's capital
                  structure or its business or any merger or consolidation of
                  the Company, or any issue of bonds, debentures, preferred or
                  prior preference stocks ahead of or affecting the Common

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                  Stock or the rights thereof, or the dissolution or liquidation
                  of the Company, or any sale or transfer of all or any part of
                  its assets or business, or any other corporate act or
                  proceeding whether of a similar character or otherwise.

         (c)      Recapitalization of the Company.  Subject to Section 7.7, if
                  while there are Incentive Awards outstanding, the Company
                  shall effect any subdivision or consolidation of Shares of
                  Common Stock or other capital readjustment, the payment of a
                  stock dividend, stock split, combination of Shares,
                  recapitalization or other increase or reduction in the number
                  of Shares outstanding, without receiving compensation therefor
                  in money, services or property, then the number of Shares
                  available under the Plan and the number of Incentive Awards
                  which may thereafter be exercised shall (i) in the event of an
                  increase in the number of Shares outstanding, be
                  proportionately increased and the price per share of the
                  Incentive Awards awarded shall be proportionately reduced; and
                  (ii) in the event of a reduction in the number of Shares
                  outstanding, be proportionately reduced, and the price per
                  share of the Incentive Awards awarded shall be proportionately
                  increased. The Committee shall take such action and whatever
                  other action it deems appropriate, in its discretion, so that
                  the value of each outstanding Incentive Award to the Grantee
                  shall not be adversely affected by a corporate event described
                  in this subsection (c).

         (d)      Reorganization of the Company.  Subject to Section 7.7, if the
                  Company is reorganized, merged or consolidated, or is a party
                  to a plan of exchange with another corporation, pursuant to
                  which reorganization, merger, consolidation or exchange,
                  stockholders of the Company receive any Shares of Common Stock
                  or other securities or property, or if the Company should
                  distribute securities of another corporation to its
                  stockholders, each Grantee shall be entitled to receive, in
                  lieu of the number of Restricted Stock shares, with a
                  corresponding adjustment to the price per Share of said
                  Incentive Awards, to which he would have been entitled if,
                  immediately prior to such corporate action, such Grantee had
                  been the holder of record of a number of Shares equal to the
                  number of the outstanding Incentive Awards payable in Shares
                  that were previously awarded to him. For this purpose, Shares
                  of Restricted Stock shall be treated the same as unrestricted
                  outstanding Shares of Common Stock. In this regard, the
                  Committee shall take whatever other action it deems
                  appropriate to preserve the rights of Grantees holding
                  outstanding Incentive Awards.

         (e)      Issue of Common Stock by the Company.  Except as hereinabove
                  expressly provided in this Section 7.5 and subject to Section
                  7.7, the issue by the Company of shares of stock of any class,
                  or securities convertible into shares of stock of any class,
                  for cash or property, or for labor or services, either upon
                  direct sale or upon the exercise of rights or warrants to
                  subscribe therefor, or upon any conversion of shares or
                  obligations of the Company convertible into such shares or
                  other securities, shall not affect, and no adjustment by
                  reason thereof shall be made with respect to, the number of,
                  or price per Share of, any Incentive Awards then outstanding
                  under previously granted Incentive Awards; provided, however,
                  in

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                  such event, outstanding Shares of Restricted Stock shall be
                  treated the same as outstanding unrestricted Shares of Common
                  Stock.

         (f)      Acquisition of the Company.  Subject to Section 7.7, in the
                  case of any sale of assets, merger, consolidation or
                  combination of the Company with or into another corporation
                  other than a transaction in which the Company is the
                  continuing or surviving corporation and which does not result
                  in the outstanding Shares being converted into or exchanged
                  for different securities, cash or other property, or any
                  combination thereof (an "Acquisition"), in the absolute
                  discretion of the Committee, any Grantee who holds an
                  outstanding Incentive Award shall have the right (subject to
                  any limitation applicable to the Incentive Award) thereafter
                  and during the term of the Incentive Award, to receive upon
                  exercise thereof the Acquisition Consideration (as defined
                  below) receivable upon the Acquisition by a holder of the
                  number of Shares which would have been obtained upon exercise
                  of the Incentive Award immediately prior to the Acquisition.
                  The term "Acquisition Consideration" shall mean the kind and
                  amount of shares of the surviving or new corporation, cash,
                  securities, evidence of indebtedness, other property or any
                  combination thereof receivable in respect of one Share upon
                  consummation of an Acquisition. The Committee, in its
                  discretion, shall have the authority to take whatever action
                  it deems appropriate to effectuate the provisions of this
                  subsection (f).

         (g)      Assumption under the Plan of Other Restricted Stock Awards.
                  The Committee, in its absolute discretion, may authorize the
                  assumption and continuation under the Plan of outstanding
                  stock-based incentive awards that were granted under a plan or
                  agreement that is or was maintained by a corporation or other
                  entity that was merged into, consolidated with, or whose stock
                  or assets were acquired by, the Company as the surviving
                  corporation. Any such action shall be upon such terms and
                  conditions as the Committee, in its discretion, may deem
                  appropriate, including provisions to preserve the holder's
                  rights under the previously granted stock-based restricted
                  stock award. Any such assumption and continuation of any such
                  previously granted and unexercised restricted stock award
                  shall be treated as an outstanding Incentive Award under the
                  Plan and shall thus count against the number of Shares
                  reserved for issuance pursuant to Section 4.1.

         (h)      Assumption of Incentive Awards by a Successor. In the event of
                  a dissolution or liquidation of the Company, a sale of all or
                  substantially all of the Company's assets, a merger or
                  consolidation involving the Company in which the Company is
                  not the surviving corporation, or a merger or consolidation
                  involving the Company in which the Company is the surviving
                  corporation but the holders of Shares of Common Stock receive
                  securities of another corporation and/or other property,
                  including cash, the Committee shall, in its absolute
                  discretion, have the right and power to:

                  (i)      cancel, effective immediately prior to the occurrence
                           of such corporate event, each outstanding Incentive
                           Award (whether or not then

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                           exercisable), and, in full consideration of such
                           cancellation, pay to the Grantee to whom such
                           Incentive Award was granted an amount in cash equal
                           to the excess of (A) the value, as determined by the
                           Committee, of the property (including cash) received
                           by the holder of a Share of Common Stock as a result
                           of such event over (B) the Grantee's purchase price,
                           if any, under such Incentive Award; or

                  (ii)     provide for the exchange of each Incentive Award
                           outstanding immediately prior to such corporate event
                           (whether or not then exercisable) for another award
                           on some or all of the property for which such
                           Incentive Award is exchanged and, incident thereto,
                           make an equitable adjustment as determined by the
                           Committee, in its discretion, in the purchase price
                           of the Incentive Award, or the number of Shares or
                           amount of cash subject to the Incentive Award or, if
                           deemed appropriate, provide for a cash payment to the
                           Grantee in consideration for the exchange of his
                           Incentive Award.

                  The Committee, in its discretion, shall have the authority to
                  take whatever action it deems appropriate to effectuate the
                  provisions of this subsection (h).

7.6      TERMINATION OF EMPLOYMENT, DEATH AND DISABILITY.

         (a)      Termination of Employment. Unless otherwise expressly provided
                  in his Restricted Stock Agreement, upon Grantee's Retirement
                  or any other Termination of Employment for any reason except
                  due to his death or Disability, any non-vested portion of his
                  outstanding Incentive Award at the time of such termination
                  shall automatically expire and terminate and no further
                  vesting shall occur.

         (b)      Disability or Death. Unless otherwise expressly provided in
                  his Restricted Stock Agreement, upon termination of Employment
                  as a result of the Grantee's Disability or death, any
                  non-vested portion of his Incentive Award shall become 100%
                  vested upon termination of Employment due to Disability or
                  death.

         (c)      Continuation of Incentive Award. Subject to applicable law, in
                  the event that a Grantee ceases to be an Employee, for
                  whatever reason, the Committee and Grantee may mutually agree
                  with respect to any outstanding Incentive Award then held by
                  the Grantee (i) for an acceleration or other adjustment in any
                  vesting schedule applicable to the Incentive Award, or (ii) to
                  any other change in the terms and conditions of the Incentive
                  Award. In the event of any such change to an outstanding
                  Incentive Award, a written amendment to the Grantee's
                  Restricted Stock Agreement shall be required.

7.7      CHANGE IN CONTROL.

         Notwithstanding any contrary provision in the Plan, in the event of a
         Change in Control (as defined below), the following actions shall
         automatically occur as of the day

                                      -11-

<PAGE>   12

                  immediately preceding the Change in Control date unless
                  otherwise expressly provided in the Grantee's Restricted Stock
                  Agreement:

         (a)      all of the restrictions and conditions of any Incentive Award
                  then outstanding shall be deemed satisfied, and the
                  Restriction Period with respect thereto shall be deemed to
                  have lapsed and expired; and

         (b)      all Restricted Stock shall be 100% vested and deemed earned
                  in full.

         Notwithstanding any other provision of the Plan, unless expressly
         provided otherwise in the Grantee's Restricted Stock Agreement, the
         provisions of this Section 7.7 may not be terminated, amended, or
         modified to adversely affect any Incentive Award theretofore granted
         under the Plan without the prior written consent of the Grantee with
         respect to his outstanding Incentive Award subject, however, to the
         last paragraph of this Section 7.7.

7.8      EXCHANGE OF INCENTIVE AWARDS.

         The Committee may, in its discretion, permit any Grantee to surrender
         outstanding Incentive Awards in order to exercise or realize his rights
         under other Incentive Awards or in exchange for the grant of new
         Incentive Awards, or require holders of Incentive Awards to surrender
         outstanding Incentive Awards (or comparable rights under other plans or
         arrangements) as a condition precedent to the grant of new Incentive
         Awards.

7.9      FINANCING.

         The Company may extend and maintain, or arrange for and guarantee, the
         extension and maintenance of financing to any Grantee to purchase
         Shares pursuant to exercise of an Incentive Award upon such terms as
         are approved by the Committee in its discretion.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

8.1      FUNDING AND LIABILITY OF COMPANY.

         No provision of the Plan shall require the Company, for the purpose of
         satisfying any obligations under the Plan, to purchase assets or place
         any assets in a trust or other entity to which contributions are made,
         or otherwise to segregate any assets. In addition, the Company shall
         not be required to maintain separate bank accounts, books, records or
         other evidence of the existence of a segregated or separately
         maintained or administered fund for purposes of the Plan. The Company
         shall not be required to segregate any assets that may at any time be
         represented by cash, Common Stock or rights thereto. The Plan shall not
         be construed as providing for such segregation, nor shall the Company,
         the Board or the Committee be deemed to be a trustee of any cash,
         Common Stock or rights thereto. Any liability or obligation of the
         Company to any Grantee with respect to an

                                      -12-

<PAGE>   13

         Incentive Award shall be based solely upon any contractual obligations
         that may be created by the Plan and any Restricted Stock Agreement, and
         no such liability or obligation of the Company shall be deemed to be
         secured by any pledge or other encumbrance on any property of the
         Company. Neither the Company, the Board nor the Committee shall be
         required to give any security or bond for the performance of any
         obligation that may be created by the Plan.

8.2      WITHHOLDING TAXES.

         (a)      Tax Withholding. The Company shall have the power and the
                  right to deduct or withhold, or require a Grantee to remit to
                  the Company, an amount sufficient to satisfy federal, state,
                  and local taxes, domestic or foreign, required by law or
                  regulation to be withheld with respect to any taxable event
                  arising as a result of an Incentive Award.

         (b)      Share Withholding.  With respect to tax withholding required
                  upon the lapse of restrictions on Shares of Restricted Stock,
                  or upon any other taxable event arising as a result of any
                  Incentive Awards, Grantees may elect, subject to the approval
                  of the Committee in its discretion, to satisfy the withholding
                  requirement, in whole or in part, by having the Company
                  withhold Shares having a Fair Market Value on the date the tax
                  is to be determined equal to the minimum statutory total tax
                  which could be imposed on the transaction. All such elections
                  shall be made in writing, signed by the Grantee, and shall be
                  subject to any restrictions or limitations that the Committee,
                  in its discretion, deems appropriate.

         (c)      Loans. The Committee, in its discretion, may provide for
                  loans, on either a short term or demand basis, from the
                  Company to a Grantee to permit the payment of taxes required
                  by law.

8.3      NO GUARANTEE OF TAX CONSEQUENCES.

         Neither the Company nor the Committee makes any commitment or guarantee
         that any federal, state or local tax treatment will apply or be
         available to any person participating or eligible to participate
         hereunder.

8.4      DESIGNATION OF BENEFICIARY BY PARTICIPANT.

         Each Grantee may, from time to time, name any beneficiary or
         beneficiaries (who may be named contingently or successively) to whom
         any benefit under any Incentive Award is to be paid in case of his
         death before he receives any or all of such benefit. Each such
         designation shall revoke all prior designations by the same Grantee,
         shall be in a form prescribed by the Committee, and will be effective
         only when filed by the Grantee in writing with the Committee during the
         Grantee's lifetime.

         A Grantee may, from time to time, revoke or change his beneficiary
         designation by filing a new designation form with the Committee (or its
         delegate). The last valid designation

                                      -13-

<PAGE>   14

         received shall be controlling; provided, however, that no beneficiary
         designation, or change or revocation thereof, shall be effective unless
         received prior to the Grantee's death and in no event shall it be
         effective as of a date prior to its receipt. Notwithstanding any
         contrary provision of this Section 8.3, no beneficiary designation made
         by a married Grantee, other than one under which the surviving lawful
         spouse of such Grantee is designated as the sole beneficiary, shall be
         valid and effective without the written consent of such spouse.

         If no valid and effective beneficiary designation exists at the time of
         the Grantee's death, or if no designated beneficiary survives the
         Grantee, or if such designation conflicts with applicable law, the
         payment of the Grantee's Incentive Award, if earned and payable
         hereunder, shall be made to the Grantee's surviving lawful spouse, if
         any, or if there is no such surviving spouse, to the executor or
         administrator of his estate. If the Committee is in doubt as to the
         right of any person to receive such amount, the Committee may direct
         that the amount be paid into any court of competent jurisdiction in an
         interpleader action, and such payment shall be a full and complete
         discharge of any liability or obligation of the Plan, Company,
         Committee or Board therefor.

8.5      AMENDMENT AND TERMINATION.

         The Board or the Committee shall have the power and authority to
         terminate or amend the Plan at any time. No termination, amendment, or
         modification of the Plan shall adversely affect in any material way any
         outstanding Incentive Award previously granted to a Grantee under the
         Plan, without the written consent of such Grantee or other designated
         holder of such Incentive Award.

8.6      REQUIREMENTS OF LAW.

         The granting of Incentive Awards and the issuance of Shares under the
         Plan shall be subject to all applicable laws, rules, and regulations,
         and to such approvals by any governmental agencies or national
         securities exchanges as may be required. Certificates evidencing Shares
         of Common Stock delivered under the Plan (to the extent that such
         Shares are so evidenced) may be subject to such stop transfer orders
         and other restrictions as the Committee may deem advisable under the
         rules and regulations of the Securities and Exchange Commission, any
         securities exchange or transaction reporting system upon which the
         Common Stock is then listed or to which it is admitted for quotation,
         and any applicable federal or state securities law. The Committee may
         cause a legend or legends to be placed upon such certificates to make
         appropriate reference to such restrictions.

8.7      SUCCESSORS.

         All obligations of the Company under the Plan with respect to Incentive
         Awards granted hereunder shall be binding on any successor to the
         Company, whether the existence of such successor is the result of a
         direct or indirect purchase, merger, consolidation, or otherwise, of
         all or substantially all of the business and/or assets of the Company.

                                      -14-

<PAGE>   15

8.8      MISCELLANEOUS PROVISIONS.

         (a)      No Employee shall have any claim or right to be granted an
                  Incentive Award under the Plan. Neither the Plan, nor any
                  action taken hereunder, shall be construed as giving any
                  Employee any right to receive future Incentive Awards upon the
                  same terms and conditions as previously granted.

         (b)      No Shares of Common Stock shall be issued hereunder unless
                  counsel for the Company is then satisfied that such issuance
                  will be in compliance with federal and state securities laws.

         (c)      The expenses of the Plan shall be borne by the Company.

         (d)      By accepting any Incentive Award, each Grantee and each person
                  claiming by or through him shall be deemed to have indicated
                  his acceptance of the Plan.

8.9      SEVERABILITY.

         In the event that any provision of the Plan shall be held illegal,
         invalid or unenforceable for any reason, such provision shall be fully
         severable, but shall not affect the remaining provisions of the Plan,
         and the Plan shall be construed and enforced as if the illegal,
         invalid, or unenforceable provision was not included herein.

8.10     GENDER, TENSE AND HEADINGS.

         Whenever the context so requires, words of the masculine gender used
         herein shall include the feminine and neuter, and words used in the
         singular shall include the plural. Section headings as used herein are
         inserted solely for convenience and reference and constitute no part of
         the interpretation or construction of the Plan.

8.11     GOVERNING LAW.

         The Plan shall be interpreted, construed and constructed in accordance
         with the laws of the State of Texas without regard to its conflicts of
         law provisions, except as may be superseded by applicable laws of the
         United States.

                                      -15-

<PAGE>   16
                                   SCHEDULE A

                                DEFINITIONS FOR:
     VERITAS DGC INC. RESTRICTED STOCK PLAN, VERITAS DGC INC. 1992 EMPLOYEE
  NON-QUALIFIED STOCK OPTION PLAN, VERITAS DGC INC. 1992 NON-EMPLOYEE DIRECTOR
  STOCK OPTION PLAN, VERITAS DGC INC. 2001 EMPLOYEE NON-QUALIFIED STOCK OPTION
       PLAN, AND VERITAS DGC INC. 2001 KEY EMPLOYEE RESTRICTED STOCK PLAN

(a)      2001 RESTRICTED STOCK PLAN. The Veritas DGC Inc. 2001 Key Employee
         Restricted Stock Plan.

(b)      AUTHORIZED OFFICER. The Chairman of the Board, the Chief Executive
         Officer of the Company, an Executive Vice President of the Company, the
         Vice President of Human Resources, and any other officer of the Company
         who has been delegated the authority by the Committee to execute a
         Restricted Stock Agreement or Option Agreement for and on behalf of the
         Company. No officer shall be an Authorized Officer with respect to any
         Restricted Stock Agreement or Option Agreement for himself or herself

(c)      BOARD. The Board of Directors of the Company.

(d)      CAUSE. When used in connection with termination of Employment as
         determined by the Chairman or Committee, "Cause" shall mean the
         Employee's willfully engaging in conduct materially and demonstrably
         injurious to the property of business of Employer, including, without
         limitation, fraud, misappropriation of funds or other property of
         Employer, other willful misconduct, gross negligence or commission of a
         felony or other crime of moral turpitude.

(e)      CASH EXERCISE. Form of exercise of an Option in which the Option Price
         for the number of Shares of Common Stock being purchased is paid with
         cash, certified check, bank draft, or postal or express money order
         payable to the order of the Company for an amount equal to the Option
         Price of the Shares.

(f)      CASHLESS EXERCISE. Form of exercise of an Option in which the Option
         Price for the number of shares of Common Stock being purchased is paid
         with consideration in the form of Common Stock at is Fair Market Value
         on the date of exercise, an election to have Shares of Common Stock,
         which otherwise would be issued on exercise, withheld in payment of the
         exercise price and/or to satisfy any required income tax withholding
         obligation, or any combination of cash and cashless exercise and/or any
         other form of payment which is acceptable to the Committee.

(g)      CHANGE IN CONTROL. The occurrence of any of the following events:

         (1)      The acquisition by an individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a
                  "Person") of beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of fifty

<PAGE>   17

                  percent (50%) or more of the total voting power of all the
                  Company's then outstanding securities entitled to vote
                  generally in the election of Directors to the Board; provided,
                  however, that for purposes of this subsection (1), the
                  following acquisitions shall not constitute a Change in
                  Control: (i) any acquisition by the Company or its Parent or
                  Subsidiaries, (ii) any acquisition by any Employee benefit
                  plan (or related trust) sponsored or maintained by the Company
                  or its Parent or Subsidiaries, or (iii) any acquisition
                  consummated with the prior approval of the Board; or

         (2)      During the period of two consecutive calendar years,
                  individuals who at the beginning of such period constitute the
                  Board, and any new Directors whose election by the Board or
                  nomination for election by the Company's shareholders was
                  approved by a vote of at least two-thirds of the Directors
                  then still in office, who either were Directors at the
                  beginning of the two-year period or whose election or
                  nomination for election was previously so approved, cease for
                  any reason to constitute a majority of the Board; or

         (3)      The Company becomes a party to a merger, plan of
                  reorganization, consolidation or share exchange in which
                  either (i) the Company will not be the surviving corporation
                  or (ii) the Company will be the surviving corporation and any
                  outstanding Shares of the Company's Common Stock will be
                  converted into shares of any other company (other than a
                  re-incorporation or the establishment of a holding company
                  involving no change of ownership of the Company) or other
                  securities, cash or other property (excluding payments made
                  solely for fractional Shares; or

         (4)      The shareholders of the Company approve a merger, plan of
                  reorganization, consolidation or share exchange with any other
                  corporation, and immediately following such merger, plan of
                  reorganization, consolidation or share exchange the holders of
                  the voting securities of the Company outstanding immediately
                  prior thereto hold securities representing fifty percent (50%)
                  or less of the combined voting power of the voting securities
                  of the Company or such surviving entity outstanding
                  immediately after such merger, plan of reorganization,
                  consolidation or share exchange; provided, however, that
                  notwithstanding the foregoing, no Change in Control shall be
                  deemed to have occurred if one-half ( 1/2) or more of the
                  members of the Board of the Company or such surviving entity
                  immediately after such merger, plan of reorganization,
                  consolidation or share exchange is comprised of persons who
                  served as Directors of the Company immediately prior to such
                  merger, plan of reorganization, consolidation or share
                  exchange or who are otherwise designees of the Company; or

         (5)      Upon approval by the Company's shareholders of a complete
                  liquidation and dissolution of the Company or the sale or
                  other disposition of all or substantially all of the assets of
                  the Company other than to a Parent or Subsidiary; or
<PAGE>   18

         (6)      Any other event that a majority of the Board, in its sole
                  discretion, shall determine constitutes a Change in Control.

Notwithstanding the occurrence of any of the foregoing events of this Section
(g) which would otherwise result in a Change in Control, the Board may determine
in its complete discretion, if it deems it to be in the best interest of the
Company, that an event or events otherwise constituting a Change in Control
shall not be considered a Change in Control. Such determination shall be
effective only if it is made by the Board prior to the occurrence of an event
that otherwise would be a Change in Control, or after such event if made by the
Board a majority of which is composed of Directors who were members of the Board
immediately prior to the event that otherwise would be a Change in Control.

(h)      CODE. The Internal Revenue Code of 1986, as amended.

(i)      COMMITTEE. The Compensation Committee of the Board.

(j)      COMMON STOCK. The common stock of the Company, $.01 par value per
         share, or, in the event that the outstanding shares of common stock are
         later changed into or exchanged for a different class of stock or
         securities of the Company or another corporation, that other stock or
         security.

(k)      COMPANY. Veritas DGC Inc., a Delaware corporation.

(l)      COVERED EMPLOYEE. Any individual who, on the last day of the taxable
         year, is (a) the chief executive officer of the Company or is acting in
         such capacity; or (b) among the four highest compensated officers
         (other than the chief executive officer) as each are defined under the
         regulation promulgated under Section 162(m) of the Code

(m)      DIRECTOR. An individual elected by the shareholders/stockholders of the
         Company, or in the case of a vacancy or newly created position, by the
         other Directors, to serve on the Board who performs the functions of a
         director set forth in the Company's charter documents and bylaws.

(n)      DISABILITY. As determined by the Committee in its discretion exercised
         in good faith, a physical or mental condition of the Participant that
         would entitle him to payment of disability income payments under the
         Company's long-term disability insurance policy or plan for employees
         as then in effect; or in the event that the Participant is not covered,
         for whatever reason, under the Company's long-term disability insurance
         policy or plan or in the event the Company does not maintain such a
         long-term disability insurance policy, "Disability" means a permanent
         and total disability as defined in section 22(e)(3) of the Code. A
         determination of Disability may be made by a physician selected or
         approved by the Committee and, in this respect, the Grantee shall
         submit to an examination by such physician upon request by the
         Committee.

(o)      EMPLOYEE. A person employed by the Company or a Subsidiary as a common
         law employee.
<PAGE>   19

(p)      EMPLOYMENT. Employment by the Company (or any Parent or Subsidiary), or
         by any corporation issuing or assuming an Incentive Award in any
         transaction described in Section 424(a) of the Code, or by a parent
         corporation or a subsidiary corporation of such corporation issuing or
         assuming such Incentive Award, as the parent-subsidiary relationship
         shall be determined at the time of the corporate action described in
         Section 424(a) of the Code. In this regard, neither the transfer of a
         Grantee from Employment by the Company to Employment by any Parent or
         Subsidiary, nor the transfer of a Grantee from Employment by any Parent
         or Subsidiary to Employment by the Company, shall be deemed to be a
         termination of Employment of the Grantee. Moreover, the Employment of a
         Grantee shall not be deemed to have been terminated because of an
         approved leave of absence from active Employment on account of
         temporary illness, authorized vacation or granted for reasons of
         professional advancement, education, health, or government service, or
         during military leave for any period (if the Grantee returns to active
         Employment within 90 days after the termination of military leave), or
         during any period required to be treated as a leave of absence by
         virtue of any applicable statute, Company personnel policy or
         agreement. Whether an authorized leave of absence shall constitute
         termination of Employment hereunder shall be determined by the
         Committee in its discretion.

(q)      EXCHANGE ACT. The Securities Exchange Act of 1934, as amended.

(r)      EXERCISABILITY. The ability to convert an Option into the underlying
         Shares of Common Stock through their purchase or other acquisition.

(s)      EXERCISE. The transaction in which an Optionee elects to purchase some
         or all of the Shares of Common Stock underlying an Option.

(t)      EXERCISE PRICE. The consideration in money or property that, pursuant
         to the terms of an Option Agreement, is the price at which the Shares
         of Common Stock subject to an Option may be purchased. The exercise
         price is typically expressed on a per share basis.

(u)      EXPIRATION DATE.  The last date on which an Option may be exercised by
         an Optionee.

(v)      FAIR MARKET VALUE. The Fair Market Value of one share of Common Stock
         shall be the last reported sale price for the Common Stock on the
         principal stock exchange on which the Common Stock is traded on the
         business day immediately preceding the date for which the Fair Market
         Value is being determined.

(w)      GRANTEE. Any Employee who is granted an Incentive Award under the Plan.

(x)      INCENTIVE AWARD. A grant of Restricted Stock made to a Grantee under
         the Restricted Stock Plan or the 2001 Restricted Stock Plan.

(y)      INSIDER. An individual who is, on the relevant date, an officer,
         director or ten percent (10%) beneficial owner of any class of the
         Company's equity securities that is registered
<PAGE>   20

         pursuant to Section 12 of the Exchange Act, all as defined under
         Section 16 of the Exchange Act.

(z)      MATURE SHARES. Shares of Stock that the Optionee has held for at least
         six months.

(aa)     NYSE. The New York Stock Exchange, Inc.

(bb)     NONQUALIFIED STOCK OPTION. An Option that is not intended to satisfy
         the requirements of a statutory stock option under Section 422 of the
         Code. This type of stock option gives rise to federal income tax
         consequences on the date of exercise.

(cc)     OPTION. An option granted under the respective Plan to purchase shares
         of Common Stock.

(dd)     OPTION AGREEMENT. A written contract setting forth the terms and
         conditions of an Option.

(ee)     OPTION PRICE. The consideration in money or Common Stock which,
         pursuant to the terms of an Option Agreement, is the price at which the
         Shares of Common Stock subject to an Option may be purchased.

(ff)     OPTIONEE. The recipient of an Option.

(gg)     OUTSTANDING OPTION. An Option that has been formally granted by a
         corporation and is not cancelled, exercised or expired.

(hh)     PARENT. Any corporation (whether now or hereafter existing) which
         constitutes a "parent" of the Company, as defined in Section 424(e) of
         the Code.

(ii)     PARTICIPANT. An Optionee or the recipient of Restricted Stock.

(jj)     PERFORMANCE-BASED EXCEPTION. The Performance-Based Exception from the
         tax deductibility limitations of Section 162(m) of the Code, as
         prescribed in Code Section 162(m) and Treasury Regulation Section
         1.162-27(e) (or its successor).

(kk)     PLAN. The Veritas DGC Inc. Restricted Stock Plan, the Employee
         Non-qualified Stock Option Plan, the Non-employee Director Stock Option
         Plan, the Veritas DGC Inc. 2001 Key Employee Nonqualified Stock Option
         Plan and the Veritas DGC Inc. 2001 Key Employee Restricted Stock Plan
         as set forth in their respective plan documents and as they may be
         amended from time to time.

(ll)     RESTRICTED STOCK. Shares of Common Stock issued or transferred to a
         Grantee pursuant to the Restricted Stock Plan or the 2001 Restricted
         Stock Plan.
<PAGE>   21

(mm)     RESTRICTED STOCK AGREEMENT. The written agreement entered into between
         the Company and the Grantee setting forth the terms and conditions
         pursuant to which a Restricted Stock Award is granted.

(nn)     RESTRICTED STOCK AWARD. An authorization by the Committee to issue or
         transfer Restricted Stock to a Grantee.

(oo)     RESTRICTION PERIOD. The period of time determined by the Committee and
         set forth in the Restricted Stock Agreement during which the transfer
         of Restricted Stock by the Grantee is restricted.

(pp)     RETIREMENT. The occurrence of the Participant's voluntary Termination
         of Employment after (a) he has attained the age of 62 and completed ten
         years of employment with the Company and/or any of its Subsidiaries, or
         (b) he has attained such other retirement age as may be specified in
         the Participant's Restricted Stock Agreement or Option Agreement.

(qq)     RULE 144. Rule promulgated by the Securities and Exchange Commission as
         a "safe harbor" for the resale of "restricted securities" (that is,
         securities that were acquired other than in a public offering), and
         "control securities" (that is, securities owned by affiliates of the
         corporation).

(rr)     RULE 16b. Provision of the Exchange Act that requires the directors and
         officers of an issuer that has registered a class of its equity
         securities under Section 12, as well as the beneficial owners of more
         than 10% of any class of the issuer's registered equity securities, to
         turn over to the issuer any profits realized from the purchase and
         sale, and purchase of the issuer's equity securities within a period of
         less than six months.

(ss)     SECURITIES AND EXCHANGE COMMISSION (SEC). Agency of the federal
         government created under the Exchange Act that administers the federal
         laws regulating the offer and sale of Securities in the United States.

(tt)     SHARE. A share of the Common Stock of the Company.

(uu)     SHARE POOL. The number of Shares authorized for issuance under Section
         1.4 of the Veritas DGC Inc. Restricted Stock Plan, Section 3 of the
         Veritas DGC Inc. Employee Non-qualified Stock Option Plan, and Section
         4 of the Veritas DGC Inc. Non-employee Director Stock Option Plan, as
         adjusted for awards and payouts under Section 1.5 of the Restricted
         Stock Plan and as adjusted for changes in corporate capitalization
         under Section 3.5 of the Restricted Stock Plan, Section 12 of the
         Employee Non-qualified Stock Option Plan, and Section 17 of the
         Non-employee Director Stock Option Plan.

(vv)     SUBSIDIARY OR SUBSIDIARIES. Any corporation other than the Company
         (whether now or hereafter existing) in an unbroken chain of
         corporations beginning with the Company if, at the time of the action
         or transaction, each of the corporations other than the last
<PAGE>   22

         corporation in the unbroken chain owns stock possessing 50% or more of
         the total combined voting power of all classes of stock in one of the
         other corporations in the chain.

(ww)     TERMINATION OF EMPLOYMENT. The termination of a Participant's status as
         a common law employee of the Company or a Subsidiary unless the
         Participant immediately thereafter is hired as a common law employee of
         a different employer that is the Company or a Subsidiary.<PAGE>   1
                                                                    EXHIBIT 4.10

                                VERITAS DGC INC.

                2001 KEY EMPLOYEE NONQUALIFIED STOCK OPTION PLAN

                                   ARTICLE I

                                      PLAN

         1.1 PURPOSE. The Plan is intended to advance the best interests of the
Company and its stockholders by providing those persons who have substantial
responsibility for the management and growth of the Company and its Subsidiaries
with additional incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue in
their employment or affiliation with the Company or any of its Subsidiaries.

         1.2 TERM OF PLAN. The Plan is effective on February 1, 2001. The Plan
shall remain in effect until all Options granted under the Plan have been
exercised or expired.

                                   ARTICLE II

                                   DEFINITIONS

         The words and phrases defined in this Article shall have the meaning
set out in Schedule A attached hereto, unless the context in which any such word
or phrase appears reasonably requires a broader, narrower or different meaning.

                                  ARTICLE III

                                   ELIGIBILITY

         The individuals who shall be eligible to receive Options shall be those
Employees who are not officers (as defined by the Securities and Exchange
Commission in Rule 16a-1(f) under the Securities Exchange Act of 1934, or any
successor rule) or directors of the Company, who have substantial responsibility
for the management and growth of the Company or any of its Subsidiaries as the
Committee shall determine from time to time.

                                   ARTICLE IV

                     GENERAL PROVISIONS RELATING TO OPTIONS

         4.1 AUTHORITY TO GRANT OPTIONS. The Committee may grant Options to
those key Employees of the Company or any of its Subsidiaries as it shall from
time to time determine, under the terms and conditions of the Plan. Subject only
to any applicable limitations set out in the Plan, the number of shares of
Common Stock to be covered by any Option to be granted to any person shall be as
determined by the Committee.

         4.2 DEDICATED SHARES. The maximum number of shares of Common Stock with
respect to which Options may be granted under the Plan is 2,000,000. Such shares
of Common

<PAGE>   2

Stock may be treasury shares or authorized but unissued shares. The
number of shares stated in this Section 4.2 shall be subject to adjustment in
accordance with the provisions of Section 4.5. If any outstanding Option expires
for any reason or any Option is surrendered, the shares of Common Stock
allocable to the unexercised portion of that Option may again be subject to an
Option under the Plan.

         4.3 NON-TRANSFERABILITY. Except as specified in the applicable Option
Agreement or in a domestic relations court order, an Option shall not be
transferable by the Optionee other than by will or under the laws of descent and
distribution, and shall be exercisable, during the Optionee's lifetime, only by
him. In the discretion of the Committee, any attempt to transfer an Option other
than under the terms of the Plan and the applicable Option Agreement may
terminate the Option.

         4.4 REQUIREMENTS OF LAW. The Company shall not be required to sell or
issue any Common Stock under any Option if issuing that Common Stock would
constitute or result in a violation by the Optionee or the Company of any
provision of any law, statute or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating
to the registration of securities, upon exercise of any Option, the Company
shall not be required to issue any Common Stock unless the Committee has
received evidence satisfactory to it to the effect that the Optionee will not
transfer the Common Stock except in accordance with applicable law, including
receipt of an opinion of counsel satisfactory to the Company to the effect that
any proposed transfer complies with applicable law. The determination by the
Committee on this matter shall be final, binding and conclusive. The Company
may, but shall in no event be obligated to, register any Common Stock covered by
the Plan pursuant to applicable securities laws of any country or any political
subdivision. In the event the Common Stock issuable on exercise of an Option is
not registered, the Company may imprint on the certificate evidencing the Common
Stock any legend that counsel for the Company considers necessary or advisable
to comply with applicable law. The Company shall not be obligated to take any
other affirmative action in order to cause the exercise of an Option, or the
issuance of shares pursuant thereto, to comply with any law or regulation of any
governmental authority.

         4.5 CHANGES IN THE COMPANY'S CAPITAL STRUCTURE. (a) The existence of
outstanding Options shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, any merger or consolidation of the Company, any issue
of bonds, debentures, preferred or prior preference stock ahead of or affecting
the Common Stock or its rights, the dissolution or liquidation of the Company,
any sale or transfer of all or any part of its assets or business or any other
corporate act or proceeding, whether of a similar character or otherwise.

         (b) If the Company shall effect a subdivision or consolidation of
shares or other capital readjustment, the payment of a stock dividend, or other
increase or reduction of the number of shares of Common Stock outstanding,
without receiving compensation for it in money, services or property, then (i)
the number, class or series and per share price of shares of Common Stock
subject to outstanding Options under the Plan shall be appropriately adjusted in
such a manner as to entitle an Optionee to receive upon exercise of an Option,
for the same aggregate cash consideration, the equivalent total number and class
or series of shares he would

                                       -2-

<PAGE>   3

have received had he exercised his Option in full immediately prior to the event
requiring the adjustment, and (ii) the number and class or series of shares of
Common Stock then reserved to be issued under the Plan shall be adjusted by
substituting for the total number and class or series of shares of Common Stock
then reserved, that number and class or series of shares of Common Stock that
would have been received by the owner of an equal number of outstanding shares
of each class or series of Common Stock as the result of the event requiring the
adjustment.

         (c) Unless the transaction constitutes a Change in Control, if while
unexercised Options remain outstanding under the Plan (i) the Company shall not
be the surviving entity in any merger, consolidation or other reorganization (or
survives only as a subsidiary of an entity other than an entity that was
wholly-owned by the Company immediately prior to such merger, consolidation or
other reorganization), (ii) the Company sells, leases or exchanges or agrees to
sell, lease or exchange all or substantially all of its assets to any other
person or entity (other than an entity wholly-owned by the Company), (iii) the
Company is to be dissolved or (iv) the Company is a party to any other corporate
transaction (as defined under section 424(a) of the Code and applicable
Department of Treasury Regulations) that is not described in clauses (i), (ii)
or (iii) of this sentence (each such event is referred to herein as a "Corporate
Change"), then, except as otherwise provided in an Option Agreement or as a
result of the Board's effectuation of one or more of the alternatives described
below, there shall be no acceleration of the time at which any Option then
outstanding may be exercised, and no later than ten days after the approval by
the stockholders of the Company of such Corporate Change, the Board, acting in
its sole and absolute discretion without the consent or approval of any
Optionee, shall act to effect one or more of the following alternatives, which
may vary among individual Optionees and which may vary among Options held by any
individual Optionee:

                  (1) accelerate the time at which some or all of the Options
         then outstanding may be exercised so that such Options may be exercised
         in full for a limited period of time on or before a specified date
         (before or after such Corporate Change) fixed by the Board, after which
         specified date all such Options that remain unexercised and all rights
         of Optionees thereunder shall terminate;

                  (2) require the mandatory surrender to the Company by all or
         selected Optionees of some or all of the then outstanding Options held
         by such Optionees (irrespective of whether such Options are then
         exercisable under the provisions of the Plan or the Option Agreements
         evidencing such Options) as of a date, before or after such Corporate
         Change, specified by the Board, in which event the Board shall
         thereupon cancel such Options and the Company shall pay to each such
         Optionee an amount of cash per share equal to the excess, if any, of
         the per share price offered to stockholders of the Company in
         connection with such Corporate Change over the exercise prices under
         such Options for such shares;

                  (3) with respect to all or selected Optionees, have some or
         all of their then outstanding Options (whether vested or unvested)
         assumed or have a new Option substituted for some or all of their then
         outstanding Options (whether vested or unvested) by an entity which is
         a party to the transaction resulting in such Corporate Change and which
         is then employing him, or a parent or subsidiary of such entity,
         provided that (A) such assumption or substitution is on a

                                       -3-

<PAGE>   4

         basis where the excess of the aggregate fair market value of the shares
         subject to the Option immediately after the assumption or substitution
         over the aggregate exercise price of such shares is equal to the excess
         of the aggregate fair market value of all shares subject to the Option
         immediately before such assumption or substitution over the aggregate
         exercise price of such shares, and (B) the assumed rights under such
         existing Option or the substituted rights under such new Option as the
         case may be will have the same terms and conditions as the rights under
         the existing Option assumed or substituted for, as the case may be;

                  (4) provide that the number and class or series of shares of
         Common Stock covered by an Option (whether vested or unvested)
         theretofore granted shall be adjusted so that such Option when
         exercised shall thereafter cover the number and class or series of
         shares of stock or other securities or property (including, without
         limitation, cash) to which the Optionee would have been entitled
         pursuant to the terms of the agreement or plan relating to such
         Corporate Change if, immediately prior to such Corporate Change, the
         Optionee had been the holder of record of the number of shares of
         Common Stock then covered by such Option; or

                  (5) make such adjustments to Options then outstanding as the
         Board deems appropriate to reflect such Corporate Change (provided,
         however, that the Board may determine in its sole and absolute
         discretion that no such adjustment is necessary).

         In effecting one or more of alternatives (3), (4) or (5) above, and
except as otherwise may be provided in an Option Agreement, the Board, in its
sole and absolute discretion and without the consent or approval of any
Optionee, may accelerate the time at which some or all Options then outstanding
may be exercised.

         (d) In the event of an occurrence of a Change in Control, an
outstanding Option shall be fully exercisable as of the day immediately
preceding the Change in Control unless otherwise expressly provided in the
Optionee's Option Agreement. The provisions of this paragraph (d) of Section 4.5
may not be deleted or amended to adversely affect an Option granted under the
Plan without the prior written consent of the Optionee to whom the Option was
granted, unless the Optionee's Option Agreement expressly provides otherwise.

         (e) In the event of changes in the outstanding Common Stock by reason
of recapitalizations, reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring after the date
of the grant of any Option and not otherwise provided for by this Section 4.5,
any outstanding Options and any agreements evidencing such Options shall be
subject to adjustment by the Board in its sole and absolute discretion as to the
number and price of shares of stock or other consideration subject to such
Options. In the event of any such change in the outstanding Common Stock, the
aggregate number of shares available under the Plan may be appropriately
adjusted by the Board, whose determination shall be conclusive.

         (f) The issue by the Company of shares of stock of any class or series,
or securities

                                       -4-

<PAGE>   5

convertible into shares of stock of any class or series, for cash or property,
or for labor or services either upon direct sale or upon the exercise of rights
or warrants to subscribe for them, or upon conversion of shares or obligations
of the Company convertible into shares or other securities, shall not affect,
and no adjustment by reason of such issuance shall be made with respect to, the
number, class or series, or price of shares of Common Stock then subject to
outstanding Options.

         4.6 TYPES OF OPTIONS. All Options granted under the Plan shall be
nonqualified stock options that are not intended to satisfy the requirements of
section 422 of the Code.

                                   ARTICLE V

                                     OPTIONS

         5.1 EXERCISE PRICE. The price at which Common Stock may be purchased
under an Option shall not be less than 100% of the Fair Market Value of the
shares of Common Stock on the date the Option is granted.

         5.2 DURATION OF OPTIONS. An Option shall not be exercisable after the
earlier of (i) the term of the Option specified in the Option Agreement (which
shall not exceed ten years from the date the Option is granted), or (ii) the
period of time specified herein or in the Optionee's Option Agreement that
follows the Optionee's Retirement, Disability, death or other Termination of
Employment. Unless an Optionee's Option Agreement specifies otherwise, the
Optionee's Option shall not continue to vest after the date of the Optionee's
Termination of Employment for any reason other than the death or Disability of
the Optionee.

                  (a) General Term of Option. Unless the Option Agreement
         specifies a shorter term, an Option shall expire on the tenth
         anniversary of the date the Option is granted.

                  (b) Early Termination of Option Due to Termination of
         Employment (Other Than for Death, Disability or Retirement). Except as
         may be otherwise expressly provided in an Option Agreement, an Option
         shall terminate on the earlier of (1) the date of the expiration of the
         general term of the Option or (2) the date that is three months after
         the date of the Optionee's Termination of Employment for any reason
         other than the death, Disability or Retirement of the Optionee, during
         which period the Optionee shall be entitled to exercise the Option in
         respect of the number of shares of Common Stock that the Optionee would
         have been entitled to purchase had the Optionee exercised the Option on
         the date of such Termination of Employment. Whether a leave of absence,
         or absence on military or government service, shall constitute a
         Termination of the Employment shall be determined by the Committee at
         the time thereof.

                  (c) Early Termination of Option Due to Death or Disability.
         Unless his Option Agreement specifies otherwise, in the event an
         Optionee incurs a Termination of the Employment due to death or
         Disability, the Optionee's Option shall terminate on the earlier of (1)
         the date of expiration of the general term of the Option or (2) the
         first anniversary of the date of the Optionee's Termination of
         Employment due to death or Disability.

                                       -5-

<PAGE>   6

                  (d) Early Termination of Option Due to Retirement. Unless the
         Option Agreement specifies otherwise, upon the Optionee's Retirement,
         the Optionee's Option shall terminate on the earlier of (1) the
         expiration of the general term of the Option or (2) three years after
         the date of the Optionee's Termination of Employment due to Retirement.

         After the death of an Optionee, his executors, administrators or any
person or persons to whom the Optionee's Option may be transferred by will or by
the laws of descent and distribution, shall have the right, at any time prior to
the termination of the Option to exercise the Option, in respect to the number
of shares that the Optionee would have been entitled to exercise if the Optionee
exercised the Option prior to his death or, if the Option is fully exercisable
under Section 5.3, in respect of all of the remaining shares subject to the
Option.

         5.3 AMOUNT EXERCISABLE. Each Option may be exercised at the time, in
the manner and subject to the conditions the Committee specifies in the Option
Agreement in its sole discretion. If an Optionee incurs a Termination of
Employment due to death or Disability, the Optionee's Option will be immediately
exercisable in full upon the date of the Termination of Employment.

         5.4 EXERCISE OF OPTIONS. Each Option shall be exercised by the delivery
of written notice to the Committee setting forth the number of shares of Common
Stock with respect to which the Option is to be exercised, together with: (a)
cash, certified check, bank draft or postal or express money order payable to
the order of the Company for an amount equal to the exercise price under the
Option, (b) Mature Shares with a Fair Market Value on the date of exercise equal
to the exercise price under the Option, (c) an election to make a cashless
exercise through a registered broker-dealer (if approved in advance by the
Committee) or (d) except as specified below, any other form of payment which is
acceptable to the Committee, and specifying the address to which the
certificates for the shares are to be mailed. As promptly as practicable after
receipt of written notification and payment, the Company shall deliver to the
Optionee certificates for the number of shares with respect to which the Option
has been exercised, issued in the Optionee's name. If Mature Shares are used for
payment by the Optionee, the aggregate Fair Market Value of the shares of Common
Stock tendered must be equal to or less than the aggregate exercise price of the
shares being purchased upon exercise of the Option, and any difference must be
paid by cash, certified check, bank draft or postal or express money order
payable to the order of the Company. Delivery of the shares shall be deemed
effected for all purposes when a stock transfer agent of the Company shall have
deposited the certificates in the United States mail, addressed to the Optionee,
at the address specified by the Optionee.

         Whenever an Option is exercised by exchanging Mature Shares owned by
the Optionee, the Optionee shall deliver to the Company certificates registered
in the name of the Optionee representing a number of shares of Common Stock
legally and beneficially owned by the Optionee, free of all liens, claims and
encumbrances of every kind, accompanied by stock powers duly endorsed in blank
by the record holder of the shares represented by the certificates (with
signature guaranteed by a commercial bank or trust company or by a brokerage
firm having a membership on a registered national stock exchange). The delivery
of certificates upon the exercise of Options is subject to the condition that
the person exercising the Option provide the Company with the information the

                                       -6-

<PAGE>   7

Company might reasonably request pertaining to exercise, sale or other
disposition.

         The Committee may permit an Optionee to elect to pay the exercise price
upon exercise of an Option by authorizing a third-party broker to sell all or a
portion of the shares of Common Stock acquired upon exercise of the Option and
remit to the Company a sufficient portion of the sale proceeds to pay the
exercise price and any applicable tax withholding resulting from such exercise.

         The Committee shall not permit an Optionee to pay his exercise price
upon the exercise of an Option by having the Company reduce the number of shares
of Common Stock that will be delivered to the Optionee pursuant to the exercise
of the Option. In addition, the Committee shall not permit an Optionee to pay
his exercise price upon the exercise of an Option by using shares of Common
Stock other than Mature Shares.

         An Option may not be exercised for a fraction of a share of Common
Stock.

         5.5 SUBSTITUTION OPTIONS. Options may be granted under the Plan from
time to time in substitution for stock options held by employees of other
corporations who are about to become employees of or affiliated with the Company
or any Subsidiary as the result of a merger or consolidation of the employing
corporation with the Company or any Subsidiary, or the acquisition by the
Company or any Subsidiary of the assets of the employing corporation, or the
acquisition by the Company or any Subsidiary of stock of the employing
corporation as the result of which it becomes a Subsidiary. The terms and
conditions of the substitute Options granted may vary from the terms and
conditions set out in the Plan to the extent the Committee, at the time of
grant, may deem appropriate to conform, in whole or in part, to the provisions
of the stock options in substitution for which they are granted.

         5.6 NO RIGHTS AS STOCKHOLDER. No Optionee shall have any rights as a
stockholder with respect to Common Stock covered by his Option until the date a
stock certificate is issued for the Common Stock.

                                   ARTICLE VI

                                 ADMINISTRATION

         The Plan shall be administered by the Committee. All questions of
interpretation and application of the Plan and Options shall be subject to the
determination of the Committee. A majority of the members of the Committee shall
constitute a quorum. All determinations of the Committee shall be made by a
majority of its members. Any decision or determination reduced to writing and
signed by a majority of the members shall be as effective as if it had been made
by a majority vote at a meeting properly called and held. In carrying out its
authority under the Plan, the Committee shall have full and final authority and
discretion, including but not limited to the following rights, powers and
authorities, to:

                  (a) determine the persons to whom and the time or times at
         which Options will be granted;

                  (b) determine the number of shares of Common Stock covered by
         each Option;

                                       -7-

<PAGE>   8

                  (c) determine the terms, provisions and conditions of each
         Option, which need not be identical;

                  (d) accelerate the time at which any outstanding Option may be
         exercised;

                  (e) prescribe, amend and rescind rules and regulations
         relating to administration of the Plan; and

                  (f) make all other determinations and take all other actions
         deemed necessary, appropriate or advisable for the proper
         administration of the Plan.

The actions of the Committee in exercising all of the rights, powers, and
authorities set out in this Article and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive and
binding on all parties.

                                  ARTICLE VII

                        AMENDMENT OR TERMINATION OF PLAN

         The Board or the Committee may amend, terminate or suspend the Plan at
any time, in its sole and absolute discretion.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         8.1 NO ESTABLISHMENT OF A TRUST FUND. No property shall be set aside
nor shall a trust fund of any kind be established to secure the rights of any
Optionee under the Plan. All Optionees shall at all times rely solely upon the
general credit of the Company for the payment of any benefit which becomes
payable under the Plan.

         8.2 NO EMPLOYMENT OBLIGATION. The granting of any Option shall not
constitute an employment contract, express or implied, nor impose upon the
Company or any Subsidiary any obligation to employ or continue to employ, or
utilize the services of, any Optionee. The right of the Company or any
Subsidiary to terminate the employment of any person shall not be diminished or
affected by reason of the fact that an Option has been granted to him.

         8.3 FORFEITURE. Notwithstanding any other provisions of the Plan, if
the Committee finds by a majority vote after full consideration of the facts
that the Optionee, before or after termination of his employment relationship
with the Company or a Subsidiary for any reason committed or engaged in willful
misconduct, gross negligence, a breach of fiduciary duty, fraud, embezzlement,
theft, a felony, a crime involving moral turpitude or proven dishonesty in the
course of his employment by the Company or a Subsidiary, which conduct damaged
the Company or Subsidiary, the Optionee shall forfeit all outstanding Options,
and all exercised Options if the Company has not yet delivered a stock
certificate to the Optionee with respect thereto. The decision of the Committee
as to the cause of the Optionee's discharge, the damage

                                       -8-

<PAGE>   9

done to the Company or a Subsidiary shall be final. No decision of the
Committee, however, shall affect the finality of the discharge of the Optionee
by the Company or a Subsidiary in any manner.

         8.4 TAX WITHHOLDING. The Company or any Subsidiary shall be entitled to
deduct from other compensation payable to each Optionee any sums required by
federal, state or local tax law to be withheld with respect to the grant or
exercise of an Option, or lapse of restrictions on Restricted Common Stock. In
the alternative, the Company may require the Optionee to pay such sums for taxes
directly to the Company or any Subsidiary in cash or by check within ten days
after the date of exercise or lapse of restrictions. In the discretion of the
Committee, and with the consent of the Optionee, the Company may reduce the
number of shares of Common Stock issued to the Optionee upon his exercise of an
Option to satisfy the tax withholding obligations of the Company or a
Subsidiary; provided that the Fair Market Value of the shares held back shall
not exceed the Company's or the Subsidiary's minimum statutory withholding tax
obligations. The Company shall have no obligation upon exercise of any Option
until the Company or a Subsidiary has received payment sufficient to cover all
tax withholding amounts due with respect to that exercise. Neither the Company
nor any Subsidiary shall be obligated to advise an Optionee of the existence of
the tax or the amount which it will be required to withhold.

         8.5 WRITTEN AGREEMENT. Each Option shall be embodied in a written
agreement which shall be subject to the terms and conditions of the Plan and
shall be signed by the Optionee and by a member of the Committee or an executive
officer of the Company on behalf of the Company. The agreement may contain any
other provisions that the Committee in its discretion shall deem advisable which
are not inconsistent with the terms of the Plan.

         8.6 GENDER. If the context requires, words of one gender when used in
the Plan shall include the other and words used in the singular or plural shall
include the other.

         8.7 HEADINGS. Headings of Articles and Sections are included for
convenience of reference only and do not constitute part of the Plan and shall
not be used in construing the terms of the Plan.

         8.8 OTHER COMPENSATION PLANS. The adoption of the Plan shall not affect
any other stock option, incentive or other compensation or benefit plans in
effect for the Company or any Subsidiary, nor shall the Plan preclude the
Company from establishing any other forms of incentive compensation arrangements
for Employees.

         8.9 OTHER OPTIONS. The grant of an Option shall not confer upon an
Optionee the right to receive any future or other Options under the Plan,
whether or not Options may be granted to similarly situated Employees, or the
right to receive future Options upon the same terms or conditions as previously
granted.

         8.10 GOVERNING LAW. The provisions of the Plan shall be construed,
administered and governed under the laws of the State of Texas.

                                      -9-
<PAGE>   10
                                   SCHEDULE A

                                DEFINITIONS FOR:
     VERITAS DGC INC. RESTRICTED STOCK PLAN, VERITAS DGC INC. 1992 EMPLOYEE
  NON-QUALIFIED STOCK OPTION PLAN, VERITAS DGC INC. 1992 NON-EMPLOYEE DIRECTOR
  STOCK OPTION PLAN, VERITAS DGC INC. 2001 EMPLOYEE NON-QUALIFIED STOCK OPTION
       PLAN, AND VERITAS DGC INC. 2001 KEY EMPLOYEE RESTRICTED STOCK PLAN

(a)      2001 RESTRICTED STOCK PLAN. The Veritas DGC Inc. 2001 Key Employee
         Restricted Stock Plan.

(b)      AUTHORIZED OFFICER. The Chairman of the Board, the Chief Executive
         Officer of the Company, an Executive Vice President of the Company, the
         Vice President of Human Resources, and any other officer of the Company
         who has been delegated the authority by the Committee to execute a
         Restricted Stock Agreement or Option Agreement for and on behalf of the
         Company. No officer shall be an Authorized Officer with respect to any
         Restricted Stock Agreement or Option Agreement for himself or herself

(c)      BOARD. The Board of Directors of the Company.

(d)      CAUSE. When used in connection with termination of Employment as
         determined by the Chairman or Committee, "Cause" shall mean the
         Employee's willfully engaging in conduct materially and demonstrably
         injurious to the property of business of Employer, including, without
         limitation, fraud, misappropriation of funds or other property of
         Employer, other willful misconduct, gross negligence or commission of a
         felony or other crime of moral turpitude.

(e)      CASH EXERCISE. Form of exercise of an Option in which the Option Price
         for the number of Shares of Common Stock being purchased is paid with
         cash, certified check, bank draft, or postal or express money order
         payable to the order of the Company for an amount equal to the Option
         Price of the Shares.

(f)      CASHLESS EXERCISE. Form of exercise of an Option in which the Option
         Price for the number of shares of Common Stock being purchased is paid
         with consideration in the form of Common Stock at is Fair Market Value
         on the date of exercise, an election to have Shares of Common Stock,
         which otherwise would be issued on exercise, withheld in payment of the
         exercise price and/or to satisfy any required income tax withholding
         obligation, or any combination of cash and cashless exercise and/or any
         other form of payment which is acceptable to the Committee.

(g)      CHANGE IN CONTROL. The occurrence of any of the following events:

         (1)      The acquisition by an individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a
                  "Person") of beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of fifty

<PAGE>   11

                  percent (50%) or more of the total voting power of all the
                  Company's then outstanding securities entitled to vote
                  generally in the election of Directors to the Board; provided,
                  however, that for purposes of this subsection (1), the
                  following acquisitions shall not constitute a Change in
                  Control: (i) any acquisition by the Company or its Parent or
                  Subsidiaries, (ii) any acquisition by any Employee benefit
                  plan (or related trust) sponsored or maintained by the Company
                  or its Parent or Subsidiaries, or (iii) any acquisition
                  consummated with the prior approval of the Board; or

         (2)      During the period of two consecutive calendar years,
                  individuals who at the beginning of such period constitute the
                  Board, and any new Directors whose election by the Board or
                  nomination for election by the Company's shareholders was
                  approved by a vote of at least two-thirds of the Directors
                  then still in office, who either were Directors at the
                  beginning of the two-year period or whose election or
                  nomination for election was previously so approved, cease for
                  any reason to constitute a majority of the Board; or

         (3)      The Company becomes a party to a merger, plan of
                  reorganization, consolidation or share exchange in which
                  either (i) the Company will not be the surviving corporation
                  or (ii) the Company will be the surviving corporation and any
                  outstanding Shares of the Company's Common Stock will be
                  converted into shares of any other company (other than a
                  re-incorporation or the establishment of a holding company
                  involving no change of ownership of the Company) or other
                  securities, cash or other property (excluding payments made
                  solely for fractional Shares; or

         (4)      The shareholders of the Company approve a merger, plan of
                  reorganization, consolidation or share exchange with any other
                  corporation, and immediately following such merger, plan of
                  reorganization, consolidation or share exchange the holders of
                  the voting securities of the Company outstanding immediately
                  prior thereto hold securities representing fifty percent (50%)
                  or less of the combined voting power of the voting securities
                  of the Company or such surviving entity outstanding
                  immediately after such merger, plan of reorganization,
                  consolidation or share exchange; provided, however, that
                  notwithstanding the foregoing, no Change in Control shall be
                  deemed to have occurred if one-half ( 1/2) or more of the
                  members of the Board of the Company or such surviving entity
                  immediately after such merger, plan of reorganization,
                  consolidation or share exchange is comprised of persons who
                  served as Directors of the Company immediately prior to such
                  merger, plan of reorganization, consolidation or share
                  exchange or who are otherwise designees of the Company; or

         (5)      Upon approval by the Company's shareholders of a complete
                  liquidation and dissolution of the Company or the sale or
                  other disposition of all or substantially all of the assets of
                  the Company other than to a Parent or Subsidiary; or
<PAGE>   12

         (6)      Any other event that a majority of the Board, in its sole
                  discretion, shall determine constitutes a Change in Control.

Notwithstanding the occurrence of any of the foregoing events of this Section
(g) which would otherwise result in a Change in Control, the Board may determine
in its complete discretion, if it deems it to be in the best interest of the
Company, that an event or events otherwise constituting a Change in Control
shall not be considered a Change in Control. Such determination shall be
effective only if it is made by the Board prior to the occurrence of an event
that otherwise would be a Change in Control, or after such event if made by the
Board a majority of which is composed of Directors who were members of the Board
immediately prior to the event that otherwise would be a Change in Control.

(h)      CODE. The Internal Revenue Code of 1986, as amended.

(i)      COMMITTEE. The Compensation Committee of the Board.

(j)      COMMON STOCK. The common stock of the Company, $.01 par value per
         share, or, in the event that the outstanding shares of common stock are
         later changed into or exchanged for a different class of stock or
         securities of the Company or another corporation, that other stock or
         security.

(k)      COMPANY. Veritas DGC Inc., a Delaware corporation.

(l)      COVERED EMPLOYEE. Any individual who, on the last day of the taxable
         year, is (a) the chief executive officer of the Company or is acting in
         such capacity; or (b) among the four highest compensated officers
         (other than the chief executive officer) as each are defined under the
         regulation promulgated under Section 162(m) of the Code

(m)      DIRECTOR. An individual elected by the shareholders/stockholders of the
         Company, or in the case of a vacancy or newly created position, by the
         other Directors, to serve on the Board who performs the functions of a
         director set forth in the Company's charter documents and bylaws.

(n)      DISABILITY. As determined by the Committee in its discretion exercised
         in good faith, a physical or mental condition of the Participant that
         would entitle him to payment of disability income payments under the
         Company's long-term disability insurance policy or plan for employees
         as then in effect; or in the event that the Participant is not covered,
         for whatever reason, under the Company's long-term disability insurance
         policy or plan or in the event the Company does not maintain such a
         long-term disability insurance policy, "Disability" means a permanent
         and total disability as defined in section 22(e)(3) of the Code. A
         determination of Disability may be made by a physician selected or
         approved by the Committee and, in this respect, the Grantee shall
         submit to an examination by such physician upon request by the
         Committee.

(o)      EMPLOYEE. A person employed by the Company or a Subsidiary as a common
         law employee.
<PAGE>   13

(p)      EMPLOYMENT. Employment by the Company (or any Parent or Subsidiary), or
         by any corporation issuing or assuming an Incentive Award in any
         transaction described in Section 424(a) of the Code, or by a parent
         corporation or a subsidiary corporation of such corporation issuing or
         assuming such Incentive Award, as the parent-subsidiary relationship
         shall be determined at the time of the corporate action described in
         Section 424(a) of the Code. In this regard, neither the transfer of a
         Grantee from Employment by the Company to Employment by any Parent or
         Subsidiary, nor the transfer of a Grantee from Employment by any Parent
         or Subsidiary to Employment by the Company, shall be deemed to be a
         termination of Employment of the Grantee. Moreover, the Employment of a
         Grantee shall not be deemed to have been terminated because of an
         approved leave of absence from active Employment on account of
         temporary illness, authorized vacation or granted for reasons of
         professional advancement, education, health, or government service, or
         during military leave for any period (if the Grantee returns to active
         Employment within 90 days after the termination of military leave), or
         during any period required to be treated as a leave of absence by
         virtue of any applicable statute, Company personnel policy or
         agreement. Whether an authorized leave of absence shall constitute
         termination of Employment hereunder shall be determined by the
         Committee in its discretion.

(q)      EXCHANGE ACT. The Securities Exchange Act of 1934, as amended.

(r)      EXERCISABILITY. The ability to convert an Option into the underlying
         Shares of Common Stock through their purchase or other acquisition.

(s)      EXERCISE. The transaction in which an Optionee elects to purchase some
         or all of the Shares of Common Stock underlying an Option.

(t)      EXERCISE PRICE. The consideration in money or property that, pursuant
         to the terms of an Option Agreement, is the price at which the Shares
         of Common Stock subject to an Option may be purchased. The exercise
         price is typically expressed on a per share basis.

(u)      EXPIRATION DATE.  The last date on which an Option may be exercised by
         an Optionee.

(v)      FAIR MARKET VALUE. The Fair Market Value of one share of Common Stock
         shall be the last reported sale price for the Common Stock on the
         principal stock exchange on which the Common Stock is traded on the
         business day immediately preceding the date for which the Fair Market
         Value is being determined.

(w)      GRANTEE. Any Employee who is granted an Incentive Award under the Plan.

(x)      INCENTIVE AWARD. A grant of Restricted Stock made to a Grantee under
         the Restricted Stock Plan or the 2001 Restricted Stock Plan.

(y)      INSIDER. An individual who is, on the relevant date, an officer,
         director or ten percent (10%) beneficial owner of any class of the
         Company's equity securities that is registered
<PAGE>   14

         pursuant to Section 12 of the Exchange Act, all as defined under
         Section 16 of the Exchange Act.

(z)      MATURE SHARES. Shares of Stock that the Optionee has held for at least
         six months.

(aa)     NYSE. The New York Stock Exchange, Inc.

(bb)     NONQUALIFIED STOCK OPTION. An Option that is not intended to satisfy
         the requirements of a statutory stock option under Section 422 of the
         Code. This type of stock option gives rise to federal income tax
         consequences on the date of exercise.

(cc)     OPTION. An option granted under the respective Plan to purchase shares
         of Common Stock.

(dd)     OPTION AGREEMENT. A written contract setting forth the terms and
         conditions of an Option.

(ee)     OPTION PRICE. The consideration in money or Common Stock which,
         pursuant to the terms of an Option Agreement, is the price at which the
         Shares of Common Stock subject to an Option may be purchased.

(ff)     OPTIONEE. The recipient of an Option.

(gg)     OUTSTANDING OPTION. An Option that has been formally granted by a
         corporation and is not cancelled, exercised or expired.

(hh)     PARENT. Any corporation (whether now or hereafter existing) which
         constitutes a "parent" of the Company, as defined in Section 424(e) of
         the Code.

(ii)     PARTICIPANT. An Optionee or the recipient of Restricted Stock.

(jj)     PERFORMANCE-BASED EXCEPTION. The Performance-Based Exception from the
         tax deductibility limitations of Section 162(m) of the Code, as
         prescribed in Code Section 162(m) and Treasury Regulation Section
         1.162-27(e) (or its successor).

(kk)     PLAN. The Veritas DGC Inc. Restricted Stock Plan, the Employee
         Non-qualified Stock Option Plan, the Non-employee Director Stock Option
         Plan, the Veritas DGC Inc. 2001 Key Employee Nonqualified Stock Option
         Plan and the Veritas DGC Inc. 2001 Key Employee Restricted Stock Plan
         as set forth in their respective plan documents and as they may be
         amended from time to time.

(ll)     RESTRICTED STOCK. Shares of Common Stock issued or transferred to a
         Grantee pursuant to the Restricted Stock Plan or the 2001 Restricted
         Stock Plan.
<PAGE>   15

(mm)     RESTRICTED STOCK AGREEMENT. The written agreement entered into between
         the Company and the Grantee setting forth the terms and conditions
         pursuant to which a Restricted Stock Award is granted.

(nn)     RESTRICTED STOCK AWARD. An authorization by the Committee to issue or
         transfer Restricted Stock to a Grantee.

(oo)     RESTRICTION PERIOD. The period of time determined by the Committee and
         set forth in the Restricted Stock Agreement during which the transfer
         of Restricted Stock by the Grantee is restricted.

(pp)     RETIREMENT. The occurrence of the Participant's voluntary Termination
         of Employment after (a) he has attained the age of 62 and completed ten
         years of employment with the Company and/or any of its Subsidiaries, or
         (b) he has attained such other retirement age as may be specified in
         the Participant's Restricted Stock Agreement or Option Agreement.

(qq)     RULE 144. Rule promulgated by the Securities and Exchange Commission as
         a "safe harbor" for the resale of "restricted securities" (that is,
         securities that were acquired other than in a public offering), and
         "control securities" (that is, securities owned by affiliates of the
         corporation).

(rr)     RULE 16b. Provision of the Exchange Act that requires the directors and
         officers of an issuer that has registered a class of its equity
         securities under Section 12, as well as the beneficial owners of more
         than 10% of any class of the issuer's registered equity securities, to
         turn over to the issuer any profits realized from the purchase and
         sale, and purchase of the issuer's equity securities within a period of
         less than six months.

(ss)     SECURITIES AND EXCHANGE COMMISSION (SEC). Agency of the federal
         government created under the Exchange Act that administers the federal
         laws regulating the offer and sale of Securities in the United States.

(tt)     SHARE. A share of the Common Stock of the Company.

(uu)     SHARE POOL. The number of Shares authorized for issuance under Section
         1.4 of the Veritas DGC Inc. Restricted Stock Plan, Section 3 of the
         Veritas DGC Inc. Employee Non-qualified Stock Option Plan, and Section
         4 of the Veritas DGC Inc. Non-employee Director Stock Option Plan, as
         adjusted for awards and payouts under Section 1.5 of the Restricted
         Stock Plan and as adjusted for changes in corporate capitalization
         under Section 3.5 of the Restricted Stock Plan, Section 12 of the
         Employee Non-qualified Stock Option Plan, and Section 17 of the
         Non-employee Director Stock Option Plan.

(vv)     SUBSIDIARY OR SUBSIDIARIES. Any corporation other than the Company
         (whether now or hereafter existing) in an unbroken chain of
         corporations beginning with the Company if, at the time of the action
         or transaction, each of the corporations other than the last
<PAGE>   16

         corporation in the unbroken chain owns stock possessing 50% or more of
         the total combined voting power of all classes of stock in one of the
         other corporations in the chain.

(ww)     TERMINATION OF EMPLOYMENT. The termination of a Participant's status as
         a common law employee of the Company or a Subsidiary unless the
         Participant immediately thereafter is hired as a common law employee of
         a different employer that is the Company or a Subsidiary.

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