Document:

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                                                                    EXHIBIT 10-Q

                                VERITAS DGC INC.

                           DEFERRED COMPENSATION PLAN

                                                                    REV. 2/25/00

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                                VERITAS DGC INC.

                           DEFERRED COMPENSATION PLAN

                                TABLE OF CONTENTS

                                                                     Section
ARTICLE I -- DEFINITIONS

         Account........................................................1.1
         Beneficiary....................................................1.2
         Board of Directors.............................................1.3
         Code...........................................................1.4
         Company........................................................1.5
         Company Discretionary Accrual..................................1.6
         Company Discretionary Match....................................1.7
         Compensation...................................................1.8
         Committee......................................................1.9
         Deferral......................................................1.10
         Deferred Compensation Ledger..................................1.11
         Disability....................................................1.12
         ERISA.........................................................1.13
         Investment Fund...............................................1.14
         Participant...................................................1.15
         Plan..........................................................1.16
         Plan Year.....................................................1.17
         Retirement....................................................1.18
         Trust.........................................................1.19
         Valuation Date................................................1.20

ARTICLE II - ELIGIBILITY

ARTICLE III - DEFERRALS AND BENEFIT ACCRUALS

         Deferral Election..............................................3.1
         Company Discretionary Match Accrual............................3.2
         Company Discretionary Accrual..................................3.3

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ARTICLE IV - ACCOUNT

         Establishing a Participant's Account...............................4.1
         Deferral Account...................................................4.2
         Company Discretionary Match Account................................4.3
         Company Discretionary Accrual Account..............................4.4
         Crediting of Interest..............................................4.5

ARTICLE V - VESTING

         Deferrals..........................................................5.1
         Company Discretionary Match and Company Discretionary Accruals.....5.2

ARTICLE VI -  DISTRIBUTIONS

         Death..............................................................6.1
         Disability.........................................................6.2
         Retirement.........................................................6.3
         Termination Prior to Death, Disability or Retirement...............6.4
         Responsibility for Distributions and
           Withholding of Taxes.............................................6.5
         Distribution Determination Date....................................6.6

ARTICLE VII  - ADMINISTRATION

         Committee Appointment..............................................7.1
         Committee Organization and Voting..................................7.2
         Powers of the Committee............................................7.3
         Committee Discretion...............................................7.4
         Annual Statements..................................................7.5
         Reimbursement of Expenses..........................................7.6

ARTICLE VIII - AMENDMENT AND/OR TERMINATION

         Amendment or Termination of the Plan...............................8.1
         No Retroactive Effect on Awarded Benefits..........................8.2
         Effect of Termination..............................................8.3

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ARTICLE IX - PAYMENT

         Payments Under This Agreement Are the Obligation
           of the Company..................................................9.1
         Payments May Be Made to a Rabbi Trust.............................9.2
         Participants Must Rely Only on General
            Credit of the Company..........................................9.3
         Plan Unfunded.....................................................9.4

ARTICLE X - MISCELLANEOUS

         Limitation of Rights.............................................10.1
         Distributions to Incompetents or Minors..........................10.2
         Nonalienation of Benefits........................................10.3
         Reliance Upon Information .......................................10.4
         Severability.....................................................10.5
         Notice...........................................................10.6
         Gender and Number................................................10.7
         Governing Law....................................................10.8
         Effective Date...................................................10.9

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                                VERITAS DGC INC.

                           DEFERRED COMPENSATION PLAN

            WHEREAS, Veritas DGC Inc. desires to adopt a deferred compensation
plan for a select group of management and highly compensated employees;

            NOW, THEREFORE, Veritas DGC Inc. hereby establishes the Veritas DGC
Inc. Deferred Compensation Plan effective on January 1, 2001, the terms of which
are set forth in this document as it may be amended from time to time.

                                    ARTICLE I

                                   DEFINITIONS

            1.1 "ACCOUNT" means all ledger accounts pertaining to a Participant
which are maintained by the Committee to reflect the amount of deferred
compensation due the Participant. The Committee shall establish the following
Accounts and any additional Accounts that the Committee considers necessary.

                  (a) Deferral Account - The Participant's deferral, if any,
            between one percent and 50 percent of his base Compensation and the
            Participant's deferral, if any, between one percent and 100 percent
            of any incentive bonus or commission paid to the Participant.

                  (b) Company Discretionary Match Account - The Company's
            discretionary match, if any, equal to a percentage of the
            Participant's Deferral.

                  (c) Company Discretionary Accrual Account - The Company's
            discretionary contribution, if any, equal to a percentage of the
            Participant's Compensation.

                 1.2 "BENEFICIARY" means a person or entity designated by the
Participant under the terms of the Plan to receive a payment under the Plan upon
the death of the Participant.

                  1.3 "BOARD OF DIRECTORS" means the Board of Directors of the
Company.

                  1.4 "CODE" means the Internal Revenue Code of 1986, as amended
from time to time.

                  1.5 "COMPANY" means Veritas DGC Inc.

                  1.6 "COMPANY DISCRETIONARY ACCRUAL" means the discretionary
accrual, if any, which the Company accrues with respect to the Participant's
Compensation during a Plan Year.

                  1.7 "COMPANY DISCRETIONARY MATCH" means the discretionary
match, if any, which the Company accrues with respect to the amount deferred
during a Plan Year by a Participant under the Plan.

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                  1.8 "COMPENSATION" means remuneration paid to a Participant by
the Company during the portion of the Plan Year in which he is eligible to
participate in the Plan, or that would have been paid to a Participant during
the Plan Year by the Company but for the Participant's election to make a
Deferral under the Plan or his deferrals under a cash or deferred arrangement
described in section 401(k) of the Code or a cafeteria plan described in section
125 of the Code, including and limited to regular base pay as determined by the
Committee in its sole discretion, commissions, merit and incentive bonuses
(other than bonuses paid by the Company with respect to services for a
predecessor employer that has not adopted the Plan or with respect to services
performed by the Participant prior to his employment by the Company, as
determined by the Committee in its sole discretion), excluding however, car
allowance payments, and short-term disability pay.

                  1.9 "COMMITTEE" means the persons who are from time to time
serving as members of the committee administering the Plan.

                  1.10 "DEFERRAL" means the amount of Compensation deferred
under a deferral election made by a Participant under Section 3.1.

                  1.11 "DEFERRED COMPENSATION LEDGER" means the ledger
maintained by the Committee for each Participant which reflects the amount of
Compensation deferred by the Participant under the Plan, Company Discretionary
Match and the Company Discretionary Accrual provided under the Plan, and the
amount of earnings and losses credited on each of these amounts.

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                  1.12 "DISABILITY" means a physical or mental condition that in
the discretion of the Committee would entitle the Participant to payment of
disability income payments under the Company's disability programs. The
Committee's determination of a Participant's Disability shall be in its sole
discretion and shall be final.

                  1.13 "ERISA" means the Employee Retirement Income Security Act
of 1974, as amended.

                  1.14 "INVESTMENT FUND" means a mutual fund or other investment
option that is designated by the Committee for purposes of determining the
amount of the Company's deferred compensation obligation to a Participant under
the Plan.

                  1.15 "PARTICIPANT" means an employee of a Company who is
eligible to participate in the Plan.

                  1.16 "PLAN" means the Veritas DGC Inc. Deferred Compensation
Plan set out in this document, as amended from time to time.

                  1.17 "PLAN YEAR" means a one-year period which coincides with
the calendar year.

                  1.18 "RETIREMENT" means the voluntary termination of
employment with the Company at or after attaining age 62 with at least 10 years
of service with the Company.

                  1.19 "TRUST" means the Veritas DGC Inc. Deferred Compensation
Trust.

                  1.20 "VALUATION DATE" means the end of each calendar quarter
unless the Committee selects another date.

                                   ARTICLE II

                                   ELIGIBILITY

                  The employees eligible to participate in the Plan include the
key employees of the Company, who are in a select group of management or are
highly compensated employees, as determined by the Committee. The Committee
shall notify each Participant of his eligibility to participate in the Plan.
Each Participant in the Plan during a Plan Year shall continue to participate in
the Plan unless the Committee shall have notified the Participant that he will
not be eligible to participate in the Plan. A former Participant who has been
notified that he will no longer participate in the Plan, but who remains in the
employ of the Company, shall retain the balance in his Accounts under the terms
of the Plan, but he shall not make additional deferrals under Section 3.1 and no
additional amounts shall be credited to his Accounts under Sections 4.3 and 4.4
during the periods in which he is not a Participant.

                                   ARTICLE III

                             DEFERRALS AND ACCRUALS

                  3.1 DEFERRAL ELECTION. A Participant may elect, within 30 days
of notification that he is eligible to participate in the Plan, the percentage,
if any, of his Compensation to be earned during the ensuing Plan Year, that is
to be deferred under the Plan. A Participant may defer a

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minimum of one percent but not more than 50 percent of his base Compensation for
the Plan Year and may defer a minimum of one percent and a maximum of 100
percent of any incentive bonus or commissions to be paid to the Participant for
the Plan Year. Prior to the election period the Committee shall notify all
eligible Participants of their right to make a deferral election. Once an
election has been made as to the percentage to be deferred, it becomes
irrevocable for the Plan Year. The election to defer a percentage of
Compensation shall be effective only upon the timely receipt by the Committee of
the Participant's percentage deferral election on such form as will be
determined by the Committee from time to time. Except with respect to the
election by a newly eligible Participant as described above, if the Committee
fails to receive a properly filed election form on or prior to the beginning of
the Plan Year or Years to which the election applies, revoking or modifying a
prior election, the prior election shall remain in effect. If a timely election
form is not received, the Participant shall be deemed to have elected not to
defer any part of his Compensation for that Plan Year. An election to defer for
one Plan Year shall remain effective for subsequent Plan Years until modified or
revoked in accordance with this Section 3.1.

                  3.2 COMPANY DISCRETIONARY MATCH ACCRUAL. Each Plan Year the
Company may, in its sole discretion, credit the Company Discretionary Match
Account of each Participant who elects to defer a portion of his Compensation
under the Plan with an amount to be determined by the Company.

                  3.3 COMPANY DISCRETIONARY ACCRUAL. Each Plan Year the Company
may, in its sole discretion, credit the Company Discretionary Accrual Account of
each Participant in the Plan with an amount equal to a percentage of the
Participant's Compensation.

                                   ARTICLE IV

                                     ACCOUNT

                 4.1 ESTABLISHING A PARTICIPANT'S ACCOUNT. The Committee shall
establish an Account for each Participant in a special Deferred Compensation
Ledger which shall be maintained by the Company. The Account shall reflect the
amount of the Company's obligation to the Participant at any given time.

                 4.2 DEFERRAL ACCOUNT. The amount deferred by a Participant, if
any, shall be credited to each Participant's Deferral Account as of the last day
of each month in which the Participant would have received the amount deferred
but for his election to defer.

                 4.3 COMPANY DISCRETIONARY MATCH ACCOUNT. The Company
Discretionary Match, if any, shall be credited to each Participant's Company
Discretionary Match Account coincident with the crediting of the Participant's
Deferral to the Participant's Deferral Account.

                 4.4 COMPANY DISCRETIONARY ACCRUAL ACCOUNT. The Company
Discretionary Accrual, if any, shall be credited to each Participant's Company
Discretionary Accrual Account as of the last day of the Plan Year for the
accrual attributable to Compensation paid during that Plan Year.

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                 4.5 CREDITING OF INTEREST. As part of a Participant's total
benefit under the Plan, each Participant's Account shall be credited with
earnings (or losses) equal to the amount which is deemed to be earned on his
bookkeeping Account established to enable the Company to determine its
obligations under the Plan. Each Valuation Date the Committee or its delegate
will determine the amount of earnings (or losses) to be allocated to a
Participant's Account and will credit that amount to the Participant's Account.
For the purpose of determining the earnings (or losses) to be credited to the
Participant's Account, the Committee shall assume that the Participant's Account
is invested in units or shares of the Investment Funds in the proportions
selected by the Participant in accordance with procedures established by the
Committee. This amount accrued by the Committee as additional deferred
compensation shall be a part of the Company's obligation to the Participant and
payment of it shall be a general obligation of the Company. Earnings (or losses)
will continue to be credited to a Participant's Account each Valuation Date
until his entire benefit due under the Plan has been paid in full. The
determination of interest based on the income and appreciation of the
Participant's Account shall in no way affect the ability of the general
creditors of the Company to reach the assets of the Company in the event of the
insolvency or bankruptcy of the Company or place the Participants in a secured
position ahead of the general creditors of the Company. Although a Participant's
investment selections made in accordance with the terms of the Plan and such
procedures as may be established by the Committee shall be relevant for purposes
of determining the Company's obligation to the Participant under the Plan, there
is no requirement that any assets of the Company shall be invested in accordance
with the Participant's investment selections.

                                    ARTICLE V

                                     VESTING

                  5.1 DEFERRALS. A Participant shall have a 100 percent
nonforfeitable interest in his Deferrals under the Plan at all times. A
Participant will also have a 100 percent nonforfeitable interest in any increase
in the Deferral as a result of the crediting of interest in accordance with
Section 4.5 after his Deferral has been initially credited.

                  5.2 COMPANY DISCRETIONARY MATCH AND COMPANY DISCRETIONARY
ACCRUAL. Upon his termination of employment, Retirement, death or Disability
while employed with the Company, a Participant will have a 100 percent
nonforfeitable interest in the Company Discretionary Match and Company
Discretionary Accrual credited to his Account together with any increase in the
accruals as a result of the crediting of interest in accordance with Section 4.5
after they have been initially credited.

                                   ARTICLE VI

                                  DISTRIBUTIONS

                  6.1 DEATH. Upon the death of a Participant, his Beneficiary or
Beneficiaries shall receive the value of the amounts credited to the
Participant's Accounts in the Deferred Compensation Ledger determined under
Section 6.6, the distribution shall be made in one lump sum payment in cash. The
distribution shall be made within 30 days after the Participant's death.

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                  Each Participant, upon notification of his participation in
the Plan, shall file with the Committee a designation of a Beneficiary or
Beneficiaries to whom distributions otherwise due the Participant shall be made
in the event of his death prior to the distribution of the amount credited to
his Accounts in the Deferred Compensation Ledger. The designation will be
effective upon receipt by the Committee of a properly executed form which the
Committee has approved for that purpose. The Participant may from time to time
revoke or change any designation of Beneficiary by filing another approved
Beneficiary designation form with the Committee. If there is no valid
designation of Beneficiary on file with the Committee at the time of the
Participant's death, or if all of the Beneficiaries designated in the last
Beneficiary designation have predeceased the Participant or otherwise ceased to
exist, the Beneficiary will be the Participant's spouse, if the spouse survives
the Participant, or otherwise the Participant's estate. Any Beneficiary
designation which designates any person or entity other than the Participant's
spouse must be consented to in writing by the spouse in a form acceptable to the
Committee in order to be effective.

                  6.2 DISABILITY. Upon the Disability of a Participant, the
Participant shall receive the value of the amounts credited to the Participant's
Accounts in the Deferred Compensation Ledger determined under Section 6.6, and
the distribution shall be made in one lump sum payment in cash. The distribution
shall be made within 30 days after the Participant becomes disabled.

                  6.3 RETIREMENT. Upon the Retirement of a Participant as
defined in Section 1.18, the Participant shall receive the value of the amounts
credited to his Accounts in the Deferred Compensation Ledger determined under
Section 6.6, and the distribution shall be made in one lump sum payment or over
a 3- or 5-year period, according to the Participant's retirement distribution
election form completed upon entry into the Plan. If a lump sum payment is made,
the distribution shall be made within 30 days after the Participant's
Retirement.

                  6.4 TERMINATION PRIOR TO DEATH, DISABILITY OR RETIREMENT. Upon
a Participant's termination from the employ of the Company prior to his death,
Disability or Retirement, the Participant shall receive the portion of the
amount credited to his Accounts in the Deferred Compensation Ledger, determined
under Section 6.6, which is vested under Sections 5.1 and 5.2, and the
distribution shall be made in one lump sum payment in cash. The distribution
shall be made within 30 days after the Participant's termination. Any amounts
not then vested shall be forfeited.

                  6.5 RESPONSIBILITY FOR DISTRIBUTIONS AND WITHHOLDING OF TAXES.
The Committee shall furnish information to the Company concerning the amount and
form of distribution to any Participant entitled to a distribution so that the
Company may make or cause the Trust to make the distribution required. It will
also calculate the deductions from the amount of the benefit paid under the Plan
for any taxes required to be withheld by federal, state or local government and
will cause them to be withheld and paid to the appropriate authority.

                  6.6 DISTRIBUTION DETERMINATION DATE. For purposes of all
distributions described in this Article VI, the determination date for valuing
the amounts credited to a Participant's Accounts shall be the Valuation Date
immediately preceding the event which triggers the beginning of the period
described in Section 6.1, 6.2, 6.3 or 6.4, as applicable.

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                                   ARTICLE VII

                                 ADMINISTRATION

                  7.1 COMMITTEE APPOINTMENT. The Committee which shall consist
of not less than three members shall be appointed by the Board of Directors.
Each Committee member shall serve until his resignation or removal. The Board of
Directors shall have the sole discretion to remove any one or more Committee
members and appoint one or more replacement or additional Committee members from
time to time.

                  7.2 COMMITTEE ORGANIZATION AND VOTING. The Committee shall
select from among its members a chairman who shall preside at all of its
meetings and shall elect a secretary without regard to whether that person is a
member of the Committee. The secretary shall keep all records, documents and
data pertaining to the Committee's supervision and administration of the Plan. A
majority of the members of the Committee shall constitute a quorum for the
transaction of business and the vote of a majority of the members present at any
meeting shall decide any question brought before the meeting. In addition, the
Committee may decide any question by a vote, taken without a meeting, of a
majority of its members. A member of the Committee who is also a Participant
shall not vote or act on any matter relating solely to himself.

                  7.3 POWERS OF THE COMMITTEE. The Committee shall have the
exclusive responsibility for the general administration of the Plan according to
the terms and provisions of the Plan and shall have all powers necessary to
accomplish those purposes, including but not by way of limitation the right,
power and authority:

                  (a)      to make rules and regulations for the administration
                           of the Plan;

                  (b)      to construe all terms, provisions, conditions and
                           limitations of the Plan;

                  (c)      to correct any defect, supply any omission or
                           reconcile any inconsistency that may appear in the
                           Plan in the manner and to the extent it deems
                           expedient to carry the Plan into effect;

                  (d)      to designate the persons eligible to become
                           Participants;

                  (e)      to determine all controversies relating to the
                           administration of the Plan, including but not limited
                           to:

                           (1) differences of opinion arising between the
                  Company and a Participant; and

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                           (2) any question it deems advisable to determine in
                  order to promote the uniform administration of the Plan for
                  the benefit of all parties at interest; and

                  (f) to delegate by written notice those clerical and
         recordation duties of the Committee, as it deems necessary or advisable
         for the proper and efficient administration of the Plan.

                  7.4 COMMITTEE DISCRETION. The Committee in exercising any
power or authority granted under the Plan or in making any determination under
the Plan shall perform or refrain from performing those acts using its sole
discretion and judgment. Any decision made by the Committee or any refraining to
act or any act taken by the Committee in good faith shall be final and binding
on all parties and shall not be subject to de novo review.

                  7.5 ANNUAL STATEMENTS. The Committee shall cause each
Participant to receive an annual statement as soon as administratively feasible
after the conclusion of each Plan Year containing a statement of the
Participant's Accounts in the Deferred Compensation Ledger through the end of
that Plan Year. The statement shall include a report of the Participant
Deferral, Company Discretionary Match, if any, and Company Discretionary
Accrual, if any, and the number of units credited to each Participant's Accounts
for that Plan Year.

                  7.6 REIMBURSEMENT OF EXPENSES. The Committee shall serve
without compensation for its services but shall be reimbursed by the Company for
all expenses properly and actually incurred in the performance of its duties
under the Plan.

                                  ARTICLE VIII

                          AMENDMENT AND/OR TERMINATION

                  8.1 AMENDMENT OR TERMINATION OF THE PLAN. The Board of
Directors may amend or terminate the Plan at any time by an instrument in
writing without the consent of any Participant.

                  8.2 NO RETROACTIVE EFFECT ON AWARDED BENEFITS. No amendment
shall affect the rights of any Participant to the amounts and/or units then
standing to his credit in his Accounts in the Deferred Compensation Ledger.
However, the Board of Directors shall retain the right to change at any time and
in any manner the method of calculating all amounts deferred by a Participant,
all amounts matched by the Company and all Company Discretionary Accruals to be
accrued in the future and the gauge to be used to determine future increases or
decreases in amounts accrued or deferred after the date of the amendment.

                  8.3 EFFECT OF TERMINATION. If the Plan is terminated, all
amounts deferred by Participants and matched or accrued by the Company and
credited to a Participant's Accounts shall immediately vest as if the
Participant were entitled to and did retire on the date the Plan terminated.

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Distributions would then commence in accordance with Section 6.3. However, the
forfeiture provisions of Section 6.5 would continue to apply until the actual
date of distribution.

                                   ARTICLE IX

                                     PAYMENT

                  9.1 PAYMENTS UNDER THIS AGREEMENT ARE THE OBLIGATION OF THE
COMPANY. The Company shall be liable for all benefits due the Participants under
the Plan.

                  9.2 PAYMENTS MAY BE MADE TO A RABBI TRUST. Under all
circumstances, the rights of the Participants to the assets held in any rabbi
trust created with respect to the Plan shall be no greater than the rights
expressed in this agreement. Nothing contained in the trust agreement which
creates any such rabbi trust shall constitute a guarantee by any Company that
the amounts transferred by it to the trust shall be sufficient to pay any
benefits under the Plan or would place the Participant in a secured position
ahead of judgment and/or general creditors should the Company become insolvent
or bankrupt. Any trust agreement established with respect to a Plan must
specifically set out these principles so it is clear in the trust agreement that
the Participants are only unsecured general creditors of the Company with
respect to their benefits under the Plan.

                  9.3 PARTICIPANTS MUST RELY ONLY ON GENERAL CREDIT OF THE
COMPANY. The Plan is only a general corporate commitment and each Participant
must rely upon the general credit of the Company for the fulfillment of its
obligations under the Plan. Under all circumstances the rights of Participants
to any asset held by the Company shall be no greater than the rights expressed
in this agreement. Nothing contained in this agreement shall constitute a
guarantee by the Company that the assets of the Company will be sufficient to
pay any benefits under the Plan or would place the Participant in a secured
position ahead of general creditors and judgment creditors of the Company.
Though the Company may establish or become a signatory to a rabbi trust to
accumulate assets to help fulfill its obligations, the Plan and any trust
created, shall not create any lien, claim, encumbrance, right, title or other
interest of any kind in any Participant in any asset held by the Company,
contributed to any trust created, or otherwise be designated to be used for
payment of any of its obligations created in this agreement. No specific assets
of the Company have been or will be set aside, or will be transferred to a trust
or will be pledged for the performance of the Company's obligations under the
Plan which would remove those assets from being subject to the general creditors
and judgment creditors of the Company.

                  9.4 PLAN UNFUNDED. It is intended that the Plan shall be
unfunded for tax purposes and for purposes of Title I of ERISA.

                                    ARTICLE X

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                                  MISCELLANEOUS

                  10.1 LIMITATION OF RIGHTS. Nothing in the Plan will be
construed:

                  (a) to give any employee of any Company any right to be
         designated a Participant in the Plan;

                  (b) to give a Participant any right with respect to the
         Deferral, the Company Discretionary Match accrued or Company
         Discretionary Accrual accrued except in accordance with the terms of
         the Plan;

                  (c) to limit in any way the right of the Company to terminate
         a Participant's employment with the Company at any time;

                  (d) to evidence any agreement or understanding, expressed or
         implied, that the Company will employ a Participant in any particular
         position or for any particular remuneration; or

                  (e) to give a Participant or any other person claiming through
         him any interest or right under the Plan other than that of any
         unsecured general creditor of the Company.

                  10.2 DISTRIBUTIONS TO INCOMPETENTS OR MINORS. Should a
Participant become incompetent or should a Participant designate a Beneficiary
who is a minor or incompetent, the Committee is authorized to pay the amounts
due to the parent of the minor or to the guardian of the minor or incompetent or
directly to the minor or to apply those amounts for the benefit of the minor or
incompetent in any manner the Committee determines in its sole discretion.

                  10.3 NONALIENATION OF BENEFITS. No right or benefit provided
in the Plan shall be transferable by the Participant except, upon his death, to
a named Beneficiary as provided in the Plan. No right or benefit under the Plan
shall be subject to anticipation, alienation, sale, assignment, pledge,
encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber, or charge the same shall be void. No right or benefit under
the Plan shall in any manner be liable for or subject to any debts, contracts,
liabilities or torts of the person entitled to such benefits. If any Participant
or any Beneficiary becomes bankrupt or attempts to anticipate, alienate, sell,
assign, pledge, encumber or charge any right or benefit under the Plan, that
right or benefit shall, in the discretion of the Committee, cease. In that
event, the Committee may have the Company hold or apply the right or benefit or
any part of it to the benefit of the Participant or Beneficiary, his or her
spouse, children or other dependents or any of them in any manner and in any
proportion the Committee believes to be proper in its sole and absolute
discretion, but is not required to do so.

                  10.4 RELIANCE UPON INFORMATION. The Committee shall not be
liable for any decision or action taken in good faith in connection with the
administration of the Plan. Without

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limiting the generality of the foregoing, any decision or action taken by the
Committee when it relies upon information supplied it by any officer of the
Company, the Company's legal counsel, the Company's independent accountants or
other advisors in connection with the administration of the Plan shall be deemed
to have been taken in good faith.

                  10.5 SEVERABILITY. If any term, provision, covenant or
condition of the Plan is held to be invalid, void or otherwise unenforceable,
the rest of the Plan shall remain in full force and effect and shall in no way
be affected, impaired or invalidated.

                  10.6 NOTICE. Any notice or filing required or permitted to be
given to the Committee or a Participant shall be sufficient if in writing and
hand delivered or sent by U.S. mail to the principal office of the Company or to
the residential mailing address of the Participant. Notice shall be deemed to be
given as of the date of hand delivery or if delivery is by mail, as of the date
shown on the postmark.

                  10.7 GENDER AND NUMBER. If the context requires it, words of
one gender when used in the Plan will include the other genders, and words used
in the singular or plural will include the other.

                  10.8 GOVERNING LAW. The Plan will be construed, administered
and governed in all respects by the laws of the State of Texas.

                  11.9 EFFECTIVE DATE. The Plan will be operative and effective
on the 1st day of January 2001.

                  IN WITNESS WHEREOF, the Company has executed this document on
this 8th day of December, 2000.

                                         VERITAS DGC INC.

                                         By ___________________________________
                                         Title ________________________________

                                      -11<PAGE>   1
                                                                    EXHIBIT 10-R

                             RABBI TRUST AGREEMENT

                             VERITAS DGC INC.

                             DEFERRED COMPENSATION PLAN
<PAGE>   2
                                    TABLE OF
                                    CONTENTS

Section 1.  Establishment of Trust ..........................................  1

Section 2.  Payments to Plan Participants and their Beneficiaries ...........  2

Section 3.  Trustee Responsibility Regarding Payments to the Trust
            Beneficiary When the Company is Insolvent .......................  2

Section 4.  Payments to the Company .........................................  3

Section 5.  Investment Authority ............................................  3

Section 6.  Disposition of Income ...........................................  5

Section 7.  Accounting by the Trustee .......................................  6

Section 8.  Responsibility of the Trustee ...................................  6

Section 9.  Compensation and Expenses of the Trustee ........................  7

Section 10. Resignation and Removal of the Trustee ..........................  7

Section 11. Appointment of Successor ........................................  7

Section 12. Amendment or Termination ........................................  8

Section 13. Miscellaneous ...................................................  8

Section 14. Effective date ..................................................  9
<PAGE>   3
                             RABBI TRUST UNDER THE
                  VERITAS DGC INC. DEFERRED COMPENSATION PLAN

     This Trust Agreement made this ____ day of ___________, 20___ by and
between Veritas DGC Inc. (hereinafter called the "Company"), with its principal
place of business 10300 Town Park, Houston, Texas 77072 and Austin Trust Company
(hereinafter called the "Trustee"), a trust company organized and existing under
the laws of the State of Texas, as Trustee.

                             W I T N E S S E T H :

     WHEREAS, the Company has adopted the Veritas DGC Inc. Deferred Compensation
Plan ("Plan"), a non-qualified deferred compensation plan; and

     WHEREAS, the Company has incurred or expects to incur liability under the
terms of such Plan with respect to the individuals participating in such Plan;
and

     WHEREAS, the Company wishes to establish a trust (hereinafter called
"Trust") and to contribute to the Trust assets that shall be held therein,
subject to the claims of the Company's creditors in the event of the Company's
Insolvency, as herein defined, until paid to Plan participants and their
beneficiaries in such manner and at such times as specified in the Plan; and

     WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plan
as an unfunded plan maintained for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974;
and

     WHEREAS, it is the intention of the Company to make contributions to the
Trust to provide itself with a source of funds to assist it in the meeting of
its liabilities under the Plan;

     NOW, THEREFORE, the parties do hereby establish the Trust and agree that
the trust shall be comprised, held and disposed of as follows:

SECTION 1. ESTABLISHMENT OF TRUST

     (a) The Company hereby deposits with the Trustee in trust $100.00, which
shall become the principal of the Trust to be held, administered and disposed of
by the Trustee as provided in this Trust Agreement.

     (b) The Trust shall become irrevocable upon execution.

     (c) The Trust is intended to be a grantor trust, of which the Company is
the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Internal Revenue Code of 1986, as amended, and shall be
construed accordingly.

     (d) The principal of the Trust, and any earnings thereon, shall be held
separate and apart from other funds of the Company and shall be used exclusively
for the uses and purposes of Plan participants and general creditors as herein
set forth. Plan participants and their beneficiaries shall have no preferred
claim on, or any beneficial ownership interest in, any assets of the Trust. Any
right created under the Plan and this Trust Agreement shall be mere unsecured
contractual rights of the Plan participants and their beneficiaries against

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<PAGE>   4
the Company. Any assets held by the Trust will be subject to the claims of the
Company's general creditors under federal and state law in the event of
Insolvency, as defined in Section 3(a) herein.

     (e) Within 30 days following the end of the Plan year, ending after the
Trust has become irrevocable pursuant to Section 1(b) hereof, the Company shall
be required to irrevocably deposit additional cash or other property to the
Trust in an amount sufficient to pay each Plan participant or beneficiary the
benefits payable pursuant to the terms of the Plan as of the close of the Plan
year.

SECTION 2. PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES.

     (a) The Company shall deliver to the Trustee a schedule (the "Payment
Schedule") that indicates the amounts payable in respect of each Plan
participant (and his or her beneficiaries), that provides a formula or other
instructions acceptable to the Trustee for determining the amounts so payable,
the form in which such amount to be paid (as provided for or available under the
Plan), and the time of commencement for payment of such amounts. Except as
otherwise provided herein, the Trustee shall make payments to the Plan
participants and their beneficiaries in accordance with such Payment Schedule.
The Trustee shall make provision for the reporting and withholding of any
federal, state or local taxes that may be required to be withheld with respect
to the payment of benefits pursuant to the terms of the Plan and shall pay
amounts withheld to the appropriate taxing authorities or determine that such
amounts have been reported, withheld and paid by the Company.

     (b) The entitlement of a Plan participant or his or her beneficiaries to
benefits under the Plan shall be determined by the Company or such party as it
shall designate under the Plan, and any claim for such benefits shall be
considered and reviewed under the procedures set out in the Plan.

     (c) The Company may make payment of benefits directly to Plan participants
or their beneficiaries as they become due under the terms of the Plan. The
Company shall notify the Trustee of its decision to make payment of benefits
directly prior to the time amounts are payable to participants or their
beneficiaries. In addition, if the principal of the Trust, and any earnings
thereon, are not sufficient to make payments of benefits in accordance with the
terms of the Plan, the Company shall make the balance of each such payment as
its falls due. The Trustee shall notify the Company where principal and earnings
are not sufficient.

SECTION 3. TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO THE TRUST BENEFICIARY
WHEN THE COMPANY IS INSOLVENT.

     (a) The Trustee shall cease payment of benefits to Plan participants and
their beneficiaries if the Company is Insolvent. The Company shall be considered
"Insolvent" for purposes of this Trust Agreement if (i) the Company is unable to
pay its debts as they become due, or (ii) the Company is subject to a pending
proceeding as a debtor under the United States Bankruptcy Code.

     (b) At all times during the continuance of this Trust, as provided in
Section 1(d) hereof, the principal and income of the Trust shall be subject to
claims of general creditors of the Company under federal and state law as set
forth below.

     (1) The Board of Directors and the Chief Executive Officer of the Company
     shall have the duty to inform the Trustee in writing of the Company's
     Insolvency. If a person claiming to be a creditor of the Company alleges in
     writing to the Trustee that the Company has become Insolvent, the Trustee
     shall determine whether the Company is Insolvent and, pending such
     determination, the Trustee shall discontinue payment of benefits to Plan
     participants or their beneficiaries.

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<PAGE>   5
     (2) Unless the Trustee has actual knowledge of the Company's Insolvency, or
     has received notice from the Company or a person claiming to be a creditor
     alleging that the Company is Insolvent, the Trustee shall have no duty to
     inquire whether the Company is Insolvent. The Trustee may in all events
     rely on such evidence concerning the Company's solvency as may be
     furnished to the Trustee and that provides the Trustee with a reasonable
     basis for making a determination concerning the Company's solvency.

     (3) If any time the Trustee has determined that the Company is Insolvent,
     the Trustee shall discontinue payments to Plan participants or their
     beneficiaries and shall hold the assets of the Trust for the benefit of
     the Company's general creditors. Nothing in this Trust Agreement shall in
     any way diminish any rights of Plan participants or their beneficiaries to
     pursue their rights as general creditors of the Company with respect to
     benefits due under the Plan or otherwise.

     (4) The Trustee shall resume the payment of benefits to Plan participants
     or their beneficiaries in accordance with Section 2 of this Trust
     Agreement only after the Trustee has determined that the Company is not
     Insolvent (or is no longer Insolvent).

     (c) Provided that there are sufficient assets, if the Trustee discontinues
the payment of benefits from the Trust pursuant to Section 3(b) hereof and
subsequently resumes such payments, the first payment following such
discontinuance shall include the aggregate amount of all payments due to Plan
participants or their beneficiaries under the terms of the Plan for the period
of such discontinuance, less the aggregate amount of any payments made to Plan
participants or their beneficiaries by the Company in lieu of the payments
provided hereunder during any such period of discontinuance.

SECTION 4. PAYMENTS TO THE COMPANY.

     Except as provided in Section 3 hereof, after the Trust has become
irrevocable, the Company shall have no right or power to direct the Trustee to
return to the Company or to divert to others any of the Trust assets before all
payment of benefits have been made to Plan participants and their beneficiaries
pursuant to the terms of the Plan.

SECTION 5. INVESTMENT AUTHORITY

     (a) With respect to the Trust Fund, the Trustee shall have the following
powers and rights, in addition to those vested in it elsewhere in this
Agreement or by law:

     (1) To invest the Trust Fund in such bonds, notes, debentures, mortgages,
     equipment, trust certificates, investment trust certificates, preferred or
     common stock, insurance and annuity contracts, common or collective trust
     funds, shares of regulated investment companies, shares of open-ended
     investment companies registered under the Investment Company Act of 1940,
     as amended, or in such other property, real or personal, as the Trustee may
     deem advisable, with the case, skill, prudence and diligence under the
     circumstances then prevailing that a prudent man acting in a like capacity
     and familiar with such matters would use in the conduct of an enterprise of
     a like character and with like aims; and

     (2) The Trustee may temporarily invest and reinvest the funds in any
     marketable short- and medium-term fixed income securities (including demand
     and short-term notes and commonly known as "Master Notes"), United States
     Treasury Bills, other short- and medium-term government obligations,

                                       3
<PAGE>   6
     commercial paper, other money market instruments and part interests in any
     one or more of the foregoing, or may maintain cash balances consistent with
     the liquidity needs of the Plan.

     (3) In addition, the Trustee shall have full power and authority to invest
     and reinvest all or any part of any investment fund through the medium of
     any pooled investment fund or group trust (including one or more of which
     it is the Trustee) which is invested principally in the property of the
     kind authorized for investment of the respective investment funds. To the
     extent of investment funds. To the extent of investment of the Trust's
     assets in such a pooled fund or group trust, the terms of the instrument
     establishing such pooled fund or group trust are made a part hereof as
     fully as if set forth at length herein.

     (4) To retain, manage, improve, repair, operate and control all property,
     real or personal, at any time comprising part of the Trust Fund; and

     (5) To manage, sell, contract to sell, grant options to purchase, convey,
     exchange, partition, lease for any term (even though such term commences in
     the future or may extend beyond the duration of the Trust), and otherwise
     dispose of the Trust Fund from time to time in such a manner, for such
     consideration, and upon such terms and conditions as the Trustee in its
     discretion shall determine; and

     (6) To vote any corporate stock either in person or by proxy for any
     purpose; to exercise or sell any stock subscription or conversion right; to
     participate in voting trusts; to consent to, take any action in connection
     with, and receive and retain any securities resulting from any merger,
     consolidation, reorganization, readjustment of the financial structure,
     liquidation, sale, lease, or other disposition of the assets of any
     corporation or other organization the securities of which may constitute a
     portion of the Trust Fund; and

     (7) To keep any property in the name of a nominee with or without
     disclosure of any fiduciary relationship; and

     (8) To take any action with respect to conserving or realizing upon the
     value of any property in the Trust Fund; to collect, pay, contest,
     compromise, or abandon demands of or against the Trust Fund; to pay any
     tax, assessment for other charge attributable to the interest of such
     beneficiary; and

     (9) To purchase, hold and sell interest or units of participation in any
     collective or common trust fund established by the Trustee, including any
     such funds which may be established in the future;

     (10) To deposit securities in a security depository and permit the
     securities so deposited to be held in the name of the depository's nominee,
     and to deposit securities issued or guaranteed by the U.S. government or
     any agency or instrumentality thereof, including securities evidenced by
     book entry rather than by certificate, with the U.S. Department of the
     Treasury, a Federal Reserve Bank or other appropriate custodial entity, in
     the same account as the Trustee's own property, provided the Trustee's
     records and accounts show that such securities are assets of the Trust
     Fund; and

     (11) Generally, to do all acts, whether or not expressly authorized, which
     the Trustee deems necessary or desirable, but acting at all times according
     the principles expressed in Section 8.

     (b) The Trustee is authorized to contract or make other arrangements with
any other organizations affiliated with or subsidiaries of the Trustee or
related entities, for the provisions of services to the Trust or Plan, except
where such arrangements are prohibited by law or regulation.

     (c) The Trustee is directed to place securities orders, settle securities
trades, hold securities in custody, and other related activities on behalf of
the Trust through or by any broker/dealer Trustee selects, unless an

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<PAGE>   7
Investment Advisor appointed by the Company and approved by the Trustee to act
as Investment Advisor (so called) specifically instructs the use of a specific
broker/dealer. Trades (and related activities) conducted through any
broker/dealer shall be subject to fees and commissions established by the
broker/dealer, which may be paid from the Trust or netted from the proceeds of
trades.

     The Trustee is authorized to disclose such information as is necessary to
the operation and administration of the Trust to such persons or organizations
that the Trustee determines have a legitimate business purpose for obtaining
such information.

     (d) The Company may appoint an Investment Advisor subject to the approval
of the Trustee. Any such appointment shall be in writing and shall delineate
the duties, responsibilities and liabilities of the Investment Advisor with
respect to any part of the assets of the trust under the control of the
Investment Advisor. Any such Investment Advisor appointed by the Company shall
be an independent person or entity.

     If the Company shall appoint an Investment Advisor to whom discretion is
given to invest all or any part of the assets of the Trust, the Trustee shall
segregate each such part into a separate account to be invested by the Trustee
upon the direction of the Investment Advisor. The Trustee shall be under no
duty to question, or make inquiries as to, any action or direction of any
Investment Advisor as provided herein, or any failure to give directions, or to
review the securities subject to the investment direction of any Investment
Advisor, or to make any suggestions to an Investment Advisor with respect to
investment and reinvestment of, or disposing of investments in, any part of the
assets of the Trust subject to the investment discretion of any Investment
Advisor, unless the Trustee knows that by such action or failure to act it will
be participating in a breach of fiduciary duty by the Investment Advisor.

     (e) The Trustee may invest in securities (including stock or rights to
acquire stock) or obligations issued by the Company. All rights associated with
assets of the Trust shall be exercised by the Trustee or the person designated
by the Trustee, and shall in no event be exercisable by or rest with Plan
participants, except that voting rights with respect to Trust assets with be
exercised by the Company.

     (f) The Company shall have the right at anytime, and from time to time in
its sole discretion, to substitute assets of equal fair market value for any
asset held by the Trust. This right is exercisable by the Company in a
nonfiduciary capacity without the approval or consent of any person in a
fiduciary capacity.

SECTION 6. DISPOSITION OF INCOME.

     During the term of this Trust, all income received by the Trust, net of
expenses and taxes, shall be accumulated and reinvested.

SECTION 7. ACCOUNTING BY THE TRUSTEE.

     The Trustee shall keep accurate and detailed records of all investments,
receipts, disbursements, and all other transactions required to be made,
including such specific records as shall be agreed upon in writing between the
Company and the Trustee. Within 60 days following the close of each calendar
year and within 60 days after the removal or resignation of the Trustee, the
Trustee shall deliver to the Company a written account of its administration of
the Trust during such year or during the period from the close of the last
preceding year to the date of such removal or resignation, setting forth all
investments, receipts, disbursements and other transactions effected by it,
including a description of all securities and investments purchased and sold
with the cost or net proceeds of such purchases or sales (accrued interest paid
or receivable being shown

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<PAGE>   8
separately), and showing all cash, securities and other property held in the
Trust at the end of such year or as of the date of such removal or resignation,
as the case may be.

SECTION 8. RESPONSIBILITY OF THE TRUSTEE.

     (a) The Trustee shall act with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims, provided, however, that the
Trustee shall incur no liability to any person for any action taken pursuant to
a direction, request or approval given by the Company which is contemplated by,
and in conformity, the terms of the Plan or this Trust and is given in writing
by the Company. In the event of a dispute between the Company and a party, the
Trustee may apply to a court of competent jurisdiction to resolve the dispute.

     (b) If the Trustee undertakes or defends any litigation arising in
connection with this Trust, the Company agrees to indemnify the Trustee against
the Trustee's costs, expenses and liability (including, without limitation,
attorneys' fees and expenses) relating thereto and to be primarily liable for
such payments. If the Company does not pay such costs, expenses and liabilities
in a reasonably timely manner, the Trustee may obtain payment from the Trust.

     (c) The Trustee may consult with legal counsel (who may also be counsel for
the Company generally) with respect to any of its duties or obligations
hereunder.

     (d) The Trustee may hire agents, accountants, actuaries, investment
advisors, financial consultants or other professionals to assist it in
performing any of its duties or obligations hereunder.

     (e) The Trustee shall have, without exclusion, all powers conferred on the
Trustees by applicable law, unless expressly provided otherwise herein,
provided, however, that if any insurance policy is held as an asset of the
Trust, the Trustee shall have no power to name a beneficiary of the policy other
than the Trust, to assign the policy (as distinct from conversion of the policy
to a different form) other than to a successor Trustee, or to loan to any person
the proceeds of any borrowings against such policy.

     (f) Notwithstanding any powers granted to the Trustee pursuant to this
Trust Agreement or to applicable law, the Trustee shall not have any power that
could give this Trust the objective of carrying on a business and dividing the
gains therefrom, within the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code.

     (g) The Trustee shall not be liable for any mistake or error in judgment
but shall be liable only for willful misconduct or gross negligence.

     (h) No Trustee shall be required to furnish bond or other security except
as herein expressly provided or except if required to do so under applicable
federal law.

     (i) In the event of a garnishment, attachment, levy or other legal process
by a creditor of the Company of any of the assets of the Trust under
circumstances set out in Section 3.(b) hereof where Trustee cannot ascertain the
Insolvency of the Company, the Trustee may interplead the assets of the Trust
into the court where the creditor has brought such action. The Trustee shall
have no liability to the Company for making such interpleader.

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<PAGE>   9
SECTION 9. COMPENSATION AND EXPENSES OF THE TRUSTEE.

     The Company shall pay all administration and Trustee's fees and expenses.
If not so paid, the fees and expenses shall be paid from the Trust.

SECTION 10. RESIGNATION AND REMOVAL OF THE TRUSTEE.

     (a) The Trustee may resign at any time by written notice to the Company,
which shall be effective 60 days after receipt of such notice unless the
Company and the Trustee agree otherwise.

     (b) The Trustee may be removed by the Company on 60 days notice or upon
shorter notice accepted by the Trustee.

     (c) Upon a Change of Control, as defined in Section 13 below, the Trustee
may not be removed by the Company for two (2) years.

     (d) If the Trustee resigns or is removed within five (5) years of a Change
of Control, as defined herein, the Company shall apply to a court of competent
jurisdiction for the appointment of a successor trustee or for instructions.

     (e) Upon the resignation or removal of the Trustee and appointment of a
successor Trustee, all assets shall subsequently be transferred to the
successor Trustee. The transfer shall be completed with 90 days after receipt
of notice of the resignations, removal or transfer, unless the Company extends
the time limit.

     (f) If the Trustee resigns or is removed, a successor shall be appointed,
in accordance with Section 11 hereof, by the effective date or resignation or
removal under paragraph(s) (a) [or (b)] of this section. If no such appointment
has been made, the Trustee may apply to a court of competent jurisdiction for
appointment of a successor or for instructions. All expenses of the Trustee in
connection with the proceeding shall be allowed as administrative expenses of
the Trust.

SECTION 11. APPOINTMENT OF SUCCESSOR.

     (a) If the Trustee resigns or is removed in accordance with Section 10(a)
or 10(b) hereof, the Company may appoint any third party, such as a bank trust
department or other party that may be granted corporate trustee powers under
state law, as a successor to replace the Trustee upon resignation or removal.
The appointment shall be effective when accepted in writing by the new Trustee,
who shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust assets. The former Trustee shall execute any
instrument necessary or reasonably requested by the Company or the successor
Trustee to evidence the transfer.

     (b) The Successor Trustee need not examine the records and acts of any
prior Trustee and may retain or dispose of existing Trust assets, subject to
Sections 7, and 8 hereof. The successor Trustee shall not be responsible for
and the Company shall indemnify and defend the successor Trustee from any claim
or liability resulting from any action or inaction of any prior Trustee or from
any other past event, or any condition existing at the time it becomes successor
Trustee.

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<PAGE>   10
SECTION 12. AMENDMENT OR TERMINATION.

     (a) This Trust Agreement may be amended by a written instrument executed by
Trustee and the Company. Notwithstanding the foregoing, no such amendment shall
conflict with the terms of the Plan or shall make the Trust revocable after it
has become irrevocable in accordance with Section 1(b) hereof.

     (b) The Trust shall not terminate until the date on which Plan participants
and their beneficiaries are no longer entitled to benefits pursuant to the terms
of the Plan. Upon termination of the Trust, any assets remaining in the Trust
shall be returned to the Company.

     (c) Sections 10, 11 and 2 of this Trust Agreement may not be amended by the
Company for five (5) years following a Change of Control, as defined herein.

SECTION 13. MISCELLANEOUS.

     (a) Any provision of this Trust Agreement prohibited by law shall be
ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

     (b) Benefits payable to Plan participants and their beneficiaries under
this Trust Agreement may not be anticipated, assigned (either at law or in
equity), alienated, pledged, encumbered or subjected to attachment, levy,
execution or other legal or equitable process.

     (c) This Trust Agreement shall be governed by and construed in accordance
with laws of the State of Texas.

     (d) For purposes of this Trust, Change of Control shall mean the purchase
or other acquisition by any person,entity or group of persons, within the
meaning of section 13(d) or 14(d) of the Securities Exchange Act of 1934
("Act"), or any comparable successor provisions, of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Act) of 30 percent or more of
either the outstanding shares of common stock or the combined vetoing power of
the Company's then outstanding voting securities entitled to vote generally, or
the approval by the stockholders of the Company of a reorganization, merger, or
consolidation, in each case, with respect to which persons who were
stockholders of the Company immediately prior to such reorganization, merger or
consolidation do not immediately thereafter, own more than 50 percent of the
combined voting power entitled to vote generally in the election of directors
of the reorganized, merged or consolidated Company's then outstanding
securities, or a liquidation or dissolution of the Company or the of the sale
of all substantially all of the Company's assets.

     (e) Until further notice from either party hereto, any notices delivered
pursuant to this Agreement and all other communications shall be in writing and
shall be delivered or sent to the persons at the addresses set forth hereunder.
All notices and other communications shall be effective when received. The
party seeking to rely on notice having been given under this paragraph shall be
responsible for ascertaining its receipt.

     For Company:

     Veritas DGC Inc.
     10300 Town Park
     Houston, Texas 77072
     Attention: Liz Foreman

                                       8
<PAGE>   11
     For Trustee:

     Austin Trust Company
     100 Congress Avenue, Suite 700
     Austin, Texas 78701
     Attention: Dan Remick

     (f) This Agreement between the Company and the Trustee contains the entire
understanding between the parties with respect to its subject matter, and, as
of the effective date of this Agreement, it supersedes and entirely replaces any
and all prior agreements between the Company and the Trustee with respect to
the subject matter of this agreement.

     (g) This Agreement shall be binding upon and inure to the benefit of the
parties hereof and their heirs, successors and assignees. This Agreement is not
assignable by any party without the expressed written consent of the other
party.

     (h) Titles and captions used in this Agreement are included for
convenience of reference only and in no way define or delimit any provisions or
otherwise alter the construction or effect.

     (i) Where the context permits, words in the masculine gender shall include
the feminine and neuter genders, the singular shall include the plural, and
the plural shall include the singular.

     (j) Each of the parties to this Agreement hereby represents and warrants
that it is duly authorized and empowered to execute, deliver and perform this
Agreement.

     (k) This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all counterparts shall, together,
constitute only one Agreement.

SECTION 14. EFFECTIVE DATE.

     The effective date of this Trust Agreement shall be ____________, 20 _____.

     IN WITNESS WHEREOF, this Agreement is executed as of the day and year
first written above.

                                        COMPANY

                                        VERITAS DGC INC.

                                        ----------------------------------------

                                        Title:
                                              ----------------------------------

                                        TRUSTEE

                                        AUSTIN TRUST COMPANY

                                        ----------------------------------------

                                        Title:
                                              ----------------------------------

                                       9

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