Document:

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                                                                     EXHIBIT 4.1

                                VERITAS DGC INC.

                        1997 EMPLOYEE STOCK PURCHASE PLAN

                   (AS AMENDED AND RESTATED DECEMBER 11, 2001)

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                                TABLE OF CONTENTS
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1.       Purpose..................................................................................................1

2.        Definitions.............................................................................................1
         (a)      "Account........................................................................................1
         (b)      "Base Pay.......................................................................................1
         (c)      "Benefits Representative........................................................................1
         (d)      "Board..........................................................................................1
         (e)      "Code...........................................................................................1
         (f)      "Committee......................................................................................1
         (g)      "Common Stock...................................................................................2
         (h)      "Company........................................................................................2
         (i)      "Disability.....................................................................................2
         (j)      "Effective Date.................................................................................2
         (k)      "Employee.......................................................................................2
         (l)      "Employer.......................................................................................2
         (m)      "Employment.....................................................................................2
         (n)      "Entry Date.....................................................................................2
         (o)      "Fiscal Quarter.................................................................................3
         (p)      "Market Price...................................................................................3
         (q)      "Participant....................................................................................3
         (r)      "Plan...........................................................................................3
         (s)      "Stock..........................................................................................3
         (t)      "Subsidiary.....................................................................................3

3.       Eligibility..............................................................................................4
         (a)      Eligibility Requirements........................................................................4
         (b)      Limitations on Eligibility......................................................................4

4.       Shares Subject to the Plan...............................................................................5

5.       Participation............................................................................................5
         (a)      Payroll Deduction Authorization.................................................................5
         (b)      Continuing Effect of Payroll Deduction Authorization............................................5
         (c)      Employment and Stockholders Rights..............................................................6

6.       Payroll Deductions.......................................................................................6
         (a)      Participant Contributions by Payroll Deductions.................................................6
         (b)      No Other Participant Contributions Permitted....................................................6
         (c)      Changes in Participant Contributions............................................................6

7.       Granting of Option to Purchase Stock.....................................................................6
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         (a)      Quarterly Grant of Options......................................................................6
         (b)      Option Price....................................................................................7

8.       Exercise of Option.......................................................................................7
         (a)      Automatic Exercise of Options...................................................................7
         (b)      Dividends Generally.............................................................................7
         (c)      Pro-rata Allocation of Available Shares.........................................................7

9.       Ownership and Delivery of Shares.........................................................................8
         (a)      Beneficial Ownership............................................................................8
         (b)      Registration of Stock...........................................................................8
         (c)      Delivery of Stock Certificates..................................................................8
         (d)      Regulatory Approval.............................................................................8

10.      Withdrawal of Payroll Deductions.........................................................................8

11.      Termination of Employment................................................................................9
         (a)      General Rule....................................................................................9
         (b)      Termination Due to Retirement, Death or Disability..............................................9
         (c)      Termination Other Than for Retirement, Death or Disability.....................................10
         (d)      Rehired Employees..............................................................................10

12.      Interest................................................................................................10

13.      Administration of the Plan..............................................................................10
         (a)      No Participation in Plan by Committee Members..................................................10
         (b)      Authority of the Committee.....................................................................10
         (c)      Meetings.......................................................................................10
         (d)      Decisions Binding..............................................................................11
         (e)      Expenses of Committee..........................................................................11
         (f)      Indemnification................................................................................11

14.      Designation of Beneficiary..............................................................................11

15.      Transferability.........................................................................................12

16.      No Rights of Stockholder Until Certificate Issued.......................................................12

17.      Changes in the Company's Capital Structure..............................................................12

18.      Plan Expenses; Use of Funds; No Interest Paid...........................................................13

19.      Term of the Plan........................................................................................13

20.      Amendment or Termination of the Plan....................................................................14
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21.      Securities Laws Restrictions on Exercise................................................................14

22.      Section 16 Compliance...................................................................................14

23.      Withholding Taxes for Disqualifying Disposition.........................................................14

24.      No Restriction on Corporate Action......................................................................15

25.      Use of Funds............................................................................................15

26.      Miscellaneous...........................................................................................15
         (a)      Options Carry Same Rights and Privileges.......................................................15
         (b)      Headings.......................................................................................15
         (c)      Gender and Tense...............................................................................15
         (d)      Governing Law..................................................................................15
         (e)      Regulatory Approvals and Compliance............................................................15
         (f)      Severability...................................................................................15
         (g)      Refund of Contributions on Noncompliance with Tax Law..........................................16
         (h)      No Guarantee of Tax Consequences...............................................................16
         (i)      Company as Agent for the Employers.............................................................16
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                                VERITAS DGC INC.
                        1997 EMPLOYEE STOCK PURCHASE PLAN
                   (AS AMENDED AND RESTATED DECEMBER 11, 2001)

         1. PURPOSE. The Veritas DGC Inc. 1997 Employee Stock Purchase Plan (the
"Plan") is intended to provide an incentive for employees of Veritas DGC Inc.
(the "Company") and its participating subsidiaries to acquire or increase their
proprietary interests in the Company through the purchase of shares of Common
Stock of the Company. The Plan is intended to qualify as an "Employee Stock
Purchase Plan" under Sections 421 and 423 of the Internal Revenue Code of 1986,
as amended (the "Code"). The provisions of the Plan will be construed in a
manner consistent with the requirements of such sections of the Code and the
regulations issued thereunder.

         2.        DEFINITIONS.  As used in this Plan,

                  (a) "ACCOUNT" means the account recorded in the records of the
         Company established on behalf of a Participant to which the amount of
         the Participant's payroll deductions authorized under Section 6 and
         purchases of Common Stock under Section 8 shall be credited, and any
         distributions of shares of Common Stock under Section 9 and withdrawals
         under Section 10 shall be charged.

                  (b) "BASE PAY" means regular straight-time earnings or base
         salary, excluding payments for overtime, shift differentials, incentive
         compensation, bonuses, and other special payments, fees, allowances or
         extraordinary compensation.

                  (c) "BENEFITS REPRESENTATIVE" means the employee benefits
         department of the Company or any such other person, regardless of
         whether employed by an Employer, who has been formally, or by operation
         or practice, designated by the Committee to assist the Committee with
         the day-to-day administration of the Plan.

                  (d)      "BOARD" means the Board of Directors of the Company.

                  (e) "CODE" means the Internal Revenue Code of 1986, or any
         successor thereto, as amended and in effect from time to time.
         Reference in the Plan to any Section of the Code shall be deemed to
         include any amendments or successor provisions to any Section and any
         treasury regulations thereunder.

                  (f) "COMMITTEE" means the Compensation Committee of the Board.
         The Board shall have the power to fill vacancies on the Committee
         arising by resignation, death, removal or otherwise. The Board, in its
         sole discretion, may bifurcate the powers and duties of the Committee
         among one or more separate Committees, or retain all powers and duties
         of the Committee in a single Committee. The members of the Committee
         shall serve at the discretion of the Board.

                  (g)      "COMMON STOCK" or "STOCK" means the common stock,
         $.01 par value per share, of the Company.
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                  (h) "COMPANY" means Veritas DGC Inc., a Delaware corporation,
         and any successor thereto.

                  (i) "DISABILITY" means any complete and permanent disability
         as defined in Section 22(e)(3) of the Code.

                  (j) "EFFECTIVE DATE" means November 1, 1997, the inception
         date of the Plan.

                  (k) "EMPLOYEE" means any employee who is currently in
         Employment with an Employer.

                  (l) "EMPLOYER" means the Company, its successors, any future
         parent (as defined in Section 424(e) of the Code) and each current or
         future Subsidiary which has been designated by the Board or the
         Committee as a participating employer in the Plan.

                  (m) "EMPLOYMENT" means Employment as an employee or officer by
         the Company or a Subsidiary as designated in such entity's payroll
         records, or by any corporation issuing or assuming rights or
         obligations under the Plan in any transaction described in Section
         424(a) of the Code or by a parent corporation or a subsidiary
         corporation of such corporation. In this regard, neither the transfer
         of a Participant from Employment by the Company to Employment by a
         Subsidiary, nor the transfer of a Participant from Employment by a
         Subsidiary to Employment by the Company, shall be deemed to be a
         termination of Employment of the Participant. Moreover, the Employment
         of a Participant shall not be deemed to have been terminated because of
         absence from active Employment on account of temporary illness or
         during authorized vacation, temporary leaves of absence from active
         Employment granted by Company or a Subsidiary for reasons of
         professional advancement, education, health, or government service, or
         during military leave for any period if the Participant 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 which, by virtue of any valid law or agreement, does not result
         in a termination of Employment.

                  Any worker treated as an independent contractor by the
         Employer who is later re-classified as a common-law employee shall not
         be in Employment during any period in which such worker was treated by
         the Employer as an independent contractor. Any "leased employee", as
         described in Section 414(n) of the Code, shall not be deemed an
         Employee hereunder.

                  (n) "ENTRY DATE" means the first day of each Fiscal Quarter.

                  (o) "FISCAL QUARTER" means a three-consecutive-month period
         beginning on each November 1, February 1, May 1, and August 1, during
         the period beginning on the Effective Date until the Plan is
         terminated.

                                      -2-
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                  (p) "MARKET PRICE" means, subject to the next paragraph, the
         market value of a share of Stock on any date, which shall be determined
         as (i) the closing sales price on the immediately preceding business
         day of a share of Stock as reported on the New York Stock Exchange or
         other principal securities exchange on which shares of Stock are then
         listed or admitted to trading or (ii) if not so reported, the average
         of the closing bid and asked prices for a share of Stock on the
         immediately preceding business day as quoted on the National
         Association of Securities Dealers Automated Quotation System
         ("NASDAQ"), or (iii) if not quoted on NASDAQ, the average of the
         closing bid and asked prices for a share of Stock as quoted by the
         National Quotation Bureau's "Pink Sheets" or the National Association
         of Securities Dealers' OTC Bulletin Board System. If the price of a
         share of Stock shall not be so reported pursuant to the previous
         sentence, the fair market value of a share of Stock shall be determined
         by the Committee in its discretion provided that such method is
         appropriate for purposes of an employee stock purchase plan under
         Section 423 of the Code.

                  Notwithstanding the previous paragraph of this definition, the
         Market Price of a share of Stock solely for purposes of determining the
         option price on the first or last day of the Fiscal Quarter in
         accordance with Section 7(b) shall be based on the Market Price on the
         first or last day of the Fiscal Quarter, as applicable, and not on the
         immediately preceding business day. For example, if the Stock is traded
         on the New York Stock Exchange, when determining the option price under
         Section 7(b) at which shares of Stock are purchased, the Market Price
         for determining this option price shall be based on the lower of (i)
         the closing sales price of a share of Stock on the first business day
         of the Fiscal Quarter or (ii) the closing sales price of a share of
         Stock on the last business day of the Fiscal Quarter.

                  (q) "PARTICIPANT" means any Employee who meets the eligibility
         requirements of Section 3 and who has elected to and is participating
         in the Plan.

                  (r) "PLAN" means the Veritas DGC Inc. 1997 Employee Stock
         Purchase Plan, as set forth herein, and all amendments hereto.

                  (s) "STOCK" means the Common Stock (as defined above).

                  (t) "SUBSIDIARY" means any domestic or foreign corporation
         (other than the Company) (i) which, pursuant to Section 424(f) of the
         Code, is included in an unbroken chain of corporations beginning with
         the Company if, at the time of the granting of the option, each of the
         corporations other than the last corporation in the unbroken chain owns
         stock possessing fifty percent (50%) or more of the total combined
         voting power of all classes of capital stock in one of the other
         corporations in such chain and (ii) which has been designated by the
         Board or the Committee as a corporation whose Employees are eligible to
         participate in the Plan.

         3.       ELIGIBILITY.

                  (a) Eligibility Requirements. Participation in the Plan is
         voluntary. Each Employee who has completed at least six (6) consecutive
         months of continuous Employment

                                      -3-
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         with an Employer (calculated from his last date of hire to the
         termination of his Employment for any reason) and has reached the age
         of majority in the jurisdiction of his legal residency, will be
         eligible to participate in the Plan on the first day of the payroll
         period commencing on or after the earlier of (i) the Effective Date or
         (ii) the Entry Date on which the Employee satisfies the aforementioned
         eligibility requirements. Each Employee whose Employment terminates and
         who is rehired by an Employer shall be treated as a new Employee for
         eligibility purposes under the Plan.

                  (b) Limitations on Eligibility. Any provision of the Plan to
         the contrary notwithstanding, no Employee will be granted an option
         under the Plan:

                           (i) if, immediately after the grant, the Employee
                  would own stock, and/or hold outstanding options to purchase
                  stock, possessing five percent (5%) or more of the total
                  combined voting power or value of all classes of stock of the
                  Company or of any Subsidiary; or

                           (ii) which permits the Employee's rights to purchase
                  stock under this Plan and all other employee stock purchase
                  plans (within the meaning of Section 423 of the Code) of the
                  Company and its Subsidiaries to accrue at a rate which exceeds
                  $25,000 of the fair market value of the stock (determined at
                  the time such option is granted) for each Fiscal year in which
                  such option is outstanding at any time, all as determined in
                  accordance with Section 423(b)(8) of the Code.

         For purposes of Section 3(b)(i) above, pursuant to Section 424(d) of
         the Code, (i) the Employee with respect to whom such limitation is
         being determined shall be considered as owning the stock owned,
         directly or indirectly, by or for his brothers and sisters (whether by
         the whole or half blood), spouse, ancestors, and lineal descendants;
         and (ii) stock owned, directly or indirectly, by or for a corporation,
         partnership, estate, or trust, shall be considered as being owned
         proportionately by or for its shareholders, partners, or beneficiaries.
         In addition, for purposes of Section 3(b)(ii) above, pursuant to
         Section 423(b)(8) of the Code, (i) the right to purchase stock under an
         option accrues when the option (or any portion thereof) first becomes
         exercisable during the calendar year, (ii) the right to purchase stock
         under an option accrues at the rate provided in the option but in no
         case may such rate exceed $25,000 of fair market value of such stock
         (determined at the time such option is granted) for any one calendar
         year, and (iii) a right to purchase stock which has accrued under one
         option granted pursuant to the Plan may not be carried over to any
         other option.

         4. SHARES SUBJECT TO THE PLAN. The total number of shares of Common
Stock that upon the exercise of options granted under the Plan will not exceed
One Million (1,000,000) shares (subject to adjustment as provided in Section
17), and such shares may be originally issued shares, treasury shares,
reacquired shares, shares bought in the market, or any combination of the
foregoing. If any option which has been granted expires or terminates for any
reason without having been exercised in full, the unpurchased shares will again
become available for purposes of the Plan. Any shares which are not subject to
outstanding options upon the termination of the Plan shall cease to be subject
to the Plan.

                                      -4-
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         5.       PARTICIPATION.

                  (a) Payroll Deduction Authorization. An Employee shall be
         eligible to participate in the Plan as of the first Entry Date
         following such Employee's satisfaction of the eligibility requirements
         of Section 3, or, if later, the first Entry Date following the date on
         which the Employee's Employer adopted the Plan. At least 10 days (or
         such other period as may be prescribed by the Committee or a Benefits
         Representative) prior to the first Entry Date as of which an Employee
         is eligible to participate in the Plan, the Employee shall execute and
         deliver to the Benefits Representative, on the form prescribed for such
         purpose, an authorization for payroll deductions which specifies his
         chosen rate of payroll deduction contributions pursuant to Section 6,
         and such other information as is required to be provided by the
         Employee on such enrollment form. The enrollment form shall authorize
         the Employer to reduce the Employee's Base Pay by the amount of such
         authorized contributions. To the extent provided by the Committee or a
         Benefits Representative, each Participant shall also be required to
         open a stock brokerage account with a brokerage firm which has been
         engaged to administer the purchase, holding and sale of Common Stock
         for Accounts under the Plan and, as a condition of participation
         hereunder, the Participant shall be required to execute any form
         required by the brokerage firm to open and maintain such brokerage
         account.

                  (b) Continuing Effect of Payroll Deduction Authorization.
         Payroll deductions for a Participant will commence with the first
         payroll period beginning after the Participant's authorization for
         payroll deductions becomes effective, and will end with the payroll
         period that ends when terminated by the Participant in accordance with
         Section 6(c) or due to his termination of Employment in accordance with
         Section 11. Payroll deductions will also cease when the Participant is
         suspended from participation due to a withdrawal of payroll deductions
         in accordance with Section 10. When applicable with respect to
         Employees who are paid on a hourly wage basis, the authorized payroll
         deductions shall be withheld from wages when actually paid following
         the period in which the compensatory services were rendered. Only
         payroll deductions that are credited to the Participant's Account
         during the Fiscal Quarter will be used to purchase Common Stock
         pursuant to Section 8 regardless of when the work was performed.

                  (c) Employment and Stockholders Rights. Nothing in the Plan
         will confer on a Participant the right to continue in the employ of the
         Employer or will limit or restrict the right of the Employer to
         terminate the Employment of a Participant at any time with or without
         cause. A Participant will have no interest in any Common Stock to be
         purchased under the Plan or any rights as a stockholder with respect to
         such Stock until the Stock has been purchased and credited to the
         Participant's Account.

                                      -5-
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         6.       PAYROLL DEDUCTIONS.

                  (a) Participant Contributions by Payroll Deductions. At the
         time a Participant files his payroll deduction authorization form, the
         Participant will elect to have deductions made from the Participant's
         Base Pay for each payroll period such authorization is in effect in
         whole percentages at the rate of not less than 1% nor more than 15% of
         the Participant's Base Pay.

                  (b) No Other Participant Contributions Permitted. All payroll
         deductions made for a Participant will be credited to the Participant's
         Account under the Plan. A Participant may not make any separate cash
         payment into such Account.

                  (c) Changes in Participant Contributions. Subject to Sections
         10 and 22, a Participant may increase, decrease, suspend, or resume
         payroll deductions under the Plan by giving written notice to a
         designated Benefits Representative at such time and in such form as the
         Committee or Benefits Representative may prescribe from time to time.
         Such increase, decrease, suspension or resumption will be effective as
         of the first day of the payroll period as soon as administratively
         practicable after receipt of the Participant's written notice, but not
         earlier than the first day of the payroll period of the Fiscal Quarter
         next following receipt and acceptance of such form. Notwithstanding the
         previous sentence, a Participant may completely discontinue
         contributions at any time during a Fiscal Quarter, effective as of the
         first day of the payroll period as soon as administratively practicable
         following receipt of a written discontinuance notice from the
         Participant on a form provided by a designated Benefits Representative.
         Following a discontinuance of contributions, a Participant cannot
         authorize any payroll contributions to his Account for the remainder of
         the Fiscal Quarter in which the discontinuance was effective.

         7.       GRANTING OF OPTION TO PURCHASE STOCK.

                  (a) Quarterly Grant of Options. For each Fiscal Quarter, a
         Participant will be deemed to have been granted an option to purchase,
         on the first day of the Fiscal Quarter, as many whole and fractional
         shares as may be purchased with the payroll deductions (and any cash
         dividends as provided in Section 8) credited to the Participant's
         Account during the Fiscal Quarter.

                  (b) Option Price. The option price of the Common Stock
         purchased with the amount credited to the Participant's Account during
         each Fiscal Quarter will be the lower of:

                            (i) 85% of the Market Price of a share of Stock on
                  the first day of the Fiscal Quarter; or

                            (ii) 85% of the Market Price of a share of Stock on
                  the last day of the Fiscal Quarter.

                                      -6-
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                  Only the Market Price as of the first day of the Fiscal
         Quarter and the last day of the Fiscal Quarter shall be considered for
         purposes of determining the option purchase price; interim fluctuations
         during the Fiscal Quarter shall not be considered.

         8.       EXERCISE OF OPTION.

                  (a) Automatic Exercise of Options. Unless a Participant has
         elected to withdraw payroll deductions in accordance with Section 10,
         the Participant's option for the purchase of Common Stock will be
         deemed to have been exercised automatically as of the last day of the
         Fiscal Quarter for the purchase of the number of whole and fractional
         shares of Common Stock which the accumulated payroll deductions (and
         cash dividends on the Common Stock as provided in Section 8(b)) in the
         Participant's Account at that time will purchase at the applicable
         option price. Fractional shares may be issued under the Plan. As of the
         last day of each Fiscal Quarter, the balance of each Participant's
         Account shall be applied to purchase the number of whole and fractional
         shares of Stock as determined by dividing the balance of such
         Participant's Account as of such date by the option price determined
         pursuant to Section 7(b). The Participant's Account shall be debited
         accordingly. The Committee or its delegate shall make all
         determinations with respect to applicable currency exchange rates when
         applicable.

                  (b) Dividends Generally. Cash dividends paid on shares of
         Common Stock which have not been delivered to the Participant pending
         the Participant's request for delivery pursuant to Section 9(c), will
         be combined with the Participant's payroll deductions and applied to
         the purchase of Common Stock at the end of the Fiscal Quarter in which
         the cash dividends are received, subject to the Participant's
         withdrawal rights set forth in Section 10. Dividends paid in the form
         of shares of Common Stock or other securities with respect to shares
         that have been purchased under the Plan, but which have not been
         delivered to the Participant, will be credited to the shares that are
         credited to the Participant's Account.

                  (c) Pro-rata Allocation of Available Shares. If the total
         number of shares to be purchased under option by all Participants
         exceeds the number of shares authorized under Section 4, a pro-rata
         allocation of the available shares will be made among all Participants
         authorizing such payroll deductions based on the amount of their
         respective payroll deductions through the last day of the Fiscal
         Quarter.

         9.       OWNERSHIP AND DELIVERY OF SHARES.

                  (a) Beneficial Ownership. A Participant will be the beneficial
         owner of the shares of Common Stock purchased under the Plan on
         exercise of his option and will have all rights of beneficial ownership
         in such shares. Any dividends paid with respect to such shares will be
         credited to the Participant's Account and applied as provided in
         Section 8 until the shares are delivered to the Participant.

                  (b) Registration of Stock. Stock to be delivered to a
         Participant under the Plan will be registered in the name of the
         Participant, or if the Participant so directs by written notice to the
         designated Benefits Representative or brokerage firm, if any, prior to
         the

                                      -7-
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         purchase of Stock hereunder, in the names of the Participant and one
         such other person as may be designated by the Participant, as joint
         tenants with rights of survivorship or as tenants by the entireties, to
         the extent permitted by applicable law. Any such designation shall not
         apply to shares purchased after a Participant's death by the
         Participant's beneficiary or estate, as the case may be, pursuant to
         Section 11(b). If a brokerage firm is engaged by the Company to
         administer Accounts under the Plan, such firm shall provide such
         account registration forms as are necessary for each Participant to
         open and maintain a brokerage account with such firm.

                  (c) Delivery of Stock Certificates. The Company, or a
         brokerage firm or other entity selected by the Company, shall deliver
         to each Participant a certificate for the number of shares of Common
         Stock purchased by the Participant hereunder as soon as practicable
         after the close of each Fiscal Quarter. Alternatively, in the
         discretion of the Committee, the stock certificate may be delivered to
         a designated stock brokerage account maintained for the Participant and
         held in "street name" in order to facilitate the subsequent sale of the
         purchased shares.

                  (d) Regulatory Approval. In the event the Company is required
         to obtain from any commission or agency the authority to issue any
         stock certificate hereunder, the Company shall seek to obtain such
         authority. The inability of the Company to obtain from any such
         commission or agency the authority which counsel for the Company deems
         necessary for the lawful issuance of any such certificate shall relieve
         the Company from liability to any Participant, except to return to the
         Participant the amount of his Account balance used to exercise the
         option to purchase the affected shares.

         10. WITHDRAWAL OF PAYROLL DEDUCTIONS. At any time during a Fiscal
Quarter, but in no event later than 15 days (or such shorter prescribed by the
Committee or a Benefits Representative) prior to the last day of the Fiscal
Quarter, a Participant may elect to abandon his election to purchase Common
Stock under the Plan. By written notice to the designated Benefits
Representative on a form provided for such purpose, the Participant may thus
elect to withdraw all of the accumulated balance in his Account being held for
the purchase of Common Stock in accordance with Section 8(b). Partial
withdrawals will not be permitted. All such amounts will be paid to the
Participant as soon as administratively practical after receipt of his notice of
withdrawal. After receipt and acceptance of such withdrawal notice, no further
payroll deductions will be made from the Participant's Base Pay beginning as of
the next payroll period during the Fiscal Quarter in which the withdrawal notice
is received. The Committee, in its discretion, may determine that amounts
otherwise withdrawable hereunder by Participants shall be offset by an amount
that the Committee, in its discretion, determines to be reasonable to help
defray the administrative costs of effecting the withdrawal, including, without
limitation, fees imposed by any brokerage firm which administers such
Participant's Account. After a withdrawal, an otherwise eligible Participant may
resume participation in the Plan as of the first day of the Fiscal Quarter next
following his delivery of a payroll deduction authorization pursuant to the
procedures prescribed in Section 5(a).

                                      -8-
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         11.      TERMINATION OF EMPLOYMENT.

                  (a) General Rule. Upon termination of a Participant's
         Employment for any reason, his participation in the Plan will
         immediately terminate.

                  (b) Termination Due to Retirement, Death or Disability. If the
         Participant's termination of Employment is due to (i) retirement from
         Employment on or after his attainment of age 65, (ii) death or (iii)
         Disability, the Participant (or the Participant's personal
         representative or legal guardian in the event of Disability, or the
         Participant's beneficiary (as defined in Section 14) or the
         administrator of his will or executor of his estate in the event of
         death), will have the right to elect, either to:

                           (1) Withdraw all of the cash and shares of Common
                  Stock credited to the Participant's Account as of his
                  termination date; or

                           (2) Exercise the Participant's option for the
                  purchase of Common Stock on the last day of the Fiscal Quarter
                  (in which termination of Employment occurs) for the purchase
                  of the number of shares of Common Stock which the cash balance
                  credited to the Participant's Account as of the date of the
                  Participant's termination of Employment will purchase at the
                  applicable option price.

         The Participant (or, if applicable, such other person designated in the
         first paragraph of this Section 11(b)) must make such election by
         giving written notice to the Benefits Representative at such time and
         in such manner as prescribed from time to time by the Committee or
         Benefits Representative. In the event that no such written notice of
         election is received by the Benefits Representative within 30 days of
         the Participant's termination of Employment date, the Participant (or
         such other designated person) will automatically be deemed to have
         elected to withdraw the balance in the Participant's Account as of his
         termination date. Thereafter, any accumulated cash and shares of Common
         Stock credited to the Participant's Account as of his termination of
         Employment date will be delivered to or on behalf of the Participant as
         soon as administratively practicable.

                  (c) Termination Other Than for Retirement, Death or
         Disability. Upon termination of a Participant's Employment for any
         reason other than retirement, death, or Disability pursuant to Section
         11(b), the participation of the Participant in the Plan will
         immediately terminate. Thereafter, any accumulated cash and shares of
         Common Stock credited to the Participant's Account as of his
         termination of Employment date will be delivered to the Participant as
         soon as administratively practicable.

                  (d) Rehired Employees. Any Employee whose Employment
         terminates and who is subsequently rehired by an Employer shall be
         treated as a new Employee for purposes of eligibility to participate in
         the Plan.

         12 INTEREST. No interest will be paid or allowed on any money paid into
the Plan or credited to the Account of any Participant.

                                      -9-
<PAGE>

         13 ADMINISTRATION OF THE PLAN.

                  (a) No Participation in Plan by Committee Members. No options
         may be granted under the Plan to any member of the Committee during the
         term of his membership on the Committee.

                  (b) Authority of the Committee. Subject to the provisions of
         the Plan, the Committee shall have the plenary authority to (a)
         interpret the Plan and all options granted under the Plan, (b) make
         such rules as it deems necessary for the proper administration of the
         Plan, (c) make all other determinations necessary or advisable for the
         administration of the Plan, and (d) correct any defect or supply any
         omission or reconcile any inconsistency in the Plan or in any option
         granted under the Plan in the manner and to the extent that the
         Committee deems advisable. Any action taken or determination made by
         the Committee pursuant to this and the other provisions of the Plan
         shall be conclusive on all parties. The act or determination of a
         majority of the Committee shall be deemed to be the act or
         determination of the Committee. By express written direction, or by the
         day-to-day operation of Plan administration, the Committee may delegate
         the authority and responsibility for the day-to-day administrative or
         ministerial tasks of the Plan to a Benefits Representative, including a
         brokerage firm or other third party engaged for such purpose.

                  (c) Meetings. The Committee shall designate a chairman from
         among its members to preside at its meetings, and may designate a
         secretary, without regard to whether that person is a member of the
         Committee, who shall keep the minutes of the proceedings. 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 of a majority of its members, taken at a meeting, or
         by the affirmative vote of all of its members taken without a meeting.
         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.

                  (d) 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, Participants, and their estates and
         beneficiaries.

                  (e) Expenses of Committee. The Committee may employ legal
         counsel, including, without limitation, independent legal counsel and
         counsel regularly employed by the Company, consultants and 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, consultant 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.

                  (f) 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

                                      -10-
<PAGE>

         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.

         14 DESIGNATION OF BENEFICIARY. At such time, in such manner, and using
such form as shall be prescribed from time to time by the Committee or a
Benefits Representative, a Participant may file a written designation of a
beneficiary who is to receive any Common Stock and/or cash credited to the
Participant's Account at the Participant's death. Such designation of
beneficiary may be changed by the Participant at any time by giving written
notice to the Benefits Representative at such time and in such form as
prescribed. Upon the death of a Participant, and receipt by the Benefits
Representative of proof of the identity at the Participant's death of a
beneficiary validly designated under the Plan, the Benefits Representative will
take appropriate action to ensure delivery of such Common Stock and/or cash to
such beneficiary. In the event of the death of a Participant and the absence of
a beneficiary validly designated under the Plan who is living at the time of
such Participant's death, the Benefits Representative will take appropriate
action to ensure delivery of such Common Stock and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or
administrator has been appointed (to the knowledge of the Benefits
Representative), the Committee, in its discretion, may direct delivery of such
Common Stock and/or cash to the spouse or to any one or more dependents of the
Participant as the Committee may designate in its discretion. No beneficiary
will, prior to the death of the Participant, acquire any interest in any Common
Stock or cash credited to the Participant's Account.

         15 TRANSFERABILITY. No amounts credited to a Participant's Account,
whether cash or Common Stock, nor any rights with regard to the exercise of an
option or to receive Common Stock under the Plan, may be assigned, transferred,
pledged, or otherwise disposed of in any way by the Participant other than by
will or the laws of descent and distribution. Any such attempted assignment,
transfer, pledge, or other disposition will be void and without effect.

         Each option shall be exercisable, during the Participant's lifetime,
only by the Employee to whom the option was granted. The Company shall not
recognize, and shall be under no duty to recognize, any assignment or purported
assignment by an employee of his option or of any rights under his option.

         16 NO RIGHTS OF STOCKHOLDER UNTIL CERTIFICATE ISSUED. With respect to
shares of Stock subject to an option, an optionee shall not be deemed to be a
stockholder, and the optionee shall not have any of the rights or privileges of
a stockholder. An optionee shall have the rights and

                                      -11-
<PAGE>

privileges of a stockholder when, but not until, a certificate for shares has
been issued to the optionee following exercise of his option.

         17 CHANGES IN THE COMPANY'S CAPITAL STRUCTURE. The Board shall make or
provide for such adjustments in the maximum number of shares specified in
Section 4 and the number and option price of shares subject to options
outstanding under the Plan as the Board shall determine is appropriate to
prevent dilution or enlargement of the rights of Participants that otherwise
would result from any stock dividend, stock split, stock exchange, combination
of shares, recapitalization or other change in the capital structure of the
Company, merger, consolidation, spin-off of assets, reorganization, partial or
complete liquidation, issuance of rights or warrants to purchase securities, any
other corporate transaction or event having an effect similar to any of the
foregoing.

         In the event of a merger of one or more corporations into the Company,
or a consolidation of the Company and one or more corporations in which the
Company shall be the surviving corporation, each Participant, at no additional
cost, shall be entitled, upon his payment for all or part of the Common Stock
purchasable by him under the Plan, to receive (subject to any required action by
shareholders) in lieu of the number of shares of Common Stock which he was
entitled to purchase, the number and class of shares of stock or other
securities to which such holder would have been entitled pursuant to the terms
of the agreement of merger or consolidation if, immediately prior to such merger
or consolidation, such holder had been the holder of record of the number of
shares of Common Stock equal to the number of shares purchasable by the
Participant hereunder.

         If the Company shall not be the surviving corporation in any
reorganization, merger or consolidation (or survives only as a subsidiary of an
entity other than a previously wholly-owned subsidiary of the Company), or if
the Company is to be dissolved or liquidated or sell substantially all of its
assets or stock to another corporation or other entity , then, unless a
surviving corporation assumes or substitutes new options (within the meaning of
Section 424(a) of the Code) for all options then outstanding, (i) the date of
exercise for all options then outstanding shall be accelerated to dates fixed by
the Committee prior to the effective date of such corporate event, (ii) a
Participant may, at his election by written notice to the Company, either (x)
withdraw from the Plan pursuant to Section 10 and receive a refund from the
Company in the amount of the accumulated cash and Stock balance in the
Participant's Account, (y) exercise a portion of his outstanding options as of
such exercise date to purchase shares of Stock, at the option price, to the
extent of the balance in the Participant's Account, or (z) exercise in full his
outstanding options as of such exercise date to purchase shares of Stock, at the
option price, which exercise shall require such Participant to pay the related
option price, and (iii) after such effective date any unexercised option shall
expire. The date the Committee selects for the exercise date under the preceding
sentence shall be deemed to be the exercise date for purposes of computing the
option price per share of Stock. If the Participant elects to exercise all or
any portion of the options, the Company shall deliver to such Participant a
stock certificate issued pursuant to Section 9(d) for the number of shares of
Stock with respect to which such options were exercised and for which such
Participant has paid the option price. If the Participant fails to provide the
notice set forth above within three days after the exercise date selected by the
Committee under this Section 17, the Participant shall be conclusively presumed
to have requested to withdraw from the Plan and receive payment of the
accumulated balance of his Account. The Committee shall take such steps in
connection with such transactions as the

                                      -12-
<PAGE>

Committee shall deem necessary or appropriate to assure that the provisions of
this Section 17 are effectuated for the benefit of the Participants.

         Except as expressly provided in this Section 17, 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 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 or price of shares of
Stock then available for purchase under the Plan.

         18 PLAN EXPENSES; USE OF FUNDS; NO INTEREST PAID. The expenses of the
Plan shall be paid by the Company except as otherwise provided herein or under
the terms and conditions of any agreement entered into between the Participant
and any brokerage firm engaged to administer Accounts. All funds received or
held by the Company under the Plan shall be included in the general funds of the
Company free of any trust or other restriction, and may be used for any
corporate purpose. No interest shall be paid to any Participant or credited to
his Account under the Plan.

         19 TERM OF THE PLAN. The Plan shall become effective as of November 1,
1997, subject to approval by the holders of the majority of the Common Stock
present and represented at a special or annual meeting of the Company's
stockholders held on or before 12 months from November 1, 1997.

         Except with respect to options then outstanding, if not terminated
sooner under the provisions of Section 20, no further options shall be granted
under the Plan at the earlier of (i) October 31, 2007, or (ii) the point in time
when no shares of Stock reserved for issuance under Section 4 are available.

         20 AMENDMENT OR TERMINATION OF THE PLAN. The Board shall have the
plenary authority to terminate or amend the Plan; provided, however, that the
Board shall not, without the approval of the stockholders of the Company, (a)
increase the maximum number of shares which may be issued under the Plan
pursuant to Section 4, (b) amend the requirements as to the class of employees
eligible to purchase Stock under the Plan, or (c) permit the members of the
Committee to purchase Stock under the Plan. No termination, modification, or
amendment of the Plan shall adversely affect the rights of a Participant with
respect to an option previously granted to him under such option without his
written consent.

         In addition, to the extent that the Committee determines that, in the
opinion of counsel, (a) the listing for qualification requirements of any
national securities exchange or quotation system on which the Company's Common
Stock is then listed or quoted, or (b) the Code or Treasury regulations issued
thereunder, require stockholder approval in order to maintain compliance with
such listing or qualification requirements or to maintain any favorable tax
advantages or qualifications, then the Plan shall not be amended by the Board in
such respect without first obtaining such required approval of the Company's
stockholders.

                                      -13-
<PAGE>

         21 SECURITIES LAWS RESTRICTIONS ON EXERCISE. The Committee may, in its
discretion, require as conditions to the exercise of any option that the shares
of Common Stock reserved for issuance upon the exercise of the option shall have
been duly listed, upon official notice of issuance, upon a stock exchange, and
that either:

                  (a) a Registration Statement under the Securities Act of 1933,
         as amended, with respect to said shares shall be effective; or

                  (b) the participant shall have represented at the time of
         purchase, in form and substance satisfactory to the Company, that it is
         his intention to purchase the Stock for investment and not for resale
         or distribution.

         22 SECTION 16 COMPLIANCE. The Plan, and transactions hereunder by
persons subject to Section 16 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), are intended to comply with all applicable conditions of
Rule 16b-3 or any successor exemption provision promulgated under the Exchange
Act. To the extent that any provision of the Plan or any action by the Committee
or the Board fails, or is deemed to fail, to so comply, such provision or action
shall be null and void but only to the extent permitted by law and deemed
advisable by the Committee in its discretion.

         23 WITHHOLDING TAXES FOR DISQUALIFYING DISPOSITION. Whenever shares of
Stock that were received upon the exercise of an option granted under the Plan
are disposed of within two years after the date of grant of such option or one
year from the date of exercise of such option (within the meaning of Section
423(a)(1)), the Company shall have the right to require the Participant to remit
to the Company in cash an amount sufficient to satisfy federal, state and local
withholding and payroll tax requirements, if any, attributable to such
disposition prior to authorizing such disposition or permitting the delivery of
any certificate or certificates with respect thereto.

         24 NO RESTRICTION ON CORPORATE ACTION. Subject to Section 20, nothing
contained in the Plan shall be construed to prevent the Board or any Employer
from taking any corporate action which is deemed by the Employer to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any option granted under the Plan. No Employee,
beneficiary or other person shall have any claim against any Employer as a
result of any such action.

         25 USE OF FUNDS. The Employers shall promptly transfer all amounts
withheld under Section 6 to the Company or to any brokerage firm engaged to
administer Accounts, as directed by the Company. All payroll deductions received
or held by the Company under the Plan may be used by the Company for any
corporate purpose, and the Company will not be obligated to segregate such
payroll deductions.

         26 MISCELLANEOUS.

                  (a) Options Carry Same Rights and Privileges. To the extent
         required to comply with the requirements of Section 423 of the Code,
         all Employees granted options under the Plan to purchase Common Stock
         shall have the same rights and privileges hereunder.

                                      -14-
<PAGE>

                  (b) Headings. Any headings or subheadings in this Plan are
         inserted for convenience of reference only and are to be ignored in the
         construction or interpretation of any provisions hereof.

                  (c) Gender and Tense. Any words herein used in the masculine
         shall be read and construed in the feminine when appropriate. Words in
         the singular shall be read and construed as though in the plural, and
         vice-versa, when appropriate.

                  (d) Governing Law. This Plan shall be governed and construed
         in accordance with the laws of the State of Delaware to the extent not
         preempted by federal law.

                  (e) Regulatory Approvals and Compliance. The Company's
         obligation to sell and deliver Common Stock under the Plan is at all
         times subject to all approvals of and compliance with the (i)
         regulations of any applicable stock exchanges and (ii) any governmental
         authorities required in connection with the authorization, issuance,
         sale or delivery of such Stock, as well as federal, state and foreign
         securities laws.

                  (f) Severability. In the event that any provision of this 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 had not been
         included herein.

                  (g) Refund of Contributions on Noncompliance with Tax Law. In
         the event the Company should receive notice that this Plan fails to
         qualify as an "employee stock purchase plan" under Section 423 of the
         Code, all then-existing Account balances will be paid to the
         Participants and the Plan shall immediately terminate.

                  (h) No Guarantee of Tax Consequences. The Board, Employer and
         the Committee do not make any commitment or guarantee that any tax
         treatment will apply or be available to any person participating or
         eligible to participate in the Plan, including, without limitation, any
         tax imposed by the United States or any state thereof, any estate tax,
         or any tax imposed by a foreign government.

                  (i) Company as Agent for the Employers. Each Employer, by
         adopting the Plan, appoints the Company and the Board as its agents to
         exercise on its behalf all of the powers and authorities hereby
         conferred upon the Company and the Board by the terms of the Plan,
         including, but not by way of limitation, the power to amend and
         terminate the Plan.

                            [SIGNATURE PAGE FOLLOWS]

                                      -15-
<PAGE>

         IN WITNESS WHEREOF, this Plan, as amended and restated, is hereby
executed by a duly authorized officer of the Company, on this 11th day of
December 2001.

ATTEST:                                   VERITAS DGC INC.

<TABLE>
<S>                                       <C>
By:  /s/  Larry L. Worden                  By:  /s/  Matthew D. Fitzgerald
   ---------------------------------          -----------------------------------------
   Larry L. Worden                            Matthew D. Fitzgerald,
   Vice President, General Counsel            Executive Vice President, Chief Financial
    & Secretary                                Officer & Treasurer
</TABLE>

                                      -16-<PAGE>

                                                                    Exhibit 4(e)

                       FIXED RATE GLOBAL MEDIUM-TERM NOTE

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY (THE "DEPOSITORY") TO A NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITORY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

REGISTERED                                                PRINCIPAL AMOUNT
No. FX ________________     CUSIP No. ________________    $_____________________

                            MERRILL LYNCH & CO., INC.
                                MEDIUM-TERM NOTE,
                                    SERIES B
                                  (Fixed Rate)

ORIGINAL ISSUE DATE:              INTEREST RATE:                STATED MATURITY:

INTEREST PAYMENT DATES:           REGULAR RECORD DATE:
(May 15 and November 15,          (Fifteen days prior to the
unless otherwise specified)       applicable Interest Payment Date,
                                  unless otherwise specified)

OPTIONAL REPAYMENT DATE(S):

DENOMINATIONS:                                            ADDENDUM ATTACHED:
(Integral multiples of $1,000,                            : Yes
unless otherwise specified)                               : No

OTHER PROVISIONS:
     Notwithstanding anything to the contrary herein, (i) this Note may be
redeemed at the option of the Company only on any of Redemption Date(s)
specified below as described herein at a redemption price of 100% of the
principal amount thereof plus interest accrued to the Redemption Date; (ii)
notice for this Note to be redeemed at the option of the Company on a Redemption
Date shall be given not more than 7 nor less than 5 calendar days prior to the
Redemption Date; and (iii) interest will be computed on the basis of the actual
number of days in an Interest Period and a 360-day year.

REDEMPTION DATE(S):

<PAGE>

     MERRILL LYNCH & CO., INC., a Delaware corporation ("Issuer" or the
"Company," which terms include any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
CO., or registered assigns, the principal sum of

DOLLARS
on the Stated Maturity specified above (except to the extent redeemed or repaid
prior to the Stated Maturity), and to pay interest thereon at the Interest Rate
per annum specified above, until the principal hereof is paid or duly made
available for payment. Reference herein to "this Note", "hereof", "herein" and
comparable terms shall include an Addendum hereto if an Addendum is specified
above.

     The Company will pay interest on each Interest Payment Date specified
above, commencing on the first Interest Payment Date next succeeding the
Original Issue Date specified above, and on the Stated Maturity or any
Redemption Date or Optional Repayment Date (as defined below) (the date of each
such Stated Maturity, Redemption Date and Optional Repayment Date and the date
on which principal or an installment of principal is due and payable by
declaration of acceleration pursuant to the Indenture being referred to
hereinafter as a "Maturity" with respect to principal payable on such date);
provided, however, that if the Original Issue Date is between a Regular Record
Date (as defined below) and the next succeeding Interest Payment Date, interest
payments will commence on the second Interest Payment Date succeeding the
Original Issue Date. Unless otherwise specified above, the "Regular Record Date"
shall be the date 15 calendar days (whether or not a Business Day) prior to the
applicable Interest Payment Date. Interest on this Note will accrue from and
including the most recent Interest Payment Date to which interest has been paid
or duly provided for or, if no interest has been paid, from the Original Issue
Date specified above, to, but excluding such Interest Payment Date. If the
Maturity or an Interest Payment Date falls on a day which is not a Business Day,
the payment due on such Maturity or Interest Payment Date will be paid on the
next succeeding Business Day with the same force and effect as if made on such
Maturity or Interest Payment Date, as the case may be, and no interest shall
accrue with respect to such payment for the period from and after such Maturity
or Interest Payment Date. The interest so payable and punctually paid or duly
provided for on any Interest Payment Date will as provided in the Indenture be
paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such Interest Payment Date. Any such interest which is payable, but not
punctually paid or duly provided for on any Interest Payment Date (herein called
"Defaulted Interest"), shall forthwith cease to be payable to the registered
Holder on such Regular Record Date, and may be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to the Holder of this
Note not less than 10 days prior to such Special Record Date, or may be paid at
any time in any other lawful manner, all as more fully provided in the
Indenture.

     Payment of the principal of and interest on this Note will be made at the
Office or Agency of the Company maintained by the Company for such purpose in
the Borough of Manhattan, The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.

     Unless the certificate of authentication hereon has been executed by or on
behalf of JPMorgan Chase Bank, the Trustee for this Note under the Indenture, or
its successor thereunder, by the manual signature of one of its authorized
officers, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

     This Note is one of a duly authorized issue of Securities (hereinafter
called the "Securities") of the Company designated as its Medium-Term Notes,
Series B (the "Notes"). The Securities are issued and to be issued under an
indenture (the "Indenture") dated as of October 1, 1993, between the Company and
JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank (successor by
merger to The Chase Manhattan Bank (National Association)) (herein called the
"Trustee", which term includes any successor Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights thereunder of the Company, the Trustee
and the Holders of the Notes and the terms upon which the Notes are to be
authenticated and delivered. The terms of individual Notes may vary with respect
to interest rates or interest rate formulas, issue dates, maturity, redemption,
repayment, currency of payment and otherwise as provided in the Indenture.

     The Notes are issuable only in registered form without coupons in
denominations, unless otherwise specified above, of $1,000 and integral
multiples thereof. As provided in the Indenture and subject to certain

                                       2

<PAGE>

limitations therein set forth, the Notes are exchangeable for a like aggregate
principal amount of Notes as requested by the Holder surrendering the same. If
(x) the Depository is at any time unwilling or unable to continue as depository
and a successor depository is not appointed by the Company within 60 days, (y)
the Company executes and delivers to the Trustee a Company Order to the effect
that this Note shall be exchangeable or (z) an Event of Default has occurred and
is continuing with respect to the Notes, this Note shall be exchangeable for
Notes in definitive form of like tenor and of an equal aggregate principal
amount, in authorized denominations. Such definitive Notes shall be registered
in such name or names as the Depository shall instruct the Trustee. If
definitive Notes are so delivered, the Company may make such changes to the form
of this Note as are necessary or appropriate to allow for the issuance of such
definitive Notes.

     This Note is not subject to any sinking fund.

     This Note may be subject to repayment at the option of the Holder prior to
its Stated Maturity on any Holder's Optional Repayment Date(s), if any,
indicated above. If no Optional Repayment Dates are set forth above, this Note
may not be so repaid at the option of the Holder hereof prior to the Stated
Maturity. On any Optional Repayment Date this Note shall be repayable in whole
or in part in an amount equal to $1,000 or any integral multiple thereof
(provided that any remaining principal amount shall be an authorized
denomination) at the option of the Holder hereof at a repayment price equal to
100% of the principal amount to be repaid, together with interest thereon
payable to the date of repayment. For this Note to be repaid in whole or in part
at the option of the Holder hereof, this Note must be received, with the form
entitled "Option to Elect Repayment" below duly completed, by the Trustee at its
office at 55 Water Street, Room 234, Corporate Trust Securities Window, New
York, New York 10041 or such address which the Company shall from time to time
notify the Holder hereof ("Corporate Trust Office"), not more than 60 nor less
than 30 days prior to an Optional Repayment Date. This Note must be received by
the Trustee by 5:00 P.M., New York City time, on the last day for giving such
notice. Exercise of such repayment option by the Holder hereof shall be
irrevocable. In the event of payment of this Note in part only, a new Note for
the unpaid portion hereof shall be issued in the name of the Holder hereof upon
the surrender hereof.

     This Note may be redeemed at the option of the Company prior to its Stated
Maturity on any date on and after the Initial Redemption Date, if any, specified
above (the "Redemption Date"). If no Initial Redemption Date is set forth above,
this Note may not be redeemed at the option of the Company prior to the Stated
Maturity. On and after the Initial Redemption Date, if any, this Note may be
redeemed at any time in whole or from time to time in part in increments of
$1,000 (provided that any remaining principal amount shall be an authorized
denomination) at the option of the Company at the applicable Redemption Price
(as defined below) together with interest thereon payable to the Redemption
Date, on notice given not more than 60 nor less than 30 days prior to the
Redemption Date. In the event of redemption of this Note in part only, a new
Note for the unredeemed portion hereof shall be issued in the name of the Holder
hereof upon the surrender hereof.

     If this Note is redeemable at the option of the Company prior to its Stated
Maturity, the "Redemption Price" shall initially be the Initial Redemption
Percentage, specified above, of the principal amount of this Note to be redeemed
and shall decline at each anniversary of the Initial Redemption Date by the
Annual Redemption Percentage Reduction, if any, specified above, of the
principal amount to be redeemed until the Redemption Price is 100% of such
principal amount.

     Interest payments on this Note shall include interest accrued from, and
including, the Original Issue Date indicated above, or the most recent date to
which interest has been paid or duly provided for, to, but excluding, the
related Interest Payment Date or Maturity, as the case may be, at the rate per
annum stated on the face hereof until the principal amount hereof is paid or
made available for payment. Unless otherwise specified above, interest will be
computed on the basis of a 360-day year of twelve 30-day months for the period
specified hereunder.

     Any provision contained herein with respect to the calculation of the rate
of interest applicable to this Note, its payment dates or any other matter
relating hereto may be modified as specified in an Addendum relating hereto if
so specified above or as set forth under Other Provisions if so set forth above.

     If an Event of Default (as defined in the Indenture) with respect to the
Notes shall occur and be continuing, the principal of all the Notes may be
declared due and payable in the manner and with the effect provided in the
Indenture.

                                       3

<PAGE>

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of 66 2/3% in aggregate principal amount of the
Securities at the time Outstanding, as defined in the Indenture, of each series
affected thereby. The Indenture also contains provisions permitting the Holders
of specified percentages in aggregate principal amount of the Securities of each
series at the time Outstanding, on behalf of the Holders of all the Securities
of each series, to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the time, place and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations set forth
therein and on the face hereof, the transfer of this Note may be registered on
the Security Register of the Company, upon surrender of this Note for
registration of transfer at the office or agency of the Company in the Borough
of Manhattan, The City of New York, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company duly executed
by, the Holder hereof or by his attorney duly authorized in writing, and
thereupon one or more new Notes of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     The Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York.

                                       4

<PAGE>

     All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed, manually or in facsimile, and an imprint or facsimile of its corporate
seal to be imprinted hereon.

Dated:
       ------------------------

                                       MERRILL LYNCH & CO., INC.

                                       By:
                                           -------------------------------------
                                                      John C. Stomber
                                                    Senior Vice President
                                                           and
                                                        Treasurer

[FACSIMILE OF SEAL]

                                       Attest:

                                       By:
                                           -------------------------------------
                                                     Andrea L. Dulberg
                                                        Secretary

CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the
series designated therein referred to
in the within-mentioned Indenture.

JPMorgan CHASE BANK,
         as Trustee

By:
    ---------------------------------
           Authorized Officer

                                       5

<PAGE>

                            OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request(s) and instruct(s) the Company to
repay this Note (or portion hereof specified below) pursuant to its terms at a
price equal to the principal amount hereof together with interest to the
repayment date, to the undersigned, at
                                       -----------------------------------------

--------------------------------------------------------------------------------
         (Please print or typewrite name and address of the undersigned)

     For this Note to be repaid, the Trustee must receive at its Corporate Trust
Office, or at such other place or places of which the Company shall from time to
time notify the Holder of this Note, not more than 60 nor less than 30 days
prior to an Optional Repayment Date, if any, shown on the face of this Note,
this Note with this "Option to Elect Repayment" form duly completed. This Note
notice must be received by the Trustee by 5:00 P.M., New York City time, on the
last day for giving such notice.

     If less than the entire principal amount of this Note is to be repaid,
specify the portion hereof (which shall be in an amount equal to $1,000 or an
integral multiple thereof, provided that any remaining principal amount is equal
to an authorized denomination) which the Holder elects to have repaid and
specify the denomination or denominations (which shall be in an amount equal to
an authorized denomination) of the Notes to be issued to the Holder for the
portion of this Note not being repaid (in the absence of any such specification,
one such Note will be issued for the portion not being repaid).

$
 ---------------------------

Date:
     -----------------------

                            ----------------------------------------------------
                            NOTICE: The signature on this Option to Elect
                            Repayment must correspond with the name as written
                            upon the face of this Note in every particular,
                            without alteration or enlargement or any change
                            whatever.

                                       6

<PAGE>

                            ASSIGNMENT/TRANSFER FORM
                            ------------------------

     FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s),
assign(s) and transfer(s) unto
(insert Taxpayer Identification No.)
                                     -------------------------------------------

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

--------------------------------------------------------------------------------
(Please print or typewrite name and address including postal zip code of
assignee)

--------------------------------------------------------------------------------
the within Note and all rights thereunder, hereby irrevocably constituting and
appointing _________________________________________ attorney to transfer said
Note on the books of the Company with full power of substitution in the
premises.

Date:
     ----------------------         --------------------------------------------
                                    NOTICE: The signature of the registered
                                    Holder to this assignment must correspond
                                    with the name as written upon the face of
                                    the within instrument in every particular,
                                    without alteration or enlargement or any
                                    change whatsoever.

                                       7

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