-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T7rDXIfsgZXftCsBLGAa72hPC5XayDp8pfvfrVIOPS4XM85TayvK80MDgTlqGCN4 CqZNATRQ89cathUKGbev5w== 0000950129-98-004096.txt : 19981001 0000950129-98-004096.hdr.sgml : 19981001 ACCESSION NUMBER: 0000950129-98-004096 CONFORMED SUBMISSION TYPE: S-8 PUBLIC DOCUMENT COUNT: 6 FILED AS OF DATE: 19980930 EFFECTIVENESS DATE: 19980930 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: VERITAS DGC INC CENTRAL INDEX KEY: 0000028866 STANDARD INDUSTRIAL CLASSIFICATION: OIL AND GAS FIELD EXPLORATION SERVICES [1382] IRS NUMBER: 760343152 STATE OF INCORPORATION: DE FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: S-8 SEC ACT: SEC FILE NUMBER: 333-65081 FILM NUMBER: 98718888 BUSINESS ADDRESS: STREET 1: 3701 KIRBY DR STREET 2: STE 112 CITY: HOUSTON STATE: TX ZIP: 77098 BUSINESS PHONE: 7135128300 MAIL ADDRESS: STREET 1: 3701 KIRBY DRIVE SUITE 112 CITY: HOUSTON STATE: TX ZIP: 77098 FORMER COMPANY: FORMER CONFORMED NAME: DIGICON INC DATE OF NAME CHANGE: 19920703 S-8 1 VERITAS DGC INC. 1 As filed with the Securities and Exchange Commission on September 30, 1998. Registration No. _________ ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------------ FORM S-8 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ------------------------------------ VERITAS DGC INC. (Exact name of registrant as specified in its charter) DELAWARE 76-0343152 (State or Other Jurisdiction (I.R.S. Employer of Incorporation or Organization) Identification No.)
3701 KIRBY DRIVE, SUITE 112 HOUSTON, TEXAS 77098 (713) 512-8300 (Address, including Zip Code, of Registrant's Principal Executive Offices) ------------------------------------ VERITAS DGC INC. SECOND AMENDED AND RESTATED 1992 EMPLOYEE NONQUALIFIED STOCK OPTION PLAN VERITAS DGC INC. AMENDED AND RESTATED 1992 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN VERITAS DGC INC. RESTRICTED STOCK AGREEMENTS VERITAS DGC INC. RESTRICTED STOCK PLAN VERITAS DGC INC. KEY CONTRIBUTOR INCENTIVE PLAN FOR FISCAL YEAR 1998 (AS AMENDED AND RESTATED SEPTEMBER 29, 1998) (Full Title of Plan) ------------------------------------ Name, Address, Telephone and Copy of Communications to: Number of Agent for Service: T. WILLIAM PORTER ANTHONY TRIPODO PORTER & HEDGES, L.L.P. 3701 KIRBY DRIVE, SUITE 112 700 LOUISIANA, 35TH FLOOR HOUSTON, TEXAS 77098 HOUSTON, TEXAS 77002 (713) 512-8300 (713) 226-0600
------------------------------------ CALCULATION OF REGISTRATION FEE
==================================================================================================================== PROPOSED MAXIMUM PROPOSED AMOUNT TO OFFERING MAXIMUM AGGREGATE AMOUNT OF TITLE OF SECURITIES TO BE REGISTERED BE REGISTERED PRICE PER SHARE (1) OFFERING PRICE (2) REGISTRATION FEE - -------------------------------------------------------------------------------------------------------------------- Common Stock, par value $.01 per share 50,000 shs. $16.906 $845,300 $250.00 ====================================================================================================================
(1) Pursuant to Rule 416(a), also registered hereunder is an indeterminate number of shares of Common Stock issuable as a result of the anti-dilution provisions of certain of the Plans. (2) Pursuant to Rule 457(c), the registration fee is calculated on the basis of the average of the high and low sale prices for the Common Stock on the New York Stock Exchange on September 29, 1998, which was $16.906. Pursuant to Rule 457(h), the registration fee is calculated with respect to the maximum number of the registrant's securities issuable under the Plan. THIS REGISTRATION STATEMENT ALSO CONSTITUTES POST-EFFECTIVE AMENDMENT NO. 1 TO REGISTRANT'S REGISTRATION STATEMENT NO. 333-57603, POST-EFFECTIVE AMENDMENT NO. 2 TO REGISTRANT'S REGISTRATION STATEMENT NO. 333-48953, POST-EFFECTIVE AMENDMENT NO. 3 TO REGISTRANT'S REGISTRATION STATEMENT NO. 333-41829 AND POST-EFFECTIVE AMENDMENT NO. 4 TO REGISTRANT'S REGISTRATION STATEMENT NO. 333-09679, WHICH RELATE TO AN AGGREGATE OF 2,896,050 SHARES OF COMMON STOCK. THE $23,444.67 AGGREGATE REGISTRATION FEE WITH RESPECT TO SUCH 2,896,050 SHARES OF COMMON STOCK PREVIOUSLY REGISTERED HAS BEEN PAID. ================================================================================ 2 PART II INFORMATION REQUIRED IN THE REGISTRATION STATEMENT ITEM 3. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The contents of the following documents filed by Veritas DGC Inc., a Delaware corporation (the "Company or "Registrant"), with the Securities and Exchange Commission ("Commission") are incorporated into this registration statement ("Registration Statement") by reference: (a) the Company's annual report on Form 10-K for the fiscal year ended July 31, 1997, filed with the Commission on October 20, 1997; (b) the description of the Company's Common Stock set forth in the Company's registration statement on Form 8-A filed with the Commission on August 14, 1997, and any amendment or report filed for the purpose of updating any such description. All documents filed by the Company with the Commission pursuant to Section 13(a) and 13(c), 14 and 15(d) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act") after the filing date of the Registration Statement and before the filing of a post-effective amendment to the Registration Statement which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in the Registration Statement and to be part hereof from the date of filing such documents. The Company will provide without charge to each participant in the Company's Key Contributor Incentive Plan for Fiscal Year 1998 (as Amended and Restated September 29, 1998), upon written or oral request of such persons, a copy (without exhibits, unless such exhibits are specifically incorporated by reference) of any or all of the documents incorporated by reference pursuant to this Item 3. ITEM 4. DESCRIPTION OF SECURITIES COMMON STOCK The Company is authorized to issue 40,000,000 shares of Common Stock, par value $.01 per share, and at July 31, 1997, there were 22,349,111 shares outstanding, and 1,318,364 shares were reserved for issuance upon exercise of outstanding warrants and options. Included in shares outstanding are 2,367,071 Exchangeable Shares of Veritas Energy Services, Inc., a wholly-owned subsidiary of the Company, which are exchangeable for, and vote with the Common Stock, and are identical to, the Common Stock in all material respects. Each share of Common Stock has one vote on all matters presented to the stockholders. Subject to the rights and preferences of any Preferred Stock (as defined below) which may be designated and issued, the holders of Common Stock are entitled to receive dividends, if and when declared by the board of directors, and are entitled on liquidation to all assets remaining after the payment of liabilities. The Common Stock has no preemptive or other subscription rights. Outstanding shares of Common Stock are and the shares of Common Stock offered by the Company, when issued and paid for, will be fully paid and nonassessable. Because the Common Stock does not have cumulative voting rights, the holders of more than 50% of the shares may, if they choose to do so, elect all of the directors and, in that event, the holders of the remaining shares will not be able to elect any directors. ChaseMellon Shareholder Services, L.L.C., Dallas, Texas, is the transfer agent and registrar for the Common Stock. PREFERRED STOCK The board of directors of the Company, without any action by the stockholders of the Company, is authorized to issue up to 1,000,000 shares of preferred stock, par value $.01 per share (the "Preferred Stock"). Shares of Preferred Stock may be issued in one or more series or classes, which will have such designation, voting powers, preferences and relative, participating, optional or other rights and such qualifications, limitations or restrictions thereon, including voting rights, dividends, rights on liquidation, dissolution or winding up, conversion or exchange rights and redemption -2- 3 provisions, as set forth in the resolutions adopted by the Board of Directors providing for the issuance of such stock and as permitted by the Delaware General Corporation Law (the "DGCL"). A series of 400,000 shares of Preferred Stock has been designated for use in connection with the Rights Plan (as defined below). Although the Company has no other current plans for the possible issuance of Preferred Stock, the issuance of shares of Preferred Stock, or the issuance of securities convertible into or exchangeable for such shares, could be used to discourage an unsolicited acquisition proposal that some or a majority of the stockholders believe to be in their interests or in which stockholders are to receive a premium for their stock over the then current market price. In addition, the issuance of Preferred Stock could adversely affect the voting power of the holders of Common Stock. The Board of Directors does not presently intend to seek stockholder approval prior to any issuance of currently authorized stock, unless otherwise required by law or stock exchange rules. RIGHTS PLAN Pursuant to a Rights Agreement between the Company and ChaseMellon Shareholder Services, L.L.C., Dallas, Texas (the "Rights Plan"), each share of Common Stock has attached to it one Right (the "Right"), represented by the certificate which is also the certificate representing the Common Stock. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $.01 per share (the "Series A Preferred Stock"), of the Company at a purchase price of $100, subject to adjustment (the "Purchase Price"). The Rights will separate from the Company's Common Stock and a "Distribution Date" will occur upon the earlier of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons (an "Acquiring Person") has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of Common Stock (the "Stock Acquisition Date"), or (ii) 10 business days (or such later date as the Board of Directors of the Company shall determine) following the commencement of a tender or exchange offer which would result in a person or group beneficially owning 15% or more of such outstanding shares of Common Stock (the "Tender Offer Date"). Until the Distribution Date, the Rights will be transferred with and only with the Common Stock certificates. The Rights are not exercisable until the Distribution Date and, unless earlier redeemed by the Company as described below, will expire at the close of business on May 15, 2007. In the event that, among other things, (i) the Company is the surviving corporation in a merger or other business combination with an Acquiring Person or (ii) any person shall become the beneficial owner of more than 15% of the outstanding shares of the Common Stock (except (A) pursuant to certain consolidations or mergers involving the Company or sales or transfers of the combined assets or earning power of the Company and its subsidiaries, or (B) pursuant to an offer for all outstanding shares of the Common Stock at a price and upon terms and conditions which a majority of the Continuing Directors (as defined below) determines to be in the best interests of the Company and its stockholders) each holder of a Right (other than the Acquiring Person, certain related parties and transferees) will thereafter have the right to purchase, upon exercise, a one-thousandth fractional share interest in Series A Preferred Stock each of which is for all purposes essentially equivalent to a share of Common Stock (or, in certain circumstances, cash, property or other securities of the Company) having a value equal to two times the exercise price of the Right. For example, at the exercise price of $100 per Right, each Right not owned by an Acquiring Person (or by certain related parties and transferees) following an event set forth above would entitle its holder to purchase $200 worth of Series A Preferred Stock (or other consideration, as noted above) for $100. Assuming that the Series A Preferred Stock had a per share market price of $40 at such time (with each one-thousandth share of Series A Preferred Stock valued at one share of Common Stock), the holder of each valid Right would be entitled to purchase 5 shares of the Series A Preferred Stock for $100. Rights are not exercisable following the occurrence of any of the events described above until the Rights are no longer redeemable by the Company as described below. Notwithstanding any of the foregoing, following the occurrence of any of the events described in this paragraph, all Rights that are, or (under certain circumstances specified in the Rights Plan) were, beneficially owned by any Acquiring Person will be null and void. In the event that, at any time following the Stock Acquisition Date, (i) the Company is acquired in a merger or other business combination transaction in which the Company is not the surviving corporation, (ii) the Company is the surviving corporation in a consolidation or merger pursuant to which all or part of the outstanding shares of Common Stock are changed into or exchanged for stock or other securities of any other person or cash or any other property or (iii) more than 50% of the combined assets or earning power of the Company and its subsidiaries is sold or -3- 4 transferred (in each case other than certain consolidations with, mergers with and into, or sales of assets or earning power by or to subsidiaries of the Company as specified in the Rights Agreement), each holder of a Right (except Rights that previously have been voided as set forth above) shall thereafter have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times the exercise price of the Right. The events described in this paragraph and in the immediately preceding paragraph are referred to as the "Triggering Events." At any time until any person becomes an Acquiring Person, the Company may redeem the Rights in whole, but not in part, at a price of $.001 per Right (payable in cash, shares of Common Stock or other consideration deemed appropriate by the Board of Directors). Rights may not be redeemed during the 180 day period after any person becomes an Acquiring Person unless the redemption is approved by a majority of Continuing Directors. The term "Continuing Director" means any member of the Board of Directors of the Company who was a member of the Board prior to the date of the Rights Agreement, and any person who is subsequently elected to the Board if such person is recommended or approved by a majority of at least five Continuing Directors, but shall not include an Acquiring Person, or an affiliate or associate of an Acquiring Person, or any representative of the foregoing persons. Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends. The Rights have certain anti-takeover effects. They may reduce or eliminate (i) "two-tiered" or other partial offers that do not offer fair value for all Common Stock; (ii) the accumulation by a third party of 15% or more of the Common Stock in open-market or private purchases in order to influence or control the business and affairs of the Company without paying an appropriate premium for a controlling position in the Company; and (iii) the accumulation of shares of Common Stock by third parties in market transactions for the primary purpose of attempting to cause the Company to be sold. In addition, the Rights will cause substantial dilution to a person or group that attempts to acquire the Company in a manner defined as a Triggering Event unless the offer is conditioned on a substantial number of Rights being acquired. The Rights, however, should not affect any prospective offeror willing to make an offer for all outstanding shares of Common Stock and other voting securities at a price and on other terms that are in the best interests of the Company and its stockholders as determined by the Board of Directors or affect any prospective offeror willing to negotiate with the Board of Directors because as part of any negotiated transaction the Rights would either be redeemed or otherwise made inapplicable to the transaction. The Rights should not interfere with any merger or other business combination approved by the Board of Directors since the Board of Directors may, at its option, at any time until ten business days following the Stock Acquisition Date, redeem all, but not less than all, of the then outstanding Rights at the $.001 redemption price. ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL Not Applicable. ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS Section 145 of the DGCL permits a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action. In a suit brought to obtain a judgment in the corporation's favor, whether by the corporation itself or derivatively by a stockholder, the corporation may only indemnify for expenses, including attorney's fees, actually and reasonably incurred in connection with the defense or settlement of the case, and the corporation may not indemnify for amounts paid in satisfaction of a judgment or in settlement of the claim. In any such action, no indemnification may be paid in respect of any claim, issue or matter as to which such persons shall have been adjudged liable to the corporation except as otherwise provided by the Delaware Court of Chancery or the court in which the claim was -4- 5 brought. In any other type of proceeding, the indemnification may extend to judgments, fines and amounts paid in settlement, actually and reasonably incurred in connection with such other proceeding, as well as to expenses (including attorneys' fees). The statute does not permit indemnification unless the person seeking indemnification has acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interest of the corporation and, in the case of criminal actions or proceedings, the person had no reasonable cause to believe his conduct was unlawful. There are additional limitations applicable to criminal actions and to actions brought by or in the name of the corporation. The determination as to whether a person seeking indemnification has met the required standard of conduct is to be made (i) by a majority vote of a quorum of disinterested members of the board of directors, or (ii) by independent counsel in a written opinion, if such a quorum does not exist or if the disinterested directors so direct, or (iii) by the stockholders. The Restated Certificate of Incorporation (with Amendments) and Bylaws of the Company require the Company to indemnify the Company's directors and officers to the fullest extent permitted under Delaware law. The Company's Restated Certificate of Incorporation (with Amendments) limits the personal liability of a director to the Company or its stockholders to damages for breach of the director's fiduciary duty. The Company has purchased insurance on behalf of its directors and officers against certain liabilities that may be asserted against, or incurred by, such persons in their capacities as directors or officers of the Registrant, or that may arise out of their status as directors or officers of the Registrant, including liabilities under the federal and state securities laws. ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED Not Applicable. ITEM 8. EXHIBITS Exhibit No. Description 4.1 Restricted Stock Plan. (Incorporated by reference to Exhibit 4.1 to Veritas DGC, Inc.'s Registration Statement No. 333- 57603, dated June 24, 1998). 4.2 Restated Certificate of Incorporation (with Amendments) of Digicon Inc. dated August 30, 1996. (Incorporated by reference to Exhibit 3.1 to Veritas DGC Inc.'s Current Report on Form 8-K dated September 16, 1996). 4.3 Certificate of Ownership and Merger of New Digicon Inc. and Digicon Inc. (Incorporated by reference to Exhibit 3-B to Digicon's Registration Statement No. 33-43873, dated November 12, 1991). 4.4 By-laws of New Digicon Inc. dated June 24, 1991. (Incorporated by reference to Exhibit 3-C to Digicon's Registration Statement No. 33-43873, dated November 12, 1991). 4.5 Specimen Veritas DGC Inc. Common Stock certificate. (Incorporated by reference to Exhibit 4-C to Veritas DGC Inc.'s Annual Report on Form 10-K for the year ended July 31, 1996). 4.6 Rights Agreement between Veritas DGC Inc. and ChaseMellon Shareholder Services, L.L.C. dated as of May 15, 1997. (Incorporated by reference to Exhibit 4.1 of Veritas DGC Inc.'s Current Report on Form 8-K filed May 27, 1997). 4.7* Key Contributor Incentive Plan for Fiscal Year 1998 (as Amended and Restated September 29, 1998). 5.1* Opinion of Porter & Hedges, L.L.P., with respect to the legality of the securities filed herewith. 23.1* Consent of PricewaterhouseCoopers LLP. 23.2* Consent of PricewaterhouseCoopers, Chartered Accountants. 23.3* Consent of Deloitte & Touche LLP. 23.4* Consent of Porter & Hedges, L.L.P. (included in Exhibit 5.1 Opinion). 24.1* Power of Attorney (included on signature page). - --------------- *Filed herewith -5- 6 ITEM 9. UNDERTAKINGS A. Undertaking to Update The undersigned Registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to the Registration Statement to: (i) include any prospectus required by section 10(a)(3) of the Securities Act of 1933, as amended (the "Securities Act"); (ii) reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or most recent post-effective amendment thereof) which, individually or in the aggregate represent a fundamental change in the information in the Registration Statement; and (iii) include any material information with respect to the plan for distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement. Provided, however, that paragraph (A)(1)(i) and (A)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the Registrant pursuant to Section 13 or 15(d) of the Exchange Act that are incorporated by reference in the Registration Statement. (2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. B. Undertaking With Respect to Documents Incorporated by Reference The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant's annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and where applicable, each filing of an employee benefit plan's annual report pursuant to section 15(d) of the Exchange Act) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. C. Undertaking With Respect to Indemnification Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. -6- 7 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints David B. Robson, Stephen J. Ludlow and Anthony Tripodo, and each of them, either of whom may act without joinder of the other, his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and his name, place and stead, in any and all capacities, to sign any or all pre- and post-effective amendments and supplements to this Registration Statement, and to file the same, or caused to be filed the same, with all exhibits thereto and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, and each of them, or the substitute or substitutes of either of them, may lawfully do or cause to be done by virtue hereof. SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas on September 29, 1998. VERITAS DGC INC. By: /s/ DAVID B. ROBSON --------------------------------------- David B. Robson Chairman of the Board, Chief Executive Officer and Director Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the 29th day of September, 1998.
SIGNATURE TITLE --------- ----- /s/ DAVID B. ROBSON Chairman of the Board, - ------------------------------------------------------ Chief Executive Officer and Director David B. Robson /s/ STEPHEN J. LUDLOW President, - ------------------------------------------------------ Chief Operating Officer and Director Stephen J. Ludlow /s/ LAWRENCE C. FICHTNER Executive Vice President, - ------------------------------------------------------ Corporate Communications and Director Lawrence C. Fichtner /s/ ANTHONY TRIPODO Executive Vice President, - ------------------------------------------------------ Chief Financial Officer and Treasurer (principal Anthony Tripodo financial and accounting officer) Director - ------------------------------------------------------ Clayton P. Cormier
-7- 8
SIGNATURE TITLE --------- ----- /s/ RALPH M. EESON Director - ------------------------------------------------------ Ralph M. Eeson Director /s/ JAMES R. GIBBS - ------------------------------------------------------ James R. Gibbs Director - ------------------------------------------------------ Steven J. Gilbert /s/ BRIAN F. MACNEILL Director - ------------------------------------------------------ Brian F. MacNeill Director - ------------------------------------------------------ Douglas B. Thompson Director - ------------------------------------------------------ Jack C. Threet
-8- 9 INDEX TO EXHIBITS
Exhibit No. Description - ------- ----------- 4.1 Restricted Stock Plan (Incorporated by reference to Exhibit 4.1 to Veritas DGC Inc.'s Registration Statement No. 333-57603, dated June 24, 1998). 4.2 Restated Certificate of Incorporation (with Amendments) of Digicon Inc. dated August 30, 1996. (Incorporated by reference to Exhibit 3.1 to Veritas DGC Inc.'s Current Report on Form 8-K dated September 16, 1996). 4.3 Certificate of Ownership and Merger of New Digicon Inc. and Digicon Inc. (Incorporated by reference to Exhibit 3-B to Digicon's Registration Statement No. 33-43873, dated November 12, 1991). 4.4 By-laws of New Digicon Inc. dated June 24, 1991. (Incorporated by reference to Exhibit 3-C to Digicon's Registration Statement No. 33-43873, dated November 12, 1991). 4.5 Specimen Veritas DGC Inc. Common Stock certificate. (Incorporated by reference to Exhibit 4-C to Veritas DGC Inc.'s Annual Report on Form 10-K for the year ended July 31, 1996). 4.6 Rights Agreement between Veritas DGC Inc. and ChaseMellon Shareholder Services, L.L.C. dated as of May 15, 1997. (Incorporated by reference to Exhibit 4.1 of Veritas DGC Inc.'s Current Report on Form 8-K filed May 27, 1997). 4.7* Key Contributor Incentive Plan for Fiscal Year 1998 (as amended and restated September 29, 1998). 5.1* Opinion of Porter & Hedges, L.L.P., with respect to the legality of the securities filed herewith. 23.1* Consent of PricewaterhouseCoopers LLP. 23.2* Consent of PricewaterhouseCoopers, Chartered Accountants. 23.3* Consent of Deloitte & Touche LLP. 23.4* Consent of Porter & Hedges, L.L.P. (included in Exhibit 5.1 Opinion). 24.1* Power of Attorney (included on signature page).
- --------------- *Filed herewith 9 EX-4.7 2 KEY CONTRIBUTOR INCENTIVE PLAN FOR FISCAL YEAR 98 1 EXHIBIT 4.7 VERITAS DGC INC. KEY CONTRIBUTOR INCENTIVE PLAN FOR FISCAL YEAR 1998 (AS AMENDED AND RESTATED SEPTEMBER 29, 1998) A. PLAN OBJECTIVES The overall objective of the Key Contributor Incentive Plan (herein after referred to as the "Plan") is to provide short-term rewards paid as bonuses to designated Key Contributors. Key Contributors are those individuals who have the responsibility of leading a diverse or complex team or function. The work produced from that team or function significantly impacts the operations of the Company up to and including bottom line results. Within the overall objectives, the following are the specific goals of the Plan: o Reward Key Contributors for achieving Veritas DGC Inc.'s business strategies in the area of net income before taxes (NIBT) o Focus participants on key business goals that they can directly impact o Create payout opportunities that balance the appropriate return to the Company with reward to the participants B. ELIGIBILITY Eligibility for participation in the Plan is recommended by the respective division senior executive management. Participants in the Plan are limited to those individuals who have a major impact on the accomplishment of Veritas DGC Inc.'s business strategies and are regular full-time employees. Variations from the guidelines may be made for individuals as recommended by the CEO based upon the scope of the incumbent's position, impact of position and compensation philosophy and strategy. C. AWARD DISTRIBUTION Bonuses will be paid semi-annually to reward the achievement of profit objectives. Seventy-five percent (75%) of the payment will be based upon performance as measured by published financial results before incentive payout. Twenty-five percent (25%) of the award will be based on two equally weighted strategic individual objectives as determined by the participant and approved by the immediate supervisor. The semi-annual award will be based on profit measures only, while the award distribution at the end of the fiscal year will be based on profits and the attainment of individual objectives. 2 D. PERFORMANCE MEASURES AND PAYOUT TARGETS PERFORMANCE MEASURES AND WEIGHTS The performance measure for determining the incentive awards will be net income before taxes (hereinafter referred to as "NIBT"), and meeting two equally weighted strategic individual objectives. NIBT is the profit plan for VDGC Consolidated and for each division that was submitted to and approved by Veritas DGC Inc.'s Board of Directors. The individual objectives are goals set by the participant and his/her immediate supervisor. These individual objectives are to be in addition to the participant's day-to-day responsibilities, and present a challenge to the participant. Such goals may improve processes, for example, which add value to their Division.
Basis for Payout-VDGC Individual Consolidated Division Objectives ------------ -------- ---------- Corporate 75% 25% Division Executive Mgt. 25% 50% 25% Divisional Key Contributors 25% 50% 25%
AWARD DISTRIBUTION Payout is determined by the impact level of the participant's position as follows:
Impact Target Base Salary (in thousands) Level Payout* - -------------------------- ------ ------- $150+(Corporate Leadership and A 40% Division Sr. Exec. Mgt. Only) $100+ B 30% $75-$99 C 20% $50-$74 D 10%
*Payout is a target percentage of the participant's base salary that the Plan intends to pay to the participant assuming that the profit and strategic individual objectives are met for his/her division. The payout will be calculated as close to the target percentage as possible assuming that the division's profit goals are met. In addition, bonus amounts will increase/decrease as dictated by NIBT results without minimum or cap. E. AWARD CALCULATION The participant's base salary at the close of each fiscal half-year will be used for purposes of this calculation. Page 2 For Distribution 9/97 3 PAYOUT SCENARIO John Doe is a Key Contributor whose annual salary is $70,000, which would put him at Impact Level D with a Target Payout of 10%. We have made the following assumptions for fiscal year 1998: o VDGC Consolidated meets 80% of its goal o Division meets 100% of its goal o One of the two individual objectives are met The calculation would be something like this: Target Payout: $70,000 * 10% = $7,000 Of that, VDGC Consolidated's portion of the total payout is 25%, so: $7,000 * 25% = $1,750 VDGC Consolidated made 80% of its goal for 1998, so VDGC Consolidated's portion of the actual payout would be $1,750 * 80% = $1,400 Division's portion of the total payout is 50%, so: $7,000 * 50% = $3,500 The Division met its goal for the year, so the Division's portion of the actual payout would be 100% of its portion, or: $3,500 * 100% = $3,500 Individual Goals' portion of the total payout is 25%, so: $7,000 * 25% = $1,750 One of two individual objectives were met, so the Individual Goals' portion of the actual payout would be: $1,750 * 50% = $875 Therefore, the total Incentive Payout would be: $1,400 + $3,500 + $875= $5,775 With respect to the year-end distribution only, the Compensation Committee may, if it so elects, offer by written notice to some or all participants in the Plan (the "Offered Participants") prior to payment of the year-end bonus the opportunity to receive all or a portion of his or her annual bonus distribution in shares of Veritas DGC common stock ("Common Stock") and if so offered, the Offered Participants who elect to receive all or a specified portion of the bonus in Common Stock rather than cash ("Electing Participants") shall receive on the date of the year-end bonus payment a number of whole shares equal to (x) the amount designated for the purpose of Common Stock, divided by (y) 100% of "fair market value" for a share of Common Stock on the date of the year-end bonus payment. As used in this paragraph, "fair market value" for a share of Common Stock shall be the closing price for the Common Stock on the New York Stock Exchange on the date of year-end bonus payment. Only treasury shares will be used for the payment of annual bonus distributions in Common Stock. If the number of shares of Common Stock necessary to fund the requests of Electing Participants in any year shall exceed the number of shares then held in treasury, all Page 3 For Distribution 9/97 4 Electing Participant's requests shall be pro-rated to the extent necessary, and the balance of year end bonus distributions shall be made in cash. F. LONG-TERM COMPENSATION o There is an additional long-term compensation component for Key Contributors. o Plan provides stock option grants every two years beginning in March 1997, based on the following:
Impact Level Grant Multiple ------------ -------------- A 2.00 B 1.50 C 0.75 D 0.50
o Vesting: Year % Vested ---- -------- 0 0% 1 yr. Anniversary 25% 2 yr. Anniversary 50% 3 yr. Anniversary 75% 4 yr. Anniversary 100%
FORMULA: Base Salary X Grant Multiple divided by Share Price = # of Shares o Stock Value The stock options will be granted at the per share value, as designated by the Board of Directors upon approval of the award. The option shall be for a term of ten years commencing March 11, 1997, and ending on March 11, 2007. Employees coming into the Plan after this date may be issued stock options on a pro-rata basis, with the term ending on March 11, 2007. Key Contributors coming into the Plan after March 11, 1997, will be awarded shares based on the share value on the date employee entered the Plan. Page 4 For Distribution 9/97 5 G. PLAN ADMINISTRATION PARTICIPATION Participants in the Plan are recommended by the appropriate Division head and approved by the CEO. TERMINATIONS/LEAVE OF ABSENCE Any participant who terminates for death, disability or retirement will receive a pro-rata portion of their earned incentive award for the fiscal year based on the month in which termination occurred. The payment will be made at the same time as the payout for the other participants. Any participant on leave of absence will not earn incentive award dollars during the leave period. Awards will be calculated on a pro-rata basis for the period of time worked for each fiscal half year. Participants must be actively employed on the dates that the award payments are made, otherwise the award is forfeited. In addition, if the participant leaves before the award payment date, all moneys previously paid will be retained by the participant, however no additional bonuses will be calculated or paid. Any exceptions to this rule must be approved by the CEO. NEW HIRES/PROMOTIONS Participants hired or promoted into positions that would qualify as Key Contributors will be eligible to participate in the Plan on a pro-rata basis depending on their month of hire/promotion. A Key Contributor who is hired after the start of the fiscal year will be eligible to participate in the plan with the approval of the CEO or COO. The award will be calculated on a pro-rata basis from the date of hire/promotion. The long-term incentive award may also be calculated on a pro-rata basis, and will be issued based on the stock price on date of hire/promotion. TRANSFERS Employees who transfer between divisions will automatically participate in the new Division's Plan if they were a Plan participant in their old division. Such transferred employees will participate in their old/new division bonus awards based on the percentage of the fiscal year worked in each Division. Transferred employees not eligible in their previous Division will be governed by the rules for new and promoted employees as set out in the preceding paragraph. Page 5 For Distribution 9/97 6 EXTRAORDINARY CIRCUMSTANCES The intent of the Plan is to reward for typical, normal operating results of Veritas DGC Inc. If there are extraordinary circumstances that have a significant impact on the results of the measures in the Plan, the Board can elect to exclude them from the calculation of incentive awards both positively and negatively. Such circumstances could include mergers, acquisitions, recapitalizations and/or any other substantial changes that could affect the financial impact of the business plan. PLAN EXCEPTIONS, AMENDMENTS AND TERMINATION Any exceptions to the Plan must be approved by the Board of Directors of Veritas DGC Inc. At any time the Board of Directors (and/or the Compensation Committee of the Board of Directors) has the right to adjust, amend or terminate the plan. This Plan in no way is an agreement to employment. Page 6 For Distribution 9/97 EX-5.1 3 OPINION OF PORTER & HEDGES, L.L.P. 1 EXHIBIT 5.1 September 30, 1998 Veritas DGC Inc. 3701 Kirby Drive, Suite 112 Houston, Texas 77098 Re: VERITAS DGC INC. REGISTRATION STATEMENT ON FORM S-8: KEY CONTRIBUTOR INCENTIVE PLAN FOR FISCAL YEAR 1998 (AS AMENDED AND RESTATED SEPTEMBER 29, 1998) Gentlemen: We have acted as counsel to Veritas DGC Inc., a Delaware corporation (the "Company"), in connection with the preparation for filing with the Securities and Exchange Commission of a Registration Statement on Form S-8 (the "Registration Statement") under the Securities Act of 1933, as amended. The Registration Statement relates, among other things, to an aggregate of 50,000 shares (the "Shares") of the Company's common stock, par value $.01 per share (the "Common Stock"), to be transferred pursuant to the Key Contributor Incentive Plan for Fiscal Year 1998 (as Amended and Restated September 29, 1998) between the Company and selected key employees as an employment inducement upon the vesting thereof (the "Plan"). We have examined the Plan and such corporate records, documents, instruments and certificates of the Company, and have reviewed such questions of law as we have deemed necessary, relevant or appropriate to enable us to render the opinion expressed herein. In such examination, we have assumed without independent investigation the authenticity of all documents submitted to us as originals, the genuineness of all signatures, the legal capacity of all natural persons, and the conformity of any documents submitted to us as copies to their respective originals. As to certain questions of fact material to this opinion, we have relied without independent investigation upon statements or certificates of public officials and officers of the Company. Based upon such examination and review, we are of the opinion that the Shares will, upon transfer and delivery as contemplated by the Plan be validly issued, fully paid and nonassessable outstanding shares of Common Stock. This Firm consents to the filing of this opinion as an exhibit to the Registration Statement. This opinion is conditioned upon the Registration Statement being declared effective and upon compliance by the Company with all applicable provisions of the Securities Act of 1933, as amended, and such state securities rules, regulations and laws as may be applicable. Very truly yours, /s/ Porter & Hedges, L.L.P. PORTER & HEDGES, L.L.P. EX-23.1 4 CONSENT OF PRICE WATERHOUSE LLP 1 EXHIBIT 23.1 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in this Registration Statement on Form S-8 of our report dated September 24, 1997, appearing on page 16 of Veritas DGC Inc.'s Annual Report on Form 10-K for the year ended July 31, 1997. /s/ PricewaterhouseCoopers LLP PRICEWATERHOUSECOOPERS LLP Houston, Texas September 30, 1998 EX-23.2 5 CONSENT OF PRICE WATERHOUSE, CHARTERED ACCOUNTANTS 1 EXHIBIT 23.2 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in this Registration Statement on Form S-8 of our report dated September 20, 1996, appearing on page 18 of Veritas DGC Inc.'s Annual Report on Form 10-K for the year ended July 31, 1997. /s/ PricewaterhouseCoopers PRICEWATERHOUSECOOPERS Chartered Accountants September 30, 1998 EX-23.3 6 CONSENT OF DELOITTE & TOUCHE LLP 1 EXHIBIT 23.3 CONSENT OF INDEPENDENT AUDITORS' We consent to the incorporation by reference in the Registration Statement on Form S-8 of our report dated October 10, 1996, on the consolidated balance sheet of Veritas DGC Inc. and subsidiaries (the "Company") as of July 31, 1996, and the related consolidated statements of income, cash flows and changes in stockholder' equity for each of the two years in the period ended July 31 1996, appearing in the Company's Annual Report on Form 10-K for the year ended July 31, 1997. /s/ DELOITTE & TOUCHE LLP DELOITTE & TOUCHE LLP Houston, Texas September 30, 1998 -----END PRIVACY-ENHANCED MESSAGE-----