Document:

<PAGE>

                                                                     Exhibit 4.1

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

                            DUPONT PHOTOMASKS, INC.

                                      and

                EQUISERVE TRUST COMPANY, N.A., as Rights Agent

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

                               RIGHTS AGREEMENT

                         Dated as of January 30, 2001

                       ---------------------------------
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                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                                   Page
<S>                                                                               <C>
Section 1.   Certain Definitions.....................................................1

Section 2.   Appointment of Rights Agent.............................................9

Section 3.   Issue of Right Certificates.............................................9

Section 4.   Form of Right Certificates.............................................11

Section 5.   Countersignature and Registration......................................11

Section 6.   Transfer, Split Up, Combination and Exchange of Right
             Certificates; Mutilated, Destroyed, Lost or Stolen Right
             Certificates...........................................................11

Section 7.   Exercise of Rights, Purchase Price; Expiration Date of Rights..........12

Section 8.   Cancellation and Destruction of Right Certificates.....................13

Section 9.   Availability of Shares of Preferred Stock..............................14

Section 10.  Preferred Stock Record Date............................................15

Section 11.  Adjustment of Purchase Price, Number of Shares and Number
             of Rights..............................................................15

Section 12.  Certificate of Adjusted Purchase Price or Number of Shares.............23

Section 13.  Consolidation, Merger or Sale or Transfer of Assets or
             Earning Power..........................................................23

Section 14.  Fractional Rights and Fractional Shares................................26

Section 15.  Rights of Action.......................................................27

Section 16.  Agreement of Right Holders.............................................28

Section 17.  Right Certificate Holder Not Deemed a Stockholder......................28

Section 18.  Concerning the Rights Agent............................................28

Section 19.  Merger or Consolidation or Change of Name of Rights Agent..............29
</TABLE>
<PAGE>

<TABLE>

<S>                                                                               <C>
Section 20.  Duties of Rights Agent.................................................30

Section 21.  Change of Rights Agent.................................................31

Section 22.  Issuance of New Right Certificates.....................................32

Section 23.  Redemption.............................................................33

Section 24.  Exchange...............................................................33

Section 25.  Notice of Certain Events...............................................34

Section 26.  Notices................................................................35

Section 27.  Supplements and Amendments.............................................36

Section 28.  Successors.............................................................36

Section 29.  Benefits of this Agreement.............................................36

Section 30.  Determinations and Actions by the Board of Directors...................36

Section 31.  Severability...........................................................36

Section 32.  Governing Law..........................................................37

Section 33.  Counterparts...........................................................37

Section 34.  Descriptive Headings...................................................37
</TABLE>
<PAGE>

                               RIGHTS AGREEMENT
                               ----------------

        Rights Agreement, dated as of January 30, 2001 ("Agreement"), between
DuPont Photomasks, Inc., a Delaware corporation (the "Company"), and EquiServe
Trust Company, N.A., as Rights Agent (the "Rights Agent").

        The Board of Directors of the Company has authorized and declared a
dividend of one preferred share purchase right (a "Right") for each share of
Common Stock (as hereinafter defined) of the Company outstanding as of the Close
of Business (as defined below) on February 20, 2001 (the "Record Date"), each
Right representing the right to purchase one one-thousandth (subject to
adjustment) of a share of Preferred Stock (as hereinafter defined), upon the
terms and subject to the conditions herein set forth, and has further authorized
and directed the issuance of one Right (subject to adjustment as provided
herein) with respect to each share of Common Stock that shall become outstanding
between the Record Date and the earlier of the Distribution Date and the
Expiration Date (as such terms are hereinafter defined); provided, however, that
                                                         --------
Rights may be issued with respect to shares of Common Stock that shall become
outstanding after the Distribution Date and prior to the Expiration Date in
accordance with Section 22.

        Accordingly, in consideration of the premises and the mutual agreements
herein set forth, the parties hereby agree as follows:

        Section 1.  Certain Definitions.  For purposes of this Agreement, the
                    -------------------
following terms have the meaning indicated:

        (a) "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which shall be the Beneficial Owner (as such term is
hereinafter defined) of 15% or more of the shares of Common Stock then
outstanding, but shall not include an Exempt Person (as such term is hereinafter
defined); provided, however, that (i) if the Board of Directors of the Company
          --------  -------
determines in good faith that a Person who would otherwise be an "Acquiring
Person" no longer qualifies as an Exempt Person inadvertently or became the
Beneficial Owner of a number of shares of Common Stock such that the Person
would otherwise qualify as an "Acquiring Person" inadvertently (including,
without limitation, because (A) such Person was unaware that it beneficially
owned a percentage of Common Stock that would otherwise cause such Person to be
an "Acquiring Person" or (B) such Person was aware of the extent of its
Beneficial Ownership of Common Stock but had no actual knowledge of the
consequences of such Beneficial Ownership under this Agreement) and without any
intention of changing or influencing control of the Company, then such Person
shall not be deemed to be or to have become an "Acquiring Person" for any
purposes of this Agreement unless and until such Person shall have failed to
divest itself, as soon as practicable (as determined, in good faith, by the
Board of Directors of the Company), of Beneficial Ownership of a sufficient
number of shares of Common Stock so that such Person would no longer otherwise
qualify as an "Acquiring Person"; (ii) if, as of the date hereof or prior to the
first public announcement of the adoption of this Agreement, any Person (other
than Du Pont)

                                       1
<PAGE>

is or becomes the Beneficial Owner of 15% or more of the shares of Common Stock
outstanding, such Person shall not be deemed to be or to become an "Acquiring
Person" unless and until such time as such Person shall, after the first public
announcement of the adoption of this Agreement, become the Beneficial Owner of
additional shares of Common Stock (other than pursuant to a dividend or
distribution paid or made by the Company on the outstanding Common Stock or
pursuant to a split or subdivision of the outstanding Common Stock), unless,
upon becoming the Beneficial Owner of such additional shares of Common Stock,
such Person is not then the Beneficial Owner of 15% or more of the shares of
Common Stock then outstanding; and (iii) no Person shall become an "Acquiring
Person" as the result of an acquisition of shares of Common Stock by the Company
which, by reducing the number of shares outstanding, increases the proportionate
number of shares of Common Stock beneficially owned by such Person to 15% or
more of the shares of Common Stock then outstanding, provided, however, that if
                                                     --------  -------
a Person shall become the Beneficial Owner of 15% or more of the shares of
Common Stock then outstanding by reason of such share acquisitions by the
Company and shall thereafter become the Beneficial Owner of any additional
shares of Common Stock (other than pursuant to a dividend or distribution paid
or made by the Company on the outstanding Common Stock or pursuant to a split or
subdivision of the outstanding Common Stock), then such Person shall be deemed
to be an "Acquiring Person" unless upon becoming the Beneficial Owner of such
additional shares of Common Stock such Person does not beneficially own 15% or
more of the shares of Common Stock then outstanding.  For all purposes of this
Agreement, any calculation of the number of shares of Common Stock outstanding
at any particular time, including for purposes of determining the particular
percentage of such outstanding shares of Common Stock of which any Person is the
Beneficial Owner, shall be made in accordance with the last sentence of Rule
13d-3(d)(1)(i) of the General Rules and Regulations under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), as in effect on the date
hereof.

        (b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act, as in effect on the date hereof.

        (c) A Person shall be deemed the "Beneficial Owner" of, shall be deemed
to have "Beneficial Ownership" of and shall be deemed to "beneficially own" any
securities:

            (i)  which such Person or any of such Person's Affiliates or
Associates is deemed to beneficially own, directly or indirectly, within the
meaning of Rule l3d-3 of the General Rules and Regulations under the Exchange
Act as in effect on the date hereof;

          (ii)   which such Person or any of such Person's Affiliates or
Associates has (A) the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public
offering of securities), or upon the exercise of conversion rights, exchange
rights, rights, warrants or options, or otherwise; provided, however, that a
                                                   --------  -------
Person shall not be deemed the Beneficial Owner of, or to beneficially own, (x)
securities tendered

                                       2
<PAGE>

pursuant to a tender or exchange offer made by or on behalf of such Person or
any of such Person's Affiliates or Associates until such tendered securities are
accepted for purchase, (y) securities which such Person has a right to acquire
upon the exercise of Rights at any time prior to the time that any Person
becomes an Acquiring Person or (z) securities issuable upon the exercise of
Rights from and after the time that any Person becomes an Acquiring Person if
such Rights were acquired by such Person or any of such Person's Affiliates or
Associates prior to the Distribution Date or pursuant to Section 3(a) or Section
22 hereof ("Original Rights") or pursuant to Section 11(i) or Section 11(n) with
respect to an adjustment to Original Rights; or (B) the right to vote pursuant
to any agreement, arrangement or understanding; provided, however, that a Person
                                                --------  -------
shall not be deemed the Beneficial Owner of, or to beneficially own, any
security by reason of such agreement, arrangement or understanding if the
agreement, arrangement or understanding to vote such security (1) arises solely
from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the
applicable rules and regulations promulgated under the Exchange Act and (2) is
not also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report); or

          (iii)  which are beneficially owned, directly or indirectly, by any
other Person and with respect to which such Person or any of such Person's
Affiliates or Associates has any agreement, arrangement or understanding (other
than customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities) for the
purpose of acquiring, holding, voting (except to the extent contemplated by the
proviso to Section 1(c)(ii)(B)) or disposing of such securities of the Company;

provided, however, that no Person who is an officer, director or employee of an
--------  -------
Exempt Person shall be deemed, solely by reason of such Person's status or
authority as such, to be the "Beneficial Owner" of, to have "Beneficial
Ownership" of or to "beneficially own" any securities that are "beneficially
owned" (as defined in this Section l(c)), including, without limitation, in a
fiduciary capacity, by an Exempt Person or by any other such officer, director
or employee of an Exempt Person.

        (d) "Business Day" shall mean any day other than a Saturday, a Sunday or
a day on which banking institutions in the State of New York or the city in
which the principal office of the Rights Agent is located are authorized or
obligated by law or executive order to close.

        (e) "Close of Business" on any given date shall mean 5:00 P.M., New York
City time, on such date; provided, however, that if such date is not a Business
                         --------  -------
Day it shall mean 5:00 P.M., New York City time, on the next succeeding Business
Day.

        (f) "Common Stock" when used with reference to the Company shall mean
the Common Stock, presently par value $.01 per share, of the Company.  "Common
Stock" when used with reference to any Person other than the Company shall mean
the common stock (or, in the case of an unincorporated entity, the equivalent
equity interest) with the greatest

                                       3
<PAGE>

voting power of such other Person or, if such other Person is a Subsidiary of
another Person, the Person or Persons which ultimately control such first-
mentioned Person.

        (g) "Common Stock Equivalents" shall have the meaning set forth in
Section 11(a)(iii) hereof.

        (h) "Current Value" shall have the meaning set forth in Section
11(a)(iii) hereof.

        (i) "Distribution Date" shall have the meaning set forth in Section 3
hereof.

        (j) "Du Pont Change in Control" shall mean the occurrence of any one of
the following events:

            (i)    A Person is the Beneficial Owner of thirty percent (30%) or
        more of either (x) the then outstanding common stock, par value $1.00
        per share, of E.I. Du Pont de Nemours & Co. ("Du Pont") ("Du Pont Common
        Stock"), or (y) the combined voting power of Du Pont's then outstanding
        voting securities entitled to vote for the election of directors (the
        "Voting Securities"); provided however, in determining whether a Du Pont
        Change in Control has occurred, Du Pont Common Stock or Voting
        Securities which are acquired in a "Non-Control Acquisition" (as
        hereinafter defined) shall not result in a Du Pont Change in Control.  A
        "Non-Control Acquisition" shall mean an acquisition by (x) an employee
        benefit plan (or a trust forming a part thereof) maintained by (A) Du
        Pont or (B) any corporation or other Person of which a majority of its
        voting power or its voting equity securities or equity interest is
        owned, directly or indirectly, by Du Pont (for purposes of this
        definition, a "Related Entity"), (y) Du Pont or any Related Entity, or
        (z) any Person in connection with a "Non-Control Transaction" (as
        hereinafter defined);

            (ii)   The individuals who, as of January 30, 2001 are members of
        the Board of Du Pont (the "Incumbent Board"), cease for any reason to
        constitute at least a majority of the members of the Du Pont Board;
        provided however, that if the election, or nomination for election by Du
        Pont's common stockholders, of any new director was approved by a vote
        of at least two-thirds of the Incumbent Board, such new director shall,
        for purposes hereof, be considered as a member of the Incumbent Board,
        provided, further, however, that no individual shall be considered a
        member of the Incumbent Board if such individual initially assumed
        office as a result of either an actual or threatened "Election Contest"
        (as described in Rule 14a-11 promulgated under the Securities Exchange
        Act of 1934) or other actual or threatened solicitation of proxies or
        consents by or on behalf of a Person other than the Du Pont Board (a
        "Proxy Contest"), including by reason of any agreement intended to avoid
        or settle any Election Contest or Proxy Contest; or

             (iii) The consummation of:

                                       4
<PAGE>

                  (A)   A merger, consolidation or reorganization with or into
                  Du Pont or in connection with which securities of Du Pont are
                  issued (a "Merger"), unless the Merger is a "Non-Control
                  Transaction." A "Non-Control Transaction" shall mean a Merger
                  if:

                        a)   the stockholders of Du Pont immediately before such
                             Merger own directly or indirectly immediately
                             following the Merger at least sixty-six and two-
                             thirds percent (66-2/3%) of the outstanding common
                             stock and the combined voting power of the
                             outstanding voting securities of (x) the
                             corporation resulting from such Merger (the
                             "Surviving Corporation"), if fifty percent (50%) or
                             more of the combined voting power of the then
                             outstanding voting securities of the Surviving
                             Corporation is not beneficially owned, directly or
                             indirectly by another corporation (a "Parent
                             Corporation"), or (y) the Parent Corporation, if
                             fifty percent (50%) or more of the combined voting
                             power of the Surviving Corporation's then
                             outstanding voting securities is beneficially
                             owned, directly or indirectly, by a Parent
                             Corporation;

                        b)   the individuals who were members of the Incumbent
                             Board immediately prior to the execution of the
                             agreement providing for the Merger, constitute at
                             least two-thirds of the members of the board of
                             directors of (x) the Surviving Corporation, if
                             fifty percent (50%) or more of the combined voting
                             power of the then outstanding voting securities of
                             the Surviving Corporation is not beneficially
                             owned, directly or indirectly by a Parent
                             corporation, or (y) the Parent Corporation, if
                             fifty percent (50%) or more of the combined voting
                             power of the Surviving Corporation's then
                             outstanding voting securities is beneficially
                             owned, directly or indirectly, by a Parent
                             Corporation; and

                        c)   no Person other than (1) Du Pont or another
                             corporation that is a party to the agreement of
                             Merger, (2) any Related Entity, (3) any employee
                             benefit plan (or any trust forming a part thereof)
                             that, immediately prior to the Merger, was

                                       5
<PAGE>

                             maintained by Du Pont or any Related Entity, or (4)
                             any Person who, immediately prior to the Merger was
                             the Beneficial Owner of twenty percent (20%) or
                             more of the then outstanding Du Pont Common Stock
                             or Voting Securities, is the Beneficial Owner,
                             directly or indirectly, of thirty percent (30%) or
                             more of the combined voting power of the
                             outstanding voting securities or common stock of
                             (x) the Surviving Corporation, if fifty percent
                             (50%) or more of the combined voting power of the
                             then outstanding voting securities is not
                             beneficially owned, directly or indirectly, by a
                             Parent Corporation, or (y) the Parent Corporation,
                             if fifty percent (50%) or more of the combined
                             voting power of the Surviving Corporation's then
                             outstanding voting securities is beneficially
                             owned, directly or indirectly, by a Parent
                             Corporation; provided, however, that any Person
                             described in clause (4) of this subsection (c) may
                             not, immediately following the Merger, beneficially
                             own more than forty-nine and nine-tenths percent
                             (49.9%) of the combined voting power of the
                             outstanding voting securities of the Surviving
                             Corporation or the Parent Corporation, as
                             applicable.

                  (B)   A complete liquidation or dissolution of Du Pont; or

                  (C)   The sale or other disposition of all or substantially
                  all of the assets of Du Pont to any Person (other than a
                  transfer to a Related Entity or under conditions that would
                  constitute a Non-Control Transaction with the disposition of
                  assets being regarded as a Merger for this purpose) or the
                  distribution to Du Pont stockholders of the stock of a Related
                  Entity or any other assets (except a cash dividend).

        Notwithstanding the foregoing, a Du Pont Change in Control shall not be
        deemed to occur solely because any Person (the "Subject Person") becomes
        the Beneficial Owner of more than the permitted amount of the then
        outstanding Du Pont Common Stock or Voting Securities as a result of the
        acquisition of Du Pont Common

                                       6
<PAGE>

        Stock or Voting Securities by Du Pont which, by reducing the number of
        shares of Du Pont Common Stock or Voting Securities then outstanding,
        increases the proportional number of shares beneficially owned by the
        Subject Person, provided that if a Du Pont Change in Control would occur
        (but for the operation of this sentence) as a result of the acquisition
        of Du Pont Common Stock or Voting Securities by Du Pont, and after such
        share acquisition by Du Pont, the Subject Person becomes the Beneficial
        Owner of any additional Du Pont Common Stock or Voting Securities which
        increases the percentage of the then outstanding Du Pont Common Stock or
        Voting Securities beneficially owned by the Subject Person, then a Du
        Pont Change in Control shall occur, unless the Subject Person
        beneficially owns less than the permitted amount of the then outstanding
        Du Pont Common Stock and Voting Securities.

        (k)   "Equivalent Preferred Shares" shall have the meaning set forth in
Section 11(b) hereof.

        (l)   "Exempt Person" shall mean (i) the Company or any Subsidiary (as
such term is hereinafter defined) of the Company, in each case including,
without limitation, in its fiduciary capacity, or any employee benefit plan of
the Company or of any Subsidiary of the Company, or any entity or trustee
holding Common Stock for or pursuant to the terms of any such plan or for the
purpose of funding any such plan or funding other employee benefits for
employees of the Company or of any Subsidiary of the Company, and (ii) the
corporation known as of the date hereof as Du Pont or any Affiliate or Associate
of Du Pont, unless and until (1) Du Pont or such Affiliate or Associate shall be
deemed to be the Beneficial Owner of more than 33% of the total number of shares
of Common Stock outstanding (on an as converted basis), assuming full conversion
of all securities and full exercise of all outstanding rights, options and
warrants to acquire the Common Stock, (2) Du Pont or such Affiliate or Associate
makes a public announcement of the intent to commence a tender or exchange offer
which would result in Du Pont, or any Affiliate or Associate of Du Pont,
becoming the Beneficial Owner of more than 33% of the total number of shares of
Common Stock outstanding (on an as converted basis), assuming full conversion of
all securities and full exercise of all outstanding rights, options and warrants
to acquire the Common Stock, or (3) there is a Du Pont Change of Control.

        (m)   "Exchange Ratio" shall have the meaning set forth in Section 24
hereof.

        (n)   "Expiration Date" shall have the meaning set forth in Section 7
hereof.

        (o)   "Final Expiration Date" shall have the meaning set forth in
Section 7 hereof.

        (p)   "Flip-In Event" shall have the meaning set forth in Section
11(a)(ii) hereof.

        (q)   "NASDAQ" shall mean The Nasdaq Stock Market.

        (r)   "New York Stock Exchange" shall mean the New York Stock Exchange,
Inc.

                                       7
<PAGE>

        (s)   "Person" shall mean any individual, firm, corporation,
partnership, limited liability company, trust or other entity, and shall include
any successor (by merger or otherwise) to such entity.

        (t)   "Preferred Stock" shall mean the Series A Junior Participating
Preferred Stock, par value $.01 per share, of the Company having the rights and
preferences set forth in the Form of Certificate of Designation attached to this
Agreement as Exhibit A.

        (u)   "Principal Party" shall have the meaning set forth in Section
13(b) hereof.

        (v)   "Purchase Price" shall have the meaning set forth in Section 7(b)
hereof.

        (w)   "Redemption Date" shall have the meaning set forth in Section 7
hereof.

        (x)   "Redemption Price" shall have the meaning set forth in Section 23
hereof.

        (y)   "Right Certificate" shall have the meaning set forth in Section 3
hereof.

        (z)   "Section 11(a)(ii) Trigger Date" shall have the meaning set forth
in Section 11(a)(iii) hereof.

        (aa)  "Securities Act" shall mean the Securities Act of 1933, as
amended.

        (bb)  "Spread" shall have the meaning set forth in Section 11(a)(iii)
hereof.

        (cc)  "Stock Acquisition Date" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the
Company or an Acquiring Person that an Acquiring Person has become such, or such
earlier date as a majority of the Board of Directors shall become aware of the
existence of an Acquiring Person.

        (dd)  "Subsidiary" of any Person shall mean any corporation or other
entity of which securities or other ownership interests having ordinary voting
power sufficient to elect a majority of the board of directors or other persons
performing similar functions are beneficially owned, directly or indirectly, by
such Person, and any corporation or other entity that is otherwise controlled by
such Person.

        (ee)  "Substitution Period" shall have the meaning set forth in Section
11(a)(iii) hereof.

        (ff)  "Summary of Rights" shall have the meaning set forth in Section 3
hereof.

        (ff)  "Trading Day" shall have the meaning set forth in Section 11(d)(i)
hereof.

                                       8
<PAGE>

          Section 2.  Appointment of Rights Agent.  The Company hereby appoints
                      ---------------------------
the Rights Agent to act as agent for the Company and the holders of the Rights
(who, in accordance with Section 3 hereof, shall prior to the Distribution Date
be the holders of Common Stock) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment.  The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or
desirable upon ten (10) days prior written notice to the Rights Agent.  The
Rights Agent shall have no duty to supervise, and shall in no event be liable
for the acts or omissions of any such co-Rights Agent.

          Section 3.  Issue of Right Certificates.
                      ---------------------------

          (a)  Until the Close of Business on the earlier of (i) the tenth day
after the Stock Acquisition Date or (ii) the tenth Business Day (or such later
date as may be determined by action of the Board of Directors prior to such time
as any Person becomes an Acquiring Person) after the date of the commencement by
any Person (other than an Exempt Person) of, or of the first public announcement
of the intention of such Person (other than an Exempt Person) to commence, a
tender or exchange offer the consummation of which would result in any Person
(other than an Exempt Person) becoming the Beneficial Owner of shares of Common
Stock aggregating 15% or more of the Common Stock then outstanding (the earlier
of such dates being herein referred to as the "Distribution Date", provided,
                                                                   --------
however, that if either of such dates occurs after the date of this Agreement
-------
and on or prior to the Record Date, then the Distribution Date shall be the
Record Date), (x) the Rights will be evidenced (subject to the provisions of
Section 3(b) hereof) by the certificates for Common Stock registered in the
names of the holders thereof and not by separate Right Certificates, and (y) the
Rights will be transferable only in connection with the transfer of Common
Stock.  As soon as practicable after the Distribution Date, the Company will
prepare and execute, the Rights Agent will countersign and the Company will send
or cause to be sent (and the Rights Agent will, if requested, send) by first-
class, insured, postage-prepaid mail, to each record holder of Common Stock as
of the Close of Business on the Distribution Date (other than any Acquiring
Person or any Associate or Affiliate of an Acquiring Person), at the address of
such holder shown on the records of the Company, a Right Certificate, in
substantially the form of Exhibit B hereto (a "Right Certificate"), evidencing
one Right (subject to adjustment as provided herein) for each share of Common
Stock so held.  As of the Distribution Date, the Rights will be evidenced solely
by such Right Certificates.

          (b)  On the Record Date, or as soon as practicable thereafter, the
Company will send a copy of a Summary of Rights to Purchase Shares of Preferred
Stock, in substantially the form of Exhibit C hereto (the "Summary of Rights"),
by first-class, postage-prepaid mail, to each record holder of Common Stock as
of the Close of Business on the Record Date (other than any Acquiring Person or
any Associate or Affiliate of any Acquiring Person), at the address of such
holder shown on the records of the Company.  With respect to certificates for
Common Stock outstanding as of the Record Date, until the Distribution Date, the
Rights will be evidenced by such certificates registered in the names of the
holders thereof together with the Summary of Rights.  Until the Distribution
Date (or, if earlier, the Expiration Date), the surrender for transfer of any
certificate for Common Stock outstanding on the Record Date,

                                       9
<PAGE>

with or without a copy of the Summary of Rights, shall also constitute the
transfer of the Rights associated with the Common Stock represented thereby.

          (c)  Rights shall be issued in respect of all shares of Common Stock
issued or disposed of (including, without limitation, upon disposition of Common
Stock out of treasury stock or issuance or reissuance of Common Stock out of
authorized but unissued shares) after the Record Date but prior to the earlier
of the Distribution Date and the Expiration Date, or in certain circumstances
provided in Section 22 hereof, after the Distribution Date.  Certificates issued
for Common Stock (including, without limitation, upon transfer of outstanding
Common Stock, disposition of Common Stock out of treasury stock or issuance or
reissuance of Common Stock out of authorized but unissued shares) after the
Record Date but prior to the earlier of the Distribution Date and the Expiration
Date shall have impressed on, printed on, written on or otherwise affixed to
them the following legend:

          This certificate also evidences and entitles the holder hereof to
          certain rights as set forth in a Rights Agreement between DuPont
          Photomasks, Inc. (the "Company") and EquiServe Trust Company, N.A., as
          Rights Agent, dated as of January 30, 2001 and as amended from time to
          time (the "Rights Agreement"), the terms of which are hereby
          incorporated herein by reference and a copy of which is on file at the
          principal executive offices of the Company. Under certain
          circumstances, as set forth in the Rights Agreement, such Rights will
          be evidenced by separate certificates and will no longer be evidenced
          by this certificate. The Company will mail to the holder of this
          certificate a copy of the Rights Agreement without charge after
          receipt of a written request therefor. Under certain circumstances, as
                                                 -------------------------------
          set forth in the Rights Agreement, Rights owned by or transferred to
          --------------------------------------------------------------------
          any Person who is or becomes an Acquiring Person (as defined in the
          -------------------------------------------------------------------
          Rights Agreement) and certain transferees thereof will become null and
          ----------------------------------------------------------------------
          void and will no longer be transferable.
          ---------------------------------------

With respect to such certificates containing the foregoing legend, until the
Distribution Date the Rights associated with the Common Stock represented by
such certificates shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate, except as otherwise provided
herein, shall also constitute the transfer of the Rights associated with the
Common Stock represented thereby.  In the event that the Company purchases or
otherwise acquires any Common Stock after the Record Date but prior to the
Distribution Date, any Rights associated with such Common Stock shall be deemed
canceled and retired so that the Company shall not be entitled to exercise any
Rights associated with the Common Stock which are no longer outstanding.

          Notwithstanding this paragraph (c), the omission of a legend shall not
affect the enforceability of any part of this Agreement or the rights of any
holder of the Rights.

                                      10
<PAGE>

        Section 4.  Form of Right Certificates.  The Right Certificates (and the
                    --------------------------
forms of election to purchase shares and of assignment to be printed on the
reverse thereof) shall be substantially in the form set forth in Exhibit B
hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange or interdealer quotation system on which the Rights may from time to
time be listed or quoted, or to conform to usage.  Subject to the provisions of
this Agreement, the Right Certificates shall entitle the holders thereof to
purchase such number of one one-thousandths of a share of Preferred Stock as
shall be set forth therein at the Purchase Price, but the number of such one
one-thousandths of a share of Preferred Stock and the Purchase Price shall be
subject to adjustment as provided herein.

        Section 5.  Countersignature and Registration.
                    ---------------------------------

        (a)   The Right Certificates shall be executed on behalf of the Company
by the President of the Company, either manually or by facsimile signature,
shall have affixed thereto the Company's seal or a facsimile thereof and shall
be attested by the Secretary of the Company, either manually or by facsimile
signature. The Right Certificates shall be manually countersigned by the Rights
Agent and shall not be valid for any purpose unless countersigned. In case any
officer of the Company who shall have signed any of the Right Certificates shall
cease to be such officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Right Certificates,
nevertheless, may be countersigned by the Rights Agent and issued and delivered
by the Company with the same force and effect as though the Person who signed
such Right Certificates had not ceased to be such officer of the Company; and
any Right Certificate may be signed on behalf of the Company by any Person who,
at the actual date of the execution of such Right Certificate, shall be a proper
officer of the Company to sign such Right Certificate, although at the date of
the execution of this Agreement any such Person was not such an officer.

        (b)   Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at an office or agency designated for such purpose, books for
registration and transfer of the Right Certificates issued hereunder. Such books
shall show the names and addresses of the respective holders of the Right
Certificates, the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.

        Section 6.  Transfer, Split Up, Combination and Exchange of Right
                    -----------------------------------------------------
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.
---------------------------------------------------------------------

        (a)   Subject to the provisions of this Agreement, at any time after the
Distribution Date and prior to the Expiration Date, any Right Certificate or
Right Certificates may be transferred, split up, combined or exchanged for
another Right Certificate or Right Certificates, entitling the registered holder
to purchase a like number of one one-thousandths

                                      11
<PAGE>

of a share of Preferred Stock as the Right Certificate or Right Certificates
surrendered then entitled such holder to purchase. Any registered holder
desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights
Agent, and shall surrender the Right Certificate or Right Certificates to be
transferred, split up, combined or exchanged at the office or agency of the
Rights Agent designated for such purpose. Thereupon the Rights Agent shall
countersign and deliver to the Person entitled thereto a Right Certificate or
Right Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates.

        (b)   Subject to the provisions of this Agreement, at any time after the
Distribution Date and prior to the Expiration Date, upon receipt by the Company
and the Rights Agent of evidence reasonably satisfactory to them of the loss,
theft, destruction or mutilation of a Right Certificate, and, in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to them,
and, at the Company's request, reimbursement to the Company and the Rights Agent
of all reasonable expenses incidental thereto, and upon surrender to the Rights
Agent and cancellation of the Right Certificate if mutilated, the Company will
make and deliver a new Right Certificate of like tenor to the Rights Agent for
delivery to the registered holder in lieu of the Right Certificate so lost,
stolen, destroyed or mutilated.

        Section 7.  Exercise of Rights, Purchase Price; Expiration Date of
                    ------------------------------------------------------
Rights.
------

        (a)   Except as otherwise provided herein, the Rights shall become
exercisable on the Distribution Date, and thereafter the registered holder of
any Right Certificate may, subject to Section 11(a)(ii) hereof and except as
otherwise provided herein, exercise the Rights evidenced thereby in whole or in
part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof duly executed, to the Rights Agent at the
office or agency of the Rights Agent designated for such purpose, together with
payment of the aggregate Purchase Price with respect to the total number of one
one-thousandths of a share of Preferred Stock (or other securities, cash or
other assets, as the case may be) as to which the Rights are exercised, at any
time which is both after the Distribution Date and prior to the time (the
"Expiration Date") that is the earliest of (i) the Close of Business on January
30, 2011 (the "Final Expiration Date"), (ii) the time at which the Rights are
redeemed as provided in Section 23 hereof (the "Redemption Date") or (iii) the
time at which such Rights are exchanged as provided in Section 24 hereof.

        (b)   The Purchase Price shall be initially $400.00 for each one one-
thousandth of a share of Preferred Stock purchasable upon the exercise of a
Right.  The Purchase Price and the number of one one-thousandths of a share of
Preferred Stock or other securities or property to be acquired upon exercise of
a Right shall be subject to adjustment from time to time as provided in Sections
11 and 13 hereof and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) of this Section 7.

                                      12
<PAGE>

        (c) Except as otherwise provided herein, upon receipt of a Right
Certificate representing exercisable Rights, with the form of election to
purchase duly executed, accompanied by payment of the aggregate Purchase Price
for the shares of Preferred Stock to be purchased and an amount equal to any
applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof, in cash or by certified check,
cashier's check or money order payable to the order of the Company, the Rights
Agent shall thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Stock, or make available if the Rights Agent is the transfer agent
for the Preferred Stock,  certificates for the number of shares of Preferred
Stock to be purchased, and the Company hereby irrevocably authorizes its
transfer agent to comply with all such requests, or (B) requisition from a
depositary agent appointed by the Company depositary receipts representing
interests in such number of one one-thousandths of a share of Preferred Stock as
are to be purchased (in which case certificates for the Preferred Stock
represented by such receipts shall be deposited by the transfer agent with the
depositary agent), and the Company hereby directs any such depositary agent to
comply with such request, (ii) when appropriate, requisition from the Company
the amount of cash to be paid in lieu of issuance of fractional shares in
accordance with Section 14 hereof, (iii) promptly after receipt of such
certificates or depositary receipts, cause the same to be delivered to or upon
the order of the registered holder of such Right Certificate, registered in such
name or names as may be designated by such holder and (iv) when appropriate,
after receipt, promptly deliver such cash to or upon the order of the registered
holder of such Right Certificate.

        (d) Except as otherwise provided herein, in case the registered holder
of any Right Certificate shall exercise less than all of the Rights evidenced
thereby, a new Right Certificate evidencing Rights equivalent to the exercisable
Rights remaining unexercised shall be issued by the Rights Agent to the
registered holder of such Right Certificate or to his duly authorized assigns,
subject to the provisions of Section 14 hereof.

        (e) Notwithstanding anything in this Agreement to the contrary, neither
the Rights Agent nor the Company shall be obligated to undertake any action with
respect to a registered holder of Rights upon the occurrence of any purported
transfer or exercise of Rights pursuant to Section 6 hereof or this Section 7
unless such registered holder shall have (i) completed and signed the
certificate contained in the form of assignment or form of election to purchase
set forth on the reverse side of the Rights Certificate surrendered for such
transfer or exercise and (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) thereof as the Company
shall reasonably request.

        Section 8.  Cancellation and Destruction of Right Certificates.  All
                    --------------------------------------------------
Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement.  The Company shall deliver to the
Rights Agent for cancellation and retirement, and the Rights Agent shall so
cancel and retire, any other Right Certificate purchased or acquired by the
Company otherwise than upon the

                                      13
<PAGE>

exercise thereof. The Rights Agent shall deliver all canceled Right Certificates
to the Company, or shall, at the written request of the Company, destroy such
canceled Right Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company.

        Section 9.  Availability of Shares of Preferred Stock.
                    -----------------------------------------

        (a) The Company covenants and agrees that it will cause to be reserved
and kept available out of its authorized and unissued shares of Preferred Stock
or any shares of Preferred Stock held in its treasury, the number of shares of
Preferred Stock that will be sufficient to permit the exercise in full of all
outstanding Rights.

        (b) So long as the shares of Preferred Stock issuable upon the exercise
of Rights may be listed or admitted to trading on any national securities
exchange, or quoted on NASDAQ, the Company shall use its best efforts to cause,
from and after such time as the Rights become exercisable, all shares reserved
for such issuance to be listed or admitted to trading on such exchange, or
quoted on NASDAQ, upon official notice of issuance upon such exercise.

        (c) From and after such time as the Rights become exercisable, the
Company shall use its best efforts, if then necessary to permit the issuance of
shares of Preferred Stock upon the exercise of Rights, to register and qualify
such shares of Preferred Stock under the Securities Act and any applicable state
securities or "Blue Sky" laws (to the extent exemptions therefrom are not
available), cause such registration statement and qualifications to become
effective as soon as possible after such filing and keep such registration and
qualifications effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the earlier of the date as of which
the Rights are no longer exercisable for such securities and the Expiration
Date.  The Company may temporarily suspend, for a period of time not to exceed
90 days, the exercisability of the Rights in order to prepare and file a
registration statement under the Securities Act and permit it to become
effective.  Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is no
longer in effect.  Notwithstanding any provision of this Agreement to the
contrary, the Rights shall not be exercisable in any jurisdiction unless the
requisite qualification in such jurisdiction shall have been obtained and until
a registration statement under the Securities Act shall have been declared
effective, unless an exemption therefrom is available.

        (d) The Company covenants and agrees that it will take all such action
as may be necessary to ensure that all shares of Preferred Stock delivered upon
exercise of Rights shall, at the time of delivery of the certificates therefor
(subject to payment of the Purchase Price), be duly and validly authorized and
issued and fully paid and nonassessable shares.

        (e) The Company further covenants and agrees that it will pay when due
and payable any and all federal and state transfer taxes and charges which may
be payable in respect of the issuance or delivery of the Right Certificates or
of any shares of Preferred Stock

                                      14
<PAGE>

upon the exercise of Rights. The Company shall not, however, be required to pay
any transfer tax which may be payable in respect of any transfer or delivery of
Right Certificates to a Person other than, or the issuance or delivery of
certificates or depositary receipts for the Preferred Stock in a name other than
that of, the registered holder of the Right Certificate evidencing Rights
surrendered for exercise or to issue or deliver any certificates or depositary
receipts for Preferred Stock upon the exercise of any Rights until any such tax
shall have been paid (any such tax being payable by that holder of such Right
Certificate at the time of surrender) or until it has been established to the
Company's reasonable satisfaction that no such tax is due.

        Section 10.  Preferred Stock Record Date.  Each Person in whose name any
                     ---------------------------
certificate for Preferred Stock is issued upon the exercise of Rights shall for
all purposes be deemed to have become the holder of record of the shares of
Preferred Stock represented thereby on, and such certificate shall be dated, the
date upon which the Right Certificate evidencing such Rights was duly
surrendered and payment of the Purchase Price (and any applicable transfer
taxes) was made; provided, however, that if the date of such surrender and
                 --------  -------
payment is a date upon which the Preferred Stock transfer books of the Company
are closed, such Person shall be deemed to have become the record holder of such
shares on, and such certificate shall be dated, the next succeeding Business Day
on which the Preferred Stock transfer books of the Company are open.  Prior to
the exercise of the Rights evidenced thereby, the holder of a Right Certificate
shall not be entitled to any rights of a holder of Preferred Stock for which the
Rights shall be exercisable, including, without limitation, the right to vote or
to receive dividends or other distributions, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

        Section 11.  Adjustment of Purchase Price, Number and Kind of Shares and
                     -----------------------------------------------------------
Number of Rights.  The Purchase Price, the number of shares of Preferred Stock
----------------
or other securities or property purchasable upon exercise of each Right and the
number of Rights outstanding are subject to adjustment from time to time as
provided in this Section 11.

        (a)(i)  In the event the Company shall at any time after the date of
this Agreement (A) declare and pay a dividend on the Preferred Stock payable in
shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C)
combine the outstanding Preferred Stock into a smaller number of shares of
Preferred Stock or (D) issue any shares of its capital stock in a
reclassification of the Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11(a),
the number and kind of shares of capital stock issuable upon exercise of a Right
as of the record date for such dividend or the effective date of such
subdivision, combination or reclassification shall be proportionately adjusted
so that the holder of any Right exercised after such time shall be entitled to
receive the aggregate number and kind of shares of capital stock which, if such
Right had been exercised immediately prior to such date and at a time when the
Preferred Stock transfer books of the Company were open, the holder would have
owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, combination or reclassification.

                                      15
<PAGE>

        (ii)  Subject to Section 24 of this Agreement, in the event any Person
becomes an Acquiring Person (the first occurrence of such event being referred
to hereinafter as the "Flip-In Event"), then (A) the Purchase Price shall be
adjusted to be the Purchase Price in effect immediately prior to the Flip-In
Event multiplied by the number of one one-thousandths of a share of Preferred
Stock for which a Right was exercisable immediately prior to such Flip-In Event,
whether or not such Right was then exercisable, and (B) each holder of a Right,
except as otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii)
hereof, shall thereafter have the right to receive, upon exercise thereof at a
price equal to the Purchase Price (as so adjusted), in accordance with the terms
of this Agreement and in lieu of shares of Preferred Stock, such number of
shares of Common Stock as shall equal the result obtained by dividing the
Purchase Price (as so adjusted) by 50% of the current per share market price of
the Common Stock (determined pursuant to Section 11(d) hereof) on the date of
such Flip-In Event; provided, however, that the Purchase Price (as so adjusted)
                    --------  -------
and the number of shares of Common Stock so receivable upon exercise of a Right
shall, following the Flip-In Event, be subject to further adjustment as
appropriate in accordance with Section 11(f) hereof.  Notwithstanding anything
in this Agreement to the contrary, however, from and after the Flip-In Event,
any Rights that are beneficially owned by (x) any Acquiring Person (or any
Affiliate or Associate of any Acquiring Person), (y) a transferee of any
Acquiring Person (or any such Affiliate or Associate) who becomes a transferee
after the Flip-In Event or (z) a transferee of any Acquiring Person (or any such
Affiliate or Associate) who became a transferee prior to or concurrently with
the Flip-In Event pursuant to either (I) a transfer from the Acquiring Person to
holders of its equity securities or to any Person with whom it has any
continuing agreement, arrangement or understanding regarding the transferred
Rights or (II) a transfer which the Board of Directors has determined is part of
a plan, arrangement or understanding which has the purpose or effect of avoiding
the provisions of this paragraph, and subsequent transferees of such Persons,
shall be void without any further action and any holder of such Rights shall
thereafter have no rights whatsoever with respect to such Rights under any
provision of this Agreement.  The Company shall use all reasonable efforts to
ensure that the provisions of this Section 11(a)(ii) are complied with, but
shall have no liability to any holder of Right Certificates or other Person as a
result of its failure to make any determinations with respect to an Acquiring
Person or its Affiliates, Associates or transferees hereunder.  From and after
the Flip-In Event, no Right Certificate shall be issued pursuant to Section 3 or
Section 6 hereof that represents Rights that are or have become void pursuant to
the provisions of this paragraph, and any Right Certificate delivered to the
Rights Agent that represents Rights that are or have become void pursuant to the
provisions of this paragraph shall be canceled.  From and after the occurrence
of an event specified in Section 13(a) hereof, any Rights that theretofore have
not been exercised pursuant to this Section 11(a)(ii) shall thereafter be
exercisable only in accordance with Section 13 and not pursuant to this Section
11(a)(ii).

        (iii) The Company may at its option substitute for a share of Common
Stock issuable upon the exercise of Rights in accordance with the foregoing
subparagraph (ii) a number of shares of Preferred Stock or fraction thereof such
that the current per share market price of one share of Preferred Stock
multiplied by such number or fraction is equal to the current per share market
price of one share of Common Stock.  In the event that there shall not

                                      16
<PAGE>

be sufficient shares of Common Stock issued but not outstanding or authorized
but unissued to permit the exercise in full of the Rights in accordance with the
foregoing subparagraph (ii), the Board of Directors shall, with respect to such
deficiency, to the extent permitted by applicable law and any material
agreements then in effect to which the Company is a party, (A) determine the
excess (such excess, the "Spread") of (1) the value of the shares of Common
Stock issuable upon the exercise of a Right in accordance with the foregoing
subparagraph (ii) (the "Current Value") over (2) the Purchase Price (as adjusted
in accordance with the foregoing subparagraph (ii)), and (B) with respect to
each Right (other than Rights which have become void pursuant to the foregoing
subparagraph (ii)), make adequate provision to substitute for the shares of
Common Stock issuable in accordance with the foregoing subparagraph (ii) upon
exercise of the Right and payment of the Purchase Price (as adjusted in
accordance therewith), (1) cash, (2) a reduction in such Purchase Price, (3)
shares of Preferred Stock or other equity securities of the Company (including,
without limitation, shares or fractions of shares of preferred stock which, by
virtue of having dividend, voting and liquidation rights substantially
comparable to those of the shares of Common Stock, are deemed in good faith by
the Board of Directors to have substantially the same value as the shares of
Common Stock (such shares of Preferred Stock and shares or fractions of shares
of preferred stock are hereinafter referred to as "Common Stock Equivalents")),
(4) debt securities of the Company, (5) other assets, or (6) any combination of
the foregoing, having a value which, when added to the value of the shares of
Common Stock issued upon exercise of such Right, shall have an aggregate value
equal to the Current Value (less the amount of any reduction in such Purchase
Price), where such aggregate value has been determined by the Board of Directors
upon the advice of a nationally recognized investment banking firm selected in
good faith by the Board of Directors; provided, however, that if the Company
                                      --------  -------
shall not make adequate provision to deliver value pursuant to clause (B) above
within thirty (30) days following the Flip-In Event (the date of the Flip-In
Event being the "Section 11(a)(ii) Trigger Date"), then the Company shall be
obligated to deliver, to the extent permitted by applicable law and any material
agreements then in effect to which the Company is a party, upon the surrender
for exercise of a Right and without requiring payment of such Purchase Price,
shares of Common Stock (to the extent available), and then, if necessary, such
number or fractions of shares of Preferred Stock (to the extent available) and
then, if necessary, cash, which shares and/or cash have an aggregate value equal
to the Spread.  If, upon the occurrence of the Flip-In Event, the Board of
Directors shall determine in good faith that it is likely that sufficient
additional shares of Common Stock could be authorized for issuance upon exercise
in full of the Rights, then, if the Board of Directors so elects, the thirty
(30) day period set forth above may be extended to the extent necessary, but not
more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order
that the Company may seek stockholder approval for the authorization of such
additional shares (such thirty (30) day period, as it may be extended, is herein
called the "Substitution Period").  To the extent that the Company determines
that some action need be taken pursuant to the second and/or third sentence of
this Section 11(a)(iii), the Company (x) shall provide, subject to Section
11(a)(ii) hereof and the last sentence of this Section 11(a)(iii) hereof, that
such action shall apply uniformly to all outstanding Rights and (y) may suspend
the exercisability of the Rights until the expiration of the Substitution Period
in order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such second sentence and

                                      17
<PAGE>

to determine the value thereof. In the event of any such suspension, the Company
shall issue a public announcement stating that the exercisability of the Rights
has been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. For purposes of this Section 11(a)(iii),
the value of the shares of Common Stock shall be the current per share market
price (as determined pursuant to Section 11(d)(i)) on the Section 11(a)(ii)
Trigger Date and the per share or fractional value of any "Common Stock
Equivalent" shall be deemed to equal the current per share market price of the
Common Stock. The Board of Directors of the Company may, but shall not be
required to, establish procedures to allocate the right to receive shares of
Common Stock upon the exercise of the Rights among holders of Rights pursuant to
this Section 11(a)(iii).

        (b) In case the Company shall fix a record date for the issuance of
rights, options or warrants to all holders of Preferred Stock entitling them
(for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preferred Stock (or shares having the same rights,
privileges and preferences as the Preferred Stock ("Equivalent Preferred
Shares")) or securities convertible into Preferred Stock or Equivalent Preferred
Shares at a price per share of Preferred Stock or Equivalent Preferred Shares
(or having a conversion price per share, if a security convertible into shares
of Preferred Stock or Equivalent Preferred Shares) less than the then current
per share market price of the Preferred Stock (determined pursuant to Section
11(d) hereof) on such record date, the Purchase Price to be in effect after such
record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which
shall be the number of shares of Preferred Stock and Equivalent Preferred Shares
outstanding on such record date plus the number of shares of Preferred Stock and
Equivalent Preferred Shares which the aggregate offering price of the total
number of shares of Preferred Stock and/or Equivalent Preferred Shares so to be
offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such current market price, and
the denominator of which shall be the number of shares of Preferred Stock and
Equivalent Preferred Shares outstanding on such record date plus the number of
additional shares of Preferred Stock and/or Equivalent Preferred Shares to be
offered for subscription or purchase (or into which the convertible securities
so to be offered are initially convertible); provided, however, that in no event
                                             --------  -------
shall the consideration to be paid upon the exercise of one Right be less than
the aggregate par value of the shares of capital stock of the Company issuable
upon exercise of one Right.  In case such subscription price may be paid in a
consideration part or all of which shall be in a form other than cash, the value
of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent.  Shares of Preferred Stock and Equivalent Preferred
Shares owned by or held for the account of the Company shall not be deemed
outstanding for the purpose of any such computation.  Such adjustment shall be
made successively whenever such a record date is fixed; and in the event that
such rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price which would then be in effect if such record
date had not been fixed.

        (c) In case the Company shall fix a record date for the making of a
distribution to all holders of the Preferred Stock (including any such
distribution made in

                                      18
<PAGE>

connection with a consolidation or merger in which the Company is the continuing
or surviving corporation) of evidences of indebtedness or assets (other than a
regular quarterly cash dividend or a dividend payable in Preferred Stock) or
subscription rights or warrants (excluding those referred to in Section 11(b)
hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the then current per
share market price of the Preferred Stock (determined pursuant to Section 11(d)
hereof) on such record date, less the fair market value (as determined in good
faith by the Board of Directors of the Company whose determination shall be
described in a statement filed with the Rights Agent) of the portion of the
assets or evidences of indebtedness so to be distributed or of such subscription
rights or warrants applicable to one share of Preferred Stock, and the
denominator of which shall be such current per share market price (determined
pursuant to Section 11(d) hereof) of the Preferred Stock; provided, however,
                                                          --------  --------
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of the
Company to be issued upon exercise of one Right. Such adjustments shall be made
successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be
the Purchase Price which would then be in effect if such record date had not
been fixed.

        (d)(i) Except as otherwise provided herein, for the purpose of any
computation hereunder, the "current per share market price" of any security (a
"Security" for the purpose of this Section 11(d)(i)) on any date shall be deemed
to be the average of the daily closing prices per share of such Security for the
30 consecutive Trading Days (as such term is hereinafter defined) immediately
prior to such date; provided, however, that in the event that the current per
                    --------  -------
share market price of the Security is determined during a period following the
announcement by the issuer of such Security of (A) a dividend or distribution on
such Security payable in shares of such Security or securities convertible into
such shares, or (B) any subdivision, combination or reclassification of such
Security, and prior to the expiration of 30 Trading Days after the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the current per
share market price shall be appropriately adjusted to reflect the current market
price per share equivalent of such Security.  The closing price for each day
shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported by the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ
or such other system then in use, or, if on any such date the Security is not
quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Security
selected by the Board of Directors of the Company.  The term "Trading Day" shall
mean a day on which the principal national

                                      19
<PAGE>

securities exchange on which the Security is listed or admitted to trading is
open for the transaction of business or, if the Security is not listed or
admitted to trading on any national securities exchange, a Business Day.

        (ii) For the purpose of any computation hereunder, if the Preferred
Stock is publicly traded, the "current per share market price" of the Preferred
Stock shall be determined in accordance with the method set forth in Section
11(d)(i).  If the Preferred Stock is not publicly traded but the Common Stock is
publicly traded, the "current per share market price" of the Preferred Stock
shall be conclusively deemed to be the current per share market price of the
Common Stock as determined pursuant to Section 11(d)(i) multiplied by the then
applicable Adjustment Number (as defined in and determined in accordance with
the Certificate of Designation for the Preferred Stock).  If neither the Common
Stock nor the Preferred Stock is publicly traded, "current per share market
price" shall mean the fair value per share as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent.

        (e)  No adjustment in the Purchase Price shall be required unless such
adjustment would require an increase or decrease of at least 1% in the Purchase
Price; provided, however, that any adjustments which by reason of this Section
       --------  -------
11(e) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment.  All calculations under this Section 11
shall be made to the nearest cent or to the nearest one hundred-thousandth of a
share of Preferred Stock or one-hundredth of a share of Common Stock or other
share or security as the case may be.  Notwithstanding the first sentence of
this Section 11(e), any adjustment required by this Section 11 shall be made no
later than the earlier of (i) three years from the date of the transaction which
requires such adjustment or (ii) the Expiration Date.

        (f)  If as a result of an adjustment made pursuant to Section 11(a)
hereof, the holder of any Right thereafter exercised shall become entitled to
receive any shares of capital stock of the Company other than the Preferred
Stock, thereafter the Purchase Price and the number of such other shares so
receivable upon exercise of a Right shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Preferred Stock contained in Sections 11(a),
11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) hereof, as applicable, and the
provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred
Stock shall apply on like terms to any such other shares.

        (g)  All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-thousandths of a
share of Preferred Stock purchasable from time to time hereunder upon exercise
of the Rights, all subject to further adjustment as provided herein.

        (h)  Unless the Company shall have exercised its election as provided in
Section 11(i), upon each adjustment of the Purchase Price as a result of the
calculations made

                                      20
<PAGE>

in Sections 11(b) and 11(c), each Right outstanding immediately prior to the
making of such adjustment shall thereafter evidence the right to purchase, at
the adjusted Purchase Price, that number of one one-thousandths of a share of
Preferred Stock (calculated to the nearest one hundred-thousandth of a share of
Preferred Stock) obtained by (i) multiplying (x) the number of one one-
thousandths of a share purchasable upon the exercise of a Right immediately
prior to such adjustment by (y) the Purchase Price in effect immediately prior
to such adjustment and (ii) dividing the product so obtained by the Purchase
Price in effect immediately after such adjustment.

        (i) The Company may elect on or after the date of any adjustment of the
Purchase Price pursuant to Sections 11(b) or 11(c) hereof to adjust the number
of Rights, in substitution for any adjustment in the number of one one-
thousandths of a share of Preferred Stock purchasable upon the exercise of a
Right.  Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to such
adjustment.  Each Right held of record prior to such adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest one-
hundredth) obtained by dividing the Purchase Price in effect immediately prior
to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price.  The Company shall make a public
announcement of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made.  Such record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but, if the Right Certificates have
been issued, shall be at least 10 days later than the date of the public
announcement.  If Right Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 11(i), the Company may, as
promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to
Section 14 hereof, the additional Rights to which such holders shall be entitled
as a result of such adjustment, or, at the option of the Company, shall cause to
be distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment.  Right Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein and shall be registered in
the names of the holders of record of Right Certificates on the record date
specified in the public announcement.

        (j) Irrespective of any adjustment or change in the Purchase Price or
the number of one one-thousandths of a share of Preferred Stock issuable upon
the exercise of a Right, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price and the number of one one-
thousandths of a share of Preferred Stock which were expressed in the initial
Right Certificates issued hereunder.

        (k) Before taking any action that would cause an adjustment reducing the
Purchase Price below the then par value, if any, of the fraction of Preferred
Stock or other shares of capital stock issuable upon exercise of a Right, the
Company shall take any corporate

                                      21
<PAGE>

action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Preferred Stock or other such shares at such adjusted Purchase Price.

        (l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event issuing to the holder of any Right exercised after such record date the
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the Preferred Stock and other capital
stock or securities of the Company, if any, issuable upon such exercise on the
basis of the Purchase Price in effect prior to such adjustment; provided,
                                                                --------
however, that the Company shall deliver to such holder a due bill or other
-------
appropriate instrument evidencing such holder's right to receive such additional
shares upon the occurrence of the event requiring such adjustment.

        (m) Anything in this Section 11 to the contrary notwithstanding, the
Company shall be entitled to make such adjustments in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that it in its sole discretion shall determine to be advisable in
order that any consolidation or subdivision of the Preferred Stock, issuance
wholly for cash of any shares of Preferred Stock at less than the current market
price, issuance wholly for cash of Preferred Stock or securities which by their
terms are convertible into or exchangeable for Preferred Stock, dividends on
Preferred Stock payable in shares of Preferred Stock or issuance of rights,
options or warrants referred to hereinabove in Section 11(b), hereafter made by
the Company to holders of its Preferred Stock shall not be taxable to such
stockholders.

        (n) Anything in this Agreement to the contrary notwithstanding, in the
event that at any time after the date of this Agreement and prior to the
Distribution Date, the Company shall (i) declare and pay any dividend on the
Common Stock payable in Common Stock or (ii) effect a subdivision, combination
or consolidation of the Common Stock (by reclassification or otherwise than by
payment of a dividend payable in Common Stock) into a greater or lesser number
of shares of Common Stock, then, in each such case, the number of Rights
associated with each share of Common Stock then outstanding, or issued or
delivered thereafter, shall be proportionately adjusted so that the number of
Rights thereafter associated with each share of Common Stock following any such
event shall equal the result obtained by multiplying the number of Rights
associated with each share of Common Stock immediately prior to such event by a
fraction the numerator of which shall be the total number of shares of Common
Stock outstanding immediately prior to the occurrence of the event and the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately following the occurrence of such event.

        (o) The Company agrees that, after the earlier of the Distribution Date
or the Stock Acquisition Date, it will not, except as permitted by Sections 23,
24 or 27 hereof, take (or permit any Subsidiary to take) any action if at the
time such action is taken it is reasonably foreseeable that such action will
diminish substantially or eliminate the benefits intended to be afforded by the
Rights.

                                      22
<PAGE>

        Section 12.  Certificate of Adjusted Purchase Price or Number of Shares.
                     ----------------------------------------------------------
Whenever an adjustment is made as provided in Section 11 or 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment,
and a brief statement of the facts accounting for such adjustment, (b) file with
the Rights Agent and with each transfer agent for the Common Stock and the
Preferred Stock a copy of such certificate and (c) mail a brief summary thereof
to each holder of a Right Certificate in accordance with Section 25 hereof (if
so required under Section 25 hereof).  The Rights Agent shall be fully protected
in relying on any such certificate and on any adjustment therein contained and
shall not be deemed to have knowledge of any such adjustment unless and until it
shall have received such certificate.

        Section 13.  Consolidation, Merger or Sale or Transfer of Assets or
                     ------------------------------------------------------
Earning Power.
-------------

                                      23
<PAGE>

        (a) In the event, directly or indirectly, at any time after the Flip-In
Event (i) the Company shall consolidate with or shall merge into any other
Person, (ii) any Person shall merge with and into the Company and the Company
shall be the continuing or surviving corporation of such merger and, in
connection with such merger, all or part of the Common Stock shall be changed
into or exchanged for stock or other securities of any other Person (or of the
Company) or cash or any other property, or (iii) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating 50%
or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person (other than the Company or one or more
wholly-owned Subsidiaries of the Company), then upon the first occurrence of
such event, proper provision shall be made so that: (A) each holder of a Right
(other than Rights which have become void pursuant to Section 11(a)(ii) hereof)
shall thereafter have the right to receive, upon the exercise thereof at the
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof), in accordance with the terms of this Agreement and in lieu of shares of
Preferred Stock or Common Stock of the Company, such number of validly
authorized and issued, fully paid, non-assessable and freely tradeable shares of
Common Stock of the Principal Party (as such term is hereinafter defined), not
subject to any liens, encumbrances, rights of first refusal or other adverse
claims, as shall equal the result obtained by dividing the Purchase Price (as
theretofore adjusted in accordance with Section 11(a)(ii) hereof) by 50% of the
current per share market price of the Common Stock of such Principal Party
(determined pursuant to Section 11(d) hereof) on the date of consummation of
such consolidation, merger, sale or transfer; provided, however, that the
                                              --------  -------
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof) and the number of shares of Common Stock of such Principal Party so
receivable upon exercise of a Right shall be subject to further adjustment as
appropriate in accordance with Section 11(f) hereof to reflect any events
occurring in respect of the Common Stock of such Principal Party after the
occurrence of such consolidation, merger, sale or transfer; (B) such Principal
Party shall thereafter be liable for, and shall assume, by virtue of such
consolidation, merger, sale or transfer, all the obligations and duties of the
Company pursuant to this Agreement; (C) the term "Company" shall thereafter be
deemed to refer to such Principal Party; and (D) such Principal Party shall take
such steps (including, but not limited to, the reservation of a sufficient
number of its shares of Common Stock in accordance with Section 9 hereof) in
connection with such consummation of any such transaction as may be necessary to
assure that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to the shares of its Common Stock thereafter
deliverable upon the exercise of the Rights; provided that, upon the subsequent
occurrence of any consolidation, merger, sale or transfer of assets or other
extraordinary transaction in respect of such Principal Party, each holder of a
Right shall thereupon be entitled to receive, upon exercise of a Right and
payment of the Purchase Price as provided in this Section 13(a), such cash,
shares, rights, warrants and other property which such holder would have been
entitled to receive had such holder, at the time of such transaction, owned the
Common Stock of the Principal Party receivable upon the exercise of a Right
pursuant to this Section 13(a), and such Principal Party shall take such steps
(including, but not limited to, reservation of shares of stock) as may be
necessary to permit the subsequent exercise of the Rights in accordance with the
terms hereof for such cash, shares, rights, warrants and other property.

                                      24
<PAGE>

        (b) "Principal Party" shall mean:

            (i)   in the case of any transaction described in (i) or (ii) of
the first sentence of Section 13(a) hereof: (A) the Person that is the issuer of
the securities into which the shares of Common Stock are converted in such
merger or consolidation, or, if there is more than one such issuer, the issuer
the shares of Common Stock of which have the greatest aggregate market value of
shares outstanding, or (B) if no securities are so issued, (x) the Person that
is the other party to the merger, if such Person survives said merger, or, if
there is more than one such Person, the Person the shares of Common Stock of
which have the greatest aggregate market value of shares outstanding or (y) if
the Person that is the other party to the merger does not survive the merger,
the Person that does survive the merger (including the Company if it survives)
or (z) the Person resulting from the consolidation; and

            (ii)  in the case of any transaction described in (iii) of the
first sentence of Section 13(a) hereof, the Person that is the party receiving
the greatest portion of the assets or earning power transferred pursuant to such
transaction or transactions, or, if each Person that is a party to such
transaction or transactions receives the same portion of the assets or earning
power so transferred or if the Person receiving the greatest portion of the
assets or earning power cannot be determined, whichever of such Persons is the
issuer of Common Stock having the greatest aggregate market value of shares
outstanding;

provided, however, that in any such case described in the foregoing clause
(b)(i) or (b)(ii), if the Common Stock of such Person is not at such time or has
not been continuously over the preceding 12-month period registered under
Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect
Subsidiary of another Person the Common Stock of which is and has been so
registered, the term "Principal Party" shall refer to such other Person, or (2)
if such Person is a Subsidiary, directly or indirectly, of more than one Person,
the Common Stock of all of which is and has been so registered, the term
"Principal Party" shall refer to whichever of such Persons is the issuer of
Common Stock having the greatest aggregate market value of shares outstanding,
or (3) if such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by the
same Person, the rules set forth in clauses (1) and (2) above shall apply to
each of the owners having an interest in the venture as if the Person owned by
the joint venture was a Subsidiary of both or all of such joint venturers, and
the Principal Party in each such case shall bear the obligations set forth in
this Section 13 in the same ratio as its interest in such Person bears to the
total of such interests.

        (c) The Company shall not consummate any consolidation, merger, sale or
transfer referred to in Section 13(a) hereof unless prior thereto the Company
and the Principal Party involved therein shall have executed and delivered to
the Rights Agent an agreement confirming that the requirements of Sections 13(a)
and (b) hereof shall promptly be performed in accordance with their terms and
that such consolidation, merger, sale or transfer of assets shall not result in
a default by the Principal Party under this Agreement as the same shall have
been assumed by the Principal Party pursuant to Sections 13(a) and (b) hereof
and providing

                                      25
<PAGE>

that, as soon as practicable after executing such agreement pursuant to this
Section 13, the Principal Party will:

            (i)   prepare and file a registration statement under the Securities
Act, if necessary, with respect to the Rights and the securities purchasable
upon exercise of the Rights on an appropriate form, use its best efforts to
cause such registration statement to become effective as soon as practicable
after such filing and use its best efforts to cause such registration statement
to remain effective (with a prospectus at all times meeting the requirements of
the Securities Act) until the Expiration Date and similarly comply with
applicable state securities laws;

            (ii)  use its best efforts, if the Common Stock of the Principal
Party shall be listed or admitted to trading on the New York Stock Exchange or
on another national securities exchange, to list or admit to trading (or
continue the listing of) the Rights and the securities purchasable upon exercise
of the Rights on the New York Stock Exchange or such securities exchange, or, if
the Common Stock of the Principal Party shall not be listed or admitted to
trading on the New York Stock Exchange or a national securities exchange, to
cause the Rights and the securities receivable upon exercise of the Rights to be
authorized for quotation on NASDAQ or on such other system then in use;

            (iii) deliver to holders of the Rights historical financial
statements for the Principal Party which comply in all respects with the
requirements for registration on Form 10 (or any successor form) under the
Exchange Act; and

            (iv)  obtain waivers of any rights of first refusal or preemptive
rights in respect of the Common Stock of the Principal Party subject to purchase
upon exercise of outstanding Rights.

        (d) In case the Principal Party has a provision in any of its authorized
securities or in its certificate of incorporation or by-laws or other instrument
governing its affairs, which provision would have the effect of (i) causing such
Principal Party to issue (other than to holders of Rights pursuant to this
Section 13), in connection with, or as a consequence of, the consummation of a
transaction referred to in this Section 13, shares of Common Stock or Common
Stock Equivalents of such Principal Party at less than the then current market
price per share thereof (determined pursuant to Section 11(d) hereof) or
securities exercisable for, or convertible into, Common Stock or Common Stock
Equivalents of such Principal Party at less than such then current market price,
or (ii) providing for any special payment, tax or similar provision in
connection with the issuance of the Common Stock of such Principal Party
pursuant to the provisions of Section 13, then, in such event, the Company
hereby agrees with each holder of Rights that it shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement providing
that the provision in question of such Principal Party shall have been canceled,
waived or amended, or that the authorized securities shall be redeemed, so that
the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

                                      26
<PAGE>

        (e) The Company covenants and agrees that it shall not, at any time
after the Flip-In Event, enter into any transaction of the type described in
clauses (i) through (iii) of Section 13(a) hereof if (i) at the time of or
immediately after such consolidation, merger, sale, transfer or other
transaction there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights, (ii)
prior to, simultaneously with or immediately after such consolidation, merger,
sale, transfer or other transaction, the stockholders of the Person who
constitutes, or would constitute, the Principal Party for purposes of Section
13(b) hereof shall have received a distribution of Rights previously owned by
such Person or any of its Affiliates or Associates or (iii) the form or nature
of organization of the Principal Party would preclude or limit the
exercisability of the Rights.

        Section 14.  Fractional Rights and Fractional Shares.
                     ---------------------------------------

        (a) The Company shall not be required to issue fractions of Rights
(except prior to the Distribution Date in accordance with Section 11(n) hereof)
or to distribute Right Certificates which evidence fractional Rights.  In lieu
of such fractional Rights, there shall be paid to the registered holders of the
Right Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right.  For the purposes of this Section 14(a), the current
market value of a whole Right shall be the closing price of the Rights for the
Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable.  The closing price for any day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the New York Stock Exchange or,
if the Rights are not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange
on which the Rights are listed or admitted to trading or, if the Rights are not
listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by NASDAQ or such other
system then in use or, if on any such date the Rights are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Rights selected by the Board of
Directors of the Company.  If on any such date no such market maker is making a
market in the Rights, the fair value of the Rights on such date as determined in
good faith by the Board of Directors of the Company shall be used.

        (b) The Company shall not be required to issue fractions of Preferred
Stock (other than fractions which are integral multiples of one one-thousandth
of a share of Preferred Stock) or to distribute certificates which evidence
fractional shares of Preferred Stock (other than fractions which are integral
multiples of one one-thousandth of a share of Preferred Stock) upon the exercise
or exchange of Rights.  Interests in fractions of Preferred Stock in integral
multiples of one one-thousandth of a share of Preferred Stock may, at the
election of

                                      27
<PAGE>

the Company, be evidenced by depositary receipts, pursuant to an appropriate
agreement between the Company and a depositary selected by it; provided, that
                                                               --------
such agreement shall provide that the holders of such depositary receipts shall
have all the rights, privileges and preferences to which they are entitled as
beneficial owners of the Preferred Stock represented by such depositary
receipts. In lieu of fractional shares of Preferred Stock that are not integral
multiples of one one-thousandth of a share of Preferred Stock, the Company shall
pay to the registered holders of Right Certificates at the time such Rights are
exercised or exchanged as herein provided an amount in cash equal to the same
fraction of the current market value of a whole share of Preferred Stock (as
determined in accordance with Section 14(a) hereof) for the Trading Day
immediately prior to the date of such exercise or exchange.

        (c) The Company shall not be required to issue fractions of shares of
Common Stock or to distribute certificates which evidence fractional shares of
Common Stock upon the exercise or exchange of Rights.  In lieu of such
fractional shares of Common Stock, the Company shall pay to the registered
holders of the Right Certificates with regard to which such fractional shares of
Common Stock would otherwise be issuable an amount in cash equal to the same
fraction of the current market value of a whole share of Common Stock (as
determined in accordance with Section 14(a) hereof) for the Trading Day
immediately prior to the date of such exercise or exchange.

        (d) The holder of a Right by the acceptance of the Right expressly
waives his right to receive any fractional Rights or any fractional shares upon
exercise or exchange of a Right (except as provided above).

        Section 15.  Rights of Action.  All rights of action in respect of this
                     ----------------
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Stock); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Stock), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Stock), on his own behalf and for his own
benefit, may enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, his
right to exercise the Rights evidenced by such Right Certificate (or, prior to
the Distribution Date, such Common Stock) in the manner provided therein and in
this Agreement.  Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement and
will be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of, the obligations of
any Person subject to this Agreement.

        Section 16.  Agreement of Right Holders.  Every holder of a Right, by
                     --------------------------
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

                                      28
<PAGE>

        (a) prior to the Distribution Date, the Rights will be transferable only
in connection with the transfer of the Common Stock;

        (b) after the Distribution Date, the Right Certificates are transferable
only on the registry books of the Rights Agent if surrendered at the office or
agency of the Rights Agent designated for such purpose, duly endorsed or
accompanied by a proper instrument of transfer; and

        (c) the Company and the Rights Agent may deem and treat the Person in
whose name the Right Certificate (or, prior to the Distribution Date, the Common
Stock certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or writing on the
Right Certificates or the Common Stock certificate made by anyone other than the
Company or the Rights Agent) for all purposes whatsoever, and neither the
Company nor the Rights Agent, subject to Section 7(e) hereof, shall be affected
by any notice to the contrary.

        Section 17.  Right Certificate Holder Not Deemed a Stockholder.  No
                     -------------------------------------------------
holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the Preferred Stock or any
other securities of the Company which may at any time be issuable on the
exercise or exchange of the Rights represented thereby, nor shall anything
contained herein or in any Right Certificate be construed to confer upon the
holder of any Right Certificate, as such, any of the rights of a stockholder of
the Company or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in this Agreement), or to
receive dividends or subscription rights, or otherwise, until the Rights
evidenced by such Right Certificate shall have been exercised or exchanged in
accordance with the provisions hereof.

        Section 18.  Concerning the Rights Agent.
                     ---------------------------

        (a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder.  The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability or expense, incurred without gross negligence, bad faith or
willful misconduct on the part of the Rights Agent, for anything done or omitted
by the Rights Agent in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending against any claim of
liability arising therefrom, directly or indirectly.

        (b) The Rights Agent shall be protected and shall incur no liability
for, or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Right
Certificate or certificate for the Preferred Stock or

                                      29
<PAGE>

Common Stock or for other securities of the Company, instrument of assignment or
transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, statement or other paper or document believed by it to be
genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper Person or Persons, or otherwise upon the advice of
counsel as set forth in Section 20 hereof.

        Section 19.  Merger or Consolidation or Change of Name of Rights Agent.
                     ---------------------------------------------------------

        (a) Any corporation into which the Rights Agent or any successor Rights
Agent may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Rights Agent or any
successor Rights Agent shall be a party, or any corporation succeeding to the
stock transfer or corporate trust powers of the Rights Agent or any successor
Rights Agent, shall be the successor to the Rights Agent under this Agreement
without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided, that such corporation would be eligible for
                           --------
appointment as a successor Rights Agent under the provisions of Section 21
hereof.  In case at the time such successor Rights Agent shall succeed to the
agency created by this Agreement, any of the Right Certificates shall have been
countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Right Certificates either in the name of the predecessor Rights
Agent or in the name of the successor Rights Agent; and in all such cases such
Right Certificates shall have the full force provided in the Right Certificates
and in this Agreement.

        (b) In case at any time the name of the Rights Agent shall be changed
and at such time any of the Right Certificates shall have been countersigned but
not delivered, the Rights Agent may adopt the countersignature under its prior
name and deliver Right Certificates so countersigned; and in case at that time
any of the Right Certificates shall not have been countersigned, the Rights
Agent may countersign such Right Certificates either in its prior name or in its
changed name and in all such cases such Right Certificates shall have the full
force provided in the Right Certificates and in this Agreement.

        Section 20.  Duties of Rights Agent.  The Rights Agent undertakes the
                     ----------------------
duties and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

        (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company), and the opinion of such counsel shall be full and
complete authorization and protection to the Rights Agent as to any action taken
or omitted by it in good faith and in accordance with such opinion.

        (b) Whenever in the performance of its duties under this Agreement the
Rights Agent shall deem it necessary or desirable that any fact or matter be
proved or established by

                                      30
<PAGE>

the Company prior to taking or suffering any action hereunder, such fact or
matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a
certificate signed by the President and the Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under
the provisions of this Agreement in reliance upon such certificate.

        (c) The Rights Agent shall be liable hereunder to the Company and any
other Person only for its own gross negligence, bad faith or willful misconduct.

        (d) The Rights Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.

        (e) The Rights Agent shall not be under any responsibility in respect of
the validity of this Agreement or the execution and delivery hereof (except the
due execution hereof by the Rights Agent) or in respect of the validity or
execution of any Right Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Right Certificate; nor shall it
be responsible for any change in the exercisability of the Rights (including the
Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in
the terms of the Rights provided for in Sections 3, 11, 13, 23 and 24, or the
ascertaining of the existence of facts that would require any such change or
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of a certificate furnished pursuant to Section 12,
describing such change or adjustment); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any shares of Preferred Stock or other securities to be issued
pursuant to this Agreement or any Right Certificate or as to whether any shares
of Preferred Stock or other securities will, when issued, be validly authorized
and issued, fully paid and nonassessable.

        (f) The Company agrees that it will perform, execute, acknowledge and
deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be required
by the Rights Agent for the carrying out or performing by the Rights Agent of
the provisions of this Agreement.

        (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
person reasonably believed by the Rights Agent to be one of the President or the
Secretary of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and it shall not be liable for any
action taken or suffered by it in good faith in accordance with instructions of
any such officer or for any delay in acting while waiting for those
instructions.  Any application by the Rights Agent for written instructions from
the Company may, at the option of the Rights Agent, set forth in writing any
action proposed to be taken or omitted by the Rights Agent under this Agreement
and the date on and/or after which such action shall be taken or such

                                      31
<PAGE>

omission shall be effective. The Rights Agent shall not be liable for any action
taken by, or omission of, the Rights Agent in accordance with a proposal
included in any such application on or after the date specified in such
application (which date shall not be less than five Business Days after the date
any officer of the Company actually receives such application unless any such
officer shall have consented in writing to an earlier date) unless, prior to
taking any such action (or the effective date in the case of an omission), the
Rights Agent shall have received written instructions in response to such
application specifying the action to be taken or omitted.

        (h) The Rights Agent and any stockholder, director, officer or employee
of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement.  Nothing herein shall preclude the Rights Agent from
acting in any other capacity for the Company or for any other legal entity.

        (i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection
and continued employment thereof.

        (j) If, with respect to any Rights Certificate surrendered to the Rights
Agent for exercise or transfer, the certificate contained in the form of
assignment or the form of election to purchase set forth on the reverse thereof,
as the case may be, has not been completed to certify the holder is not an
Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof,
the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

        Section 21.  Change of Rights Agent.  The Rights Agent or any successor
                     ----------------------
Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days' notice in writing mailed to the Company and to each transfer agent
of the Common Stock or Preferred Stock by registered or certified mail, and,
following the Distribution Date, to the holders of the Right Certificates by
first-class mail.  The Company may remove the Rights Agent or any successor
Rights Agent upon 30 days' notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the
Common Stock or Preferred Stock by registered or certified mail, and, following
the Distribution Date, to the holders of the Right Certificates by first-class
mail.  If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent.
If the Company shall fail to make such appointment within a period of 30 days
after giving notice of such removal or after it has been notified in writing of
such resignation or incapacity by the resigning or incapacitated Rights Agent or
by the holder of a Right Certificate (who shall, with such notice, submit his
Right Certificate for inspection by the Company), then the registered holder of
any Right Certificate

                                      32
<PAGE>

may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Company or by
such a court, shall be a corporation organized and doing business under the laws
of the United States or the laws of any state of the United States or the
District of Columbia, in good standing, having an office in the State of Texas
or the State of New York, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or
examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50
million. After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally
named as Rights Agent without further act or deed; but the predecessor Rights
Agent shall deliver and transfer to the successor Rights Agent any property at
the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock or
Preferred Stock, and, following the Distribution Date, mail a notice thereof in
writing to the registered holders of the Right Certificates. Failure to give any
notice provided for in this Section 21, however, or any defect therein, shall
not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.

        Section 22.  Issuance of New Right Certificates.  Notwithstanding any of
                     ----------------------------------
the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such forms
as may be approved by its Board of Directors to reflect any adjustment or change
in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement.  In addition, in connection
with the issuance or sale of Common Stock following the Distribution Date and
prior to the Expiration Date, the Company may with respect to shares of Common
Stock so issued or sold pursuant to (i) the exercise of stock options, (ii)
under any employee plan or arrangement, (iii) upon the exercise, conversion or
exchange of securities, notes or debentures issued by the Company or (iv) a
contractual obligation of the Company, in each case existing prior to the
Distribution Date, issue Rights Certificates representing the appropriate number
of Rights in connection with such issuance or sale.

        Section 23.  Redemption.
                     ----------

        (a) The Board of Directors of the Company may, at any time prior to the
Flip-In Event, redeem all but not less than all the then outstanding Rights at a
redemption price of $.01 per Right, appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring in respect of the Common
Stock after the date hereof (the redemption price being hereinafter referred to
as the "Redemption Price").  The redemption of the Rights may be made effective
at such time, on such basis and with such conditions as the Board of Directors
in its sole discretion may establish.  The Redemption Price shall be payable, at
the option of the Company, in cash, shares of Common Stock, or such other form
of consideration as the Board of Directors shall determine.

                                      33
<PAGE>

        (b) Immediately upon the action of the Board of Directors ordering the
redemption of the Rights pursuant to paragraph (a) of this Section 23 (or at
such later time as the Board of Directors may establish for the effectiveness of
such redemption), and without any further action and without any notice, the
right to exercise the Rights will terminate and the only right thereafter of the
holders of Rights shall be to receive the Redemption Price.  The Company shall
promptly give public notice of any such redemption; provided, however, that the
                                                    --------  -------
failure to give, or any defect in, any such notice shall not affect the validity
of such redemption.  Within 10 days after such action of the Board of Directors
ordering the redemption of the Rights (or such later time as the Board of
Directors may establish for the effectiveness of such redemption), the Company
shall mail a notice of redemption to all the holders of the then outstanding
Rights at their last addresses as they appear upon the registry books of the
Rights Agent or, prior to the Distribution Date, on the registry books of the
transfer agent for the Common Stock.  Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice.  Each such notice of redemption shall state the method by which the
payment of the Redemption Price will be made.

        Section 24.  Exchange.
                     --------

        (a) The Board of Directors of the Company may, at its option, at any
time after the Flip-In Event, exchange all or part of the then outstanding and
exercisable Rights (which shall not include Rights that have become void
pursuant to the provisions of Section 11(a)(ii) hereof) for Common Stock at an
exchange ratio of one share of Common Stock per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring in
respect of the Common Stock after the date hereof (such amount per Right being
hereinafter referred to as the "Exchange Ratio").  Notwithstanding the
foregoing, the Board of Directors shall not be empowered to effect such exchange
at any time after an Acquiring Person shall have become the Beneficial Owner of
shares of Common Stock aggregating 50% or more of the shares of Common Stock
then outstanding.  From and after the occurrence of an event specified in
Section 13(a) hereof, any Rights that theretofore have not been exchanged
pursuant to this Section 24(a) shall thereafter be exercisable only in
accordance with Section 13 and may not be exchanged pursuant to this Section
24(a).  The exchange of the Rights by the Board of Directors may be made
effective at such time, on such basis and with such conditions as the Board of
Directors in its sole discretion may establish.

        (b) Immediately upon the effectiveness of the action of the Board of
Directors of the Company ordering the exchange of any Rights pursuant to
paragraph (a) of this Section 24 and without any further action and without any
notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of shares
of Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio.  The Company shall promptly give public notice
of any such exchange; provided, however, that the failure to give, or any defect
                      --------  -------
in, such notice shall not affect the validity of such exchange.  The Company
shall promptly mail a notice of any such exchange to all of the holders of the
Rights so exchanged at their last addresses as they

                                      34
<PAGE>

appear upon the registry books of the Rights Agent. Any notice which is mailed
in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of exchange will state the method by which
the exchange of the shares of Common Stock for Rights will be effected and, in
the event of any partial exchange, the number of Rights which will be exchanged.
Any partial exchange shall be effected pro rata based on the number of Rights
(other than Rights which have become void pursuant to the provisions of Section
11(a)(ii) hereof) held by each holder of Rights.

        (c) The Company may at its option substitute, and, in the event that
there shall not be sufficient shares of Common Stock issued but not outstanding
or authorized but unissued to permit an exchange of Rights for Common Stock as
contemplated in accordance with this Section 24, the Company shall substitute to
the extent of such insufficiency, for each share of Common Stock that would
otherwise be issuable upon exchange of a Right, a number of shares of Preferred
Stock or fraction thereof (or Equivalent Preferred Shares, as such term is
defined in Section 11(b)) such that the current per share market price
(determined pursuant to Section 11(d) hereof) of one share of Preferred Stock
(or Equivalent Preferred Share) multiplied by such number or fraction is equal
to the current per share market price of one share of Common Stock (determined
pursuant to Section 11(d) hereof) as of the date of such exchange.

        Section 25.  Notice of Certain Events.
                     ------------------------

        (a) In case the Company shall at any time after the earlier of the
Distribution Date or the Stock Acquisition Date propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Stock or to make
any other distribution to the holders of its Preferred Stock (other than a
regular quarterly cash dividend), (ii) to offer to the holders of its Preferred
Stock rights or warrants to subscribe for or to purchase any additional shares
of Preferred Stock or shares of stock of any class or any other securities,
rights or options, (iii) to effect any reclassification of its Preferred Stock
(other than a reclassification involving only the subdivision or combination of
outstanding Preferred Stock), (iv) to effect the liquidation, dissolution or
winding up of the Company, or (v) to pay any dividend on the Common Stock
payable in Common Stock or to effect a subdivision, combination or consolidation
of the Common Stock (by reclassification or otherwise than by payment of
dividends in Common Stock), then, in each such case, the Company shall give to
each holder of a Right Certificate, in accordance with Section 26 hereof, a
notice of such proposed action, which shall specify the record date for the
purposes of such dividend or distribution or offering of rights or warrants, or
the date on which such liquidation, dissolution, winding up, reclassification,
subdivision, combination or consolidation is to take place and the date of
participation therein by the holders of the Common Stock and/or Preferred Stock,
if any such date is to be fixed, and such notice shall be so given in the case
of any action covered by clause (i) or (ii) above at least 10 days prior to the
record date for determining holders of the Preferred Stock for purposes of such
action, and in the case of any such other action, at least 10 days prior to the
date of the taking of such proposed action or the date of participation therein
by the holders of the Common Stock and/or Preferred Stock, whichever shall be
the earlier.

                                      35
<PAGE>

        (b) In case any event described in Section 11(a)(ii) or Section 13 shall
occur then the Company shall as soon as practicable thereafter give to each
holder of a Right Certificate (or if occurring prior to the Distribution Date,
the holders of the Common Stock) in accordance with Section 26 hereof, a notice
of the occurrence of such event, which notice shall describe such event and the
consequences of such event to holders of Rights under Section 11(a)(ii) and
Section 13 hereof.

        Section 26.  Notices.  Notices or demands authorized by this Agreement
                     -------
to be given or made by the Rights Agent or by the holder of any Right
Certificate to or on the Company shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

                  DuPont Photomasks, Inc.
                  131 Old Settlers Blvd.
                  Round Rock, TX 78664
                  Attention: Mark Syrnick

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Right Certificate to or on the Rights Agent shall be sufficiently given or made
if sent by first-class mail, postage prepaid, addressed (until another address
is filed in writing with the Company) as follows:

                  EquiServe Trust Company, N.A.
                  525 Washington Blvd.
                  Jersey City, NJ 07310
                  Attention:  Francis E. Wolf, Jr.

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Right Certificate shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry
books of the Company.

        Section 27.  Supplements and Amendments.  Except as provided in the
                     --------------------------
penultimate sentence of this Section 27, for so long as the Rights are then
redeemable, the Company may in its sole and absolute discretion, and the Rights
Agent shall if the Company so directs, supplement or amend any provision of this
Agreement in any respect without the approval of any holders of the Rights.  At
any time when the Rights are no longer redeemable, except as provided in the
penultimate sentence of this Section 27, the Company may, and the Rights Agent
shall, if the Company so directs, supplement or amend this Agreement without the
approval of any holders of Rights, provided that no such supplement or amendment
                                   --------
may (a) adversely affect the interests of the holders of Rights as such (other
than an Acquiring Person or an Affiliate or Associate of an Acquiring Person),
(b) cause this Agreement again to become amendable other than in accordance with
this sentence or (c) cause the Rights again to become redeemable.
Notwithstanding anything contained in this Agreement to the contrary, no
supplement or amendment shall be made which changes the Redemption Price.  Upon
the

                                      36
<PAGE>

delivery of a certificate from an appropriate officer of the Company which
states that the supplement or amendment is in compliance with the terms of this
Section 27, the Rights Agent shall execute such supplement or amendment,
provided that any supplement or amendment that does not amend Sections 18, 19,
--------
20 or 21 hereof in a manner adverse to the Rights Agent shall become effective
immediately upon execution by the Company, whether or not also executed by the
Rights Agent.

        Section 28.  Successors.  All the covenants and provisions of this
                     ----------
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

        Section 29.  Benefits of this Agreement.  Nothing in this Agreement
                     --------------------------
shall be construed to give to any Person other than the Company, the Rights
Agent and the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Stock) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of
the Right Certificates (and, prior to the Distribution Date, the Common Stock).

        Section 30.  Determinations and Actions by the Board of Directors.  The
                     ----------------------------------------------------
Board of Directors of the Company shall have the exclusive power and authority
to administer this Agreement and to exercise the rights and powers specifically
granted to the Board of Directors of the Company or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this
Agreement and (ii) make all determinations deemed necessary or advisable for the
administration of this Agreement (including, without limitation, a determination
to redeem or not redeem the Rights or to amend or not amend this Agreement).
All such actions, calculations, interpretations and determinations that are done
or made by the Board of Directors of the Company in good faith shall be final,
conclusive and binding on the Company, the Rights Agent, the holders of the
Rights, as such, and all other parties.

        Section 31.  Severability. If any term, provision, covenant or
                     ------------
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

        Section 32.  Governing Law.  This Agreement and each Right Certificate
                     -------------
issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State.

        Section 33.  Counterparts.  This Agreement may be executed in any number
                     ------------
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

                                      37
<PAGE>

        Section 34.  Descriptive Headings.  Descriptive headings of the several
                     --------------------
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, all as of the day and year first above written.

                       DUPONT PHOTOMASKS, INC.

                       By:   /s/ Mark Syrnick
                             ------------------------------------------------
                       Name:  Mark Syrnick
                              -----------------------------------------------
                       Title: Deputy General Counsel and Assistant Secretary
                              -----------------------------------------------

                       EquiServe Trust Company, N.A.,
                       as Rights Agent

                       By:   /s/ Francis  E. Wolf, Jr.
                             --------------------------------------------
                       Name:  Francis E. Wolf, Jr.
                              -------------------------------------------
                       Title: Managing Director
                              -------------------------------------------

                                      38
<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                    FORM OF
                          CERTIFICATE OF DESIGNATION

                                      of

                 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                      of

                            DUPONT PHOTOMASKS, INC.

            Pursuant to Section 151 of the General Corporation Law
                           of the State of Delaware

        DuPont Photomasks, Inc., a corporation organized and existing under the
General Corporation Law of the State of Delaware (the "Corporation"), in
accordance with the provisions of Section 103 thereof, DOES HEREBY CERTIFY:

        That pursuant to the authority vested in the Board of Directors in
accordance with the provisions of the Restated Certificate of Incorporation of
the said Corporation, the said Board of Directors on January 30, 2001 adopted
the following resolution creating a series of  100,000 shares of Preferred Stock
designated as "Series A Junior Participating Preferred Stock":

             RESOLVED, that pursuant to the authority vested in the Board of
        Directors of this Corporation in accordance with the provisions of the
        Restated Certificate of Incorporation, a series of Preferred Stock, par
        value $.01 per share, of the Corporation be and hereby is created, and
        that the designation and number of shares thereof and the voting and
        other powers, preferences and relative, participating, optional or other
        rights of the shares of such series and the qualifications, limitations
        and restrictions thereof are as follows:

             Series A Junior Participating Preferred Stock

        1.   Designation and Amount.  There shall be a series of Preferred Stock
that shall be designated as "Series A Junior Participating Preferred Stock," and
the number of shares constituting such series shall be 100,000.  Such number of
shares may be increased or decreased by resolution of the Board of Directors;
provided, however, that no decrease shall reduce the number of shares of Series
A Junior Participating  Preferred Stock to less than the number of shares then
issued and outstanding plus the number of shares issuable upon exercise of
outstanding rights, options or warrants or upon conversion of outstanding
securities issued by the Corporation.

                                      A-1
<PAGE>

        2.   Dividends and Distribution.

             (A)    Subject to the prior and superior rights of the holders of
any shares of any class or series of stock of the Corporation ranking prior and
superior to the shares of Series A Junior Participating Preferred Stock with
respect to dividends, the holders of shares of Series A Junior Participating
Preferred Stock, in preference to the holders of shares of any class or series
of stock of the Corporation ranking junior to the Series A Junior Participating
Preferred Stock in respect thereof, shall be entitled to receive, when, as and
if declared by the Board of Directors out of funds legally available for the
purpose, quarterly dividends payable in cash on the 1st day of March, June,
September and December, in each year (each such date being referred to herein as
a "Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series A Junior Participating Preferred Stock, in an amount per share (rounded
to the nearest cent) equal to the greater of (a) $1.00 or (b) the Adjustment
Number (as defined below) times the aggregate per share amount of all cash
dividends, and the Adjustment Number times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions other than a
dividend payable in shares of Common Stock or a subdivision of the outstanding
shares of Common Stock (by reclassification or otherwise), declared on the
Common Stock, par value $.01 per share, of the Corporation (the "Common Stock")
since the immediately preceding Quarterly Dividend Payment Date, or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Series A Junior Participating Preferred
Stock. The "Adjustment Number" shall initially be 1000. In the event the
Corporation shall at any time after January 30, 2001 (i) declare and pay any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock or (iii) combine the outstanding Common Stock into a
smaller number of shares, then in each such case the Adjustment Number in effect
immediately prior to such event shall be adjusted by multiplying such Adjustment
Number by a fraction the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

            (B)     The Corporation shall declare a dividend or distribution on
the Series A Junior Participating Preferred Stock as provided in paragraph (A)
above immediately after it declares a dividend or distribution on the Common
Stock (other than a dividend payable in shares of Common Stock).

             (C)    Dividends shall begin to accrue and be cumulative on
outstanding shares of Series A Junior Participating Preferred Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares
of Series A Junior Participating Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment
Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such shares, or unless the date of issue is a Quarterly Dividend
Payment Date or is a date after the record date for the determination of holders
of shares of Series A Junior Participating Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either of
which events such dividends shall begin to

                                      A-2
<PAGE>

accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but
unpaid dividends shall not bear interest. Dividends paid on the shares of Series
A Junior Participating Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series A Junior Participating Preferred Stock entitled
to receive payment of a dividend or distribution declared thereon, which record
date shall be no more than 60 days prior to the date fixed for the payment
thereof.

             3.     Voting Rights.  The holders of shares of Series A Junior
Participating Preferred Stock shall have the following voting rights:

                    (A)  Each share of Series A Junior Participating Preferred
Stock shall entitle the holder thereof to a number of votes equal to the
Adjustment Number on all matters submitted to a vote of the stockholders of the
Corporation.

                    (B)  Except as required by law, by Section 3(C) and by
Section 10 hereof, holders of Series A Junior Participating Preferred Stock
shall have no special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock as
set forth herein) for taking any corporate action.

                    (C)  If, at the time of any annual meeting of stockholders
for the election of directors, the equivalent of six quarterly dividends
(whether or not consecutive) payable on any share or shares of Series A Junior
Participating Preferred Stock are in default, the number of directors
constituting the Board of Directors of the Corporation shall be increased by
two. In addition to voting together with the holders of Common Stock for the
election of other directors of the Corporation, the holders of record of the
Series A Junior Participating Preferred Stock, voting separately as a class to
the exclusion of the holders of Common Stock, shall be entitled at said meeting
of stockholders (and at each subsequent annual meeting of stockholders), unless
all dividends in arrears on the Series A Junior Participating Preferred Stock
have been paid or declared and set apart for payment prior thereto, to vote for
the election of two directors of the Corporation, the holders of any Series A
Junior Participating Preferred Stock being entitled to cast a number of votes
per share of Series A Junior Participating Preferred Stock as is specified in
paragraph (A) of this Section 3. Until the default in payments of all dividends
which permitted the election of said directors shall cease to exist, any
director who shall have been so elected pursuant to the provisions of this
Section 3(C) may be removed at any time, without cause, only by the affirmative
vote of the holders of the shares of Series A Junior Participating Preferred
Stock at the time entitled to cast a majority of the votes entitled to be cast
for the election of any such director at a special meeting of such holders
called for that purpose, and any vacancy thereby created may be filled by the
vote of such holders. If and when such default shall cease to exist, the holders
of the Series A Junior Participating Preferred Stock shall be divested of the
foregoing special voting rights, subject to revesting in the event of each and
every subsequent like default in payments of dividends. Upon the termination of
the foregoing special voting rights, the terms of office of all persons who may
have been elected directors pursuant to said special voting

                                      A-3
<PAGE>

rights shall forthwith terminate, and the number of directors constituting the
Board of Directors shall be reduced by two. The voting rights granted by this
Section 3(C) shall be in addition to any other voting rights granted to the
holders of the Series A Junior Participating Preferred Stock in this Section 3.

             4.     Certain Restrictions.

                    (A)  Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Participating Preferred Stock as
provided in Section 2 are in arrears, thereafter and until all accrued and
unpaid dividends and distributions, whether or not declared, on shares of Series
A Junior Participating Preferred Stock outstanding shall have been paid in full,
the Corporation shall not:

                         (i)    declare or pay dividends on, make any other
distributions on, or redeem or purchase or otherwise acquire for consideration
any shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Junior Participating Preferred Stock;

                         (ii)   declare or pay dividends on or make any other
distributions on any shares of stock ranking on a parity (either as to dividends
or upon liquidation, dissolution or winding up) with the Series A Junior
Participating Preferred Stock, except dividends paid ratably on the Series A
Junior Participating Preferred Stock and all such parity stock on which
dividends are payable or in arrears in proportion to the total amounts to which
the holders of all such shares are then entitled; or

                         (iii)  purchase or otherwise acquire for consideration
any shares of Series A Junior Participating Preferred Stock, or any shares of
stock ranking on a parity with the Series A Junior Participating Preferred
Stock, except in accordance with a purchase offer made in writing or by
publication (as determined by the Board of Directors) to all holders of Series A
Junior Participating Preferred Stock, or to such holders and holders of any such
shares ranking on a parity therewith, upon such terms as the Board of Directors,
after consideration of the respective annual dividend rates and other relative
rights and preferences of the respective series and classes, shall determine in
good faith will result in fair and equitable treatment among the respective
series or classes.

                    (B)  The Corporation shall not permit any subsidiary of the
Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under paragraph (A) of
this Section 4, purchase or otherwise acquire such shares at such time and in
such manner.

             5.     Reacquired Shares.  Any shares of Series A Junior
Participating Preferred Stock purchased or otherwise acquired by the Corporation
in any manner whatsoever shall be retired promptly after the acquisition
thereof. All such shares shall upon their retirement become authorized but
unissued shares of Preferred Stock and may be reissued as part of a

                                      A-4
<PAGE>

new series of Preferred Stock to be created by resolution or resolutions of the
Board of Directors, subject to any conditions and restrictions on issuance set
forth herein.

             6.     Liquidation, Dissolution or Winding Up. (A) Upon any
liquidation, dissolution or winding up of the Corporation, voluntary or
otherwise, no distribution shall be made to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Junior Participating Preferred Stock unless, prior
thereto, the holders of shares of Series A Junior Participating Preferred Stock
shall have received an amount per share (the "Series A Liquidation Preference")
equal to the greater of (i) $1.00 plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment, or (ii) the Adjustment Number times the per share amount of all
cash and other property to be distributed in respect of the Common Stock upon
such liquidation, dissolution or winding up of the Corporation.

                    (B)  In the event, however, that there are not sufficient
assets available to permit payment in full of the Series A Liquidation
Preference and the liquidation preferences of all other classes and series of
stock of the Corporation, if any, that rank on a parity with the Series A Junior
Participating Preferred Stock in respect thereof, then the assets available for
such distribution shall be distributed ratably to the holders of the Series A
Junior Participating Preferred Stock and the holders of such parity shares in
proportion to their respective liquidation preferences.

                    (C)  Neither the merger or consolidation of the Corporation
into or with another corporation nor the merger or consolidation of any other
corporation into or with the Corporation shall be deemed to be a liquidation,
dissolution or winding up of the Corporation within the meaning of this Section
6.

             7.     Consolidation, Merger, Etc. In case the Corporation shall
enter into any consolidation, merger, combination or other transaction in which
the outstanding shares of Common Stock are exchanged for or changed into other
stock or securities, cash and/or any other property, then in any such case each
share of Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share equal to the Adjustment
Number times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each
share of Common Stock is changed or exchanged.

             8.     No Redemption. Shares of Series A Junior Participating
Preferred Stock shall not be subject to redemption by the Corporation.

             9.     Ranking. The Series A Junior Participating Preferred Stock
shall rank junior to all other series of the Preferred Stock as to the payment
of dividends and as to the distribution of assets upon liquidation, dissolution
or winding up, unless the terms of any such series shall provide otherwise, and
shall rank senior to the Common Stock as to such matters.

                                      A-5
<PAGE>

             10.    Amendment.  At any time that any shares of Series A Junior
Participating Preferred Stock are outstanding, the Certificate of Incorporation
of the Corporation shall not be amended in any manner which would materially
alter or change the powers, preferences or special rights of the Series A Junior
Participating Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of two-thirds of the outstanding shares of
Series A Junior Participating Preferred Stock, voting separately as a class.

             11.    Fractional Shares. Series A Junior Participating Preferred
Stock may be issued in fractions of a share that shall entitle the holder, in
proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
other rights of holders of Series A Junior Participating Preferred Stock.

        IN WITNESS WHEREOF, the undersigned has executed this Certificate this
___ day of  ____________, 2001.

                                      DUPONT PHOTOMASKS, INC.

                                      By:___________________
                                        Name:
                                        Title:

                                      A-6
<PAGE>

                                                                       Exhibit B
                                                                       ---------

                           Form of Right Certificate

Certificate No. R-______

        NOT EXERCISABLE AFTER JANUARY 30, 2011 OR EARLIER IF REDEMPTION OR
        EXCHANGE OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT
        AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER
        CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS
        OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING
        PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES
        THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

                               RIGHT CERTIFICATE

                            DUPONT PHOTOMASKS, INC.

        This certifies that ____________________________ or registered assigns,
is the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of
the Rights Agreement, dated as of January 30, 2001, as the same may be amended
from time to time (the "Rights Agreement"), between DuPont Photomasks, Inc., a
Delaware corporation (the "Company"), and EquiServe Trust Company, N.A., as
Rights Agent (the "Rights Agent"), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 P.M., New York City time, on January 30, 2011 at the office or
agency of the Rights Agent designated for such purpose, or of its successor as
Rights Agent, one one-thousandth of a fully paid non-assessable share of Series
A Junior Participating Preferred Stock, par value $.01 per share (the "Preferred
Stock"), of the Company at a purchase price of $400.00 per one one-thousandth of
a share of Preferred Stock (the "Purchase Price"), upon presentation and
surrender of this Right Certificate with the Form of Election to Purchase duly
executed.  The number of Rights evidenced by this Rights Certificate (and the
number of one one-thousandths of a share of Preferred Stock which may be
purchased upon exercise hereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of ________________, 200_,
based on the Preferred Stock as constituted at such date.  As provided in the
Rights Agreement, the Purchase Price, the number of one one-thousandths of a
share of Preferred Stock (or other securities or property) which may be
purchased upon the

                                      B-1
<PAGE>

exercise of the Rights and the number of Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the happening of
certain events.

        This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates.  Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned office or agency of the Rights Agent.  The
Company will mail to the holder of this Right Certificate a copy of the Rights
Agreement without charge after receipt of a written request therefor.

        This Right Certificate, with or without other Right Certificates, upon
surrender at the office or agency of the Rights Agent designated for such
purpose, may be exchanged for another Right Certificate or Right Certificates of
like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of shares of Preferred Stock as the Rights evidenced by the
Right Certificate or Right Certificates surrendered shall have entitled such
holder to purchase.  If this Right Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not exercised.

        Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Certificate (i) may be redeemed by the Company at a redemption price of
$.01 per Right or (ii) may be exchanged in whole or in part for shares of the
Company's Common Stock, par value $.01 per share, or shares of Preferred Stock.

        No fractional shares of Preferred Stock or Common Stock will be issued
upon the exercise or exchange of any Right or Rights evidenced hereby (other
than fractions of Preferred Stock which are integral multiples of one one-
thousandth of a share of Preferred Stock, which may, at the election of the
Company, be evidenced by depository receipts), but in lieu thereof a cash
payment will be made, as provided in the Rights Agreement.

        No holder of this Right Certificate, as such, shall be entitled to vote
or receive dividends or be deemed for any purpose the holder of the Preferred
Stock or of any other securities of the Company which may at any time be
issuable on the exercise or exchange hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as
such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement) or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced

                                      B-2
<PAGE>

by this Right Certificate shall have been exercised or exchanged as provided in
the Rights Agreement.

        This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

        WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal.  Dated as of  ________________.

                                      DUPONT PHOTOMASKS, INC.

                                      By:______________

______________

ATTEST:

____________________________________
[Title]

Countersigned:

______________________, as Rights Agent

By__________________________________
   [Title]

                                      B-3
<PAGE>

                   Form of Reverse Side of Right Certificate

                              FORM OF ASSIGNMENT
                              ------------------

               (To be executed by the registered holder if such
               holder desires to transfer the Right Certificate)

        FOR VALUE RECEIVED __________________________ hereby sells, assigns and
transfers unto ______________________________________________________
_________________________________________________________________________
                 (Please print name and address of transferee)

_______ Rights represented by this Right Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint
___________________________ Attorney, to transfer said Rights on the books of
the within-named Company, with full power of substitution.

Dated:  ____________________________

                                         ____________________________________
                                               Signature

Signature Guaranteed:

        Signatures must be guaranteed by a bank, trust company, broker, dealer
or other eligible institution participating in a recognized signature guarantee
medallion program.

 ..............................................................
                               (To be completed)

        The undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by, were not acquired by the undersigned
from, and are not being assigned to an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement).

                                 ____________________________________
                                       Signature

                                      B-4
<PAGE>

             Form of Reverse Side of Right Certificate - continued

                         FORM OF ELECTION TO PURCHASE
                         ----------------------------

                 (To be executed if holder desires to exercise
                 Rights represented by the Rights Certificate)

To DUPONT PHOTOMASKS, INC.:

        The undersigned hereby irrevocably elects to exercise ________ Rights
represented by this Right Certificate to purchase the shares of Preferred Stock
(or other securities or property) issuable upon the exercise of such Rights and
requests that certificates for such shares of Preferred Stock (or such other
securities) be issued in the name of:

________________________________________________________________________________
                        (Please print name and address)

________________________________________________________________________________

If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

Please insert social security
or other identifying number

________________________________________________________________________________
                        (Please print name and address)

________________________________________________________________________________

Dated:________________________

                                        ____________________________________

                                             Signature

       (Signature must conform to holder specified on Right Certificate)

Signature Guaranteed:

        Signature must be guaranteed by a bank, trust company, broker, dealer or
other eligible institution participating in a recognized signature guarantee
medallion program.

                                      B-5
<PAGE>

             Form of Reverse Side of Right Certificate - continued

________________________________________________________________________________
                               (To be completed)

        The undersigned certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by, and were not acquired by the
undersigned from, an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement).

                                            ____________________________________

                                                  Signature

________________________________________________________________________________

                                    NOTICE
                                    ------

        The signature in the Form of Assignment or Form of Election to Purchase,
as the case may be, must conform to the name as written upon the face of this
Right Certificate in every particular, without alteration or enlargement or any
change whatsoever.

        In the event the certification set forth above in the Form of Assignment
or the Form of Election to Purchase, as the case may be, is not completed, such
Assignment or Election to Purchase will not be honored.

                                      B-6
<PAGE>

                                                                       Exhibit C
                                                                       ---------

        UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT,
        RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN
        ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN
        TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE
        TRANSFERABLE.

                         SUMMARY OF RIGHTS TO PURCHASE
                         SHARES OF PREFERRED STOCK OF
                            DUPONT PHOTOMASKS, INC.

        On January 30, 2001, the Board of Directors of DuPont Photomasks, Inc.
(the "Company") declared a dividend of one preferred share purchase right (a
"Right") for each outstanding share of common stock, par value $.01 per share,
of the Company (the "Common Stock").  The dividend is payable on March 1, 2001
to the stockholders of record as of the close of business on February 20, 2001
(the "Record Date").  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, of the Company (the "Preferred
Stock") at a price of $400.00 per one one-thousandth of a share of Preferred
Stock (the "Purchase Price"), subject to adjustment.  The description and terms
of the Rights are set forth in a Rights Agreement dated as of January 30, 2001,
as the same may be amended from time to time (the "Rights Agreement"), between
the Company and EquiServe Trust Company, N.A., as Rights Agent (the "Rights
Agent").

        The Rights are not exercisable until the "Distribution Date."  Under the
Rights Agreement, a "Distribution Date" generally occurs upon the earlier of (i)
10 days following a public announcement that a person or group of affiliated or
associated persons has become an "Acquiring Person" or (ii) 10 business days (or
such later date as may be determined by action of the Board of Directors prior
to such time as any person or group of affiliated or associated persons becomes
an Acquiring Person) following the commencement of, or announcement of an
intention to make, a tender offer or exchange offer the consummation of which
would result in the beneficial ownership by a person or group of 15% or more of
the outstanding shares of Common Stock.  Except in certain situations, a person
or group of affiliated or associated persons becomes an "Acquiring Person" upon
acquiring beneficial ownership of 15% or more of the outstanding shares of
Common Stock.  E.I. Du Pont de Nemours & Co. ("Du Pont") will not be deemed to
be an Acquiring Person unless and until (i) Du Pont, or any Du Pont affiliate or
associate, acquires, or announces its intention to acquire more than 33% of the
total number of shares of outstanding Common Stock (on an as converted basis),
assuming full conversion of all securities convertible into Common Stock, or
(ii) there is a change in control of Du Pont and Du Pont then beneficially owns
or tenders

                                      C-1
<PAGE>

for 15% or more of the Company's Common Stock. Until the Distribution Date, the
Rights will be evidenced, with respect to any of the Common Stock certificates
outstanding as of the Record Date, by such Common Stock certificates together
with a copy of this Summary of Rights.

        The Rights Agreement provides that, until the Distribution Date (or
earlier expiration of the Rights), the Rights will be transferred with and only
with the Common Stock.  Until the Distribution Date (or earlier expiration of
the Rights), new Common Stock certificates issued after the Record Date upon
transfer or new issuances of Common Stock will contain a notation incorporating
the Rights Agreement by reference.  Until the Distribution Date (or earlier
expiration of the Rights), the surrender for transfer of any certificates for
shares of Common Stock outstanding as of the Record Date, even without such
notation or a copy of this Summary of Rights, will also constitute the transfer
of the Rights associated with the shares of Common Stock represented by such
certificate.  As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("Right Certificates") will be mailed to
holders of record of the Common Stock as of the close of business on the
Distribution Date and such separate Right Certificates alone will evidence the
Rights.

        The Rights are not exercisable until the Distribution Date.  The Rights
will expire on January 30, 2011 (the "Final Expiration Date"), unless the Final
Expiration Date is advanced or extended or unless the Rights are earlier
redeemed or exchanged by the Company, in each case as described below.

        The Purchase Price payable, and the number of shares of Preferred Stock
or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event of
a stock dividend on, or a subdivision, combination or reclassification of, the
Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of
certain rights or warrants to subscribe for or purchase Preferred Stock at a
price, or securities convertible into Preferred Stock with a conversion price,
less than the then-current market price of the Preferred Stock or (iii) upon the
distribution to holders of the Preferred Stock of evidences of indebtedness or
assets (excluding regular periodic cash dividends or dividends payable in
Preferred Stock) or of subscription rights or warrants (other than those
referred to above).

        The number of outstanding Rights is subject to adjustment in the event
of a stock dividend on the Common Stock payable in shares of Common Stock or
subdivisions, consolidations or combinations of the Common Stock occurring, in
any such case, prior to the Distribution Date.

        Shares of Preferred Stock purchasable upon exercise of the Rights will
not be redeemable.  Each share of Preferred Stock will be entitled, when, as and
if declared, to a minimum preferential quarterly dividend payment of the greater
of (a) $1.00 per share, and (b) an amount equal to 1000 times the dividend
declared per share of Common Stock.  In the event

                                      C-2
<PAGE>

of liquidation, dissolution or winding up of the Company, the holders of the
Preferred Stock will be entitled to a minimum preferential payment of the
greater of (a) $1.00 per share (plus any accrued but unpaid dividends), and (b)
an amount equal to 1000 times the payment made per share of Common Stock. Each
share of Preferred Stock will have 1000 votes, voting together with the Common
Stock. Finally, in the event of any merger, consolidation or other transaction
in which outstanding shares of Common Stock are converted or exchanged, each
share of Preferred Stock will be entitled to receive 1000 times the amount
received per share of Common Stock. These rights are protected by customary
antidilution provisions.

          Because of the nature of the Preferred Stock's dividend, liquidation
and voting rights, the value of the one one-thousandth interest in a share of
Preferred Stock purchasable upon exercise of each Right should approximate the
value of one share of Common Stock.

          In the event that any person or group of affiliated or associated
persons becomes an Acquiring Person, each holder of a Right, other than Rights
beneficially owned by the Acquiring Person (which will thereupon become void),
will thereafter have the right to receive upon exercise of a Right that number
of shares of Common Stock having a market value of two times the exercise price
of the Right.

          In the event that, after a person or group has become an Acquiring
Person, the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are sold,
proper provisions will be made so that each holder of a Right (other than Rights
beneficially owned by an Acquiring Person which will have become void) will
thereafter have the right to receive upon the exercise of a Right that number of
shares of common stock of the person with whom the Company has engaged in the
foregoing transaction (or its parent) that at the time of such transaction have
a market value of two times the exercise price of the Right.

          At any time after any person or group becomes an Acquiring Person and
prior to the earlier of one of the events described in the previous paragraph or
the acquisition by such Acquiring Person of 50% or more of the outstanding
shares of Common Stock, the Board of Directors of the Company may exchange the
Rights (other than Rights owned by such Acquiring Person which will have become
void), in whole or in part, for shares of Common Stock or Preferred Stock (or a
series of the Company's preferred stock having equivalent rights, preferences
and privileges), at an exchange ratio of one share of Common Stock, or a
fractional share of Preferred Stock (or other preferred stock) equivalent in
value thereto, per Right.

          With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price.  No fractional shares of Preferred Stock or Common Stock
will be issued (other than fractions of Preferred Stock which are integral
multiples of one one-thousandth of a share of Preferred Stock, which may, at the
election of the Company, be evidenced by depositary receipts), and

                                      C-3
<PAGE>

in lieu thereof an adjustment in cash will be made based on the current market
price of the Preferred Stock or the Common Stock.

          At any time prior to the time an Acquiring Person becomes such, the
Board of Directors of the Company may redeem the Rights in whole, but not in
part, at a price of $.01 per Right (the "Redemption Price") payable, at the
option of the Company, in cash, shares of Common Stock or such other form of
consideration as the Board of Directors of the Company shall determine.  The
redemption of the Rights may be made effective at such time, on such basis and
with such conditions as the Board of Directors in its sole discretion may
establish.  Immediately upon any redemption of the Rights, the right to exercise
the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price.

          For so long as the Rights are then redeemable, the Company may, except
with respect to the Redemption Price, amend the Rights Agreement in any manner.
After the Rights are no longer redeemable, the Company may, except with respect
to the Redemption Price, amend the Rights Agreement in any manner that does not
adversely affect the interests of holders of the Rights.

          Until a Right is exercised or exchanged, 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.

          A copy of the Rights Agreement has been filed with the Securities and
Exchange Commission as an Exhibit to a Registration Statement on Form 8-A dated
January 31, 2001.  A copy of the Rights Agreement is available free of charge
from the Company.  This summary description of the Rights does not purport to be
complete and is qualified in its entirety by reference to the Rights Agreement,
as the same may be amended from time to time, which is hereby incorporated
herein by reference.

                                      C-4VIACOM INC.,

                            VIACOM INTERNATIONAL INC.

                                       AND

                                 CITIBANK, N.A.,

                                     Trustee

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

                          FIFTH SUPPLEMENTAL INDENTURE

                          Dated as of January 17, 2001

                      To Indenture dated as of May 15, 1995
                                      among
                                  VIACOM INC.,
                            VIACOM INTERNATIONAL INC.
                                       and
                                 CITIBANK, N.A.,
                                     Trustee

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

                             Senior Debt Securities

<PAGE>
     FIFTH SUPPLEMENTAL INDENTURE, dated as of January 17, 2001, among VIACOM
INC., a Delaware corporation (the "Company"), VIACOM INTERNATIONAL INC., a
Delaware corporation (the "Guarantor") and CITIBANK, N.A., a national banking
association, as successor in interest to State Street Bank and Trust Company and
The First National Bank of Boston, trustee (the "Trustee") to the Indenture,
dated as of May 15, 1995, among the Company, the Guarantor and the trustee party
thereto, as supplemented by the First Supplemental Indenture, dated as of May
24, 1995, among the Company, the Guarantor and the trustee party thereto, as
supplemented and amended by the Second Supplemental Indenture and Amendment No.
1, dated as of December 15, 1995, among the Company, the Guarantor and the
trustee party thereto, as supplemented by the Third Supplemental Indenture,
dated as of July 22, 1996, among the Company, the Guarantor and the trustee
party thereto and as further supplemented by the Fourth Supplemental Indenture
(the "Fourth Supplemental Indenture"), dated as of August 1, 2000, among the
Company, the Guarantor and the Trustee (as so amended, the "Indenture").

                             RECITALS OF THE COMPANY

     WHEREAS, Section 901(1) of the Indenture permits supplements thereto
without the consent of Holders of Securities to add to the covenants of the
Company for the benefit of all or any series of Securities;

     WHEREAS, Section 901(4) of the Indenture permits supplements thereto
without the consent of Holders of Securities to change any provisions of the
Indenture with respect to a series of Securities, where there are no Securities
Outstanding which are entitled to the benefit of such provision;

     WHEREAS, Section 901(8) of the Indenture permits supplements thereto
without the consent of Holders of Securities to make provisions with respect to
matters or questions arising under the Indenture, provided that the interests of
the Holders of Securities of any series or any related coupons are not adversely
affected thereby in any material respect;

     WHEREAS, as contemplated by Section 301 of the Indenture, the Company
intends to issue and the Guarantor intends to guarantee from time to time a new
series of Securities, consisting of the 6.40% Senior Notes due 2006 (the "2006
Senior Notes") under the Indenture;

     WHEREAS, as contemplated by Section 901(8) of the Indenture, the Company is
re-opening the two series of Securities established pursuant to the Fourth
Supplemental Indenture (such re-opened Securities to be referred to herein as
the 7.70% Senior Notes due 2010 (the "2010 Senior Notes") and the 7.875% Senior
Debentures due 2030 (the "Senior Debentures")) for further issuances of
additional Securities of such series;

     WHEREAS, as contemplated by Section 301 of the Indenture, the Company
wishes to add to the covenants of the Company for the sole benefit of the
Holders of the 2006 Senior Notes and to make certain changes to other provisions
of the Indenture,; and

     WHEREAS, as contemplated by Section 901(8) of the Indenture, the Company
wishes to amend the Fourth Supplemental Indenture to supplement the terms of the
2010 Senior Notes and the Senior Debentures by including provisions allowing for
the issuance of the 2010

<PAGE>
Senior Notes and the Senior Debentures in reliance on Rule 144A and Regulation S
and for their subsequent exchange for Exchange Notes or Exchange Debentures, as
applicable.

          NOW, THEREFORE, THIS FIFTH SUPPLEMENTAL INDENTURE WITNESSETH:

     For consideration, the adequacy and sufficiency of which are hereby
acknowledged by the parties hereto, each party agrees as follows, for the
benefit of the other party and for the equal and proportionate benefit of all
Holders of the 2006 Senior Notes, the 2010 Senior Notes and the Senior
Debentures, as follows:

SECTION 1. For the purpose of this Fifth Supplemental Indenture, all terms used
herein, unless otherwise defined, shall have the meaning assigned to them in the
Indenture, as amended hereby.

SECTION 2. The Company shall issue from time to time, and the Guarantor shall
guarantee from time to time, (a) 2006 Senior Notes in an aggregate principal
amount of $400,000,000, (b) 2010 Senior Notes in an aggregate principal amount
of $500,000,000 and (c) Senior Debentures in an aggregate principal amount of
$750,000,000. The form of the 2006 Senior Notes is set forth in Exhibit A
hereto. The forms of the 2010 Senior Notes and the Senior Debentures are set
forth in Exhibit B and Exhibit C hereto, respectively, which forms hereby
replace the forms of the 2010 Senior Notes and the Senior Debentures set forth
in Exhibit A and Exhibit B, respectively, to the Fourth Supplemental Indenture.
The 2006 Senior Notes, 2010 Senior Notes and Senior Debentures shall include the
legends set forth on the face of Exhibit A, Exhibit B and Exhibit C hereto,
respectively (substantially in the form so set forth), so long as such
Securities are Restricted Securities.

SECTION 3. The 2006 Senior Notes, 2010 Senior Notes and Senior Debentures
offered and sold in reliance on Rule 144A shall be issued initially in the form
of one or more permanent global 2006 Senior Notes, permanent global 2010 Senior
Notes or permanent global Senior Debentures in registered form, substantially in
the form set forth in Exhibit A, Exhibit B and Exhibit C hereto, respectively,
(the "U.S. Global 2006 Senior Notes", the "U.S. Global 2010 Senior Notes" and
the "U.S. Global Senior Debentures," and, collectively, the "U.S. Global
Securities"), registered in the name of the nominee of the Depositary, deposited
with the Trustee, as custodian for the Depositary, duly executed by the Company
and authenticated by the Trustee as provided in Section 303 of the Indenture.
The aggregate principal amount of the U.S. Global Securities may from time to
time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary or its nominee, in accordance with the
instructions given by the Holder thereof, as hereinafter provided.

     The 2006 Senior Notes, 2010 Senior Notes and Senior Debentures offered and
sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of one or more permanent global 2006 Senior Notes,
permanent global 2010 Senior Notes or permanent global Senior Debentures, as the
case may be, in registered form, substantially in the forms set forth in Exhibit
A, Exhibit B and Exhibit C hereto, respectively, (the "Offshore Global 2006
Senior Notes", "Offshore Global 2010 Senior Notes" and the "Offshore Global
Senior

                                        2
<PAGE>

Debentures," collectively, the "Offshore Global Securities"), registered in the
name of the nominee of the Depositary, deposited with the Trustee, as custodian
for the Depositary, duly executed by the Company and authenticated by the
Trustee as provided in Section 303 of the Indenture. The aggregate principal
amount of the Offshore Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
the Depositary or its nominee, as hereinafter provided.

     The U.S. Global Securities and the Offshore Global Securities are sometimes
referred to herein as the "Global Securities."

SECTION 4. For the sole benefit of the Holders of the 2006 Senior Notes, Section
101 of the Indenture shall be amended by deleting the definitions of "Authorized
Newspaper," "Corporate Trust Office," "Principal Property," "Sale and Leaseback
Transaction" and "United States Person" and replacing such definitions with the
following definitions:

          "Authorized Newspaper" means a newspaper, in the English language or
     in an official language of the country of publication, customarily
     published on each Business Day, whether or not published on Saturdays,
     Sundays or holidays, and of general circulation in the place in connection
     with which the term is used or in the financial community of such place;
     provided, however, that so long as a series of Securities is listed on the
     Luxembourg Stock Exchange, Authorized Newspaper solely with respect to such
     series of Securities shall mean a leading newspaper having general
     circulation in Luxembourg (which is expected to be the Luxembourg Wort) or,
     if publication in such newspaper is not practicable, a leading English
     language daily newspaper with general circulation in Europe, that is
     published each Business Day in morning editions, whether or not published
     in Saturday, Sunday or holiday editions. Where successive publications are
     required to be made in Authorized Newspapers, the successive publications
     may be made in the same or in different newspapers in the same city meeting
     the foregoing requirements and in each case on any Business Day.

          "Corporate Trust Office" means the office of the Trustee at which the
     corporate trust business of the Trustee shall, at any particular time, be
     principally administered, which office is, at the date of this Indenture,
     located at Citibank, N.A., 111 Wall Street, 14th Floor, New York, New York,
     10005; Attention: Citibank Agency and Trust Services.

          "Principal Property" means any parcel of real property and related
     fixtures or improvements (other than telecommunications equipment,
     including, without limitation, satellite transponders) owned by the Company
     or any Restricted Subsidiary and located in the United States, the
     aggregate book value of which on the date of determination exceeds $1.0
     billion, other than any such real property and related fixtures or
     improvements which, as determined in good faith by the Board of Directors
     of the Company, is not of material importance to the total business
     conducted by the Company and its Subsidiaries, taken as a whole.

                                        3
<PAGE>

          "Sale and Leaseback Transaction" means any arrangement with any Person
     providing for the leasing by the Company or any Restricted Subsidiary of
     any Principal Property which has been or is to be sold or transferred by
     the Company or such Person; provided, however, that "Sale and Leaseback
     Transaction" shall not include such arrangements that were existing on
     January 17, 2001, or at the time any Person owning a Principal Property
     becomes a Restricted Subsidiary (whether by acquisition or otherwise,
     including through merger or consolidation).

          "United States Person" means any individual who is a citizen or
     resident of the United States, a corporation, partnership or other entity
     created or organized in or under the laws of the United States, any state
     thereof or the District of Columbia (other than a partnership that is not
     treated as a United States Person under any applicable Treasury
     regulations), any estate the income of which is subject to United States
     federal income taxation regardless of its source, or any trust if a court
     within the United States is able to exercise primary supervision over the
     administration of the trust and one or more United States Persons have the
     authority to control all substantial decisions of the trust.
     Notwithstanding the preceding sentence, to the extent provided in the
     Treasury regulations, certain trusts in existence on August 20, 1996, and
     treated as United States Persons prior to such date that elect to continue
     to be treated as United States Persons, will also be United States Persons.

SECTION 5. For the sole benefit of the Holders of the 2006 Senior Notes, Section
101 of the Indenture shall be amended by adding the following definitions, each
in appropriate alphabetical order:

          "Agent"  means any Transfer  Agent,  Registrar,  co-Registrar,  Paying
     Agent or Authenticating Agent.

          "Closing Date" means January 17, 2001.

          "Depositary"  means, as applicable,  either the U.S. Depositary or the
     Common Depositary.

          "Exchange Notes" means any securities of the Company containing terms
     identical to the 2006 Senior Notes (except that such Exchange Notes shall
     be registered under the Securities Act and shall not include the
     restrictions on transfer or any increase in the interest rate) that are
     issued and exchanged for the 2006 Senior Notes pursuant to the Registration
     Rights Agreement and the Indenture.

          "Exchange Offer Registration Statement" means the Exchange Offer
     Registration Statement as defined in the Registration Rights Agreement.

          "non-United States Person" means a Person who is not a United States
     Person.

                                        4
<PAGE>
          "Participant" means a Person who has an account with a Depositary.

          "Registration Rights Agreement" means the Registration Rights
     Agreement, dated January 17, 2001, between the Company, the Guarantor,
     Merrill Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith
     Barney, Inc. and certain permitted assigns specified therein.

          "Registration Statement" means the Registration Statement as defined
     and described in the Registration Rights Agreement.

          "Regulation S" means Regulation S under the Securities Act.

          "Regulation  S  Non-U.S.  Person"  means a  person  who is not a "U.S.
     Person" as defined in Regulation S.

          "Regulation  S U.S.  Person"  has  the  meaning  assigned  thereto  in
     Regulation S.

          "Restricted Security" means any 2006 Senior Note that has not been
     sold in connection with an effective Registration Statement.

          "Rule 144A" means Rule 144A under the Securities Act.

          "Securities Act" means the Securities Act of 1933, as amended from
     time to time.

          "Shelf Registration Statement" means the Shelf Registration Statement
     as defined in the Registration Rights Agreement.

SECTION 6. For the sole benefit of the Holders of the Senior Notes due 2010 and
the Senior Debentures, Section 1 of the Fourth Supplemental Indenture is hereby
amended by adding the following definitions, each in appropriate alphabetical
order:

     "Closing Date" means January 17, 2001.

     "Exchange Notes" or "Exchange Debentures" means any securities of the
Company containing terms identical to the 2010 Senior Notes or Senior
Debentures, as the case may be, (except that such Exchange Notes or Exchange
Debentures shall be registered under the Securities Act and shall not include
the restrictions on transfer or any increase in the interest rate) that are
issued and exchanged for the 2010 Senior Notes or Senior Debentures, as the case
may be, pursuant to the Registration Rights Agreement and the Indenture.

     "Exchange Offer Registration Statement" means the Exchange Offer
Registration Statement as defined in the Registration Rights Agreement.

                                        5
<PAGE>
     "Registration Rights Agreement" means the Registration Rights Agreement,
dated January 17, 2001, between the Company, the Guarantor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated and Salomon Smith Barney, Inc. and certain
permitted assigns specified therein.

     "Registration Statement" means the Registration Statement as defined and
described in the Registration Rights Agreement.

     "Regulation S" means Regulation S under the Securities Act.

     "Regulation S Non-U.S. Person" means a person who is not a "U.S. Person" as
defined in Regulation S.

     "Regulation S U.S.  Person" has the meaning  assigned thereto in Regulation
S.

     "Restricted Security" means any 2010 Senior Note or Senior Debenture that
has not been sold in connection with an effective Registration Statement.

     "Rule 144A" means Rule 144A under the Securities Act.

     "Securities Act" means the Securities Act of 1933, as amended from time to
time.

     "Shelf Registration Statement" means the Shelf Registration Statement as
defined in the Registration Rights Agreement.

SECTION 7. For the sole benefit of the Holders of the Senior Notes due 2006,
Section 106 shall be amended by deleting clause (1) thereof and replacing such
clause (1) in its entirety with the following:

          (1) such notice shall be sufficiently given to Holders of Registered
     Securities (unless otherwise herein expressly provided) (a) if in writing
     and mailed, first-class postage prepaid, to each such Holder affected by
     such event, at the address of such Holder as it appears in the Security
     Register, not earlier than the earliest date, and not later than the latest
     date, prescribed for the giving of such notice, and (b) for so long as a
     series of Registered Securities is listed on the Luxembourg Stock Exchange
     and it is required by rules of the Luxembourg Stock Exchange, publication
     shall have been made of such notice with regard to such series of
     Securities in the English language in an Authorized Newspaper.

SECTION 8. For the sole benefit of the holders of (i) the 2006 Senior Notes,
Sections 305, 305A and 305B of the Indenture are hereby deleted in their
entirety and replaced by the following Sections 305, 305A, 305B, 305C, 305D and
305E (the "New Provisions"); and (ii) the 2010 Senior Notes and the Senior
Debentures, Section 6 of the Fourth Supplemental Indenture is hereby deleted in
its entirety and replaced with the following; provided that references to the
2010 Senior Notes and the Senior Debentures (or any other similar term)
contained in the New Provisions shall be deleted from the version of the New
Provisions which applies to the 2006 Senior Notes; and provided further, that
references to the 2006 Senior Notes (or any other similar

                                        6
<PAGE>
term) contained in the New Provisions shall be deleted from the version of the
New Provisions which applies to the 2010 Senior Notes and the Senior Debentures:

          SECTION 305. Registrar and Paying Agent. The Company shall maintain an
     office or agency in the City of New York where Securities may be presented
     for transfer or for exchange (the "Transfer Agent") and for the
     registration of such transfer or exchange (the "Registrar", which term
     shall include acting in the capacity of Transfer Agent), an office or
     agency in the City of New York where Securities may be presented for
     payment (the "Paying Agent") and an office or agency where notices and
     demands to or upon the Company in respect of the Securities and this
     Indenture may be served, which shall be in the Borough of Manhattan, The
     City of New York and, in the event any series of Securities is listed on
     the Luxembourg Stock Exchange, in Luxembourg with respect to such series.
     The Company shall cause the Registrar to keep a register of the Securities
     and of their transfer and exchange (the "Security Register"). The Security
     Register shall be in written form or any other form capable of being
     converted into written form within a reasonable time. The Company may have
     one or more co-Registrars and one or more additional Paying Agents.

          The Company shall enter into an appropriate agency agreement with any
     Agent not a party to this Indenture. The agreement shall implement the
     provisions of this Indenture that relate to such Agent. The Company shall
     give prompt written notice to the Trustee of the name and address of any
     such Agent and any change in the address of such Agent. If the Company
     fails to maintain a Registrar, Paying Agent and/or agent for service of
     notices and demands, the Trustee shall act as such Registrar, Paying Agent
     and/or agent for service of notices and demands. The Company may remove any
     Agent upon written notice to such Agent and the Trustee; provided that no
     such removal shall become effective until (i) the acceptance of an
     appointment by a successor Agent to such Agent as evidenced by an
     appropriate agency agreement entered into by the Company and such successor
     Agent and delivered to the Trustee or (ii) notification to the Trustee that
     the Trustee shall serve as such Agent until the appointment of a successor
     Agent in accordance with clause (i) of this proviso. The Company, any
     Subsidiary of the Company, or any Affiliate of any of them may act as
     Paying Agent, Registrar or co-Registrar, and/or agent for service of notice
     and demands.

          The Company initially appoints the Trustee as Registrar, Paying Agent,
     Authenticating Agent and agent for service of notice and demands and
     Kredietbank S.A. Luxembourgeoise as Transfer Agent, Paying Agent and agent
     for service of notice and demands in Luxembourg, at Kredietbank S.A.
     Luxembourgeoise, 43, Boulevard Royal, L-2955 Luxembourg; Attention:
     Corporate Trust Department. The Trustee shall preserve in as current a form
     as is reasonably practicable the most recent list available to it of the
     names and addresses of Holders and shall otherwise comply with TIA ss.
     312(a). If the Trustee is not the Registrar, the Company shall furnish to
     the Trustee as of each Regular Record Date and at such other times as the
     Trustee may reasonably request the names and addresses of Holders as they
     appear in the Security

                                        7
<PAGE>
     Register, including the aggregate principal amount of Securities held by
     each Holder.

          SECTION 305A. Transfer and Exchange. A Holder may transfer a Security
     only by written application to the Registrar stating the name of the
     proposed transferee and otherwise complying with the terms of this
     Indenture. No such transfer shall be effected until, and such transferee
     shall succeed to the rights of a Holder only upon, final acceptance and
     registration of the transfer by the Registrar in the Security Register.
     Prior to the registration of any transfer by a Holder as provided herein,
     the Company, the Trustee, and any agent of the Company shall treat the
     person in whose name the Security is registered as the owner thereof for
     all purposes whether or not the Security shall be overdue, and neither the
     Company, the Trustee, nor any such agent shall be affected by notice to the
     contrary. Furthermore, any Holder of a Global Security shall, by acceptance
     of such Global Security, agree that transfers of beneficial interests in
     such Global Securities may be effected only through a book-entry system
     maintained by the Holder of such Global Security (or its agent) and that
     ownership of a beneficial interest in the Security shall be required to be
     reflected in a book-entry. When Securities are presented to the Registrar
     or a co-Registrar with a request to register the transfer or to exchange
     them for an equal principal amount of Securities of other authorized
     denominations; provided that (i) the Registrar shall register the transfer
     or make the exchange as requested if its requirements for such transactions
     are met (including that such Securities are duly endorsed or accompanied by
     a written instrument of transfer in form satisfactory to the Trustee and
     Registrar duly executed by the Holder thereof or by an attorney who is
     authorized in writing to act on behalf of the Holder) and (ii) the
     requirements of Section 305D herein are met. To permit registrations of
     transfers and exchanges, the Company shall execute and the Trustee shall
     authenticate Securities at the Registrar's request. No service charge shall
     be made for any registration of transfer or exchange or redemption of the
     Securities, but the Company may require payment of a sum sufficient to
     cover any transfer tax or similar governmental charge payable in connection
     therewith. Securities presented to Kredietbank S.A. Luxembourgeoise with a
     request to register the transfer or exchange of such Securities will be
     forwarded, along with such request, by Kredietbank S.A. Luxembourgeoise to
     the Registrar.

          The Registrar shall not be required (i) to issue, register the
     transfer of or exchange any Security during a period beginning at the
     opening of business 15 days before the day of the mailing of a notice of
     redemption of Securities selected for redemption under Article Eleven and
     ending at the close of business on the day of such mailing, or (ii) to
     register the transfer of or exchange any Security so selected for
     redemption in whole or in part, except the unredeemed portion of any
     Security being redeemed in part.

          SECTION 305B. Legend on Restricted Securities. Unless and until a 2006
     Senior Note, a 2010 Senior Note or a Senior  Debenture is exchanged  for an
     Exchange  Note or  Exchange  Debenture,  as the  case  may  be,  or sold in
     connection with an effective

                                        8
<PAGE>
     Shelf Registration Statement pursuant to the Registration Rights Agreement,
     (i) the U.S. Global 2006 Senior Notes, the U.S. Global 2010 Senior Notes
     and U.S. Global Senior Debentures shall bear the legend set forth on the
     face of Exhibit A, Exhibit B and Exhibit C hereto, respectively, and (ii)
     the Offshore Global 2006 Senior Notes, the Offshore 2010 Senior Notes and
     Offshore Global Senior Debentures shall bear the legend set forth on the
     face of Exhibit A, Exhibit B and Exhibit C hereto respectively, until (A)
     at least the 41st day after the Closing Date and (B) receipt by the Company
     and the Trustee of a certificate substantially in the form of Appendix I
     hereto.

          Except as provided in Section 305D, the Trustee shall not issue any
     unlegended 2006 Senior Notes, 2010 Senior Notes or Senior Debentures until
     it has received an Officers' Certificate from the Company directing it to
     do so.

          SECTION 305C. Book-Entry Provisions for U.S. Global Securities and
     Offshore Global Securities. (a) Each U.S. Global Security and Offshore
     Global Security initially shall (i) be registered in the name of the
     Depositary for such U.S. Global Security or Offshore Global Security or the
     nominee of such Depositary, (ii) be delivered, as applicable, either to the
     Trustee, as U.S. Depositary, or to the Common Depositary and (iii) bear
     legends as set forth on the face of the form of the 2006 Senior Note, 2010
     Senior Note or Senior Debenture, as the case may be.

          Members of, or Participants in, the Depositary ("Agent Members") shall
     have no rights under this Indenture with respect to any Global Security
     held on their behalf by the Depositary, or the Trustee as its custodian or
     the Common Depositary, as applicable, or under such Global Security, and
     the Depositary may be treated by the Company, the Trustee and any agent of
     the Company or the Trustee as the absolute owner of such Global Security
     for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
     shall prevent the Company, the Trustee or any agent of the Company or the
     Trustee from giving effect to any written certification, proxy or other
     authorization furnished by the Depositary or impair, as between the
     Depositary and its Agent Members, the operation of customary practices
     governing the exercise of the rights of a holder of any Security.

          (b) Transfers of a Global Security shall be limited to transfers of
     such Global Security in whole, but not in part, to the Depositary, its
     successors or their respective nominees, and as further specified in
     Section 305D. Transfers of interests in one Global Security to parties who
     will hold the interests through the same Global Security will be effected
     in the ordinary way in accordance with the respective rules and operating
     procedures of the applicable Depositaries and the provisions of Section
     305D. The provisions of the "Operating Procedures of the Euroclear System"
     and "Terms and Conditions Governing Use of Euroclear" of Euro-clear and the
     "General Terms and Conditions of Clearstream" and "Customer Handbook" of
     Cedel S.A. shall be applicable to interests in the Global Securities that
     are held by Agent Members through Euro-clear and Cedel S.A.

                                        9
<PAGE>
          (c) Any beneficial interest in one of the Global Securities that is
     transferred to a person who takes delivery in the form of an interest in
     another Global Security will, upon transfer, cease to be an interest in
     such Global Security and become an interest in such other Global Security
     and, accordingly, will thereafter be subject to all transfer restrictions,
     if any, and other procedures applicable to beneficial interests in such
     other Global Security for so long as it remains such an interest.

          (d) In connection with any transfer of a portion of the interests in a
     Global Security to beneficial owners pursuant to paragraph (b) of this
     Section 305C, the Registrar shall reflect on its books and records the date
     and a decrease in the principal amount of such Global Security in an amount
     equal to the principal amount of the interest in such Global Security to be
     transferred.

          (e) In connection with the transfer of the U.S. Global Securities or
     the Offshore Global Securities, in whole, to beneficial owners pursuant to
     paragraph (b) of this Section 305C, the U.S. Global Securities or Offshore
     Global Securities, as the case may be, shall be deemed to be surrendered to
     the Trustee for cancellation.

          (f) The registered holder of a Global Security may grant proxies and
     otherwise authorize any person, including Agent Members and persons that
     may hold interests through Agent Members, to take any action which a Holder
     is entitled to take under this Indenture or the Securities.

          (g) The Securities are initially solely issuable as Global Securities.
     Registered Securities shall only be transferred to all beneficial owners in
     exchange for their beneficial interests in a Global Security, if (i) the
     Depositary with respect to such Global Securities notifies the Company that
     it is unwilling or unable to continue as Depositary for such Global
     Security, as the case may be, and a successor Depositary is not appointed
     by the Company within 90 days of such notice or (ii) an Event of Default
     has occurred and is continuing and the Registrar has received a request to
     the foregoing effect from the Depositary or the Trustee.

          (h) All Securities issued upon any transfer or exchange of Securities
     shall be valid, legally enforceable obligations of the Company, evidencing
     the same debt, and entitled to the same benefits under this Indenture, as
     the Securities surrendered upon such transfer or exchange.

          SECTION 305D. (a) Transfers to QIBs. The following provisions shall
     apply with respect to the registration of any proposed transfer of 2006
     Senior Notes, 2010 Senior Notes or Senior Debentures constituting a
     Restricted Security to a qualified institutional buyer as defined in Rule
     144A (a "QIB"):

               (i) if the  2006  Senior  Notes,  2010  Senior  Notes  or  Senior
          Debentures to be transferred consist of an interest in the U.S. Global

                                       10
<PAGE>
          Securities,  the transfer of such interest may be effected through the
          book-entry system maintained by the Depositary; and

               (ii) (A) if the proposed transferor is an Agent Member holding a
          beneficial interest in the Offshore Global 2006 Senior Notes, Offshore
          Global 2010 Senior Notes or Offshore Global Senior Debentures, upon
          receipt by the Registrar of instructions in accordance with the
          Depositary's and the Registrar's procedures, the Registrar shall
          reflect on its books and records the date and a decrease in the
          principal amount of the Offshore Global 2006 Senior Notes, Offshore
          Global 2010 Senior Notes or Offshore Global Senior Debentures, as the
          case may be, in an amount equal to the principal amount of the
          beneficial interest in the Offshore Global 2006 Senior Notes, Offshore
          Global 2010 Senior Notes or Offshore Global Senior Debentures to be
          transferred, and (B) if the proposed transferee is an Agent Member,
          upon receipt by the Registrar of instructions given in accordance with
          the Depositary's and the Registrar's procedures, the Registrar shall
          reflect on its books and records the date and an increase in the
          principal amount of the U.S. Global 2006 Senior Notes, U.S. Global
          2010 Senior Notes or U.S. Global Senior Debentures, as the case may
          be, in an amount equal to the principal amount of the Offshore Global
          2006 Senior Notes, Offshore Global 2010 Senior Notes or Offshore
          Global Senior Debentures to be transferred and the Trustee shall
          decrease the amount of the Offshore Global 2006 Senior Notes, Offshore
          Global 2010 Senior Notes or Offshore Global Senior Debentures.

          (b)  Transfers of Interests in the  Offshore  Global  Securities.  The
     following  provisions shall apply with respect to any transfer of interests
     in Offshore Global Securities:

               (i) until the expiration of the 40-day distribution compliance
          period within the meaning of Rule 903 of Regulation S, any offer or
          sale of interests in the Offshore Global Securities shall be made (a)
          outside the United States (1) in compliance with Rule 903 or 904 under
          the Securities Act or (2) to a QIB in compliance with Rule 144A and
          (b) in accordance with all applicable securities laws of the states of
          the United States or any other applicable jurisdiction;

               (ii) prior to the removal of the legend from the Offshore Global
          Securities pursuant to Section 305B, the Registrar shall refuse to
          register such transfer unless such transfer complies with this Section
          305D, and

               (iii) after such removal, the Registrar shall register the
          transfer of any such 2006 Senior Note, 2010 Senior Note or Senior
          Debenture without requiring any additional certification.

                                       11
<PAGE>
          (c)  Transfers  to  Regulation  S Non-U.S.  Persons  at Any Time.  The
     following  provisions  shall  apply  with  respect  to  any  transfer  of a
     Restricted Security to a Regulation S Non-U.S. Person:

               (i) The Registrar shall register any proposed transfer to any
          Regulation S Non-U.S. Person if (A) the Security to be transferred is
          an interest in U.S. Global Securities, (B) the proposed transferor has
          delivered to the Registrar a certificate substantially in the form of
          Appendix I hereto and (C) if requested by the Company, the proposed
          transferee has delivered to the Registrar an opinion of counsel
          acceptable to the Company that such transfer is in compliance with the
          Securities Act.

               (ii) (A) If the proposed transferor is an Agent Member holding a
          beneficial interest in U.S. Global 2006 Senior Notes, U.S. Global 2010
          Senior Notes or U.S. Global Senior Debentures, as the case may be,
          upon receipt by the Registrar of (x) the documents, if any, required
          by paragraph (i) and (y) instructions in accordance with the
          Depositary's and the Registrar's procedures, the Registrar shall
          reflect on its books and records the date and a decrease in the
          principal amount of the U.S. Global 2006 Senior Notes, U.S. Global
          2010 Senior Notes or U.S. Global Senior Debentures, as the case may
          be, in an amount equal to the principal amount of the beneficial
          interest in the U.S. Global Security to be transferred, and (B) if the
          proposed transferee is an Agent Member, upon receipt by the Registrar
          of instructions given in accordance with the Depositary's and the
          Registrar's procedures, the Registrar shall reflect on its books and
          records the date and an increase in the principal amount of the
          Offshore Global 2006 Senior Notes, Offshore Global 2010 Senior Notes
          or Offshore Global Senior Debentures, as the case may be, in an amount
          equal to the principal amount of the U.S. Global Securities to be
          transferred, and the Trustee shall decrease the amount of the U.S.
          Global Securities.

                  SECTION 305E. General. By its acceptance of any 2006 Senior
         Notes, 2010 Senior Notes or Senior Debentures bearing the legends set
         forth on the face of the form of the 2006 Senior Note, 2010 Senior Note
         or Senior Debenture, as the case may be, each Holder of such a 2006
         Senior Note, 2010 Senior Note or Senior Debenture acknowledges the
         restrictions on transfer of such 2006 Senior Note, 2010 Senior Note or
         Senior Debenture set forth in the Indenture and in such legends and
         agrees that it will transfer such 2006 Senior Note, 2010 Senior Note or
         Senior Debenture only as provided in the Indenture.

                  The Registrar shall retain, in accordance with its customary
         procedures, copies of all letters, notices and other written
         communications received pursuant to this Section 305E. The Company
         shall have the right to inspect and make copies of all such letters,
         notices or other written communications at any reasonable time upon the
         giving of reasonable written notice to the Registrar.

                                       12
<PAGE>

SECTION 9. For the sole benefit of the Holders of the 2006 Senior Notes, Section
307 shall be amended by deleting the first paragraph thereof and replacing such
paragraph in its entirety with the following:

          (a) Interest on any Registered Security which is payable, and is
     punctually paid or duly provided for, on any Interest Payment Date shall be
     paid, in immediately available funds, to the Person in whose name that
     Security (or one or more Predecessor Securities) is registered at the close
     of business on the Regular Record Date for such interest at the office or
     agency of the Company maintained for such purpose pursuant to Section 1002;
     provided, however, that each installment of interest on any Registered
     Security may at the Company's option be paid in immediately available funds
     by transfer to an account maintained by the payee located in the United
     States.

SECTION 10. For the sole benefit of the Holders of the 2006 Senior Notes,
Section 501 shall be amended by deleting in subparagraphs (4) and (5)
thereunder, the references to the amount $100 million, and replacing such
references with the amount $250 million.

SECTION 11. For the sole benefit of the Holders of the 2006 Senior Notes, the
first paragraph of Section 1007 of the Indenture is hereby deleted and replaced
by the following paragraphs:

          The Company shall, subject to the exceptions and limitations set forth
     below, pay as additional interest on the Securities of any series, such
     additional amounts (the "Additional Amounts") as are necessary in order
     that the net payment to be made by the Company or by a Paying Agent on
     behalf of the Company, of the principal of and interest on a series of
     Securities to a Holder who is a non-United States Person, after deduction
     for any present or future tax, assessment or other governmental charge of
     the United States or a political subdivision or taxing authority thereof or
     therein, imposed by withholding with respect to such payment, will not be
     less than the amount provided in the Securities to be then due and payable;
     provided, however, that the foregoing obligation to pay Additional Amounts
     shall not apply:

          (1) to any tax, assessment or other governmental charge that is
     imposed or withheld solely by reason of the Holder, or a fiduciary,
     settlor, beneficiary, member or shareholder of the Holder, if the Holder is
     an estate, trust, partnership or corporation, or a Person holding a power
     over an estate or trust administered by a fiduciary Holder, being
     considered as:

               (a) being or having been present or engaged in a trade or
          business in the United States or having had a permanent establishment
          in the United States;

               (b)  having a current  or  former  relationship  with the  United
          States, including a relationship as a citizen or resident thereof;

                                       13
<PAGE>
               (c) being or having been a foreign or domestic personal holding
          company, a passive foreign investment company or a controlled foreign
          corporation with respect to the United States or a corporation that
          has accumulated earnings to avoid United States federal income tax;

               (d) being or having a "10-percent shareholder" of the Company, as
          defined in Section 871(h)(3) of the United States Internal Revenue
          Code or any successor provision thereof; or

               (e) being a bank receiving payments on an extension of credit
          made pursuant to a loan agreement entered into in the ordinary course
          of its trade or business;

          (2) to any Holder that is not the sole beneficial owner of a Security,
     or a portion thereof, or that is a fiduciary or partnership, but only to
     the extent that a beneficiary or settlor with respect to the fiduciary, a
     beneficial owner or member of the partnership would not have been entitled
     to the payment of any Additional Amount had the beneficiary, settlor,
     beneficial owner or member received directly its beneficial or distributive
     share of the payment;

          (3) to any tax, assessment or other governmental charge that is
     imposed or withheld by reason of the failure of the Holder or any other
     person to comply with certification, identification or information
     reporting requirements concerning the nationality, residence, identity or
     connection with the United States, or otherwise with respect to the status,
     of the Holder or beneficial owner of such Security (or any beneficiary,
     settlor, beneficial owner or member thereof), if compliance is required by
     statute, by regulation of the United States Treasury Department or by an
     applicable income tax treaty to which the United States is a party, or by
     any official interpretation or ruling promulgated pursuant to any of the
     foregoing, as a precondition to exemption from such tax, assessment or
     other governmental charge;

          (4) to any tax, assessment or other governmental charge that is
     imposed otherwise than by withholding by the Company or by a Paying Agent
     on its behalf from the payment;

          (5) to any tax, assessment or other governmental charge that is
     imposed or withheld solely by reason of a change in law, regulation, or
     administrative or judicial interpretation that becomes effective more than
     15 days after the payment becomes due or is duly provided for, whichever
     occurs later;

          (6) to any estate, inheritance, gift, sales, excise, transfer, wealth
     or personal property tax or similar tax, assessment or other governmental
     charge;

          (7) to any tax, assessment or other governmental charge required to be
     withheld by any Paying Agent from any payment of principal of or interest
     on any Security, if such payment can be made without such withholding by
     any other Paying Agent on behalf of the Company; or

                                       14
<PAGE>
          (8) in the case of any combination of items (1), (2), (3), (4), (5),
     (6) and (7).

              The Securities are subject in all cases to any tax, fiscal or
     other law or regulation or administrative or judicial interpretation
     applicable thereto. Except as otherwise provided for in this Section 1007
     and Section 1101, the Company shall not be required to make any payments
     with respect to any tax, assessment or other governmental charge imposed by
     any government or a political subdivision or taxing authority thereof or
     therein.

              Whenever in this Indenture there is mentioned, in any context, the
     payment of the principal of (or premium, if any, on) or interest on, or in
     respect of, any Security of a series or payment of any related coupon or
     the net proceeds received on the sale or exchange of a Security of a
     series, such mention shall be deemed to include mention of the payment of
     Additional Amounts provided for by the terms of such series established
     pursuant to Section 301 to the extent that, in such context, Additional
     Amounts are, were or would be payable in respect thereof pursuant to such
     terms and express mention of the payment of Additional Amounts (if
     applicable) in any provisions hereof shall not be construed as excluding
     Additional Amounts in those provisions hereof where such express mention is
     not made.

SECTION 12. For the sole benefit of the Holders of the 2006 Senior Notes,
Section 1010 of the Indenture is hereby deleted in its entirety and replaced by
the following Section 1010:

          Section 1010. Limitations on Liens.

          The Company shall not create, assume or suffer to exist any Lien on
     any of its property or assets, without securing the Securities of any
     applicable series equally and ratably with (or prior to) such secured
     Indebtedness; provided, however, that the foregoing shall apply only to
     Liens which in the aggregate exceed 15% of the Company's total consolidated
     assets as of the end of the Company's most recent accounting period
     preceding the creation or assumption of any such Lien (reduced by any
     Attributable Debt with respect to any Sale and Leaseback Transaction
     permitted under Section 1011 below). This restriction will not apply to
     Capitalized Leases or to Indebtedness secured by (a) Liens existing on
     January 17, 2001, and Liens on property of, or Indebtedness of, any Person
     at the time such Person becomes a Subsidiary (whether by acquisition or
     otherwise, including through merger or consolidation), (b) Liens in favor
     of the Company or a Subsidiary of the Company, (c) Liens existing at the
     time of acquisition of the assets secured thereby (including acquisition
     through merger or consolidation) and purchase money Liens, and (d) any
     extension, renewal or refunding of any Lien referred to in the foregoing
     clauses (a) through (c), inclusive.

SECTION 13. For the sole benefit of the Holders of the 2006 Senior Notes,
Section 1101 of the Indenture is hereby deleted in its entirety and replaced by
the following Section 1101:

                                       15
<PAGE>
          Section 1101. Optional Redemption.

          In the event that as a result of any change in, or amendments to, any
     laws (or any regulations or rulings promulgated thereunder) of the United
     States (or any political subdivision or taxing authority thereof or
     therein) or any change in, or amendments to, an official position regarding
     the application of such laws, regulations or rulings, which change or
     amendment is announced or becomes effective thereunder after January 9,
     2001, the Company has become or, based upon a written opinion of
     independent counsel selected by the Company, will become obligated to pay,
     with respect to a series of Securities, any Additional Amounts, the Company
     may redeem, in accordance with this Article Eleven, all, but not less than
     all, the Securities of such series at any time at 100% of the principal
     amount thereof, together with accrued interest thereon, if any, to the
     Redemption Date (subject to the rights of holders of record on the relevant
     Regular Record Date that is prior to the Redemption Date to receive
     interest on the relevant Interest Payment Date).

SECTION 14. For the sole benefit of the Holders of the 2006 Senior Notes, a new
Section 1108 shall be added to the Indenture and, for the sole benefit of the
Holders of the 2010 Senior Notes and Senior Debentures, the Fourth Supplemental
Indenture shall be amended to add a new Section 11A which shall add a new
Section 1108 to the Indenture as follows:

          (a) Exchange Notes or Exchange Debentures may from time to time be
     executed by the Company and delivered to the Trustee for authentication and
     the Trustee shall thereupon authenticate and deliver said Exchange Notes or
     Exchange Debentures, upon cancellation of an equal amount of Restricted
     Securities tendered in exchange, upon a Company Order without further
     action by the Company.

          (b) No exchange of 2006 Senior Notes, 2010 Senior Notes or Senior
     Debentures for Exchange Notes or Exchange Debentures, as the case may be,
     shall occur until a Registration Statement shall have been declared
     effective by the Commission and any 2006 Senior Notes, 2010 Senior Notes or
     Senior Debentures that are exchanged for Exchange Notes or Exchange
     Debentures shall be cancelled by the Trustee.

SECTION 15. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS FIFTH
SUPPLEMENTAL INDENTURE.

SECTION 16. This Fifth Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original,
but such counterparts shall together constitute but one and the same instrument.

SECTION 17. Except as herein amended with respect to the 2006 Senior Notes, 2010
Senior Notes and the Senior Debentures, all applicable terms, conditions and
provisions of the Indenture, as supplemented, shall continue in full force and
effect and shall remain binding and enforceable in accordance with their
respective terms.

                                       16
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Fifth Supplemental
Indenture to be duly executed and attested, all as of the day and year first
written above.

                                 VIACOM INC.

                                 By:  /s/   Robert G. Freedline
                                    -------------------------------------
                                     Name:  Robert G. Freedline
                                     Title: Vice President and Treasurer

ATTEST

By: /s/   Angeline C. Straka
   ------------------------------
   Name:  Angeline C. Straka
   Title:

                                 VIACOM INTERNATIONAL INC.

                                 By:  /s/   Robert G. Freedline
                                    -------------------------------------
                                     Name:  Robert G. Freedline
                                     Title: Vice President and Treasurer

ATTEST

By: /s/   Angeline C. Straka
   ------------------------------
   Name:  Angeline C. Straka
   Title:

                                 CITIBANK, N.A.

                                 By:   /s/  Pat DeFelice
                                    -------------------------------------
                                     Name:  Pat DeFelice
                                     Title: Vice President

ATTEST

By:  /s/  Nancy Forte
   -------------------------------------
   Name:  Nancy Forte
   Title: Senior Trust Officer

                                       17
<PAGE>

                    EXHIBIT A TO FIFTH SUPPLEMENTAL INDENTURE

     Unless and until a Security is exchanged for an Exchange Note or sold in
connection with an effective Registration Statement pursuant to the Registration
Rights Agreement, (i) the U.S. Global Notes shall bear the legend set forth
below on the face thereof and (ii) the Offshore Global Notes shall bear the
legend set forth below on the face thereof until at least the 41st day after the
Closing Date and receipt by the Company and the Trustee of a certificate
substantially in the form of Appendix I hereto: THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT" ),
OR ANY STATE OR OTHER SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT (" RULE 144A" )), OR (B) IT IS NOT A U.S. PERSON
AND IS ACQUIRING THIS SECURITY IN AN " OFFSHORE TRANSACTION" PURSUANT TO RULE
903 OR 904 OF REGULATION S, (2) AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH
SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR ANY PREDECESSOR OF THIS
SECURITY) AND THE LAST DATE ON WHICH VIACOM OR ANY AFFILIATE OF VIACOM WAS THE
OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF
ANY, AS MAY BE REQUIRED BY APPLICABLE LAW (THE "RESALE RESTRICTION TERMINATION
DATE" ) EXCEPT (A) TO VIACOM OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A INSIDE THE UNITED STATES, TO A PERSON IT REASONABLY BELIEVES IS A
"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) OUTSIDE
THE UNITED STATES PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS IN AN
OFFSHORE TRANSACTION WITHIN THE MEANING AND CONSISTENT WITH THE TERMS AND
CONDITIONS OF REGULATION S UNDER THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
(3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT VIACOM, THE
TRUSTEE, THE TRANSFER AGENT AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (I) PURSUANT TO

                                       A-1
<PAGE>
     CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION REASONABLY SATISFACTORY TO EACH OF THEM,
AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE IS COMPLETED AND
DELIVERED BY THE TRANSFEROR TO VIACOM AND THE TRUSTEE. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE. AS USED HEREIN, THE TERMS "UNITED STATES," "OFFSHORE TRANSACTION," AND
"U.S. PERSON" HAVE THE RESPECTIVE MEANINGS GIVEN TO THEM BY REGULATION S UNDER
THE SECURITIES ACT.

     Each Offshore Global Note shall bear the following legend: PRIOR TO
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO A U.S. PERSON OR FOR THE ACCOUNT OR
BENEFIT OF A U.S. PERSON.

     Each Global Security shall bear the following legend: Unless this
certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company (as defined below) or
its agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), 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.

     Any Global Security issued hereunder shall bear a legend in substantially
the following form: This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of the
Depositary or a nominee of the Depositary. This Security is exchangeable for
Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture, and may
not be transferred except as a whole by the Depositary to a nominee of the
Depositary by a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such a successor Depositary.

     Unless and until it is exchanged in whole or in part for Securities in
definitive registered form in accordance with the provisions of the Indenture
(as defined below) applicable to such exchange, this certificate may not be
transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC
to DTC or another nominee of DTC or by DTC or any such nominee to a successor
Depository or a nominee of such successor Depository.

                                       A-2
<PAGE>

                                   VIACOM INC.

                           6.40% Senior Notes due 2006

                   Unconditionally guaranteed as to payment of
                          principal of and interest by
                            VIACOM INTERNATIONAL INC.
                   (a wholly owned subsidiary of Viacom Inc.)

No.                                                        $

                                                                   CUSIP: [    ]
                                                                     CINS: [   ]
                                                                   ISIN: [     ]

     Viacom Inc., a Delaware corporation (herein called the "Company", which
term includes any successor Person under the Indenture hereinafter referred to),
for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of $[_________] on January 30, 2006 at the office or agency of
the Company referred to below, and to pay interest thereon on July 30, 2001 and
semi-annually thereafter, on January 30 and July 30 in each year, from January
17, 2001, or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, at the rate of 6.40% per annum, until the
principal hereof is paid or duly provided for. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid, in immediately available funds, to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the January 15 or July 15, as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid
or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date, and such defaulted interest, may be paid to the Person in
whose name this Security (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
Holders of Securities not less than 10 days prior to such Special Record Date,
or may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture. Payment of the principal of and interest on this
Security will be made at the Corporate Trust Office of the Trustee or such other
office or agency of the Company as may be designated for such purpose, 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; provided however, that
each installment of interest and principal on this Security may at the Company's
option be paid in immediately available funds by transfer to an account
maintained by the payee located in the United States.

     The statements set forth in the restrictive legends above are an integral
part of the terms of this Note and by acceptance hereof each holder of this Note
agrees to be subject to and bound by terms and provisions set forth in such
legend.

                                       A-3
<PAGE>

     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), unlimited in aggregate principal
amount, issued and to be issued in one or more series under an indenture dated
as of May 15, 1995 among the Company, Viacom +International Inc., as guarantor
(the "Guarantor") and Citibank, N.A., as successor to State Street Bank and
Trust Company and The First National Bank of Boston, trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), as
supplemented by the First Supplemental Indenture dated as of May 24, 1995 among
the Company, the Guarantor and the trustee party thereto, as supplemented and
amended by the Second Supplemental Indenture and Amendment No. 1 dated as of
December 15, 1995 among the Company, the Guarantor and the trustee party
thereto, as supplemented by the Third Supplemental Indenture dated as of July
22, 1996, among the Company, the Guarantor and the trustee party thereto, as
supplemented by the Fourth Supplemental Indenture dated as of August 1, 2000
among the Company, the Guarantor and the Trustee and as further supplemented by
the Fifth Supplemental Indenture dated as of January 17, 2001 among the Company,
the Guarantor and the Trustee (as so supplemented and amended, the "Indenture"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of a series
designated as 6.40% Senior Notes due 2006, initially limited in aggregate
principal amount to $400,000,000. This Security is a global Security
representing $[___________] of the Securities.

     INCLUDE IF SECURITY IS A GLOBAL NOTE - This Note is a "book-entry" Note and
is being registered in the name of Cede & Co. as nominee of The Depository Trust
Company ("DTC"), a clearing agency. Subject to the terms of the Indenture, this
Note will be held by a clearing agency or its nominee, and beneficial interest
will be held by beneficial owners through the book-entry facilities of such
clearing agency or its nominee in minimum denominations of $1,000 and integral
multiples thereof. As long as this Note is registered in the name of DTC or its
nominee, the Trustee will make payments of principal of and interest on this
Note by wire transfer of immediately available funds to DTC or its nominee.
Notwithstanding the above, the final payment on this Note will be made after due
notice by the Trustee of the pendency of such payment and only upon presentation
and surrender of this Note at its principal corporate trust office or such other
offices or agencies appointed by the Trustee for that purpose and such other
locations provided in the Indenture.

     The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement, dated as of January 17, 2001. In the event that (i) the
Company fails to file an Exchange Offer Registration Statement with respect to
the Notes with the Commission on or prior to the 60th calendar day following the
Closing Date, (ii) the Commission does not declare such Exchange Offer
Registration Statement effective on or prior to the 180th calendar day following
the Closing Date, (iii) the Exchange Offer is not consummated on or prior to the
45th calendar day following the effective date of the Exchange Offer
Registration Statement or (iv) if required, a Shelf Registration Statement with
respect to the Notes is not declared effective by the Commission on or prior to
the 240th calendar day following the Closing Date or ceases to be effective or
usable during the periods specified in the Registration Rights Agreement (each,
a "Registration Default"), the per annum interest rate borne by the Notes shall
be increased by one-quarter of one percent (0.25%) per annum from the end of the
applicable period giving rise

                                       A-4
<PAGE>
to such Registration Default. The interest rate borne by the Notes will be
increased by an additional one-quarter of one percent (0.25%) per annum for each
subsequent 90-day period during which any such Registration Default continues;
provided that the aggregate increase in such annual interest rate may in no
event exceed one-half of one percent (0.50%) per annum. Following the cure of
all Registration Defaults, the interest rate borne by the Notes shall be reduced
to the original interest rate borne by the Notes. No increase in the rate shall
be payable for any period during which a Shelf Registration is effective. All
accrued additional interest shall be paid to Holders by the Company in the same
manner as interest is paid pursuant to the Indenture. All terms used in this
Note that are defined in the Registration Rights Agreement shall have the
meanings assigned to them in the Registration Rights Agreement.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Securities of this series are not subject to any sinking fund and are
subject to redemption prior to maturity as set forth below.

     In the event that as a result of any change in, or amendments to, any laws
(or any regulations or rulings promulgated thereunder) of the United States (or
any political subdivision or taxing authority thereof or therein) or any change
in, or amendments to, an official position regarding the application of such
laws, regulations or rulings, which change or amendment is announced or becomes
effective thereunder after July 25, 2000, the Company has become or, based upon
a written opinion of independent counsel selected by the Company, will become
obligated to pay, with respect to this series of Securities, any Additional
Amounts, the Company may redeem all, but not less than all, the Securities of
such series at any time at 100% of the principal amount thereof, together with
accrued interest thereon, if any, to the Redemption Date (subject to the rights
of holders of record on the relevant Regular Record Date that is prior to the
Redemption Date to receive interest on the relevant Interest Payment Date).

     INCLUDE IF SECURITY IS A GLOBAL SECURITY-In the event of a deposit or
withdrawal of an interest in this Note, including an exchange, transfer,
repurchase or conversion of this Note in part only, the Trustee, as custodian of
the Depository, shall make an adjustment on its records to reflect such deposit
or withdrawal in accordance with the rules and procedures of the Depositary.

     INCLUDE IF SECURITY IS A RESTRICTED SECURITY - Subject to certain
limitations in the Indenture, at any time when the Company is not subject to
Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended,
upon the request of a Holder of a Restricted Security, the Company will promptly
furnish or cause to be furnished Rule 144A Information (as defined below) to
such Holder of Restricted Securities, or to a prospective purchaser of any such
security designated by any such Holder, to the extent required to permit
compliance by any such Holder with Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). "Rule 144A Information" shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto).

                                       A-5
<PAGE>
     The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness of the Company on this Security and (b) certain restrictive
covenants and the related Defaults and Events of Default, upon compliance by the
Company with certain conditions set forth therein, which provisions apply to
this Security.

     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, the Guarantor and the
Trustee with the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected thereby. The
Indenture also contains provisions permitting the Holders of not less than
specified percentages in aggregate principal amount of the Outstanding
Securities of each series, on behalf of the Holders of all the Securities of
such series, to waive compliance by the Company and the Guarantor with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by or on behalf of the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security 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 Security.

     As set forth in, and subject to, the provisions of the Indenture, no Holder
of any Security of this series will have any right to institute any proceeding
with respect to the Indenture or for any remedy thereunder, unless such Holder
shall have previously given to the Trustee written notice of a continuing Event
of Default with respect to this series, the Holders of not less than 25% in
principal amount of the Outstanding Securities of this series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, and the Trustee shall not have received from the
Holders of a majority in principal amount of the Outstanding Securities of this
series a direction inconsistent with such request and shall have failed to
institute such proceeding within 60 days; provided however, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of or interest on this Security on or
after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security 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
Security at the times, place, and rate, and in the coin or currency, herein
prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registerable on the Security Register of
the Company, upon surrender of this Security for registration of transfer at the
office or agency of the Company maintained for such purpose in New York, New
York or at such other office or agency as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

                                       A-6
<PAGE>
     The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
the Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of a different authorized denomination,
as requested by the Holder surrendering the same.

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

     Prior to the time of due presentment of this Security for registration of
transfer, the Company, the Guarantor, the Trustee and any agent of the Company,
the Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the absolute owner hereof for all purposes, whether or not this
Security be overdue, and none of the Company, the Guarantor, the Trustee or any
agent of the Company, the Guarantor or the Trustee shall be affected by notice
to the contrary.

     If at any time, a Depositary is at any time unwilling or unable to continue
as Depositary and a successor Depositary is not appointed by the Company within
90 days, then the Company will execute and the Trustee will authenticate and
deliver Securities in definitive registered form, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of this
Security in exchange for this Security. Such Securities in definitive registered
form shall be registered in such names and issued in such authorized
denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Securities to the Persons in whose names such Securities are
so registered.

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

     This Security shall be governed by, and construed in accordance with, the
laws of the State of New York.

                                       A-7
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated: January 17, 2001                   VIACOM INC.,

                                          as Issuer

                                          By
                                            ------------------------------

Attest:

----------------------------
Authorized Signature

                                       A-8
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of a series referred to in the within-
mentioned Indenture.

                                       CITIBANK, N.A., as Trustee

                                       By
                                          -----------------------------
                                           Authorized Signatory

Dated: January 17, 2001

                                       A-9
<PAGE>

                     GUARANTEE OF VIACOM INTERNATIONAL INC.

     FOR VALUE RECEIVED, VIACOM INTERNATIONAL INC., a corporation duly organized
and existing under the laws of the State of Delaware (herein called the
"Guarantor", which term includes any successor corporation under the Indenture
referred to in the Security upon which this Guarantee is endorsed), hereby fully
and unconditionally guarantees to the holder of the Security upon which this
Guarantee is endorsed the due and punctual payment of the principal of and
interest (including, in case of default, interest on principal and, to the
extent permitted by applicable law, on overdue interest), if any, on this
Security, when and as the same shall become due and payable, whether at Stated
Maturity, upon redemption, upon declaration of acceleration or otherwise,
according to the terms thereof and of the Indenture referred to therein. In case
of the failure of Viacom Inc. or any successor thereto (herein called the
"Company") punctually to pay any such principal or interest, the Guarantor
hereby agrees to cause any such payment to be made punctually when and as the
same shall become due and payable, whether at Stated Maturity, upon redemption,
upon declaration of acceleration or otherwise, as if such payment were made by
the Company.

     The Guarantor hereby agrees that its obligations hereunder shall be as if
it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of the identity of the Company, the validity,
regularity or enforceability of this Security or said Indenture, the absence of
any action to enforce the same, any waiver or consent by the Holder of this
Security with respect to any provisions thereof, the recovery of any judgment
against the Company or any action to enforce the same, or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor. The Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that this Guarantee
will not be discharged except by complete performance of the obligations
contained in this Security and in this Guarantee.

     The Guarantor shall be subrogated to all rights of the Holder of this
Security against the Company in respect of any amounts paid by the Guarantor
pursuant to the provisions of this Guarantee or the Indenture referred to in
this Security; provided, however, that the Guarantor shall not be entitled to
enforce or to receive any payment arising out of, or based upon, such right of
subrogation until the principal of and interest on all Securities of the series
of which the Security upon which this Guarantee is endorsed constitutes a part
shall have been indefeasibly paid in full.

     The Indenture provides that in the event that this Guarantee would
constitute or result in a fraudulent transfer or conveyance for purposes of, or
result in a violation of, any United States federal, or applicable United States
state, fraudulent transfer or conveyance or similar law, then the liability of
the Guarantor hereunder shall be reduced to the extent necessary to eliminate
such fraudulent transfer or conveyance or violation under the applicable
fraudulent transfer or conveyance or similar law.

                                      A-10
<PAGE>
     If the Trustee or the Holder of the Security upon which this Guarantee is
endorsed is required by any court or otherwise to return to the Company or the
Guarantor, or any custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official acting in relation to the Company or the
Guarantor, any amount paid to the Trustee or such Holder in respect of the
Security upon which this Guarantee is endorsed, this Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect. The
Guarantor further agrees, to the fullest extent that it may lawfully do so,
that, as between the Guarantor, on the one hand, and the Holders and the
Trustee, on the other hand, the maturity of the obligations guaranteed hereby
may be accelerated as provided in Article Five of the Indenture for the purposes
of this Guarantee, notwithstanding any stay, injunction or other prohibition
extant under any applicable bankruptcy law preventing such acceleration in
respect of the obligations guaranteed hereby.

     This Guarantee shall be governed by, and construed in accordance with, the
laws of the State of New York.

     Subject to the next following paragraph, the Guarantor hereby certifies and
warrants that all acts, conditions and things required to be done and performed
and to have happened precedent to the creation and issuance of this Guarantee
and to constitute the same valid obligation of the Guarantor have been done and
performed and have happened in due compliance with all applicable laws.

     This Guarantee shall not be valid or become obligatory for any purpose
until the certificate of authentication on the Security upon which this
Guarantee is endorsed has been signed by the Trustee under the Indenture
referred to in this Security.

                                      A-11
<PAGE>

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be signed by
its Chairman of the Board, or its Vice Chairman of the Board, or its President,
or one of its Executive Vice Presidents or Vice Presidents, or by its Treasurer
or one of its Assistant Treasurers and attested by its Secretary or one of its
Assistant Secretaries, manually or in facsimile.

Dated: January 17, 2001                      VIACOM INTERNATIONAL INC.

                                             By
                                               -----------------------

ATTEST:
       ----------------------------

                                      A-12
<PAGE>

                    EXHIBIT B TO FIFTH SUPPLEMENTAL INDENTURE

     Unless and until a Security is exchanged for an Exchange Note or sold in
connection with an effective Registration Statement pursuant to the Registration
Rights Agreement, (i) the U.S. Global Notes shall bear the legend set forth
below on the face thereof and (ii) the Offshore Global Notes shall bear the
legend set forth below on the face thereof until at least the 41st day after the
Closing Date and receipt by the Company and the Trustee of a certificate
substantially in the form of Appendix I hereto: THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT" ),
OR ANY STATE OR OTHER SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT ("RULE 144A" )), OR (B) IT IS NOT A U.S. PERSON
AND IS ACQUIRING THIS SECURITY IN AN "OFFSHORE TRANSACTION" PURSUANT TO RULE 903
OR 904 OF REGULATION S, (2) AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH SHORTER
PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR ANY PREDECESSOR OF THIS SECURITY)
AND THE LAST DATE ON WHICH VIACOM OR ANY AFFILIATE OF VIACOM WAS THE OWNER OF
THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS
MAY BE REQUIRED BY APPLICABLE LAW (THE "RESALE RESTRICTION TERMINATION DATE" )
EXCEPT (A) TO VIACOM OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A INSIDE THE
UNITED STATES, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) OUTSIDE THE UNITED STATES
PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS IN AN OFFSHORE TRANSACTION
WITHIN THE MEANING AND CONSISTENT WITH THE TERMS AND CONDITIONS OF REGULATION S
UNDER THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL
GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND; PROVIDED THAT VIACOM, THE TRUSTEE, THE TRANSFER AGENT
AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
(I) PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL,

                                       B-1
<PAGE>

CERTIFICATION AND/OR OTHER INFORMATION REASONABLY SATISFACTORY TO EACH OF THEM,
AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE IS COMPLETED AND
DELIVERED BY THE TRANSFEROR TO VIACOM AND THE TRUSTEE. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE. AS USED HEREIN, THE TERMS "UNITED STATES," "OFFSHORE TRANSACTION," AND
"U.S. PERSON" HAVE THE RESPECTIVE MEANINGS GIVEN TO THEM BY REGULATION S UNDER
THE SECURITIES ACT.

     Each Offshore Global Note shall bear the following legend: PRIOR TO
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO A U.S. PERSON OR FOR THE ACCOUNT OR
BENEFIT OF A U.S. PERSON.

     Each Global Security shall bear the following legend: Unless this
certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company (as defined below) or
its agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), 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.

     Any Global Security issued hereunder shall bear a legend in substantially
the following form: This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of the
Depositary or a nominee of the Depositary. This Security is exchangeable for
Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture, and may
not be transferred except as a whole by the Depositary to a nominee of the
Depositary by a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such a successor Depositary.

     Unless and until it is exchanged in whole or in part for Securities in
definitive registered form in accordance with the provisions of the Indenture
(as defined below) applicable to such exchange, this certificate may not be
transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC
to DTC or another nominee of DTC or by DTC or any such nominee to a successor
Depository or a nominee of such successor Depository.

                                       B-2
<PAGE>

                                   VIACOM INC.

                           7.70% Senior Notes due 2010

                   Unconditionally guaranteed as to payment of
                          principal of and interest by
                            VIACOM INTERNATIONAL INC.
                   (a wholly owned subsidiary of Viacom Inc.)

No. [_]                                                        $[______________]

                                                                  CUSIP: [    ]
                                                                     CINS: [   ]
                                                                   ISIN: [     ]

     Viacom Inc., a Delaware corporation (herein called the "Company", which
term includes any successor Person under the Indenture hereinafter referred to),
for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of $[_________] on July 30, 2010 at the office or agency of
the Company referred to below, and to pay interest thereon on January 30, 2001
and semi-annually thereafter, on January 30 and July 30 in each year, from
January 17, 2001, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, at the rate of 7.70% per annum,
until the principal hereof is paid or duly provided for. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid, in immediately available funds, to
the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such
interest, which shall, in the case of the payment of interest on January 30,
2001, be January 17, 2001, and thereafter be the January 15 or July 15, as the
case may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date, and such defaulted interest, may be paid to
the Person in whose name this Security (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 Holders of Securities not less than 10 days prior to such Special
Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. Payment of the principal
of and interest on this Security will be made at the Corporate Trust Office of
the Trustee or such other office or agency of the Company as may be designated
for such purpose, 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;
provided however, that each installment of interest and principal on this
Security may at the Company's option be paid in immediately available funds by
transfer to an account maintained by the payee located in the United States.

     The statements set forth in the restrictive legends above are an integral
part of the terms of this Note and by acceptance hereof each holder of this Note
agrees to be subject to and bound by terms and provisions set forth in such
legend.

                                       B-3
<PAGE>
     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), unlimited in aggregate principal
amount, issued and to be issued in one or more series under an indenture dated
as of May 15, 1995 among the Company, Viacom +International Inc., as guarantor
(the "Guarantor") and Citibank, N.A., as successor to State Street Bank and
Trust Company and The First National Bank of Boston, trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), as
supplemented by the First Supplemental Indenture dated as of May 24, 1995 among
the Company, the Guarantor and the trustee party thereto, as supplemented and
amended by the Second Supplemental Indenture and Amendment No. 1 dated as of
December 15, 1995 among the Company, the Guarantor and the trustee party
thereto, as supplemented by the Third Supplemental Indenture dated as of July
22, 1996, among the Company, the Guarantor and the trustee party thereto, as
supplemented by the Fourth Supplemental Indenture dated as of August 1, 2000
among the Company, the Guarantor and the Trustee and as further supplemented by
the Fifth Supplemental Indenture dated as of January 17, 2001 among the Company,
the Guarantor and the Trustee (as so supplemented and amended, the "Indenture"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of a series
designated as 7.70% Senior Notes due 2010, initially limited in aggregate
principal amount to $500,000,000. This Security is a global Security
representing $[___________] of the Securities.

     INCLUDE IF SECURITY IS A GLOBAL NOTE - This Note is a "book-entry" Note and
is being registered in the name of Cede & Co. as nominee of The Depository Trust
Company ("DTC"), a clearing agency. Subject to the terms of the Indenture, this
Note will be held by a clearing agency or its nominee, and beneficial interest
will be held by beneficial owners through the book-entry facilities of such
clearing agency or its nominee in minimum denominations of $1,000 and integral
multiples thereof. As long as this Note is registered in the name of DTC or its
nominee, the Trustee will make payments of principal of and interest on this
Note by wire transfer of immediately available funds to DTC or its nominee.
Notwithstanding the above, the final payment on this Note will be made after due
notice by the Trustee of the pendency of such payment and only upon presentation
and surrender of this Note at its principal corporate trust office or such other
offices or agencies appointed by the Trustee for that purpose and such other
locations provided in the Indenture.

     The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement, dated as of January 17, 2001. In the event that (i) the
Company fails to file an Exchange Offer Registration Statement with respect to
the Notes with the Commission on or prior to the 60th calendar day following the
Closing Date, (ii) the Commission does not declare such Exchange Offer
Registration Statement effective on or prior to the 180th calendar day following
the Closing Date, (iii) the Exchange Offer is not consummated on or prior to the
45th calendar day following the effective date of the Exchange Offer
Registration Statement or (iv) if required, a Shelf Registration Statement with
respect to the Notes is not declared effective by the Commission on or prior to
the 240th calendar day following the Closing Date or ceases to be effective or
usable during the periods specified in the Registration Rights Agreement (each,
a "Registration Default"), the per annum interest rate borne by the Notes shall
be increased by one-quarter of one percent (0.25%) per annum from the end of the
applicable period giving rise

                                       B-4
<PAGE>
to such Registration Default. The interest rate borne by the Notes will be
increased by an additional one-quarter of one percent (0.25%) per annum for each
subsequent 90-day period during which any such Registration Default continues;
provided that the aggregate increase in such annual interest rate may in no
event exceed one-half of one percent (0.50%) per annum. Following the cure of
all Registration Defaults, the interest rate borne by the Notes shall be reduced
to the original interest rate borne by the Notes. No increase in the rate shall
be payable for any period during which a Shelf Registration is effective. All
accrued additional interest shall be paid to Holders by the Company in the same
manner as interest is paid pursuant to the Indenture. All terms used in this
Note that are defined in the Registration Rights Agreement shall have the
meanings assigned to them in the Registration Rights Agreement.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Securities of this series are not subject to any sinking fund and are
subject to redemption prior to maturity as set forth below.

     In the event that as a result of any change in, or amendments to, any laws
(or any regulations or rulings promulgated thereunder) of the United States (or
any political subdivision or taxing authority thereof or therein) or any change
in, or amendments to, an official position regarding the application of such
laws, regulations or rulings, which change or amendment is announced or becomes
effective thereunder after July 25, 2000, the Company has become or, based upon
a written opinion of independent counsel selected by the Company, will become
obligated to pay, with respect to this series of Securities, any Additional
Amounts, the Company may redeem all, but not less than all, the Securities of
such series at any time at 100% of the principal amount thereof, together with
accrued interest thereon, if any, to the Redemption Date (subject to the rights
of holders of record on the relevant Regular Record Date that is prior to the
Redemption Date to receive interest on the relevant Interest Payment Date).

     The Securities of this series will be redeemable at any time, at the option
of the Company, in whole or from time to time in part, upon not less than 30 nor
more than 60 days' prior notice, on any date prior to their maturity at a
Redemption Price equal to the sum of 100% of the principal amount thereof and
the Make-Whole Amount and any accrued and unpaid interest, to the Redemption
Date (subject to the rights of holders of record on the relevant Regular Record
Date that is on or prior to the Redemption Date to receive interest due on the
relevant Interest Payment Date).

     In the case of any partial redemption, selection of the Securities of this
series for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Securities of this series are listed or, if the Securities of this series are
not listed on a national securities exchange, by lot or by such other method as
the Trustee in its sole discretion shall deem to be fair and appropriate;
provided that no Securities of this series of $1,000 in principal amount or less
shall be redeemed in part. If any Note is to be redeemed in part only, the
notice of redemption relating to such Security shall state the portion of the
principal amount thereof to be redeemed. A new Security in principal amount

                                       B-5
<PAGE>
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security.

     INCLUDE IF SECURITY IS A GLOBAL SECURITY-In the event of a deposit or
withdrawal of an interest in this Note, including an exchange, transfer,
repurchase or conversion of this Note in part only, the Trustee, as custodian of
the Depository, shall make an adjustment on its records to reflect such deposit
or withdrawal in accordance with the rules and procedures of the Depositary.

     INCLUDE IF SECURITY IS A RESTRICTED SECURITY - Subject to certain
limitations in the Indenture, at any time when the Company is not subject to
Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended,
upon the request of a Holder of a Restricted Security, the Company will promptly
furnish or cause to be furnished Rule 144A Information (as defined below) to
such Holder of Restricted Securities, or to a prospective purchaser of any such
security designated by any such Holder, to the extent required to permit
compliance by any such Holder with Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). "Rule 144A Information" shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto).

     The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness of the Company on this Security and (b) certain restrictive
covenants and the related Defaults and Events of Default, upon compliance by the
Company with certain conditions set forth therein, which provisions apply to
this Security.

     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, the Guarantor and the
Trustee with the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected thereby. The
Indenture also contains provisions permitting the Holders of not less than
specified percentages in aggregate principal amount of the Outstanding
Securities of each series, on behalf of the Holders of all the Securities of
such series, to waive compliance by the Company and the Guarantor with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by or on behalf of the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security 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 Security.

     As set forth in, and subject to, the provisions of the Indenture, no Holder
of any Security of this series will have any right to institute any proceeding
with respect to the Indenture or for any remedy thereunder, unless such Holder
shall have previously given to the Trustee written notice of a continuing Event
of Default with respect to this series, the Holders of not less than 25% in
principal amount of the Outstanding Securities of this series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, and the Trustee shall not have received from the
Holders of a majority in principal amount of the Outstanding Securities of this
series a direction inconsistent with such request and shall have

                                       B-6
<PAGE>
failed to institute such proceeding within 60 days; provided however, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of or interest on this Security on or
after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security 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
Security at the times, place, and rate, and in the coin or currency, herein
prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registerable on the Security Register of
the Company, upon surrender of this Security for registration of transfer at the
office or agency of the Company maintained for such purpose in New York, New
York or at such other office or agency as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
the Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of a different authorized denomination,
as requested by the Holder surrendering the same.

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

     Prior to the time of due presentment of this Security for registration of
transfer, the Company, the Guarantor, the Trustee and any agent of the Company,
the Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the absolute owner hereof for all purposes, whether or not this
Security be overdue, and none of the Company, the Guarantor, the Trustee or any
agent of the Company, the Guarantor or the Trustee shall be affected by notice
to the contrary.

     If at any time, a Depositary is at any time unwilling or unable to continue
as Depositary and a successor Depositary is not appointed by the Company within
90 days, then the Company will execute and the Trustee will authenticate and
deliver Securities in definitive registered form, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of this
Security in exchange for this Security. Such Securities in definitive registered
form shall be registered in such names and issued in such authorized
denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Securities to the Persons in whose names such Securities are
so registered.

                                       B-7
<PAGE>
     Unless the certificate of authentication hereon has been duly executed by
or on behalf of Citibank, N.A., the Trustee under the Indenture, or its
successor thereunder, by the manual signature of one of its authorized officers,
this Security shall not be entitled to any benefit under the Indenture, or be
valid or obligatory for any purpose.

     This Security shall be governed by, and construed in accordance with, the
laws of the State of New York.

                                       B-8
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated: January 17, 2001                VIACOM INC.,

                                       as Issuer

                                       By
                                         ----------------------------------

Attest:

----------------------------------
Authorized Signature

                                       B-9
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of a series referred to in the
within-mentioned Indenture.

                                            CITIBANK, N.A., as Trustee

                                            By
                                              --------------------------
                                                  Authorized Signatory
Dated: January 17, 2001

                                      B-10
<PAGE>
                     GUARANTEE OF VIACOM INTERNATIONAL INC.

     FOR VALUE RECEIVED, VIACOM INTERNATIONAL INC., a corporation duly organized
and existing under the laws of the State of Delaware (herein called the
"Guarantor", which term includes any successor corporation under the Indenture
referred to in the Security upon which this Guarantee is endorsed), hereby fully
and unconditionally guarantees to the holder of the Security upon which this
Guarantee is endorsed the due and punctual payment of the principal of and
interest (including, in case of default, interest on principal and, to the
extent permitted by applicable law, on overdue interest), if any, on this
Security, when and as the same shall become due and payable, whether at Stated
Maturity, upon redemption, upon declaration of acceleration or otherwise,
according to the terms thereof and of the Indenture referred to therein. In case
of the failure of Viacom Inc. or any successor thereto (herein called the
"Company") punctually to pay any such principal or interest, the Guarantor
hereby agrees to cause any such payment to be made punctually when and as the
same shall become due and payable, whether at Stated Maturity, upon redemption,
upon declaration of acceleration or otherwise, as if such payment were made by
the Company.

     The Guarantor hereby agrees that its obligations hereunder shall be as if
it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of the identity of the Company, the validity,
regularity or enforceability of this Security or said Indenture, the absence of
any action to enforce the same, any waiver or consent by the Holder of this
Security with respect to any provisions thereof, the recovery of any judgment
against the Company or any action to enforce the same, or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor. The Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that this Guarantee
will not be discharged except by complete performance of the obligations
contained in this Security and in this Guarantee.

     The Guarantor shall be subrogated to all rights of the Holder of this
Security against the Company in respect of any amounts paid by the Guarantor
pursuant to the provisions of this Guarantee or the Indenture referred to in
this Security; provided, however, that the Guarantor shall not be entitled to
enforce or to receive any payment arising out of, or based upon, such right of
subrogation until the principal of and interest on all Securities of the series
of which the Security upon which this Guarantee is endorsed constitutes a part
shall have been indefeasibly paid in full.

     The Indenture provides that in the event that this Guarantee would
constitute or result in a fraudulent transfer or conveyance for purposes of, or
result in a violation of, any United States federal, or applicable United States
state, fraudulent transfer or conveyance or similar law, then the liability of
the Guarantor hereunder shall be reduced to the extent necessary to eliminate
such fraudulent transfer or conveyance or violation under the applicable
fraudulent transfer or conveyance or similar law.

                                      B-11
<PAGE>
     If the Trustee or the Holder of the Security upon which this Guarantee is
endorsed is required by any court or otherwise to return to the Company or the
Guarantor, or any custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official acting in relation to the Company or the
Guarantor, any amount paid to the Trustee or such Holder in respect of the
Security upon which this Guarantee is endorsed, this Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect. The
Guarantor further agrees, to the fullest extent that it may lawfully do so,
that, as between the Guarantor, on the one hand, and the Holders and the
Trustee, on the other hand, the maturity of the obligations guaranteed hereby
may be accelerated as provided in Article Five of the Indenture for the purposes
of this Guarantee, notwithstanding any stay, injunction or other prohibition
extant under any applicable bankruptcy law preventing such acceleration in
respect of the obligations guaranteed hereby.

     This Guarantee shall be governed by, and construed in accordance with, the
laws of the State of New York.

     Subject to the next following paragraph, the Guarantor hereby certifies and
warrants that all acts, conditions and things required to be done and performed
and to have happened precedent to the creation and issuance of this Guarantee
and to constitute the same valid obligation of the Guarantor have been done and
performed and have happened in due compliance with all applicable laws.

     This Guarantee shall not be valid or become obligatory for any purpose
until the certificate of authentication on the Security upon which this
Guarantee is endorsed has been signed by the Trustee under the Indenture
referred to in this Security.

                                      B-12
<PAGE>

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be signed by
its Chairman of the Board, or its Vice Chairman of the Board, or its President,
or one of its Executive Vice Presidents or Vice Presidents, or by its Treasurer
or one of its Assistant Treasurers and attested by its Secretary or one of its
Assistant Secretaries, manually or in facsimile.

Dated: January 17, 2001                     VIACOM INTERNATIONAL INC.

                                            By
                                              --------------------------

ATTEST:
       -------------------------

                                      B-13
<PAGE>
                    EXHIBIT C TO FIFTH SUPPLEMENTAL INDENTURE

     Unless and until a Security is exchanged for an Exchange Note or sold in
connection with an effective Registration Statement pursuant to the Registration
Rights Agreement, (i) the U.S. Global Notes shall bear the legend set forth
below on the face thereof and (ii) the Offshore Global Notes shall bear the
legend set forth below on the face thereof until at least the 41st day after the
Closing Date and receipt by the Company and the Trustee of a certificate
substantially in the form of Appendix I hereto: THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT" ),
OR ANY STATE OR OTHER SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT ("RULE 144A" )), OR (B) IT IS NOT A U.S. PERSON
AND IS ACQUIRING THIS SECURITY IN AN "OFFSHORE TRANSACTION" PURSUANT TO RULE 903
OR 904 OF REGULATION S, (2) AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH SHORTER
PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR ANY PREDECESSOR OF THIS SECURITY)
AND THE LAST DATE ON WHICH VIACOM OR ANY AFFILIATE OF VIACOM WAS THE OWNER OF
THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS
MAY BE REQUIRED BY APPLICABLE LAW (THE "RESALE RESTRICTION TERMINATION DATE" )
EXCEPT (A) TO VIACOM OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A INSIDE THE
UNITED STATES, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) OUTSIDE THE UNITED STATES
PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS IN AN OFFSHORE TRANSACTION
WITHIN THE MEANING AND CONSISTENT WITH THE TERMS AND CONDITIONS OF REGULATION S
UNDER THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL
GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND; PROVIDED THAT VIACOM, THE TRUSTEE, THE TRANSFER AGENT
AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
(I) PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION REASONABLY SATISFACTORY TO

                                       C-1
<PAGE>
EACH OF THEM, AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO VIACOM AND THE TRUSTEE. THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE. AS USED HEREIN, THE TERMS "UNITED STATES," "OFFSHORE
TRANSACTION," AND "U.S. PERSON" HAVE THE RESPECTIVE MEANINGS GIVEN TO THEM BY
REGULATION S UNDER THE SECURITIES ACT.

     Each Offshore Global Note shall bear the following legend: PRIOR TO
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO A U.S. PERSON OR FOR THE ACCOUNT OR
BENEFIT OF A U.S. PERSON.

     Each Global Security shall bear the following legend: Unless this
certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Company (as defined below) or
its agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), 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.

     Any Global Security issued hereunder shall bear a legend in substantially
the following form: This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of the
Depositary or a nominee of the Depositary. This Security is exchangeable for
Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture, and may
not be transferred except as a whole by the Depositary to a nominee of the
Depositary by a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such a successor Depositary.

     Unless and until it is exchanged in whole or in part for Securities in
definitive registered form in accordance with the provisions of the Indenture
(as defined below) applicable to such exchange, this certificate may not be
transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC
to DTC or another nominee of DTC or by DTC or any such nominee to a successor
Depository or a nominee of such successor Depository.

                                       C-2
<PAGE>

                                   VIACOM INC.

                        7.875% Senior Debentures due 2030

                   Unconditionally guaranteed as to payment of
                          principal of and interest by
                            VIACOM INTERNATIONAL INC.
                   (a wholly owned subsidiary of Viacom Inc.)

No. [_]                                                          $[____________]

                                                                  CUSIP: [    ]
                                                                     CINS: [   ]
                                                                   ISIN: [     ]

     CUSIP: [ ] Viacom Inc., a Delaware corporation (herein called the
"Company", which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of $[_________] on July 30, 2030,
at the office or agency of the Company referred to below, and to pay interest
thereon on January 30, 2001 and semi-annually thereafter, on January 30 and July
30 in each year, from January 17, 2001, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, at the rate of 7.875%
per annum, until the principal hereof is paid or duly provided for. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid, in immediately available
funds, to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall, in the case of the payment of interest on
January 30, 2001, be January 17, 2001, and thereafter be the January 15 or July
15, as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date, and such defaulted interest,
may be paid to the Person in whose name this Security (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 Holders of Securities not less than 10
days prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture. Payment of the
principal of and interest on this Security will be made at the Corporate Trust
Office of the Trustee or such other office or agency of the Company as may be
designated for such purpose, 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; provided however, that each installment of interest and principal
on this Security may at the Company's option be paid in immediately available
funds by transfer to an account maintained by the payee located in the United
States.

     The statements set forth in the restrictive legends above are an integral
part of the terms of this Note and by acceptance hereof each holder of this Note
agrees to be subject to and bound by terms and provisions set forth in such
legend.

                                       C-3
<PAGE>
     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), unlimited in aggregate principal
amount, issued and to be issued in one or more series under an indenture dated
as of May 15, 1995 among the Company, Viacom International Inc., as guarantor
(the "Guarantor") and Citibank, N.A., as successor to State Street Bank and
Trust Company and The First National Bank of Boston, trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), as
supplemented by the First Supplemental Indenture dated as of May 24, 1995 among
the Company, the Guarantor and the trustee party thereto, as supplemented and
amended by the Second Supplemental Indenture and Amendment No. 1 dated as of
December 15, 1995 among the Company, the Guarantor and the trustee party
thereto, as supplemented by the Third Supplemental Indenture dated as of July
22, 1996, among the Company, the Guarantor and the trustee party thereto, as
supplemented by the Fourth Supplemental Indenture dated as of August 1, 2000
among the Company, the Guarantor and the Trustee and as further supplemented by
the Fifth Supplemental Indenture dated as of January 17, 2001 among the Company,
the Guarantor and the Trustee (as so supplemented and amended, the "Indenture"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of a series
designated as 7.875% Senior Debentures due 2030, initially limited in aggregate
principal amount to $750,000,000. This Security is a global Security
representing $[____________] of the Securities.

     INCLUDE IF SECURITY IS A GLOBAL NOTE - This Note is a "book-entry" Note and
is being registered in the name of Cede & Co. as nominee of The Depository Trust
Company ("DTC"), a clearing agency. Subject to the terms of the Indenture, this
Note will be held by a clearing agency or its nominee, and beneficial interest
will be held by beneficial owners through the book-entry facilities of such
clearing agency or its nominee in minimum denominations of $1,000 and integral
multiples thereof. As long as this Note is registered in the name of DTC or its
nominee, the Trustee will make payments of principal of and interest on this
Note by wire transfer of immediately available funds to DTC or its nominee.
Notwithstanding the above, the final payment on this Note will be made after due
notice by the Trustee of the pendency of such payment and only upon presentation
and surrender of this Note at its principal corporate trust office or such other
offices or agencies appointed by the Trustee for that purpose and such other
locations provided in the Indenture.

     The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement, dated as of January 17, 2001. In the event that (i) the
Company fails to file an Exchange Offer Registration Statement with respect to
the Notes with the Commission on or prior to the 60th calendar day following the
Closing Date, (ii) the Commission does not declare such Exchange Offer
Registration Statement effective on or prior to the 180th calendar day following
the Closing Date, (iii) the Exchange Offer is not consummated on or prior to the
45th calendar day following the effective date of the Exchange Offer
Registration Statement or (iv) if required, a Shelf Registration Statement with
respect to the Notes is not declared effective by the Commission on or prior to
the 240th calendar day following the Closing Date or ceases to be effective or
usable during the periods specified in the Registration Rights Agreement (each,
a "Registration Default"), the per annum interest rate borne by the Notes shall
be increased by one-quarter of one percent (0.25%) per annum from the end of the
applicable period giving rise

                                       C-4
<PAGE>
to such Registration Default. The interest rate borne by the Notes will be
increased by an additional one-quarter of one percent (0.25%) per annum for each
subsequent 90-day period during which any such Registration Default continues;
provided that the aggregate increase in such annual interest rate may in no
event exceed one-half of one percent (0.50%) per annum. Following the cure of
all Registration Defaults, the interest rate borne by the Notes shall be reduced
to the original interest rate borne by the Notes. No increase in the rate shall
be payable for any period during which a Shelf Registration is effective. All
accrued additional interest shall be paid to Holders by the Company in the same
manner as interest is paid pursuant to the Indenture. All terms used in this
Note that are defined in the Registration Rights Agreement shall have the
meanings assigned to them in the Registration Rights Agreement.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Securities of this series are not subject to any sinking fund and are
subject to redemption prior to maturity as set forth below.

     In the event that as a result of any change in, or amendments to, any laws
(or any regulations or rulings promulgated thereunder) of the United States (or
any political subdivision or taxing authority thereof or therein) or any change
in, or amendments to, an official position regarding the application of such
laws, regulations or rulings, which change or amendment is announced or becomes
effective thereunder after July 25, 2000, the Company has become or, based upon
a written opinion of independent counsel selected by the Company, will become
obligated to pay, with respect to this series of Securities, any Additional
Amounts, the Company may redeem all, but not less than all, the Securities of
such series at any time at 100% of the principal amount thereof, together with
accrued interest thereon, if any, to the Redemption Date (subject to the rights
of holders of record on the relevant Regular Record Date that is prior to the
Redemption Date to receive interest on the relevant Interest Payment Date).

     The Securities of this series will be redeemable at any time, at the option
of the Company, in whole or from time to time in part, upon not less than 30 nor
more than 60 days' prior notice, on any date prior to their maturity at a
Redemption Price equal to the sum of 100% of the principal amount thereof and
the Make-Whole Amount and any accrued and unpaid interest, to the Redemption
Date (subject to the rights of holders of record on the relevant Regular Record
Date that is on or prior to the Redemption Date to receive interest due on the
relevant Interest Payment Date).

     In the case of any partial redemption, selection of the Securities of this
series for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Securities of this series are listed or, if the Securities of this series are
not listed on a national securities exchange, by lot or by such other method as
the Trustee in its sole discretion shall deem to be fair and appropriate;
provided that no Securities of this series of $1,000 in principal amount or less
shall be redeemed in part. If any Note is to be redeemed in part only, the
notice of redemption relating to such Security shall state the portion of the
principal amount thereof to be redeemed. A new Security in principal amount

                                       C-5
<PAGE>
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security.

     INCLUDE IF SECURITY IS A GLOBAL SECURITY-In the event of a deposit or
withdrawal of an interest in this Note, including an exchange, transfer,
repurchase or conversion of this Note in part only, the Trustee, as custodian of
the Depository, shall make an adjustment on its records to reflect such deposit
or withdrawal in accordance with the rules and procedures of the Depositary.

     INCLUDE IF SECURITY IS A RESTRICTED SECURITY - Subject to certain
limitations in the Indenture, at any time when the Company is not subject to
Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended,
upon the request of a Holder of a Restricted Security, the Company will promptly
furnish or cause to be furnished Rule 144A Information (as defined below) to
such Holder of Restricted Securities, or to a prospective purchaser of any such
security designated by any such Holder, to the extent required to permit
compliance by any such Holder with Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). "Rule 144A Information" shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto).

     The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness of the Company on this Security and (b) certain restrictive
covenants and the related Defaults and Events of Default, upon compliance by the
Company with certain conditions set forth therein, which provisions apply to
this Security.

     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, the Guarantor and the
Trustee with the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected thereby. The
Indenture also contains provisions permitting the Holders of not less than
specified percentages in aggregate principal amount of the Outstanding
Securities of each series, on behalf of the Holders of all the Securities of
such series, to waive compliance by the Company and the Guarantor with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by or on behalf of the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security 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 Security.

     As set forth in, and subject to, the provisions of the Indenture, no Holder
of any Security of this series will have any right to institute any proceeding
with respect to the Indenture or for any remedy thereunder, unless such Holder
shall have previously given to the Trustee written notice of a continuing Event
of Default with respect to this series, the Holders of not less than 25% in
principal amount of the Outstanding Securities of this series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, and the Trustee shall not have received from the
Holders of a majority in principal amount of the Outstanding Securities of this
series a direction inconsistent with such request and shall have

                                       C-6
<PAGE>
failed to institute such proceeding within 60 days; provided however, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of or interest on this Security on or
after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security 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
Security at the times, place, and rate, and in the coin or currency, herein
prescribed.

                                       C-7
<PAGE>
     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registerable on the Security Register of
the Company, upon surrender of this Security for registration of transfer at the
office or agency of the Company maintained for such purpose in New York, New
York or at such other office or agency as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
the Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of a different authorized denomination,
as requested by the Holder surrendering the same.

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

     Prior to the time of due presentment of this Security for registration of
transfer, the Company, the Guarantor, the Trustee and any agent of the Company,
the Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the absolute owner hereof for all purposes, whether or not this
Security be overdue, and none of the Company, the Guarantor, the Trustee or any
agent of the Company, the Guarantor or the Trustee shall be affected by notice
to the contrary.

     If at any time, a Depositary is at any time unwilling or unable to continue
as Depositary and a successor Depositary is not appointed by the Company within
90 days, then the Company will execute and the Trustee will authenticate and
deliver Securities in definitive registered form, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of this
Security in exchange for this Security. Such Securities in definitive registered
form shall be registered in such names and issued in such authorized
denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Securities to the Persons in whose names such Securities are
so registered.

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

     This Security shall be governed by, and construed in accordance with, the
laws of the State of New York.

                                       C-8
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated: January 17, 2001             VIACOM INC.,

                                    as Issuer

                                    By
                                      ----------------------------------
Attest:

--------------------------
Authorized Signature

                                       C-9
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of a series referred to in the
within-mentioned Indenture.

                                          CITIBANK, N.A., as Trustee

                                          By
                                             --------------------------
                                                Authorized Signatory

Dated: January 17, 2001

                                      C-10
<PAGE>
                     GUARANTEE OF VIACOM INTERNATIONAL INC.

     FOR VALUE RECEIVED, VIACOM INTERNATIONAL INC., a corporation duly organized
and existing under the laws of the State of Delaware (herein called the
"Guarantor", which term includes any successor corporation under the Indenture
referred to in the Security upon which this Guarantee is endorsed), hereby fully
and unconditionally guarantees to the holder of the Security upon which this
Guarantee is endorsed the due and punctual payment of the principal of and
interest (including, in case of default, interest on principal and, to the
extent permitted by applicable law, on overdue interest), if any, on this
Security, when and as the same shall become due and payable, whether at Stated
Maturity, upon redemption, upon declaration of acceleration or otherwise,
according to the terms thereof and of the Indenture referred to therein. In case
of the failure of Viacom Inc. or any successor thereto (herein called the
"Company") punctually to pay any such principal or interest, the Guarantor
hereby agrees to cause any such payment to be made punctually when and as the
same shall become due and payable, whether at Stated Maturity, upon redemption,
upon declaration of acceleration or otherwise, as if such payment were made by
the Company.

     The Guarantor hereby agrees that its obligations hereunder shall be as if
it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of the identity of the Company, the validity,
regularity or enforceability of this Security or said Indenture, the absence of
any action to enforce the same, any waiver or consent by the Holder of this
Security with respect to any provisions thereof, the recovery of any judgment
against the Company or any action to enforce the same, or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor. The Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that this Guarantee
will not be discharged except by complete performance of the obligations
contained in this Security and in this Guarantee.

     The Guarantor shall be subrogated to all rights of the Holder of this
Security against the Company in respect of any amounts paid by the Guarantor
pursuant to the provisions of this Guarantee or the Indenture referred to in
this Security; provided, however, that the Guarantor shall not be entitled to
enforce or to receive any payment arising out of, or based upon, such right of
subrogation until the principal of and interest on all Securities of the series
of which the Security upon which this Guarantee is endorsed constitutes a part
shall have been indefeasibly paid in full.

     The Indenture provides that in the event that this Guarantee would
constitute or result in a fraudulent transfer or conveyance for purposes of, or
result in a violation of, any United States federal, or applicable United States
state, fraudulent transfer or conveyance or similar law, then the liability of
the Guarantor hereunder shall be reduced to the extent necessary to eliminate
such fraudulent transfer or conveyance or violation under the applicable
fraudulent transfer or conveyance or similar law.

                                      C-11
<PAGE>
     If the Trustee or the Holder of the Security upon which this Guarantee is
endorsed is required by any court or otherwise to return to the Company or the
Guarantor, or any custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official acting in relation to the Company or the
Guarantor, any amount paid to the Trustee or such Holder in respect of the
Security upon which this Guarantee is endorsed, this Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect. The
Guarantor further agrees, to the fullest extent that it may lawfully do so,
that, as between the Guarantor, on the one hand, and the Holders and the
Trustee, on the other hand, the maturity of the obligations guaranteed hereby
may be accelerated as provided in Article Five of the Indenture for the purposes
of this Guarantee, notwithstanding any stay, injunction or other prohibition
extant under any applicable bankruptcy law preventing such acceleration in
respect of the obligations guaranteed hereby.

     This Guarantee shall be governed by, and construed in accordance with, the
laws of the State of New York.

     Subject to the next following paragraph, the Guarantor hereby certifies and
warrants that all acts, conditions and things required to be done and performed
and to have happened precedent to the creation and issuance of this Guarantee
and to constitute the same valid obligation of the Guarantor have been done and
performed and have happened in due compliance with all applicable laws.

     This Guarantee shall not be valid or become obligatory for any purpose
until the certificate of authentication on the Security upon which this
Guarantee is endorsed has been signed by the Trustee under the Indenture
referred to in this Security.

                                      C-12
<PAGE>

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be signed by
its Chairman of the Board, or its Vice Chairman of the Board, or its President,
or one of its Executive Vice Presidents or Vice Presidents, or by its Treasurer
or one of its Assistant Treasurers and attested by its Secretary or one of its
Assistant Secretaries, manually or in facsimile.

Dated: January 17, 2001                         VIACOM INTERNATIONAL INC.

                                                By
                                                  -----------------------

ATTEST:
       -----------------------------

                                      C-13
<PAGE>

                   APPENDIX I TO FIFTH SUPPLEMENTAL INDENTURE

                              EXCHANGE CERTIFICATE

                                   VIACOM INC.

                           6.40% Senior Notes due 2006

                           7.70% Senior Notes due 2010

                        7.875% Senior Debentures due 2030

To:      Viacom Inc.
         1515 Broadway
         New York, NY 10036

         Citibank N.A.
         111 Wall Street, 14th Floor
         New York, NY 10005

     We, as the seller of the Notes ("Seller"), are requesting a transfer (tick
one of the following) of:

-    our beneficial interest in the [Offshore Global 2006 Senior Notes /
     Offshore Global 2010 Senior Notes / Offshore Global Senior Debentures] to a
     purchaser wanting to receive a beneficial interest in the [U.S. Global 2006
     Senior Notes / U.S. Global 2010 Senior Notes / U.S. Global Senior
     Debentures].

-    our beneficial interest in the [Offshore Global 2006 Senior Notes /
     Offshore Global 2010 Senior Notes / Offshore Global Senior Debentures] to a
     purchaser wanting to receive a definitive restricted [2006 Senior Note /
     2010 Senior Note / Senior Debenture].

-    our beneficial interest in the [Offshore Global 2006 Senior Notes /
     Offshore Global 2010 Senior Notes / Offshore Global Senior Debentures] to a
     purchaser wanting to receive a definitive [2006 Senior Note / 2010 Senior
     Note / Senior Debenture].

-    our unrestricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture]to a purchaser wanting to receive a beneficial interest in the
     [U.S. Global 2006 Senior Notes / U.S. Global 2010 Senior Notes / U.S.
     Global Senior Debentures].

-    our unrestricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive a restricted definitive [2006
     Senior Note / 2010 Senior Note / Senior Debenture].

-    our unrestricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive a beneficial interest in the
     [Offshore Global 2006 Senior Notes / Offshore Global 2010 Senior Notes /
     Offshore Global Senior Debentures].

<PAGE>
-    our unrestricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive an unrestricted definitive
     [2006 Senior Note / 2010 Senior Note / Senior Debenture].

-    our restricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive a beneficial interest in the
     [Offshore Global 2006 Senior Notes / Offshore Global 2010 Senior Notes /
     Offshore Global Senior Debentures].

-    our restricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive a beneficial interest in the
     [U.S. Global 2006 Senior Notes / U.S. Global 2010 Senior Notes / U.S.
     Global Senior Debentures].

-    our restricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive an unrestricted definitive
     [2006 Senior Note / 2010 Senior Note / Senior Debenture].

-    our restricted definitive [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] to a purchaser wanting to receive a restricted definitive [2006
     Senior Note / 2010 Senior Note / Senior Debenture].

-    our beneficial interest in the [U.S. Global 2006 Senior Notes / U.S. Global
     2011 Senior Notes / U.S. Global Senior Debentures] to a purchaser wanting
     to receive a beneficial interest in the [Offshore Global 2006 Senior Notes
     / Offshore Global 2011 Senior Notes / Offshore Global Senior Debentures].

-    our beneficial interest in the [Offshore Global 2006 Senior Notes /
     Offshore Global 2011 Senior Notes / Offshore Global Senior Debentures] to a
     purchaser wanting to receive a restricted definitive [2006 Senior Note /
     2010 Senior Note / Senior Debenture].

-    our beneficial interest in the [U.S. Global 2006 Senior Notes / U.S. Global
     2011 Senior Notes / U.S. Global Senior Debentures] to a purchaser wanting
     to receive an unrestricted definitive [2006 Senior Note / 2010 Senior Note
     / Senior Debenture].

     In connection with such request, and in respect of such Securities, we, as
the Seller do hereby certify that such Securities are being transferred in
accordance with the transfer restrictions set forth in the offering memorandum
prepared in connection with the issuance of the Securities and the Securities
and that we are transferring such Securities (tick one of the following):

-    to a person who the Seller reasonably believes is purchasing for its own
     account or accounts as to which it exercises sole investment discretion;
     such person and each such

                                      I-ii
<PAGE>
     account is a "qualified institutional buyer" (as defined in Rule 144A of
     the United States Securities Act of 1933, as amended (the "Securities
     Act")); the purchaser is aware that the sale to it is being made in
     reliance upon Rule 144A; and such transaction meets the requirements of
     Rule 144A and is in accordance with any applicable securities laws of any
     state of the United States or any other jurisdiction, or

-    in accordance with Regulation S under the Securities Act, and accordingly
     the Seller does hereby certify that:

               (i) the offer of the Securities was not made to a person in the
          United States;

               [(ii) at the time the buy order was originated, the Buyer was
          outside of the United States or the Seller or any person acting on its
          behalf reasonably believed that the Buyer was outside the United
          States;](1)

               [(ii) the transaction was executed in, or on or through the
          facilities of a designated offshore securities market and neither the
          Seller nor any person acting on its behalf knows that the transaction
          was prearranged with a Buyer in the United States;](1)

               (iii) no directed selling efforts have been made in contravention
          of the requirements of Rule 903(b) or 904(b) of Regulation S, as
          applicable;

               (iv) the transaction is not part of a plan or scheme to evade the
          registration requirements of the Securities Act; and

               (v) with regard to transfers occurring within the 40-Day
          Restricted Period, any beneficial interest in [Offshore Global 2006
          Senior Notes / Offshore Global 2011 Senior Notes / Offshore Global
          Senior Debentures] shall be held through either Euroclear or
          Clearstream, Luxembourg.

-    other than in accordance with the above and documents are being furnished
     to the Company and the Registrar which comply with the conditions of
     transfer set forth in the [2006 Senior Note / 2010 Senior Note / Senior
     Debenture] and the relevant agreements.

If none of the foregoing boxes are ticked, the Registrar shall not be obliged to
register the transfer of the [2006 Senior Note / 2010 Senior Note / Senior
Debenture].

Reference is hereby made to the Fifth Supplemental Indenture dated as of January
17, 2001, among Viacom Inc.(the "Company"), Viacom International Inc. (the
"Guarantor") and Citibank, N.A. to the Indenture dated as of May 15, 1995, among
the Company, the Guarantor and the trustee party thereto, as supplemented by the
First Supplemental Indenture, dated as of May 24, 1995, among the Company, the
Guarantor and the trustee party thereto, as supplemented and amended by the
Second Supplemental Indenture and Amendment No. 1, dated as of December 15,
1995, among the Company, the Guarantor and the trustee party thereto, as
supplemented by the Third Supplemental Indenture, dated as of July 22, 1996,
among the Company, the Guarantor

                                      I-iii
<PAGE>
and the trustee party thereto and as further supplemented by the Fourth
Supplemental Indenture, dated as of August 1, 2000 among the Company, the
Guarantor and the Trustee (as so amended, the "Indenture"). Terms used but not
defined herein shall have the meanings given to them in the Indenture. Other
terms shall have the meanings given to them in Regulation S.

[NAME OF SELLER]

By:
    --------------------------------
      Name of Seller

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

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

(1)   Include only one of alternative paragraphs (ii) as appropriate.

                                      I-iv
<PAGE>

                                FORM OF TRANSFER

FOR VALUE RECEIVED, the undersigned hereby transfers to

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

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

                     (PRINT NAME AND ADDRESS OF TRANSFEREE)

U.S.$_______ principal amount of this Security, and all rights with respect
thereto, and irrevocably constitutes and appoints __________________ as attorney
to transfer this Security on the books kept for registration thereof, with full
power of substitution.

Dated
       ---------------------------             ------------------------------
                                               Certifying Signature

Signed
       ---------------------------

Note:

     (i) The signature on this transfer form must correspond to the name as it
     appears on the face of this Security.

     (ii) A representative of the holder of this Security should state the
     capacity in which he or she signs (e.g., executor).

     (iii) The signature of the person effecting the transfer shall conform to
     any list of duly authorized specimen signatures supplied by the registered
     holder or shall be certified by a recognized bank, notary public or in such
     other manner as the paying agent, acting in its capacity as transfer agent
     or the Trustee, acting in its capacity as registrar, may require.

                                       I-v

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