Document:

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                                                                     EXHIBIT 4.2

                                                                          [FORM]

                             CONOCO FUNDING COMPANY

                              5.45% Notes due 2006
                              6.35% Notes due 2011
                              7.25% Notes due 2031

                     Fully and Unconditionally Guaranteed by

                                   CONOCO INC.

         Three series of Securities are hereby established pursuant to Section
2.01 of the Indenture dated as of October 11, 2001 (the "Indenture") between
Conoco Funding Company (the "Company"), Conoco Inc. and Bank One, N.A., as
trustee (the "Trustee"), as follows:

         1. Each capitalized term used but not defined herein shall have the
meaning assigned to such term in the Indenture.

         2. The title of the 5.45% Notes due 2006 shall be "5.45% Notes due
2006" (the "2006 Notes"), the title of the 6.35% Notes due 2011 shall be "6.35%
Notes due 2011" (the "2011 Notes") and the title of the 7.25% Notes due 2031
shall be "7.25% Notes due 2031" (the "2031 Notes" and, together with the 2006
Notes and the 2011 Notes, the "Notes").

         3. The limit upon the aggregate principal amount of the 2006 Notes, the
2011 Notes and the 2031 Notes that may be authenticated and delivered under the
Indenture (except for Notes of such series authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes of
such series pursuant to Section 2.08, 2.09, 2.12, 2.17, 3.07 or 9.05 of the
Indenture and except for any Notes of such series which, pursuant to Section
2.04 or 2.17 of the Indenture, are deemed never to have been authenticated and
delivered thereunder) is $1,250,000,000, $1,750,000,000 and $500,000,000,
respectively; provided, however, that the authorized aggregate principal amount
of the 2011 Notes and the 2031 Notes may be increased before or after the
issuance of any Notes of such series until October 12, 2006 and October 12,
2026, respectively, by a Board Resolution (or action pursuant to a Board
Resolution) to such effect.

         4. The Notes shall be issued as permanent Global Securities under the
Indenture. The Depository Trust Company and the Trustee are hereby designated as
the Depositary and the Security Custodian, respectively, for the Global
Securities under the Indenture.

         5. The date on which the principal of the 2006 Notes, the 2011 Notes
and the 2031 Notes is payable shall be October 15, 2006, October 15, 2011 and
October 15, 2031, respectively.

         6. The rate at which the 2006 Notes shall bear interest shall be 5.45%
per annum, the rate at which the 2011 Notes shall bear interest shall be 6.35%
per annum and the rate at which the 2031 Notes shall bear interest shall be
7.25% per annum. Interest shall be

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computed on the basis of a 360-day year of twelve 30-day months. No Additional
Amounts with respect to the Notes shall be payable. The date from which interest
shall accrue for the Notes of each series shall be October 11, 2001. The
Interest Payment Dates on which such interest shall be payable shall be April 15
and October 15 of each year, commencing April 15, 2002. The record dates for the
interest payable on the Notes on any Interest Payment Date shall be the April 1
and October 1, as the case may be, next preceding such Interest Payment Date.

         7. The place or places where the principal of, premium (if any) on and
interest on the Notes shall be payable shall be the office or agency of the
Company maintained for that purpose, initially the office of the Trustee, in The
City of New York, and any other office or agency maintained by the Company for
such purpose. Payments in respect of Notes evidenced by a Global Security
(including principal, premium, if any, and interest) shall be made by wire
transfer of immediately available funds to the accounts specified by the Holder
of such Notes. In all other cases, at the option of the Company, payment of
interest may be made by check mailed to the address of the person entitled
thereto as such address shall appear in the register of the Notes maintained by
the Registrar.

         8. The Paying Agent and Registrar for the Notes of each series
initially shall be the Trustee. In addition, as long as the Notes of any series
are listed on the Luxembourg Stock Exchange, the Company shall maintain a Paying
Agent and Registrar for the Notes of such series in Luxembourg, which initially
shall be Kredietbank S.A. Luxembourg.

         9. The Notes of each series are subject to redemption and repayment, in
whole or in part, at any time and from time to time, at the option of the
Company, upon not less than 30 nor more than 60 days' prior notice as provided
in the Indenture, at a Redemption Price equal to the sum of (i) 100% of the
principal amount of the Notes of such series to be redeemed and repaid and (ii)
the amount, if any, by which the sum of the present values of the Remaining
Scheduled Payments thereon, discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate plus 25 basis points for the 2006 Notes, 30 basis points for the
2011 Notes and 35 basis points for the 2031 Notes, exceeds the principal amount
of the Notes to be redeemed and repaid, in each case plus accrued and unpaid
interest thereon to the Redemption Date.

         "Treasury Rate" means, with respect to any Redemption Date, the rate
per annum equal to (i) the yield, under the heading which represents the average
for the immediately preceding week, appearing in the most recently published
statistical release designated "H.15(519)" or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and
which establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption "Treasury Constant Maturities,"
for the maturity corresponding to the Comparable Treasury Issue; provided that
if no maturity is within three months before or after the Stated Maturity for
the applicable series of Notes, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be determined and
the Treasury Rate will be interpolated or extrapolated from such yields on a
straight-line basis rounding to the nearest month; or (ii) if such release (or
any successor release) is not published during the week preceding such
calculation date or does not contain such yields, the rate per annum equal to
the semiannual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for

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such Redemption Date. The Treasury Rate shall be calculated on the third
Business Day preceding such Redemption Date.

         "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the applicable series of Notes.

         "Independent Investment Banker" means one of the Reference Treasury
Dealers appointed by the Company.

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Quotations.

         "Reference Treasury Dealer" means each of Credit Suisse First Boston
Corporation (and its successors), J.P. Morgan Securities Inc. (and its
successors) and Salomon Smith Barney Inc. (and its successors) and one other
nationally recognized investment banking firm that is a Primary Treasury Dealer
specified from time to time by the Company; provided, however, that if any of
the foregoing shall cease to be a primary U.S. Government securities dealer (a
"Primary Treasury Dealer"), the Company shall substitute therefor another
nationally recognized investment banking firm that is a Primary Treasury Dealer.

         "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer as of 3:30 p.m., New
York time, on the third Business Day preceding such Redemption Date.

         "Remaining Scheduled Payments" means, with respect to each Note to be
redeemed and repaid, the remaining scheduled payments of the principal thereof
and interest thereon that would be due after the related Redemption Date but for
such redemption and repayment; provided, however, that, if such Redemption Date
is not an Interest Payment Date with respect to such Note, the amount of the
next succeeding scheduled interest payment thereon will be reduced by the amount
of interest accrued thereon to such Redemption Date.

         10. The Company shall have no obligation to redeem, purchase or repay
Notes pursuant to any sinking fund or analogous provision or at the option of a
Holder thereof.

         11. The Notes and the Trustee's certificate of authentication shall be
substantially in the form of Annex A hereto (the "Form of Note").

         12. Each Note that is a Global Security shall bear the legend set forth
on the face of the Form of Note.

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                                                                         Annex A

                               [FACE OF SECURITY]

                             CONOCO FUNDING COMPANY

        [5.45% NOTE DUE 2006] [6.35% NOTE DUE 2011] [7.25% NOTE DUE 2031]

                     FULLY AND UNCONDITIONALLY GUARANTEED BY

                                   CONOCO INC.

                                                          CUSIP No._____________

No.____________                                                   $_____________

         Conoco Funding Company, an unlimited liability company incorporated
under the laws of Nova Scotia, Canada (the "Company," which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, promises to pay to ____________ or registered assigns, the principal
sum of ___________________________Dollars [, or such greater or lesser amount as
indicated on the Schedule of Exchanges of Securities hereto,](1) on October 15,
[2006] [2011] [2031].

         Interest Payment Dates:            April 15 and October 15

         Record Dates:                      April 1 and October 1

                  Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

--------
  (1)    This phrase to be included only if the Security is a Global Security.

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         IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officers and its corporate seal
or a facsimile thereof to be affixed hereto or imprinted hereon.

Dated:

[SEAL]                                 CONOCO FUNDING COMPANY

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       By:
                                          -----------------------------------
                                          Name:
                                          Title:

                                    GUARANTEE

         Conoco Inc., a Delaware corporation formerly incorporated under the
name Conoco Energy Company, unconditionally guarantees to the holder of this
Security, upon the terms and subject to the conditions set forth in the
Indenture referenced on the reverse hereof, (a) the full and prompt payment of
the principal of and any premium on this Security when and as the same shall
become due, whether at the stated maturity thereof, by acceleration, redemption
or otherwise, and (b) the full and prompt payment of interest on this Security
when and as the same shall become due, subject to any applicable grace period.

                                       CONOCO INC.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

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Certificate of Authentication:

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

BANK ONE, N.A., as Trustee

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

         [Unless and until it is exchanged in whole or in part for Securities in
definitive form, this Security may not be transferred except as a whole by the
Depositary to a nominee of the Depositary or 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 successor
Depositary. The Depository Trust Company (55 Water Street, New York, New York),
a New York corporation ("DTC"), shall act as the Depositary until a successor
shall be appointed by the Company and the Registrar. Unless this certificate is
presented by an authorized representative of DTC to the issuer or its agent for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in 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.] (2)

---------
  (2)   This paragraph to be included only if the Security is a Global Security.

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                              [REVERSE OF SECURITY]

                             CONOCO FUNDING COMPANY

        [5.45% NOTE DUE 2006] [6.35% NOTE DUE 2011] [7.25% NOTE DUE 2031]

                     FULLY AND UNCONDITIONALLY GUARANTEED BY

                                   CONOCO INC.

         This Security is one of a duly authorized issue of [5.45% Notes due
2006] [6.35% Notes due 2011] [7.25% Notes due 2031] (the "Securities") of Conoco
Funding Company, an unlimited liability company incorporated under the laws of
Nova Scotia, Canada (the "Company").

         1. Interest. The Company promises to pay interest on the principal
amount of this Security at [5.45] [6.35] [7.25]% per annum from October 11, 2001
until maturity. The Company will pay interest semiannually on April 15 and
October 15 of each year (each an "Interest Payment Date"), or if any such day is
not a Business Day, on the next succeeding Business Day. Interest on the
Securities will accrue from the most recent Interest Payment Date on which
interest has been paid or, if no interest has been paid, from October 11, 2001;
provided that if there is no existing Default in the payment of interest, and if
this Security is authenticated between a record date referred to on the face
hereof (each, a "Record Date") and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date; provided,
further, that the first Interest Payment Date shall be April 15, 2002. The
Company shall pay interest on overdue principal and premium (if any) from time
to time at a rate equal to the interest rate then in effect; it shall pay
interest on overdue installments of interest (without regard to any applicable
grace periods) from time to time at the same rate to the extent lawful. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day
months.

         2. Guarantee. Conoco Inc., a Delaware corporation formerly incorporated
under the name Conoco Energy Company (the "Guarantor"), unconditionally
guarantees to the Holders from time to time of the Securities, upon the terms
and subject to the conditions set forth in the Indenture (as defined below), (a)
the full and prompt payment of the principal of and any premium on the
Securities when and as the same shall become due, whether at the Stated Maturity
thereof, by acceleration, redemption or otherwise, and (b) the full and prompt
payment of any interest on the Securities when and as the same shall become due,
subject to any applicable grace period. Each and every default in the payment of
the principal of, premium (if any) and interest on the Securities shall give
rise to a separate cause of action under the Indenture, and separate suits may
be brought thereunder as each cause of action arises. The Guarantee constitutes
a guarantee of payment and not of collection. In the event of a default in the
payment of principal of or any premium on the Securities when and as the same
shall become due, whether at the Stated Maturity thereof, by acceleration, call
for redemption and repayment or otherwise, or in the event of a default in the
payment of any interest on the Securities when and as the same shall become due,
each of the Trustee and the Holders of the Securities shall have the right to
proceed first and directly against the Guarantor under the Indenture without
first

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proceeding against the Company or exhausting any other remedies which the
Trustee or such Holder may have and without resorting to any other security held
by it.

         3. Method of Payment. The Company will pay interest on the Securities
(except defaulted interest) to the Persons who are registered Holders of
Securities at the close of business on the Record Date next preceding the
Interest Payment Date, even if such Securities are canceled after such Record
Date and on or before such Interest Payment Date. The Holder must surrender this
Security to a Paying Agent to collect principal payments. The Company will pay
the principal of, premium (if any) on and interest on the Securities in money of
the United States of America that at the time of payment is legal tender for
payment of public and private debts. Such amounts shall be payable at the
offices of the Trustee (as defined below), provided that at the option of the
Company, the Company may pay such amounts (1) by wire transfer with respect to
Global Securities or (2) by check payable in such money mailed to a Holder's
registered address with respect to any Securities.

         4. Paying Agent and Registrar. Initially, Bank One, N.A. (the
"Trustee"), the trustee under the Indenture, will act as Paying Agent and
Registrar. In addition, as long as the Securities are listed on the Luxembourg
Stock Exchange, the Company shall maintain a Paying Agent and Registrar for the
Securities in Luxembourg, which initially shall be Kredietbank S.A. Luxembourg.
The Company may change any Paying Agent, Registrar, co-registrar or additional
paying agent without notice to any Holder. The Company, the Guarantor or any
Subsidiary of the Guarantor may act in any such capacity.

         5. Indenture. The Company issued the Securities under an Indenture
dated as of October 11, 2001 (the "Indenture") between the Company, the
Guarantor and the Trustee. The terms of the Securities include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) (the "TIA"),
as in effect on the date of execution of the Indenture. The Securities are
subject to all such terms, and Holders are referred to the Indenture and the TIA
for a statement of such terms and for the definitions of capitalized terms used
but not defined herein. The Securities are unsecured general obligations of the
Company limited to $[1,250,000,000] [1,750,000,000] [500,000,000] in aggregate
principal amount [; provided, however, that the authorized aggregate principal
amount of the Securities may be increased before or after the issuance of any
Securities until October 12, [2006] [2026] by a Board Resolution (or action
pursuant to a Board Resolution) to such effect]. The Indenture provides for the
issuance of other series of debt securities (including the Securities, the "Debt
Securities") thereunder.

         6. Denominations, Transfer, Exchange. The Securities are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Securities may be registered and Securities may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. Neither the Company, the Trustee nor the Registrar shall be
required to register the transfer or exchange of (a) any Security selected for
redemption and repayment in whole or in part, except the unredeemed portion of
any Security being redeemed and repaid in part, or (b) any Security during the
period beginning 15 Business Days before the mailing of notice of redemption of
Securities to be redeemed and repaid and ending at the close of business on the
date of mailing.

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         7. Persons Deemed Owners. The registered Holder of a Security shall be
treated as its owner for all purposes.

         8. Redemption. The Securities are subject to redemption and repayment,
in whole or in part, at any time and from time to time, at the option of the
Company, upon not less than 30 nor more than 60 days' prior notice as provided
in the Indenture, at a Redemption Price equal to the sum of (i) 100% of the
principal amount of the Securities to be redeemed and repaid and (ii) the
amount, if any, by which the sum of the present values of the Remaining
Scheduled Payments thereon, discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate plus [25] [35] [45] basis points, exceeds the principal amount of
the Securities to be redeemed and repaid, plus accrued and unpaid interest
thereon to the Redemption Date.

         "Treasury Rate" means, with respect to any Redemption Date, the rate
per annum equal to (i) the yield, under the heading which represents the average
for the immediately preceding week, appearing in the most recently published
statistical release designated "H.15(519)" or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and
which establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption "Treasury Constant Maturities,"
for the maturity corresponding to the Comparable Treasury Issue; provided that
if no maturity is within three months before or after the Stated Maturity for
the Securities, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue will be determined and the
Treasury Rate will be interpolated or extrapolated from such yields on a
straight-line basis rounding to the nearest month; or (ii) if such release (or
any successor release) is not published during the week preceding such
calculation date or does not contain such yields, the rate per annum equal to
the semiannual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date. The Treasury Rate shall be calculated on the third
Business Day preceding such Redemption Date.

         "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the Securities.

         "Independent Investment Banker" means one of the Reference Treasury
Dealers appointed by the Company.

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Quotations.

         "Reference Treasury Dealer" means each of Credit Suisse First Boston
Corporation (and its successors), J.P. Morgan Securities Inc. (and its
successors) and Salomon Smith Barney Inc. (and its successors) and one other
nationally recognized investment banking

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firm that is a Primary Treasury Dealer specified from time to time by the
Company; provided, however, that if any of the foregoing shall cease to be a
primary U.S. Government securities dealer (a "Primary Treasury Dealer"), the
Company shall substitute therefor another nationally recognized investment
banking firm that is a Primary Treasury Dealer.

         "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer as of 3:30 p.m., New
York time, on the third Business Day preceding such Redemption Date.

         "Remaining Scheduled Payments" means, with respect to each Security to
be redeemed and repaid, the remaining scheduled payments of the principal
thereof and interest thereon that would be due after the related Redemption Date
but for such redemption and repayment; provided, however, that, if such
Redemption Date is not an Interest Payment Date with respect to such Security,
the amount of the next succeeding scheduled interest payment thereon will be
reduced by the amount of interest accrued thereon to such Redemption Date.

         9. Amendments and Waivers. Subject to certain exceptions and
limitations, the Indenture or the Securities may be amended or supplemented with
the consent of the Holders of at least a majority in principal amount of the
then outstanding Debt Securities of all series affected by such amendment or
supplement (acting as one class), and any existing or past Default or Event of
Default under, or compliance with any provision of, the Indenture may be waived
(other than any continuing Default or Event of Default in the payment of the
principal of, premium (if any) on or interest on the Securities) by the Holders
of at least a majority in principal amount of the then outstanding Debt
Securities of any series or of all series (acting as one class) in accordance
with the terms of the Indenture. Without the consent of any Holder, the Company,
the Guarantor and the Trustee may amend or supplement the Indenture or the
Securities or waive any provision of either: (i) to cure any ambiguity,
omission, defect or inconsistency; (ii) to provide for the assumption of (a) the
obligations of the Company under the Indenture to Holders in the case of the
assignment or transfer of the rights and obligations of the Company thereunder
or (b) the obligations of the Guarantor under the Indenture, including the
performance of the Guarantee, in the case of the merger, consolidation or sale,
lease, conveyance, transfer or other disposition of all or substantially all of
the assets of the Guarantor; (iii) to provide for uncertificated Securities in
addition to or in place of certificated Securities or to provide for the
issuance of bearer Securities (with or without coupons); (iv) to provide any
security for, or to add guarantees of, the Securities or the Guarantee; (v) to
comply with any requirement in order to effect or maintain the qualification of
the Indenture under the TIA; (vi) to add to the covenants of the Company or the
Guarantor for the benefit of the Holders of the Securities, or to surrender any
right or power conferred by the Indenture upon the Company or the Guarantor;
(vii) to add any additional Events of Default with respect to all or any series
of the Debt Securities; (viii) to change or eliminate any of the provisions of
the Indenture, provided that no outstanding Security is adversely affected in
any material respect; (ix) to supplement any of the provisions of the Indenture
to such extent as shall be necessary to permit or facilitate the defeasance and
discharge of the Securities pursuant to the Indenture; or (x) to evidence and
provide for the acceptance of appointment under the Indenture by a successor
Trustee with respect to the Securities and to add to or change any of the
provisions of the Indenture as shall be

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<PAGE>   11

necessary to provide for or facilitate the administration of the trusts
thereunder by more than one Trustee, pursuant to the requirements of the
Indenture.

         The right of any Holder to participate in any consent required or
sought pursuant to any provision of the Indenture (and the obligation of the
Company or the Guarantor to obtain any such consent otherwise required from such
Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of any Securities with respect to which such consent is
required or sought as of a date identified by the Company or the Guarantor in a
notice furnished to Holders in accordance with the terms of the Indenture.

         Without the consent of each Holder affected, the Company may not (i)
reduce the amount of Debt Securities whose Holders must consent to an amendment,
supplement or waiver; (ii) reduce the rate of or change the time for payment of
interest, including default interest, on any Security; (iii) reduce the
principal of or premium on, or change the Stated Maturity of, any Security; (iv)
reduce the premium, if any, payable upon the redemption of any Security or
change the time at which any Security may or shall be redeemed; (v) change the
coin or currency in which any Security or any premium or interest with respect
thereto is payable; (vi) impair the right to institute suit for the enforcement
of any payment of principal of or premium (if any) or interest on any Security,
except as provided in the Indenture; (vii) make any change in the percentage of
principal amount of Debt Securities necessary to waive compliance with certain
provisions of the Indenture or make any change in the provision for
modification; (viii) waive a continuing Default or Event of Default in the
payment of principal of or premium (if any) or interest on the Securities; or
(ix) modify or affect the obligations of the Guarantor under the Guarantee in
any manner adverse to the Holders.

         A supplemental indenture that changes or eliminates any covenant or
other provision of the Indenture which has expressly been included solely for
the benefit of one or more particular series of Debt Securities under the
Indenture, or which modifies the rights of the Holders of Debt Securities of
such series with respect to such covenant or other provision, shall be deemed
not to affect the rights under the Indenture of the Holders of Debt Securities
of any other series.

         10. Defaults and Remedies. Events of Default are defined in the
Indenture and generally include: (i) default for 30 days in payment of any
interest on the Securities; (ii) default in any payment of principal of or
premium, if any, on the Securities when due and payable; (iii) default by the
Company or the Guarantor in compliance with any of their respective other
covenants or agreements in, or provisions of, the Securities or in the Indenture
which shall not have been remedied within 90 days after written notice by the
Trustee or by the holders of at least 25% in principal amount of the Securities
then outstanding (or, in the event that other Debt Securities issued under the
Indenture are also affected by the default, then 25% in principal amount of all
outstanding Debt Securities so affected); or (iv) certain events involving
bankruptcy, insolvency or reorganization of the Company or the Guarantor. If an
Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Securities of the series
affected by such default (or, in the case of an Event of Default described in
clause (iii) above, if outstanding Debt Securities of other series are affected
by such Default, then at least 25% in principal amount of the then outstanding
Debt Securities so affected), may declare the principal of and interest on all
the Securities (or such Debt Securities) to be immediately due and payable,
except that in the case of an Event of

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<PAGE>   12

Default arising from certain events of bankruptcy, insolvency or reorganization
of the Company or the Guarantor, all outstanding Debt Securities under the
Indenture become due and payable immediately without further action or notice.
The amount due and payable upon the acceleration of any Security is equal to
100% of the principal amount thereof plus accrued interest to the date of
payment. Holders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may require indemnity reasonably
satisfactory to it before it enforces the Indenture or the Securities. Subject
to certain limitations, Holders of a majority in principal amount of the then
outstanding Securities (or affected Debt Securities) may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from Holders notice
of any continuing default (except a default in payment of principal, premium or
interest) if it determines that withholding notice is in their interests. The
Company and the Guarantor must furnish annual compliance certificates to the
Trustee.

         11. Discharge Prior to Maturity. The Indenture with respect to the
Securities shall be discharged and canceled upon the payment of all of the
Securities and shall be discharged except for certain obligations upon the
irrevocable deposit with the Trustee of funds or U.S. Government Obligations
sufficient for such payment.

         12. Trustee Dealings with Company and Guarantor. The Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities
and may make loans to, accept deposits from, and perform services for the
Company, the Guarantor or any of their respective Affiliates, and may otherwise
deal with the Company, the Guarantor or any such Affiliates, as if it were not
Trustee.

         13. No Recourse Against Others. A director, officer, employee,
stockholder, partner or other owner of the Company, the Guarantor or the
Trustee, as such, shall not have any liability for any obligations of the
Company under the Securities, for any obligations of the Guarantor under the
Guarantee or for any obligations of the Company, the Guarantor or the Trustee
under the Indenture or for any claim based on, in respect of or by reason of
such obligations or their creation. Each Holder by accepting a Security waives
and releases all such liability. The waiver and release shall be part of the
consideration for the issue of Securities.

         14. Authentication. This Security shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

         15. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Securities as a convenience to the Holders of
the Securities. No representation is made as to the accuracy of such numbers as
printed on the Securities and reliance may be placed only on the other
identification numbers printed thereon.

         16. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

                                      AA-9
<PAGE>   13

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Request may be made to:

         Conoco Funding Company
         c/o Conoco Inc.
         600 North Dairy Ashford
         Houston, Texas 77079
         Telephone:  (281) 293-2648
         Attention:  Capital Markets

                                     AA-10
<PAGE>   14

                     SCHEDULE OF EXCHANGES OF SECURITIES(3)

         The following exchanges of a part of this Global Security for other
Securities have been made:

<Table>
<Caption>
                                                                              Principal Amount
                               Amount of                 Amount of             of this Global           Signature of
                              Decrease in               Increase in          Security Following      Authorized Officer
                           Principal Amount          Principal Amount           Such Decrease           of Trustee or
 Date of Exchange       of this Global Security   of this Global Security       (or Increase)        Security Custodian
-----------------      ------------------------  ------------------------     -------------          ------------------
<S>                    <C>                       <C>                          <C>                    <C>

</Table>

-------
  (3)    This schedule to be included only if the Security is a Global Security.

                                     AA-11
<PAGE>   15

                                 ASSIGNMENT FORM

         To assign this Security, fill in the form below: (I) or (we) assign and
transfer this Security to

--------------------------------------------------------------------------------
             (Insert assignee's social security or tax I.D. number)

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
as agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.

Date:                        Your Signature:
      -------------------                  -------------------------------------
                                           (Sign exactly as your name appears on
                                                the face of this Security)

Signature Guarantee:
                    ------------------------------------------------------------
                           (Participant in a Recognized Signature
                                  Guaranty Medallion Program)

                                     AA-12<PAGE>   1

                                                                    EXHIBIT 4.8

                                   CONOCO INC.
                      2001 GLOBAL PERFORMANCE SHARING PLAN

               (AS AMENDED AND RESTATED EFFECTIVE OCTOBER 8, 2001)

                                    RECITALS

                  Conoco Inc. ("Conoco") established the Conoco Inc. 2001 Global
Performance Sharing Plan (the "Plan") effective February 23, 2001. Paragraph 5
specifies that awards may be granted under the Plan with respect to Conoco Class
B Common Stock. Paragraph 12 reserves to Conoco and the Committee the right to
amend the Plan. Paragraph 14 provides that Employee Awards may be assumed by
means of substitution of new Employee Awards in the event of certain corporate
transactions, including a reorganization.

                  Conoco intends to reclassify its Class A Common Stock and
Class B Common Stock into a single class of new common stock ("Common Stock") by
merging Conoco Delaware I, Inc., a wholly owned subsidiary of the Conoco
("Merger Sub"), with and into Conoco (the "Merger"), pursuant to an Agreement
and Plan of Merger, dated as of July 17, 2001, between the Company and Merger
Sub. In connection with the Merger and pursuant to their authority under
Paragraph 12, the Board has authorized this amendment and restatement of the
Plan to provide for the issuance of awards with respect to the new class of
Common Stock, such amendment and restatement to become effective upon the
effective time of the Merger (October 8, 2001). In addition, in connection with
the Merger and effective upon the effective time thereof, pursuant to Paragraph
14, a new Employee Award will be substituted for each previously issued
outstanding Employee Award. The new Employee Award will apply to a number of
shares of Common Stock equal to the total number of shares of Class B Common
Stock for which the previously issued outstanding Employee Award has not been
exercised, and shall provide for the same exercise price and the same other
terms and conditions as those applicable under the previously issued outstanding
Employee Award. In respect of Approved Stock Options granted under Addendum B
prior to the date of Merger, shares of Common Stock will be issued in lieu of
Class B Common Stock on exercise of the option and, for the avoidance of doubt,
a new Employee Award will not be substituted.

                  Now, therefore, Conoco hereby amends and restates the Plan,
effective as set forth in paragraph 20 hereof, to read as follows:

         1. Plan. The Plan was adopted by Conoco to provide certain employees of
Conoco with an option to purchase shares of common stock of Conoco.

         2. Purpose. The Plan is a broad-based, nonqualified stock option plan
designed to provide additional financial incentives for certain employees of
Conoco; to encourage a sense of proprietorship in such employees; to retain such
employees; and to stimulate the active interest of such employees in the
development and financial success of Conoco and its subsidiaries. These
objectives are accomplished by granting employees options to purchase Common
Stock and

                                      -1-
<PAGE>   2

thereby providing the grantees with a proprietary interest in the growth and
performance of Conoco and its subsidiaries.

         3. Definitions and Construction. The provisions of this Plan are entire
and complete, except as may otherwise be set forth in any addendum attached
hereto and incorporated herein, intended to address particular legal, tax,
securities, or administrative requirements or restrictions in designated
Participating Countries. In any necessary construction of a provision of this
Plan, the masculine gender may include the feminine and or neuter, and the
singular may include the plural, and vice versa. This Plan should be construed
in a manner consistent with the intent of Conoco to establish a nonqualified
stock option plan subject to fixed accounting treatment. As used herein,
capitalized terms shall have the following respective meanings:

                  Applicable Exchange Rate means such exchange rate as from time
         to time determined by the Committee or its delegate in its discretion.

                  Beneficiary means the individual or trust defined by or
         designated as the Participant's Beneficiary in accordance with
         paragraph 15 hereof. If no Beneficiary is designated, then the
         Beneficiary shall be determined as prescribed by governing law.

                  Board means the Board of Directors of Conoco.

                  Code means the U.S. Internal Revenue Code of 1986, as amended
         from time to time.

                  Committee means the Compensation Committee of the Board or
         such other committee of the Board as is designated by the Board to
         administer the Plan.

                  Common Stock means the Common Stock, par value $.01 per share,
         of Conoco.

                  Conoco means Conoco Inc. or any successors thereto.

                  Employee means any employee of a Participating Employer who is
         classified as a regular, full- or part-time employee, including such
         individuals who are regular, full- or part-time employees but who are
         on an approved paid leave of absence. Employee does not mean any
         individual who is not classified by a Participating Employer as a
         regular, full- or part-time employee, including temporary employees
         (whether full- or part-time), an employee on unpaid or unapproved leave
         of absence, casual workers and contract workers. Employees whose
         employment is the subject of collective bargaining shall not be
         considered Employees eligible to participate unless the terms of such
         bargaining agreement specifically provide for grants hereunder.
         Notwithstanding the foregoing, an individual who is not an "Employee"
         under this definition may nonetheless receive an Employee Award under
         this Plan if the Committee determines that governing law requires the
         individual to receive an Employee Award.

                                      -2-
<PAGE>   3

                  Employee Award means the right to purchase a specified number
         of shares of Common Stock at a specified price pursuant to such
         applicable terms, conditions and limitations as the Committee may
         establish in order to fulfill the objectives of this Plan which is
         granted by a Participating Employer to an Employee. All awards granted
         herein are nonqualified stock options except that an equivalent number
         of SARs shall be granted to Employees when applicable law makes the
         grant of options impractical, as determined by the Committee in its
         sole discretion.

                  Employee Award Agreement means a written statement setting
         forth the terms, conditions and limitations applicable to an Employee
         Award, including the number of shares granted, the Grant Price, the
         Grant Date, the length of any applicable vesting period, the dates when
         Participants will first be able to exercise an Employee Award, the
         conditions upon which an Employee Award must be forfeited or
         surrendered, the permissible exercise methods and an explanation of the
         treatment of an unexercised Employee Award at the expiration of the
         exercise period. This notice shall be communicated to Participants
         within a reasonable time following the determination of the Employee
         Awards by the Committee.

                  Fair Market Value of a share of Common Stock means, as of a
         particular date, the mean between the highest and lowest sales price
         per share of Common Stock on the consolidated transaction reporting
         system for the principal national securities exchange on which shares
         of Common Stock are listed on that date, or, if there shall have been
         no such sale so reported on that date, on the next succeeding date on
         which such a sale was so reported, or, at the discretion of the
         Committee, the price prevailing on the exchange at the time of
         exercise.

                  Grant means any Employee Award granted under the Plan on a
         Grant Date.

                  Grant Date means the particular date or dates, as established
         by the Committee, on which an Employee is granted an Employee Award
         under the terms of this Plan.

                  Grant Price means the Fair Market Value of Common Stock on the
         Grant Date.

                  Participant means an individual to whom an Employee Award has
         been granted, and for whom such Employee Award remains outstanding,
         unforfeited, and unexercised under this Plan.

                  Participating Country means any country, as determined by the
         Committee in its sole and absolute discretion and as set forth in
         Attachment "A," as attached hereto, and as may be amended from time to
         time.

                  Participating Employer means Conoco, or any subsidiary or
         affiliate of Conoco, as determined by the Committee in its sole and
         absolute discretion, and as set forth in Attachment "B," as attached
         hereto, and as may be amended from time to time.

                                      -3-
<PAGE>   4

                  Plan means the Conoco Inc. 2001 Global Performance Sharing
         Plan, as set forth in this document, and as it may be amended from time
         to time.

                  Stock Appreciation Right or SAR means a right to receive a
         payment, in cash or in Common Stock, equal to the excess of the Fair
         Market Value of a specified number of shares of Common Stock on the
         date the right is exercised over the Fair Market Value of the specified
         number of shares of Common Stock on the date the SAR was granted.

                  Trading Day means a day on which Common Stock is available for
         purchase or sale on the New York Stock Exchange.

         4. Eligibility. Employees eligible for a Grant are those Employees of a
Participating Employer in a Participating Country on the Grant Date.
Notwithstanding the foregoing, a Participating Employer may elect to exclude
specified groups of Employees from participation in the Grant.

         5. Common Stock Available for Employee Awards. Subject to the
provisions of paragraph 6 hereof, the Board has approved the granting of up to
1,500,000 shares of Common Stock under this Plan, which number of shares of
Common Stock may be modified from time to time by resolution of the Board. The
number of shares of Common Stock that are the subject of Employee Awards under
this Plan that are forfeited or terminated, that expire unexercised, or that are
settled in a manner such that all or some of the shares covered by an Employee
Award are not issued to a Participant, shall not be available for Employee
Awards hereunder. The Committee may from time to time adopt and observe such
procedures concerning the counting of shares against the Plan maximum as it may
deem appropriate. The Board and the appropriate officers of Conoco shall from
time to time take whatever actions are necessary to file any required documents
with governmental authorities, stock exchanges and transaction reporting systems
to ensure that shares of Common Stock are available for issuance pursuant to
Employee Awards.

         6. Employee Awards.

                  (a) Each Employee Award shall be described in an Employee
         Award Agreement, and shall be subject to the vesting schedule,
         forfeiture provisions, terms, conditions and limitations described
         herein and in the Employee Award Agreement. An Employee Award shall be
         subject to limitations on exercisability as are set forth in this Plan
         and in the Employee Award Agreement. Upon the termination of a
         Participant's employment, any unexercised, unvested or otherwise
         outstanding Employee Awards shall be treated as described herein and in
         the Employee Award Agreement.

                  (b) Each eligible Employee, as defined in paragraph 4, shall
         receive a grant of an Employee Award, as described in paragraph 6(c)
         hereof, in the amount, and subject to the terms, described in paragraph
         6(d) hereof.

                  (c) The price at which shares of Common Stock may be purchased
         upon the exercise of an Employee Award that is an option shall be the
         Grant Price. The exercise

                                      -4-
<PAGE>   5

         price of Employee Awards that are SARs shall be the Grant Price. All
         Employee Awards granted pursuant to this Plan shall be subject to the
         vesting schedule, forfeiture provisions, terms, conditions and
         limitations set forth in this Plan and in the Employee Award Agreement.
         The date or dates upon which an Employee Award awarded pursuant to this
         Plan may become exercisable shall be determined pursuant to the
         provisions of the Employee Award Agreements and 7(b) hereof. No
         Employee Award shall be exercisable after the 10th anniversary of the
         Grant Date of the Employee Award.

                  (d) Employee Awards shall be in amounts and shall be subject
         to terms and conditions that the Committee may establish, including
         provisions related to vesting and exercisability.

         7. Election to Exercise.

                  (a) Election. An exercisable Employee Award may be exercised
         (subject to the provisions of the Employee Award Agreement and 7(b)
         hereof), in whole or in part, by timely notice to the Committee, in
         such form as may be designated by the Committee, of exercise, and
         payment of the purchase price, if the Employee Award is an option.
         Notice of exercise shall be effective on the date both the notice and
         the purchase price are received by the Committee. The notice must state
         the Participant's election to exercise the Employee Award, the number
         of shares with respect to which the election to exercise has been made,
         if applicable, the method of payment elected, the exact name or names
         in which such shares will be registered and such other information and
         in such form as may be required by the Committee. In the event of the
         death of a Participant, the Employee Award may be exercised by the
         Beneficiary of the Participant, subject to the provisions hereof.

                  (b) Completion of Necessary Forms. As a condition precedent to
         becoming eligible to exercise any Employee Award, the Participant shall
         be required to complete and execute such forms as may be designated by
         the Committee. Failure to properly complete and execute such forms
         shall result in the lapse of a vested Employee Award.

                  (c) Payment. The full purchase price for the shares of Common
         Stock purchased on the exercise of an Employee Award that is an option
         (i.e., the number of shares purchased, multiplied by the price per
         share) may be paid in cash, or, at the request of the Participant, and
         to the extent permitted by applicable law, the Committee may approve,
         in its sole and absolute discretion, tender of shares of Common Stock,
         or cashless exercise through an arrangement with a brokerage firm,
         under which the brokerage firm, on behalf of the Participant, will pay
         for all or a portion of the shares of Common Stock purchased upon the
         exercise of the Employee Award.

                  (d) Minimum Exercise. The minimum number of shares with
         respect to which an Employee Award may be exercised shall be the lesser
         of (i) ten shares or (ii) the number of shares with respect to which
         the Employee Award is currently exercisable.

                                      -5-
<PAGE>   6

                  (e) Cash-out of Awards. At the discretion of the Committee, an
         Employee Award may be settled by a cash payment equal to the difference
         between the Fair Market Value per share of Common Stock on the date of
         exercise and the Grant Price of the Employee Award, multiplied by the
         number of shares with respect to which the Employee Award is exercised.

         8. Administration.

                  (a) This Plan shall be administered by the Committee (or the
         Committee's delegate pursuant to paragraph 9 hereof). The Committee
         shall have the power, in its sole and absolute discretion, to contract
         with a third-party administrator to administer this Plan.

                  (b) Subject to the provisions hereof, the Committee shall have
         full and exclusive power and authority to administer this Plan and to
         take all actions which are specifically contemplated hereby or are
         necessary or appropriate in connection with the administration hereof.
         The Committee shall also have full and exclusive power to interpret
         this Plan, to devise necessary forms and documents, and to adopt such
         rules, regulations and guidelines for carrying out this Plan as it may
         deem necessary or proper, all of which powers shall be exercised in the
         best interests of Conoco and in keeping with the objectives of this
         Plan. The Committee may, in its sole and absolute discretion, amend or
         modify an Employee Award in any manner that is consistent with the
         purpose and objectives of this Plan and is either (i) not adverse to
         the Participant to whom such Employee Award was granted, (ii) required
         to comply with governing law, or (iii) consented to by such
         Participant. The Committee may correct any defect or supply any
         omission or reconcile any error or inconsistency in this Plan or in any
         Employee Award Statement in the manner and to the extent the Committee
         deems necessary or desirable to carry it into effect. Any decision of
         the Committee in the interpretation and administration of this Plan
         shall lie within its sole and absolute discretion and shall be final,
         conclusive and binding on all parties concerned.

                  (c) No member of the Committee, or officer or Employee of
         Conoco to whom the Committee has delegated authority in accordance with
         the provisions of paragraph 9 hereof, shall be liable for anything done
         or omitted to be done by such person, by any member of the Committee,
         or by any officer or Employee of Conoco in connection with the
         performance of any duties under this Plan, except for such person's own
         willful misconduct or as expressly provided by statute.

         9. Delegation of Authority. The Committee may delegate to such
subcommittees, officers, other Employees of Conoco, or qualified third-party
administrators, its duties under this Plan pursuant to such conditions or
limitations as the Committee may establish. The Committee shall have the power
and authority to appoint, remove or replace the members of any such
subcommittee, or any officer, Employee or third-party administrator that has
been delegated responsibilities and authority by the Committee.

                                      -6-
<PAGE>   7

         10. Tax Withholding. Upon the exercise of an Employee Award, or any
part thereof, the Participant may incur certain liabilities for taxes and the
Participating Employer may be required by law to withhold such taxes for payment
to taxing authorities. Upon determination by the Participating Employer of the
amount of taxes required to be withheld, including taxes, if any, which may be
required to be withheld prior to exercise with respect to the shares to be
issued pursuant to the exercise of the Employee Award, the Committee shall
establish procedures which allow the Participant (a) to direct the Participating
Employer to withhold from the Common Stock available for exercise the number of
shares necessary to satisfy the withholding obligations, based on the Fair
Market Value of Common Stock on the date of withholding; (b) to deliver
sufficient cash to the Participating Employer to satisfy its withholding
obligations; or (c) some combination thereof. Authorization of the Participant
to the Participating Employer to withhold taxes must be in a form and content
acceptable to the Committee. Failure by the Participant to comply with the
foregoing shall entitle the Committee, in its sole and absolute discretion, to
authorize the sale of a sufficient number of the shares of Common Stock which
the Participant is entitled to receive upon the exercise of the Participant's
Employee Award in order to satisfy such withholding requirements; provided,
however, that neither the Participating Employer nor the Committee shall be
liable for determining the exact amount of such taxes, for selling shares of
Common Stock in excess of that required to satisfy such tax obligation, or for
obtaining the highest sales price for any such shares. The payment or
authorization to withhold taxes by the Participant shall be completed prior to
the delivery of any Common Stock pursuant to this Plan. An authorization to
withhold taxes pursuant to this provision will be irrevocable unless and until
the tax liability of the Participant has been fully paid.

         11. Delivery of Shares. Subject to paragraphs 10 and 16 hereof, and
upon written request of the Participant, the Participating Employer shall cause
certificates for those shares of Common Stock which the Participant is entitled
to receive upon the exercise of an Employee Award to be delivered to
Participant. Notwithstanding the foregoing, no shares of Common Stock shall be
delivered to the Participant upon the exercise of the Employee Award until (a)
the purchase price, including any applicable fees or commissions, has been paid
in full in the manner herein provided; (b) all the applicable taxes required to
be withheld have been paid or withheld in full; and (c) the approval of any
governmental authority required in connection with the Employee Award or the
issuance of shares thereunder has been received by Conoco.

         12. Amendment, Modification, Suspension or Termination. Conoco may
amend, modify, suspend or terminate this Plan for the purpose of meeting or
addressing any changes in legal requirements or for any other purpose permitted
by law, except that (a) no amendment or alteration that would adversely affect
the rights of any Participant under any Employee Award previously granted to
such Participant shall be made without the consent of such Participant and (b)
no amendment or alteration shall be effective prior to approval by the
stockholders of Conoco to the extent stockholder approval is required by
applicable legal requirements. Subject to the same conditions listed in the
previous sentence, the Committee may amend the terms of Addendum A and Addendum
B without any action of the Board. Conoco may, in its sole and absolute
discretion, terminate this Plan at any time, provided that such termination
shall not cause any Participant to lose any rights to any vested Employee Award.

                                      -7-
<PAGE>   8

         13. Assignability. No Employee Award or any other benefit under this
Plan shall be assignable or otherwise transferable except by will, Beneficiary
designation or the laws of descent and distribution. In the event that a
Beneficiary designation conflicts with an assignment by will, the Beneficiary
designation will prevail. The Committee may prescribe other restrictions on
transfer. Any attempted assignment of an Employee Award or any other benefit
under this Plan in violation of this paragraph 13 shall be null and void.

         14. Adjustments.

                  (a) The existence of outstanding Employee Awards shall not
         affect in any manner the right or power of Conoco or its stockholders
         to make or authorize any or all adjustments, recapitalizations,
         reorganizations or other changes in the capital stock of Conoco or its
         business or any merger or consolidation of Conoco, or any issue of
         bonds, debentures, preferred or prior preference stock (whether or not
         such issue is prior to, on a parity with or junior to the Common Stock)
         or the dissolution or liquidation of Conoco or a subsidiary, or any
         sale or transfer of all or any part of its assets or business, or any
         other corporate act or proceeding of any kind, whether or not of a
         character similar to that of the acts or proceedings enumerated above.

                  (b) In the event of any subdivision or consolidation of
         outstanding shares of Common Stock, declaration of a dividend payable
         in shares of Common Stock, or other stock split, then (i) the number of
         shares of Common Stock reserved under this Plan, (ii) the number of
         shares of Common Stock covered by outstanding Employee Awards, (iii)
         the exercise or other price in respect of such Employee Awards, and
         (iv) the appropriate Fair Market Value and other price determinations
         for such Employee Awards, shall be proportionately adjusted by the
         Committee as appropriate to reflect such transaction. In the event of
         any other recapitalization or capital reorganization of Conoco, any
         consolidation or merger of Conoco with another corporation or entity,
         the adoption by Conoco of any plan of exchange affecting the Common
         Stock or any distribution to holders of Common Stock of securities or
         property (other than normal cash dividends or dividends payable in
         Common Stock), then (i) the number of shares of Common Stock covered by
         Employee Awards in the form of options on Common Stock, (ii) the
         exercise or other price in respect of such Employee Awards, and (iii)
         the appropriate Fair Market Value and other price determinations for
         such Employee Awards, shall be proportionately adjusted by the
         Committee to reflect such transaction; provided that such adjustments
         shall only be such as are necessary to maintain the proportionate
         interest of the holders of the Employee Awards and preserve, without
         exceeding, the value of such Employee Awards. In the event of a
         corporate merger, consolidation, acquisition of property or stock,
         separation, reorganization or liquidation, the Committee shall be
         authorized to issue or assume Employee Awards by means of substitution
         of new Employee Awards, as appropriate, for previously issued Employee
         Awards or an assumption of previously issued Employee Awards as part of
         such adjustment.

                                      -8-
<PAGE>   9

         15. Beneficiary Designation. Beneficiaries shall be designated in such
manner and according to such requirements as may be designated by the Committee.
The designation of a Beneficiary shall be effective on the date received by the
Committee. Upon the death of a Participant, a Beneficiary shall be entitled to
exercise a vested Employee Award pursuant to the provisions of paragraph 6
hereof.

         16. Restrictions. No Common Stock or other form of payment shall be
issued with respect to any Employee Award unless the Participating Employer
shall be satisfied based on the advice of its counsel that such issuance will be
in compliance with applicable laws, rules or regulations. Certificates
evidencing shares of Common Stock certificates delivered under this Plan (to the
extent that such shares are so evidenced) may be subject to such stop transfer
orders and other restrictions as the Committee may deem advisable in order to
satisfy the rules, regulations, agreements or other requirements of the U.S.
Securities and Exchange Commission, or any securities exchange or transaction
reporting system upon which the Common Stock is then listed or to which it is
admitted for quotation, and any applicable securities law. The Committee may
cause a legend or legends to be placed upon such certificates (if any) to make
appropriate reference to such restrictions.

         17. Unfunded Plan. This Plan shall be unfunded. Although bookkeeping
accounts may be established with respect to Participants who are entitled to
Common Stock or rights thereto under this Plan, any such accounts shall be used
merely as a bookkeeping convenience. Conoco shall not be required to segregate
any assets that may at any time be represented by Common Stock or rights
thereto, nor shall this Plan be construed as providing for such segregation, nor
shall Conoco, the Board or the Committee be deemed to be a trustee of any Common
Stock or rights thereto to be granted under this Plan. Any liability or
obligation of Conoco to any Participant with respect to rights granted under
this Plan shall be based solely upon any contractual obligations that may be
created by this Plan and any Employee Award Statement, and no such liability or
obligation of Conoco shall be deemed to be secured by any pledge or other
encumbrance on any property of Conoco. Neither Conoco, any subsidiary, the Board
nor the Committee shall be required to give any security or bond for the
performance of any obligation that may be created by this Plan.

         18. Governing Law. This Plan and all determinations made and actions
taken pursuant hereto, to the extent not otherwise governed by mandatory
provisions of the Code or the securities laws of the United States, shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to any conflicts of law principles that would compel the
application of any other law.

         19. No Right to Employment. Nothing in this Plan or in any Employee
Award issued pursuant to this Plan shall confer upon any Participant any right
to receive another Employee Award or to continue in the employ of the
Participating Employer or affect the Participating Employer's right, subject to
applicable law, to terminate the employment of any Participant at any time, with
or without cause.

                                      -9-
<PAGE>   10

         20. Effectiveness. The Plan was established effective February 23,
2001. The Plan, as approved by the Board for amendment and restatement as set
forth herein, shall be effective as set forth herein as of the effective time of
the Merger (October 8, 2001).

                                      -10-
<PAGE>   11

                                 ATTACHMENT "A"
                                       TO
                                   CONOCO INC.
                      2001 GLOBAL PERFORMANCE SHARING PLAN

<Table>
<Caption>
                             PARTICIPATING COUNTRIES
<S>                                                        <C>
             Australia                                     Netherlands
             Austria                                       Nigeria
             Azerbaijan                                    Norway
             Belgium                                       Poland
             Canada                                        Russia
             Czech Republic                                Singapore
             Denmark                                       Slovakia
             Dubai                                         Spain
             Finland                                       Sweden
             Germany                                       Thailand
             Hungary                                       Turkey
             India                                         United Kingdom
             Indonesia                                     United States
             Japan                                         Venezuela
             Malaysia                                      Vietnam
             Mexico

                           Total No. of Countries: 31
</Table>

                                 Attachment A-1
<PAGE>   12

                                 ATTACHMENT "B"
                                       TO
                                   CONOCO INC.
                      2001 GLOBAL PERFORMANCE SHARING PLAN

                             PARTICIPATING EMPLOYERS

CONOCO INC., A DELAWARE CORPORATION,
(GRANTING STOCK OPTIONS)
AND
EACH OF THE FOLLOWING:

<Table>
<Caption>
               SARs                                     Stock Options
               ----                                     -------------
<S>                                            <C>
Conoco (Thailand) Company Limited              Conoco (U.K.) Limited
Conoco (U.K.) Limited - Azerbaijan Branch      Conoco Canada Limited
Conoco (U.K.) Limited - Vietnam Branch         Conoco Carbon Fibers Japan, KK.
Conoco Asia Ltd. *                             Conoco Continental Holding GmbH
Conoco Asia Pacific Sdn. Bhd.                  Conoco EurAsia Inc.
Conoco Czech Republic s.r.o.                   Conoco International, Inc.
Conoco Energy Nigeria Limited                  Conoco Limited
Conoco Hungary Kft.                            Conoco Mexico Servicios, S.A. de C.V.
Conoco Indonesia Inc. Ltd.                     Conoco Mineraloel GmbH
Conoco International Petroleum Company         Conoco Operations (QLD.) Pty Ltd.
Conoco Jet Danmark A/S                         Conoco Petcoke Far East Ltd.
Conoco Jet Finland Oy                          Conoco Pipe Line Company
Conoco Jet Nordic AB                           Conoco Shipping Company
Conoco Jet Norge A/S                           Conoco Venezuela Ltd.
Conoco Lubricants (Malaysia) Sdn. Bhd.         Conoco-Austria Mineraloel GmbH
Conoco Middle East Ltd.                        Continental Netherlands Oil Company B.V.
Conoco Nordic Holdings AB                      Louisiana Gas System Inc.
Conoco Poland Sp. z.o.o.                       Norske Conoco A/S
Conoco Slovakia s.r.o.
Jet/Jiffy Shops Ltd
Projet Malaysia Sdn. Bhd.
Societe Europeenne Des Carburants (SECA)
</Table>

* Company's name to change to "Conoco
Lubricants (India) Pte Ltd" later in the year

                                 Attachment B-1
<PAGE>   13

                                  ADDENDUM "A"
                                       TO
                                   CONOCO INC.
                      2001 GLOBAL PERFORMANCE SHARING PLAN

The following are provisions, in addition to those provisions in the Plan, which
are applicable to Employees in the respective Participating Countries listed
below. As used herein, capitalized terms shall have the respective meanings
ascribed to such terms in the Plan.

1.  AUSTRIA. This Plan is revocable at any time and is a freely offered benefit
         by the Participating Employer and is not subject to any legal claim as
         to termination indemnities or severance payments.

2.  CANADA. There are no additional rights accruing to an eligible Employee as a
         result of this Plan and the Participating Employees right to terminate
         an eligible Employee is not deemed to have been prejudiced as a result
         of the offering and/or implementation of the Plan.

3.  GERMANY. This Plan is revocable at any time and is a freely offered benefit
         by the Participating Employer and is not subject to any legal claim as
         to termination indemnities or severance payments.

4.  MEXICO. This Plan may be used to offset and/or compensate any future
         performance or profit sharing plans to be established by applicable law
         or by collective agreement.

                                  Addendum A-1
<PAGE>   14

                                  ADDENDUM "B"
                                       TO
                                   CONOCO INC.
                         GLOBAL PERFORMANCE SHARING PLAN

                                   CONOCO INC.
                           2001 UK STOCK OPTION SCHEME

1.       DEFINITIONS AND INTERPRETATION

         (1)      Unless the context otherwise requires, all expressions defined
                  in the US Plan shall have the same meaning in the UK Scheme,
                  save that:

                  "Fair Market Value" has the meaning set forth in sub-rule
                  5(3);

                  "Option" includes an Approved Stock Option as defined in
                  sub-rule 1(2).

         (2)      In addition, the following expressions shall have the
                  following meanings in the UK Scheme unless the context
                  otherwise requires:

                  "Approved Stock Option" means an Option granted in accordance
                  with the UK Scheme;

                  "Company" means Conoco Inc.;

                  "Grant Date" in relation to an option means the date on which
                  the option was granted;

                  "the Inland Revenue" means the United Kingdom's Commissioners
                  of Inland Revenue;

                  "Participating Company" means the Company or a Subsidiary of
                  the Company;

                  "Schedule 9" means Schedule 9 to the Taxes Act;

                  "Subsidiary" shall mean a body corporate, whether now or
                  hereafter existing, which is:

                  (a)      a subsidiary of the Company within the meaning of
                           Section 736 of the United Kingdom Companies Act 1985;
                           and is

                  (b)      under the control of the Company within the meaning
                           of Section 840 of the Taxes Act.

                                  Addendum B-1
<PAGE>   15

                  "the Taxes Act" means the United Kingdom's Income and
                  Corporation Taxes Act 1988;

                  "the Terms and Conditions" mean terms and conditions specified
                  in the Conoco Inc. 2001 Global Performance Sharing Plan
                  Employee Award Agreement;

                  "the UK Scheme" means the Conoco Inc. 2001 UK Stock Option
                  Scheme as herein set out but subject to any alterations or
                  additions made under Rule 8 below; and

                  "the US Plan" means the 2001 Conoco Inc. Global Performance
                  Sharing Plan.

         (3)      Expressions not otherwise defined herein have the same meaning
                  as they have in Schedule 9.

         (4)      Any reference herein to any enactment includes a reference to
                  that enactment as from time to time modified, extended or
                  re-enacted.

2.       APPLICABILITY OF THE US PLAN AND THE TERMS AND CONDITIONS

         Save as hereinafter specified, all the term and provisions of the US
         Plan and the Terms and Conditions shall apply mutatis mutandis to the
         grant of Approved Stock Options under the UK Scheme.

3.       ELIGIBILITY

         (1)      Subject to sub-rule (3) below, a person is eligible to be
                  granted an Approved Stock Option if (and only if) he is a
                  full-time director or qualifying employee of a Participating
                  Company.

         (2)      For the purposes of sub-rule (1) above:

                  (a)      a person shall be treated as a full-time director of
                           a Participating Company if he is obliged to devote to
                           the performance of the duties of his or her office or
                           employment with that and any other Participating
                           Company not less than 25 hours a week (excluding meal
                           breaks);

                  (b)      a qualifying employee, in relation to a Participating
                           Company, is an employee of the Participating Company
                           (other than one who is a director of a Participating
                           Company).

         (3)      A person is not eligible to be granted an Option under the UK
                  Scheme at any time when he is not eligible to participate in
                  the UK Scheme by virtue of paragraph 8 of Schedule 9.

                                  Addendum B-2
<PAGE>   16

4.       GRANT OF OPTIONS

         (1)      Notwithstanding Paragraph 6(b) of the US Plan, the Approved
                  Stock Options to be issued as part of the Initial Grant shall
                  only be granted by action of the Board or such other persons
                  as are authorized by the Board. Subject to sub-rule (3) below,
                  the Committee may grant to any person who is eligible to be
                  granted an Option under the UK Scheme an Approved Stock Option
                  to acquire Shares which satisfy the requirements of paragraphs
                  10 to 14 of Schedule 9, upon the terms set out in the UK
                  Scheme and upon such other objective terms as the Committee
                  may reasonably specify.

         (2)      The grant of an Approved Stock Option shall be subject to
                  obtaining any approval or consent which may be required under
                  the provisions of any regulation or enactment.

         (3)      No person shall be granted Approved Stock Options under the UK
                  Scheme which would, at the time they are granted, cause the
                  aggregate market value of the Shares which he may acquire in
                  pursuance of options granted to him under the UK Scheme or
                  under any other share option scheme, not being a
                  savings-related share option scheme, approved under Schedule 9
                  and established by the Company or by any associated company of
                  the Company (and not exercised) to exceed or further exceed
                  Pound Sterling 30,000. Any Stock Options granted in excess of
                  this amount shall be granted under the US Plan.

         (4)      For the purposes of sub-rule (3) above:

                  (a)      in the case of an Option granted under the UK Scheme
                           the aggregate market value of shares shall be
                           calculated as on the day by reference to which the
                           price at which Shares may be acquired by the exercise
                           thereof is determined as mentioned in Rule 5(2)
                           below;

                  (b)      in the case of an Option granted under any other
                           approved scheme, as at the time when it was granted
                           or, in a case where an agreement relating to the
                           shares has been made under paragraph 29 of Schedule
                           9, such earlier time or times as may be provided in
                           the agreement; and

                  (c)      in the case of any other Option, the aggregate fair
                           market value of shares shall be calculated as on the
                           day or days by reference to which the price at which
                           shares may be acquired by the exercise hereof was
                           determined.

         (5)      Unless otherwise agreed with the Inland Revenue, the United
                  States dollar exchange rate for pounds sterling for the
                  purposes of calculating the limit in sub-rule (3) above shall
                  be the noon buying rate in the City of London on the day by

                                  Addendum B-3
<PAGE>   17

                  reference to which the price at which Shares may be acquired
                  on the exercise of the Option is determined as mentioned in
                  Rule 5(2) below.

5.       EXERCISE PRICE AND CONSIDERATION

         (1)      Shares shall be issued to the Participant pursuant to the
                  exercise of an Option only upon receipt by the Company from
                  the Participant of payment in full in cash. The Committee may,
                  in its sole and absolute discretion, permit the exercise of an
                  Approved Stock Option by cashless exercise through a loan
                  arrangement with a brokerage firm, under which the brokerage
                  firm, on behalf of the participant, pays for all or a portion
                  of the Shares of Common Stock purchased upon the exercise of
                  the Approved Stock Option.

         (2)      The price per Share under each Approved Stock Option granted
                  by the Committee shall be such price as is determined by the
                  Committee before the grant thereof, provided that it shall not
                  be less than 100% of the Fair Market Value per Share on the
                  Option Grant Date (or such other dealing day as may be agreed
                  with the Inland Revenue).

         (3)      The Fair Market Value per Share on any day shall be determined
                  as follows:

                  (a)      if shares of the same class as the Shares are quoted
                           on the New York Stock Exchange, the Fair Market Value
                           per Share shall be the closing price per Share in the
                           New York Stock Exchange on the consolidated
                           transaction reporting system on that day (and if
                           there shall be no sale of Shares reported on such
                           date, the Fair Market Value shall be deemed equal to
                           the closing price per Share on the consolidated
                           transaction reporting system for the last preceding
                           date on which sales of Shares were reported);

                  (b)      If paragraph (a) above does not apply, the Fair
                           Market Value shall be equal to the market value
                           (within the meaning of Part VIII of the United
                           Kingdom's Capital Gains Tax Act 1992) of Shares, as
                           agreed for the purposes of the UK Scheme with the
                           Shares Valuation Division of the Inland Revenue, on
                           that day.

6.       EXERCISE OF OPTIONS

         (1)      A person is not eligible to exercise an Approved Stock Option
                  granted under the UK Scheme at any time when he is not
                  eligible to participate in the UK Scheme by virtue of
                  paragraph 8 of Schedule 9.

         (2)      Paragraphs 6 and 7 of the US Plan and Section 6 and, subject
                  to Rule 5(1) above, Section 7 of the Terms and Conditions
                  shall apply in respect of Approved Stock Options granted under
                  the UK Scheme.

                                  Addendum B-4
<PAGE>   18

         (3)      An Approved Stock Option granted under the UK Scheme may not
                  in any circumstances be exercised later than twelve (12)
                  months after the death of the Participant.

7.       ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER

         (1)      Paragraph 14 of the US Plan shall apply to Approved Stock
                  Options granted under the UK Scheme in respect of a variation
                  of capital of the Company only, save that no adjustment under
                  Paragraph 14 shall be made to an Approved Stock Option at a
                  time when the UK Scheme is approved by the Inland Revenue
                  under Schedule 9 without the prior approval of the Inland
                  Revenue.

         (2)      If any company ("the acquiring company") obtains control of
                  the Company as a result of making:

                  (a)      a general offer to acquire the whole of the Common
                           Stock of the Company which is made on a condition
                           such that if it is satisfied the person making the
                           offer will have control of the Company, or

                  (b)      a general offer to acquire all the shares in the
                           Company which are of the same class as the Shares
                           which may be acquired by the exercise of Options
                           granted under the UK Scheme,

                  any Participant may at any time within the appropriate period
                  (which expression shall be construed in accordance with
                  paragraph 15(2) of Schedule 9), by agreement with the
                  acquiring company, release any Option granted under the UK
                  Scheme which has not lapsed ("the old option") in
                  consideration of the grant to him of an option ("the new
                  option") which (for the purposes of that paragraph) is
                  equivalent to the old option but relates to shares in a
                  different company (whether the acquiring company itself or
                  some other company falling within paragraph 10(b) or (c) of
                  Schedule 9).

         (3)      The new option shall not be regarded for the purposes of
                  sub-rule (2) above as equivalent to the old option unless the
                  conditions set out in paragraph 15(3) of Schedule 9 are
                  satisfied, but so that the provisions of the UK Scheme shall
                  for this purpose be construed as if:

                  (a)      the new option was an option granted under the UK
                           Scheme at the same time as the old option;

                  (b)      except for the purposes of the definitions of
                           "Participating Company" and "Subsidiary" in Rule 1
                           above and the references to "the Committee" in Rule
                           4(1) above, the reference to Conoco Inc. in the
                           definition of Conoco in Paragraph 3 of the US Plan
                           was a reference to the different company mentioned in
                           sub-rule (2) above.

                                  Addendum B-5
<PAGE>   19

8.       AMENDMENT AND TERMINATION OF THE UK SCHEME

         (1)      The provisions of Paragraph 6 and Paragraph 12 of the US Plan
                  apply mutatis mutandis to the UK Scheme, save that if an
                  amendment is made to the UK Scheme or to the terms of an
                  Approved Stock Option at a time when the UK Scheme is approved
                  by the Inland Revenue under Schedule 9, the approval will not
                  thereafter have effect unless the Inland Revenue have approved
                  the alteration or addition.

         (2)      As soon as reasonably practicable after making any amendment
                  to the UK Scheme under sub-rule (1) above, the Committee shall
                  give notice in writing thereof to any Participant affected
                  thereby and, if the UK Scheme is then approved by the Inland
                  Revenue under Schedule 9, to the Inland Revenue.

         (3)      In accordance with the Committee's powers under Paragraph 9 of
                  the US Plan, the Committee shall if it deems necessary
                  delegate authority to any one or more of the officers of the
                  Company to be responsible for the administration of the UK
                  Scheme.

         (4)      The Committee or officer(s) of the Company to whom authority
                  has been delegated may amend or alter the UK Scheme either as
                  it is considered necessary (or as may be consequential upon
                  such necessary amendments) to enable the UK Scheme to obtain
                  or maintain the approval of the Inland Revenue under Schedule
                  9 or take account of any applicable legislation.

9.       MISCELLANEOUS

         (1)      Options granted under the UK Scheme shall not be transferable
                  or assignable other than by will or by the laws of decent and
                  distribution and Paragraph 13 of the US Plan shall only apply
                  to Options granted under the UK Scheme in this respect.

         (2)      Within thirty days after an Option has been exercised by any
                  person, the Committee on behalf of the Company shall allot to
                  him or, as appropriate, procure the transfer to him of the
                  number of Shares in respect of which the Option has been
                  exercised.

         (3)      All Shares allotted under the UK Scheme shall rank pari passu
                  in all respects with the Shares of the same class for the time
                  being in issue save as regards any rights attaching to such
                  shares by reference to a record date prior to the date of the
                  allotment.

         (4)      Sections 9 to 17 of the Terms and Conditions shall apply in
                  respect of Approved Stock Options to the extent permitted
                  under the UK Scheme.

                                  Addendum B-6
<PAGE>   20

         (5)      Paragraph 7(e) of the US Plan and the final sub-paragraph of
                  Section 6 of the Terms and Conditions shall not apply to
                  Approved Stock Options.

         (6)      For the avoidance of doubt references to Stock Appreciation
                  Rights in the US Plan and the Terms and Conditions shall be
                  disregarded for the purposes of the UK Scheme.

                                  Addendum B-7

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