Document:

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                                                                    Exhibit 10.5

                             MELLON BANK CORPORATION
                 STOCK OPTION PLAN FOR OUTSIDE DIRECTORS (1989)

I.       Purpose

The purposes of this Stock Option Plan for Outside Directors (1989) are to align
the interests of the outside directors of Mellon Bank Corporation (the
"Corporation") more closely with the interests of the Corporation's
shareholders, to provide such directors with an additional inducement to remain
in the service of the Corporation with an increased incentive to work for its
long-term success, and to establish an effective element of a reasonable
directors' compensation package.

II.      Definitions

The following terms shall have the meanings indicated below:

2.1 "Common Stock" shall mean the common stock, par value $.50 per share, of the
Corporation.

2.2 "Corporation" shall mean Mellon Bank Corporation.

2.3 "Business Day" shall mean any day on which the market used to determine the
Fair Market Value of the Common Stock is open for trading.

2.4 "Fair Market Value" shall mean the closing price of the Common Stock on the
New York Stock Exchange on the relevant date. If on the relevant date the Common
Stock is not listed on the New York Stock Exchange, "Fair Market Value" shall
mean the closing price of the Common Stock on the relevant date on the principal
stock exchange on which the Common Stock is listed. If the Common Stock is not
listed on any stock exchange on the relevant date, "Fair Market Value" shall
mean the mean between the bid and asked price of the Common Stock as reported on
the National Association of Securities Dealers Automated Quotation System on the
relevant date.

2.5 "Outside Director" shall mean any individual who on the relevant date is a
member of the Board of Directors of the Corporation but is not an employee of
the Corporation.

2.6 "Plan" shall mean the Mellon Bank Corporation Stock Option Plan for Outside
Directors (1989).

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2.7 "Service Year" shall mean the period beginning on the third Business Day
after the Corporation's annual meeting of shareholders at which directors are
elected and ending on the date of such annual meeting in the following year.

2.8 "HR Head" shall mean the head of the Human Resources Department of Mellon
Bank, N.A.

2.9 "Option" shall mean an option granted to an Outside Director pursuant to the
Plan.

2.10 "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended from
time to time, or any successor rule.

III.     Administration

3.1 Self-Operative Plan. The Plan is intended to be self-operative to the
maximum extent consistent with prudent business practice. Under no circumstances
shall any individual or group of individuals exercise discretion with respect to
designating the recipient of an Option, the number of shares of Common Stock
that are subject to an Option, the date of grant for an Option or the exercise
price for an Option. Any action of the Nominating Committee of the Board of
Directors to set or recommend retainers or fees shall not be deemed to be such
an exercise of discretion, regardless of such action's effect on the number of
shares that become subject to Options pursuant to the formula in Section 5.4
hereof.

3.2 Certain Administrative Duties. Within the parameters set forth in Section
3.1 hereof, the HR Head shall administer the Plan. The HR Head's actions and
interpretations under the Plan shall be final, conclusive and binding, the HR
Head shall not be liable for any action taken or decisions made in good faith
relating to the Plan or any Option thereunder.

3.3 Source of Shares. The shares of Common Stock that may be issued upon the
exercise of Options under the Plan may be either authorized but unissued shares
or authorized and issued shares held in the Corporation's treasury. The
aggregate number of shares of Common Stock which may be issued under the Plan
shall not exceed 2,400,000 shares, subject to adjustment pursuant to Section 8.6
hereof.

IV.      Grantings of Options

4.1 Timing. Except for individuals who become Outside Directors during the
Service Year (as described in Section 4.3 hereof), Options will be granted once
per Service Year on the third Business Day following the Corporation's annual
meeting of shareholders at which directors are elected.

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4.2. Recipients. Options will be awarded in equal amounts to all individuals who
are Outside Directors on the date of grant.

4.3 Mid-Service Year Elections. A director who is elected by the Board of
Directors after the start of a Service Year will be granted an Option having
terms (including term, exercise dates, and exercise price) identical to the
Options granted to Outside Directors at the start of that Service Year, except
that the number of shares of Common Stock subject to such Option shall be the
number of shares that are subject to each Option granted at the start of such
Service Year multiplied by a fraction the numerator of which is the number of
days during such Service Year that the recipient of such Option will serve as a
director and the denominator of which is the number of days in the Service Year
(with fractional shares being rounded upward to the nearest whole share).

4.4 Stock Option Agreements. The grant of any Option shall be evidenced by a
written "Stock Option Agreement" executed by the Corporation and the optionee.
The Stock Option Agreement shall contain the number of shares of Common Stock
that are subject to the Option evidenced thereby, the other essential terms of
the Option determined in accordance with Section V hereof, and other terms that
are not inconsistent with the requirements of this Plan.

V.       Terms of Options

5.1 Terms of Options. All Options, other than Options granted to an Outside
Director upon his or her election during a Service Year, shall have a term of
ten years from the date of grant, subject to earlier termination pursuant to
Section 5.5 hereof.

5.2 Exercise of Options. All Options, other than Options granted to an outside
Director upon his or her election during a Service Year, shall become
exercisable on the first anniversary of their grant date.

5.3 Exercise Price. The exercise price for all Options, other than Options
granted to an Outside Director upon his or her election during a Service Year,
shall be the Fair Market Value of the Common Stock on the date the Option is
granted.

5.4 Number of Shares. The number of shares of Common Stock that may be purchased
upon exercise of an Option granted for a given Service Year shall be 3,300. The
number of shares subject to an Option shall be subject to adjustment in
accordance with Section 8.6 hereof.

5.5 Forfeiture. Options that have not become exercisable on the date the
optionee ceases to serve as a director of the Corporation for any reason other
than the optionee's death, disability or completion of the Service Year shall be
forfeited and terminated immediately upon such termination of service. Options
that have become exercisable shall remain exercisable, and shall no longer be
subject to forfeiture, throughout their ten-year terms, regardless of whether
the optionee is a director of the Corporation at the time the Option is
exercised.

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VI.      Exercise of Options

6.1 Notice of Exercise. An Option shall be exercised by delivery to the H.R.
Head of a written notice of exercise in the form prescribed by the H.R. Head for
use from time to time. Such notice of exercise shall indicate the number of
shares as to which the Option is exercised and shall be accompanied by the full
exercise price for the Options exercised.

6.2 Form of Payment. The exercise price may be paid in cash or, in whole or in
part, by surrender of shares of Common Stock, which shall be credited against
the exercise price at their Fair Market Value on the date the Option is
exercised.

VII.     Advisory Board Members

Members of the Corporation's Advisory Board shall be granted options under this
Plan in the same amounts and on the same terms as options granted to Outside
Directors; provided, however, no option shall be granted to an individual upon
his or her election to the Advisory Board after the start of the Service Year.

VIII.    Miscellaneous

8.1 General Restriction. Each Option under the Plan shall be subject to the
requirement that, if at any time the H.R. Head shall determine that any listing
or registration of the shares of Common Stock, any consent or approval of any
governmental body, or any other agreement, consent or action is necessary or
desirable as a condition of the granting of an Option or issuance of Common
Stock in satisfaction thereof, such grant or issuance may not be consummated
unless such requirement is satisfied in a manner acceptable to the H.R. Head.

8.2 Non-Assignability. No Option under the Plan shall be assignable or
transferable by the optionee, except by will or pursuant to applicable laws of
descent and distribution. During the life of an optionee, an Option shall be
exercisable only by such optionee.

8.3 Withholding Taxes. Whenever the Corporation issues or transfers shares of
Common Stock under the Plan, the Corporation shall have the right to require the
optionee to remit to the Corporation an amount sufficient to satisfy any
federal, state, and local withholding tax requirements prior to the delivery of
any certificate for such shares.

8.4 No Right to Continued Service. Nothing in the Plan or in any agreement
entered into pursuant to the Plan shall confer upon any optionee any right to
continued service as a director of the Corporation or any subsidiary or affect
any right of the Corporation or a subsidiary, acting through their Boards of
Directors or otherwise, to terminate or otherwise affect the service of such
optionee.

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8.5 No rights as Shareholders. Holders of Options under the Plan shall have no
rights as shareholders of the Corporation resulting therefrom unless and until
certificates for shares of Common Stock are registered in their names in
satisfaction of a duly exercised Option.

8.6 Adjustments. In the event that the outstanding shares of Common Stock of the
Corporation are changed in number, class or character by reason of any split-up,
change of par value, stock dividend, combination or reclassification of shares,
recapitalization, merger, consolidation or other corporate change, or shall be
changed in value by reason of any spin-off, dividend in partial liquidation or
other special distribution, the Board of Directors of the Corporation may make
any changes it may deem equitable and appropriate in outstanding Options and/or
in the number of shares of Common Stock reserved for issuance under the Plan.
For purposes of this Section 8.6, it is intended that, absent reasons to the
contrary, adjustments to Options be consistent with any changes or lack of
changes to other options on the Common Stock resulting from the same cause.

8.7 Amendment or Termination of the Plan. The Board of Directors of the
Corporation may amend or terminate the Plan as it deems advisable; provided,
however, no such amendment or termination may (a) impair the rights of an
optionee under an Option previously granted, (b) effect a change to any part of
the formula setting the amount, price and timing of Option grants more often
than permitted under Rule 16b-3 (a change in the level of actual or projected
retainer amounts not being deemed a change to such formula for that purpose), or
(c) without the approval of the Corporation's shareholders, amend any other
provision of Sections IV or V of the Plan.

February 2000

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                                                                   Exhibit 10.12

                          MELLON FINANCIAL CORPORATION

                      RETIREMENT PLAN FOR OUTSIDE DIRECTORS

                            Effective January 1, 1994
                       Amended Effective February 15, 2000

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1.       Purpose
         -------

         The purpose of the Mellon Financial Corporation ("Corporation")
         Retirement Plan for Outside Directors ("Plan") is to provide eligible
         non-employee members of the Board of Directors of the Corporation
         ("Board") and the Advisory Board of the Corporation ("Advisory Board")
         with retirement benefits based on their length of service on the Board.

         The Corporate Benefits Committee ("Committee") of the Corporation shall
         be the "administrator" responsible for administering the Plan in
         accordance with its terms but such designation of the Committee shall
         not be construed, directly or indirectly, as evidencing any intent on
         the part of the Corporation that the Plan be governed by or enforceable
         under the Employee Retirement Income Security Act of 1974, as amended
         ("ERISA"); it being the intent of the Corporation that such Plan be
         governed by and enforceable under the laws of the Commonwealth of
         Pennsylvania.

         No persons not otherwise participating in the Plan in accordance with
         its terms or as a result of the operation of section 1 of Appendix A
         shall be entitled to participate in the Plan after February 15, 2000.
         Effective as of April 30, 2000, benefits accruing under the Plan with
         respect to Participants who had not incurred a Termination of Service
         from the Board prior to February 15, 2000, shall be frozen and shall be
         determined in accordance with Appendix A to the Plan.

2.       Eligibility
         -----------

         The "Non Employee Members" of the Board and Advisory Board described in
         subparagraphs (a) and (b) below shall be eligible to become
         participants in the Plan upon their satisfaction of the service
         requirements described in paragraph 3:

         a. Board Members. All individuals who are or become members of the
         Board on or after January 1, 1994 and who are not also serving as
         salaried employees of the Corporation or one of its subsidiaries.

         b. Advisory Board Members. All individuals who are active members of
         the Advisory Board on or after January 1, 1994, who were active members
         of the Board prior to January 1, 1994 and who are not also serving as
         salaried employees of the Corporation or one of its subsidiaries.

3.       Participation
         -------------

         a. Immediate Participation. Those Non Employee Members described in
         paragraph 2 who are credited with sixty (60) or more months of Board
         Service as of January 1, 1994, shall become "Participants" entitled to
         receive a benefit under this Plan as of January 1, 1994.

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         b. Future Participation. Those Non Employee Members described in
         paragraph 2 who are not credited with sixty (60) or more months of
         Board Service as of January 1, 1994, shall become "Participants"
         entitled to receive a benefit under this Plan upon their completion of
         sixty (60) months of Board Service.

         c. Board Service. For purposes of this Plan, "Board Service" shall mean
         the Non Employee Member's months of service as an active member of the
         Board of Directors. Months of service as a member of the Advisory Board
         or as a member of the board of any wholly or partially owned subsidiary
         of the Corporation, regardless of the method by which the subsidiary
         was established or acquired, shall not constitute Board Service.
         Without intending to limit the generality of the preceding sentence, a
         Non Employee Member's months of service as a member of the board of
         directors of any company merged with and into the Corporation shall not
         constitute "Board Service" for any purpose under this Plan unless and
         until the Nominating Committee of the Board takes action to provide
         otherwise.

4.       Benefits
         --------

         a. Amount. The monthly benefit payable under this Plan with respect to
         any Participant shall be determined as of the effective date of the
         Participant's termination of active membership on the Board and shall
         be a fixed dollar amount equal to one-twelfth (1/12th) of the annual
         Retainer then being paid to active Non Employee Members of the Board.

         b. Duration. The amount determined in subparagraph (a) with respect to
         any Participant shall be paid for that number of months equal to the
         lesser of: the Participant's months of Board Service (as defined in
         subparagraph 3(c) above); or one hundred twenty (120) months.

         c. Definitions. The following words shall have the meanings ascribed to
         them:

                  (1) "Retainer" means the base annual cash remuneration
         established by the Nominating Committee and the Board and paid to an
         active Non Employee Member of the Board as the retainer for his or her
         services as an active member of the Board; determined without regard to
         any additional cash remuneration paid as a retainer to any committee
         chairmanship positions, any noncash remuneration or benefits, any
         meeting or per diem fees paid for attendance or any allowances or
         reimbursements for meals, travel, lodging, or other expenses
         attributable to attendance at Board meetings.

                  (2)   "Termination of Service from the Board" means:

                           (a) with respect to Participants who are not
                  appointed to the Advisory Board following the termination of
                  their active membership on the Board, the Participant's
                  termination of active membership from the Board; and

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                           (b) with respect to Participants who are appointed to
                  the Advisory Board following the termination of their active
                  membership on the Board, the Participant's termination of
                  active membership from the Advisory Board,

         in either event with such termination of active membership being
         permitted to occur at any age as a result of retirement, resignation or
         any other reason.

5.       Payment of Benefits
         -------------------

         Upon a Participant's Termination of Service from the Board, the
         Corporation shall pay to or on behalf of the Participant a Plan benefit
         as determined below:

         a. Upon Termination of Service from the Board for Reason Other than
         Death. Except as otherwise provided in the case of death, the monthly
         benefit determined in paragraph 4 shall be paid to the Participant or
         his Assignee at the same time as are made monthly installments of the
         Retainer paid on behalf of active Non Employee Members of the Board.

         b. Assignments. Any Participant may from time to time direct the
         Corporation to pay all or any portion of his or her benefits hereunder
         directly to any person or persons (natural or otherwise, including a
         trust or an estate) as the Participant's Assignee or Assignees.
         Assignments shall be completely discretionary on the part of the
         Participant and may, at the Participant's election, be either revocable
         by the Participant without prior notice to the Assignee(s) or
         irrevocable. Unless otherwise provided in the instrument effecting the
         assignment, revocable assignments shall become null and void upon the
         Participant's death. Assignments shall be made in writing in the manner
         prescribed by the Committee (or its delegate) and will be effective
         only when filed with the Committee (or its delegate) during the
         Participant's lifetime.

         c. Upon Death

                  (1) Prior to Termination of Service from the Board. In the
         event that the Participant dies prior to his Termination of Service
         from the Board, the Corporation shall pay to the Participant's
         Beneficiary (or his Assignee(s), if applicable) an amount equal to
         fifty percent (50%) of the Present Value of the benefit the Participant
         would have received, if any, had the Participant had a Termination of
         Service from the Board for a reason other than death on the day before
         his or her death. Such then Present Value shall be paid in a single sum
         as soon as administratively possible after the date of death.

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                  (2) After Termination of Service from the Board. In the event
         that the Participant dies after his Termination of Service from the
         Board and prior to his (or his Assignee(s), if applicable) receiving
         all of the benefits to which he or she is entitled under this Plan, the
         Corporation shall pay to the Participant's Beneficiary (or his
         Assignee(s), if applicable) an amount equal to the then Present Value
         of the unpaid portion of the Participant's benefit. Such then Present
         Value shall be paid in a single sum as soon as administratively
         possible after the date of death.

                  (3) Present Value. For purposes of this subparagraph (c), the
         then Present Value shall be computed using an interest equal to the
         lesser of: ten percent (.10); or one percentage point (.01) over the
         rate charged by Mellon Bank, N.A., or its successor, to its best
         commercial customers determined as of the date of death.

         d. Tax Withholding. The amounts payable in accordance with
         subparagraphs (a) or (b) shall be subject to all applicable Federal,
         state and local income and employment taxes and withholding
         requirements.

6.       Designation of Beneficiary
         --------------------------

         Subject to any irrevocable assignments made pursuant to subparagraph
         5(b), each Participant may from time to time designate any person or
         persons (natural or otherwise, including a trust or an estate) as the
         Participant's Beneficiary or Beneficiaries to whom distribution is to
         be made in the event the Participant dies before distribution of his or
         her entire benefit under this Plan. Each Beneficiary designation shall
         be in a manner prescribed by the Committee (or its delegate) and will
         be effective only when filed with the Committee (or its delegate)
         during the Participant's lifetime. Each Beneficiary designation filed
         with the Committee (or its delegate) will cancel all Beneficiary
         designations previously filed with the Committee (or its delegate). If
         a Participant fails to designate a Beneficiary in the manner provided
         above, or if no designated Beneficiary survives the Participant, then
         the Corporation shall distribute the Participant's benefits (or the
         balance thereof) to the estate of such Participant.

7.       Forfeiture of Benefits
         ----------------------

         Notwithstanding any other provision of this Plan to the contrary, a
         Participant shall forfeit his or her right to receive any and all
         benefits scheduled to be paid on and after the date that the highest
         court with jurisdiction over the matter finally determines that the
         Participant has failed to act in accordance with the fiduciary standard
         of care established by Section 1712 of the Pennsylvania Business
         Corporation Law of 1988, as amended, or its successor Section(s), with
         respect to a matter involving the interests of the Corporation or one
         of its subsidiaries.

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8.       Funding
         -------

         a. Participant Contributions. Participant contributions are neither
         permitted nor required.

         b. Corporation Contributions. Except as otherwise provided in (d), the
         Corporation is neither permitted nor required to make contributions to
         any funding vehicle associated with this Plan.

         c. Benefits Paid from General Assets. The Corporation shall be
         responsible for the payment of all benefits provided under this Plan;
         which benefits are to be paid from the general assets of the
         Corporation.

         d. Trust Fund; Insurance Contracts. The Corporation may, solely for its
         own convenience, purchase insurance contracts and/or establish one or
         more trusts, with such trustees as the Board or the Committee may
         approve; which contracts and/or trust assets may, but need not, be used
         to provide for the payment of the benefits provided hereunder. Such
         trust or trusts may be irrevocable, but the assets thereof shall be
         subject to the claims of the Corporation's creditors. To the extent any
         benefits provided under the Plan are actually paid from any such
         insurance contract and/or trust assets, the Corporation shall have no
         further obligation with respect thereto, but to the extent not so paid,
         such benefits shall remain the obligation of, and shall be paid by, the
         Corporation.

9.       Administration
         --------------

         Except as otherwise provided in the provisions of Article II,
         Administration, of the Mellon Financial Corporation 1990 Elective
         Deferred Compensation Plan for Directors and Members of the Advisory
         Board (amended and restated as of July 21, 1992), which provisions are
         incorporated herein, mutatis mutandis, by this reference, the Committee
         shall be responsible for administering the Plan in accordance with its
         terms and for the referenced administrative responsibilities with
         respect to the Plan.

10.      Amendment
         ---------

         The Board or the Nominating Committee of the Board shall have the
         right, at any time and without the consent of any Participant, former
         Participant or Beneficiary, to amend or modify the Plan in any respect
         or to terminate or repeal the Plan in its entirety. Notwithstanding
         anything in the preceding sentence to the contrary, the Committee shall
         have the power to amend the Plan to the extent authorized by paragraph
         9.

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11.      General Provisions
         ------------------

         a. Spendthrift Provisions. The Corporation shall, except as otherwise
         provided in the Plan, pay all amounts payable hereunder only to the
         person or persons entitled thereto hereunder, and all such payments
         shall be made directly into the hands of each such person or persons
         and not into the hands of any other person whatsoever, so that said
         payments may not be liable for the debts, contracts or engagements of
         any such designated person or persons, or taken in execution by
         attachment or garnishment or by any other legal or equitable
         proceedings, nor shall any such designated person or persons have any
         right to alienate, arbitrate, execute, pledge, encumber, or assign any
         such payments or the benefits thereof. If the person entitled to
         receive payment be a minor, or a person of unsound mind, whether or not
         adjudicated incompetent, the Corporation, upon the direction of the
         Committee, may make such payments to such person or persons as may be,
         or be acting as, parent or legal or natural guardian of such infant or
         person of unsound mind. The signed receipt of such person shall be a
         full and complete discharge to the Corporation for any such payments.

         b. Participant Rights. No Participant, former Participant, person
         claiming under or through any Participant or any other person shall
         have any right or interest, whether vested or otherwise, in the Plan or
         its continuance, or in or to the payment or the continuance of any
         payments under the Plan, except with respect to payments actually
         received by the Participant or former Participant in accordance with
         the terms, conditions and provisions of the Plan in effect at the time
         any such payments were received. Any and all payments required to be
         made to Participants in accordance with the terms of the Plan shall be
         general and unsecured liabilities of the Corporation.

         c. Right of Corporation to Replace Members of the Board and Advisory
         Board; Obligations. Neither the action of the Corporation in
         establishing this Plan, nor any provisions of this Plan, shall be
         construed as giving any member of the Board or Advisory Board the right
         to be retained in such capacity and the Board or the Nominating
         Committee shall have the right at any time to replace or fail to
         renominate any member of the Board or Advisory Board without any
         liability for any claim against the Corporation for any payment
         whatsoever except to the extent provided for in this Plan. The
         Corporation has no obligation to create any other or subsequent
         retirement, deferred compensation or similar plan for members of the
         Board or Advisory Board.

         d. Independence of Benefits. The benefits payable under this Plan shall
         be independent of and in addition to any other benefits or
         compensation, whether by Retainer, salary, bonus or otherwise, payable
         under any other agreement or pension, welfare or fringe benefit plan,
         fund or program that now exists or may hereafter be established by the
         Corporation on behalf of the Participant or for its other Non Employee
         Members.

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         e. Text of Plan to Control. The headings of the paragraphs and
         subparagraphs are included solely for convenience of reference, and if
         there be any conflict between such headings and the text of this Plan,
         the text shall control. This Plan document sets forth the complete
         terms of the Plan. In the event of any discrepancies or conflicts
         between this Plan document and any summary or other information
         regarding the Plan, the terms of this Plan document shall apply and
         control.

         f. Corporate Successors. This Plan shall be binding upon the
         Corporation, its successors and assigns and the Participant and his or
         her heirs, executors, administrators and legal representatives.

         g. Applicable Law; Severability. This Plan shall be governed by and
         construed in accordance with the laws of the Commonwealth of
         Pennsylvania. If any provisions of this Plan shall be held invalid or
         unenforceable for any reason, such invalidity or unenforceability shall
         not affect the remaining provisions of this Plan, and this Plan shall
         be deemed to be modified to the least extent possible to make it valid
         and enforceable in its entirety.

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                                   APPENDIX A

Effective as of April 30, 2000, all benefits under the Plan shall be determined
in accordance with the following provisions:

1. Participation. Notwithstanding anything in the Plan to the contrary, any
individual who is a Non-Employee Member of the Board as of February 15, 2000,
shall be deemed to be a Participant in the Plan on and after February 15, 2000,
regardless of the amount of Board Service credited to such individual as of such
date. No persons not otherwise participating in the Plan in accordance with its
terms or as a result of the preceding sentence of this Appendix A shall be
entitled to participate in the Plan after February 15, 2000.

2. Retired Participants. Any Participant in the Plan who had a Termination of
Service from the Board prior to February 15, 2000 (any "Retired Participant"),
shall continue to receive a benefit in accordance with the provisions of the
Plan in effect on the date of his Termination of Service from the Board.

3. Current Participants. Any Participant in the Plan who did not have a
Termination of Service from the Board prior to February 15, 2000 (a "Current
Participant"), shall receive a benefit under the Plan, as follows:

         a. Effective as of April 30, 2000, the lump sum present value of the
         benefit accrued as of April 30, 2000, by a Current Participant who also
         is a participant in the Mellon Financial Corporation 1990 Elective
         Deferred Compensation Plan for Directors and Members of the Advisory
         Board (the "Deferred Compensation Plan") as of such date, shall be
         transferred in cash to the Deferred Compensation Plan for the benefit
         of such Current Participant.

         b. As soon as administratively feasible after April 30, 2000, the lump
         sum present value of the benefit accrued as of April 30, 2000, by a
         Current Participant who is not a participant in the Deferred
         Compensation Plan as of such date (less all applicable Federal, state
         and local income and employment taxes), shall be distributed in cash to
         such Current Participant.

         c. The amount of the monthly benefit accrued with respect to any
         Current Participant shall be determined in accordance with Section 4 of
         the Plan; provided, by way of clarification, however, that the annual
         Retainer being paid to active Non-Employee Members of the Board who
         have not incurred a termination of active membership from the Board
         prior to February 15, 2000, shall be deemed to be $30,000. The lump sum
         present value of each Current Participant's benefit shall be determined
         by first assuming that monthly payments commenced as of May 21, 2000,
         regardless of the Current Participant's age and/or the occurrence of a
         Termination of Service from the Board, and then by discounting all
         monthly payments at a rate of 7.5% per year (the FAS 87 discount rate
         for 2000).

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