Document:

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                                                                     EXHIBIT 4.1

                                 SCANSOFT, INC.

                          2000 NONSTATUTORY STOCK PLAN

        1. PURPOSES OF THE PLAN.  The purposes of this 2000 Nonstatutory Stock
Plan are:

             -  to attract and retain the best available personnel for positions
                of substantial responsibility,

             -  to provide additional incentive to Employees and Consultants,
                and

             -  to promote the success of the Company's business.

        Options granted under the Plan will be Nonstatutory Stock Options.

        2. DEFINITIONS.  As used herein, the following definitions shall
apply:

                  (a) "ADMINISTRATOR" means the Board or any of its Committees
as shall be administering the Plan, in accordance with Section 4 of the Plan.

                  (b) "APPLICABLE LAWS" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

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

                  (d) "CODE" means the Internal Revenue Code of 1986, as
amended.

                  (e) "COMMITTEE" means a committee of Directors appointed by
the Board in accordance with Section 4 of the Plan.

                  (f) "COMMON STOCK" means the common stock of the Company.

                  (g) "COMPANY" means ScanSoft, Inc., a Delaware corporation.

                  (h) "CONSULTANT" means any person, including an advisor,
engaged by the Company or a Parent or Subsidiary of the Company to render
services to such entity.

                  (i) "DIRECTOR" means a member of the Board.

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                  (j) "DISABILITY" means total and permanent disability as
defined in Section 22(e)(3) of the Code.

                  (k) "EMPLOYEE" means any person employed by the Company or any
Parent or Subsidiary of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. Neither service as a Director nor payment of a
director's fee by the Company shall be sufficient to constitute "employment" by
the Company.

                  (l) "EXERCISE PRICE" means the price at which a Share may be
purchased by an Optionee pursuant to the exercise of an Option.

                  (m) "FAIR MARKET VALUE" means, as of any date, the value of
Common Stock determined as follows:

                          (i) If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination, as reported
in The Wall Street Journal or such other source as the Administrator deems
reliable;

                          (ii) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high bid and low asked prices for
the Common Stock on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable; or

                          (iii) In the absence of an established market for
the Common Stock, the Fair Market Value shall be determined in good faith by
the Administrator.

                  (n) "NOTICE OF GRANT" means a written or electronic notice
evidencing certain terms and conditions of an individual Option grant. The
Notice of Grant is part of the Option Agreement.

                  (o) "NONSTATUTORY STOCK OPTION" means a stock option to
purchase Shares that is not intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

                  (p) "OPTION" means a Nonstatutory Stock Option granted
pursuant to the Plan.

                  (q) "OPTION AGREEMENT" means an agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant. The Option Agreement is subject to the terms and conditions of the Plan.

                  (r) "OPTION EXCHANGE PROGRAM" means a program whereby
outstanding Options are surrendered in exchange for Options with a lower
exercise price.

                  (s) "OPTIONED STOCK" means the Common Stock subject to an
Option.

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                  (t) "OPTIONEE" means the holder of an outstanding Option
granted under the Plan.

                  (u) "PARENT" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (v) "PLAN" means this 2000 Nonstatutory Stock Plan. (w)
"SERVICE PROVIDER" means an Employee, Consultant or Director.

                  (x) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

                  (y) "SUBSIDIARY" means a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Code.

        3. STOCK SUBJECT TO THE PLAN. Subject to the
provisions of Section 12 of the Plan, the maximum aggregate number of Shares
which may be optioned and sold under the Plan is 4,150,000 Shares. The Shares
may be authorized, but unissued or reacquired Common Stock.

                          (i) If an Option expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated).

        4. ADMINISTRATION OF THE PLAN.

                  (a) ADMINISTRATION. The Plan shall be administered by (i) the
Board or (ii) a Committee, which committee shall be constituted to satisfy
Applicable Laws.

                  (b) POWERS OF THE ADMINISTRATOR. Subject to the provisions of
the Plan, and in the case of a Committee, subject to the specific duties
delegated by the Board to such Committee, the Administrator shall have the
authority, in its discretion:

                           (i) to determine the Fair Market Value of the Common
Stock;

                           (ii) to select the Service Providers to whom Options
may be granted hereunder;

                           (iii) to determine whether and to what extent Options
are granted hereunder;

                           (iv) to determine the number of Shares to be covered
by each Option granted hereunder;

                           (v) to approve forms of agreement for use under the
Plan;

                           (vi) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option granted hereunder. Such
terms and conditions include, but are not limited to, the Exercise Price of any
Option, the time or times when Options may be exercised (which may be based on
performance criteria), any vesting acceleration or waiver of

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forfeiture restrictions, and any restriction or limitation regarding any Option
or the Shares relating thereto, based in each case on such factors as the
Administrator, in its sole discretion, shall determine;

                           (vii) to reduce the Exercise Price of any Option to
the then current Fair Market Value if the Fair Market Value of the Optioned
Stock has declined since the date the Option was granted;

                           (viii) to institute an Option Exchange Program;

                           (ix) to construe and interpret the terms of the Plan
and Options granted pursuant to the Plan;

                           (x) to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations relating to
sub-plans established for the purpose of qualifying for preferred tax treatment
under foreign tax laws;

                           (xi) to modify or amend each Option (subject to
Section 14(b) of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise
provided for in the Plan;

                           (xii) to authorize any person to execute on behalf of
the Company any instrument required to effect the grant of an Option previously
granted by the Administrator;

                           (xiii) to determine the terms and restrictions
applicable to Options;

                           (xiv) to allow Optionees to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined. All elections by an Optionee to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable; and

                           (xv) to make all other determinations deemed
necessary or advisable for administering the Plan.

                  (c) EFFECT OF ADMINISTRATOR'S DECISION. The Administrator's
decisions, determinations and interpretations shall be final and binding on
all Optionees and any other holders of Options.

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        5. ELIGIBILITY. Options may be granted to Service Providers except
Directors who are not Employees.

        6. LIMITATION. Neither the Plan nor any Option shall confer upon an
Optionee any right with respect to continuing the Optionee's relationship as a
Service Provider with the Company, nor shall they interfere in any way with the
Optionee's right or the Company's right to terminate such relationship at any
time, with or without cause.

        7. TERM OF PLAN. The Plan shall become effective upon its adoption by
the Board. It shall continue in effect for ten (10) years, unless sooner
terminated under Section 14 of the Plan.

        8. TERM OF OPTION. The term of each Option shall be stated in the
Option Agreement.

        9. OPTION EXERCISE PRICE AND CONSIDERATION.

                 (a) EXERCISE PRICE. The Exercise Price of the Shares to be
issued pursuant to the exercise of an Option shall be determined by the
Administrator.

                 (b) WAITING PERIOD AND EXERCISE DATES. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.

                 (c) FORM OF CONSIDERATION. The Administrator shall determine
the acceptable form of consideration for exercising an Option, including the
method of payment. Such consideration may consist entirely of:

                           (i) cash;

                           (ii) check;

                           (iii) promissory note;

                           (iv) other Shares which (A) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (B) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Shares as
to which said Option shall be exercised;

                           (v) consideration received by the Company under a
cashless exercise program implemented by the Company in connection with the
Plan;

                           (vi) a reduction in the amount of any Company
liability to the Optionee, including any liability attributable to the
Optionee's participation in any Company-sponsored deferred compensation program
or arrangement;

                           (vii) such other consideration and method of payment
for the issuance of Shares to the extent permitted by Applicable Laws; or

                           (viii) any combination of the foregoing methods of
payment.

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        10. EXERCISE OF OPTION.

                 (a) PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any
Option granted hereunder shall be exercisable according to the terms of the
Plan and at such times and under such conditions as determined by the
Administrator and set forth in the Option Agreement. An Option may not be
exercised for a fraction of a Share.

                           (1) An Option shall be deemed exercised when the
Company receives: (i) written or electronic notice of exercise (in accordance
with the terms of the Option Agreement) from the person entitled to exercise the
Option, and (ii) full payment of the aggregate Exercise Price of the Shares with
respect to which the Option is exercised (and the amount of any income or
employment tax the Company is required by law to withhold by reason of such
exercise). Full payment may consist of any consideration and method of payment
authorized by the Administrator and permitted by the Option Agreement and the
Plan. Shares issued upon exercise of an Option shall be issued in the name of
the Optionee or, if requested by the Optionee, in the name of the Optionee and
his or her spouse. Until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 12 of the Plan.

                           (2) Exercising an Option in any manner shall decrease
the number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

                 (b) TERMINATION OF RELATIONSHIP AS A SERVICE PROVIDER. If
an Optionee ceases to be a Service Provider, other than upon the
Optionee's death or Disability, the Optionee may exercise his or her Option, but
only within such period of time as is specified in the Option Agreement, and
only to the extent that the Option is vested on the date of termination (but in
no event later than the expiration of the term of such Option as set forth in
the Option Agreement). In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for three (3) months following
the Optionee's termination. If, on the date of termination, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. To the extent that the Optionee
does not exercise his or her Option within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

                  (c) DISABILITY OF OPTIONEE. If an Optionee ceases to be a
Service Provider as a result of the Optionee's Disability, the Optionee may
exercise his or her Option within such period of time as is specified in the
Option Agreement, to the extent the Option is vested on the date of termination
(but in no event later than the expiration of the term of such Option as set
forth in the Option Agreement). In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for twelve (12) months following
the Optionee's termination. If, on the date of termination, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. To the extent that the Optionee
does not exercise his or her Option within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

<PAGE>

                  (d) DEATH OF OPTIONEE. If an Optionee dies while a Service
Provider, the Option may be exercised within such period of time as is specified
in the Option Agreement (but in no event later than the expiration of the term
of such Option as set forth in the Option Agreement), by the Optionee's estate
or by a person who acquires the right to exercise the Option by bequest or
inheritance, but only to the extent that the Option is vested on the date of
death. In the absence of a specified time in the Option Agreement, the Option
shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option
shall immediately revert to the Plan. To the extent that the Optionee's estate
or a person who acquires the right to exercise the Option by bequest or
inheritance does not exercise the Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

                  (e) BUYOUT PROVISIONS. The Administrator may at any time offer
to buy out for a payment in cash or Shares, an Option previously granted based
on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

        11. NON-TRANSFERABILITY OF OPTIONS. Unless determined otherwise by
the Administrator, an Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the
laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

        12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR
ASSET SALE.

                  (a) CHANGES IN CAPITALIZATION. Subject to any required action
by the shareholders of the Company, the number of Shares covered by each
outstanding Option, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Options have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an
Option, as well as the Exercise Price of each such outstanding Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that a conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or Exercise Price of Shares subject to an Option.

                  (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator, in its discretion, may provide for an Optionee
to have the right to exercise his or her Option until ten (10) days prior to
such transaction as to all of the Optioned Stock covered thereby, including
Shares as to which the Option would not otherwise be exercisable. In addition,
the Administrator may provide that

<PAGE>

any Company repurchase option applicable to
any Shares purchased upon exercise of an Option shall lapse as to all such
Shares, provided the proposed dissolution or liquidation takes place at the time
and in the manner contemplated. To the extent it has not been previously
exercised, an Option will terminate immediately prior to the consummation of
such proposed action.

                  (c) MERGER OR ASSET SALE. In the event of a merger of the
Company with or into another corporation, or the sale of substantially all of
the assets of the Company, each outstanding Option shall be assumed or an
equivalent option or right substituted by the successor corporation or a Parent
or Subsidiary of the successor corporation. In the event that the successor
corporation refuses to assume or substitute for the Option, the Optionee shall
fully vest in and have the right to exercise the Option as to all of the
Optioned Stock, including Shares as to which it would not otherwise be vested or
exercisable. If an Option becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option shall be fully vested and exercisable for a period of fifteen (15) days
from the date of such notice, and the Option shall terminate upon the expiration
of such period. For the purposes of this paragraph, the Option shall be
considered assumed if, following the merger or sale of assets, the Option
confers the right to purchase or receive, for each Share of Optioned Stock,
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the merger or sale of
assets is not solely common stock of the successor corporation or its Parent,
the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option, for each
Share of Optioned Stock to be solely common stock of the successor corporation
or its Parent equal in fair market value to the per share consideration received
by holders of Common Stock in the merger or sale of assets.

        13. DATE OF GRANT. The date of grant of an Option shall be, for
all purposes, the date on which the Administrator makes the determination
granting such Option, or such other later date as is determined by the
Administrator. Notice of the determination shall be provided to each Optionee
within a reasonable time after the date of such grant.

        14. AMENDMENT AND TERMINATION OF THE PLAN.

                  (a) AMENDMENT AND TERMINATION. The Board may at any time
amend, alter, suspend or terminate the Plan.

                  (b) EFFECT OF AMENDMENT OR TERMINATION. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee and
the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options
granted under the Plan prior to the date of such termination.

<PAGE>

        15. CONDITIONS UPON ISSUANCE OF SHARES.

                  (a) LEGAL COMPLIANCE. Shares shall not be issued pursuant to
the exercise of an Option unless the exercise of such Option and the issuance
and delivery of such Shares shall comply with Applicable Laws and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

                  (b) INVESTMENT REPRESENTATIONS. As a condition to the exercise
of an Option the Company may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

        16. INABILITY TO OBTAIN AUTHORITY. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

        17. RESERVATION OF SHARES. The Company, during the term of this
Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan.<PAGE>

                                                                    EXHIBIT 10.1

                          SECOND MODIFICATION AGREEMENT

         THIS SECOND MODIFICATION AGREEMENT (the "Agreement") is entered into as
of the 21st day of September, 2001 between BELK, INC., a Delaware corporation
(the "Borrower"), and FIRST UNION NATIONAL BANK, a national banking association
(the "Lender").

                             INTRODUCTORY STATEMENTS

         The Borrower and the Lender are parties to that certain Letter of
Credit and Reimbursement Agreement dated as of July 1, 1998, as amended by a
Modification Agreement dated July   , 2001 and as hereafter amended, modified,
restated or supplemented (the "Reimbursement Agreement") whereby the Lender
issued a letter of credit for the benefit of the Borrower.

The Borrower desires to make loans to certain of the Borrower's shareholders, as
more particularly described in Schedule A attached hereto (the "Shareholder
Loans") and has requested that Lender consent to the Shareholder Loans.

Further, the Borrower has requested that Lender amend the Reimbursement
Agreement to increase the maximum aggregate dollar amount of transactions which
the Borrower is permitted under the Reimbursement Agreement to enter into with
its officers, directors, shareholders or affiliates during any fiscal year of
the borrower.

The Lender has agreed to consent to the Shareholder Loans pursuant to the terms
and conditions of this Second Modification Agreement. Additionally, the Borrower
and the Lender have agreed to modify the Reimbursement Agreement in the manner
set forth below.

         NOW, THEREFORE, in consideration of the mutual covenants and promises
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, each to the
other, the parties do hereby agree as follows:

         1. Effect of Agreement. This Agreement shall modify and amend the
Reimbursement Agreement as set forth herein. Except as expressly modified
hereby, the Reimbursement Agreement, including, without limitation, each
representation, warranty and covenant contained therein, shall be and remain in
full force and effect. In the event of any conflict or inconsistency between the
terms of this Agreement and the Reimbursement Agreement, this Agreement shall
control.

         2. Defined Terms. Except as otherwise provided herein, all capitalized
undefined terms used herein shall have the meanings assigned thereto in the
Reimbursement Agreement.

<PAGE>

         3. Consent. Lender hereby consents to the provision of certain
Shareholder Loans by Borrower to each of Thomas M. Belk, Jr., W.W. McKay Belk
and John R. Belk in accordance with the terms and conditions set forth in
Schedule A attached hereto.

         4. Amendment. Section 6.5 of the Reimbursement Agreement is hereby
amended by deleting the dollar amount "$2,000,000" from the seventh (7th) line
of such section and by substituting the dollar amount "$12,000,000" in its place
and stead.

         5. Representations and Warranties of the Borrower. The Borrower
represents and warrants to the Lender as follows:

                  (a) The Borrower has no defenses, offsets or counterclaims
         against the Lender relating to the Reimbursement Agreement, as modified
         by this Agreement.

                  (b) The Borrower has full power and lawful authority to
         execute and perform this Agreement and this Agreement constitutes a
         legal, valid and binding obligation of the Borrower, enforceable
         against it in accordance with its terms.

                  (c) All representations and warranties contained in the
         Reimbursement Agreement are true and correct as of the date hereof, and
         after giving effect to this Agreement, no Event of Default or event
         which, with the giving of notice or passage of time, will constitute an
         Event of Default, will exist under the Reimbursement Agreement.

         6. General Provisions.

         (a) Limited Amendment. This Agreement shall not be deemed (i) to be a
waiver of, or consent to, or a modification or amendment of, any other term or
condition of the Reimbursement Agreement or (ii) to prejudice any right or
rights which the Lender may now have or may have in the future under or in
connection with the Reimbursement Agreement or any of the instruments or
agreements referred to therein, as the same may be amended or modified from time
to time.

         (b) Counterparts. This Agreement may be executed by the parties hereto
in separate counterparts and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

         (c) Successors and Assigns. Whenever in this Agreement either of the
parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party and all covenants, provisions and
agreements by or on behalf of the Borrower shall inure to the benefit of the
successors and assigns of the Lender.

<PAGE>

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

                                       BORROWER:

                                       BELK, INC.

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

                                       LENDER:

                                       FIRST UNION NATIONAL BANK

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

<PAGE>

                                   Schedule A

                  Loans to Tim Belk, McKay Belk and Johnny Belk

RESOLVED, that it be approved for the corporation to loan to Thomas M. Belk, Jr.
the sum of Two Million Five Hundred Thousand Dollars ($2,500,000) to be repaid
in five equal annual installments beginning on January 5, 2003 with interest at
the rate of LIBOR + 150 basis points. The loan will be secured with a pledge of
the corporation's Class A common stock and may be prepaid in whole or in part at
any time without penalty. In lieu of cash, loan payments may be made though a
surrender of collateral valued on the basis of an independent appraisal.

RESOLVED, that it be approved for the corporation to loan to H.W. McKay Belk the
sum of Two Million Five Hundred Thousand Dollars ($2,500,000) to be repaid in
five equal annual installments beginning on January 5, 2003 with interest at the
rate of LIBOR + 150 basis points. The loan will be secured with a pledge of the
corporation's Class A common stock and may be prepaid in whole or in part at any
time without penalty. In lieu of cash, loan payments may be made though a
surrender of collateral valued on the basis of an independent appraisal.

RESOLVED, that it be approved for the corporation to loan to John R. Belk the
sum of Two Million Five Hundred Thousand Dollars ($2,500,000) to be repaid in
five equal annual installments beginning on January 5, 2003 with interest at the
rate of LIBOR + 150 basis points. The loan will be secured with a pledge of the
corporation's Class A common stock and may be prepaid in whole or in part at any
time without penalty. In lieu of cash, loan payments may be made though a
surrender of collateral valued on the basis of an independent appraisal.

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