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                                                                   EXHIBIT 10(Q)

                             FIRST UNION CORPORATION

                            1998 STOCK INCENTIVE PLAN
                          as amended February 20, 2001

1.       ESTABLISHMENT AND PURPOSE

         First Union Corporation, a North Carolina corporation ("First Union"),
hereby establishes an incentive compensation plan, which shall be known as the
"FIRST UNION CORPORATION 1998 STOCK INCENTIVE PLAN" (the "Plan").

         The purposes of the Plan are to (a) help align the long-term financial
interests of Participants with those of stockholders; (b) reinforce a
performance-oriented culture/strategy; (c) incent and reward employees for
increasing First Union's common stock price over time; and (d) motivate, attract
and retain the services of Participants upon whose judgment, interest and
special effort the successful conduct of First Union's operations are dependent.

2.       EFFECTIVE DATE AND DURATION OF THE PLAN

         The Plan shall become effective on April 21, 1998, subject to its
approval by the stockholders of First Union, and shall remain in effect, subject
to the right of the Board to amend or terminate the Plan at any time pursuant to
the terms hereof, until all Shares subject to it shall have been purchased or
acquired according to the Plan's provisions. In no event may an Award be granted
under the Plan after April 20, 2008. After the date on which the Plan becomes
effective, no further grants will be made under the Prior Plan.

3.       DEFINITIONS

                  (a) "1934 Act" means the Securities Exchange Act of 1934, as
         amended, including the rules and regulations promulgated thereunder.

                  (b) "Award" means, individually or collectively, an Option
         (including an ISO or an NQSO), SAR, Stock Award, any other award made
         pursuant to the terms of the Plan, or any combination thereof.

                  (c) "Award Agreement" means an agreement entered into by the
         Corporation and each Participant setting forth the terms and provisions
         applicable to Awards.

                  (d) "Beneficial Owner" or "Beneficial Ownership" shall have
         the meaning ascribed to such term in Rule 13d-3 of the General Rules
         and Regulations under the 1934 Act.

                  (e) "Board" means the Board of Directors of First Union.

                  (f) "Change of Control" means a change in control of First
         Union of a nature that would be required to be reported in response to
         Item 6(e) of Schedule 14A of Regulation 14A promulgated under the 1934
         Act; provided, however, that, without limitation, such a Change of
         Control shall be deemed to have occurred if (i) any one person, or more
         than one person acting as a group, acquires Beneficial Ownership of
         Shares that, together with Shares held by such person or group,
         possesses more than 50 percent of the total Fair Market Value or total
         voting power of the Shares, (ii) any one person, or more than one
         person acting as a group, acquires (or has acquired during the 12-month
         period ending on the date of the most recent acquisition by such person
         or persons) Beneficial Ownership of Shares possessing 20 percent or
         more of the total voting power of the Shares, or (iii) a majority of
         members of the Board is replaced during any 12-month period by
         directors whose appointment or election is not endorsed by a majority
         of the members of the Board prior to the date of such appointment or
         election.

                  (g) "Code" means the Internal Revenue Code of 1986, as amended
         (or any successor thereto), including any rules and regulations
         promulgated thereunder.

                  (h) "Committee" means the Human Resources Committee of the
         Board or such other committee as is appointed by the Board to
         administer the Plan.

                  (i) "Corporation" means (i) First Union and any entity that is
         directly or indirectly controlled by First Union, or (ii) any entity in
         which First Union has a significant equity interest, as determined by
         the Committee.

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                  (j) "Covered Officer" means, for a calendar year, a
         Participant who is one of the group of executive officers of the
         Corporation designated by the Committee in writing as "Covered
         Officers".

                  (k) "Date of Termination of Employment" means, with respect to
         an Employee who is terminating employment with the Corporation, (i) the
         last day such Employee performs actual services for the Corporation as
         an Employee, (ii) the 91st day of a bona fide leave of absence when
         such Employee's right to continue employment with the Corporation is
         not guaranteed by law or contract or, if later, on the date that such
         legal or contractual guarantee lapses, (iii) the date that such
         Employee is deemed to have a Disability, or (iv) the date of such
         Employee's death, as applicable.

                  (l) "Disability", with respect to an Employee, means having
         received long-term disability benefits under the Coporation's Long-Term
         Disability Plan for a period of 12 consecutive months.

                  (m) "Early Retirement" means termination of a Participant's
         employment upon satisfaction of the requirements for early retirement
         under First Union's pension plan.

                  (n) "Employee" means an employee of the Corporation.

                  (o) "Fair Market Value" means the closing sales price of the
         Shares on the New York Stock Exchange Composite Tape on the valuation
         date, or, if there were no sales on the valuation date, the closing
         sales price on the New York Stock Exchange Composite Tape on the first
         trading day before such valuation date.

                  (p) "First Union" is defined in Section 1 herein.

                  (q) "ISO" means an Option to purchase Shares granted under
         Section 7(a) herein, which is designated as an ISO and which is
         intended to meet the requirements of Section 422 of the Code.

                  (r) "NQSO" means an Option to purchase Shares granted under
         Section 7(a) herein, and which is not intended to meet the requirements
         of Section 422 of the Code.

                  (s) "Normal Retirement" means termination of a Participant's
         employment upon satisfaction of the requirements for normal retirement
         under the terms of First Union's pension plan.

                  (t) "Option" means an ISO or an NQSO.

                  (u) "Option Price" means the price at which a Share may be
         purchased by a Participant pursuant to an Option.

                  (v) "Participant" means an Employee of the Corporation who has
         been granted an Award under the Plan.

                  (w) "Performance-Based Exception" means the performance-based
         exception set forth in Code Section 162(m)(4)(C) from the deductibility
         limitations of Code Section 162(m).

                  (x) "Performance Goals" means performance goals based on any
         of the following criteria and established by the Committee prior to
         April 1 of each year: earnings or earnings growth; return on equity,
         assets or investment; revenues; expenses; stock price; market share;
         charge-offs; or reductions in non-performing assets. Such Performance
         Goals may be particular to an Employee or the division, department,
         branch, line of business, subsidiary or other unit in which the
         Employee works, or may be based on the performance of the Corporation
         generally.

                  (y) "Performance Stock Awards" means the Stock Awards granted
         to Covered Officers upon satisfaction of the conditions set forth in
         Section 7(c)(ii) of the Plan.

                  (z) "Period of Restriction" means the period during which the
         vesting and/or transfer of Stock Awards is limited in some way, and the
         Shares subject to such Stock Awards are subject to a substantial risk
         of forfeiture, as provided in Section 7(c) herein.

                  (aa) "Plan" is defined in Section 1 herein.

                  (bb) "Plan Year" means a twelve-month period beginning with
         January 1 of each year.

                  (cc) "Prior Plan" means the First Union 1996 Master Stock
         Compensation Plan.
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                  (dd) "RSAs" means a Stock Award granted to a Participant
         pursuant to Section 7(c) herein which contains restrictions on vesting
         and/or transfer.

                  (ee) "Retirement" means either Early Retirement or Normal
         Retirement.

                  (ff) "SAR" means an Award, granted alone or in connection with
         a related Option, designated as an SAR, pursuant to the terms of
         Section 7(b) herein.

                  (gg) "Shares" means the common stock of First Union, par value
         $3.33 1/3 per share.

                  (hh) "Stock Award" shall represent an Award made in Shares or
         denominated in units equivalent in value to Shares or any other Award
         based on or related to Shares, including, but not limited to, RSAs.

4.       PLAN ADMINISTRATION

                  (a) The Committee. The Committee shall be responsible for
         administering the Plan. If considered appropriate by the Board in light
         of applicable laws, rules, or regulations, the Committee shall be
         comprised of two or more non-employee members of the Board each of whom
         is a "Non-Employee Director" within the meaning of Rule 16b-3 under the
         1934 Act and an "outside director" within the meaning of Section 162(m)
         of the Code. Any action taken with respect to Covered Officers for
         purpose of meeting the Performance-Based Exception shall be taken by
         the Committee only if all of the members of the Committee are "outside
         directors" within the meaning of Code Section 162(m).

                  (b) Committee Authority. The Committee may at any time alter,
         amend, suspend or discontinue the Plan or any or all agreements granted
         under the Plan to the extent permitted by law. Except as limited by
         law, or by the Articles of Incorporation or By-laws of First Union, and
         subject to the provisions herein, the Committee shall have full and
         exclusive power to interpret the Plan and to adopt such rules,
         regulations, and guidelines for carrying out the Plan as it may deem
         necessary or proper, all of which powers shall be executed in the best
         interests of the Corporation and in keeping with the provisions and
         objectives of the Plan. These powers include, but are not limited to
         (i) selecting Award recipients and the extent of their participation;
         (ii) establishing all Award terms and conditions; (iii) adopting
         procedures and regulations governing Awards; and (iv) making all other
         determinations necessary or advisable for the administration of the
         Plan. In addition, except as provided herein, in First Union's Articles
         of Incorporation or By-laws, or pursuant to applicable law, the
         Committee shall have authority, in its sole discretion, to accelerate
         the date that any Award which was not otherwise exercisable or vested
         shall become exercisable or vested in whole or in part without any
         obligation to accelerate such date with respect to any other Awards
         granted to any Participant. All determinations, interpretations or
         other actions taken or made by the Committee pursuant to the provisions
         of the Plan shall be final, binding and conclusive on all persons
         interested herein.

                  The Committee may delegate to one or more officers of the
         Corporation the authority to carry out some or all of its
         responsibilities, provided that the Committee may not delegate its
         authority and powers in any way which would be inconsistent with the
         requirements of the Code or the 1934 Act. The Committee may at any time
         rescind the authority delegated to any such officers.

                  In no event shall the Committee have the right to (i) cancel
         outstanding Options or SARs for the purpose of replacing or regranting
         such Options or SARs with an Option Price that is less than the
         original Option Price of the Option or SAR, or otherwise reduce the
         Option Price, or (ii) increase the number of shares available for
         issuance in accordance with Section 6 of the Plan (except in accordance
         with Section 6(c)) without shareholder approval.

                  No member of the Committee shall be liable for any action or
         determination with respect to the Plan, and the members shall be
         entitled to indemnification and reimbursement in the manner provided in
         First Union's Articles of Incorporation. In the performance of its
         functions under the Plan, the Committee shall be entitled to rely upon
         information and advice furnished by the Corporation's officers,
         accountants, counsel and any other party the Committee deems necessary,
         and no member of the Committee shall be liable for any action taken or
         not taken in reliance upon any such advice.

5.       PARTICIPATION

         The individuals who shall be eligible to receive Awards under the Plan
shall be officers or other selected key employees of the Corporation as the
Committee shall approve from time to time.
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         In the event of a change in a Participant's duties and
responsibilities, or a transfer of the Participant to a different position, the
Committee may terminate any Award granted to such Participant or reduce the
number of Shares subject thereto commensurate with the transfer or change in
responsibility, as determined by the Committee in its discretion.

         Notwithstanding any provision of the Plan to the contrary, in order to
foster and promote achievement of the purposes of the Plan or to comply with
provisions of laws in other countries in which the Corporation operates or has
employees, the Committee, in its sole discretion, shall have the power and
authority to (i) determine which Employees (if any) employed outside the United
States are eligible or required to participate in the Plan, (ii) modify the
terms and conditions of any Awards made to such Employees, and (iii) establish
subplans, modified Option exercise and other terms and procedures to the extent
such actions may be necessary or advisable.

6.       AVAILABLE SHARES OF COMMON STOCK

                  (a)      Share Limitations. The aggregate amount of Shares
         that may be granted under the Plan shall be as follows:

                           (i)      the aggregate number of Shares as to which
                  Awards may be granted in any Plan Year shall not exceed 1.5%
                  of the total Shares outstanding as reported in the Annual
                  Report on Form 10-K of First Union for the fiscal year ending
                  immediately prior to such Plan Year;

                           (ii)     there shall be carried forward and be
                  available for Awards under the Plan in each Plan Year, in
                  addition to the Shares available for grant under Section
                  6(a)(i) above, (a) 5,000,000 Shares available for issuance
                  under the Prior Plan; (b) with respect to any succeeding Plan
                  Year, any unused portion of the limit for a Plan Year; and (c)
                  any Shares represented by Awards or portions of Awards made
                  under the Plan which are forfeited, expire, terminate or are
                  canceled or settled without issuance; provided, however, that
                  if (a) the Option Price for an Option granted under the Plan
                  is satisfied by tendering Shares or (b) an SAR is paid by
                  issuing Shares, only the net number of Shares issued shall be
                  used for determining the maximum number of Shares available
                  for issuance under the Plan;

                           (iii)    the aggregate number of Shares (prior to
                  adjustments as provided in Section 6(c)) that may be
                  represented by Awards granted to any single individual under
                  the Plan in any calendar year under Sections 7(a), (b) and (c)
                  of the Plan shall not exceed 750,000; and

                           (iv)     the aggregate number of Shares (prior to
                  adjustments as provided in Section 6(c)) that may be covered
                  by Awards made in the form of ISOs shall not exceed
                  100,000,000. Such aggregate number of Shares may be increased
                  by any Shares represented by ISOs or portions of ISOs granted
                  under the Plan which are forfeited, expire, terminate or are
                  cancelled or settled without issuance. If the Option Price for
                  an ISO granted under the Plan is satisfied by tendering
                  Shares, only the net number of Shares issued shall be used for
                  determining the maximum number of Shares in the form of ISOs
                  available for issuance under the Plan.

                  (b)      Shares not applied to limitations. The following will
not be applied to the share limitations of Section 6(a) above: (i) dividends or
dividend equivalents paid in cash in connection with outstanding Awards, (ii)
stock denominated Awards which by their terms may be settled only in cash, and
(iii) Shares and any Awards that are granted through the assumption of, or in
substitution for, outstanding Awards previously granted to Employees as the
result of a merger, consolidation, or acquisition of the employing company as
the result of which it is merged with the Corporation or becomes a subsidiary of
the Corporation.

                  (c)      Adjustments. In the event of any stock dividend,
stock split, combination or exchange of equity securities, merger,
consolidation, recapitalization, divestiture or other distribution (other than
ordinary cash dividends) of assets to stockholders, or any other change
affecting Shares or Share price, such proportionate adjustments, if any, as the
Committee in its discretion may deem appropriate to reflect such change shall be
made with respect to the limitations on the numbers of Shares that may be issued
and represented by Awards under the Plan; provided, however, that any fractional
shares resulting from any such adjustment shall be eliminated. Upon the
occurrence of any such event, the Committee may also (or in lieu of any of the
foregoing adjustments) make such other adjustments as it shall consider
appropriate to preserve the benefits or potential benefits intended to be made
available to Participants. Options granted pursuant to the Plan and described as
ISOs shall not be adjusted in a manner that causes the Options to fail to
continue to qualify as ISOs.

         The Shares subject to the provisions of the Plan shall be shares of
authorized but unissued Shares.

7.       AWARDS UNDER THE PLAN

         The types of Awards set forth in this Article 7 may be granted under
the Plan, singly, in combination or in tandem as the Committee may determine.
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         (a)      Options.

                  (i)      Grant. An Option shall represent a right to purchase
         a specified number of Shares at a stated Option Price during a
         specified time, not to exceed ten years from the date of grant, as
         determined by the Committee. The Option Price per Share for each ISO
         shall not be less than 100% of the Fair Market Value on the date of
         grant. An Option may be in the form of an ISO which is consistent with
         the applicable terms, conditions, and limitations established by the
         Code and the Committee. Each Option grant shall be evidenced by an
         Award Agreement that shall specify the Option Price, the duration of
         the Option, the number of Shares to which the Option pertains, and such
         other provisions as the Committee shall determine. The Award Agreement
         also shall specify whether the Option is intended to be an ISO or an
         NQSO. Options granted under this Section 7(a) shall be exercisable at
         such times and be subject to such restrictions and conditions as the
         Committee shall in each instance approve and which shall be set forth
         in the applicable Award Agreement, which need not be the same for each
         grant or for each Participant. Upon satisfaction of the applicable
         conditions to exercisability specified in the terms and conditions of
         the Award as set forth in the Award Agreement, the Participant shall be
         entitled to exercise the Option in whole or in part and to receive,
         upon satisfaction or payment of the Option Price in the manner
         contemplated in this Section 7(a), the number of Shares in respect of
         which the Option shall have been exercised.

                  (ii)     Exercise. Options shall be exercised by the delivery
         of a written notice of exercise to the Corporation, setting forth the
         number of Shares with respect to which the Option is to be exercised,
         accompanied by full payment for the Shares. The Shares covered by an
         Option may be purchased by methods designated by the Committee, in its
         discretion, including, but not limited to (A) a cash payment; (B)
         tendering Shares owned by the Participant, valued at the Fair Market
         Value at the date of exercise; or (C) any combination of the above. As
         soon as practicable after receipt of a written notification of exercise
         and full payment, the Corporation shall deliver to the Participant,
         Share certificates in an appropriate amount based upon the number of
         Shares purchased under the Option.

                  (iii)    Termination. If the employment of a Participant with
         the Corporation shall terminate by reason of death, Disability or
         Retirement, any then outstanding Options granted to such Participant
         shall become immediately exercisable on the Date of Termination of
         Employment. Unless the Committee determines otherwise, any such
         outstanding Options will be forfeited on the expiration date of such
         Options or within three years after the Date of Termination of
         Employment, whichever period is shorter. Unless the Committee
         determines otherwise, if the employment of a Participant with the
         Corporation shall terminate for any reason other than death, Disability
         or Retirement, (i) any then outstanding but unexercisable Options
         granted to such Participant will be forfeited on the Date of
         Termination of Employment, and (ii) any then outstanding and
         exercisable Options granted to such Participant will be forfeited on
         the expiration date of such Options or three months after the Date of
         Termination of Employment, whichever period is shorter.

                  (iv)     ISOs. In the case of any outstanding Options granted
         to a Participant that are ISOs, the tax treatment prescribed under
         Section 422 of the Code shall not be available if such Options are not
         exercised (A) within three months after the Date of Termination of
         Employment unless such termination is due to death or Disability, or
         (B) within one year after the Date of Termination of Employment due to
         Disability. If a Participant's employment is terminated due to death,
         the tax treatment prescribed under Section 422 of the Code shall be
         available if the Participant was either an Employee on the date of
         death or an Employee within the three month period prior to the date of
         death.

         (b)      SARs.

                  (i)      Grant. An SAR shall represent a right to receive a
         payment in cash, Shares, or a combination thereof, equal to the excess
         of the Fair Market Value of a specified number of Shares on the date
         the SAR is exercised over an amount which shall be no less than the
         Fair Market Value on the date the SAR was granted (or the Option Price
         for SARs granted in tandem with an Option) as set forth in the
         applicable Award Agreement. Each SAR grant shall be evidenced by an
         Award Agreement that shall specify the SAR exercise price, the duration
         of the SAR, the number of Shares to which the SAR pertains, whether the
         SAR is granted in tandem with the grant of an Option or is
         freestanding, and such other provisions as the Committee shall
         determine. SARs granted under this Section 7(b) shall be exercisable at
         such times and be subject to such restrictions and conditions as the
         Committee shall in each instance approve and which shall be set forth
         in the applicable Award Agreement, which need not be the same for each
         grant or for each Participant.

                  (ii)     Exercise. SARs shall be exercised by the delivery of
         a written notice of exercise to the Corporation, setting forth the
         number of Shares with respect to which the SAR is to be exercised. The
         date of exercise of the SAR shall be the date on which the Corporation
         shall have received notice from the Participant of the exercise of such
         SAR. SARs granted in tandem with the grant of an Option may be
         exercised for all or part of the Shares subject to the related Option
         upon the surrender of the right to exercise the equivalent portion of
         the related Option. SARs granted in tandem with the grant of an Option
         may be exercised only with respect to the Shares for which its related
         Option is then exercisable. With respect to
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         SARs granted in tandem with an ISO, (A) such SAR will expire no later
         than the expiration of the underlying ISO, (B) the value of the payout
         with respect to such SAR may be for no more than one hundred percent of
         the difference between the Option Price of the underlying ISO and the
         Fair Market Value of the Shares subject to the underlying ISO at the
         time such SAR is exercised, and (C) such SAR may be exercised only when
         the Fair Market Value of the Shares subject to the underlying ISO
         exceeds the Option Price of the ISO. SARs granted independently from
         the grant of an Option may be exercised upon the terms and conditions
         contained in the applicable Award Agreement. Notwithstanding any other
         provision of the Plan, the Committee may impose such conditions on
         exercise of an SAR (including, without limitation, the right of the
         Committee to limit the time of exercise to specified periods) as may be
         required to satisfy the requirements of Section 16 (or any successor
         law) of the 1934 Act. In the event the SAR shall be payable in Shares,
         a certificate for the Shares acquired upon exercise of an SAR shall be
         issued in the name of the Participant as soon as practicable following
         receipt of notice of exercise. No fractional Shares will be issuable
         upon exercise of the SAR and, unless provided in the applicable Award
         Agreement, the Participant will receive cash in lieu of fractional
         Shares.

                  (iii)    Termination. If the employment of a Participant with
         the Corporation shall terminate by reason of death, Disability or
         Normal Retirement, any then outstanding SARs granted to such
         Participant shall become immediately exercisable on the Date of
         Termination of Employment. Unless the Committee determines otherwise,
         any such outstanding SARs will be forfeited on the expiration date of
         such SARs or within three years after the Date of Termination of
         Employment, whichever period is shorter. Unless the Committee
         determines otherwise, if the employment of a Participant with the
         Corporation shall terminate for any reason other than death, Disability
         or Normal Retirement, (i) any then outstanding but unexercisable SARs
         granted to such Participant will be forfeited on the Date of
         Termination of Employment, and (ii) any then outstanding and
         exercisable SARs granted to such Participant will be forfeited on the
         expiration date of such SARs or three months after the Date of
         Termination of Employment, whichever period is shorter.

         (c)      Stock Awards.

                  (i)      Grant. All or any part of any Stock Award may be
         subject to conditions and restrictions established by the Committee,
         and set forth in the applicable Award Agreement, which may include, but
         are not limited to, continuous service with the Corporation, a
         requirement that Participants pay a stipulated purchase price for each
         Stock Award, the achievement of specific Performance Goals, and/or
         applicable securities laws restrictions. During the applicable Period
         of Restriction, Participants holding RSAs may exercise full voting
         rights with respect to such Shares. During the applicable Period of
         Restriction, Participants holding RSAs shall be entitled to receive all
         dividends and other distributions paid with respect to such Shares
         while they are so restricted. If any such dividends or distributions
         are paid in Shares, such Shares shall be subject to the same
         restrictions on transferability as the RSAs with respect to which they
         are paid.

                  (ii)     Performance Stock Awards. Performance Stock Awards
         will be granted to Covered Officers under the following conditions:

                           (A)      Prior to April 1 of each year, the Committee
                  shall determine the Covered Officers and the Performance Goals
                  for such year that will need to be attained in order to permit
                  Performance Stock Awards to be granted to the Covered Officers
                  in the following year; and

                           (B)      the value of Performance Stock Awards
                  granted to a Covered Officer (calculated by multiplying the
                  Fair Market Value on the date of grant times the number of
                  Shares of the Stock Award) shall equal 300% of the Covered
                  Officer's base salary for the calendar year preceding the date
                  of grant; provided, that such value may not exceed $4,500,000;
                  and provided, further, that the Committee may, in its
                  discretion, reduce the number of Shares to be granted in the
                  Performance Stock Award.

         Notwithstanding the foregoing, any Shares of restricted stock issued to
Covered Officers in 1998 pursuant to the satisfaction of the performance goal
set forth in the Prior Plan shall be issued under the Plan in accordance with
the terms, conditions and limitations set forth in the Prior Plan.

                  (iii)    Termination. Unless the Committee determines
         otherwise, if the employment of a Participant with the Corporation
         shall terminate because of Normal Retirement, Disability or death, any
         remaining Period of Restriction applicable to Stock Awards granted to
         such Participant shall automatically terminate and, except as otherwise
         provided in this Section 7(c), such Stock Awards shall be free of
         restrictions and freely transferable. Unless the Committee determines
         otherwise, if the employment of a Participant with the Corporation
         shall terminate for any reason other than death, Disability or Normal
         Retirement, then any Stock Awards subject to restrictions on the date
         of such termination shall automatically be forfeited on the Date of
         Termination of Employment and returned to the Corporation; provided,
         however, if such employment terminates due to Early Retirement or any
         involuntary termination by the Corporation, the Committee may, in

<PAGE>   7
         its sole discretion, waive the automatic forfeiture of any or all such
         Stock Awards and/or may add such new restrictions to such Stock Awards
         as it deems appropriate.

8.       DIVIDENDS AND DIVIDEND EQUIVALENTS

         The Committee may provide the Awards under Section 7(c) of the Plan
earn dividends or dividend equivalents. Such dividends or dividend equivalents
may be paid currently or may be credited to a Participant's account. Any
crediting of dividends or dividend equivalents may be subject to such
restrictions and conditions as the Committee may establish, including
reinvestment in additional Shares or Share equivalents.

9.       PAYMENTS AND PAYMENT DEFERRALS

         Payment of Awards may be in the form of cash, Shares, other Awards, or
combinations thereof as the Committee shall determine, and with such
restrictions as it may impose. The Committee also may require or permit
Participants to elect to defer the receipt or issuance of Shares from Options or
Stock Awards or the settlement of Awards in cash under such rules and procedures
as it may establish under the Plan. It also may provide that deferred
settlements of Awards include the payment or crediting of earnings on deferred
amounts. In addition, the Committee may stipulate in an Award Agreement, either
at the time of grant or by subsequent amendment, that a payment or portion of a
payment of an Award be delayed in the event that Section 162(m) of the Code (or
any successor or similar provision of the Code affecting tax deductibility)
would disallow a tax deduction by the Corporation for all or a portion of such
payment. The period of any such delay in payment shall be until the payment, or
portion thereof, is tax deductible, or such earlier date as the Committee shall
determine.

10.      TRANSFERABILITY

                  (a)      ISOs. No ISO granted under the Plan may be sold,
         transferred, pledged, assigned or otherwise alienated or hypothecated,
         other than by will or by the laws of descent and distribution. Further,
         all ISOs granted to a Participant under the Plan shall be exercisable
         during his or her lifetime only by such Participant. The foregoing
         shall also apply to all SARs granted in tandem with an ISO.

                  (b)      NQSOs and SARs. Except as otherwise provided in a
         Participant's Award Agreement, no NQSO or SAR granted under the Plan
         may be sold, transferred, pledged, assigned or otherwise alienated or
         hypothecated, other than by will or by the laws of descent and
         distribution. Further, except as otherwise provided in a Participant's
         Award Agreement, all NQSOs and SARs granted to a Participant under the
         Plan shall be exercisable during his or her lifetime only by such
         Participant.

                  (c)      Stock Awards. Stock Awards granted under the Plan may
         not be sold, transferred, pledged, assigned or otherwise alienated or
         hypothecated until the end of the applicable Period of Restriction
         established by the Committee and specified in the applicable Award
         Agreement, or upon earlier satisfaction of any other conditions, as
         specified by the Committee in its sole discretion and set forth in the
         applicable Award Agreement. All rights with respect to a Stock Award
         granted to a Participant under the Plan shall be available during his
         or her lifetime only to such Participant.

11.      CHANGE OF CONTROL

         In the event of (i) any merger, consolidation, or acquisition where the
stockholders of First Union on the effective date of such merger, consolidation,
or acquisition do not own at least 50% of the outstanding shares of voting stock
of the surviving corporation, or (ii) any Change of Control, each Award granted
under the Plan shall immediately be exercisable and/or fully vested and
nonforfeitable, as the case may be.

12.      AWARD AGREEMENTS

         Each Award under the Plan shall be evidenced by an Award Agreement
setting forth its terms, conditions, and limitations for each Award, the
provisions applicable in the event the Participant's employment terminates, and
the Corporation's authority unilaterally or bilaterally to amend, modify,
suspend, cancel, or rescind any Award. The Committee need not require the
execution of any such agreement by the recipient, in which case acceptance of
the Award by the respective Participant shall constitute agreement by the
Participant to the terms and conditions of the Awards.

13.      TAX WITHHOLDING

         The Corporation shall have the right to deduct from any settlement of
an Award made under the Plan, including the delivery of Shares, or require the
payment of, a sufficient amount to cover withholding of any federal, state or
local or other governmental
<PAGE>   8

taxes or charges required by law or such greater amount of withholding as the
Committee shall determine from time to time and as permitted or required by
applicable rules and regulations, or to take such other action as may be
necessary to satisfy any such withholding obligations. If the Committee permits
or requires Shares to be used to satisfy required tax withholding, such Shares
shall be valued at the Fair Market Value as of the tax recognition date for such
Award or such other date as may be required by applicable law, rule or
regulation. The Corporation shall have the right to effect income, social
security and medicare tax withholding and reporting as may be required under
applicable law upon the disposition by an Employee of Common Stock acquired upon
the exercise of an option qualifying as an incentive stock option under Section
422 of the Code at the time of exercise. The Corporation shall collect any
required withholding from "other earnings" of the employee. In the absence of
"other earnings" sufficient to satisfy such withholding, the employee shall
remit such amounts required to satisfy such withholding obligations to the
Corporation within 10 business days of any such notice and request for payment.

14.      OTHER BENEFIT AND COMPENSATION PROGRAMS

         Unless otherwise specifically determined by the Committee, settlements
of Awards received by Participants under the Plan shall not be deemed a part of
a Participant's regular, recurring compensation for purposes of calculating
payments or benefits from the Corporation's benefit plans or severance program.
Further, the Corporation may adopt other compensation programs, plans or
arrangements as it deems appropriate or necessary. The Committee may permit a
Participant to defer such Participant's receipt of the payment of cash or the
delivery of Shares that would otherwise be due to such Participant by virtue of
the exercise of an Option or SAR, or the satisfaction of conditions, lapse or
waiver of restrictions with respect to Stock Awards. If any such deferral
election is required or permitted, the Committee shall, in its sole discretion,
establish rules and procedures for such payment deferrals.

15.      UNFUNDED PLAN

         Unless otherwise determined by the Committee, the Plan shall be
unfunded and shall not create (or be construed to create) a trust or a separate
fund or funds. The Plan shall not establish any fiduciary relationship between
the Corporation and any participant or other person. To the extent any person
holds any rights by virtue of an Award granted under the Plan, such rights shall
constitute general unsecured liabilities of the Corporation and shall not confer
upon any participant any right, title, or interest in any assets of the
Corporation.

16.      REGULATORY APPROVALS

         The implementation of the Plan, the granting of any Award under the
Plan, and the issuance of Shares upon the exercise or settlement of any Award
shall by subject to the Corporation's procurement of all approvals and permits
required by regulatory authorities having jurisdiction over the Plan, the Awards
granted under it, or the Shares issued pursuant to it.

17.      RIGHTS AS A STOCKHOLDER

         A Participant shall have no rights as a stockholder with respect to
Shares covered by an Award until the date the Participant or his nominee is the
holder of record. No adjustment will be made for dividends or other rights for
which the record date is prior to such date, except as provided in Section 6(c).

18.      FUTURE RIGHTS

         No person shall have any claim or right to be granted an Award, and the
grant of an Award shall not be construed as giving a Participant the right to be
retained in the employ of the Corporation or to participate in any other
compensation or benefit plan, program or arrangement of the Corporation. In
addition, the Corporation expressly reserves the right at any time to dismiss a
Participant free from any liability or any claim under the Plan, except as
provided herein or in any agreement entered into hereunder.

19.      GOVERNING LAW

         The Plan and all agreements entered into under the Plan shall be
construed in accordance with and governed by the laws of the State of North
Carolina.

20.      SUCCESSORS AND ASSIGNS

         The Plan and any applicable Award Agreement entered into under the Plan
shall be binding on all successors and assigns of a Participant, including,
without limitation, the estate of such Participant and the executor,
administrator or trustee of such estate, or any receiver or trustee in
bankruptcy or representative of the Participant's creditors.
<PAGE>   9

21.      INDEMNIFICATION

         Each person who is or shall have been a member of the Committee or of
the Board shall be indemnified and held harmless by the Corporation against and
from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him in connection with or resulting from any claim,
action, suit, or proceeding to which he may be a party or in which he may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him in settlement thereof, with the
Corporation's approval, or paid by him in satisfaction of any judgment in any
such action, suit, or proceeding against him, provided he shall give the
Corporation an opportunity, at its own expense, to handle and defend the same
before he undertakes to handle and defend it on his own behalf. The foregoing
right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under First Union's
Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Corporation may have to indemnify them or hold them harmless.

22.      APPLICATION OF FUNDS

         The proceeds received by the Corporation from the issuance of Shares
pursuant to the exercise of Options will be used for general corporate purposes.<PAGE>   1
                                                                   EXHIBIT 10(T)

                             FIRST UNION CORPORATION

                        SENIOR MANAGEMENT INCENTIVE PLAN

1.       Purpose. The purpose of the First Union Corporation Senior Management
         Incentive Plan is to retain and motivate key executives of First Union
         (as defined herein) by providing them with the opportunity to earn
         incentive awards based upon the extent to which specified performance
         goals for a Performance Period (as defined herein) have been achieved
         or exceeded.

2.       Definitions. As used in the Plan, the following terms shall have the
         following meanings:

         (a)      "1934 Act" means the Securities Exchange Act of 1934, as
                  amended, including the rules and regulations promulgated
                  thereunder.

         (b)      "Annual Base Salary" means the amount of base salary paid to a
                  Participant for a calendar year. This amount may be adjusted
                  to include the amount of any base salary deferrals for such
                  year, unless the Committee specifies otherwise at the time
                  that the Participant's award opportunity for a Performance
                  Period is established.

         (c)      "Applicable Period" means, with respect to any Performance
                  Period, a period commencing on or before the first day of the
                  Performance Period and ending the earlier of (i) the 90 days
                  after the commencement of the Performance Period or (ii) the
                  date on which 25% of the Performance Period has been
                  completed. Any action required within such period may be taken
                  at a later date if U.S. Treasury regulations under Section
                  162(m) of the Internal Revenue Code are amended or interpreted
                  to permit a later date.

         (d)      "Board" means the Board of Directors of the Company.

         (e)      "Change of Control" means a change in control of the Company
                  of a nature that would be required to be reported in response
                  to Item 6(e) of Schedule 14A of Regulation 14A promulgated
                  under the 1934 Act; provided, however, that, without
                  limitation, such a Change of Control shall be deemed to have
                  occurred if (i) any one person, or more than one person acting
                  as a group, acquires "beneficial ownership" (as defined in
                  Rule 13d-3 of the 1934 Act) of shares of the Company's common
                  stock that, together with shares held by such person or group,
                  possesses more than 50 percent of the total fair market value
                  or total voting power of the shares of Company common stock
                  outstanding, (ii) any one person, or more than one person
                  acting as a group, acquires (or has acquired during the
                  12-month period ending on the date of the most recent
                  acquisition by such person or persons) "beneficial ownership"
                  of shares of Company common stock possessing 20 percent or
                  more of the total voting power of the shares of Company common
                  stock outstanding, or (iii) a majority of members of the Board
                  is replaced during any 12-month period by directors whose
                  appointment or election is not endorsed by a majority of the
                  members of the Board prior to the date of such appointment or
                  election.

         (f)      "Code" means the Internal Revenue Code of 1986, as amended
                  from time to time.

         (g)      "Committee" means the Human Resources Committee of the Board
                  or a subcommittee thereof that is comprised solely of two or
                  more non-employee directors (each of whom is intended to
                  qualify as an "outside director" within the meaning of Section
                  162(m) of the Code).

         (h)      "Company" means First Union Corporation, a corporation
                  organized under the laws of the State of North Carolina,
                  including any successor thereto.

         (i)      "Disability" means, with respect to an Employee, having
                  received long-term disability benefits under the Company's
                  Long-Term Disability Plan for a period of 12 consecutive
                  months.

         (j)      "Early Retirement" means termination of a Participant's
                  employment upon satisfaction of the requirements for early
                  retirement under the Company's pension plan.

         (k)      "Executive Officers" means those officers of the Company, as
                  designated from time to time by the Board, who are deemed to
                  come within the definitions set forth in Rule 3b-7 under the
                  1934 Act.

<PAGE>   2

         (l)      "First Union" means (i) the Company and (ii) any entity that
                  is directly or indirectly controlled by the Company.

         (m)      "Individual Award Opportunity" means the potential of a
                  Participant to receive an incentive award if the performance
                  goals for a Performance Period have been satisfied. An
                  Individual Award Opportunity may be expressed in dollars, as a
                  percent of annual base salary or on a formula basis that is
                  consistent with the provisions of the Plan.

         (n)      "Negative Discretion" means the discretion authorized under
                  the Plan that may be exercised by the Committee to eliminate,
                  or reduce the size of, an incentive award otherwise payable to
                  a Participant for a Performance Period. The exercise of this
                  discretion must be consistent with the Plan qualifying as
                  "performance-based compensation" under Section 162(m) of the
                  Code.

         (o)      "Normal Retirement" means termination of a Participant's
                  employment upon satisfaction of the requirements for normal
                  retirement under the terms of the Company's pension plan.

         (p)      "Operating Income" means the reported net income applicable to
                  the Company's common stockholders excluding reported (i)
                  extraordinary gains or losses or as a result of changes in
                  accounting principles, (ii) restructuring, merger-related or
                  restructuring-related charges, and (iii) similar one-time
                  accounting or operational charges.

         (q)      "Participant" means, for any given Performance Period, each
                  key employee of First Union who is an Executive Officer or is
                  recommended by the CEO and approved by the Committee to be a
                  Participant in the Plan for an identified Performance Period.

         (r)      "Performance Measures and Goals" means the objective
                  performance goals including, but not limited to, financial and
                  non-financial measures, established and approved by the
                  Committee for purposes of developing the size of incentive
                  awards under the Plan.

         (s)      "Performance Period" means any period commencing on or after
                  January 1, 2001, for which performance goals are established
                  pursuant to Section 5 of the Plan and during which performance
                  shall be measured to determine if any payment will be made
                  under the Plan. A Performance Period may be coincident with
                  one or more fiscal years of the Company, or a portion thereof.

         (t)      "Plan" means First Union Corporation's Senior Management
                  Incentive Plan as set forth herein, and as it may be amended.

         (u)      "Retirement" means either Early Retirement or Normal
                  Retirement.

3.       Administration.

         (a)      General. The Plan shall be administered by the Committee
                  subject to the terms of the Plan and applicable law including,
                  but not limited to, Section 162(m) of the Code. In addition to
                  any other express powers and authorizations conferred on the
                  Committee by the Plan, the Committee shall have the full power
                  and authority, in its discretion:

                  (i)      to designate, within the Applicable Period, the
                           Participants in the Plan and their Individual Award
                           Opportunities for the Performance Period;

                  (ii)     to establish, within the Applicable Period, and
                           thereafter administer the performance goals and other
                           award terms and conditions that are to apply under
                           the Plan for the Performance Period;

                  (iii)    to determine and certify (A) any amounts earned for
                           any Performance Period, based on actual performance
                           versus the performance goals set for such period, in
                           writing prior to the payment of any incentive awards
                           and (B) that any other material terms applicable to
                           incentive awards have also been satisfied;

                  (iv)     to decide, within the Applicable Period, the extent
                           to which the grant or payment of any incentive award
                           hereunder shall be made to a Participant in the event
                           of (A) the Participant's termination of employment
                           due to death, Disability, Retirement or other
                           termination of employment with First Union, (B) the
                           occurrence of a Change of Control or (C) the
                           occurrence of any merger, consolidation, or
                           acquisition where the Company's stockholders on the
                           effective date of such merger, consolidation, or
                           acquisition do not own at least 50% of the
                           outstanding shares of voting stock of the surviving
                           corporation;

<PAGE>   3
                  (v)      to decide under what circumstances and terms,
                           incentive awards are to be paid on a deferred basis,
                           including automatic deferrals at the Committee's
                           election, as well as elective deferrals at the
                           election of any Participant;

                  (vi)     to adopt, revise, suspend, waive or repeal, when and
                           as appropriate, in its sole and absolute discretion,
                           such administrative rules, guidelines and procedures
                           for the Plan as it deems necessary or advisable to
                           implement the terms and conditions of the Plan;

                  (vii)    to interpret and administer the terms and provisions
                           of the Plan and any incentive award granted under the
                           Plan (including reconciling any inconsistencies,
                           correcting any defaults and addressing any omissions
                           in the Plan or any related instrument or agreement);
                           and

                  (viii)   to otherwise supervise the administration of the
                           Plan.

                  It is intended that all amounts payable to Participants under
                  the Plan who are "covered employees" within the meaning of
                  U.S. Treasury Regulation 1.162-27(c)(2) shall constitute
                  "qualified performance-based compensation" within the meaning
                  of U.S. Treasury Regulation 1.162-27(e), and, to the maximum
                  extent possible, the Plan and the terms of any awards
                  thereunder shall be so interpreted and construed.

         (b)      Binding Nature of Committee Decisions. Unless otherwise
                  expressly provided in the Plan, all designations,
                  determinations, interpretations and other decisions made under
                  or with respect to the Plan or any award under the Plan shall
                  be within the sole and absolute discretion of the Committee,
                  and shall be final, conclusive and binding on all persons,
                  including First Union, any Participant, and any beneficiary or
                  other person having, or claiming, any rights under the Plan.

         (c)      Delegation. The Committee may delegate to one or more officers
                  or employees of the Company the authority, subject to such
                  terms as the Committee shall determine, to perform such
                  functions, including the Committee's functions under the Plan,
                  as the Committee may determine, except that the Committee may
                  not delegate its authority for actions which would cause
                  awards intended to qualify as "performance-based compensation"
                  under Section 162(m) of the Code to fail to so qualify. In the
                  case of any such delegation, references to the Committee
                  herein shall be deemed to include any person to whom authority
                  has been delegated, unless the context otherwise requires.

         (d)      Limitation of Liability. The Committee, each member thereof,
                  and any other person acting pursuant to authority delegated by
                  the Committee shall be entitled, in good faith, to rely or act
                  upon any report or other information furnished by any officer
                  or employee of the Company, the Company's independent
                  auditors, consultants or any other agents assisting in the
                  administration of the Plan. Members of the Committee or any
                  other person acting pursuant to authority delegated by the
                  Committee, and any officer or employee of the Company acting
                  at the direction or on behalf of the Committee or other
                  delegee shall not be personally liable for any action or
                  determination taken or made in good faith with respect to the
                  Plan, and shall, to the extent permitted by law, be fully
                  indemnified and protected by the Company with respect to any
                  such action or determination.

         (e)      Indemnification. Each person who is or shall have been a
                  member of the Committee or of the Board shall be indemnified
                  and held harmless by the Company against and from any loss,
                  cost, liability, or expense that may be imposed upon or
                  reasonably incurred by him in connection with or resulting
                  from any claim, action, suit, or proceeding to which he may be
                  a party or in which he may be involved by reason of any action
                  taken or failure to act under the Plan and against and from
                  any and all amounts paid by him in settlement thereof, with
                  the Company's approval, or paid by him in satisfaction of any
                  judgment in any such action, suit, or proceeding against him,
                  provided he shall give the Company an opportunity, at its own
                  expense, to handle and defend the same before he undertakes to
                  handle and defend it on his own behalf. The foregoing right of
                  indemnification shall not be exclusive of any other rights of
                  indemnification to which such persons may be entitled under
                  the Company's Articles of Incorporation or Bylaws, as a matter
                  of law, or otherwise, or any power that the Company may have
                  to indemnify them or hold them harmless.

4.       Plan Participation.

         (a)      Annual Participant Designations by Committee. For each
                  Performance Period, the Committee, in its sole and absolute
                  discretion, within the Applicable Period, shall designate
                  those key employees of First Union who shall be Participants
                  in the Plan for such Performance Period. Such designations
                  shall be made by the Committee, in its sole and absolute
                  discretion, based primarily on its determination as to which
                  key employees:

<PAGE>   4

                  (i)      are likely to be Executive Officers of the Company as
                           of the last day of the fiscal year for which the
                           Company would be entitled to a federal tax deduction
                           for payment of the award in respect of such
                           Performance Period; and

                  (ii)     are likely to be "covered employees" (within the
                           meaning of Section 162(m)(3) of the Code) of the
                           Company and to have individual compensation in excess
                           of $1 million, excluding compensation that would be
                           considered "performance-based" for purposes of
                           Section 162(m);

                  as well as such other considerations as the Committee deems
                  appropriate, in its sole and absolute discretion.

         (b)      Other Plan Participation. Notwithstanding any provision in any
                  other plan of incentive compensation of the Company, an
                  employee who is a Participant in the Plan for any given
                  Performance Period shall not participate in any other plan
                  during a Performance Period if participation would cause any
                  award hereunder to fail to qualify as "performance-based"
                  under Section 162(m).

5.       Performance Measures and Goals.

         (a)      Establishing Performance Goals. For each Performance Period,
                  the Committee shall establish, within the Applicable Period,
                  one or more objective performance measures and specific goals
                  for each Participant and/or each group of Participants. Such
                  goals shall be based exclusively on one or more of the
                  following objective corporate-wide, subsidiary, division or
                  operating unit measures:

                  (i)      financial criteria - consisting of one or more
                           objectives including earnings per share, economic
                           profit, shareholder value added, return on equity,
                           return on assets, net income, pre-tax net income,
                           operating income, or revenue growth; and

                  (ii)     strategic business criteria - consisting of one or
                           more objectives based on achieving specified goals
                           related to employee satisfaction and retention,
                           customer satisfaction, leadership and core values.

         (b)      The Committee may specify, within the Applicable Period, the
                  definition of these terms as well as any adjustments that may
                  be made in their calculation. Each goal may be expressed on an
                  absolute or relative basis, may include comparisons based on
                  current internal targets, the past performance of the Company
                  (including the performance of one or more subsidiaries,
                  divisions, and/or operating units) and/or the past or current
                  performance of other companies.

         (c)      Impact of Extraordinary Items or Changes in Accounting. The
                  measures utilized in establishing performance goals under the
                  Plan for any given Performance Period shall be determined in
                  accordance with generally accepted accounting principles and
                  in a manner consistent with the methods used in the Company's
                  audited financial statements, and may exclude the items
                  excluded in determining Operating Income.

6.       Incentive Award Opportunities and Awards.

         (a)      Setting of Individual Award Opportunities. At the time
                  performance goals are established for a Performance Period,
                  the Committee also shall establish an Individual Award
                  Opportunity for such Performance Period for each Participant
                  or group of Participants. This Individual Award Opportunity,
                  which shall be based on the achievement of one or more of the
                  stated performance goals, may be expressed in dollars, as a
                  multiple of salary or on a formula basis. The Committee, in
                  all cases, shall have the sole and absolute discretion, based
                  on such factors as it deems appropriate, to apply Negative
                  Discretion to reduce the actual incentive awards that would
                  otherwise be payable to any Participant.

         (b)      Maximum Individual Award Opportunity. Notwithstanding any
                  other provision of the Plan, the maximum Individual Award
                  Opportunity under the Plan for any Participant in any one
                  calendar year shall be 0.25% of the Company's Operating Income
                  for the applicable Performance Period.

         (c)      Incentive Awards. Incentive awards determined under the Plan
                  for a Performance Period shall be paid to Participants in cash
                  or in shares of Company common stock or in any other form of
                  cash or stock as determined by the Committee as soon as
                  practicable following the end of the Performance Period to
                  which they apply, provided:

                  (i)      that no such payment shall be made unless and until
                           the Committee, based on the Company's audited
                           financial results for such Performance Period (as
                           prepared and reviewed by the Company's independent

<PAGE>   5

                           public accountants), has certified in writing the
                           extent to which the applicable performance goals for
                           such Performance Period have been satisfied, and the
                           Committee has made its decisions regarding whether it
                           will exercise Negative Discretion to reduce any
                           incentive award;

                  (ii)     that the Committee may specify that a portion of the
                           actual incentive award for any given Performance
                           Period shall be paid on a deferred basis, based on
                           such award payment rules as the Committee may
                           establish for such Performance Period;

                  (iii)    that the Committee may require, within the Applicable
                           Period, that Participants must still be employed as
                           of the end of such Performance Period or such later
                           date that is identified in order to be eligible to
                           receive any award;

                  (iv)     that the Committee may, subject to Section 6(c)(i) of
                           the Plan, adopt such forfeiture, pro-ration or other
                           rules as it sees appropriate regarding the affect of
                           certain events on the actual incentive awarded
                           including, but not limited to, a Participant's death,
                           Disability, Retirement, or voluntary or other
                           termination; and

                  (v)      that in the case of shares and share-based awards,
                           the issuance of the shares or awards is authorized
                           under the applicable stock incentive plan maintained
                           by the Company and has been approved by any other
                           committee or body necessary to authorize the award
                           under such other plan. In such case, any shares of
                           Company common stock issued in connection with such
                           award will count against the aggregate number of
                           shares reserved and available for issuance under such
                           other plan in accordance with the applicable
                           provisions thereof. Unless otherwise specifically
                           authorized by the Committee, any such authorization
                           relating to a "covered employee" shall be undertaken
                           at such time and on such terms as will ensure that
                           the award hereunder and any award granted under such
                           other plan will continue to qualify as
                           "performance-based compensation" for purposes of
                           Section 162(m) of the Code or will not otherwise
                           result in payment of compensation for which the
                           Company may not claim a tax deduction under Section
                           162(m) of the Code.

7.       Discretionary Pool.

         Upon such terms and conditions as the Committee may impose and upon the
         achievement of such Performance Measures and Goals as the Committee may
         determine, the Company shall fund a bonus pool which may be allocated
         to Participants in the sole discretion of the Chief Executive Officer
         of the Company. Notwithstanding the foregoing, no award from such bonus
         pool shall be made to a Participant (a) which, together with other
         awards to such Participant, exceeds the limitations established in
         Section 6(b) of the Plan, (b) which exceeds 25% of such Participant's
         Individual Award Opportunity, or (c) if such Participant is a "covered
         employee" under the Code and such payment causes any other payment
         under the Plan to fail to qualify as tax deductible under Section
         162(m) of the Code.

8.       General Provisions.

         (a)      Plan Amendment or Termination. The Committee at any time may
                  amend or terminate the Plan, provided (i) that, without the
                  Participant's written consent, no such amendment or
                  termination shall adversely affect the right of any
                  Participant to receive an incentive award for a Performance
                  Period in effect as of the effective date of such amendment or
                  termination and (ii) that the Board shall be authorized to
                  make any amendments necessary to comply with applicable
                  regulatory requirements (including without limitation, Section
                  162(m) of the Code).

         (b)      Applicable Law. All issues arising under the Plan shall be
                  governed by, and construed in accordance with, the laws of the
                  State of North Carolina.

         (c)      Tax Withholding. The Company shall have the right to deduct
                  from any payment of any award a sufficient amount to cover
                  withholding of any federal, state or local or other
                  governmental taxes or charges required by law or such greater
                  amount of withholding as the Committee shall determine from
                  time to time and as permitted or required by applicable rules
                  and regulations, or to take such other action as may be
                  necessary to satisfy any such withholding obligations.

         (d)      No Employment Right Conferred. Participation in the Plan shall
                  not confer on any Participant the right to remain employed by
                  the Company, and the Company specifically reserves the right
                  to terminate any Participant's employment at any time with or
                  without cause or notice.

         (e)      Impact of Plan Award on Other Plans. Incentive awards
                  hereunder shall not be treated as compensation for purposes of
                  any other compensation or benefit plan, program or arrangement
                  of the Company, unless either (i) such other

<PAGE>   6

                  plan, program or arrangement provides that compensation as
                  incentive awards are to be considered as compensation
                  thereunder or (ii) the Board or the Committee so determines in
                  writing.

                  Neither the adoption of the Plan nor the submission of the
                  Plan to the Company's stockholders for their approval shall be
                  construed as limiting the power of the Board or the Committee
                  to adopt such other incentive arrangements as it may otherwise
                  deem appropriate.

         (f)      Costs and Expenses. All award and administrative costs and
                  expenses of the Plan shall be borne by the Company.

         (g)      Non-Transferability of Rights. Except as and to the extent
                  required by law, a Participant's rights under the Plan may not
                  be assigned or transferred in whole or in part either directly
                  or by operation of law.

         (h)      Binding Effect. The Plan shall be binding upon the Company and
                  its successors. If the Company becomes a party to any merger,
                  consolidation or reorganization, then the Plan shall remain in
                  full force and effect as an obligation of the Company.

         (i)      Unfunded Plan. Unless otherwise determined by the Committee,
                  the Plan shall be unfunded and shall not create (or be
                  construed to create) a trust or a separate fund or funds. The
                  Plan shall not establish any fiduciary relationship between
                  the Company and any Participant or other person. To the extent
                  any person holds any rights by virtue of an award, such rights
                  shall constitute general unsecured liabilities of the Company
                  and shall not confer upon any such person any right, title, or
                  interest in any assets of the Company.

         (j)      Deferrals of Awards. If permitted by the Committee, a
                  Participant may elect to defer payment of a cash award under
                  the Plan if deferral of an award under the Plan is permitted
                  pursuant to the terms of a deferred compensation program of
                  the Company existing at the time the election to defer is
                  permitted to be made, and the Participant complies with the
                  terms of such program.

9.       Effective Date.

         The Plan is effective for Performance Periods commencing on or after
         January 1, 2001, subject to stockholder approval of the Plan. No
         payments shall be made under the Plan prior to the time such
         stockholder approval is obtained in accordance with applicable law.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]