Document:

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                                                                    EXHIBIT 10.2

     June 24, 2002

     Mr. E. Larry Ryder
     Executive Vice President-Finance &
      Administration
     Hooker Furniture Corporation
     Post Office Box 4708
     Martinsville, VA  24115

     Dear Larry:

     Branch Banking and Trust Company ("Bank") is pleased to increase its line
     of credit from $20,000,000 to $30,000,000 to accommodate the issuance of
     Letters of Credit on behalf of Hooker Furniture Corporation. Terms and
     conditions of this commitment are as follows:

     Borrower:  The Borrower shall be Hooker Furniture Corporation.

     Purpose:  The line of credit shall be used exclusively for the issuance of
     Commercial Letters of Credit as required in normal operations.

     Amount:  The maximum amount of this line of credit shall be Thirty Million
     Dollars ($30,000,000).

     Term:  This commitment shall be outstanding until April 30, 2003, at which
     time it will expire and be subject to review. All Letters of Credit issued
     under this line shall remain in force until their respective dates of
     expiration.

     Advances/Repayment:  Each Letter of Credit will be issued under the
     $30,000,000 Promissory Note to be executed by Borrower. Any advance of
     funds by BB&T resulting from the issuance of Letters of Credit shall be
     repayable upon demand.

     Interest Rate:  The Promissory Note backing Letters of Credit issued under
     this line shall bear interest at BB&T's Prime Rate adjusted daily as prime
     changes.

     Collateral:  Unsecured.

     Fees:  Hooker Furniture Corporation and BB&T International Services
     Division shall agree upon all fees.

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June 24, 2002
Page 2

Financial Reporting: The Borrower shall furnish to BB&T an audited Annual Report
within 120 days of each fiscal year end and quarterly unaudited financial
statements within 45 days of each fiscal quarter end.

Other: The Borrower must at all times maintain a financial condition
satisfactory to BB&T, including no events of default with other lenders. Any
such event of default, notice of which must be given to BB&T immediately,
constitutes and event of default under this commitment.

Larry, we sincerely appreciate your business and look forward to continuing our
mutually beneficial relationship with Hooker Furniture. If the terms of our
commitment described above are acceptable, please indicate by signing, dating,
and returning the original of this letter to my attention before July 15, 2002.

Thank you for your assistance in this request. If you have any questions or
concerns, please give me a call at 666-3257.

Sincerely,

/s/ Scott Taylor
--------------------------
Scott Taylor
City Executive

                               Accepted this 24th day of June, 2002

                               HOOKER FURNITURE CORPORATION

                               By: /s/ E. Larry Ryder
                                  ----------------------------------------------
                                       E. Larry Ryder
                               Title: Executive Vice President-Finance &
                                      Administration

                               By: /s/ Robert W. Sherwood
                                  ----------------------------------------------
                                       Robert W. Sherwood
                               Title: Vice President - Credit, Secretary, &
                                      Treasurer

<PAGE>

                                      BB&T
                                 PROMISSORY NOTE

Borrower: Hooker Furniture Corporation
Account Number: 9530265983                           Note Number: 90002
Address: P.O. Box 4708                                       Date: June 24, 2002
         Martinsville, Virginia  24115

THE UNDERSIGNED REPRESENTS THAT THE LOAN EVIDENCED HEREBY IS BEING OBTAINED FOR
BUSINESS/COMMERCIAL OR AGRICULTURAL PURPOSES. For value received, the
undersigned, jointly and severally, if more than one, promises to pay to BRANCH
BANKING AND TRUST COMPANY OF VIRGINIA, a Virginia banking corporation (the
"Bank"), or order, at any of Bank's offices in the above referenced city (or
such other place or places that may be hereafter designated by Bank), the sum of
Thirty Million Dollars and no/100th ($30,000,000.00), in immediately available
coin or currency of the United States of America.

Interest shall accrue from the date hereof on the unpaid principal balance
outstanding from time to time at the:

..    Variable rate of the Bank's Prime Rate per annum to be adjusted daily as
     the Bank's Prime Rate changes.

Principal and interest is payable as follows:

..    Principal plus accrued interest is due in full on demand. Prior to an event
     of default, Borrower may borrow, repay, and reborrow hereunder pursuant to
     the terms of the Commitment Letter, hereinafter defined.

     In addition, the undersigned promises to pay to Bank, or order, a late fee
in the amount of four percent (4%) of any installment past due for fifteen (15)
or more days. When any installment payment is past due for fifteen (15) or more
days, subsequent payments shall first be applied to the past due balance. All
interest shall be computed and charged for the actual number of days elapsed on
the basis of a year consisting of three hundred sixty (360) days. In the event
periodic accruals of interest shall exceed any periodic fixed payment amount
described above, the fixed payment amount shall be immediately increased, or
additional supplemental interest payments required on the same periodic basis as
specified above (increased fixed payments or supplemental payments to be
determined in the Bank's sole discretion), in such amounts and at such times as
shall be necessary to pay all accruals of interest for the period and all
accruals of unpaid interest from previous periods. Such adjustments to the fixed
payment amount or supplemental payments shall remain in effect for so long as
the interest accruals shall exceed the original fixed payment amount and shall
be further adjusted upward or downward to reflect changes in the variable
interest rate. In no event shall the fixed payment amount be reduced below the
original fixed payment amount specified above.

This note ("NOTE") is given by the undersigned in connection with the following
agreements (if any) between the undersigned and the Bank:

..    Commitment Letter dated June 24, 2002, executed by Hooker Furniture
     Corporation.

     All of the terms, conditions and covenants of the above described
agreements (the "Agreements") are expressly made a part of this Note by
reference in the same manner and with the same effect as if set forth herein at
length and any holder of this Note is entitled to the benefits of and remedies
provided in the Agreements and any other agreements by and between the
undersigned and the Bank.

     In addition to collateral pledged pursuant to the terms of the Agreements
(if any) described above, the undersigned, as collateral security for the
indebtedness evidenced by this note, hereby grants the Bank a security interest
and lien in and to all deposit accounts, certificates of deposit, securities and
stocks now or hereafter in Bank's possession or on deposit with the Bank.

     If any stock or securities are pledged to Bank herein, the security
interest includes all stock splits, reissued shares, substituted shares, and all
proceeds thereof, which the undersigned promises to deliver to Bank.

     No delay or omission on the part of the holder in exercising any right
hereunder shall operate as a waiver of such right or of any other right of such
holder, nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or of any other right on any future occasion. Every
one of the undersigned and every endorser or guarantor of this note regardless
of the time, order or place of signing waives presentment, demand, protest and
notices of every kind and assents to any one or more extensions or postponements
of the time of payment or any other indulgences, to any substitutions, exchanges
or releases of collateral if at any time there be available to the holder
collateral for this note, and to the additions or releases of any other parties
or persons primarily or secondarily liable.

     The failure to pay any part of the principal or interest when due on this
Note or to fully perform any covenant, obligation or warranty on this or on any
other liability to the Bank by any one or more of the undersigned, by any
affiliate of the undersigned (as defined in 11 USC Section (101) (2)), or by any
guarantor or surety of this Note (said affiliate, guarantor, and surety are
herein called Obligor), or if any financial statement or other representation
made to the Bank by any of the undersigned or any Obligor shall be found to be
materially incorrect or incomplete, or in the event the default pursuant to any
of the Agreements or any other obligation of any of the undersigned or any
Obligor in favor of the Bank, or in the event the Bank demands that the
undersigned secure or provide additional security for its obligations under this
Note and security deemed adequate and sufficient by the Bank is not given when
demanded, or in the event one or more of the undersigned or any Obligor shall
die, terminate its existence, allow the appointment of a receiver for any part
of its property, make an assignment for the benefit of creditors, or where a
proceeding under bankruptcy or insolvency laws is initiated by or against any of
the undersigned or any Obligor, or in the event the Bank should otherwise deem
itself, its security interest, or any collateral unsafe or insecure; or should
the Bank in good faith believe that the prospect of payment or other performance
is impaired, or if there is an attachment, execution, or other judicial seizure
of all or any portion of the Borrower's or any Obligor's assets, including an
action or proceeding to seize any funds on deposit with the

                                   Page 1 of 2

<PAGE>

Bank, and such seizure is not discharged within 20 days, or if final judgment
for the payment of money shall be rendered against the Borrower or any Obligor
which is not covered by insurance and shall remain undischarged for a period of
30 days unless such judgment or execution thereon is effectively stayed, or the
termination of any guaranty agreement given in connection with this Note, then
any one of the same shall be a material default hereunder and this Note and
other debts due the Bank by any one or more of undersigned shall immediately
become due and payable without notice, at the option of the Bank. From and after
any event of default hereunder, interest shall accrue on the sum of the
principal balance and accrued interest then outstanding at the variable rate
equal to the Bank's Prime Rate plus 5% per annum ("Default Rate"), provided that
such rate shall not exceed at any time the highest rate of interest permitted by
the laws of the State of Virginia, and further provided that such rate shall
apply after judgment. In the event of any default, the then remaining unpaid
principal amount and accrued but unpaid interest then outstanding shall bear
interest at the Default Rate called for hereunder until such principal and
interest have been paid in full. In addition, upon default, the Bank may pursue
its full legal remedies at law or equity, and the balance due hereunder may be
charged against any obligation of the Bank to any party including any Obligor.
Bank shall not be obligated to accept any check, money order, or other payment
instrument marked "payment in full" on any disputed amount due hereunder, and
Bank expressly reserves the right to reject all such payment instruments.
Borrower agrees that tender of its check or other payment instrument so marked
will not satisfy or discharge its obligation under this Note, disputed or
otherwise, even if such check or payment instrument is inadvertently processed
by Bank unless in fact such payment is in fact sufficient to pay the amount due
hereunder.

     The term "Prime Rate," if used herein, means the rate of interest per annum
announced by the Bank from time to time and adopted as its Prime Rate. The Prime
Rate is one of several rate indexes employed by the Bank when extending credit.
Any change in the interest rate resulting from a change in the Bank's Prime Rate
shall become effective as of the opening of business on the effective date of
the change. If this Note is placed with an attorney for collection, the
undersigned agrees to pay, in addition to principal and interest, all costs of
collection, including but not limited to reasonable attorneys' fees. All
obligations of the undersigned and of any Obligor shall bind his heirs,
executors, administrators, successors, and/or assigns. Use of the masculine
pronoun herein shall include the feminine and the neuter, and also the plural.
If more than one party shall execute this Note, the term "undersigned" as used
herein shall mean all the parties signing this Note and each of them, and all
such parties shall be jointly and severally obligated hereunder. Wherever
possible, each provision of this Note shall be interpreted in such a manner to
be effective and valid under applicable law, but if any provision of this Note
shall be prohibited by or invalid under such law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Note. All of the undersigned hereby waive all exemptions and homestead laws. The
proceeds of the loan evidenced by this Note may be paid to any one or more of
the undersigned. From time to time the maturity date of this Note may be
extended, or this Note may be renewed in whole or in part, or a new note of
different form any be substituted for this Note, or the rate of interest may be
modified, or changes may be made in consideration of loan extensions, and the
holder hereof, from time to time may waive or surrender, either in whole or in
part any rights, guaranties, secured interest, or liens, given for the benefit
of the holder in connection with the payment and the securing the payment of
this Note; but no such occurrence shall in any manner affect, limit, modify, or
otherwise impair any rights, guaranties or security of the holder not
specifically waived, released, or surrendered in writing, nor shall the
undersigned makers, or any guarantor, endorser, or any person who is or might be
liable hereon, either primarily or contingently, be released from such event.
The holder hereof, from time to time, shall have the unlimited right to release
any person who might be liable hereon, and such release shall not affect or
discharge the liability of any other person who is or might be liable hereon. No
waivers and modifications shall be valid unless in writing and signed by the
Bank. The Bank may, at its option, charge any fees for the modification,
renewal, extension, or amendment of any of the terms of the Note permitted by
N.C.G.S.ss.24-1 .1. In case of a conflict between the terms of this Note and the
Loan Agreement or Commitment Letter issued in connection herewith, the priority
of controlling terms shall be first this Note, then the Loan Agreement, and then
the Commitment Letter. This Note shall be governed by and construed in
accordance with the laws of Virginia; provided however that any Mortgage
encumbering the Borrower's property in South Carolina shall be governed by and
construed in accordance with the laws of South Carolina, and the Borrower hereby
submits to the jurisdiction of South Carolina in connection with any foreclosure
or enforcement proceeding undertaken in connection with the Borrower's property
situated in South Carolina.

     IN WITNESS WHEREOF, the undersigned, on the day and year first written
above, has caused this note to be executed under seal.

                                              HOOKER FURNITURE CORPORATION

ATTEST: /s/ Robert W. Sherwood                By: /s/ E. Larry Ryder
       -----------------------------------       -------------------------------
            Robert W. Sherwood                        E. Larry Ryder
Title:  Vice President- Credit, Secretary,    Title: Executive Vice President -
        & Treasurer                                  Finance & Administration

                                              By: /s/ Robert W. Sherwood
                                                 -------------------------------
                                                      Robert W. Sherwood
                                              Title: Vice President-Credit,
                                                     Secretary & Treasurer

                                   Page 2 of 2<PAGE>

                                  Exhibit 10.1

                                 SLM CORPORATION

                           EMPLOYEE STOCK OPTION PLAN

         1. PURPOSE

         This Employee Stock Option Plan (the "Plan") is intended to enable SLM
Corporation, a Delaware corporation to grant Awards to broad classes of
employees of SLM Corporation and its subsidiaries and affiliates and other key
personnel, thereby helping to retain and motivate such individuals, and to
encourage the judgment, initiative and efforts of such individuals by further
aligning their interests with those of the stockholders of the Corporation.

         2. DEFINITIONS

         "Awards" means the benefits or arrangements authorized under this Plan,
which are Stock Options and Performance Stock.

         "Board of Directors" means the Board of Directors of SLM Corporation.

         "Committee" means the Board of Directors and/or a committee of the
Board of Directors acting pursuant to its authorization to administer this Plan
under Section 4.

         "Common Stock" means SLM Corporation's common stock, par value $.20, as
presently constituted, subject to adjustment, and including other securities, as
provided in Section 8.

         "Corporation" means SLM Corporation and its Subsidiaries and
affiliates, unless the context requires otherwise.

         "Performance Stock" means an award of shares of Common Stock the grant,
issuance, retention and/or vesting of which shall be subject to such performance
conditions and to such further terms and conditions as the Committee deems
appropriate.

         "Subsidiary" means any joint venture, corporation, partnership or other
entity as to which the Corporation, whether directly or indirectly, has more
than 50% of the (i) voting rights or (ii) rights to capital or profits, and
whose employees have been designated by the Committee as eligible to participate
in the Plan.

         "Stock Options" or "Options" means a right to purchase a number of
shares of Common Stock at an exercise price, at such times and on such terms and
conditions as are specified in or determined pursuant to an agreement evidencing
an Award. Stock Options granted pursuant to this Plan are non-qualified stock
options and are not Incentive Stock Options, as defined in Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code").

         3. COMMON STOCK SUBJECT TO THE PLAN

         Subject to adjustment as provided in Section 8, the maximum number of
shares of Common Stock which may be issued pursuant to this Plan shall not
exceed 19,000,000. Shares issued under this Plan may be authorized and unissued
shares of Common Stock or shares of Common Stock reacquired by SLM Corporation.
For purposes of this Section 3, the aggregate number of Shares issued under this
Plan at any time shall equal only the number of Shares actually issued upon
exercise or settlement of an Award and not returned to the Corporation upon
cancellation, expiration or forfeiture of an Award or in payment or satisfaction
of the purchase price, exercise price or tax withholding obligation of an Award.
The number of shares of Common Stock issued upon the exercise of

                                                                              13

<PAGE>

"replacement options", i.e. Options granted to purchase a number of shares of
Common Stock equal to the number of shares of Common Stock used to exercise an
underlying Stock Option (either shares previously owned or shares acquired
pursuant to the exercise of the underlying Option and sold in order to exercise
e.g., such as in a so-called "cashless exercise"), shall not reduce the
aggregate number of shares authorized under the Plan.

         4. ADMINISTRATION OF THE PLAN

         The Plan shall be administered by the Board of Directors and/or by a
Committee of the Board of Directors of SLM Corporation, as appointed from time
to time by the Board of Directors. The Board of Directors shall fill vacancies
on and from time to time may remove or add members to the Committee.
Notwithstanding the foregoing, unless otherwise restricted by the Board of
Directors, the Committee may appoint one or more separate committees (any such
committee, a "Subcommittee") composed of one or more directors of SLM
Corporation (who may, but need not, be members of the Committee) and may
delegate to any such Subcommittee(s) the authority to grant Awards under the
Plan to Eligible Employees, to determine all terms of such Awards, and/or to
administer the Plan or any aspect of it. Any action by any such Subcommittee
within the scope of such delegation shall be deemed for all purposes to have
been taken by the Committee. The Subcommittee's authority to grant Awards is
limited in the same manner as provided for in the administration of the
Corporation's Management Incentive Plan.

         Subject to the express provisions of this Plan, the Committee shall be
authorized and empowered to do all things necessary or desirable in connection
with the administration of this Plan, including, without limitation: (a) to
prescribe, amend and rescind rules and regulations relating to this Plan and to
define terms not otherwise defined herein; (b) to determine which persons are
Eligible Employees (as defined in Section 5 hereof), to which of such Eligible
Employees, if any, an Award shall be granted hereunder; (c) to determine the
number of shares of Common Stock subject to an Award and the exercise or
purchase price of shares subject to a Stock Option; (d) to establish and verify
the extent of satisfaction of any conditions to exercisability or vesting of an
Award, (e) to waive conditions to and/or accelerate exercisability or vesting of
an Award, either automatically upon the occurrence of specified events
(including in connection with a change of control of SLM Corporation) or
otherwise in its discretion; (f) to prescribe and amend the terms of an Award
made under this Plan (which need not be identical); (g) to determine whether,
and the extent to which, adjustments are required pursuant to Section 8 hereof;
(h) to interpret and construe this Plan, any rules and regulations under the
Plan and the terms and conditions of any Award granted hereunder, and to make
exceptions to any such provisions in good faith and for the benefit of the
Corporation; and (i) to make all other determinations deemed necessary or
advisable for the administration of the Plan. The Committee shall act pursuant
to a majority vote or unanimous written consent.

         All decisions, determinations and interpretations by the Committee
regarding the Plan, any rules and regulations under the Plan and the terms and
conditions of any Award granted hereunder, shall be final and binding on all
Eligible Employees and recipients of Awards. The Committee shall consider such
factors as it deems relevant, in its sole and absolute discretion, to making
such decisions, determinations and interpretations including, without
limitation, the recommendations or advice of any officer or other employee of
the Corporation and such attorneys, consultants and accountants as it may
select.

         5. ELIGIBLE EMPLOYEES

         Any person who is an employee of the Corporation, a director of a
Subsidiary, a prospective employee, consultant or advisor of the Corporation
shall be eligible (an "Eligible Employee") to be considered for the grant of an
Award hereunder unless the grant of an Award to such person would require the
Plan to be approved by stockholders of SLM Corporation under Rule 312.03(a) of
the rules of the New York Stock Exchange.

         6. GRANT, TERMS AND CONDITIONS OF OPTIONS

         Options may be granted at any time and from time to time prior to the
termination of the Plan to Eligible Employees. Each Option agreement shall
contain provisions regarding (a) the number of Shares which may be issued upon
exercise of the Option, (b) the purchase price of the Shares and the means of
payment for the Shares, (c) the term of the Option, (d) such terms and
conditions of exercise as may be determined from time to time by the

                                                                              14

<PAGE>

Committee, (e) restrictions on the transfer of the Option and forfeiture
provisions, and (f) such further terms and conditions, in each case not
inconsistent with the Plan as may be determined from time to time by the
Committee. Options granted pursuant to the Plan need not be identical but each
Option shall be subject to the following terms and conditions:

         (a) Option Grants: The Committee, on behalf of the Corporation, is
authorized under this Plan to grant an Option or provide for the grant of an
Option, either automatically or in the discretion of the Committee, upon the
occurrence of specified events, including, without limitation, the achievement
of performance goals or the satisfaction of an event or condition within the
control of the recipient of the Option or within the control of others.

         (b) Price: The exercise price for each Option shall be established by
the Committee. The exercise price shall not be less than the fair market value
of the Common Stock on the date of grant of the Option, except that the
Committee may specifically provide that the exercise price of an Option may be
higher or lower in the case of an Option granted to employees of a company
acquired by the Corporation in assumption and substitution of Options held by
such employees at the time such company is acquired. Unless the Committee shall
specify otherwise, for purposes of this Plan the term "fair market value" shall
mean, as of any date, the closing price for a Share reported for that date on
the consolidated tape for securities listed on the New York Stock Exchange or,
if no Shares traded on the New York Stock Exchange on the date in question, then
for the next preceding date for which Shares traded on the New York Stock
Exchange. The exercise price shall be paid in such form of consideration as the
Committee in its discretion shall specify, which may but need not include, e.g.,
in cash, by payment under an arrangement with a broker where payment is made
pursuant to an irrevocable direction to the broker to deliver all or part of the
proceeds from the sale of the Option shares to the Corporation, by the surrender
of shares of Common Stock owned for at least six months by the Option holder
exercising the Option and having a fair market value on the day preceding the
date of exercise equal to the Option price, or by any combination of the
foregoing.

         (c) Duration and Exercise or Termination of Option: Each Option shall
be exercisable in such manner and at such times as the Committee shall
determine. The Committee may specify that Options granted under this Plan shall
become exercisable at such time and in such installments during the period prior
to the expiration of the Option's term as determined by the Committee in its
sole discretion. The Committee shall have the right to make the timing of
exercise of any Option granted under the Plan subject to such performance
requirements as deemed appropriate by the Committee. At any time after the grant
of an Option the Committee may, in its sole discretion, reduce or eliminate any
restrictions surrounding the Participant's right to exercise all or part of the
Option. Each Option granted must expire within a period of not more than ten
(10) years from the grant date.

         (d) Suspension or Termination of Option: The Chief Executive Officer,
any Executive Vice President, the Chief Financial Officer, the Treasurer and the
General Counsel of SLM Corporation (any such person, an "Authorized Officer")
each may provide at any time (including after a notice of exercise has been
delivered) and from time to time that the right to exercise an Option may be
suspended pending a determination by an Authorized Officer or the Committee on
whether an Eligible Employee to whom the Option was granted or an Option holder
has committed an act of embezzlement, fraud, dishonesty, nonpayment of any
obligation owed to the Corporation, breach of fiduciary duty or deliberate
disregard of Corporation rules; has made an unauthorized disclosure of any
Corporation trade secret or confidential information; has engaged in any conduct
constituting unfair competition; has induced any customer of the Corporation to
breach a contract with the Corporation or any principal for whom the Corporation
acts as agent to terminate such agency relationship; or has engaged in any other
act or conduct proscribed by the Committee from time to time (any such act or
conduct, individually or collectively, sometime hereinafter referred to as
"Misconduct"). No person shall be entitled to exercise any Option granted to an
Eligible Employee or held by an Option holder if the Authorized Officer or the
Committee, as the case may be, has determined such Eligible Employee or Option
holder to have engaged in any Misconduct.

         (e) Conditions and Restrictions Upon Securities Subject to Options: The
Committee may provide that the shares of Common Stock issued upon exercise of an
Option shall be subject to such further conditions or agreements as the
Committee in its discretion may specify prior to the exercise of such Option,
including without limitation, conditions on vesting or transferability and
forfeiture or repurchase provisions.

                                                                              15

<PAGE>

         Transferability of Option: Unless otherwise provided by the Committee,
each Option shall be transferable only by will or the laws of descent and
distribution.

         Cancellation: The Committee may, at any time prior to exercise and
subject to consent of the Eligible Employee, cancel any Option previously
granted and may or may not substitute in its place an Option with a different
exercise price, different terms or in different amounts.

         (f) Other Terms and Conditions: Options may also contain such other
provisions, which shall not be inconsistent with any of the foregoing terms, as
the Committee shall deem appropriate. No Option, however, nor anything contained
in the Plan shall confer upon any Eligible Employee any right to continue in the
Corporation's employ or service nor limit in any way the Corporation's right to
terminate his or her employment or service at any time. Option grants may be
evidenced by a written agreement and/or such other written arrangements as may
be approved from time to time by the Committee.

         7.  PERFORMANCE STOCK

         Performance Stock consists of an award of Common Stock, the grant,
issuance, retention and/or vesting of which shall be subject to such performance
conditions and to such further terms and conditions, as the Committee deems
appropriate.

         (a) Performance Stock Award. Each Performance Stock award shall contain
provisions regarding (a) the number of shares of Common Stock subject to such
award or a formula for determining such, (b) the performance criteria and level
of achievement versus these criteria which shall determine the number of shares
granted, issued, retainable and/or vested, (c) the period as to which
performance shall be measured for determining achievement of performance, (d)
forfeiture provisions, and (e) such further terms and conditions, in each case
not inconsistent with the Plan as may be determined from time to time by the
Committee.

         (b) Performance Criteria. The grant, issuance, retention and/or vesting
of each Performance Share shall be subject to such performance criteria and
level of achievement versus these criteria as the Committee shall determine,
which criteria may be based on financial performance and/or personal performance
evaluations.

         (c) Timing and Form of Payment. The Committee shall determine the
timing of payment of any Performance Stock. The Committee may provide for or,
subject to such terms and conditions as the Committee may specify, may permit a
Participant to elect for the payment of any Performance Stock to be deferred to
a specified date or event.

         (d) Discretionary Adjustments. Notwithstanding satisfaction of any
performance goals, the number of shares granted, issued, retainable and/or
vested under a Performance Stock award on account of either financial
performance or personal performance evaluations may be reduced by the Committee
on the basis of such further considerations as the Committee in its sole
discretion shall determine.

         8.  ADJUSTMENT OF AND CHANGES IN SECURITIES

         (a) If the outstanding securities of the class(es) then subject to this
Plan are increased, decreased or exchanged for or converted into cash, property
or a different number or kind of shares or other securities, or if cash,
property or shares or other securities are distributed in respect of such
outstanding securities, in either case as a result of a reorganization,
reclassification, dividend (other than a regular, quarterly cash dividend) or
other distribution, stock split, reverse stock split, spin-off or the like, or
if substantially all of the property and assets of the Corporation are sold,
then, unless the terms of such transaction shall provide otherwise, the maximum
number and type of shares or other securities that may be subject to Options and
issued in accord with this Plan shall be appropriately adjusted. The Committee
shall determine in its sole discretion the appropriate adjustment to be effected
pursuant to the immediately preceding sentence. In addition, in connection with
any such change in the class(es) of securities then subject to this Plan, the
Committee may make appropriate and proportionate adjustments in the number and
type of shares or other securities or cash or other property that may be
acquired pursuant to Options theretofore granted under this Plan and the
exercise price of such Options. In addition, in the event of such

                                                                              16

<PAGE>

change described in this paragraph, the Committee may accelerate the time or
times at which any Option may be exercised and may provide for cancellation of
any such accelerated Option which is not exercised within a time prescribed by
the Committee in its sole discretion.

         (b) No right to purchase fractional shares or fractions of other
securities shall result from any adjustment in Options pursuant to this Section.
In case of any such adjustment, the shares or other securities subject to the
Option shall be rounded down to the nearest whole share of Common Stock or
equivalent other security, as the case may be.

         9.  REGISTRATION, LISTING OR QUALIFICATION OF SECURITIES

         In the event the Committee determines in its discretion that, as a
condition to the issuance of shares under any award, the registration, listing
or qualification of the shares of Common Stock issuable under the Plan or under
an Award is necessary or desirable under the rules of any securities exchange or
under any law or governmental regulation, then the Committee may suspend the
exercisability of any or all Options in whole or in part until such
registration, listing, qualification, consent or approval has been
unconditionally obtained. No Option holder shall have any rights as a
stockholder with respect to any shares of Common Stock subject to an Option
hereunder until said shares have been issued.

         10. TAX WITHHOLDING

         To the extent required by applicable federal, state, local or foreign
law, an Eligible Employee or recipient of an Award shall make arrangements
satisfactory to the Committee for the satisfaction of any withholding tax
obligations that arise by reason of the grant, vesting or exercise of an Award.
The Corporation shall not be required to issue shares of Common Stock or to
recognize the disposition of such shares until such obligations are satisfied.

         11. AWARDS BY SUBSIDIARIES

         In the case of a grant of an Award to any Eligible Employee employed by
a Subsidiary, such grant may, if the Committee so directs, be implemented by SLM
Corporation issuing any subject shares to the Subsidiary, for such lawful
consideration as the Committee may determine, upon the condition or
understanding that the Subsidiary will transfer the shares to the Eligible
Employee in accordance with the terms of the award specified by the Committee
pursuant to the provisions of the Plan. Notwithstanding any other provision
hereof, such award may be issued by and in the name of the Subsidiary and shall
be deemed granted on such date as the Committee shall determine.

         12. EFFECTIVE DATE, AMENDMENT AND TERMINATION OF PLAN

         This Plan became effective upon September 18, 1997. The Plan was
amended on September 17, 1998 and June 13, 2000 and The Corporation's name was
changed effective July 31, 2000. Unless earlier suspended or terminated by the
Board of Directors, or extended as provided below, no Awards may be granted
after September 18, 2007. The Board of Directors or the Committee may from time
to time extend the effective term of the Plan and otherwise amend the Plan as
determined appropriate, without action by SLM Corporation's stockholders except
to the extent required by applicable law. References in the Plan and in writings
evidencing and setting the terms of Option grants which refer to the Code or
other applicable law shall also be deemed to refer to any applicable successor
provisions thereof unless otherwise determined by the Committee. The Plan may be
earlier terminated at such earlier time as the Board of Directors may determine.

                                                                              17

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