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                                                                   EXHIBIT 10.23

                              EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into as of
April 1, 2003, by and between HRB Business Services, Inc., a Delaware
corporation (the "Company"), and Steven Tait ("Executive").

                                   ARTICLE ONE
                                   EMPLOYMENT

                  1.01 - Agreement as to Employment. Effective April 1, 2003
(the "Employment Date"), the Company hereby employs Executive to serve in the
capacity set forth in Section 1.02, and Executive hereby accepts such employment
by the Company, subject to the terms of this Agreement. The Company reserves the
right, in its sole discretion, to change the title of Executive at any time.

                  1.02 - Duties.

                  (a) Executive is employed by the Company to serve as its
President, subject to the authority and direction of the Board of Directors of
the Company and the President and Chief Executive Officer of H&R Block, Inc.
("Block"). Subject to the foregoing, Executive will have such authority and
responsibility and duties as are normally associated with the position of
President. The Company reserves the right to modify, delete, add, or otherwise
change Executive's job responsibilities, in its sole discretion, at any time.
Executive will perform such other duties as are assigned to Executive from time
to time.

                  (b) So long as Executive is employed under this Agreement,
Executive agrees to devote Executive's full business time and efforts
exclusively on behalf of the Company and to competently and diligently discharge
Executive's duties hereunder. Executive will not be prohibited from engaging in
such personal, charitable, or other nonemployment activities that do not
interfere with Executive's full-time employment hereunder and that do not
violate the other provisions of this Agreement or the H&R Block, Inc. Code of
Business Ethics & Conduct, which Executive acknowledges having read and
understood. Executive will comply fully with all reasonable policies of the
Company as are from time to time in effect and applicable to Executive's
position. Executive understands that the business of Block, the Company, and/or
any other direct or indirect subsidiary of Block (each such other subsidiary an
"Affiliate") may be subject to governmental regulation, some of which may
require Executive to submit to background investigation as a condition of Block,
the Company, and/or Affiliates' participation in certain activities subject to
such regulation. If Executive, Block, the Company, or Affiliates are unable to
participate, in whole or in part, in any such activity as the result of any
action or inaction on the part of Executive, then this Agreement and Executive's
employment hereunder may be terminated by the Company without notice.

                  1.03 - Compensation.

                  (a) Base Salary. The Company will pay to Executive a gross
salary at an annual

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rate of $400,000 ("Base Salary"), payable semimonthly or at any other pay
periods as the Company may use for its other executive-level employees. The Base
Salary will be reviewed for adjustment no less often than annually during the
term of Executive's employment hereunder and, if adjusted, such adjusted amount
will become the "Base Salary" for purposes of this Agreement.

                  (b) Short-Term Incentive Compensation. Executive shall
participate in the H&R Block Short-Term Incentive Plan and the discretionary
short-term incentive program beginning with fiscal year 2004. Under such Plan
and program, Executive shall have an aggregate target bonus for fiscal year 2004
of $220,000 and an opportunity to earn 200% of such target bonus. The payment of
the actual award under such Plan and program shall be based upon such
performance criteria which shall be determined by the Compensation Committee of
Block. Executive must remain employed through April 30, 2004 to receive any
payments under the Plan and program for fiscal year 2004. Such incentive
compensation shall be paid to Executive following the completion of fiscal year
2004 when the same is paid to other senior executives of the Company.

                  (c) Stock Options. As authorized under the H&R Block 1993
Long-Term Executive Compensation Plan, as amended (the "1993 Plan"), Executive
shall be granted (i) on the Employment Date a stock option under the 1993 Plan
to purchase 50,000 shares of Block's common stock at an option price per share
equal to its closing price on the New York Stock Exchange on the date of grant,
such option to expire on the tenth anniversary of the date of grant; to vest and
become exercisable as to one-third (16,666) of the shares covered thereby on the
second anniversary of the date of grant, as to an additional one-third (16,667)
of such shares on the third anniversary of the date of grant, and as to the
remaining one-third (16,667) of the shares on the fourth anniversary of the date
of grant; to be an incentive stock option for the maximum number of shares
permitted by Internal Revenue Code Section 422 and the regulations promulgated
thereunder; and to otherwise be a nonqualified stock option; and (ii) a stock
option to purchase 40,000 shares of Block's common stock at an option price per
share equal to its closing price on the New York Stock Exchange on the date in
fiscal year 2004 on which options are granted under the 1993 Plan to all or
substantially all other senior executive officers of Block and its subsidiaries,
such stock option to have terms and conditions consistent with the terms and
conditions of options granted to such other senior executive officers.

                  (d) Restricted Stock. As authorized under the 1993 Plan,
Executive shall be awarded promptly after the Employment Date, 7,500 Restricted
Shares of Block's common stock under the 1993 Plan. One-third of the 7,500
shares shall vest (i.e., the restrictions on such shares shall terminate),
respectively, on each of the first three anniversaries following such employment
commencement date (in increments of 2,500 whole shares). Prior to the time such
Restricted Shares are so vested, (i) such Restricted Shares shall be
nontransferable, and (ii) Executive shall be entitled to receive any cash
dividends payable with respect to unvested Restricted Shares and vote such

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unvested Restricted Shares at any meeting of shareholders of Block.

                  1.04 - Relocation Benefits.

                  (a) The Company will reimburse Executive for reasonable
packing, shipping, transportation costs and other expenses incurred by Executive
in relocating Executive, Executive's family and personal property to the Greater
Kansas City Area, in accordance with the H&R Block Executive Relocation Program.

                  (b) To the extent that Executive incurs taxable income related
to any relocation benefits paid pursuant to this Agreement, the Company will pay
to Executive such additional amount as is necessary to "gross up" such benefits
and cover the anticipated income tax liability resulting from such taxable
income.

                  1.05 - Business Expenses. The Company will promptly pay
directly, or reimburse Executive for, all business expenses, to the extent such
expenses are paid or incurred by Executive during the term hereof in accordance
with the Company's policy in effect from time to time and to the extent such
expenses are reasonable and necessary to the conduct by Executive of the
Company's business.

                  1.06 - Fringe Benefits. During the term of Executive's
employment hereunder, and subject to the discretionary authority given to the
applicable benefit plan administrators, the Company will make available to
Executive such insurance, sick leave, deferred compensation, short-term
incentive compensation, bonuses, stock options, retirement, vacation, and other
like benefits as are approved and provided from time to time to the other
executive-level employees of the Company or Affiliates.

                  1.07 - Termination of Employment.

                  (a) Without Notice. The Company may, at any time, in its sole
discretion, terminate this Agreement and the employment of Executive without
notice in the event of:

                           (i) Executive's misconduct that interferes with or
         prejudices the proper conduct of the business of Block, the Company or
         any Affiliate or which may reasonably result in harm to the reputation
         of Block, the Company and/or any Affiliate; or

                           (ii) Executive's commission of an act materially and
         demonstrably detrimental to the good will of Block or any subsidiary of
         Block, which act constitutes gross negligence or willful misconduct by
         Executive in the performance of Executive's material duties to Block or
         such subsidiary; or

                           (iii) Executive's commission of any act of dishonesty
         or breach of trust resulting or intending to result in material
         personal gain or enrichment of

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         Executive at the expense of Block or any subsidiary of Block; or

                           (iv)  Executive's violation of Article Two or Three
         of this Agreement; or

                           (v) Executive's conviction of a misdemeanor
         (involving an act of moral turpitude) or a felony; or

                           (vi) Executive's disobedience, insubordination or
         failure to discharge Executive's duties; or

                           (vii) Executive's suspension by the Internal Revenue
         Service from participation in the Electronic Filing Program; or

                           (viii) The inability of Executive, Block, the
         Company, and/or an Affiliate to participate, in whole or in part, in
         any activity subject to governmental regulation as the result of any
         action or inaction on the part of Executive, as described in Section
         1.02(b); or

                           (ix) Executive's death or total and permanent
         disability. The term "total and permanent disability" will have the
         meaning ascribed thereto under any long-term disability plan maintained
         by the Company or Block for executives of the Company.

                  (b) With Notice. Either party may terminate this Agreement for
any reason, or no reason, by providing not less than 45 days' prior written
notice of such termination to the other party, and, if such notice is properly
given, this Agreement and Executive's employment hereunder will terminate as of
the close of business on the 45th day after such notice is deemed to have been
given or such later date as is specified in such notice.

                  (c) Termination Due to a Change of Control.

                           (i) If Executive terminates Executive's employment
         under this Agreement during the 180-day period following the date of
         the occurrence of a "Change of Control of Block," or, if Executive does
         not transfer employment to an Affiliate and remains employed by the
         Company, a "Change of Control of RSM McGladrey, Inc.," then, upon any
         such termination of Executive's employment and conditioned on
         Executive's execution of an agreement with the Company under which
         Executive releases all known and potential claims against Block, the
         Company, and Affiliates, the Company will provide Executive with
         Executive's election (the "Change of Control Election") of the same
         level of severance compensation and benefits as would be provided under
         the H&R Block Severance Plan (the "Severance Plan") as the Severance
         Plan exists either (A) on the date of this Agreement or (B) on
         Executive's last day of active employment by

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         the Company or any Affiliate (the "Last Day of Employment"), as if
         Executive had incurred a "Qualifying Termination" (as such term is
         defined in the Severance Plan); provided, however, (1) Executive will
         be credited with not less than 12 "Years of Service" (as such term is
         defined in the Severance Plan) for the purpose of determining severance
         compensation under Section 4(a)(i) of the Severance Plan as it exists
         on the date of this Agreement or the comparable section of the
         Severance Plan as it exists on Executive's Last Day of Employment,
         notwithstanding any provision in the Severance Plan to the contrary,
         (2) Executive will receive an amount equal to Executive's most recent
         payment under the H&R Block Short-Term Incentive Plan and the
         discretionary short-term incentive program in lieu of any amount
         calculated under Section 4(a)(ii) of the Severance Plan as it exists on
         the date of this Agreement or the comparable section of the Severance
         Plan as it exists on Executive's Last Day of Employment to be paid out
         over the "Severance Period" (as such term is defined in the Severance
         Plan), and (3) any nonvested portion of stock options or Restricted
         Shares awarded pursuant to Sections 1.03(c)(i) and 1.03(d) of this
         Agreement shall immediately vest on Executive's Last Day of Employment
         notwithstanding any provision in the Severance Plan to the contrary.
         The Severance Plan as it exists on the date of this Agreement is
         attached hereto as Exhibit A. Executive must notify the Company in
         writing within 5 business days after Executive's Last Day of Employment
         of Executive's Change of Control Election. Severance compensation and
         benefits provided under this Section 1.07(c) will terminate immediately
         if Executive violates Sections 3.02, 3.03, or 3.05 of this Agreement or
         becomes reemployed with the Company or an Affiliate.

                           (ii) For the purpose of this subsection, a "Change of
         Control of Block" means:

                                    (A)      the acquisition, other than from
                  Block, by any individual, entity or group (within the meaning
                  of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
                  of 1934, as amended (the "Exchange Act")), of beneficial
                  ownership (within the meaning of Rule 13d-3 promulgated under
                  the Exchange Act) of 35% or more of the then outstanding
                  voting securities of Block entitled to vote generally in the
                  election of directors, but excluding, for this purpose, any
                  such acquisition by Block or any of its subsidiaries, or any
                  employee benefit plan (or related trust) of Block or its
                  subsidiaries, or any corporation with respect to which,
                  following such acquisition, more than 50% of the then
                  outstanding voting securities of such corporation entitled to
                  vote generally in the election of directors is then
                  beneficially owned, directly or indirectly, by all or
                  substantially all of the individuals and entities who were the
                  beneficial owners of the voting securities of Block
                  immediately prior to such acquisition in substantially the
                  same proportion as their ownership, immediately prior to such
                  acquisition, of the then outstanding voting securities of
                  Block entitled to vote generally in the election of directors,
                  as

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                  the case may be; or

                                    (B)      individuals who, as of the date
                  hereof, constitute the Board of Directors of Block (generally,
                  the "Board," and as of the date hereof, the "Incumbent Board")
                  cease for any reason to constitute at least a majority of the
                  Board, provided that any individual or individuals becoming a
                  director subsequent to the date hereof, whose election, or
                  nomination for election by Block's shareholders, was approved
                  by a vote of at least a majority of the Board (or nominating
                  committee of the Board) will be considered as though such
                  individual were a member or members of the Incumbent Board,
                  but excluding, for this purpose, any such individual whose
                  initial assumption of office is in connection with an actual
                  or threatened election contest relating to the election of the
                  directors of Block (as such terms are used in Rule 14a-11 of
                  Regulation 14A promulgated under the Exchange Act); or

                                    (C)      the completion of a reorganization,
                  merger or consolidation approved by the shareholders of Block,
                  in each case, with respect to which all or substantially all
                  of the individuals and entities who were the respective
                  beneficial owners of the voting securities of Block
                  immediately prior to such reorganization, merger or
                  consolidation do not, following such reorganization, merger or
                  consolidation, beneficially own, directly or indirectly, more
                  than 50% of the then outstanding voting securities entitled to
                  vote generally in the election of directors of the corporation
                  resulting from such reorganization, merger or consolidation,
                  or a complete liquidation or dissolution of Block, as approved
                  by the shareholders of Block, or the sale or other disposition
                  of all or substantially all of the assets of Block, as
                  approved by the shareholders of Block.

                           (iii) For the purpose of this subsection, a "Change
         of Control of RSM McGladrey, Inc." means:

                                    (A)      the acquisition, other than from
                  RSM McGladrey, Inc. ("RSM"), by any individual, entity or
                  group (within the meaning of Section 13(d)(3) or 14(d)(2) of
                  the Securities Exchange Act of 1934, as amended (the "Exchange
                  Act")), of beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of 35% or more of
                  the then outstanding voting securities of RSM entitled to vote
                  generally in the election of directors, but excluding, for
                  this purpose, any such acquisition by Block, the Company, or
                  Affiliates, or any employee benefit plan (or related trust) of
                  Block, the Company or Affiliates or any corporation with
                  respect to which, following such acquisition, more than 50% of
                  the then outstanding voting securities of such corporation
                  entitled to vote generally in the election of directors is
                  then beneficially owned, directly or indirectly,

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                  by all or substantially all of the individuals and entities
                  who were the beneficial owners of the voting securities of RSM
                  immediately prior to such acquisition in substantially the
                  same proportion as their ownership, immediately prior to such
                  acquisition, of the then outstanding voting securities of RSM
                  entitled to vote generally in the election of directors, as
                  the case may be; or

                                    (B)      in the event any of RSM's voting
                  securities are available for purchase on a national exchange,
                  individuals who, as of the date hereof, constitute the Board
                  of Directors of RSM (generally, the "RSM Board," and as of the
                  date hereof, the "RSM Incumbent Board") cease for any reason
                  to constitute at least a majority of the RSM Board, provided
                  that any individual or individuals becoming a director
                  subsequent to the date hereof, whose election, or nomination
                  for election by RSM's shareholders, was approved by a vote of
                  at least a majority of the RSM Board (or nominating committee
                  of the RSM Board) will be considered as though such individual
                  were a member or members of the RSM Incumbent Board, but
                  excluding, for this purpose, any such individual whose initial
                  assumption of office is in connection with an actual or
                  threatened election contest relating to the election of the
                  directors of RSM (as such terms are used in Rule 14a-11 of
                  Regulation 14A promulgated under the Exchange Act); or

                                    (C)      the completion of a reorganization,
                  merger or consolidation approved by the shareholders of RSM,
                  in each case, with respect to which (1) all or substantially
                  all of the individuals and entities who were the respective
                  beneficial owners of the voting securities of RSM immediately
                  prior to such reorganization, merger or consolidation and (2)
                  affiliates of such individuals and entities do not, following
                  such reorganization, merger or consolidation, beneficially
                  own, directly or indirectly, more than 50% of the then
                  outstanding voting securities entitled to vote generally in
                  the election of directors of the corporation resulting from
                  such reorganization, merger or consolidation, or a complete
                  liquidation or dissolution of RSM, as approved by the
                  shareholders of RSM, or the sale or other disposition of all
                  or substantially all of the assets of RSM (except for a sale
                  to Block, the Company, or an Affiliate), as approved by the
                  shareholders of RSM.

                  (d) Severance. Executive will receive severance compensation
and benefits as would be provided under the Severance Plan, as the same may be
amended from time to time, if Executive incurs a "Qualifying Termination," as
such term is defined in the Severance Plan (except as provided below), and
executes an agreement with the Company under which Executive releases all known
and potential claims against Block, the Company, and Affiliates; provided,
however, "Qualifying Termination" shall include the involuntary termination of
Executive resulting from a

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sale of assets or other corporate acquisition or disposition. Such compensation
and benefits will be Executive's election (the "Severance Election") of the same
level of severance compensation and benefits as would be provided under the
Severance Plan as such plan exists either (A) on the date of this Agreement or
(B) Executive's Last Day of Employment; provided, however, (1) Executive will be
credited with not less than 12 "Years of Service" (as such term is defined in
the Severance Plan) for the purpose of determining severance compensation under
Section 4(a)(i) of the Severance Plan as it exists on the date of this Agreement
or the comparable section of the Severance Plan as it exists on Executive's Last
Day of Employment, notwithstanding any provision in the Severance Plan to the
contrary, and (2) all restrictions on any Restricted Shares awarded to
Executive, including the Restricted Shares awarded pursuant to Section 1.03(d)
of this Agreement, that would have vested in accordance with their terms by
reason of lapse of time within 18 months after the Last Day of Employment
(absent such termination of employment) shall terminate (and such Restricted
Shares shall be fully vested) and any Restricted Shares that would not have
vested in accordance with their terms by reason of lapse of time within 18
months after the Last Day of Employment shall be forfeited notwithstanding any
provision in the Severance Plan to the contrary. The Severance Plan as it exists
on the date of this Agreement is attached hereto as Exhibit A. Executive must
notify the Company in writing within 5 business days after Executive's Last Day
of Employment of Executive's Severance Election. Severance compensation and
benefits provided under this Section 1.07(d) will terminate immediately if
Executive violates Sections 3.02, 3.03, or 3.05 of this Agreement or becomes
reemployed with the Company or an Affiliate.

                  (e) Further Obligations. Upon termination of Executive's
employment under this Agreement, neither the Company, Block, nor any Affiliate
will have any further obligations under this Agreement and no further payments
of Base Salary or other compensation or benefits will be payable by the Company,
Block, or any Affiliate to Executive, except (i) as set forth in this Section
1.07, (ii) as required by the express terms of any written benefit plans or
written arrangements maintained by the Company or Block and applicable to
Executive at the time of such termination of Executive's employment, or (iii) as
may be required by law. Any termination of this Agreement, however, will not be
effective as to Sections 3.02, 3.03 and 3.05, or any other portions or
provisions of this Agreement which, by their express terms, require performance
by either party following termination of this Agreement.

                                   ARTICLE TWO
                                 CONFIDENTIALITY

                  2.01 - Background and Relationship of Parties. The parties
hereto acknowledge (for all purposes including, without limitation, Articles Two
and Three of this Agreement) that Block and its subsidiaries have been and will
be engaged in a continuous program of acquisition and development respecting
their businesses, present and future, and that, in connection with Executive's
employment by the Company,

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Executive will be expected to have access to all information of value to the
Company and Block and that Executive's employment creates a relationship of
confidence and trust between Executive and Block with respect to any information
applicable to the businesses of Block and its subsidiaries. Executive will
possess or have unfettered access to information that has been created,
developed, or acquired by Block and its subsidiaries or otherwise become known
to Block and its subsidiaries and which has commercial value in the businesses
in which Block and its subsidiaries have been and will be engaged and has not
been publicly disclosed by Block. All information described above is hereinafter
called "Proprietary Information." By way of illustration, but not limitation,
Proprietary Information includes trade secrets, customer lists and information,
employee lists and information, developments, systems, designs, software,
databases, know-how, marketing plans, product information, business and
financial information and plans, strategies, forecasts, new products and
services, financial statements, budgets, projections, prices, and acquisition
and disposition plans. Proprietary Information does not include any portions of
such information which are now or hereafter made public by third parties in a
lawful manner or made public by parties hereto without violation of this
Agreement.

                  2.02 - Proprietary Information is Property of Block.

                  (a) All Proprietary Information is the sole property of Block
(or the applicable subsidiary of Block) and its assigns, and Block (or the
applicable subsidiary of Block) is the sole owner of all patents, copyrights,
trademarks, names, and other rights in connection therewith and without regard
to whether Block (or any subsidiary of Block) is at any particular time
developing or marketing the same. Executive hereby assigns to Block any rights
Executive may have or may acquire in such Proprietary Information. At all times
during and after Executive's employment with the Company or any Affiliate,
Executive will keep in strictest confidence and trust all Proprietary
Information and Executive will not use or disclose any Proprietary Information
without the written consent of Block, except as may be necessary in the ordinary
course of performing duties as an employee of the Company or as may be required
by law or the order of any court or governmental authority.

                  (b) In the event of any termination of Executive's employment
hereunder, Executive will promptly deliver to the Company all copies of all
documents, notes, drawings, programs, software, specifications, documentation,
data, Proprietary Information, and other materials and property of any nature
belonging to Block or any subsidiary of Block and obtained during the course of
Executive's employment with the Company. In addition, upon such termination,
Executive will not remove from the premises of Block or any subsidiary of Block
any of the foregoing or any reproduction of any of the foregoing or any
Proprietary Information that is embodied in a tangible medium of expression.

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                                  ARTICLE THREE
           NON-HIRING; NON-SOLICITATION; NO CONFLICTS; NON-COMPETITION

                  3.01 - General. The parties hereto acknowledge that, during
the course of Executive's employment by the Company, Executive will have access
to information valuable to the Company and Block concerning the employees of
Block and its subsidiaries ("Block Employees") and, in addition to Executive's
access to such information, Executive may, during (and in the course of)
Executive's employment by the Company, develop relationships with such Block
Employees whereby information valuable to Block and its subsidiaries concerning
the Block Employees was acquired by Executive. Such information includes,
without limitation: the identity, skills, and performance levels of the Block
Employees, as well as compensation and benefits paid by Block to such Block
Employees. Executive agrees and understands that it is important to protect
Block, the Company, Affiliates and their employees, agents, directors, and
clients from the unauthorized use and appropriation of Block Employee
information, Proprietary Information, and trade secret business information
developed, held, or used by Block, the Company, or Affiliates, and to protect
Block, the Company, and Affiliates and their employees, agents, directors, and
customers Executive agrees to the covenants described in this Article III.

                  3.02 - Non-Hiring. During the period of Executive's employment
hereunder and during the time Executive is receiving payments hereunder (or if
longer, 1 year after Executive's Last Day of Employment), Executive may not
directly or indirectly recruit, solicit, or hire any Block Employee or otherwise
induce any such Block Employee to leave the employment of Block (or the
applicable employer-subsidiary of Block) to become an employee of or otherwise
be associated with any other party or with Executive or any company or business
with which Executive is or may become associated. The running of the 1-year
period will be suspended during any period of violation and/or any period of
time required to enforce this covenant by litigation or threat of litigation.

                  3.03 - Non-Solicitation. During the period of Executive's
employment hereunder and during the time Executive is receiving payments
hereunder (or if longer, 1 year after Executive's Last Day of Employment),
Executive may not directly or indirectly solicit or enter into any arrangement
with any person or entity which is, at the time of the solicitation, a
significant customer of the Company or an Affiliate for the purpose of engaging
in any business transaction of the nature performed by the Company or such
Affiliate, or contemplated to be performed by the Company or such Affiliate, for
such customer, provided that this Section 3.03 will only apply to customers for
whom Executive personally provided services while employed by the Company or an
Affiliate or customers about whom or which Executive acquired material
information while employed by the Company or an Affiliate. The running of the
2-year period will be suspended during any period of violation and/or any period
of time required to enforce this covenant by litigation or threat of litigation.

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                  3.04 - No Conflicts. Executive represents in good faith that,
to the best of Executive's knowledge, the performance by Executive of all the
terms of this Agreement will not breach any agreement to which Executive is or
was a party and which requires Executive to keep any information in confidence
or in trust. Executive has not brought and will not bring to the Company or
Block nor will Executive use in the performance of employment responsibilities
at the Company any proprietary materials or documents of a former employer that
are not generally available to the public, unless Executive has obtained express
written authorization from such former employer for their possession and use.
Executive has not and will not breach any obligation of confidentiality that
Executive may have to former employers and Executive will fulfill all such
obligations during Executive's employment with the Company.

                  3.05 - Non-Competition. During the period of Executive's
employment hereunder and during the time Executive is receiving payments
hereunder (or if longer, 1 year after Executive's Last Day of Employment),
Executive may not engage in, or own or control any interest in (except as a
passive investor in less than one percent of the outstanding securities of
publicly held companies), or act as an officer, director or employee of, or
consultant, advisor or lender to, any firm, corporation, partnership, limited
liability company, institution, business, government agency, or entity that
engages in any line of business that is competitive with any Line of Business of
Block (as defined below), provided that this Section 3.05 will not apply to
Executive if Executive's primary place of employment by the Company or an
Affiliate as of the Last Day of Employment is in either the State of California
or the State of North Dakota. "Line of Business of Block" means any line of
business (including lines of business under evaluation or development) of the
Company, as well as any one or more lines of business (including lines of
business under evaluation or development) of any Affiliate by which Executive
was employed during the two-year period preceding the Last Day of Employment,
provided that, "Line of Business of Block" will in all events include, but not
be limited to, the income tax return preparation business, and provided further
that if Executive's employment was, as of the Last Day of Employment or during
the 2-year period immediately prior to the Last Day of Employment, with HRB
Management, Inc. or any successor entity thereto, "Line of Business of Block"
means any line of business (including lines of business under evaluation or
development) of Block and all of its subsidiaries. The running of the 2-year
period will be suspended during any period of violation and/or any period of
time required to enforce this covenant by litigation or threat of litigation.

                  3.06 - Reasonableness of Restrictions. Executive and the
Company acknowledge that the restrictions contained in this Agreement are
reasonable, but should any provisions of any Article of this Agreement be
determined to be invalid, illegal, or otherwise unenforceable or unreasonable in
scope by any court of competent jurisdiction, the validity, legality, and
enforceability of the other provisions of this Agreement will not be affected
thereby and the provision found invalid, illegal, or otherwise unenforceable or
unreasonable will be considered by the Company and Executive to be amended as to
scope of protection, time, or geographic area (or any one

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of them, as the case may be) in whatever manner is considered reasonable by that
court and, as so amended, will be enforced.

                                  ARTICLE FOUR
                                  MISCELLANEOUS

                  4.01 - Third-Party Beneficiary. The parties hereto agree that
Block is a third-party beneficiary as to the obligations imposed upon Executive
under this Agreement and as to the rights and privileges to which the Company is
entitled pursuant to this Agreement, and that Block is entitled to all of the
rights and privileges associated with such third-party-beneficiary status.

                  4.02 - Entire Agreement. This Agreement constitutes the entire
agreement and understanding between the Company and Executive concerning the
subject matter hereof. No modification, amendment, termination, or waiver of
this Agreement will be binding unless in writing and signed by Executive and a
duly authorized officer of the Company. Failure of the Company, Block, or
Executive to insist upon strict compliance with any of the terms, covenants, or
conditions hereof will not be deemed a waiver of such terms, covenants, and
conditions.

                  4.03 - Specific Performance by Executive. The parties hereto
acknowledge that money damages alone will not adequately compensate the Company
or Block or Executive for breach of any of the covenants and agreements herein
and, therefore, in the event of the breach or threatened breach of any such
covenant or agreement by either party, in addition to all other remedies
available at law, in equity or otherwise, a wronged party will be entitled to
injunctive relief compelling specific performance of (or other compliance with)
the terms hereof.

                  4.04 - Successors and Assigns. This Agreement is binding upon
Executive and the heirs, executors, assigns and administrators of Executive or
Executive's estate and property and will inure to the benefit of the Company,
Block and their successors and assigns. Executive may not assign or transfer to
others the obligation to perform Executive's duties hereunder. The Company may
assign this Agreement to an Affiliate with the consent of Executive, in which
case, after such assignment, the "Company" means the Affiliate to which this
Agreement has been assigned.

                  4.05 - Withholding Taxes. From any payments due hereunder to
Executive from the Company, there will be withheld amounts reasonably believed
by the Company to be sufficient to satisfy liabilities for federal, state, and
local taxes and other charges and customary withholdings. Executive remains
primarily liable to such authorities for such taxes and charges to the extent
not actually paid by the Company. This Section 4.05 does not affect the
Company's obligation to "gross up" any relocation benefits paid to Executive
pursuant to Subsection 1.04(b).

                                       12

<PAGE>

                  4.06 - Indemnification. To the fullest extent permitted by law
and Block's Bylaws, the Company hereby indemnifies during and after the period
of Executive's employment hereunder Executive from and against all loss, costs,
damages, and expenses including, without limitation, legal expenses of counsel
selected by the Company to represent the interests of Executive (which expenses
the Company will, to the extent so permitted, advance to executive as the same
are incurred) arising out of or in connection with the fact that Executive is or
was a director, officer, employee, or agent of the Company or Block or serving
in such capacity for another corporation at the request of the Company or Block.
Notwithstanding the foregoing, the indemnification provided in this Section 4.06
will not apply to any loss, costs, damages, and expenses arising out of or
relating in any way to any employment of Executive by any former employer or the
termination of any such employment.

                  4.07 - Right to Offset. To the extent not prohibited by
applicable law and in addition to any other remedy, the Company has the right
but not the obligation to offset any amount that Executive owes the Company
under this Agreement against any amounts due Executive by Block, the Company, or
Affiliates.

                  4.08 - Waiver of Jury Trial. Both parties to this Agreement,
and Block, as a third-party beneficiary pursuant to Section 4.01 of this
Agreement, waive any and all right to any trial by jury in any action or
proceeding directly or indirectly related to this Agreement and Executive's
employment hereunder.

                  4.09 - Notices. All notices required or desired to be given
hereunder must be in writing and will be deemed served and delivered if
delivered in person or mailed, postage prepaid to Executive at: 499 Terracina
Way, Naples, FL 34119; and to the Company at: 4400 Main Street, Kansas City, MO
64111, Attn: Corporate Secretary, with a copy to H&R Block, Inc., 4400 Main
Street, Kansas City, Missouri 64111, Attn: President; or to such other address
and/or person designated by either party in writing to the other party. Any
notice given by mail will be deemed given as of the date it is so mailed and
postmarked or received by a nationally recognized overnight courier for
delivery.

                  4.10 - Counterparts. This Agreement may be signed in
counterparts and delivered by facsimile transmission confirmed promptly
thereafter by actual delivery of executed counterparts.

         Executed as a sealed instrument under, and to be governed by, construed
and enforced in accordance with, the laws of the State of Missouri.

                                                  EXECUTIVE:

Dated: 7/1/2003                                           /s/ Steven Tait
                                                          ----------------------
                                                              Steven Tait

                                       13

<PAGE>

___________

Accepted and Agreed:

HRB Business Services, Inc.
a Delaware corporation

By: /s/  James H. Ingraham
    ----------------------------------------
    James H. Ingraham, Vice President

 Dated: 7/7/03

Approved:

H&R Block, Inc.
a Missouri corporation

By: /s/ Mark A. Ernst
    ----------------------------------------
    Mark A. Ernst
    President and Chief Executive Officer

Dated: 8 July 03

                                       14

<PAGE>

                                                                       EXHIBIT A

                            H&R BLOCK SEVERANCE PLAN
                           (AS AMENDED APRIL 15, 2002)

1.       PURPOSE. The H&R Block Severance Plan is a welfare benefit plan
established by HRB Management, Inc., an indirect subsidiary of H&R Block, Inc.,
for the benefit of certain subsidiaries of H&R Block, Inc. in order to provide
severance compensation and benefits to certain employees of such subsidiaries
whose employment is involuntarily terminated under the conditions set forth
herein. This document constitutes both the plan document and the summary plan
description required by the Employee Retirement Income Security Act of 1974.

2.       DEFINITIONS.

         (a)      "Company" means H&R Block, Inc.

         (b)      "Employee" means a regular full-time or part-time, active
         employee of a Participating Employer whose employment with a
         Participating Employer is not subject to an employment contract that
         contains a provision that includes severance benefits. This definition
         expressly excludes seasonal, temporary and inactive employees of a
         Participating Employer and employees who are customarily employed by a
         Participating Employer less than 20 hours per week.

         (c)      "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended.

         (d)      "Hour of Service" means each hour for which an individual was
         entitled to compensation as a regular full-time or part-time employee
         from a subsidiary of the Company.

         (e)      "Line of Business of the Company" with respect to a
         Participant means any line of business of the Participating Employer by
         which the Participant was employed as of the Termination Date, as well
         as any one or more lines of business of any other subsidiary of the
         Company by which the Participant was employed during the two-year
         period preceding the Termination Date, provided that, if Participant's
         employment was, as of the Termination Date or during the two-year
         period immediately prior to the Termination Date, with HRB Management,
         Inc. or any successor entity thereto, "Line of Business of the Company"
         shall mean any lines of business of the Company and all of its
         subsidiaries.

                                       A-1

<PAGE>

         (f)      "Participant" means an Employee who has incurred a Qualifying
         Termination and has signed a Release that has not been revoked during
         any revocation period provided under the Release.

         (g)      "Participating Employer" means a direct or indirect subsidiary
         of the Company (i) listed on Schedule A, attached hereto, which may
         change from time to time to reflect new Participating Employers or
         withdrawing Participating Employers, and (ii) approved by the Plan
         Sponsor for participation in the Plan.

         (h)      "Plan" means the "H&R Block Severance Plan," as stated herein,
         and as may be amended from time to time.

         (i)      "Plan Administrator" and "Plan Sponsor" means HRB Management,
         Inc. The address and telephone number of HRB Management, Inc. is 4400
         Main Street, Kansas City, Missouri 64111, (816) 753-6900. The Employer
         Identification Number assigned to HRB Management, Inc. by the Internal
         Revenue Service is 43-1632589.

         (j)      "Qualifying Termination" means the involuntary termination of
         an Employee, but does NOT include a termination resulting from:

                  (i)      the termination of an Employee as a result of the
                  elimination of the Employee's position where the Employee was
                  offered another position with a subsidiary of the Company at a
                  comparable salary and benefit level, or where the termination
                  results from a sale of assets or other corporate acquisition;

                  (ii)     the redefinition of an Employee's position to a lower
                  salary rate;

                  (iii)    the termination of an Employee for cause; or

                  (iv)     the non-renewal of employment contracts.

         (k)      "Release" means that agreement signed by and between an
         Employee who is eligible to participate in the Plan and the Employee's
         Participating Employer under which the Employee releases all known and
         potential claims against the Employee's Participating Employer and all
         of such employer's parents, subsidiaries, and affiliates.

         (l)      "Release Date" means, with respect to a Release that includes
         a revocation period, the date immediately following the expiration date
         of the revocation period in the Release that has been fully executed by
         both parties. "Release Date" means, with respect to a Release that does
         not include a revocation period, the date the Release has been fully
         executed by both parties.

         (m)      "Severance Period" means the period of time during which a
         Participant may receive benefits under this Plan. The Severance Period
         with respect to a

                                       A-2

<PAGE>

         Participant begins on the Termination Date. A Participant's Severance
         Period will be the shorter of (i) 12 months or (ii) a number of months
         equal to the whole number of Years of Service determined under Section
         2(p), unless earlier terminated in accordance with Section 8 of the
         Plan.

         (n)      "Termination Date" means the date the Employee severs
         employment with a Participating Employer.

         (o)      "Monthly Salary" means -

                  (i)      with respect to an Employee paid on a salary basis,
                  the Employee's current annual salary divided by 12; and

                  (ii)     with respect to an Employee paid on an hourly basis,
                  the Employee's current hourly rate times the number of hours
                  he or she is regularly scheduled to work per week multiplied
                  by 52 and then divided by 12.

         (p)      "Year of Service" means each period of 12 consecutive months
         ending on the Employee's employment anniversary date during which the
         Employee had at least 1,000 Hours of Service. In determining a
         Participant's Years of Service, the Participant will be credited with a
         partial Year of Service for his or her final period of employment
         commencing on his or her most recent employment anniversary date equal
         to a fraction calculated in accordance with the following formula:

          Number of days since most recent employment anniversary date
          ------------------------------------------------------------
                                       365

         Despite an Employee's Years of Service calculated in accordance with
         the above, an Employee whose pay grade at his or her Participating
         Employer fits in the following categories at the time of the Qualifying
         Termination will be credited with no less than the specified Minimum
         Years of Service and no more than the specified Maximum Years of
         Service listed in the following table as applicable to such pay grade:

<TABLE>
<CAPTION>
----------------------------------------------------------------------
                                                      MAXIMUM YEARS OF
      PAY GRADE          MINIMUM YEARS OF SERVICE         SERVICE
----------------------------------------------------------------------
<S>                      <C>                          <C>
  81-89 and 231-235                  6                      18
----------------------------------------------------------------------
   65-80, 140-145,                   3                      18
185-190, and 218-230
----------------------------------------------------------------------
   57-64, 115-135,                   1                      18
175-180, and 210-217
----------------------------------------------------------------------
   48-56, 100-110,                   1                      18
  170, and 200-209
----------------------------------------------------------------------
</TABLE>

                                       A-3

<PAGE>

         Notwithstanding the above, if an Employee has received credit for Years
         of Service under this Plan or under any previous plan, program, or
         agreement for the purpose of receiving severance benefits before a
         Qualifying Termination, such Years of Service will be disregarded when
         calculating Years of Service for such Qualifying Termination under the
         Plan; provided, however, that if such severance benefits were
         terminated prior to completion because the Employee was rehired by any
         subsidiary of the Company then the Employee will be re-credited with
         full Years of Service for which severance benefits were not paid in
         full or in part because of such termination..

3.       ELIGIBILITY AND PARTICIPATION. All Employees who incur a Qualifying
Termination and sign a Release are eligible to participate in the Plan. An
eligible Employee will become a Participant in the Plan as of the Termination
Date.

4.       SEVERANCE COMPENSATION.

         (a)      Amount. Subject to Section 8, each Participant will receive
         during the Severance Period from the applicable Participating Employer
         aggregate severance compensation equal to:

                  (i)      the Participant's Monthly Salary multiplied by the
                  Participant's Years of Service; plus

                  (ii)     one-twelfth of the Participant's target payout under
                  the Short-Term Incentive Program of the Participating Employer
                  in effect at the time of his or her Termination Date
                  multiplied by the Participant's Years of Service; plus

                  (iii)    an amount to be determined by the Participating
                  Employer at its sole discretion, which amount may be zero.

         (b)      Timing of Payments. Except as stated in Section 4(c), and
         subject to Section 8,

                  (i)      the sum of any amounts determined under Sections
                  4(a)(i) and 4(a)(ii) of the Plan will be paid in semi-monthly
                  or bi-weekly installments (the timing and amount of each
                  installment as determined by the Participating Employer)
                  during the Severance Period beginning after the later of the
                  Termination Date or the Release Date; and

                  (ii)     any amounts determined under Section 4(a)(iii) of the
                  Plan will be paid in one lump sum within 15 days after the
                  later of the Termination Date or the Release Date, unless
                  otherwise agreed in writing by the Participating Employer and
                  Participant or otherwise required by law.

         (c)      Death. In the event of the Participant's death prior to
         receiving all payments due under this Section 4, any unpaid severance
         compensation will be paid (i) in the same manner as are death benefits
         under the Participant's

                                       A-4

<PAGE>

         basic life insurance coverage provided by the Participant's
         Participating Employer, and (ii) in accordance with the Participant's
         beneficiary designation under such coverage. If no such coverage
         exists, or if no beneficiary designation exists under such coverage as
         of the date of death of the Participant, the severance compensation
         will be paid to the Participant's estate in one-lump sum.

5.       HEALTH AND WELFARE BENEFITS.

         (a)      Benefits. In addition to the severance compensation provided
         pursuant to Section 4 of the Plan, a Participant may continue to
         participate in the following health and welfare benefits provided by
         his or her Participating Employer during the Severance Period on the
         same basis as employees of the Participating Employer:

                  (i)      medical;

                  (ii)     dental;

                  (iii)    vision;

                  (iv)     employee assistance;

                  (v)      medical expense reimbursement and dependent care
                  expense reimbursement benefits provided under a cafeteria
                  plan;

                  (vi)     life insurance (basic and supplemental); and

                  (vii)    accidental death and dismemberment insurance (basic
                  and supplemental).

         For the purposes of any of the above-described benefits provided under
         a Participating Employer's cafeteria plan, a Qualifying Termination
         constitutes a "change in status" or "life event."

         (b)      Payment and Expiration. Payment of the Participant's portion
         of contribution or premiums for such selected benefits will be withheld
         from any severance compensation payments paid to the Participant under
         this Plan. The Participating Employer's partial subsidization of such
         coverages will remain in effect until the earlier of:

                  (i)      the expiration or earlier termination of the
         Employee's Severance Period, after which time the Participant may be
         eligible to elect to continue coverage of those benefits listed above
         that are provided under group health plans in accordance with his or
         her rights under Section 4980B of the Internal Revenue Code; or

                  (ii)     the Participant's attainment of or eligibility to
                  attain health and

                                       A-5

<PAGE>

                  welfare benefits through another employer after which time the
                  Participant may be eligible to elect to continue coverage of
                  those benefits listed above that are provided under group
                  health plans in accordance with his or her rights under
                  Section 4980B of the Internal Revenue Code.

6.       STOCK OPTIONS.

         (a)      Accelerated Vesting. Any portion of any outstanding incentive
         stock options and nonqualified stock options that would have vested
         during the 18-month period following the Termination Date had the
         Participant remained an employee with the Participating Employer during
         such 18-month period will vest as of the Termination Date. This Section
         6(a) applies only to options (i) granted to the Participant under the
         Company's 1993 Long-Term Executive Compensation Plan, or any successor
         plan to its 1993 Long-Term Executive Compensation Plan, not less than 6
         months prior to his or her Termination Date and (ii) outstanding at the
         close of business on such Termination Date. The determination of
         accelerated vesting under this Section 6(a) shall be made as of the
         Termination Date and shall be based solely on any time-specific vesting
         schedule included in the applicable stock option agreement without
         regard to any accelerated vesting provision not related to the Plan in
         such agreement.

         (b)      Post-Termination Exercise Period. Subject to the expiration
         dates and other terms of the applicable stock option agreements, the
         Participant may elect to have the right to exercise any outstanding
         incentive stock options and nonqualified stock options granted prior to
         the Termination Date to the Participant under the Company's 1984
         Long-Term Executive Compensation Plan, its 1993 Long-Term Executive
         Compensation Plan, or any successor plan to its 1993 Long-Term
         Executive Compensation Plan that are vested as of the Termination Date
         (or, if later, the Release Date), whether due to the operation of
         Section 6(a), above, or otherwise, at any time during the Severance
         Period and, except in the event that the Severance Period terminates
         pursuant to Section 8(a), for a period up to 3 months after the end of
         the Severance Period (notwithstanding Section 8). Any such election
         shall apply to all outstanding incentive stock options and nonqualified
         stock options, will be irrevocable and must be made in writing and
         delivered to the Plan Administrator on or before the later of the
         Termination Date or Release Date. If the Participant fails to make an
         election, the Participant's right to exercise such options will expire
         3 months after the Termination Date.

         (c)      Stock Option Agreement Amendment. The operation of Sections
         6(a) and 6(b), above, are subject to the Participant's execution of an
         amendment to any affected stock option agreements.

7.       OUTPLACEMENT SERVICES. In addition to the benefits described above,
career transition counseling or outplacement services may be provided upon the
Participant's Qualifying Termination. Such outplacement service will be provided
at

                                       A-6

<PAGE>

the Participating Employer's sole discretion. Outplacement services are designed
to assist employees in their search for new employment and to facilitate a
smooth transition between employment with the Participating Employer and
employment with another employer. Any outplacement services provided under this
Plan will be provided by an outplacement service chosen by the Participating
Employer. The Participant is not entitled to any monetary payment in lieu of
outplacement services.

8.       TERMINATION OF BENEFITS. Any right of a Participant to severance
compensation and benefits under the Plan, and all obligations of his or her
Participating Employer to pay any unpaid severance compensation or provide
benefits under the Plan will terminate as of the day:

         (a)      The Participant has engaged in any conduct described in
         Sections 8(a)(i), 8(a)(ii), 8(a)(iii) or 8(a)(iv), below, as the same
         may be limited pursuant to Section 8(a)(vi).

                  (i)      During the Severance Period, the Participant's
                  engagement in, ownership of, or control of any interest in
                  (except as a passive investor in less than one percent of the
                  outstanding securities of publicly held companies), or acting
                  as an officer, director or employee of, or consultant, advisor
                  or lender to, any firm, corporation, partnership, limited
                  liability company, institution, business, government agency,
                  or entity that engages in any line of business that is
                  competitive with any Line of Business of the Company, provided
                  that this Section 8(a)(i) shall not apply to the Participant
                  if the Participant's primary place of employment by a
                  subsidiary of the Company as of the Termination Date is in
                  either the State of California or the State of North Dakota.

                  (ii)     During the Severance Period, the Participant employs
                  or solicits for employment by any employer other than a
                  subsidiary of the Company any employee of any subsidiary of
                  the Company, or recommends any such employee for employment to
                  any employer (other than a subsidiary of the Company) at which
                  the Participant is or intends to be (A) employed, (B) a member
                  of the Board of Directors, (C) a partner, or (D) providing
                  consulting services.

                  (iii)    During the Severance Period, the Participant directly
                  or indirectly solicits or enters into any arrangement with any
                  person or entity which is, at the time of the solicitation, a
                  significant customer of a subsidiary of the Company for the
                  purpose of engaging in any business transaction of the nature
                  performed by such subsidiary, or contemplated to be performed
                  by such subsidiary, for such customer, provided that this
                  Section 8(a)(iii) shall only apply to customers for whom the
                  Participant personally provided services while employed by a
                  subsidiary of the Company or customers about whom or which the
                  Participant acquired material information while employed by a
                  subsidiary of the Company.

                  (iv)     During the Severance Period, the Participant
                  misappropriates or

                                       A-7

<PAGE>

                  improperly uses or discloses confidential information of the
                  Company and/or its subsidiaries.

                  (v)      If the Participant engaged in any of the conduct
                  described in Sections 8(a)(i), 8(a)(ii), 8(a)(iii) or 8(a)(iv)
                  during or after Participant's term of employment with a
                  Participating Employer, but prior to the commencement of the
                  Severance Period, and such engagement becomes known to the
                  Participating Employer during the Severance Period, such
                  conduct shall be deemed, for purposes of Sections 8(a)(i),
                  8(a)(ii), 8(a)(iii) or 8(a)(iv) to have occurred during the
                  Severance Period.

                  (vi)     If the Participant is a party to an employment
                  contract with a Participating Employer that contains a
                  covenant or covenants relating to the Participant's engagement
                  in conduct that is the same as or substantially similar to the
                  conduct described in any of Sections 8(a)(i), 8(a)(ii),
                  8(a)(iii) or 8(a)(iv), and any specific conduct regulated in
                  such covenant or covenants in such employment contract is more
                  limited in scope geographically or otherwise than the
                  corresponding specific conduct described in any of such
                  Sections 8(a)(i), 8(a)(ii), 8(a)(iii) or 8(a)(iv), then the
                  corresponding specific conduct addressed in the applicable
                  Section 8(a)(i), 8(a)(ii), 8(a)(iii) or 8(a)(iv) shall be
                  limited to the same extent as such conduct is limited in the
                  employment contract and the Participating Employer's rights
                  and remedy with respect to such conduct under this Section 8
                  shall apply only to such conduct as so limited.

         (b)      The Participant is rehired by his or her Participating
         Employer or hired by any other subsidiary of the Company in any
         position other than a position classified as seasonal by such employer.

9.       AMENDMENT AND TERMINATION. The Plan Sponsor reserves the right to amend
the Plan or to terminate the Plan and all benefits hereunder in their entirety
at any time.

10.      ADMINISTRATION OF PLAN. The Plan Administrator has the power and
discretion to construe the provisions of the Plan and to determine all questions
relating to the eligibility of employees of Participating Employers to become
Participants in the Plan, and the amount of benefits to which any Participant
may be entitled thereunder in accordance with the Plan. Not in limitation, but
in amplification of the foregoing and of the authority conferred upon the Plan
Administrator, the Plan Sponsor specifically intends that the Plan Administrator
have the greatest permissible discretion to construe the terms of the Plan and
to determine all questions concerning eligibility, participation and benefits.
Any such decision made by the Plan Administrator will be binding on all
Employees, Participants, and Beneficiaries, and is intended to be subject to the
most deferential standard of judicial review. Such standard of review is not to
be affected by any real or alleged conflict of interest on the part of the Plan
Administrator. The decision of the Plan Administrator upon all matters within
the scope of its authority will be final and binding.

                                       A-8

<PAGE>

11.      CLAIMS PROCEDURES.

         (a)      FILING A CLAIM FOR BENEFITS. Participants are not required to
         submit claim forms to initiate payment of benefits under this Plan. To
         make a claim for benefits, individuals other than Participants who
         believe they are entitled to receive benefits under this Plan and
         Participants who believe they have been denied certain benefits under
         the Plan must write to the Plan Administrator. These individuals and
         such Participants are hereinafter referred to in this Section 11 as
         "Claimants." Claimants must notify the Plan Administrator if they will
         be represented by a duly authorized representative with respect to a
         claim under the Plan.

         (b)      INITIAL REVIEW OF CLAIMS. The Plan Administrator will evaluate
         a claim for benefits under the Plan. The Plan Administrator may solicit
         additional information from the Claimant if necessary to evaluate the
         claim. If the Plan Administrator denies all or any portion of the
         claim, the Claimant will receive, within 90 days after the receipt of
         the written claim, a written notice setting forth:

                  (i)      the specific reason for the denial;

                  (ii)     specific references to pertinent Plan provisions on
                  which the Plan Administrator based its denial;

                  (iii)    a description of any additional material and
                  information needed for the Claimant to perfect his or her
                  claim and an explanation of why the material or information is
                  needed; and

                  (iv)     that any appeal the Claimant wishes to make of the
                  adverse determination must be in writing to the Plan
                  Administrator within 60 days after receipt of the notice of
                  denial of benefits. The notice must advise the Claimant that
                  his or her failure to appeal the action to the Plan
                  Administrator in writing within the 60-day period will render
                  the Plan Administrator's determination final, binding and
                  conclusive. The notice must further advise the Claimant of his
                  or her right to bring a civil action under Section 502(a) of
                  ERISA following the exhaustion of the claims procedures
                  described herein.

         (c)      APPEAL OF DENIED CLAIM AND FINAL DECISION. If the Claimant
         should appeal to the Plan Administrator, the Claimant, or his or her
         duly authorized representative, must submit, in writing, whatever
         issues and comments the Claimant or his or her duly authorized
         representative feels are pertinent. The Claimant, or his or her duly
         authorized representative, may review and request pertinent Plan
         documents. The Plan Administrator will reexamine all facts related to
         the appeal and make a final determination as to whether the denial of
         benefits is justified under the circumstances. The Plan Administrator
         will advise the Claimant in writing of its decision within 60 days of
         the Claimant's written request for review, unless special circumstances
         (such as a hearing)

                                       A-9

<PAGE>

         require an extension of time, in which case the Plan Administrator will
         make a decision as soon as possible, but no later than 120 days after
         its receipt of a request for review.

12.      PLAN FINANCING. The benefits to be provided under the Plan will be paid
by the applicable Participating Employer, as incurred, out of the general assets
of such Participating Employer.

13.      GENERAL INFORMATION. The Plan's records are maintained on a calendar
year basis. The Plan Number is 509. The Plan is self-administered and is
considered a severance plan.

14.      GOVERNING LAW. The Plan is established in the State of Missouri. To the
extent federal law does not apply, any questions arising under the Plan will be
determined under the laws of the State of Missouri.

15.      ENFORCEABILITY; SEVERABILITY. If a court of competent jurisdiction
determines that any provision of the Plan is not enforceable, then such
provision shall be enforceable to the maximum extent possible under applicable
law, as determined by such court. The invalidity or unenforceabilty of any
provision of the Plan, as determined by a court of competent jurisdiction, will
not affect the validity or enforceability of any other provision of the Plan and
all other provisions will remain in full force and effect.

16.      WITHHOLDING OF TAXES. The applicable Participating Employer may
withhold from any benefit payable under the Plan all federal, state, city or
other taxes as may be required pursuant to any law, governmental regulation or
ruling. The Participant shall pay upon demand by the Company or the
Participating Employer any taxes required to be withheld or collected by the
Company or the Participating Employer upon the exercise by the Participant of a
nonqualified stock option granted under the Company's 1984 Long-Term Executive
Compensation Plan or its 1993 Long-Term Executive Compensation Plan. If the
Participant fails to pay any such taxes associated with such exercise upon
demand, the Participating Employer shall have the right, but not the obligation,
to offset such taxes against any unpaid severance compensation under this Plan.

17.      NOT AN EMPLOYMENT AGREEMENT. Nothing in the Plan gives an Employee any
rights (or imposes any obligations) to continued employment by his or her
Participating Employer or other subsidiary of the Company, nor does it give such
Participating Employer any rights (or impose any obligations) for the continued
performance of duties by the Employee for the Participating Employer or any
other subsidiary of the Company.

18.      NO ASSIGNMENT. The Employee's right to receive payments of severance
compensation and benefits under the Plan are not assignable or transferable,
whether by pledge, creation of a security interest, or otherwise. In the event
of any attempted assignment or transfer contrary to this section, the applicable
Participating Employer will have no liability to pay any amount so attempted to
be assigned or transferred.

                                      A-10

<PAGE>

19.      SERVICE OF PROCESS. The Secretary of the Plan Administrator is
designated as agent for service of legal process. Service of legal process may
be made upon the Secretary of the Plan Administrator at:

         HRB Management, Inc.
         Attn: Secretary
         4400 Main Street
         Kansas City, Missouri 64111

20.      STATEMENT OF ERISA RIGHTS. As a participant in the Plan, you are
entitled to certain rights and protections under ERISA, which provides that all
Plan Participants are entitled to:

         (a)      examine without charge, at the Plan Administrator's office,
         all documents governing the Plan and a copy of the latest annual report
         (Form 5500 Series) filed by the Plan with the U.S. Department of Labor
         and available at the Public Disclosure Room of the Pension and Welfare
         Benefit Administration;

         (b)      obtain, upon written request to the Plan Administrator, copies
         of documents governing the operation of the Plan, copies of the latest
         annual report (Form 5500 Series) and an updated summary plan
         description. The Plan Administrator may make a reasonable charge for
         the copies; and

         (c)      receive a summary of the Plan's annual financial report if
         required to be filed for the year. The Plan Administrator is required
         by law to furnish each participant with a copy of this summary annual
         report if an annual report is required to be filed for the year.

         In addition to creating rights for Plan Participants, ERISA imposes
duties upon the people who are responsible for the operation of the Plan. The
people who operate your Plan, called "fiduciaries" of the Plan, have a duty to
do so prudently and in the interest of you and other Plan Participants and
beneficiaries. No one, including your Participating Employer or any other
person, may fire you or otherwise discriminate against you in any way to prevent
you from obtaining a welfare benefit or exercising your rights under ERISA.

         If your claim for a welfare benefit is denied or ignored, in whole or
in part, you have the right to know why this was done, to obtain copies of
documents relating to the decision without charge, and to appeal any denial, all
within certain time schedules.

         Under ERISA, there are steps you can take to enforce the above rights.
For instance, if you request a copy of plan documents or the latest annual
report from the Plan and do not receive them within 30 days, you may file suit
in a Federal court. In such a case, the court may require the Plan Administrator
to provide the materials to you and pay you up to $110 a day until you receive
the materials, unless the

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<PAGE>

materials were not sent because of reasons beyond the control of the Plan
Administrator. If you have a claim for benefits that is denied or ignored, in
whole or in part, you may file suit in a state or Federal court. If it should
happen that you are discriminated against for asserting your rights, you may
seek assistance from the U. S. Department of Labor, or you may file suit in a
Federal court. The court will decide who should pay court costs and legal fees.
If you are successful, the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay these costs and
fees, for example, if it finds your claim is frivolous.

         If you have any questions about the Plan, you should contact the Plan
Administrator. If you have questions about this statement or about your rights
under ERISA, or if you need assistance in obtaining documents from the Plan
Administrator, you should contact the nearest office of the Pension and Welfare
Benefits Administration, U.S. Department of Labor, listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Pension and
Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution
Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications
about your rights and responsibilities under ERISA by calling the publications
hotline of the Pension and Welfare Benefits Administration.

                                      A-12

<PAGE>

                                   SCHEDULE A

                             PARTICIPATING EMPLOYERS

Block Financial Corporation

Financial Marketing Services, Inc.

Franchise Partner, Inc.

H&R Block Investments, Inc.

H&R Block Services, Inc. and its U.S.-based direct and indirect subsidiaries

HRB Business Services, Inc.

HRB Management, Inc.

HRB Retail Services, Inc.

Olde Financial Corporation and its U.S.-based direct and indirect subsidiaries,
which subsidiaries include H&R Block Financial Advisors, Inc.

                                      A-13