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                              EMPLOYMENT AGREEMENT                  EXHIBIT 10.6


                  THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into as of
October 8, 2001, by and between HRB Management, Inc., a Missouri corporation
(the "Company"), and Jeffrey Brandmaier ("Executive").

                                   ARTICLE ONE

                                   EMPLOYMENT

                  1.01 - Agreement as to Employment. Effective October 8, 2001
(the "Employment Date"), the Company hereby employs Executive to serve in the
capacity set forth in Section 1.02 of this Agreement, 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 the
Senior Vice President and Chief Information Officer of H&R Block, Inc., a
Missouri corporation ("Block") and the indirect parent corporation of the
Company, subject to the authority and direction of the Board of Directors of
Block and the Executive Vice President of Block. Subject to the foregoing,
Executive will have such authority and responsibility and duties as are normally
associated with the position of Senior Vice President and Chief Information
Officer. 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


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the Company without notice.

                  1.03 - Compensation.

                  (a) Special Bonus. The Company shall pay to Executive a
$100,000 bonus within 30 days after the Employment Date. If Executive
voluntarily terminates his employment with the Company prior to the expiration
of one year after the Employment Date, Executive shall reimburse the Company the
$100,000 on or before the 30th day after the effective date of such termination.
It is expressly agreed that such bonus compensation is paid in lieu of any
relocation benefits, regardless of whether Executive is required to reimburse
the Company under this Section 1.03(a).

                  (b) Base Salary. The Company will pay to Executive a gross
salary at an annual rate of $240,000 ("Base Salary"), payable semimonthly or at
any other pay periods as the Company may use for its other executive 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.

                  (c) Short-Term Incentive Compensation. As approved by the
Compensation Committee of the Board of Block, Executive shall participate in the
H&R Block Short-Term Incentive Plan and the discretionary short-term incentive
program. Under such Plan and program, Executive shall have an aggregate target
bonus for fiscal year 2002 of $120,000 and an opportunity to earn 200% of such
target bonus. The payment of the actual award under the Plan and program shall
be based upon such performance criteria some of which shall be determined by the
Compensation Committee of Block and some of which shall be determined by mutual
agreement between Executive and the Company. For purposes of Executive's
participation in such Plan and program for the fiscal year ending April 30,
2002, Executive's actual incentive compensation shall not be prorated based upon
the number of months during such year that Executive is actually employed by the
Company, provided, however, that Executive must remain employed through April
30, 2002 to receive any payments under the Plan and program.

In addition, Executive shall be eligible to earn additional incentive
compensation in an amount from 0% to 25% of annual base salary based upon the
assessment of the Compensation Committee of the Board of Directors of Block
and/or the Board of Directors of Block itself of the performance of Block and
its subsidiaries during fiscal year 2002 with respect to long-term strategic
objectives. Such additional incentive compensation, if any, shall be paid to
Executive following the completion of fiscal year 2002 when the same is paid to
other senior executives of the Company.

                  (d) Stock Options. As authorized under the H&R Block 1993
Long-Term Executive Compensation Plan, as amended (the "1993 Plan"), Executive
shall be granted on the Employment Date a stock option under the 1993 Plan to
purchase 20,000 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;





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to vest and become exercisable as to one-third (6,666) of the shares covered
thereby on the second anniversary of the date of grant, as to an additional
one-third (6,667) of such shares on the third anniversary of the date of grant,
and as to the remaining one-third (6,667) 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.

                  (e) Restricted Stock. As approved by the Compensation
Committee of the Board of Block and the Board of Block itself, Executive shall
be awarded as of the Employment Date, 1,000 Restricted Shares of Block's common
stock under the 1993 Plan. One-third of the 1,000 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 333, 333, and 334 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 unvested Restricted Shares at any
meeting of shareholders of Block.

                  1.04 - No Relocation Benefits. The Company will not reimburse
Executive for any 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, notwithstanding any provision to the
contrary in the H&R Block Executive Relocation Program. In consideration of the
bonus to be paid to Executive pursuant to Section 1.03(a) of this Agreement,
Executive agrees that the H&R Block Executive Relocation Program shall not apply
to Executive with respect to the relocation of Executive and Executive's family
to Kansas City.

                  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:


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                           (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) Commission by Executive of any act of
         dishonesty or breach of trust resulting or intending to result in
         material personal gain or enrichment of 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) of this Agreement; 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




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         Block 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 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 no less
         than 15 "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
         nonvested Restricted Shares awarded to Executive that would have vested
         in accordance with their terms by reason of lapse of time within 18
         months after the effective date of the termination 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 effective date of termination of
         employment shall be forfeited. 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" 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


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                  Block entitled to vote generally in the election of directors,
                  as 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.

                  (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, and executes an agreement with the
Company under which Executive releases all known and potential claims against
Block, the Company, and Affiliates. 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) if Executive's employment with the Company
terminates as a result of the elimination of the position of Senior Vice
President and Chief Information Officer, and Executive is not offered another
position with the Company, Block, or an Affiliate at a comparable salary and
benefit level, Executive will be credited with no less than 15 "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 nonvested Restricted Shares




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awarded to Executive that would have vested in accordance with their terms by
reason of lapse of time within 18 months after the effective date of the
termination 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 effective date of termination of
employment shall be forfeited. 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, 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




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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, specifications, documentation, programs, software,
computers, 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.

                                  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


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customers Executive agrees to the covenants described in this Article III.

                  3.02 - Non-Hiring. During the period of Executive's employment
hereunder and for a period of 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, and for 2 years after the later of Executive's Last Day of Employment
or cessation of such payments, 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.

                  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, and for 2 years after the later of Executive's Last Day of Employment
or cessation of such payments, 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




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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 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




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<PAGE>

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.

                  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: 4400



                                       11
<PAGE>

Main Street, Kansas City, Missouri 64111; and to the Company at: 4400 Main
Street, Kansas City, Missouri, 64111, Attn: President, with a copy to H&R Block,
Inc., 4400 Main Street, Kansas City, Missouri 64111, Attn: Corporate Secretary;
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:  November 20, 2001          /s/ Jeffrey Brandmaier
       --------------------        --------------------------------------------
                                   Jeffrey Brandmaier

Accepted and Agreed:

HRB Management, Inc.
a Missouri corporation

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

 Dated:  November 20, 2001


                                       12
<PAGE>

                            H&R BLOCK SEVERANCE PLAN
                         (AS AMENDED SEPTEMBER 19, 2001)


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.

         (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.




                                      A-1
<PAGE>

         (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




                                      A-2
<PAGE>

         respect to a 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:



                                      A-3
<PAGE>

<TABLE>
<CAPTION>
               PAY GRADE           MINIMUM YEARS OF SERVICE        MAXIMUM YEARS OF SERVICE
               ---------           ------------------------        ------------------------
<S>                                <C>                              <C>
           81-89 and 231-235                 6                                18

            65-80, 109-110,                  3                                18
              and 218-230

            57-64, 105-108,                  1                                18
              and 210-217

            48-56, 100-102,                  1                                18
              and 200-209
</TABLE>

         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,

                                      A-4
<PAGE>

                  (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 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



                                      A-5
<PAGE>

                  (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 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




                                      A-6
<PAGE>

         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 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,




                                      A-7
<PAGE>

                  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 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




                                      A-8
<PAGE>

                  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.

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




                                      A-9
<PAGE>

         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) 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.

                                      A-10
<PAGE>

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




                                      A-11
<PAGE>

assigned or transferred.

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.




                                      A-12
<PAGE>


         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 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-13
<PAGE>


IN WITNESS WHEREOF, HRB Management, Inc. adopts this Severance Plan effective
this 23rd day of April, 2001.


                              HRB MANAGEMENT, INC.


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






                                      A-14
<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-15