Document:

exv10w1

Exhibit 10.1

H&R BLOCK, INC.

2003 LONG-TERM EXECUTIVE COMPENSATION PLAN

     1. Purposes. The purposes of this 2003 Long-Term Executive Compensation Plan are to provide
incentives and rewards to those employees and persons largely responsible for the success and
growth of H&R Block, Inc. and its subsidiary corporations, and to assist all such corporations in
attracting and retaining executives and other key employees and persons with experience and
ability.

     2. Definitions.

     (a) Award means one or more of the following: shares of Common Stock, Restricted Shares, Stock
Options, Incentive Stock Options, Stock Appreciation Rights, Performance Shares, Performance Units
and any other rights which may be granted to a Recipient under the Plan.

     (b) Committee means the Compensation Committee described in Section 3.

     (c) Common Stock means the Common Stock, without par value, of the Company.

     (d) Company means H&R Block, Inc., a Missouri corporation, and, unless the context otherwise
requires, includes its “subsidiary corporations” (as defined in Section 424(f) of the Internal
Revenue Code) and their respective divisions, departments and subsidiaries and the respective
divisions, departments and subsidiaries of such subsidiaries.

     (e) Incentive Stock Option means a Stock Option which meets all of the requirements of an
“incentive stock option” as defined in Section 422(b) of the Internal Revenue Code.

     (f) Internal Revenue Code means the Internal Revenue Code of 1986, as now in effect or
hereafter amended.

     (g) Performance Period means that period of time specified by the Committee during which a
Recipient must satisfy any designated performance goals in order to receive an Award.

     (h) Performance Share means the right to receive, upon satisfying designated performance goals
within a Performance Period, shares of Common Stock, cash, or a combination of cash and shares of
Common Stock, based on the market value of shares of Common Stock covered by such Performance
Shares at the close of the Performance Period.

     (i) Performance Unit means the right to receive, upon satisfying designated performance goals
within a Performance Period, shares of Common Stock, cash, or a combination of cash and shares of
Common Stock.

     (j) Plan means this 2003 Long-Term Executive Compensation Plan, as the same may be amended
from time to time.

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     (k) Recipient means an employee of the Company or other person who has been granted an Award
under the Plan.

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     (l) Restricted Share means a share of Common Stock issued to a Recipient hereunder subject to
such terms and conditions, including, without limitation, forfeiture or resale to the Company, and
to such restrictions against sale, transfer or other disposition, as the Committee may determine at
the time of issuance.

     (m) Stock Appreciation Right means the right to receive, upon exercise of a stock appreciation
right granted under this Plan, shares of Common Stock, cash, or a combination of cash and shares of
Common Stock, based on the increase in the market value of the shares of Common Stock covered by
such stock appreciation right from the initial day of the Performance Period for such stock
appreciation right to the date of exercise.

     (n) Stock Option means the right to purchase, upon exercise of a stock option granted under
this Plan, shares of the Company’s Common Stock.

     3. Administration of the Plan. The Plan shall be administered by the Committee which shall
consist of directors of the Company, to be appointed by and to serve at the pleasure of the Board
of Directors of the Company. A majority of the Committee members shall constitute a quorum and the
acts of a majority of the members present at any meeting at which a quorum is present, or acts
approved in writing by a majority of the Committee, shall be valid acts of the Committee, however
designated, or the Board of Directors of the Company if the Board has not appointed a Committee.

     The Committee shall have full power and authority to construe, interpret and administer the
Plan and, subject to the powers herein specifically reserved to the Board of Directors and subject
to the other provisions of this Plan, to make determinations which shall be final, conclusive and
binding upon all persons including, without limitation, the Company, the shareholders of the
Company, the Board of Directors, the Recipients and any persons having any interest in any Awards
which may be granted under the Plan. The Committee shall impose such additional conditions upon the
grant and exercise of Awards under this Plan as may from time to time be deemed necessary or
advisable, in the opinion of counsel to the Company, to comply with applicable laws and
regulations. The Committee from time to time may adopt rules and regulations for carrying out the
Plan and written policies for implementation of the Plan. Such policies may include, but need not
be limited to, the type, size and terms of Awards to be made to Recipients and the conditions for
payment of such Awards.

     4. Absolute Discretion. The Committee may, in its sole and absolute discretion (subject to the
Committee’s power to delegate certain authority in accordance with the second paragraph of this
Section 4), at any time and from time to time during the continuance of the Plan, (i) determine
which Recipients shall be granted Awards under the Plan, (ii) grant to any Recipient so selected
such an Award, (iii) determine the type, size and terms of Awards to be granted (subject to
Sections 6, 10 and 11 hereof), (iv) establish objectives and conditions for receipt of Awards, (v)
place conditions or restrictions on the payment or exercise of Awards, and (vi) do all other things
necessary and proper to carry out the intentions of this Plan; provided, however, that, in each and
every case, those Awards which are Incentive Stock Options shall contain and be subject to those
requirements specified in Section 422 of the Internal Revenue Code and shall be granted only to
those persons eligible thereunder to receive the same.

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     The Committee may at any time and from time to time delegate to the Chief Executive Officer of
the Company authority to take any or all of the actions that may be taken by the Committee as
specified in this Section 4 or in other sections of the Plan in connection with the determination
of Recipients, types, sizes, terms and conditions of Awards under the Plan and the grant of any
such Awards, provided that any authority so delegated (a) shall apply only to Awards to employees
of the Company that are not officers of Company under Regulation Section 240.16a-1(f) promulgated
pursuant to Section 16 of the Securities Exchange Act of 1934, and (b) shall be exercised only in
accordance with the Plan and such rules, regulations, guidelines, and limitations as the Committee
shall prescribe.

     5. Eligibility. Awards may be granted to any employee of the Company or to the non-executive
Chairman of the Board of the Company. No member of the Committee (other than any ex officio member
or the non-executive Chairman of the Board of the Company) shall be eligible for grants of Awards
under the Plan. A Recipient may be granted multiple forms of Awards under the Plan. Incentive Stock
Options may be granted under the Plan to a Recipient during any calendar year only if the aggregate
fair market value (determined as of the date the Incentive Stock Option is granted) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time by such Recipient
during any calendar year under the Plan and any other “incentive stock option plans” (as defined in
the Internal Revenue Code) maintained by the Company does not exceed the sum of $100,000.

     6. Stock Subject to the Plan. The total number of shares of Common Stock issuable under this
Plan may not at any time exceed 10,000,000 shares, subject to adjustment as provided herein. All of
such shares may be issued or issuable in connection with the exercise of Incentive Stock Options.
Shares of Common Stock not actually issued pursuant to an Award shall be available for future
Awards. Shares of common Stock to be delivered or purchased under the Plan may be either
authorized but unissued Common Stock or treasury shares. The total number of shares of Common
Stock that may be subject to one or more Awards granted to any one Recipient during a calendar year
may not exceed 1,000,000, subject to adjustment as provided in Section 16 of the Plan.

     7. Awards.

     (a) Awards under the Plan may include, but need not be limited to, shares of Common Stock,
Restricted Shares, Stock Options, Incentive Stock Options, Stock Appreciation Rights, Performance
Shares and Performance Units. The amount of each Award may be based upon the market value of a
share of Common Stock. The Committee may make any other type of Award which it shall determine is
consistent with the objectives and limitations of the Plan.

     (b) The Committee may establish performance goals to be achieved within such Performance
Periods as may be selected by it using such measures of the performance of the Company as it may
select as a condition to the receipt of any Award.

     8. Vesting Requirements. The Committee may determine that all or a portion of an Award or a
payment to a Recipient pursuant to an Award, in any form whatsoever, shall be vested at such times
and upon such terms as may be selected by it.

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     9. Deferred Payments and Dividend and Interest Equivalents.

     (a) The Committee may determine that the receipt of all or a portion of an Award or a payment
to a Recipient pursuant to an Award, in any form whatsoever, shall be deferred. Deferrals shall be
for such periods and upon such terms as the Committee may determine.

     (b) The Committee may provide, in its sole and absolute discretion, that a Recipient to whom
an Award is payable in whole or in part at a future time in shares of Common Stock shall be
entitled to receive an amount per share equal in value to the cash dividends paid per share on
issued and outstanding shares as of the dividend record dates occurring during the period from the
date of the Award to the date of delivery of such share to the Recipient. The Committee may also
authorize, in its sole and absolute discretion, payment of an amount which a Recipient would have
received in interest on (i) any Award payable at a future time in cash during the period from the
date of the Award to the date of payment, and (ii) any cash dividends paid on issued and
outstanding shares as of the dividend record dates occurring during the period from the date of an
Award to the date of delivery of shares pursuant to the Award. Any amounts provided under this
subsection shall be payable in such manner, at such time or times, and subject to such terms and
conditions as the Committee may determine in its sole and absolute discretion.

     10. Stock Option Price. The purchase price per share of Common Stock under each Stock Option
shall be determined by the Committee, but shall not be less than market value (as determined by the
Committee) of one share of Common Stock on the date the Stock Option or Incentive Stock Option is
granted. Payment for exercise of any Stock Option granted hereunder shall be made (a) in cash, or
(b) by delivery of Common Stock having a market value equal to the aggregate option price, or (c)
by a combination of payment of cash and delivery of Common Stock in amounts such that the amount of
cash plus the market value of the Common Stock equals the aggregate option price.

     11. Stock Appreciation Right Value. The base value per share of Common Stock covered by an
Award in the form of a Stock Appreciation Right shall be the market value of one share of Common
Stock on the date the Award is granted.

     12. Continuation of Employment. The Committee shall require that a Recipient be an employee or
director of the Company at the time an Award is paid or exercised. The Committee may provide for
the termination of an outstanding Award if a Recipient ceases to be an employee or director of the
Company and may establish such other provisions with respect to the termination or disposition of
an Award on the death or retirement of a Recipient (or not being re-elected to the Board of
Directors) as it, in its sole discretion, deems advisable. The Committee shall have the sole power
to determine the date of any circumstances which shall constitute a cessation of employment or term
as a director and to determine whether such cessation is the result of retirement, death or any
other reason.

     13. Registration of Stock. Each Award shall be subject to the requirement that if at any time
the Committee shall determine that qualification or registration under any state or federal law of
the shares of Common Stock, Restricted Shares, Stock Options, Incentive Stock Options, or other
securities thereby covered or the consent or approval of any governmental regulatory body is
necessary or desirable as a condition of or in connection with the granting of such Award or the
purchase of shares thereunder, the Award may not be paid or exercised in whole or in part unless
and until such qualification, registration, consent or approval shall

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have been effected or obtained free of any conditions the Committee, in its discretion, deems
unacceptable.

     14. Employment Status. No Award shall be construed as imposing upon the Company the obligation
to continue the employment or term of a Recipient. No employee or other person shall have any claim
or right to be granted an Award under the Plan.

     15. Assignability. No Award granted pursuant to the Plan shall be transferable or assignable
by the Recipient other than by will or the laws of descent and distribution and during the lifetime
of the Recipient shall be exercisable or payable only by or to him or her.

     16. Dilution or Other Adjustments. In the event of any changes in the capital structure of the
Company, including but not limited to a change resulting from a stock dividend or split-up, or
combination or reclassification of shares, the Board of Directors shall make such equitable
adjustments with respect to Awards or any provisions of this Plan as it deems necessary and
appropriate, including, if necessary, any adjustment in the maximum number of shares of Common
Stock subject to the Plan, the maximum number of shares that may be subject to one or more Awards
granted to any one Recipient during a calendar year, or the number of shares of Common Stock
subject to an outstanding Award.

     17. Merger, Consolidation, Reorganization, Liquidation, Etc. If the Company shall become a
party to any corporate merger, consolidation, major acquisition of property for stock,
reorganization, or liquidation, the Board of Directors shall make such arrangements it deems
advisable with respect to outstanding Awards, which shall be binding upon the Recipients of
outstanding Awards, including, but not limited to, the substitution of new Awards for any Awards
then outstanding, the assumption of any such Awards and the termination of or payment for such
Awards.

     18. Withholding Taxes. The Company shall have the right to deduct from all Awards hereunder
paid in cash any federal, state, local or foreign taxes required by law to be withheld with respect
to such Awards and, with respect to Awards paid in other than cash, to require the payment (through
withholding from the Recipient’s salary or otherwise) of any such taxes. Subject to such conditions
as the Committee may establish, Awards payable in shares of Common Stock, or in the form of an
Incentive Stock Option or Stock Option, may provide that the Recipients thereof may elect, in
accordance with any applicable regulations, to satisfy all or any part of the tax required to be
withheld by the Company in connection with such Award, or the exercise of such Incentive Stock
Option or Stock Option, by electing to have the Company withhold a number of shares of Common Stock
awarded, or purchased pursuant to such exercise, having a fair market value on the date the tax
withholding is required to be made equal to or less than the amount required to be withheld.

     19. Costs and Expenses. The cost and expenses of administering the Plan shall be borne by the
Company and not charged to any Award or to any Recipient.

     20. Funding of Plan. The Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of assets to assure the
payment of any Award under the Plan.

     21. Award Contracts. The Committee shall have the power to specify the form of Award contracts
to be granted from time to time pursuant to and in accordance with the

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provisions of the Plan and such contracts shall be final, conclusive and binding upon the Company,
the shareholders of the Company and the Recipients. No Recipient shall have or acquire any rights
under the Plan except such as are evidenced by a duly executed contract in the form thus specified.
No Recipient shall have any rights as a holder of Common Stock with respect to Awards hereunder
unless and until certificates for shares of Common Stock or Restricted Shares are issued to the
Recipient.

     22. Guidelines. The Board of Directors of the Company shall have the power to provide
guidelines for administration of the Plan by the Committee and to make any changes in such
guidelines as from time to time the Board deems necessary.

     23. Amendment and Discontinuance. The Board of Directors of the Company shall have the right
at any time during the continuance of the Plan to amend, modify, supplement, suspend or terminate
the Plan, provided that in the absence of the approval of the holders of a majority of the shares
of Common Stock of the Company present in person or by proxy at a duly constituted meeting of
shareholders of the Company, no such amendment, modification or supplement shall (i) increase the
aggregate number of shares which may be issued under the Plan, unless such increase is by reason of
any change in capital structure referred to in Section 16 hereof, (ii) change the termination date
of the Plan provided in Section 24, (iii) delete or amend the market value restrictions contained
in Sections 10 and 11 hereof, (iv) materially modify the requirements as to eligibility for
participation in the Plan, or (v) materially increase the benefits accruing to participants under
the Plan, and provided further, that no amendment, modification or termination of the Plan shall in
any manner affect any Award of any kind theretofore granted under the Plan without the consent of
the Recipient of the Award, unless such amendment, modification or termination is by reason of any
change in capital structure referred to in Section 16 hereof or unless the same is by reason of the
matters referred to in Section 17 hereof.

     24. Termination. The Committee may grant Awards at any time prior to July 1, 2013, on which
date this Plan will terminate except as to Awards then outstanding hereunder, which Awards shall
remain in effect until they have expired according to their terms or until July 1, 2023, whichever
first occurs. No Incentive Stock Option shall be exercisable later than 10 years following the date
it is granted.

     25. Approval. This Plan shall take effect July 1, 2003, contingent upon prior approval by the
shareholders of the Company.

7exv10w14

Exhibit 10.14

H&R BLOCK SEVERANCE PLAN

JANUARY 2008

1. Purpose. The H&R Block Severance Plan is a welfare benefit plan established by H&R Block
Management, LLC, 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) “Average Commission Amount” means an average of the Participant’s prior
three calendar year commission earnings (calculated each year beginning January 1).
For Participant’s, employed as a Sales Assistant, with less than three years of
commission history, “Average Commission Amount” means the average of total
commissions earned.

(b) “Cause” means one or more of the following grounds of an Employee’s

termination of employment with a Participating Employer:

(i) misconduct that interferes with or prejudices the proper conduct of the
Company, the Employee’s Participating Employer, or any other affiliate of the
Company, or which may reasonably result in harm to the reputation of the Company,
the Employee’s Participating Employer, or any other affiliate of the Company;

(ii) commission of an act of dishonesty or breach of trust resulting or intending
to result in material personal gain or enrichment of the Employee at the expense of
the Company, the Employee’s Participating Employer, or any other affiliate of the
Company;

(iii) commission of an act materially and demonstrably detrimental to the good will
of the Company, the Employee’s Participating Employer, or any other affiliate of the
Company, which act constitutes gross negligence or willful misconduct by the
Employee in the performance of the Employee’s material duties;

(iv) material violations of the policies or procedures of the Employee’s
Participating Employer, including, but not limited to, the H&R Block Code of Business
Ethics & Conduct, except those policies or procedures with respect to which an
exception has been granted under authority exercised or delegated by the
Participating Employer;

(v) disobedience, insubordination or failure to discharge employment duties;

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(vi) conviction of, or entrance of a plea of guilty or no contest, to a misdemeanor
(involving an act of moral turpitude) or a felony;

(vii) inability of the Employee, the Company, the Employee’s Participating Employer,
and/or any other affiliate of the Company 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 the Employee;

(viii) the Employee’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 Employee’s Participating Employer;

(ix) any grounds described as a discharge or other similar term on the Participating
Employer’s separation review form or other similar document stating the reason for the
Employee’s termination of employment, including poor performance; or

(x) any other grounds of termination of employment that the Participating Employer deems
for cause.

Notwithstanding the definition of Cause above, if an Employee’s employment with a Participating
Employer is subject to an employment agreement that contains a definition of “cause” for purposes
of termination of employment, such definition of “cause” in such employment agreement shall
replace the definition of Cause herein for the purpose of determining whether the Employee has
incurred a Qualifying Termination, but only with respect to such Employee.

(c) “Company” means H&R Block, Inc.

(d) “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 employees of a Participating Employer
classified as seasonal, temporary and/or inactive and employees who are customarily
employed by a Participating Employer less than 20 hours per week.

(e) “ERISA” means the Employee Retirement Income Security Act of 1974, as

amended.

(f) “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.

(g) “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

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employment was, as of the Termination Date or during the two-year period immediately prior to the
Termination Date, with H&R Block Management, LLC 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.

(h) “Monthly Compensation” means -

(i) with respect to a Participant paid on a salary basis, the Participant’s current annual
salary divided by 12;

(ii) with respect to a Participant paid on an hourly basis, the Participant’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;

(iii) with respect to a Participant, employed more than three years with a Participating
Employer, who is paid, in whole or in part, on commission, the Participant’s current base
wages or salary plus the Participant’s Average Commission Amount divided by 12;

(iv) with respect to a Participant, employed less than three years with a Participating
Employer as a Financial Advisor, Monthly Compensation shall be established by the
Compensation Schedule outlined in Schedule “C”; or

(v) with respect to a Participant, employed less than three years with a Participating
Employer as a Sales Assistant, who is paid, in whole or in part, on commission, the
Participant’s base wages or salary plus the Participant’s Average Commission Amount
divided by 12.

(i) “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.

(j) “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.

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

(1) “Plan Administrator” and “Plan Sponsor” means H&R Block Management, LLC. The address and
telephone number of H&R Block Management, LLC is One H&R Block Way, Kansas City, Missouri 64105,
(816) 854-3000. The Employer Identification Number assigned to H&R Block Management, LLC by the
Internal Revenue Service is 43-1632589.

(m) “Qualifying Termination” means the involuntary termination of an Employee, but does not
include a termination resulting from:

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

(ii) the redefinition of an Employee’s position to a lower compensation rate
or grade;

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

(iv)the non-renewal of employment contracts.

(n) “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.

(o) “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.

(p) “Severance Period” means the period of time during which a Participant may receive benefits
under this Plan. The Severance Period with 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(r), unless earlier
terminated in accordance with Section 8 of the Plan.

(q) “Termination Date” means the date the Employee severs employment with a Participating
Employer.

(r) “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 will be
credited with no less than the specified minimum Years of Service

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as outlined in Schedule “B”. Notwithstanding an Employee’s actual service, the maximum
number of creditable Years of Service shall be 18.

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.

An Employee who incurs a Qualifying Termination and signs a Release that has not been
revoked during any revocation period under the Release is 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 Compensation 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.

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(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

     (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 Participant’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

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(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 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, if necessary.

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

7

 

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

8

 

(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.

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,

9

 

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 12 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.

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.

10

 

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 or any successor
Plan thereto. 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 18, the applicable Participating Employer will
have no liability to pay any amount so attempted to be 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:

H&R Block Management, LLC

Attn: Secretary

 One H&R Block
Way

 Kansas City, Missouri
64105

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:

11

 

(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 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

12

 

rights and responsibilities under ERISA by calling the publications hotline of the Pension and
Welfare Benefits Administration.

IN WITNESS WHEREOF, H&R Block Management, LLC adopts this Severance Plan, as amended and restated,
effective this 15th day of January, 2008.

	 	 	 	 
	 

	 	H&R BLOCK MANAGEMENT, LLC	 
	 	 	 	 
	 
	 	/s/
Tammy Serati	 
	 

	 	 	 
	 

	 	Tammy Serati 	 
	 

	 	SVP Human Resources	 

13

 

Schedule A

Participating Employers

	 	•	 	Block Financial LLC
	 	 	 
	 	•	 	Franchise Partner, Inc.
	 	 	 
	 	•	 	H&R Block Bank Corporation
	 	 	 
	 	•	 	H&R Block Services, Inc. and its U.S.-based direct and indirect subsidiaries
	 	 	 
	 	•	 	H&R Block Management, LLC
	 	 	 
	 	•	 	HRB Financial Corporation and its U.S.-based direct and indirect subsidiaries, which subsidiaries include H&R Block Financial Advisors, Inc.
	 	 	 
	 	•	 	HRB Products, LLC
	 	 	 
	 	•	 	HRB Corporate Enterprises, LLC
	 	 	 
	 	•	 	Tax Works, Inc.
	 	 	 
	 	•	 	HRB International, LLC
	 	 	 
	 	•	 	RSM McGladrey Business Services, Inc.

Schedule B

Pay Grade/Bands

	 	 	 	 	 	 	 	 	 
	Pay Grade / Band	 	Minimum Years of Service	 	Maximum Years of Service
	Grades 81 and above
	 	 	6	 	 	 	18	 
	Band 006 and above
	 	 	 	 	 	 	 	 
	Grades 60F, 65-80, 140-145,
	 	 	3	 	 	 	18	 
	185-190

	 	 	 	 	 	 	 	 
	
Band 005
	 	 	 	 	 	 	 	 
	Grades 30-64,100-139,
	 	 	1	 	 	 	18	 
	155-180, and 298-299

Bands 001-004
	 	 	 	 	 	 	 	 

Schedule C

Financial Advisor Compensation Table

	 	 	 	 	 	 	 	 	 
	Projected Annual Earnings	 	Annualized Compensation	 	Monthly Compensation
	Less than $100,000
	 	$	24,000	 	 	$	2,000	 
	$100,000 but under $200,000
	 	$	50,000	 	 	$	4,166.66	 
	$100,000 but under $200,000
	 	$	90,000	 	 	$	7,500	 
	$100,000 but under $200,000
	 	$	130,000	 	 	$	10,833.33	 
	$400,000 - and over
	 	$	180,000	 	 	$	15,000	 

14

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