Document:

EMPLOYMENT AGREEMENT
                                --------------------

     THIS AGREEMENT, made and entered into as of this _____ day of May, 2000,
by and between Stilwell Financial, Inc., a Delaware corporation ("Stilwell")
and Anthony P. McCarthy, an individual ("Executive") to be effective on the
date of the Spin-off Distribution (as defined below).

     WHEREAS, the parties expect that all of the issued and outstanding stock
of Stilwell will be distributed (the "Spin-off Distribution") to the
shareholders of Kansas City Southern Industries, Inc. ("KCSI") which has been
the parent of Stilwell since its formation on January 23, 1998; and

     WHEREAS, Executive previously was employed by KCSI with duties primarily
relating to Stilwell since its formation in 1998, and Stilwell and Executive
desire for Stilwell to continue to employ Executive on the terms and
conditions set forth in this Agreement and to provide an incentive to
Executive to remain in the employ of Stilwell hereafter, particularly in the
event of any Change in Control (as herein defined) of Stilwell or any
Significant Subsidiary (as herein defined),  thereby establishing and
preserving continuity of management of Stilwell.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, it is agreed by and between Stilwell and Executive as
follows:

     1.     EMPLOYMENT.  Stilwell hereby employs Executive as its Vice
President-Finance to serve at the pleasure of the Board of Directors of
Stilwell (the "Stilwell Board") and to have such duties, powers and
responsibilities as may be prescribed or delegated from time to time by the
President or other officer to whom Executive reports, subject to the powers
vested in the Stilwell Board and in the stockholders of Stilwell.  Executive
shall faithfully perform his duties under this Agreement to the best of his
ability and shall devote substantially all of his working time and efforts to
the business and affairs of Stilwell and its affiliates.

     2.     COMPENSATION.

          (a)     BASE COMPENSATION.  Stilwell shall pay Executive as
compensation for his services hereunder an annual base salary at the rate of
$_________.  Such rate shall not be increased prior to January 1, 2003 and
shall not be reduced except as agreed by the parties or except as part of a
general salary reduction program imposed by Stilwell and applicable to all
officers of Stilwell.

          (b)     INCENTIVE COMPENSATION.  For the period of July 1, 2000
through December 31, 2002, Executive shall not be entitled to participate in
any Stilwell incentive compensation plan.

     3.     BENEFITS.  During the period of his employment hereunder, Stilwell
shall provide Executive with coverage under such benefit plans and programs as
are made generally available to similarly situated employees of Stilwell,
provided (a) Stilwell shall have no obligation with respect to any plan or
program if Executive is not eligible for coverage thereunder, and (b)
Executive acknowledges that stock options and other stock and equity
participation awards are granted in the discretion of the Stilwell Board or
the Compensation Committee of the Stilwell Board and that Executive has no
right to receive stock options or other equity participation awards or any
particular number or level of stock options or other awards.  In determining
contributions, coverage and benefits under any disability insurance policy and
under any cash compensation-based plan provided to Executive by Stilwell, it
shall be assumed that the value of Executive's annual compensation, pursuant
to this Agreement, is ____% of Executive's annual base salary.  Executive
acknowledges that all rights and benefits under benefit plans and programs
shall be governed by the official text of each such plan or program and not by
any summary or description thereof or any provision of this Agreement (except
to the extent this Agreement expressly modifies such benefit plans or
programs) and that Stilwell is not under any obligation to continue in effect
or to fund any such plan or program, except as provided in Paragraph 7 hereof.
Stilwell also shall reimburse Executive for ordinary and necessary travel and
other business expenses in accordance with policies and procedures established
by Stilwell.

     4.     TERMINATION.

          (a)     TERMINATION BY EXECUTIVE.  Executive may terminate this
Agreement and his employment hereunder by at least thirty (30) days advance
written notice to Stilwell, except that in the event of any material breach of
this Agreement by Stilwell, Executive may terminate this Agreement and his
employment hereunder immediately upon notice to Stilwell.

          (b)     DEATH OR DISABILITY.  This Agreement and Executive's
employment hereunder shall terminate automatically on the death or disability
of Executive, except to the extent employment is continued under Stilwell's
disability plan.  For purposes of this Agreement, Executive shall be deemed to
be disabled if he qualifies for disability benefits under Stilwell's long-term
disability plan.

          (c)     TERMINATION BY STILWELL FOR CAUSE.  Stilwell may terminate
this Agreement and Executive's employment "for cause" immediately upon notice
to Executive.  For purposes of this Agreement (except for Paragraph 7),
termination "for cause" shall mean termination based upon any one or more of
the following:

               (i)  Any material breach of this Agreement by Executive;

               (ii)  Executive's dishonesty involving Stilwell or any
     subsidiary of Stilwell;

               (iii)  Gross negligence or willful misconduct in the performance
     of Executive's duties as determined in good faith by the Stilwell Board;

               (iv)  Willful failure by Executive to follow reasonable
     instructions of the President or other officer to whom Executive reports
     concerning the operations or business of Stilwell or any subsidiary of
     Stilwell;

               (v)  Executive's fraud or criminal activity; or

               (vi)  Embezzlement or misappropriation by Executive.

          (d)     TERMINATION BY STILWELL OTHER THAN FOR CAUSE.

               (i)  Stilwell may terminate this Agreement and Executive's
     employment other than for cause immediately upon notice to Executive, and
     in such event, Stilwell shall provide severance benefits to Executive in
     accordance with Paragraph 4(d)(ii) below.

               (ii)  Unless the provisions of Paragraph 7 of this Agreement
     are applicable, if Executive's employment is terminated under Paragraph
     4(d)(i), Stilwell shall continue, for a period of ____ (__) year following
     such termination, (a) to pay to Executive as severance pay a monthly
     amount equal to one-twelfth (1/12th) of the annual base salary referenced
     in Paragraph 2(a) above, at the rate in effect immediately prior to
     termination, and, (b) to reimburse Executive for the cost (including
     state and federal income taxes payable with respect to this reimbursement)
     of continuing the health insurance coverage provided pursuant to this
     Agreement or obtaining health insurance coverage comparable to the health
     insurance provided pursuant to this Agreement, and obtaining coverage
     comparable to the life insurance provided pursuant to this Agreement,
     unless Executive is provided comparable health or life insurance coverage
     in connection with other employment.  The foregoing obligations of
     Stilwell shall continue until the end of such ____ (__) year period
     notwithstanding the death or disability of Executive during said period
     (except, in the event of death, the obligation to reimburse Executive for
     the cost of life insurance shall not continue).  In the year in which
     termination of employment occurs, Executive shall be eligible to receive
     benefits under the Stilwell Incentive Compensation Plan and the Stilwell
     Executive Plan (if such Plans then are in existence and Executive was
     entitled to participate immediately prior to termination) in accordance
     with the provisions of such plans then applicable, and severance pay
     received in such year shall be taken into account for the purpose of
     determining benefits, if any, under the Stilwell Incentive Compensation
     Plan but not under the Stilwell Executive Plan.  After the year in which
     termination occurs, Executive shall not be entitled to accrue or receive
     benefits under the Stilwell Incentive Compensation Plan or the Stilwell
     Executive Plan with respect to the severance pay provided herein,
     notwithstanding that benefits under such plan then are still generally
     available to executive employees of Stilwell.  After termination of
     employment, Executive shall not be entitled to accrue or receive benefits
     under any other employee benefit plan or program, except that Executive
     shall be entitled to participate in the Stilwell Employee Stock Ownership
     Plan and the Stilwell Section 401(k) with Profit Sharing Plan Portion in
     the year of termination of employment only if Executive meets all
     requirements of such plans for participation in such year.

     5.     NON-DISCLOSURE.  During the term of this Agreement and at all
times after any termination of this Agreement, Executive shall not, either
directly or indirectly, use or disclose any Stilwell trade secret, except to
the extent necessary for Executive to perform his duties for Stilwell while an
employee.  For purposes of this Agreement, the term "Stilwell trade secret"
shall mean any information regarding the business or activities of Stilwell or
any subsidiary or affiliate, including any formula, pattern, compilation,
program, device, method, technique, process, customer list, technical
information or other confidential or proprietary information, that (a) derives
independent economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other
persons who can obtain economic value from its disclosure or use, and (b) is
the subject of efforts of Stilwell or its subsidiary or affiliate that are
reasonable under the circumstance to maintain its secrecy.  In the event of
any breach of this Paragraph 5 by Executive, Stilwell shall be entitled to
terminate any and all remaining severance benefits under Paragraph 4(d)(ii)
and shall be entitled to pursue such other legal and equitable remedies as may
be available.

     6.     DUTIES UPON TERMINATION; SURVIVAL.

          (a)     DUTIES.  Upon termination of this Agreement by Stilwell or
Executive for any reason, Executive shall immediately return to Stilwell all
Stilwell trade secrets which exist in tangible form and shall sign such
written resignations from all positions as an officer, director or member of
any committee or board of Stilwell and all direct and indirect subsidiaries
and affiliates of Stilwell as may be requested by Stilwell and shall sign such
other documents and papers relating to Executive's employment, benefits and
benefit plans as Stilwell may reasonably request.

          (b)     SURVIVAL.  The provisions of Paragraphs 5, 6(a) and 7 of
this Agreement shall survive any termination of this Agreement by Stilwell or
Executive, and the provisions of Paragraph 4(d)(ii) shall survive any
termination of this Agreement by Stilwell under Paragraph 4(d)(i).

     7.     CONTINUATION OF EMPLOYMENT UPON CHANGE IN CONTROL OF STILWELL.

          (a)     CONTINUATION OF EMPLOYMENT.  Subject to the terms and
conditions of this Paragraph 7, in the event of a Change in Control (as
defined in Paragraph 7(d)) at any time during the term of this Agreement,
Executive agrees to remain in the employ of Stilwell for a period of three
years (the "Three-Year Period") from the date of such Change in Control (the
"Control Change Date").  Stilwell agrees to continue to employ Executive for
the Three-Year Period.  During the Three-Year Period, (i) the Executive's
position (including offices, titles, reporting requirements and
responsibilities), authority and duties shall be at least commensurate in all
material respects with the most significant of those held, exercised and
assigned at any time during the 12 month period immediately before the Control
Change Date and (ii) the Executive's services shall be performed at the
location where Executive was employed immediately before the Control Change
Date or at any other location less than 40 miles from such former location.
During the Three-Year Period, Stilwell shall continue to pay to Executive an
annual base salary on the same basis and at the same intervals as in effect
prior to the Control Change Date at a rate not less than 12 times the highest
monthly base salary paid or payable to the Executive by Stilwell in respect of
the 12-month period immediately before the Control Change Date.

          (b)     BENEFITS.  During the Three-Year Period, Executive shall be
entitled to participate, on the basis of his executive position, in each of
the following Stilwell plans (together, the "Specified Benefits") in
existence, and in accordance with the terms thereof, at the Control Change
Date:

               (i)  any benefit plan, and trust fund associated therewith,
     related to (a) life, health, dental, disability, accidental death and
     dismemberment insurance or accrued but unpaid vacation time, (b) profit
     sharing, thrift or deferred savings (including deferred compensation,
     such as under Section 401(k) plans), (c) retirement or pension benefits,
     (d) ERISA excess benefits and similar plans and (e) tax favored employee
     stock ownership (such as under ESOP, and Employee Stock Purchase
     programs); and

               (ii)  any other benefit plans hereafter made generally
     available to executives of Executive's level or to the employees of
     Stilwell generally.

     In addition, Stilwell shall use its best efforts to cause all outstanding
options held by Executive under any stock option plan of Stilwell or its
affiliates to become immediately exercisable on the Control Change Date and to
the extent that such options are not vested and are subsequently forfeited,
the Executive shall receive a lump-sum cash payment within 5 days after the
options are forfeited equal to the difference between the fair market value of
the shares of stock subject to the non-vested, forfeited options determined as
of the date such options are forfeited and the exercise price for such
options.  During the Three-Year Period Executive shall be entitled to
participate, on the basis of his executive position, in any incentive
compensation plan of Stilwell in accordance with the terms thereof at the
Control Change Date; provided that if under Stilwell programs or Executive's
Employment Agreement in existence immediately prior to the Control Change
Date, there are written limitations on participation for a designated time
period in any incentive compensation plan, such limitations shall continue
after the Control Change Date to the extent so provided for prior to the
Control Change Date.

     If the amount of contributions or benefits with respect to the Specified
Benefits or any incentive compensation is determined on a discretionary basis
under the terms of the Specified Benefits or any incentive compensation plan
immediately prior to the Control Change Date, the amount of such contributions
or benefits during the Three-Year Period for each of the Specified Benefits
shall not be less than the average annual contributions or benefits for each
Specified Benefit for the three plan years ending prior to the Control Change
Date and, in the case of any incentive compensation plan, the amount of the
incentive compensation during the Three-Year Period shall not be less than 75%
of the maximum that could have been paid to the Executive under the terms of
the incentive compensation plan.

          (c)     PAYMENT.  With respect to any plan or agreement under which
Executive would be entitled at the Control Change Date to receive Specified
Benefits or incentive compensation as a general obligation of Stilwell which
has not been separately funded (including specifically, but not limited to,
those referred to under Paragraph 7(b)(i) and (ii) above), Executive shall
receive within five (5) days after such date full payment in cash (discounted
to the then present value on the basis of a rate of seven percent (7%) per
annum) of all amounts to which he is then entitled thereunder.

          (d)     CHANGE IN CONTROL.  Except as provided in the last sentence
of this Paragraph 7(d), for purposes of this Agreement, a "Change in Control"
means any one or more of the following:

               (i)  the acquisition or holding by any person, entity or group
     (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
     Exchange Act of 1934 (the "Exchange Act"), other than by Stilwell or any
     Subsidiary (as defined below), or any employee benefit plan of Stilwell
     or a Subsidiary (and other than by KCSI prior to the Spin-off
     Distribution), of beneficial ownership (within the meaning of Rule 13d-3
     under the Exchange Act) of 20% or more of the then-outstanding common
     stock or the combined voting power of the then-outstanding voting
     securities ("Voting Power") of Stilwell; PROVIDED, HOWEVER, that no
     Change in Control shall occur solely by reason of any such acquisition by
     a corporation with respect to which, after such acquisition, more than
     60% of both the then-outstanding common shares and the then-outstanding
     Voting Power of such corporation are then beneficially owned, directly or
     indirectly, by the persons who were the beneficial owners of the then-
     outstanding common stock and Voting Power of Stilwell immediately before
     such acquisition, in substantially the same proportions as their
     respective ownership, immediately before such acquisition, of the then-
     outstanding common stock and Voting Power of Stilwell; or

               (ii)  individuals who, as of the date of the Spin-off
     Distribution, constitute the Stilwell Board (the "Incumbent Board") cease
     for any reason to constitute at least 75% of the Stilwell Board; PROVIDED
     that any individual who becomes a director after the Spin-off
     Distribution whose election or nomination for election by the
     stockholders of Stilwell was approved by at least 75% of the Incumbent
     Board (other than an election or nomination of an individual whose
     initial assumption of office is in connection with an actual or
     threatened "election contest" relating to the election of the directors
     of Stilwell (as such terms are used in Rule 14a-11 under the Exchange
     Act) or "tender offer" (as such term is used in Section 14(d) of the
     Exchange Act) or a proposed Extraordinary Transaction (as defined below))
     shall be deemed to be a member of the Incumbent Board; or

               (iii)  approval by the stockholders of Stilwell of any one or
     more of the following:

                    (A)  a merger, reorganization, consolidation or similar
          transaction (any of the foregoing, an "Extraordinary Transaction")
          with respect to which persons who were the respective beneficial
          owners of the then-outstanding common stock and Voting Power of
          Stilwell immediately before such Extraordinary Transaction would
          not, if such Extraordinary Transaction were to be consummated
          immediately after such stockholder approval (but otherwise in
          accordance with the terms presented in writing to the stockholders
          of Stilwell for their approval), beneficially own, directly or
          indirectly, more than 60% of both the then-outstanding common shares
          and the then-outstanding Voting Power of the corporation resulting
          from such Extraordinary Transaction, in substantially the same
          proportions as their respective ownership, immediately before such
          Extraordinary Transaction, of the then-outstanding common stock and
          Voting Power of Stilwell,

                    (B)  a liquidation or dissolution of Stilwell, or

                    (C)  the sale or other disposition of all or substantially
          all of the assets of Stilwell in one transaction or a series of
          related transactions; or

               (iv)  the sale or other disposition by Stilwell, directly or
     indirectly, whether by merger, consolidation, combination, lease,
     exchange, spin-off, split-off, or other means, of any Significant
     Subsidiary or any reduction in Stilwell's direct or indirect beneficial
     ownership of any Significant Subsidiary to less than 50% of the Voting
     Power of such entity.

For purposes of this Agreement, "Subsidiary" shall mean any entity of which at
least 50% of the Voting Power is beneficially owned, directly or indirectly,
by Stilwell and "Significant Subsidiary" shall mean (A) any Subsidiary which
contributed 30% or more of the total combined revenues of Stilwell and all
Subsidiaries for the prior calendar year, and (B) any one or more entities,
businesses or groups of assets directly or indirectly sold or disposed of by
Stilwell (within the meaning of paragraph 7(d)(iv)) within any two year period
that contributed 30% of more of such total combined revenues or would have
contributed such 30% based on revenues of such entities, businesses or groups
of assets for the calendar year prior to their sale or disposition.

Notwithstanding the foregoing provisions of this Paragraph 7(d) to the
contrary, the Spin-off Distribution shall not constitute a Change in Control.

          (e)     TERMINATION AFTER CONTROL CHANGE DATE.  Notwithstanding any
other provision of this Paragraph 7, at any time after the Control Change
Date, Stilwell may terminate the employment of Executive (the "Termination"),
but unless such Termination is for Cause as defined in subparagraph (g) or for
disability, within five (5) days of the Termination Stilwell shall pay to
Executive his full base salary through the Termination, to the extent not
theretofore paid, plus a lump sum amount (the "Special Severance Payment")
equal to the product (discounted to the then present value on the basis of a
rate of seven percent (7%) per annum) of (i) _____% of his annual base salary
specified in Paragraph 7(a) multiplied by (ii)  _____, and Specified Benefits
(excluding any incentive compensation) to which Executive was entitled
immediately prior to Termination shall continue until the end of the 3-year
period ("Benefits Period") beginning on the date of Termination.  If any plan
pursuant to which Specified Benefits are provided immediately prior to
Termination would not permit continued participation by Executive after
Termination, then Stilwell shall pay to Executive within five (5) days after
Termination a lump sum payment equal to the amount of Specified Benefits
Executive would have received under such plan if Executive had been fully
vested in the average annual contributions or benefits in effect for the three
plan years ending prior to the Control Change Date (regardless of any
limitations based on the earnings or performance of Stilwell) and a continuing
participant in such plan to the end of the Benefits Period.  Following the end
of the Benefits Period, Stilwell shall continue to provide to the Executive
and the Executive's family the following benefits ("Post-Period Benefits"):
(1) prior to the Executive's attainment of age sixty (60), health,
prescription and dental benefits equivalent to those then applicable to active
peer executives of Stilwell and their families, as the same may be modified
from time to time, and (2) following the Executive's attainment of age sixty
(60) (and without regard to the Executive's period of service with Stilwell),
health and prescription benefits equivalent to those then applicable to
retired peer executives of Stilwell and their families, as the same may be
modified from time to time.  The cost to the Executive of such Post-Period
Benefits shall not exceed the cost of such benefits to active or retired (as
applicable) peer executives, as the same may be modified from time to time.
Notwithstanding the preceding two sentences of this Paragraph 7(e), if the
Executive is covered under any health, prescription or dental plan provided by
a subsequent employer, then the corresponding type of plan coverage (i.e.,
health, prescription or dental) required to be provided as Post-Period
Benefits under this Paragraph 7(e) shall cease.  The Executive's rights under
this Paragraph 7(e) shall be in addition to, and not in lieu of, any post-
termination continuation coverage or conversion rights the Executive may have
pursuant to applicable law, including without limitation continuation coverage
required by Section 4980 of the Code.  Nothing in this Paragraph 7(e) shall be
deemed to limit in any manner the reserved right of Stilwell, in its sole and
absolute discretion, to at any time amend, modify or terminate health,
prescription or dental benefits for active or retired employees generally.

          (f)     RESIGNATION AFTER CONTROL CHANGE DATE.  In the event of a
Change in Control as defined in Paragraph 7(d), thereafter, upon good reason
(as defined below), Executive may, at any time during the 3-year period
following the Change in Control, in his sole discretion, on not less than
thirty (30) days' written notice (the "Notice of Resignation") to the
Secretary of Stilwell and effective at the end of such notice period, resign
his employment with Stilwell (the "Resignation").  Within five (5) days of
such a Resignation, Stilwell shall pay to Executive his full base salary
through the effective date of such Resignation, to the extent not theretofore
paid, plus a lump sum amount equal to the Special Severance Payment (computed
as provided in the first sentence of Paragraph 7(e), except that for purposes
of such computation all references to "Termination" shall be deemed to be
references to "Resignation").  Upon Resignation of Executive, Specified
Benefits to which Executive was entitled immediately prior to Resignation
shall continue on the same terms and conditions as provided in Paragraph 7(e)
in the case of Termination (including equivalent payments provided for
therein), and Post-Period Benefits shall be provided on the same terms and
conditions as provided in Paragraph 7(e) in the case of Termination.   For
purposes of this Agreement, "good reason" means any one or more of the
following:

               (i)  the assignment to the Executive of any duties which result
     in a material adverse change in the Executive's position (including
     status, offices, titles, and reporting requirements), authority, duties,
     or other responsibilities with Stilwell, or any other action of Stilwell
     which results in a material adverse change in such position, authority,
     duties, or responsibilities, other than an insubstantial and inadvertent
     action which is remedied by Stilwell promptly after receipt of notice
     thereof given by the Executive,

               (ii)  any relocation of the Executive of more than 40 miles
     from the place where the Executive was located at the time of the Change
     in Control;

               (iii)  a material reduction or elimination of any component of
     the Executive's rate of compensation, including (x) base salary, (y) any
     incentive payment or (z) benefits or prerequisites which the Executive
     was receiving immediately prior to a Change in Control, or;

               (iv)  any failure by Stilwell to comply with any of the
     provisions of Paragraph 7;

A passage of time prior to delivery of the Notice of Resignation or a failure
by the Executive to include in the Notice of Resignation any fact or
circumstance which contributes to a showing of good reason shall not waive any
right of the Executive under this Agreement or preclude the Executive from
asserting such fact or circumstance in enforcing rights under this Agreement.

          (g)     TERMINATION FOR CAUSE AFTER CONTROL CHANGE DATE.
Notwithstanding any other provision of this Paragraph 7, at any time after the
Control Change Date, Executive may be terminated by Stilwell "for Cause."
Cause means commission by the Executive of any felony or willful breach of
duty by the Executive in the course of the Executive's employment, except that
Cause shall not mean:

               (i)  bad judgment or negligence;

               (ii)  any act or omission believed by the Executive in good
     faith to have been in or not opposed to the interest of Stilwell (without
     intent of the Executive to gain, directly or indirectly, a profit to
     which the Executive was not legally entitled);

               (iii)  any act or omission with respect to which a
     determination could properly have been made by the Stilwell Board that
     the Executive met the applicable standard of conduct for indemnification
     or reimbursement under Stilwell's by-laws, any applicable indemnification
     agreement, or applicable law, in each case in effect at the time of such
     act or omission; or

                (iv)  any act or omission with respect to which Notice of
     Termination of the Executive is given more than 12 months after the
     earliest date on which any member of the Stilwell Board, not a party to
     the act or omission, knew or should have known of such act or omission.

Any Termination of the Executive's employment by Stilwell for Cause shall be
communicated to the Executive by Notice of Termination.

          (h)     GROSS-UP FOR CERTAIN TAXES.  If it is determined (by the
reasonable computation of Stilwell's independent auditors, which
determinations shall be certified to by such auditors and set forth in a
written certificate ("Certificate") delivered to the Executive) that any
benefit received or deemed received by the Executive from Stilwell pursuant to
this Agreement or otherwise (collectively, the "Payments") is or will become
subject to any excise tax under Section 4999 of the Code or any similar tax
payable under any United States federal, state, local or other law (such
excise tax and all such similar taxes collectively, "Excise Taxes"), then
Stilwell shall, immediately after such determination, pay the Executive an
amount (the "Gross-up Payment") equal to the product of:

               (i)    the amount of such Excise Taxes;

     multiplied by

              (ii)     the Gross-up Multiple (as defined in Paragraph 7(k).

               The Gross-up Payment is intended to compensate the Executive
     for the Excise Taxes and any federal, state, local or other income or
     excise taxes or other taxes payable by the Executive with respect to the
     Gross-up Payment.

          Stilwell shall cause the preparation and delivery to the
     Executive of a Certificate upon request at any time.  Stilwell shall, in
     addition to complying with this Paragraph 7(h), cause all determinations
     and certifications under Paragraphs 7(h)-(o) to be made as soon as
     reasonably possible and in adequate time to permit the Executive to
     prepare and file the Executive's individual tax returns on a timely
     basis.

          (i)     DETERMINATION BY THE EXECUTIVE.

               (i)  If Stilwell shall fail (a) to deliver a Certificate to the
     Executive or (b) to pay to the Executive the amount of the Gross-up
     Payment, if any, within 14 days after receipt from the Executive of a
     written request for a Certificate, or if at any time following receipt of
     a Certificate the Executive disputes the amount of the Gross-up Payment
     set forth therein, the Executive may elect to demand the payment of the
     amount which the Executive, in accordance with an opinion of counsel to
     the Executive ("Executive Counsel Opinion"), determines to be the Gross-
     up Payment.  Any such demand by the Executive shall be made by delivery
     to Stilwell of a written notice which specifies the Gross-up Payment
     determined by the Executive and an Executive Counsel Opinion regarding
     such Gross-up Payment (such written notice and opinion collectively, the
     "Executive's Determination").  Within 14 days after delivery of the
     Executive's Determination to Stilwell, Stilwell shall either (a) pay the
     Executive the Gross-up Payment set forth in the Executive's Determination
     (less the portion of such amount, if any, previously paid to the
     Executive by Stilwell) or (b) deliver to the Executive a Certificate
     specifying the Gross-up Payment determined by Stilwell's independent
     auditors, together with an opinion of Stilwell's counsel ("Stilwell
     Counsel Opinion"), and pay the Executive the Gross-up Payment specified
     in such Certificate.  If for any reason Stilwell fails to comply with
     clause (b) of the preceding sentence, the Gross-up Payment specified in
     the Executive's Determination shall be controlling for all purposes.

               (ii)  If the Executive does not make a request for, and
     Stilwell does not deliver to the Executive, a Certificate, Stilwell
     shall, for purposes of Paragraph 7(j), be deemed to have determined that
     no Gross-up Payment is due.

          (j)     ADDITIONAL GROSS-UP AMOUNTS.  If, despite the initial
conclusion of Stilwell and/or the Executive that certain Payments are neither
subject to Excise Taxes nor to be counted in determining whether other
Payments are subject to Excise Taxes (any such item, a "Non-Parachute Item"),
it is later determined (pursuant to subsequently-enacted provisions of the
Code, final regulations or published rulings of the IRS, final IRS
determination or judgment of a court of competent jurisdiction or Stilwell's
independent auditors) that any of the Non-Parachute Items are subject to
Excise Taxes, or are to be counted in determining whether any Payments are
subject to Excise Taxes, with the result that the amount of Excise Taxes
payable by the Executive is greater than the amount determined by Stilwell or
the Executive pursuant to Paragraph 7(h) or Paragraph 7(i), as applicable,
then Stilwell shall pay the Executive an amount (which shall also be deemed a
Gross-up Payment) equal to the product of:

               (i)  the sum of (a) such additional Excise Taxes and (b) any
     interest, fines, penalties, expenses or other costs incurred by the
     Executive as a result of having taken a position in accordance with a
     determination made pursuant to Paragraph 7(h); multiplied by

               (ii)  the Gross-up Multiple.

          (k)     GROSS-UP MULTIPLE.   The Gross-up Multiple shall equal a
fraction, the numerator of which is one (1.0), and the denominator of which is
one (1.0) minus the sum, expressed as a decimal fraction, of the rates of all
federal, state, local and other income and other taxes and any Excise Taxes
applicable to the Gross-up Payment; provided that, if such sum exceeds 0.8, it
shall be deemed equal to 0.8 for purposes of this computation.  (If different
rates of tax are applicable to various portions of a Gross-up Payment, the
weighted average of such rates shall be used.)

          (l)     OPINION OF COUNSEL.  "Executive Counsel Opinion" means a
legal opinion of nationally recognized executive compensation counsel that
there is a reasonable basis to support a conclusion that the Gross-up Payment
determined by the Executive has been calculated in accord with this Paragraph
7 and applicable law.  "Company Counsel Opinion" means a legal opinion of
nationally recognized executive compensation counsel that (i) there is a
reasonable basis to support a conclusion that the Gross-up Payment set forth
in the Certificate of Stilwell's independent auditors has been calculated in
accord with this Paragraph 7 and applicable law, and (ii) there is no
reasonable basis for the calculation of the Gross-up Payment determined by the
Executive.

          (m)     AMOUNT INCREASED OR CONTESTED.  The Executive shall notify
Stilwell in writing of any claim by the IRS or other taxing authority that, if
successful, would require the payment by Stilwell of a Gross-up Payment.  Such
notice shall include the nature of such claim and the date on which such claim
is due to be paid.  The Executive shall give such notice as soon as
practicable, but no later than 10 business days, after the Executive first
obtains actual knowledge of such claim; provided, however, that any failure to
give or delay in giving such notice shall affect Stilwell's obligations under
this Paragraph 7 only if and to the extent that such failure results in actual
prejudice to Stilwell.  The Executive shall not pay such claim less than 30
days after the Executive gives such notice to Stilwell (or, if sooner, the
date on which payment of such claim is due).  If Stilwell notifies the
Executive in writing before the expiration of such period that it desires to
contest such claim, the Executive shall:

               (i)  give Stilwell any information that it reasonably requests
     relating to such claim;

               (ii)  take such action in connection with contesting such claim
     as Stilwell reasonably requests in writing from time to time, including,
     without limitation, accepting legal representation with respect to such
     claim by an attorney reasonably selected by Stilwell;

               (iii)  cooperate with Stilwell in good faith to contest such
     claim; and

               (iv)  permit Stilwell to participate in any proceedings
     relating to such claim; provided, however, that Stilwell shall bear and
     pay directly all costs and expenses (including additional interest and
     penalties) incurred in connection with such contest and shall indemnify
     and hold the Executive harmless, on an after-tax basis, for any Excise
     Tax or income tax, including related interest and penalties, imposed as a
     result of such representation and payment of costs and expenses.  Without
     limiting the foregoing, Stilwell shall control all proceedings in
     connection with such contest and, at its sole option, may pursue or
     forego any and all administrative appeals, proceedings, hearings and
     conferences with the taxing authority in respect of such claim and may,
     at its sole option, either direct the Executive to pay the tax claimed
     and sue for a refund or contest the claim in any permissible manner.  The
     Executive agrees to prosecute such contest to a determination before any
     administrative tribunal, in a court of initial jurisdiction and in one or
     more appellate courts, as Stilwell shall determine; provided, however,
     that if Stilwell directs the Executive to pay such claim and sue for a
     refund, Stilwell shall advance the amount of such payment to the
     Executive, on an interest-free basis and shall indemnify the Executive,
     on an after-tax basis, for any Excise Tax or income tax, including
     related interest or penalties, imposed with respect to such advance; and
     further provided that any extension of the statute of limitations
     relating to payment of taxes for the taxable year of the Executive with
     respect to which such contested amount is claimed to be due is limited
     solely to such contested amount.  The Stilwell's control of the contest
     shall be limited to issues with respect to which a Gross-up Payment would
     be payable.  The Executive shall be entitled to settle or contest, as the
     case may be, any other issue raised by the IRS or other taxing authority.

          (n)     REFUNDS.  If, after the receipt by the Executive of an
amount advanced by Stilwell pursuant to Paragraph 7(m), the Executive receives
any refund with respect to such claim, the Executive shall (subject to
Stilwell's complying with the requirements of Paragraph 7(m)) promptly pay
Stilwell the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto).  If, after the receipt by
the Executive of an amount advanced by Stilwell pursuant to Paragraph 7(m), a
determination is made that the Executive shall not be entitled to a full
refund with respect to such claim and Stilwell does not notify the Executive
in writing of its intent to contest such determination before the expiration
of 30 days after such determination, then the applicable part of such advance
shall be forgiven and shall not be required to be repaid and the amount of
such advance shall offset, to the extent thereof, the amount of Gross-up
Payment required to be paid.  Any contest of a denial of refund shall be
controlled by Paragraph 7(m).

          (o)     EXPENSES.  If any dispute should arise under this Agreement
after the Control Change Date involving an effort by Executive to protect,
enforce or secure rights or benefits claimed by Executive hereunder, Stilwell
shall pay (promptly upon demand by Executive accompanied by reasonable
evidence of incurrence) all reasonable expenses (including attorneys' fees)
incurred by Executive in connection with such dispute, without regard to
whether Executive prevails in such dispute except that Executive shall repay
Stilwell any amounts so received if a court having jurisdiction shall make a
final, nonappealable determination that Executive acted frivolously or in bad
faith by such dispute.  To assure Executive that adequate funds will be made
available to discharge Stilwell's obligations set forth in the preceding
sentence, Stilwell has established a trust and upon the occurrence of a Change
in Control shall promptly deliver to the trustee of such trust to hold in
accordance with the terms and conditions thereof that sum which the Stilwell
Board shall have determined is reasonably sufficient for such purpose.

          (p)     PREVAILING PROVISIONS.  On and after the Control Change
Date, the provisions of this Paragraph 7 shall control and take precedence
over any other provisions of this Agreement which are in conflict with or
address the same or a similar subject matter as the provisions of this
Paragraph 7.

     8.     MITIGATION AND OTHER EMPLOYMENT.  After a termination of
Executive's employment pursuant to Paragraph 4(d)(i) or a Change in Control as
defined in Paragraph 7(d), Executive shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other
employment or otherwise, and except as otherwise specifically provided in
Paragraph 4(d)(ii) with respect to health and life insurance and in Paragraph
7(e) with respect to health, prescription and dental benefits, no such other
employment, if obtained, or compensation or benefits payable in connection
therewith shall reduce any amounts or benefits to which Executive is entitled
hereunder.  Such amounts or benefits payable to Executive under this Agreement
shall not be treated as damages but as severance compensation to which
Executive is entitled because Executive's employment has been terminated.

     9.     NOTICE.  Notices and all other communications to either party
pursuant to this Agreement shall be in writing and shall be deemed to have
been given when personally delivered, delivered by facsimile or deposited in
the United States mail by certified or registered mail, postage prepaid,
addressed, in the case of Stilwell, to Stilwell at 114 West 11th Street,
Kansas City, Missouri 64105, Attention: Secretary, or, in the case of the
Executive, to him at 79 Beach Drive, Lake tapawingo, MO  64015, or to such
other address as a party shall designate by notice to the other party.

     10.     AMENDMENT.  No provision of this Agreement may be amended,
modified, waived or discharged unless such amendment, waiver, modification or
discharge is agreed to in a writing signed by Executive and the President of
Stilwell.  No waiver by any party hereto at any time of any breach by another
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the time or at any prior or
subsequent time.

     11.     SUCCESSORS IN INTEREST.  The rights and obligations of Stilwell
under this Agreement shall inure to the benefit of and be binding in each and
every respect upon the direct and indirect successors and assigns of Stilwell,
regardless of the manner in which such successors or assigns shall succeed to
the interest of Stilwell hereunder, and this Agreement shall not be terminated
by the voluntary or involuntary dissolution of Stilwell or by any merger or
consolidation or acquisition involving Stilwell or upon any transfer of all or
substantially all of Stilwell's assets, or terminated otherwise than in
accordance with its terms.  In the event of any such merger or consolidation
or transfer of assets, the provisions of this Agreement shall be binding upon
and shall inure to the benefit of the surviving corporation or the corporation
or other person to which such assets shall be transferred.  Neither this
Agreement nor any of the payments or benefits hereunder may be pledged,
assigned or transferred by Executive either in whole or in part in any manner,
without the prior written consent of Stilwell.

     12.     SEVERABILITY.  The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such
invalid or unenforceable provisions were omitted.

     13.     CONTROLLING LAW AND JURISDICTION.  The validity, interpretation
and performance of this Agreement shall be subject to and construed under the
laws of the State of Missouri, without regard to principles of conflicts of
law.

     14.     ENTIRE AGREEMENT.  This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
terminates and supersedes all other prior agreements and understandings, both
written and oral, between the parties with respect to the terms of Executive's
employment or severance arrangements.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above stated.

                                      STILWELL FINANCIAL, INC.

                                      By  _________________________________
                                      Name:  ______________________________
                                      Title:  _____________________________

                                      EXECUTIVE

                                       ___________________________________
                                       Anthony P. McCarthySTILWELL FINANCIAL INC.
                          EMPLOYEE STOCK PURCHASE PLAN
                              ---------------
                                             , 2000

                                    1. PURPOSE

     The purpose of this Employee Stock Purchase Plan is to encourage and
enable Eligible Employees of Stilwell Financial Inc. ("Stilwell") and certain
of its Subsidiaries and Affiliates to acquire proprietary interests in Stilwell
through the ownership of Common Stock in order to establish a closer
identification of their interests with those of Stilwell by providing them with
a more direct means of participating in its growth and earnings which, in turn,
will provide motivation for participating Employees to remain in the employ of
and to give greater effort on behalf of the Stilwell Group.

                                   2. DEFINITIONS

     The following words or terms, when used herein, shall have the following
respective meanings:

     (a) "Plan" or "The Plan" shall mean and refer to this Stilwell Employee
Stock Purchase Plan.

     (b) "Stilwell Group" shall mean and refer to Stilwell, and its
Subsidiaries and Affiliates collectively.

     (c) "Stilwell" shall mean and refer to Stilwell Financial Inc.

     (d) "Shares," "Stock" or "Common Stock" shall mean and refer to shares of
$0.01 par value Common Stock of Stilwell, which it is authorized by its
Certificate of Incorporation to issue.

     (e) "Committee" or "The Committee" shall mean and refer to the Committee
appointed by the Board of Directors of Stilwell, to administer this Plan.

     (f) "Eligible Employee" or "Employee" shall mean and refer to a person
regularly employed by Stilwell or those of its Subsidiary or Affiliated
Entities designated by the Stilwell Board of Directors on such date as shall be
designated by the Committee for any offering of Stock made pursuant to this
Plan; provided, however, persons whose customary employment is for only 20
hours or less per week or for not more than five months in any calendar year
shall not be an "Employee" or an "Eligible Employee" as those terms are used
herein.

     (g) "Purchase Period" shall mean and refer to the number of calendar
months during which installment payments for Stock purchased under the Plan
shall be made.

     (h) "Option" or "Options" shall mean and refer to the right or rights
granted to Eligible Employees to purchase Stilwell's Common Stock under an
offering made under this Plan pursuant to their elections to purchase.

     (i) "Subscription Period" shall mean and refer to that period of time
prescribed in any offer of Stock under this Plan beginning on the first day
Employees may elect to purchase Shares and ending on the last day such
elections to purchase are authorized to be received and accepted.

     (j) "Average Market Price" shall mean and refer to the mean of the high
and low prices for Stilwell Shares traded on the New York Stock Exchange.

     (k) "Annual Pay" shall mean and refer to annual base rate of pay as
determined from the payroll records on such date as shall be designated by the
Committee for any offer of Stock made pursuant to this Plan.

     (l) "Maximum Purchase Price" shall mean 85% of the Average Market Price on
the Date of Grant designated by the Board of Directors or the Committee under
an offering made under this Plan, or if no Shares were traded on that day, on
the last day prior thereto on which Shares were traded.

     (m) "Outstanding Election" shall mean an election to purchase Stock in an
offering under the Plan, or that part of such an election, which has not been
canceled (including voluntary cancellation by the Employee and deemed
cancellations under Paragraphs 14 and 15) prior to the close of business on the
last business day of the Purchase Period.

     (n) "Subsidiary," "Affiliate" or "Affiliated Entity" shall mean any
corporation (other than the employer corporation) in an unbroken chain of
corporations beginning with the employer corporation if, at the time of the
granting of the Option, each of the corporations other than the last
corporation in the unbroken chain owns Stock possessing 50% or more of the
total combined voting power of all classes of Stock in one of the other
corporations in such chain.

     (o) "Active Service" shall mean and refer to the state of being paid for
services performed or paid while absent for sickness, vacation, holidays or
paid leave of absence, but shall not include termination or severance payments.

     (p) "Date of Grant" shall mean the date designated by the Board of
Directors as the date Options are granted to Eligible Employees pursuant to an
offering made under this Plan.

                           3. SHARES RESERVED FOR PLAN

     A total of 4,000,000 Shares of Stilwell's authorized and unissued $0.01
par value Common Stock are reserved for this Plan.  The Shares so reserved may
be issued and sold pursuant to one or more offerings under the Plan.  With
respect to any such offering, the Board of Directors or the Committee will
specify the number of Shares to be made available, the length of the
Subscription Period, the length of the Purchase Period, the Date of Grant and
such other terms and conditions not inconsistent with the Plan as may be
necessary or appropriate.

     In the event of a subdivision or combination of Stilwell's Shares, the
maximum number of Shares which may thereafter be issued and sold under the Plan
and the number of Shares under elections to purchase at the time of such
subdivision or combination will be proportionately increased or decreased, the
terms relating to the price at which Shares under elections to purchase will be
sold will be appropriately adjusted, and such other action will be taken as in
the opinion of the Committee is appropriate under the circumstances.  In the
case of reclassification or other changes in Stilwell's Shares, the Committee
will make appropriate adjustments.

                          4. ADMINISTRATION OF THE PLAN

     This Plan shall be administered by a Committee appointed by the Board of
Directors, consisting of not less than three members of the Board who are not
eligible to participate in this Plan and one of whom shall be designated as
Chairman of the Committee.  The Committee is vested with full authority to
make, administer and interpret such equitable rules and regulations regarding
this Plan or to make amendments to the Plan itself as it may deem advisable.
Its determinations as to the interpretation and operation of this Plan shall be
final and conclusive.

     The Committee may act by a majority vote at a regular or special meeting
of the Committee or by decision reduced to writing and signed by a majority of
the Committee without holding a formal meeting.  Whenever under this Plan an
action may be taken by the Board of Directors or the Committee, in the case of
inconsistent or contradictory actions, the action of the Board of Directors
shall prevail.

     Vacancies in the membership of the Committee arising from death,
resignation or other inability to serve shall be filled by appointment by the
Board of Directors.

                           5. PARTICIPATION IN THE PLAN

     Options to purchase Shares will be granted to Eligible Employees as
defined above; provided, however, the Board of Directors or the Committee may
determine, as to any offering of Common Stock made under this Plan, that the
offer will not be extended to highly compensated Employees within the meaning
of section 414(q) of the Internal Revenue Code of 1986, as amended.

                6. EMPLOYEE'S ELECTION TO PURCHASE - GRANT OF OPTIONS

     In order to participate in an offering under the Plan, an Eligible
Employee must elect to purchase Shares by signing a form provided by Stilwell
showing the number of Shares the Employee elects to purchase and delivering
it before the end of the Subscription Period for the offering to the chief
accounting officer of the Stilwell Group entity by whom he is employed or
other officer designated in the offer to receive and accept such elections.
Notice that an election to purchase Shares has become effective, that the
Employee has been granted an Option to purchase Shares and showing the number
of Shares which the Employee has elected to purchase under the Option
(subject to adjustment pursuant to Paragraph 7) shall be delivered to each
participating Employee.
                     7. NUMBER OF SHARES WHICH MAY BE PURCHASED

     In each offering under the Plan, each Eligible Employee may elect to
purchase and shall be granted an Option to purchase up to a maximum number of
Shares, the total Maximum Purchase Price of which does not exceed such
percentage of such Employee's Annual Pay as specified by the Committee for the
Stock offering; provided, however, that no such Employee shall be granted an
Option to purchase less than 10 Shares in any offering under this Plan;
provided, further, that no Employee shall be granted an Option to purchase
Shares under this Plan if such Employee, immediately after such Option is
granted, owns or holds Options to purchase Stock possessing 5% or more of the
total combined voting power or value of all classes of Stock of Stilwell or of
any of its Subsidiaries; provided, further, no Employee may be granted an
Option to purchase Stock which permits his rights to purchase Stock under all
such Plans of Stilwell and any of its Subsidiaries to accrue at a rate which
exceeds $25,000 of fair market value of such Stock (determined at the time such
Option is granted) for each calendar year in which such Option is outstanding
at any time.  Any Employee may elect to purchase less than the maximum number
of Shares which he is entitled to elect to purchase.

     The number of Shares which an Eligible Employee elects to purchase in an
offering under the Plan may be reduced in the event the offering is
over-subscribed.  No Option granted to an Eligible Employee in an offering
under the Plan shall permit such Employee to purchase Shares which, if added
together with the total number of Shares purchased by all other Employees in
such offering, would exceed the total number of Shares authorized for sale in
such offering.  As of the close of business on the last business day of the
Purchase Period in an offering, the number of Shares which all Eligible
Employees have elected to purchase under Outstanding Elections shall be
counted.  If the total number of Shares which all Eligible Employees have
elected to purchase under Outstanding Elections in the offering exceeds the
number of Shares authorized to be sold in the offering, the number of Shares
for which each such Outstanding Election is effective shall be reduced on a pro
rata basis, and the total number of Shares which may be purchased pursuant to
all such Outstanding Elections shall not exceed the total number of Shares
authorized for sale in such offering.

     All Shares authorized to be sold in any offering under this Plan in excess
of the total number of Shares purchased by Eligible Employees in any such
offering shall continue to be reserved for this Plan and shall be available for
inclusion in any subsequent offering under this Plan.

                             8. PURCHASE PRICE

     The purchase price per Share (except in case of a deemed cancellation of
election to purchase) will be 85% of the Average Market Price on the last
business day of the month in which the Purchase Period ends or, if no Shares
were traded on that day, on the last day prior thereto on which Shares were
traded; provided the purchase price per Share will not be more than the
Maximum Purchase Price; provided, further, the purchase price will in no
event be less than the par value of the Shares.
                            9. METHOD OF PAYMENT

     Payment for Shares purchased pursuant to the Plan shall be made in
installments, with no right of prepayment.  Each Employee electing to purchase
Shares shall authorize the withholding from his regular pay for each month
during the Purchase Period the sums which will produce at the end of the
Purchase Period an amount sufficient to accumulate the Maximum Purchase Price
per Share multiplied by the number of Shares the Employee elected to purchase
on the election form submitted by the Employee in accordance with Paragraph 6
of this Plan.  Such deductions shall be in uniform monthly amounts in
conformity with his employer's payroll deduction schedule.  In no event shall
an Employee be permitted to complete payment for or receive any Shares after 27
months from the Date of Grant of the Option to him pursuant to Paragraph 6.

                          10. INTEREST ON PAYMENTS

     No interest shall be paid on sums withheld from an Employee's pay for
purchase of Shares under this Plan.

                          11. RIGHTS AS STOCKHOLDER

     An Employee will become a stockholder with respect to Shares which are
purchased pursuant to Options granted under the Plan when such Shares are
transferred into the Employee's name on the books and records of the Company.
Ownership of Shares purchased under the Plan will be entered on the books and
records of the Company as soon as practicable after payment for the Shares has
been received in full by the Company.  A certificate for Shares purchased under
the Plan will be issued as soon as practicable after an Employee becomes a
stockholder.  An Employee will have no rights as a stockholder with respect to
Shares for which an election to purchase has been made under the Plan until
such Employee becomes a stockholder as provided above.

                  12. RIGHTS TO PURCHASE SHARES NOT TRANSFERABLE

     An Employee's rights under his election to purchase Shares under this
Plan may not be sold, pledged, assigned, or transferred in any manner,
provided, that if an Employee's election to purchase is deemed to be canceled
due to his death, the Employee's estate or the person acquiring the
Employee's rights under the Plan by bequest, inheritance, intestacy or by
written designation filed by the Employee with the Company before death may
exercise the deceased Employee's rights under the Plan for 12 months after
such Employee's death, provided, that in no event may the Employee's estate
or such person exercise an Option under the Plan more than 27 months after
the Date of Grant.  If an Employee's rights are sold, pledged, assigned, or
transferred in violation of this paragraph, the right to purchase Shares of
the Employee guilty of such violation shall terminate and the only right
remaining under such Employee's election to purchase will be to have paid
over to the person entitled thereto the amount then credited to the
Employee's account.
                    13. CANCELLATION OF ELECTION TO PURCHASE

     An Employee who has elected to purchase Shares may cancel his election as
to any or all of such Shares by written notice of cancellation delivered to the
chief accounting officer of the Stilwell Group entity by whom he is employed or
other officer designated to accept such notice of cancellation, but such notice
of cancellation must be so delivered before the close of business on the last
business day of the Purchase Period.  If an Employee cancels his election as to
only a part of the Shares, he shall continue to make the required installment
payment with respect to the number of Shares for which his election is not
canceled.  With respect to the Shares for which he cancels his election, the
Employee shall receive in cash, as soon as practicable after delivery of the
notice of cancellation, the amount credited to his account with respect to such
Shares.

                            14. DEEMED CANCELLATIONS

(a)  Events Constituting a Deemed Cancellation

     (i) Leave of Absence, Lay-Off or Temporarily Out of Active Service

           An Employee purchasing Stock under the Plan who is granted a leave
of absence, is laid off, or otherwise temporarily out of Active Service
      during the Purchase Period may elect during such absence, for a period of
      no longer than 90 days and not beyond the last day of the Purchase
      Period, to make his installment payments in cash if payroll deductions
      are not sufficient to cover the deduction.

           If an Employee does not return to Active Service upon the expiration
      of his leave of absence or lay-off or, in any event, within 90 days from
      the date of his leaving Active Service, (unless the right to reemployment
      with the corporation is guaranteed either by statute or contract) his
      election to purchase shall be deemed to have been canceled on the 91st
      day after such Employee's leaving Active Service.

      (ii) Effect of Failure to Make Payments When Due

           If in any payroll period, for any reason not set forth in Paragraph
      14(a)(i), an Employee has no pay or his pay is insufficient (after other
      authorized deductions) to permit deduction of his installment payment,
      such payment may be made in cash at the time.  In the event of
      insufficient pay, notification requesting payment will be sent to the
      participant at his last known address.

           Subject to the above and other provisions of this Plan permitting
      postponement, if an Employee fails to make any payment, his election to
      purchase shall be deemed to have been canceled at the time such payment
      was due.

      (iii) Termination of Employment

           If, before an Employee has completed payment for Shares under the
      Plan, he resigns, is dismissed or transferred to a company other than
      Stilwell or a Subsidiary of Stilwell, or if the entity by which he is
      employed should cease to be a Subsidiary of Stilwell, his election to
      purchase shall be deemed to have been canceled at that time; provided,
      however, that the Committee in its sole discretion may in lieu thereof
      specify that there shall be a "Substitution or Assumption" (and not a
      deemed cancellation) of an election to purchase if the Committee
      determines that a company or entity and Stilwell have made satisfactory
      arrangements for such company or entity to substitute a new option for
      the Option under such election to purchase, or to assume such Option
      under such election to purchase, by reason of a transaction (A) that is a
      corporate merger, consolidation, acquisition of property or stock,
      separation, reorganization, or liquidation, as defined in Section 424(a)
      of the United States Internal Revenue Code of 1986 and regulations
      thereunder (including a spin-off, split-up or similar transaction); (B)
      pursuant to which the excess of the aggregate fair market value of the
      shares subject to the new option immediately after the Substitution or
      Assumption over the aggregate option price of such shares is not more
      than the excess of the aggregate fair market value of all Shares subject
      to the Option immediately before the Substitution or Assumption over the
      aggregate option price of such Shares; and (C) pursuant to which the new
      option or the assumption of the Option does not give the Employee
      additional benefits which he did not have under the Option.

(b)  Terms and Conditions of a Deemed Cancellation

     In the event that an Employee's election to purchase Shares is deemed to
be canceled due to a leave of absence, failure to make a payment when due or
termination of employment, each as defined above, the Company will notify the
Employee of such deemed cancellation by mailing notice to him at his last known
address.  Once an Employee's election to purchase Shares is deemed to be
canceled the Employee may elect to (1) receive cash in the amount credited to
his account at the time the deemed cancellation becomes effective, or (2) apply
this amount to the purchase of as many Shares as the amount will purchase as of
the last day of the month in which the deemed cancellation is effective and
receive the balance of the account, if any, in cash.  Such an election to
purchase Shares must be made within three months after notification by the
Company of the deemed cancellation, but not later than the last business day of
the Purchase Period nor more than three months after the effective date of the
deemed cancellation.  Unless an election to obtain Shares is made within the
allowable time periods described above, such Employee's only right will be to
receive in cash the total amount credited to his account.

     A deemed cancellation of an election to purchase Stock will become
effective at the close of business on the day the event causing the deemed
cancellation occurs, but in no event later than the last business day of the
Purchase Period.  In the event an Employee elects to purchase Shares within the
allowable time periods described above, the purchase price per share shall be
the lesser of (1) 85% of the Average Market Price on the last business day of
the month in which the deemed cancellation is effective, or (2) the Maximum
Purchase Price, provided, that in no event will the purchase price be less than
the par value of the Shares.

(c)  Terms and Conditions of a Substitution or Assumption

     If the Committee determines under Section 14(a)(iii) of the Plan to
provide a Substitution or Assumption of Options granted hereunder, the Employee
shall have no further rights under this Plan and the Employee's rights, if any,
to his account or to purchase any property in lieu of Shares shall be governed
exclusively by the arrangements effecting such Substitution or Assumption
including any stock purchase plan of the company or entity substituting a new
option for an Option or assuming an existing Option.

                           15. DEATH OF A PARTICIPANT

     If an Employee dies before he has completed payment for Shares under the
Plan, his election to purchase Shares shall be deemed to have been canceled on
the date of death.  In this event the Company will notify the Employee's estate
or designated beneficiary(ies) of such deemed cancellation by mailing notice to
the last known address.  Once an Employee's election to purchase Shares is
deemed to be canceled, the estate or designated beneficiary(ies) may elect to
(1) receive cash in the amount credited to his account at the time the deemed
cancellation becomes effective, or (2) apply this amount to the purchase of as
many Shares as the amount will purchase as of the last day of the month in
which the deemed cancellation is effective and receive the balance of the
account, if any, in cash.  Such election must be made by the Employee's estate
or the designated beneficiary(ies) within 12 months after the Employee's death,
provided, that in no event may the Employee's estate or such person make the
election more than 27 months after the Date of Grant.  Unless an election to
obtain Shares is made within the allowable time periods described above, the
only right will be to receive in cash the total amount credited to the account.

     A deemed cancellation of an election to purchase Stock will become
effective at the close of business on the day the event causing the deemed
cancellation occurs, but in no event later than the last business day of the
Purchase Period.  In the event an Employee's estate, or the designated
beneficiary(ies), elects to purchase Shares within the allowable time periods
described above, the purchase price per share shall be the lesser of (1) 85% of
the Average Market Price on the last business day of the month in which the
deemed cancellation is effective or (2) the Maximum Purchase Price, provided,
that in no event will the purchase price be less than the par value of the
Shares.

                          16. APPLICATION OF FUNDS

     All funds received by Stilwell in payment for Shares purchased under this
Plan and held by Stilwell at any time may be used for any valid corporate
purpose.

                          17. COMMENCEMENT OF PLAN

     This Plan shall commence on ______________, 2000, subject to the
occurrence of the distribution of Stilwell stock as contemplated pursuant to
that certain Form 10 and Information Statement filed preliminarily by Stilwell
with the Securities and Exchange Commission August 18, 1999, File No. 1-15253

                 18. GOVERNMENT APPROVALS OR CONSENTS; AMENDMENT

     This Plan and any offering and sales to Employees under it are subject
to any governmental approvals or consents that may be or become applicable in
connection therewith.  The Board of Directors or the Committee may terminate
the Plan at any time and may make such changes in the Plan and include such
terms in any offering under this Plan as may be necessary or desirable,
including, but not limited to, such changes as may be necessary or desirable,
in the opinion of counsel for Stilwell to comply with the rules or
regulations of any governmental authority, or to be eligible for tax benefits
under the United States Internal Revenue Code of 1986, as amended, or the
laws of any state.

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