Document:

exv10w31

 

Exhibit 10.31

FIRST AMENDMENT

     THIS FIRST AMENDMENT dated as of November 28, 2006 (this “Amendment”) amends the
Amended and Restated Five-Year Credit and Guarantee Agreement dated as of August 10, 2005 (the
“Credit Agreement”) among Block Financial Corporation (the “Borrower”), H&R Block, Inc. (the
“Guarantor”), various financial institutions (the “Lenders”) and JPMorgan Chase Bank, N.A., as
administrative agent for the Lenders (in such capacity, the “Administrative Agent”).
Capitalized terms used but not defined herein have the respective meanings set forth in the
Credit Agreement.

     WHEREAS, the Borrower, the Guarantor, the Lenders and the Administrative Agent have
entered into the Credit Agreement; and

     WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth herein;

     NOW, THEREFORE, the parties hereto agree as follows:

     SECTION 1 Amendments. Subject to the satisfaction of the condition precedent set
forth in Section 3, the Credit Agreement is amended as follows:

     1.1 Amendment to Section 3.8. Section 3.8 is amended in its entirety to
read as follows:

     SECTION 3.8. Investment Company Status. Neither of the Credit
Parties nor any of the Subsidiaries is an “investment company” as defined in,
or subject to regulation under, the Investment Company Act of 1940, as
amended.

     1.2 Amendments to Section 6.2. Section 6.2 is amended as follows:

     (a) Clause (m) is amended in its entirety to read as follows:

     (m) subject to the proviso at the end of this Section 6.2,
Indebtedness incurred in connection with the Borrower’s Refund Anticipation
Loan Program, including any Indirect RAL Participation Transaction;
provided that (i) such Indebtedness is incurred during the period
beginning on January 2 of any year and ending on June 29 of such year, (ii)
such Indebtedness is repaid in full by June 30 of the year in which such
Indebtedness is incurred and (iii) the covenants contained in any agreement
relating to such Indebtedness, or guarantee thereof (other than covenants
specific to the Borrower’s Refund Anticipation Loan Program and the operation
thereof), are no more restrictive than the covenants contained in this
Agreement;

     (b) The last paragraph is amended by deleting the clause beginning “except” at the
end thereof and substituting the following therefor:

except that, during the period from January 2 of any year through June 30 of
such year, such sum may exceed the greater of the Total Facility Commitments then in
effect or the then Total Facility Loan Outstandings by an amount up to the total of (A)
the aggregate

 

 

outstanding principal amount of Indebtedness described in subsection 6.2(m) and (B)
$500,000,000.

     1.3 Amendment to Section 10.1. Section 10.1 (a) is amended in its entirety to
read as follows:

     (a) if to the Borrower or the Guarantor, to it at One H&R Block Way, Kansas City,
Missouri 64105, Attention of Becky Shulman (Telecopy No. (816) 854-4242), David Staley
(Telecopy No. (816) 854-4239) and Andrew Somora (Telecopy No. (816) 753-0037);

     SECTION 2 Representations and Warranties. Each of the Borrower and the Guarantor
represents and warrants to the Administrative Agent and the Lenders that, after giving effect to
the effectiveness hereof, (a) each representation and warranty set forth in Article III of the
Credit Agreement (other than the representations and warranties set forth in subsections 3.4(b),
3.6(a)(i) and 3.6(b)) is true and correct in all material respects as of the date hereof with the
same effect as if made on the date hereof (except to the extent related to a specific earlier date)
and (b) no Default or Event of Default shall have occurred and be continuing.

     SECTION 3 Effectiveness. The amendments set forth herein shall become effective upon
receipt by the Administrative Agent of counterparts of this Amendment executed by the Borrower, the
Guarantor and the Required Lenders.

     SECTION 4 Miscellaneous.

     4.1 Continuing Effectiveness, etc. Except as expressly amended hereby, the
provisions of the Credit Agreement are and shall remain in full force and effect. After
the effectiveness of this Amendment, all references in the Credit Agreement and the other
Loan Documents to “Credit Agreement” or similar terms shall refer to the Credit Agreement as
amended hereby.

     4.2 Counterparts. This Amendment may be executed in any number of counterparts
and by the different parties on separate counterparts, and each such counterpart shall be
deemed to be an original but all such counterparts shall together constitute one and the same
Amendment. Delivery of a counterpart hereof, or an executed signature hereto, by facsimile or by e-mail
(in pdf or similar format) shall be effective as delivery of a manually-executed counterpart
hereof.

     4.3 Governing Law. This Amendment shall be construed in accordance with and
governed by the law of the State of New York.

-2-

 

     Delivered as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	BLOCK FINANCIAL CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Becky S. Shulman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Becky S. Shulman	 	 
	 

	 	Title:
	 	Senior Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	H&R BLOCK, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Becky S. Shulman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Becky S. Shulman	 	 
	 

	 	Title:
	 	Senior Vice President and Treasurer	 	 

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as 
Administrative
Agent, as a Lender and as Swingline 
Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Elisabeth H. Schwabe	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Elisabeth H. Schwabe	 	 
	 

	 	Title:
	 	Managing Director
JPMorgan Chase Bank	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alexa B. Bradford	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Alexa B. Bradford	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	GREENWICH CAPITAL MARKETS, INC., 
AS AGENT
FOR THE ROYAL BANK OF 
SCOTLAND PLC
	 
	 	 	 	 	 	 
	 	 	/s/ Fergus Smail	 	 
	 	 	 	 	 
	 	 	Fergus Smail	 	 
	 	 	Vice President

-4-

 

	 	 	 	 	 	 	 
	 	 	BARCLAYS CAPITAL PLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-5-

 

	 	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Nealon	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Peter Nealon	 	 
	 

	 	Title:
	 	Managing Director	 	 

-6-

 

	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew Kreeger	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Andrew Kreeger	 	 
	 

	 	Title:
	 	Vice President	 	 

-7-

 

	 	 	 	 	 	 	 
	 	 	KEY BANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donald F. Carmichael, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Donald F. Carmichael, Jr.	 	 
	 

	 	Title:
	 	Vice President	 	 

-8-

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thiplada Siddiqui	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thiplada Siddiqui	 	 
	 

	 	Title:
	 	Vice President	 	 

-9-

 

	 	 	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sebastian Rocco	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Sebastian Rocco	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	[ILLEGIBLE]	 	 
	 

	 	Title:
	 	Director	 	 

-10-

 

	 	 	 	 	 	 	 
	 	 	MELLON BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Beagle	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel Beagle	 	 
	 

	 	Title:
	 	First Vice President	 	 

-11-

 

	 	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dustin Craven	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dustin Craven	 	 
	 

	 	Title:
	 	Attorney-in-Fact	 	 

-12-

 

	 	 	 	 	 	 	 
	 	 	SUNTRUST BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven A. Deily	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steven A. Deily	 	 
	 

	 	Title:
	 	Managing Director	 	 

-13-

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Reymann	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael J. Reymann	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

-14-

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL 
ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joan Anderson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joan Anderson	 	 
	 

	 	Title:
	 	Director	 	 

-15-

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tomasz Rydel	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Tomasz Rydel	 	 
	 

	 	Title
	 	Vice-President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Chris Grumboski	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Chris Grumboski	 	 
	 

	 	Title:
	 	Director	 	 

-16-

 

	 	 	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark J. Leveille	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Mark J. Leveille	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 

-17-

 

	 	 	 	 	 	 	 
	 	 	E.SUN COMMERCIAL BANK, LTD. (LOS 
ANGELES)
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-18-

 

	 	 	 	 	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK BRANCH
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-19-

 

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Christopher D. Jones	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Christopher D. Jones	 	 
	 

	 	Title:
	 	Vice President	 	 

-20-

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS BANK, FSB
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Janine M. Shugan	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Janine M. Shugan	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

-21-

 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Louis Alder	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Louis Alder	 	 
	 

	 	Title:
	 	Director	 	 

-22-

 

	 	 	 	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Shigeru Tsuru	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:

Title:
	 	Shigeru Tsuru

Joint General Manager	 	 

-23-

 

	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard L. Tavrow	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Richard L. Tavrow	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Irja R. Otsa	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Irja R. Otsa	 	 
	 

	 	Title:
	 	Associate Director	 	 

-24-

 

	 	 	 	 	 	 	 
	 	 	BANK MIDWEST, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Bower	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Brian Bower	 	 
	 

	 	Title:
	 	Vice President	 	 

-25-

 

	 	 	 	 	 	 	 
	 	 	CHANG HWA COMMERCIAL BANK, LTD.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-26-

 

	 	 	 	 	 	 	 
	 	 	COMMERCE BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-27-

 

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Durbin	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael J. Durbin	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

-28-

 

	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Louis K. McLinden	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Louis K. McLinden	 	 
	 

	 	Title:
	 	Vice President	 	 

-29-

 

	 	 	 	 	 	 	 
	 	 	UMB BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas S. Terry	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas S. Terry	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

-30-exv10w32

 

Exhibit 10.32

SEPARATION AND RELEASE AGREEMENT

     This SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is entered into as of the ___day of
November, 2006, by and between HRB Management, Inc., a Missouri corporation (“HRB”) and Nicholas J.
Spaeth (“Mr. Spaeth”).

     WHEREAS Mr. Spaeth and HRB agree to terminate his employment with HRB,

     WHEREAS Mr. Spaeth and HRB intend the terms and conditions of this Agreement to govern all
issues related to Mr. Spaeth’s employment and separation from HRB,

     NOW, THEREFORE, in consideration of the covenants and mutual promises contained in this
Agreement, Mr. Spaeth and HRB agree as follows:

     1. Termination Date. HRB and Mr. Spaeth are parties to an Employment Agreement dated
February 2, 2004 (the “Employment Agreement”). The parties agree to terminate Mr. Spaeth’s
employment pursuant to Section 1.07(b) of the Employment Agreement. The parties further agree to
treat Mr. Spaeth’s termination of employment as a “Qualifying Termination,” as defined in the
Employment Agreement, for purposes of determining Mr. Spaeth’s severance compensation and benefits
as set forth in Section 2 of this Agreement. The parties also agree that the termination is not
the result of the elimination of the position of Senior Vice President, Chief Legal Officer of HRB.
Block shall continue to employ Mr. Spaeth on active payroll and be paid his current salary at
HRB’s regular pay intervals until January 2, 2007, upon which date Mr. Spaeth’s employment under
the Employment Agreement will terminate (the “Termination Date”). Mr. Spaeth will continue to work
full-time until November 10, 2006. After that date and until the Termination Date, Mr. Spaeth is
expected to be available for consultation with respect to matters within the scope of his
employment. From the date of this Agreement through the Termination Date, Mr. Spaeth will
appropriately respond to and cooperate with HRB management. The parties agree to waive
any notice of termination required by the Employment Agreement.

     2. Severance Benefits. HRB agrees to provide Mr. Spaeth with compensation and
benefits under the H&R Block Severance Plan (“Severance Plan”) as follows:

     a. Release Agreement. Mr. Spaeth and HRB agree that this Agreement
constitutes the release agreement required under the Severance Plan.

     b. Severance Pay. Subject to the terms of the Severance Plan, HRB will pay to
Mr. Spaeth $659,200.00 (which amount represents an aggregate of Mr. Spaeth’s (A) annual base
salary of $412,000.00 and (B) target short-term incentive compensation for HRB’s fiscal year
2007 of $247,200.00, each determined as of the date of this Agreement) over the 12-month
period beginning on the Termination Date in semi-monthly equal installments of $27,466.66
(less required tax withholdings and elected benefit withholdings).

     c. Employee Benefits. Mr. Spaeth will remain eligible to participate in the
various health and welfare benefit plans maintained by HRB in accordance with the terms

 

 

of the Severance Plan. After his severance benefits cease, Mr. Spaeth may be eligible
to continue coverage of group health plan benefits under COBRA. Conversion privileges may
also be available for other benefit plans.

     d. Stock Options. Those portions of any outstanding incentive stock options
(“ISO Stock Options”) and nonqualified stock options (“NQ Stock Options”) to purchase shares
of HRB’s common stock granted to Mr. Spaeth by HRB that are scheduled to vest between the
Termination Date and July 2, 2008 (based solely on the time-specific vesting schedule
included in the applicable stock option agreement) shall vest and become exercisable as of
the Termination Date. A list of the ISO Stock Options and NQ Stock Options vested as of the
date of this Agreement and to become vested pursuant to this Section is attached as Exhibit
A. No later than the Termination Date, Mr. Spaeth will complete an election form on which
he will elect the time period during which he may exercise his ISO and NQ Stock Options.
Mr. Spaeth acknowledges and agrees that he is solely responsible for the income tax
treatment of his ISO and NQ Stock Options election, and that HRB has not provided him any
personal tax advice about this election. HRB encourages Mr. Spaeth to seek independent tax
advice regarding this election.

     e. Restricted Shares. All restrictions on any shares of HRB’s common stock
awarded to Mr. Spaeth by HRB (“Restricted Shares”) that would have lapsed absent a
termination of employment in accordance with their terms by reason of time between the
Termination Date and July 2, 2008 shall terminate (and shall be fully vested) as of the
Termination Date. Any shares unaffected by the operation of this Section shall be forfeited
to HRB on the Termination Date. A list of the Restricted Shares vested as of the date of
this Agreement and to become vested pursuant to this Section is attached as Exhibit B.

     f. Performance Shares. On the Termination Date, Mr. Spaeth shall forfeit to
HRB all Performance Shares because HRB awarded him those Performance Shares pursuant to a
cycle which is less than one year old.

     g. Outplacement Services. HRB will pay directly to Right Management Services
for twelve (12) months of outplacement services to be provided to Mr. Spaeth.

     h. Forfeiture. Mr. Spaeth agrees that the compensation and benefits described
in this Section will cease and no further compensation and benefits will be provided to him
if he violates any of the post-employment obligations under Section 7 of this Agreement, or
Articles Two and Three of the Employment Agreement.

     3. Vacation. HRB will pay Mr. Spaeth for his accrued, unused 2007 vacation within 21
days of the Termination Date. Mr. Spaeth will not receive any other payment for vacation or
holidays.

     4. Mr. Spaeth Representations. Mr. Spaeth represents and acknowledges to HRB that (a)
HRB has advised him to consult with an attorney of his choosing; (b) he has had twenty-one (21)
days to consider the waiver of his rights under the Age Discrimination in Employment Act of 1967,
as amended (“ADEA”) prior to signing this Agreement; (c) he has disclosed to HRB any information in
his possession concerning any conduct involving HRB or its subsidiaries or affiliates

2

 

(“Affiliates”) that he has any reason to believe involves any false claims to any governmental
agency, or is or may be unlawful, or violates HRB policy in any respect; (d) the consideration
provided him under this Agreement is sufficient to support the releases provided by him under this
Agreement; and (e) he has not filed any charges, claims or lawsuits against HRB involving any
aspect of his employment which have not been terminated as of the date of this Agreement. Mr.
Spaeth understands that HRB regards the representations made by him as material and that HRB is
relying on these representations in entering into this Agreement.

     5. Effective Date of this Agreement. Mr. Spaeth shall have seven (7) days from the
date he signs this Agreement to revoke his consent to the waiver of his rights under the ADEA in
writing addressed and delivered to the HRB official executing this Agreement on behalf of HRB which
action shall revoke this Agreement. If Mr. Spaeth revokes this Agreement, all of its provisions
shall be void and unenforceable. If Mr. Spaeth does not revoke his consent, this Agreement will
take effect on the day after the end of this revocation period (the “Effective Date”).

     6. Resignation as an Officer. As of November 10, 2006, Mr. Spaeth will resign (a) as
Senior Vice President, Chief Legal Officer of HRB and (b) from any other officer and director
positions held with HRB and any Affiliates. Mr. Spaeth will execute the resignations attached as
Exhibit C on minute book paper contemporaneously with his execution of this Agreement.

     7. Surviving Employment Agreement Obligations. Mr. Spaeth and HRB agree that the
termination of Mr. Spaeth’s employment will not affect the following provisions of the Employment
Agreement which impose continuing obligations on him following termination of the Employment
Agreement: (a) Article Two, “Confidentiality” — Sections 2.01, 2.02; (b) Article Three,
“Non-Hiring; Non-Solicitation; No Conflicts; Non-Competition” — Sections 3.01, 3.02, 3.03, 3.05,
3.06; and (c) Article Four, “Miscellaneous” — Section 4.03. Mr. Spaeth acknowledges and agrees
that he will fully comply with these obligations. HRB may agree to waive any of Mr. Spaeth’s
surviving post-employment obligations under the Employment Agreement. Any such waiver must be in
writing and signed by Mr. Spaeth and the Chief Executive Officer of HRB. Any payments made to Mr.
Spaeth under this Agreement will immediately cease upon any such waiver.

     8. Business Expenses and Commitments. Until the Termination Date, HRB will promptly
pay directly, or reimburse Mr. Spaeth for, all business expenses to the extent such expenses are
paid or incurred by Mr. Spaeth in accordance with HRB’s travel policy. As of the Termination Date,
Mr. Spaeth agrees that he will have submitted required documentation for all outstanding expenses
on his HRB corporate credit card. Mr. Spaeth agrees that he will not initiate, make, renew,
confirm or ratify any contracts or commitments for or on behalf of HRB or any Affiliate, nor will
he incur any expenses on behalf of HRB or any Affiliate without HRB’s prior written consent.

     9. Mr. Spaeth Release. Mr. Spaeth and his heirs, assigns, and agents release, waive,
and discharge HRB and Released Parties as defined below from each and every claim, action, or right
of any sort, known or unknown, arising on or before the Effective Date.

     a. The foregoing release includes, but is not limited to, any claim of discrimination
on the basis of race, sex, pregnancy, religion, marital status, sexual orientation, national
origin, handicap or disability, age, veteran status, special disabled veteran status, or

3

 

citizenship status or any other category protected by law; any other claim based on a
statutory prohibition or requirement; any claim arising out of or related to an express or
implied employment contract, any other contract affecting terms and conditions of
employment, or a covenant of good faith and fair dealing; any tort claims, any personal gain
with respect to any claim arising under the qui tam provisions of the False Claims Act, 31
U.S.C. 3730, and any claims to attorney fees or expenses. Mr. Spaeth acknowledges and
agrees that this release does not prohibit him from filing a charge of discrimination with
the Equal Employment Opportunity Commission. HRB and Mr. Spaeth agree that the foregoing
release does not include and Mr. Spaeth is not releasing any indemnification rights that he
may be entitled to as an officer and/or director of HRB and its Affiliates as applicable.

     b. Mr. Spaeth represents that he understands the foregoing release, that rights and
claims under the Age Discrimination in Employment Act of 1967, as amended, are among the
rights and claims against HRB he is releasing, and that he understands that he is not
releasing any rights or claims arising after the Effective Date.

     c. Mr. Spaeth further agrees never to sue HRB or cause HRB to be sued regarding any
matter within the scope of the above release. If Mr. Spaeth violates this release by suing
HRB or causing HRB to be sued, Mr. Spaeth agrees to pay all costs and expenses of defending
against the suit incurred by HRB, including reasonable attorney fees except to the extent
that paying such costs and expenses is prohibited by law or would result in the invalidation
of the foregoing release.

     d. Released Parties are HRB, all current and former parents, subsidiaries, related
companies, partnerships or joint ventures, and, with respect to each of them, their
predecessors and successors; and, with respect to each such entity, all of its past,
present, and future employees, officers, directors, stockholders, owners, representatives,
assigns, attorneys, agents, insurers, employee benefit programs (and the trustees,
administrators, fiduciaries and insurers of such programs), and any other person acting by,
through, under or in concert with any of the persons or entities listed in this paragraph,
and their successors.

     10. HRB Release. HRB and the Released Parties release, waive, and discharge
Mr. Spaeth and his heirs, assigns, and agents from each and every known claim, action, or right of
any sort arising on or before the Effective Date. This release includes any and all known claims
which arise as a result of Mr. Spaeth’s employment relationship with HRB.

     11. Breach by Mr. Spaeth. HRB’s obligations to Mr. Spaeth after the
Effective Date are contingent on his obligations under this Agreement. Any material breach of this
Agreement by Mr. Spaeth will result in the immediate cancellation of HRB’s obligations under this
Agreement and of any benefits that have been granted to Mr. Spaeth by the terms of this Agreement
except to the extent that such cancellation is prohibited by law or would result in the
invalidation of the foregoing release.

     12. Mr. Spaeth Availability. Mr. Spaeth agrees to make himself reasonably available to
HRB to respond to requests by HRB for information pertaining to or relating to the Company and/or
its Affiliates, agents, officers, directors or employees that may be within the knowledge of Mr.

4

 

Spaeth. Mr. Spaeth will cooperate fully with HRB in connection with any and all existing or
future litigation or investigations brought by or against HRB or any of its Affiliates, agents,
officers, directors or employees, whether administrative, civil or criminal in nature, in which and
to the extent HRB deems Mr. Spaeth’s cooperation necessary. HRB will reimburse Mr. Spaeth for
reasonable out-of pocket expenses incurred as a result of such cooperation. Nothing herein shall
prevent Mr. Spaeth from communicating with or participating in any government investigation.

     13. Non-Disparagement. Mr. Spaeth agrees, subject to any obligations he may have
under applicable law, that he will not make or cause to be made any statements that disparage, are
inimical to, or damage the reputation of HRB or any of its Affiliates, agents, officers, directors,
or employees. In the event such a communication is made to anyone, including but not limited to
the media, public interest groups and publishing companies, it will be considered a material breach
of the terms of this Agreement and Mr. Spaeth will be required to reimburse HRB for any and all
compensation and benefits (other than those already vested) paid under the terms of this Agreement
and all commitments to make additional payments to Mr. Spaeth will be null and void. HRB President
and Chief Executive Officer Mark A. Ernst agrees, during the time he is employed by HRB and subject
to any obligations he may have under applicable law, that he will not make or cause to be made any
statements that disparage, are inimical to, or damage the reputation of Mr. Spaeth.

     14. Return of Company Property. Mr. Spaeth agrees that as of the Termination Date he
will have returned to HRB any and all HRB property or equipment in his possession, including but
not limited to, any computer, printer, fax, phone, credit card, badge, Blackberry, and telephone
card assigned to him.

     15. Severability of Provisions. In the event that any provision in this Agreement is
determined to be legally invalid or unenforceable by any court of competent jurisdiction, and
cannot be modified to be enforceable, the affected provision shall be stricken from the Agreement,
and the remaining terms of the Agreement and its enforceability shall remain unaffected.

     16. Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties and may be changed only with the written consent of both parties
and only if both parties make express reference to this Agreement. The parties have not relied on
any oral statements that are not included in this Agreement. This Agreement supersedes all prior
agreements and understandings concerning the subject matter of this Agreement. Any modifications
to this Agreement must be in writing and signed by Mr. Spaeth and the Chief Executive Officer of
HRB. Failure of HRB to insist upon strict compliance with any of the terms, covenants, or
conditions of this Agreement will not be deemed a waiver of such terms, covenants, or conditions.

     17. Applicable Law. This Agreement shall be construed, interpreted, and applied in
accordance with the law of the State of Missouri.

     18. Successors and Assigns. This Agreement and each of its provisions will be binding
upon Mr. Spaeth and his executors, successors, and administrators, and will inure to the benefit of
HRB and its successors and assigns. Mr. Spaeth may not assign or transfer to others the obligation
to perform his duties hereunder.

5

 

     19. Specific Performance by Mr. Spaeth. The parties acknowledge that money damages
alone will not adequately compensate HRB for Mr. Spaeth’s breach of any of the covenants and
agreements herein and, therefore, in the event of the breach or threatened breach of any such
covenant or agreement by Mr. Spaeth, in addition to all other remedies available at law, in equity
or otherwise, HRB will be entitled to injunctive relief compelling Mr. Spaeth’s specific
performance of (or other compliance with) the terms hereof.

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

     21. Additional Release. Mr. Spaeth agrees that on or within ten (10) days after the
Termination Date, he will execute an additional release covering the period from the Effective Date
to the last day of employment. Mr. Spaeth agrees that all HRB covenants that relate to its
obligations beyond the last day of employment will be contingent on Mr. Spaeth’s execution of the
additional release. The additional release is attached as Exhibit D to this Agreement.

	 	 	 	 	 	 	 
	 	 	NICHOLAS J. SPAETH:	 	 
	 
	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	
 

	 	 	 	 

	 	 
	 	 	Nicholas J. Spaeth	 	 

Accepted and Agreed:

HRB Management, Inc.

a Missouri corporation

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

Mark A. Ernst
	 	 	 	 
	 	 	President and Chief Executive Officer of HRB Management, Inc.	 	 

Dated:
             
             
             
             

6

 

EXHIBIT A

STOCK OPTION SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date of	 	 	 	 	 	 	 	 	 	Strike	 	Vested	 	Unvested	 	Options vesting under
	Grant	 	Option Type	 	Options Granted	 	Price	 	Options	 	Options	 	Separation Agreement
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	02/02/2004
	 	ISO	 	 	10,380	 	 	$	28.89	 	 	 	6,920	 	 	 	3,460	 	 	 	3,460	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	02/02/2004
	 	NQ	 	 	389,620	 	 	$	28.89	 	 	 	259,746	 	 	 	129,874	 	 	 	129,874	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2004
	 	NQ	 	 	70,000	 	 	$	23.84	 	 	 	46,667	 	 	 	23,333	 	 	 	23,333	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2005
	 	ISO	 	 	3,410	 	 	$	29.175	 	 	 	0	 	 	 	3,410	 	 	 	3,410	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2005
	 	NQ	 	 	46,590	 	 	$	29.175	 	 	 	16,666	 	 	 	29,924	 	 	 	29,924	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2006
	 	ISO	 	 	4,179	 	 	$	23.86	 	 	 	0	 	 	 	4,179	 	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2006
	 	NQ	 	 	50,821	 	 	$	23.86	 	 	 	0	 	 	 	50,821	 	 	 	33,880	 

 

 

EXHIBIT B

RESTRICTED SHARES SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date of	 	 	 	 	 	Vested	 	Unvested	 	Shares Vesting Under
	Grant	 	Shares Granted	 	Shares	 	Shares	 	Separation Agreement
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	02/02/2004
	 	 	40,000	 	 	 	13,333	 	 	 	26,667	 	 	 	26,667	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2004
	 	 	10,000	 	 	 	6,667	 	 	 	3,333	 	 	 	3,333	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	06/30/2005
	 	 	10,000	 	 	 	3,333	 	 	 	6,667	 	 	 	6,667	 

 

 

EXHIBIT C

OFFICER RESIGNATION

     Effective November 10, 2006, I hereby resign from my officer position as Senior Vice
President, Chief Legal Officer, of the following companies:

	 	•	 	H&R Block, Inc., a Missouri Corporation
	 
	 	•	 	HRB Management, Inc., a Missouri Corporation

Dated: November ___, 2006

	 	 	 	 	 
	 

	 	 

Nicholas J. Spaeth
	 	 

 

 

EXHIBIT C

DIRECTOR RESIGNATION

     Effective November 10, 2006, I hereby resign as a Director of H&R Block (India) Private
Limited, an Indian corporation.

Dated: November ___, 2006

	 	 	 	 	 
	 

	 	 

Nicholas J. Spaeth
	 	 

 

 

EXHIBIT D

SUPPLEMENTAL RELEASE

This supplemental release given to the HRB Management, Inc. (“HRB”) by Nicholas J. Spaeth
 (“Mr. Spaeth”) is executed in consideration for the covenants made by
the Company in a Separation Agreement and Release signed by Mr. Spaeth.

Mr. Spaeth and his heirs, assigns, and agents release, waive, and discharge HRB, its directors,
officers, employees, subsidiaries, affiliates, and agents from each and every claim, action or
right of any sort, known or unknown, arising on or before the date of this Supplemental Release.

     1. The foregoing release includes, but is not limited to, any claim of discrimination on the
basis of race, sex, religion, marital status, sexual orientation, national origin, handicap or
disability, age, veteran status, special disabled veteran status, citizenship status; any other
claim based on a statutory prohibition; any claim arising out of or related to an express or
implied employment contract, any other contract affecting terms and conditions of employment, or a
covenant of good faith and fair dealing; any tort claims and any personal gain with respect to any
claim arising under the qui tam provisions of the False Claims Act, 31 U.S.C. 3730, and any claim
to attorney’s fees. This release does not prohibit Mr. Spaeth from filing a charge of
discrimination with the Equal Employment Opportunity Commission. This release also does not
include and Mr. Spaeth is not releasing any indemnification rights that he may be entitled to as
an officer and/or director of HRB and its Affiliates as applicable.

     2. Mr. Spaeth represents that he understands the foregoing release, that rights and claims
under the Age Discrimination in Employment Act of 1967, as amended, are among the rights and
claims against HRB that he is releasing, and that he understands that he is not releasing any
rights or claims arising after the date of this Supplemental Release.

	 	 	 	 	 
	 

	 	NICHOLAS J. SPAETH	 	 
	 
	 	 	 	 
	 

	 	 

Nicholas J. Spaeth
	 	 
	 
	 	 	 	 
	 

	 	DATE:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]