Document:

SUBORDINATION AGREEMENT

     This Subordination Agreement (as amended or supplemented
from time to time, this "Agreement") is made and entered into as
of the 12th day of April 2000 by and among C.W. GILLULY (the
"Junior Creditor"), UNITED BANK, a Virginia banking corporation
(the "Bank"), and HADRON, INC., a New York corporation (the
"Debtor").

     1.   To induce the Bank to extend or continue credit and
other financial accommodations to the Debtor and for other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Junior Creditor hereby subordinates
the payment of all loans, advances, liabilities and indebtedness
owed by the Debtor to the Junior Creditor under that certain
$430,000.00 Note dated February 15, 2000, from the Debtor in
favor of the Junior Creditor, whether now owed or hereafter
arising, whether direct or indirect, absolute or contingent,
joint or several, secured or unsecured, liquidated or
unliquidated, and however owned, held or acquired by the Junior
Creditor, whether by assignment, discount, direct loan, purchase,
as a matter of law, or otherwise, and however evidenced, whether
by note, book entry or otherwise, whether for principal, interest
(except as provided in paragraph 4 below), fees, expenses or
otherwise, and all renewals, extensions, and modifications
thereof and substitutions therefor (the "Subordinated Debt") to
the payment in full of all loans, advances, liabilities and
indebtedness owed by the Debtor to the Bank, whether now owed or
hereafter arising, whether direct or indirect, absolute or
contingent, joint or several, secured or unsecured, liquidated or
unliquidated, and however owned, held or acquired by the Bank,
whether by assignment, discount, direct loan, overdraft,
purchase, as a matter of law, or otherwise, and however
evidenced, whether by note, check, book entry or otherwise,
whether for principal, interest, fees, expenses or otherwise, and
all renewals, extensions, and modifications thereof and
substitutions therefor (the "Senior Debt").  The Junior Creditor
further agrees that any lien, encumbrance or other security for
the payment of the Subordinated Debt, whether now existing or
hereafter arising, is and shall be expressly subordinated to any
lien, encumbrance or other security for the payment of the Senior
Debt.

     Nothing herein shall be construed as preventing the payment
of $200,000 to the Junior Creditor by the Debtor as contemplated
by that certain Securities Purchase Agreement dated March 30,
2000, and the Bank hereby consents to such payment.

     Notwithstanding the provisions of this paragraph 1, if (i)
no Default (as defined in the Loan and Security Agreement) has
occurred under any instrument or agreement evidencing or securing
the Senior Debt and is then continuing, (ii) the "Working
Capital" covenant set forth in Section VI(A)(4) of the Loan and
Security Agreement (defined below) (as modified pursuant to a
certain letter dated April 12, 2000, from the Bank to the Debtor)
would not be violated as a result thereof, (iii) the Debtor is
then in compliance with the covenant described in Section
VI(A)(2) of the Loan and Security Agreement (defined below)
(notwithstanding the waiver of the requirements of said sections
pursuant to a certain letter dated April 12, 2000, from the Bank
to the Debtor), and (iv) the "Adjusted Net Worth" covenant set
forth in Section VI(A)(5) of the Loan and Security Agreement
(defined below) (as modified pursuant to a certain letter dated
April 12, 2000, from the Bank to the Debtor) would not be
violated as a result thereof, then payments on the Subordinated
Debt may be received, accepted and retained by the Junior
Creditor.  As used herein, the "Loan and Security Agreement"
means that certain Loan and Security Agreement dated June 29,
1999 between the Debtor (and related entities) and the Bank, all
instruments and agreements executed and delivered to the Bank in
connection therewith, and all extensions, modifications,
supplements to, and replacements of, any of the foregoing.

     2.   The Junior Creditor agrees that until the Senior Debt
is paid in full it will not (i) except as expressly permitted by
this Agreement, ask, demand, sue for take or receive from the
Debtor directly or indirectly, in cash, securities or other
property or by set-off or in any other manner (including, without
limitation, from or by way of collateral), payment of all or any
part of the Subordinated Debt, or (ii) commence or join with
other creditors in commencing any bankruptcy, reorganization,
receivership or insolvency proceeding against the Debtor.

     3.   In the event of (i) any insolvency or bankruptcy case
or proceeding or any receivership, liquidation, reorganization or
similar case or proceeding in connection therewith relative to
the Debtor or its creditors as such or to its assets, (ii) any
liquidation, dissolution or other winding up of the Debtor
whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (iii) any assignment for the benefit
of creditors or other marshalling of assets and liabilities of
the Debtor then and in any such event the Bank shall be entitled
to receive payment in full in cash or cash equivalents of all
amounts due or to become due on or in respect of all Senior Debt
before the Junior Creditor shall be entitled to receive and
retain any payment on account of the principal, interest or other
amounts due or to become due on the Subordinated Debt, and to
that end the Bank shall be entitled to receive, for application
to the payment of the Senior Debt, any payment or distribution of
any kind or character whether in cash, securities, or other
property, which may be payable or deliverable in respect of the
Subordinated Debt in any such case, proceeding, dissolution,
liquidation or other winding up or event.  Accordingly, any
payment or distribution of assets of the Debtor of any kind or
character whether in cash, securities, or other property, which
would otherwise have been made to the Junior Creditor but for the
provisions of this paragraph shall instead be made by the Debtor
or by the trustee in bankruptcy, receiver liquidating trustee,
custodian, assignee, agent or other person making payment or
distribution of assets of the Debtor directly to the Bank for
application to the payment of all Senior Debt remaining unpaid to
the extent necessary to pay all Senior Debt in full in cash or
cash equivalents after giving effect to any concurrent payment or
distribution to or for the benefit of the Bank.  The Junior
Creditor irrevocably authorizes and empowers the Bank to (i)
demand, sue for collect and receive every such payment or
distribution and give acquittance therefor (ii) file claims and
take such other actions, in the Bank's own name or in the name of
the Junior Creditor or otherwise, as the Bank may deem necessary
or advisable for the enforcement of this Agreement, and (iii)
vote the full amount of the Junior Creditor's claims in any
receivership, insolvency or bankruptcy proceeding in the Junior
Creditor's place and stead.  The Junior Creditor further
irrevocably appoints the Bank its true and lawful attorney-in-
fact for the purposes specified herein, with full power of
substitution, and such power shall be a power coupled with an
interest.  The Junior Creditor further agrees to execute and
deliver to the Bank such powers of attorney, assignments or other
instruments as may be requested by the Bank in order to enable
the Bank to enforce any and all claims upon or with respect to
any or all of the Subordinated Debt and to collect and receive
any and all payments or distributions which may be payable or
deliverable at any time upon or with respect to any of the
Subordinated Debt.

     4.   If, other than as permitted in this Agreement, the
Junior Creditor shall have received any payment or distribution
of assets of the Debtor of any kind or character whether in cash,
securities, or other property, before all amounts due or to
become due on or in respect of all Senior Debt have been paid in
full in cash or cash equivalents, then and in such event such
payment or distribution shall be received in trust for the Bank
and shall be forthwith paid over or delivered by the Junior
Creditor receiving the same directly to the Bank or to the extent
legally required, to the trustee in bankruptcy, receiver
liquidating trustee, custodian, assignee, agent or other person
making such payment or distribution of assets of the Debtor for
application to the payment of all Senior Debt remaining unpaid to
the extent necessary to pay all Senior Debt in full after giving
effect to any concurrent payment or distribution to or for the
Bank.

     5.   The Junior Creditor agrees that until the Senior Debt
is paid in full it will not (i) subordinate any part of the
Subordinated Debt to any indebtedness owed to any person other
than the Bank, or (ii) assign, transfer or pledge all or any part
of the Subordinated Debt unless such assignment, transfer or
pledge is made expressly subject to this Agreement. The Junior
Creditor agrees to mark any notes or other evidence of the
Subordinated Debt with a legend to the effect that payment of
such instrument is subordinated to payment of the Senior Debt.

     6.   The Junior Creditor represents and warrants that the
Junior Creditor is the lawful owner of the Subordinated Debt and
no part thereof is subject to any defense, offset or
counterclaim, and, except as disclosed in writing to the Bank
prior to the execution of this Agreement, (i) the Subordinated
Debt has not previously been subordinated to the indebtedness or
claims of any other party, (ii) no part of the subordinated Debt
is secured by property of the Debtor, and (iii) no part of the
subordinated Debt has been assigned, transferred or pledged to
any other party.

     7.   The Bank may at any time, and from time to time,
without the consent of or notice to the Junior Creditor, without
incurring responsibility to the Junior Creditor, and without
impairing or releasing any of the Bank's rights, or any of the
obligations of the Junior Creditor hereunder (i) change the time,
amount, manner, place or terms of payment, or change or extend
the time of payment of, or renew or otherwise alter, any
instrument or agreement evidencing any Senior Debt (whether or
not in a commercially reasonable manner), (iii) release anyone
liable in any manner for the payment or collection of any Senior
Debt, (iv) exercise or refrain from exercising any rights against
the Debtor or others (including the Junior Creditor), (v) apply
any sums received by the Bank by whomsoever paid and however
realized, to the payment of the Senior Debt in such manner as the
Bank, in its sole discretion, shall deem appropriate, and (vi)
take any other action which might otherwise constitute a defense
available to, or a discharge of, the Junior Creditor in respect
of the Subordinated Debt in respect of these provisions.

     8.   The terms of this Agreement shall continue to be
effective or be reinstated, as the case may be, if at any time
any payment of any of the Senior Debt is rescinded or must
otherwise be returned by the Bank upon the insolvency, bankruptcy
or reorganization of the Debtor or otherwise, all as though such
payment had been due but not made at such time.

     9.   No failure or delay by the Bank in exercising any
right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any
other right, power or privilege.  The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

     10.  Any provision of this Agreement may be amended or
waived if, but only if, such amendment or waiver is in writing
and is signed by the Bank, the Junior Creditor and the Debtor.

     11.  Subject to paragraph 6, the provisions of this
Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.  Any
reference herein to the Bank and the Junior Creditor shall
include any holder of the Senior Debt and Subordinated Debt,
respectively, as applicable.

     12.  This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia.

     WITNESS the following signatures and seals.

                              Junior Creditor:
415 First Street, S.E.
Washington, D.C.  20003-1827

                                   /S/ C.W. GILLULY
                                   --------------------  [SEAL]
                                   C.W. GILLULY

                              Debtor:

                                   HADRON, INC           [SEAL]

5904 Richmond Highway, Suite 300
Alexandria, Virginia  22303

                                   /S/   S. AMBER GORDON
                                   By: ----------------------
                                        Name: S. AMBER GORDON
                                        Title: Executive Vice President

<PAGE>
                              Bank:

                                   UNITED BANK           [SEAL]

2071 Chain Bridge Road
Vienna, Virginia  22182

                                        /S/ LOUISE M. WAGER
                                   By:---------------------------
                                        Louise M. Wager,
                                        Vice President(..continued)

- 4 -

                                          7.875% NOTES SUPPLEMENTAL INDENTURE
                                           CONTAINING THE PROPOSED AMENDMENTS

                             SUPPLEMENTAL INDENTURE

     THIS SUPPLEMENTAL  INDENTURE (the  "Supplemental  Indenture") is made as of
the 17th day of December, 1999, between Kansas City Southern Industries, Inc., a
corporation  duly organized and existing under the laws of the State of Delaware
(the  "Company"),  and The Chase  Manhattan  Bank, a New York bank organized and
existing  under  the  laws  of  the  United  States  of  America,  trustee  (the
"Trustee").

                             RECITALS OF THE COMPANY

     WHEREAS,  the Company and the Trustee heretofore  executed and delivered an
Indenture, dated as of July 1, 1992, (the "Indenture"); and

     WHEREAS,  the Company's  7.875% Notes Due July 1, 2002 (the "7.875% Notes")
are Outstanding Securities issued pursuant to the Indenture; and

     WHEREAS, Section 902 of the Indenture provides that with the consent of the
Holders  of not less than a  majority  in  principal  amount of all  Outstanding
Securities of any series affected by such Supplemental Indenture (the "Requisite
Consents"), by Act of said Holders delivered to the Company and the Trustee, the
Company,  when authorized by or pursuant to a Board Resolution,  and the Trustee
may enter into an indenture or indentures  supplemental to the Indenture for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the  provisions  of the Indenture or of modifying in any manner the rights of
the  Holders  of such  series  of  Securities,  subject  to  certain  exceptions
specified in Section 902 of the Indenture; and

     WHEREAS,  the Company has obtained the  Requisite  Consents from Holders of
the 7.875% Notes series of Outstanding  Securities to amend the Indenture as set
forth below, as well as the Requisite Consents from Holders of each of the other
outstanding  series of Outstanding  Securities to similarly  amend the Indenture
with respect to those series;

     WHEREAS,  the Board of Directors  has, as evidenced by a Board  Resolution,
authorized  the  amendment  of  the  Indenture  pursuant  to  this  Supplemental
Indenture; and

     WHEREAS,  all things necessary to make this Supplemental  Indenture a valid
supplement to the Indenture according to its terms have been done;

     NOW, THEREFORE, the parties hereto hereby agree as follows:

                                   ARTICLE ONE
                 WAIVERS OF CERTAIN PROVISIONS OF THE INDENTURE

     SECTION 101. Waiver of Applicability of Certain Provisions of the Indenture
to the  Separation  of the  Company's  Financial  Services  Businesses  from its
Transportation  Businesses.  Applicability  of  Sections  801  and  802  of  the
Indenture to a separation (the "Separation") of the Company's financial services
businesses from its transportation businesses,  effected through a spin-off (the
"Spin-Off") of the Company's  financial services  businesses by the distribution
by the Company as a dividend to its stockholders  all of the outstanding  common
stock of Stilwell Financial,  Inc.  ("Stilwell"),  a wholly-owned  subsidiary to
which the  Company  transferred  the  capital  stock of its  financial  services
subsidiaries  and other related assets,  or effected through any other method of
Separation,  is hereby waived. For purposes of this Supplemental Indenture,  the
term  "Separation"  refers  to the  separation  and sale or  transfer  of KCSI's
financial services  businesses,  whether in the form of a Spin-Off or otherwise.
As a result of such waiver,  any such Separation  shall not be deemed a transfer
by the Company of its properties and assets  substantially  as an entirety under
Section 801 and, no successor  Person shall succeed to or be substituted for, or
be allowed to exercise the rights and powers of, the Company  under  Section 802
of the Indenture as a result of the Separation.

                                   ARTICLE TWO
                             ELIMINATION OF COVENANT

     SECTION 201. Elimination of Section 1006. Section 1006 (Limitation on Liens
on Stock or Indebtedness of Significant Subsidiaries) of the Indenture is hereby
eliminated in its entirety from the Indenture,  and shall be of no further force
or effect.

                                  ARTICLE THREE
                            MISCELLANEOUS PROVISIONS

     SECTION 301.  Effectiveness of Supplemental  Indenture.  Upon the execution
and delivery of this Supplemental  Indenture by the Company and the Trustee, the
Indenture shall be supplemented in accordance  herewith,  and this  Supplemental
Indenture shall form a part of the Indenture for all purposes,  and every Holder
of Securities  heretofore  or hereafter  authenticated  and delivered  under the
Indenture  and of any  coupon  appertaining  thereto  shall  be  bound  thereby;
provided,  however, that this Supplemental Indenture shall become operative only
upon  acceptance  by the  Company  of the  7.875%  Notes  validly  tendered  for
purchase,  as set  forth  in the  Offer to  Purchase  and  Consent  Solicitation
Statement,  dated December 6, 1999, as amended or supplemented  through the date
hereof.

     SECTION  302.  Indenture  Remains  in Full  Force  and  Effect.  Except  as
supplemented  hereby,  all provisions in the Indenture and the Securities issued
thereunder shall remain in full force and effect.

     SECTION 303. Indenture and Supplemental Indenture Construed Together.  This
Supplemental  Indenture is an indenture  supplemental to the Indenture,  and the
Indenture and this Supplemental Indenture shall henceforth be read and construed
together.

     SECTION 304. Confirmation   and   Ratification  of  Indenture.   The
Indenture as  supplemented  by this  Supplemental  Indenture and all  Securities
issued thereunder are in all respect confirmed and ratified.

     SECTION 305. No Issuance of New Securities Required.  The Company shall not
be  required to prepare and  execute,  and the Trustee  shall not be required to
authenticate  and  deliver  in  exchange  for  outstanding  Securities,  any new
Securities to conform to this Supplemental Indenture.

     SECTION  306.   Separability   Clause.   In  case  any  provision  of  this
Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining  provisions shall not in any way be
affected or impaired thereby.

     SECTION 307. Terms Defined in the  Indenture.  All  capitalized  terms not
otherwise  defined  herein  shall  have  the  meanings  ascribed  to them in the
Indenture.

     SECTION 308. Effect of  Headings.  The Article and Section  headings herein
are for convenience only and shall not affect the construction hereof.

     SECTION 309. No Effect on Other Series. This Supplemental Indenture relates
solely to the 7.875% Notes and shall have no force or effect with respect to any
other series of Outstanding Securities under the Indenture.

     SECTION 310. Successors  and Assigns.  All covenants and agreements in this
Supplemental  Indenture by the Company  shall bind its  successors  and assigns,
whether so expressed or not.

     SECTION  311.  Certain  Duties  and  Responsibilities  of the  Trustee.  In
entering into this Supplemental Indenture,  the Trustee shall be entitled to the
benefit of every provision of the Indenture relating to the conduct or affecting
the  liability  of or  affording  protection  to  the  Trustee,  whether  or not
elsewhere herein so provided.

     SECTION 312.  Governing Law. This Supplemental  Indenture shall be governed
by and  construed  in  accordance  with the laws of the State of New York.  This
Supplemental  Indenture is subject to the provisions of the Trust  Indenture Act
that are required to be part of this  Supplemental  Indenture and shall,  to the
extent applicable, be governed by such provisions.

     SECTION 313.  Counterparts.  This Supplemental Indenture may be executed in
any number of counterparts,  each of which, when so executed, shall be deemed an
original,  but all such counterparts  shall together  constitute but one and the
same Supplemental Indenture.

     SECTION 214.  Trustee Not  Responsible  for Recitals.  The recitals  herein
contained  are  made by the  Company  and not by the  Trustee,  and the  Trustee
assumes no responsibility for the correctness  thereof. The Trustee shall not be
responsible  in any  manner  whatsoever  for or in respect  of the  validity  or
sufficiency of this Supplemental Indenture.

IN WITNESS WHEREOF,  the parties hereto have caused this Supplemental  Indenture
to be duly  executed  and  attested,  all as of the date and  year  first  above
written.

                    KANSAS CITY SOUTHERN INDUSTRIES, INC.

                    By: /s/ Anthony P. McCarthy
                    Title:  Vice President & Treasurer
Attest:

/s/ Sherry K. Cooper
Title:  Asst. Secretary

<PAGE>

                        THE CHASE MANHATTAN BANK
        Trustee

                        By:  /s/ R. Lorenzen
                         Title: Assistant Vice President

Attest:

/s/ N. Rodriquez
Title:  Trust Officer

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