Document:

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                                                                    EXHIBIT 10.1

                                 H&R BLOCK, INC.

                   1993 LONG-TERM EXECUTIVE COMPENSATION PLAN
                       (As Amended Through August 1, 2001)

         1.  PURPOSES. The purposes of this 1993 Long-Term Executive
Compensation Plan are to provide incentives and rewards to those employees
largely responsible for the success and growth of H&R Block, Inc., and its
subsidiary corporations and to assist all such corporations in attracting and
retaining executives and other key employees with experience and ability.

         2. DEFINITIONS.

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

         (b) COMMON STOCK means the Common Stock, without par value, of the
Company.

         (c) COMPANY means H&R Block, Inc., a Missouri corporation, and, unless
the context otherwise requires, includes its subsidiary corporations and their
respective divisions, departments and subsidiaries and the respective divisions,
departments and subsidiaries of such subsidiaries.

         (d) INCENTIVE STOCK OPTION means a Stock Option which meets all of the
requirements of an "incentive stock option" as defined in Section 422(b) of the
Internal Revenue Code of 1986, as now in effect or hereafter amended (the
"Internal Revenue Code").

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

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

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

         (h) PLAN means this 1993 Long-Term Executive Compensation Plan, as the
same may be amended from time to time.

         (i) RECIPIENT means an employee of the Company who has been granted an

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Award under the Plan.

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

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

         (l) STOCK OPTION means the right to purchase, upon exercise of a Stock
Option granted under this Plan, shares of the Company's Common Stock.

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

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

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

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Section 422 of the Internal Revenue Code and shall be granted only
to those employees eligible thereunder to receive the same.

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

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

         6. STOCK SUBJECT TO THE PLAN. The total number of shares of Common
Stock issuable under this Plan may not at any time exceed 26,000,000 shares,
subject to adjustment as provided herein. All of such shares may be issued or
issuable in connection with the exercise of Incentive Stock Options. No more
than an aggregate of five percent (5%) of the total number of shares of Common
Stock issuable under this Plan may be issued or issuable in connection with
Awards that constitute Common Stock, Restricted Shares, Performance Shares and
Performance Units. Shares of Common Stock not actually issued pursuant to an
Award shall be available for future Awards. Shares of Common Stock to be
delivered or purchased under the Plan may be either authorized but unissued
Common Stock or treasury shares. The total number of shares of Common Stock that
may be subject to one or more Awards granted to any one Recipient during a
calendar year may not exceed 700,000, subject to adjustment as provided in
Section 16 of the Plan.

         7. AWARDS.

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

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

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

         9. DEFERRED PAYMENTS AND DIVIDEND AND INTEREST EQUIVALENTS.

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

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

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

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

         12. CONTINUATION OF EMPLOYMENT. The Committee shall require that a
Recipient be an employee of the Company at the time an Award is paid or
exercised. The Committee may provide for the termination of an outstanding Award
if a Recipient ceases to be an employee of the Company and may establish such
other provisions with respect to the termination or disposition of an Award on
the death or retirement of a Recipient as it, in its sole discretion, deems
advisable. The Committee shall have the sole power to determine the date of any
circumstances which shall constitute a cessation of employment and to determine
whether such cessation is the result of retirement, death or any other reason.

         13. REGISTRATION OF STOCK. Each Award shall be subject to the
requirement that

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if at any time the Committee shall determine that qualification or registration
under any state or federal law of the shares of Common Stock, Restricted Shares,
Stock Options, Incentive Stock Options, or other securities thereby covered or
the consent or approval of any governmental regulatory body is necessary or
desirable as a condition of or in connection with the granting of such Award or
the purchase of shares thereunder, the Award may not be paid or exercised in
whole or in part unless and until such qualification, registration, consent or
approval shall have been effected or obtained free of any conditions the
Committee, in its discretion, deems unacceptable.

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

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

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

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

         18. WITHHOLDING TAXES. The Company shall have the right to deduct from
all Awards hereunder paid in cash any federal, state, local or foreign taxes
required by law to be withheld with respect to such Awards and, with respect to
Awards paid in other than cash, to require the payment (through withholding from
the Recipient's salary or otherwise) of any such taxes. Subject to such
conditions as the Committee may establish, Awards under the Plan payable in
shares of Common Stock may provide that the Recipients thereof may elect, in
accordance with any applicable regulations, to have the Company withhold shares
of Common Stock to satisfy all or part of any such tax withholding obligations,
with the value of such withheld shares of Common Stock based upon their fair
market value on the date the tax withholding is required to be made.

         19. COSTS AND EXPENSES. The cost and expenses of administering the Plan
shall be borne by the Company and not charged to any Award nor to any Recipient.

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

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

         22. GUIDELINES. The Board of Directors of the Company shall have the
power to

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provide guidelines for administration of the Plan by the Committee and to make
any changes in such guidelines as from time to time the Board deems necessary.

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

         24. TERMINATION. The Committee may grant Awards at any time prior to
September 7, 2003, on which date this Plan will terminate except as to Awards
then outstanding hereunder, which Awards shall remain in effect until they have
expired according to their terms or until September 7, 2003, whichever first
occurs. No Incentive Stock Option shall be exercisable later than 10 years
following the date it is granted.

         25. APPROVAL. This Plan shall take effect upon due approval by the
shareholders of the Company.

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                                                                    EXHIBIT 10.2
                                 H&R BLOCK, INC.
                        2000 EMPLOYEE STOCK PURCHASE PLAN
                           (as amended August 1, 2001)

SECTION 1.        PURPOSE OF PLAN

         The H&R Block, Inc. 2000 Employee Stock Purchase Plan (the "Plan") is
designed to encourage and assist employees of the subsidiaries of H&R Block,
Inc. (collectively H&R Block, Inc. ("Block") and such subsidiaries shall be
referred to as the "Company") to acquire an equity interest in Block through the
purchase of shares of Block common stock, without par value ("Common Stock").
This Plan is intended to constitute an "employee stock purchase plan" within the
meaning of Section 423 of the Internal Revenue Code (the "Code").

SECTION 2.  ADMINISTRATION OF THE PLAN

         The Plan shall be administered by Block's Board of Directors (the
"Board") or by a committee of the Board (the "Committee") appointed by the Board
and serving at its pleasure (the Board or any such Committee being herein
referred to as the "Administrator"). Until such time as the Board shall
determine otherwise, the Compensation Committee of the Board shall serve as
Administrator. The Administrator shall have full power and authority, not
inconsistent with the express provisions of the Plan, to administer and
interpret the Plan, including the authority to:

         (i)      grant options and authorize the issuance of shares;
         (ii)     make and amend all rules, regulations, guidelines, procedures
                  and policies for administering the Plan;
         (iii)    decide all questions and settle all disputes that may arise in
                  connection with the Plan;
         (iv)     appoint persons and entities to act as designated
                  representatives on its behalf in administering the Plan
                  pursuant to its provisions (in which case the term
                  "Administrator" as used herein shall include such persons or
                  entities to the extent of such appointment);
         (v)      establish accounts with a person or entity appointed pursuant
                  to (iv) above ("Custodian") to hold Common Stock purchased
                  under the Plan ("Stock Account");
         (vi)     cause Block to enter into a written agreement with the
                  Custodian setting forth the terms and conditions upon which
                  Stock Accounts shall be governed ("Custodial Agreement"); and
         (vii)    require Participants to hold shares of Common Stock under the
                  Plan in Stock Accounts (in which case each Participant's
                  decision to participate in the Plan shall constitute the
                  appointment of such Custodian as custodial agent for the
                  purpose of holding such shares) until such time as shall be
                  specified in the Custodial Agreement.

         All interpretations, decisions and determinations made by the
Administrator shall be binding on all persons concerned.

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SECTION 3. NATURE AND NUMBER OF SHARES

         The Common Stock subject to issuance under the terms of the Plan shall
be authorized but unissued shares or previously issued shares reacquired and
held by the Company. The aggregate number of shares that may be issued under the
Plan shall not exceed 6,000,000 shares of Common Stock.

         In the event of any reorganization, recapitalization, stock split,
reverse stock split, stock dividend, combination of shares, exchange of shares,
merger, consolidation, offering of rights or other similar change in the capital
structure of the Company, the Board or the Committee may make such adjustment,
if any, as it deems appropriate in the number, kind and purchase price of the
shares available for purchase under the Plan and in the maximum number of shares
which may be issued under the Plan.

SECTION 4. ELIGIBILITY

         Each individual employed by a Participating Subsidiary (as hereinafter
defined), except as provided below, shall be eligible to participate in the Plan
("Employee"). The following individuals shall be excluded from participation:

         (a) Persons who, as of the date of grant of an Option, have been
continuously employed by the Participating Subsidiary for less than twelve (12)
consecutive months;

         (b) Persons who, immediately upon the grant of an Option, own directly
or indirectly, or hold options or rights to acquire, an aggregate of five
percent (5%) or more of the total combined voting power or value of all
outstanding shares of all classes of Block or any Subsidiary; and

         (c) Persons who are customarily employed by the Company less than
twenty (20) hours per week or for not more than five (5) months in any calendar
year.

         For purposes of the Plan, a "Subsidiary" is any corporation or other
entity in which Block owns, directly or indirectly, stock (or other ownership
interests) possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock (or other ownership interests). A "Participating
Subsidiary" is any Subsidiary meeting the requirements above that is designated
by the Board or the Committee as a subsidiary whose employees are eligible to
participate in the Plan.

SECTION 5. ENROLLMENT AND WITHDRAWAL

         Each eligible Employee may enroll or re-enroll in the Plan as of the
first day of any Option Period (as hereinafter defined) after the Employee first
becomes eligible to participate. To enroll, an Employee must complete and sign
an enrollment form (including a payroll deduction authorization) in a form
acceptable to the Administrator and submit it to the Company, or use such other
means to enroll as is authorized by the Administrator, at least 15 calendar days
prior to the commencement of such Option Period or by such other date as the
Administrator may prescribe. Participation in the Plan is voluntary. A
"Participant" shall be an Employee enrolled in the Plan.

         A Participant will automatically be enrolled in all future Option
Periods unless the Participant withdraws from the Plan. If a Participant
withdraws from the Plan, he or she

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will cease to be a Participant and may only participate in future Option Periods
if he or she re-enrolls in the Plan. Any Participant may withdraw from the Plan
by notifying the Company at any time during the Option Period prior to the
Purchase Date (as defined below). Upon such a withdrawal, the entire amount
contributed to the Plan by the Participant (and not yet used to purchase Common
Stock) will be refunded without interest as soon as administratively
practicable.

SECTION 6. GRANT OF OPTIONS

         Under the Plan, each "Option Period" shall be a period of approximately
six (6) months beginning on January 1 and July 1, respectively, and ending on
June 30 and December 31, respectively, or such other period as the Board or the
Committee may designate from time to time.

         Each person who is a Participant on the first day of an Option Period
(the "Grant Date") will as of such day be granted an option for the Period (the
"Option"). Such Option will be for the number of whole and fractional shares of
Common Stock to be determined by dividing (i) the balance credited to the
Participant's Payment Account (as defined in Section 7(b)) during such Option
Period by means of payroll deduction (or such other means deemed acceptable by
the Administrator) as of the Purchase Date (as determined under Section 8
below), by (ii) the purchase price per share of the Common Stock as determined
under Section 8.

         In no event shall a Participant be entitled to purchase, for any Option
Period, more than the lesser of (i) the number of shares obtained by dividing
$25,000 by the fair market value of a share of Common Stock on the Grant Date
for such Option Period, or (ii) the maximum number of shares permitted to be
purchased under Section 7(c) below.

         The Administrator will reduce, on a substantially proportionate basis,
the number of shares of Common Stock receivable by each Participant upon
exercise of his or her Option for an Option Period in the event that the number
of shares then available under the Plan is otherwise insufficient, and will
return to Participant without interest any remaining unused balance in the
Participant's Payment Account as soon as administratively practicable.

SECTION 7. METHOD OF PAYMENT

         (a) Form of Payment. Payment for shares shall be made in installments
through after-tax payroll deductions over the Option Period, with such
deductions taken from pay periods ending during the Option Period, or in such
other form of payment deemed acceptable by the Administrator.

         Subject to the limits below and in Section 8, each Participant may
elect through payroll withholding during the Option Period (or such other means
deemed acceptable by the Company) to have credited to his or her Payment Account
an amount not less than one percent, and not greater than ten percent (10%) of
Compensation (as defined below); provided that the Administrator from time to
time before an enrollment date may establish limits other than those herein
described for all purchases to occur during the relevant Option Period.

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         For purposes of the Plan, "Compensation" shall mean all compensation
paid to the Participant by the Company and currently includible in his or her
income, including such amounts as commissions, overtime, and other amounts
includible in the general definition of compensation provided in Treasury
Regulation ss.1.415-2(d)(1), plus any amount that would be so included but for
the fact that it was contributed to (a) a qualified plan pursuant to an elective
deferral under Section 401(k) of the Code, (b) a nonqualified deferred
compensation plan, and/or (c) a cafeteria plan on a before-tax basis pursuant to
an election under Section 125 of the Code, but not including (i) payments under
stock option plans and other employee benefit plans or other amounts excluded
from the definition of compensation provided in the Treasury Regulations under
Section 415 of the Code, (ii) bonuses or compensation paid under short-term
incentive plans, and (iii) reimbursements or other expense allowances, fringe
benefits (cash and noncash), moving expenses, payments of benefits under
nonqualified deferred compensation plans, and welfare benefits.

         A Participant may increase or decrease the rate of withholding on a
prospective basis effective as to future pay periods within an Option Period by
giving not less than two (2) weeks prior written notice (in a form acceptable to
the Administrator) to the Company.

         (b) Accounts. A "Payment Account" means the book entry account
maintained by the Company or Administrator to record the amount of Participant's
payments made pursuant to Section 7(a) and any cash amount carried forward from
an Option Period to the Grant Date for the next Option Period pursuant to
Section 9. All payments by each Participant shall be credited to such
Participant's Payment Account pending the purchase of Common Stock in accordance
with the provisions of the Plan. All such amounts in the Payment Account shall
be assets of the Company and may be used by the Company for any corporate
purpose. No interest will be paid on amounts credited to a Participant's Payment
Account.

         (c) Limits on Purchase. In no event shall the rights of any Participant
to purchase shares (under this Plan and under any other stock purchase plans of
Block or any Subsidiary) accrue at a rate that exceeds $25,000 as measured by
the fair market value of such shares (determined in the case of each such share
as of the date of grant of the related option) for the calendar year.

SECTION 8. PURCHASE PRICE

         The purchase price of Common Stock issued pursuant to the exercise of
an Option shall be ninety percent (90%) of the lower of the fair market value of
Common Stock on (a) the Grant Date for the Option Period, or (b) the fair market
value of Common Stock on the last trading day of the Option Period (the
"Purchase Date").

         Fair market value shall mean the closing price of Common Stock on the
New York Stock Exchange or other national securities exchange on which the
Common Stock is then principally traded or, if that measure of price is not
available, on a composite index of such exchanges or, if that measure of price
is not available, in a national market system for securities. In the event that
there are no sales of Common Stock on any such exchange or market on the Grant
Date, the fair market value of the Common Stock shall be deemed to be the
closing sales price on the next following day on which Common Stock was sold on
any such exchange or market. In the event that there are no sales of

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Common Stock on any such exchange or market on the Purchase Date, the fair
market value of the Common Stock shall be deemed to be the closing sales price
on the next preceding day on which Common Stock was sold on any such exchange or
market. In the event that the Common Stock is not listed on any such market or
exchange on the Grant or Purchase Dates, a reasonable valuation of the fair
market value of the Common Stock on such dates shall be made by the
Administrator.

SECTION 9. EXERCISE OF OPTIONS; SIX-MONTH HOLDING PERIOD

         If an Employee is a Participant in the Plan on a Purchase Date, he or
she will be deemed to have exercised the Option granted to him or her for the
period ending on that Purchase Date. Upon such exercise, the Company will apply
the balance of the Participant's Payment Account to the purchase of the number
of whole or fractional shares of Common Stock determined under Section 6 and, as
soon as practicable thereafter, will issue and deliver said whole shares to the
Participant (unless Stock Accounts are established by the Administrator pursuant
to Section 2 of the Plan). Any cash remaining in the Participant's Payment
Account and the cash value of any fractional shares of Common Stock shall either
be carried forward to the next Grant Date (without interest) and become a part
of the Payment Account for the Option Period to which such next Grant Date
applies, or, upon written request of the Participant to the Administrator, be
paid to Participant without interest (unless Stock Accounts are established by
the Administrator pursuant to Section 2 of the Plan).

         Notwithstanding anything herein to the contrary, Block's obligation to
issue and deliver whole shares of Common Stock under the Plan will be subject to
the approval required by any governmental authority in connection with the
authorization, issuance, sale or transfer of said shares, to any requirements of
any national securities exchange applicable thereto, and to compliance by Block
with other applicable legal requirements in effect from time to time.

         Any shares of Common Stock issued under the Plan may not be sold,
transferred or assigned for a period of six months after the date issued. Each
certificate representing shares of Common Stock issued under this Plan during
such six-month period shall bear the following legend:

         "The Shares represented by this certificate may not be sold,
         transferred or assigned, and the issuer shall not be required to give
         effect to any attempted sale, transfer or assignment, until a date that
         is more than six months after the date of issuance of this
         certificate.";

or such other legend as shall be approved by the Administrator.

SECTION 10. TERMINATION OF EMPLOYMENT

         Subject to Section 11, upon the termination of a Participant's
employment with the Company for any reason, the Participant's Payment Account
balance shall be frozen to future accruals and the Participant shall be
withdrawn from Plan participation and cease to be a Participant. Upon the
cessation of participation, any Option held by the Participant under the Plan
will be deemed cancelled, the balance of the Participant's Payment Account will
be returned to the Participant or, in the case of death, refunded in accordance
with Section 11, without interest, as soon as administratively practicable and
the Participant will have no further rights under the Plan.

                                       5
<PAGE>

SECTION 11. DEATH OF A PARTICIPANT

         Each Participant may designate one or more beneficiaries who, in the
event of the Participant's death, would receive any Common Stock and/or cash
credited to the Participant under the Plan. In the case of a Participant who is
married at time of death, the Administrator may condition any designation of a
beneficiary other than the Participant's spouse on the written consent of such
spouse. A designation of beneficiary and election may be changed by the
Participant at any time. Any such designation or change in designation, if made
in accordance with the Plan and in a form and manner that is acceptable to the
Administrator, shall be effective upon receipt by the Company and shall be the
exclusive means of designating a beneficiary under the Plan. In the absence of a
proper beneficiary designation under the Plan, the balance in the deceased
Participant's Payment Account under the Plan will be refunded without interest
to his or her estate.

         As soon as administratively feasible after the death of a Participant,
any Common Stock and/or cash credited to the Participant under the Plan shall be
delivered to the Participant's designated beneficiaries or, in the absence of
such designation, to the executor, administrator or other legal representative
of the Participant's estate. Such delivery and payment shall relieve the Company
of further liability to the deceased Participant or his or her beneficiaries
with respect to the Plan. If more than one beneficiary is designated, each
beneficiary shall receive an equal portion of the Payment Account and, if any,
the Stock Account, unless the Participant has given express contrary
instructions.

SECTION 12. ASSIGNMENT

         Except as provided in Section 11 above, funds, securities, rights or
other property held for the account of a Participant shall not be sold, pledged,
assigned, transferred, or hypothecated in any way (whether by operation of law
or otherwise) and shall not be subject to sale under execution, attachment, or
similar process. A Participant's right to purchase shares under the Plan shall
be exercisable during the Participant's lifetime only by the Participant. If
this provision is violated, the Participant's election to purchase Common Stock
shall terminate and the only obligation of the Company remaining under the Plan
will be to refund to the Participant the amount then credited to his or her
Payment Account and deliver to Participant any whole shares of Common Stock
credited to him or her under any Stock Account.

SECTION 13. EQUAL RIGHTS AND PRIVILEGES

         All eligible Employees shall have equal rights and privileges with
respect to the Plan so that the Plan qualifies as an "employee stock purchase
plan" within the meaning of Section 423 or any successor provisions of the Code
and related regulations. Any provision of the Plan that is inconsistent with
Section 423 or any successor provision of the Code shall without further act of
amendment by the Company be reformed to comply with the requirements of Section
423. This Section 13 shall take precedence over all other provisions of the
Plan.

SECTION 14. RIGHTS AS STOCKHOLDER

                                       6
<PAGE>

         A Participant shall have no rights as a stockholder under an Option
until he or she becomes a stockholder as herein provided. A Participant will
become a stockholder with respect to shares for which payment has been completed
as provided in Section 8 as of the close of business on the Purchase Date for
the Option Period.
SECTION 15. MODIFICATION AND TERMINATION OF THE PLAN

         The Board or the Committee may terminate the Plan at any time and may
at any time and from time to time amend the Plan in any manner permitted by law.
No amendment shall be effective unless within one (1) year after it is adopted
by the Board it is approved by Block's shareholders in the manner prescribed
under the Treasury Regulations under Section 423 of the Code, if such amendment
would:

         (i)      increase the number of shares reserved for purchase under the
                  Plan, unless such increase is by reason of any change in the
                  capital structure of the Company referred to in Section 3
                  hereof;
         (ii)     change the designation of corporations or other entities whose
                  employees may be offered Options under the Plan, except as
                  permitted under Treasury Regulations ss.1.423-2(c)(4);
         (iii)    materially modify the requirements as to eligibility for
                  participation in the Plan; or
         (iv)     materially increase the benefits accruing to Participants
                  under the Plan.

         In the event the Plan is terminated, the Board or Committee may elect
to terminate all outstanding Options either immediately or upon completion of
the purchase of shares on the next Purchase Date, unless the Board has
determined that the right to make all such purchases shall expire on some other
designated date occurring prior to the next Purchase Date. If Options are
terminated prior to expiration, all funds contributed to the Plan that have not
been used to purchase shares shall be returned without interest to the
Participants.

SECTION 16. BOARD AND SHAREHOLDER APPROVAL; EFFECTIVE DATE

         This Plan was adopted by the Board on June 28, 2000. The Effective Date
of the Plan shall be September 13, 2000, subject to shareholder approval at the
annual meeting of shareholders of H&R Block, Inc. on that date.

SECTION 17. OTHER PROVISIONS

         Options and other documentation under the Plan shall contain such other
provisions as the Administrator shall deem advisable, provided that no such
provision shall conflict with the express terms of the Plan.

SECTION 18. EMPLOYMENT RIGHTS

         Nothing contained in the provisions of the Plan shall be construed to
give to any individual the right to be retained in the employ of the Company or
to interfere with the right of the Company to discharge any employee at any
time.

                                       7

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