Document:

EXHIBIT 4.2

     FOR PURPOSES OF SECTIONS 1272,  1273 AND 1275 OF THE INTERNAL  REVENUE CODE
OF 1986,  AS AMENDED,  THIS  DEBENTURE IS BEING  ISSUED WITH TAX ORIGINAL  ISSUE
DISCOUNT AND THE ISSUE DATE OF THIS  DEBENTURE IS AUGUST 12, 2003.  IN ADDITION,
THIS DEBENTURE IS SUBJECT TO THE UNITED STATES  FEDERAL  INCOME TAX  REGULATIONS
GOVERNING  CONTINGENT  PAYMENT DEBT INSTRUMENTS.  FOR PURPOSES OF SECTIONS 1272,
1273  AND  1275 OF THE  INTERNAL  REVENUE  CODE,  THE  COMPARABLE  YIELD OF THIS
DEBENTURE IS 8.4%,  COMPOUNDED  SEMIANNUALLY (WHICH WILL BE TREATED AS THE YIELD
TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES).

     DST SYSTEMS,  INC. (THE  "COMPANY")  AGREES,  AND BY ACCEPTING A BENEFICIAL
OWNERSHIP  INTEREST IN THIS DEBENTURE  EACH HOLDER AND ANY  BENEFICIAL  OWNER OF
THIS DEBENTURE  WILL BE DEEMED TO HAVE AGREED,  FOR UNITED STATES FEDERAL INCOME
TAX PURPOSES (1) TO TREAT THIS DEBENTURE AS A DEBT INSTRUMENT THAT IS SUBJECT TO
U.S. TREAS. REG. SEC. 1.1275-4 OR ANY SUCCESSOR  PROVISION (THE "CONTINGENT DEBT
REGULATIONS")  AND  (2)  TO BE  BOUND  (IN  THE  ABSENCE  OF  AN  ADMINISTRATIVE
DETERMINATION OR JUDICIAL RULING TO THE CONTRARY) BY THE COMPANY'S DETERMINATION
OF THE "COMPARABLE YIELD" AND "PROJECTED PAYMENT SCHEDULE" WITHIN THE MEANING OF
THE CONTINGENT DEBT  REGULATIONS,  WITH RESPECT TO THIS  DEBENTURE.  THE COMPANY
AGREES TO  PROVIDE  PROMPTLY  TO THE  HOLDER  OF THIS  DEBENTURE,  UPON  WRITTEN
REQUEST,  THE ISSUE PRICE,  AMOUNT OF TAX ORIGINAL ISSUE  DISCOUNT,  ISSUE DATE,
YIELD TO MATURITY,  COMPARABLE YIELD AND PROJECTED  PAYMENT  SCHEDULE.  ANY SUCH
WRITTEN  REQUEST  SHOULD BE SENT TO THE COMPANY AT THE  FOLLOWING  ADDRESS:  DST
SYSTEMS, INC., 333 West 11th Street, Kansas City, Missouri 64105, ATTENTION: DST
CORPORATE SECRETARY.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY  TRUST  COMPANY  TO THE  ISSUER  OR ITS  AGENT  FOR  REGISTRATION  OF
TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF THE DEPOSITORY  TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY),  ANY TRANSFER,  PLEDGE OR OTHER
USE HEREOF FOR VALUE OR  OTHERWISE  BY OR TO ANY  PERSON IS  WRONGFUL  SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL  DEBENTURE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY,  OR TO A SUCCESSOR
THEREOF OR SUCH  SUCCESSOR'S  NOMINEE AND  TRANSFERS  OF PORTIONS OF THIS GLOBAL
DEBENTURE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     THIS  DEBENTURE AND ANY COMMON STOCK  ISSUABLE UPON THE  CONVERSION OF THIS
DEBENTURE  HAVE NOT BEEN  REGISTERED  UNDER THE U.S.  SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD OR OTHERWISE  TRANSFERRED IN
THE ABSENCE OF SUCH  REGISTRATION  OR AN APPLICABLE  EXEMPTION  THEREFROM.  EACH
PURCHASER OF THIS DEBENTURE IS HEREBY NOTIFIED THAT THE SELLER OF THIS DEBENTURE
MAY BE  RELYING  ON THE  EXEMPTION  FROM  THE  PROVISIONS  OF  SECTION  5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

     THIS  DEBENTURE AND ANY COMMON STOCK  ISSUABLE UPON THE  CONVERSION OF THIS
DEBENTURE MAY NOT BE OFFERED,  SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1)
TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER"  WITHIN THE MEANING OF RULE 144A UNDER THE  SECURITIES  ACT ACQUIRING FOR
ITS OWN  ACCOUNT OR FOR THE  ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER IN A
TRANSACTION  MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION
FROM  REGISTRATION  UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE),  (3) TO DST SYSTEMS,  INC. OR ANY SUBSIDIARY THEREOF OR (4) PURSUANT
TO AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES  ACT, AND IN EACH
CASE IN  ACCORDANCE  WITH ALL  APPLICABLE  SECURITIES  LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

     THIS DEBENTURE, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND
ANY RELATED  DOCUMENTATION  MAY BE AMENDED OR SUPPLEMENTED  FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS DEBENTURE AND ANY
SUCH  SHARES TO  REFLECT  ANY CHANGE IN  APPLICABLE  LAW OR  REGULATION  (OR THE
INTERPRETATION  THEREOF) OR IN  PRACTICES  RELATING TO THE RESALE OR TRANSFER OF
RESTRICTED  SECURITIES  GENERALLY.  THE HOLDER OF THIS DEBENTURE AND SUCH SHARES
SHALL BE DEEMED BY THE  ACCEPTANCE OF THIS DEBENTURE AND ANY SUCH SHARES TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

<PAGE>

                                DST SYSTEMS, INC.

             4.125% Series A Convertible Senior Debentures due 2023

No. 1                                   Original Principal Amount:  $500,000,000
Issue Date: August 12, 2003                                   CUSIP: 233326 AA 5

     DST  SYSTEMS,  INC.,  a Delaware  corporation  (the  "Company"),  for value
received,  hereby  promises to pay to Cede & Co.,  or  registered  assigns,  the
Accreted  Principal  Amount (as  defined  in the  Indenture  referred  to on the
reverse side of this Security) on August 15, 2023.

     This Security  shall bear regular cash interest and the Original  Principal
Amount (as defined in the Indenture) of this Security shall accrete as specified
on the reverse side of this Security and in the Indenture.  Contingent Interest,
if any, on this  Security,  will be payable as  specified on the reverse side of
this Security and in the Indenture. This Security is convertible,  is subject to
redemption  at the option of the Company or purchase at the option of the Holder
hereof,  all as  specified  on the  reverse  side  of this  Security  and in the
Indenture.

     Reference  is hereby made to the further  provisions  of this  Security set
forth on the reverse  hereof,  which further  provisions  shall for all purposes
have the same effect as if set forth at this place.

<PAGE>

     IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be duly
executed.

                               DST SYSTEMS, INC.
                               By:       /s/ Kenneth V. Hager
                                         ---------------------------------------
                                         Name:   Kenneth V. Hager
                                         Title:  VP - CFO

                               By:       Gregg Wm. Givens
                                         ---------------------------------------
                                         Name:   Gregg Wm. Givens
                                         Title:  VP - CAO

<PAGE>

    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

JPMORGAN CHASE BANK, as Trustee,
certifies that this is one of the Securities referred
to in the within-mentioned Indenture.

By: /s/ Carol Ng
   -------------------------------------------------------
     Authorized Officer

Dated: August 12, 2003

<PAGE>

             4.125% Series A Convertible Senior Debentures due 2023

     This  Security  is one of a duly  authorized  issue  of  securities  of the
Company (herein called the "Securities") limited in aggregate Original Principal
Amount to $500,000,000  Original  Principal  Amount,  issued under an Indenture,
dated as of August 12, 2003 (the "Indenture"),  between the Company and JPMorgan
Chase Bank, as Trustee (the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective  rights,  limitations
of rights,  duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities  and of the terms upon which the  Securities  are, and
are to be, authenticated and delivered. Capitalized terms used and not otherwise
defined in this Security are used as defined in the Indenture.

1. Interest.

     This  Security  will bear  interest  from  August 12, 2003 or from the most
recent date to which interest has been paid or duly provided for,  semi-annually
in arrears on February 15 and August 15 of each year (each, an "Interest Payment
Date"), subject to Section 1.08 of the Indenture,  commencing February 15, 2004,
at the rate per  annum  equal to  4.125%,  to but  excluding  August  15,  2010.
Interest on this  Security  shall be  calculated  on the basis of a 360-day year
composed  of twelve  30-day  months.  Interest  payable on this  Security on any
Interest  Payment  Date will  include  interest  for the  immediately  preceding
Interest  Period.  The interest so payable and punctually  paid or duly provided
for on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this Security (or one or more  Predecessor  Securities)
is  registered  at the close of  business  on the  Regular  Record Date for such
interest,  which  shall  be the  February  1 or  August  1, as the  case may be,
immediately  preceding the relevant Interest Payment Date. Any interest which is
payable,  but is not  punctually  paid or duly  provided  for,  on any  Interest
Payment Date shall forthwith cease to be payable to the registered Holder hereof
on the relevant  Regular  Record Date by virtue of having been such Holder,  and
may be  paid  to the  Person  in  whose  name  this  Security  (or  one or  more
Predecessor  Securities)  is  registered  at the close of  business on a Special
Record  Date  for the  payment  of such  Defaulted  Interest  to be fixed by the
Company,  notice  whereof shall be given to the Holders of  Securities  not less
than 10 days prior to such Special  Record  Date,  or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities  may be listed,  and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

     From and after August 15,  2010,  the Company will no longer be required to
pay cash interest.  The Original Principal Amount of this Security shall accrete
daily at the  Applicable  Yield on a semiannual  bond  equivalent  basis using a
360-day year composed of twelve 30-day months.  The Applicable Yield shall be 0%
prior to August 15, 2010 and 4.125% per annum on and after April 15, 2010, until
Stated Maturity.  At Stated  Maturity,  the Holder of this Security will receive
$1,700.28 for each $1,000 Original Principal Amount of Securities,  which is the
fully  Accreted  Principal  Amount of this  Security  on such  date,  unless the
Security has been earlier redeemed, purchased or converted.

2. Contingent Interest.

     From and after August 20, 2010, the Company will pay Contingent Interest on
this Security under the circumstances and in the amounts described in Article 14
of  the  Indenture.   Such  Contingent  Interest,   if  any,  shall  be  payable
semiannually  in arrears  on each  Interest  Payment  Date to the Holder of this
Security as of the close of business on the Regular Record Date relating to such
Interest Payment Date.

3. Interest on Overdue Amounts.

     If the Accreted  Principal  Amount  hereof or any portion of such  Accreted
Principal  Amount is not paid when due (whether  upon  acceleration  pursuant to
Section 4.02 of the Indenture,  upon the dates set for payment of the Redemption
Price,  Purchase Price or Fundamental  Change Purchase Price, or upon the Stated
Maturity of this  Security)  or if  interest  due hereon  (including  Contingent
Interest and Liquidated Damages,  if any) (or any portion of such interest),  is
not paid when  due,  then in each such case the  overdue  amount  shall,  to the
extent  permitted by law,  bear interest at the rate then borne by this Security
or, if any overdue  amount exists on or after August 15, 2010, at the Applicable
Yield of this  Security,  which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including interest
thereon,  has been made or duly provided for. All such interest shall be payable
as set forth in the Indenture.

4. Method of Payment.

     Subject to the terms and conditions of the Indenture, the Company will make
payments in respect of Redemption  Price,  Purchase  Price,  Fundamental  Change
Purchase Price and at Stated  Maturity to Holders who surrender  Securities to a
Paying Agent to collect such payments in respect of the Securities.  The Company
will pay cash amounts in money of the United  States that at the time of payment
is legal tender for payment of public and private  debts.  However,  the Company
may make such cash  payments  by check  payable  in such  money;  provided  that
payment by wire transfer of  immediately  available  funds will be required with
respect  to  principal  of  and  interest  (including  Contingent  Interest  and
Liquidated  Damages,  if any) on all Global  Securities  and all  Securities  of
Holders  of  more  than  $25,000,000  aggregate  Original  Principal  Amount  of
Securities that have requested such method of payment and provided wire transfer
instructions  to the Company or the Paying Agent.  If any Interest  Payment Date
(other than an Interest  Payment  Date  coinciding  with the Stated  Maturity or
earlier  Redemption  Date,  Purchase Date, or Fundamental  Change Purchase Date)
falls on a day that is not a Business Day,  such  Interest  Payment Date will be
postponed  to the next  succeeding  Business Day and no interest on such payment
will accrue for the period from and after the Interest Payment Date to such next
succeeding  Business Day,  provided that, if such Business Day falls in the next
succeeding  calendar month,  the Interest  Payment Date will be the Business Day
immediately  preceding  such  Interest  Payment  Date.  If the Stated  Maturity,
Redemption  Date,  Purchase  Date or  Fundamental  Change  Purchase Date of this
Security would fall on a day that is not a Business Day, the required payment of
interest, if any, and principal will be made on the next succeeding Business Day
and no interest on such payment  will accrue and no  principal  will accrete for
the period from and after the Stated Maturity, Redemption Date, Purchase Date or
Fundamental Change Purchase Date to such next succeeding Business Day.

5. Paying Agent, Conversion Agent and Registrar.

     Initially,  the  Trustee  will act as Paying  Agent,  Conversion  Agent and
Registrar.  The  Company may  appoint  and change any Paying  Agent,  Conversion
Agent,  Registrar  or  co-registrar  without  notice,  other than  notice to the
Trustee.  The Company or any of its  Subsidiaries or any of their Affiliates may
act as Paying Agent, Conversion Agent, Registrar or co-registrar.

6. Indenture.

     The terms of the Securities include those stated in the Indenture and those
made part of the  Indenture by reference to the Trust  Indenture Act of 1939, as
in effect from time to time (the "TIA").  The Securities are subject to all such
terms,  and Holders are referred to the Indenture and the TIA for a statement of
those terms.

     The Securities are general  unsecured  obligations.  The Indenture does not
limit other indebtedness of the Company.

7. Redemption at the Option of the Company.

     No sinking fund is provided for the  Securities.  Prior to August 20, 2010,
the Securities  shall not be redeemable at the option of the Company.  Beginning
on August 20, 2010 and until the Stated Maturity,  the Securities are redeemable
for Cash as a whole,  or from time to time in part, at the option of the Company
at the applicable Redemption Price.

     If the Company  redeems less than all of the  outstanding  Securities,  the
Trustee will select the  Securities to be redeemed (i) by lot; (ii) pro rata; or
(iii) by another  method the  Trustee  considers  fair and  appropriate.  If the
Trustee  selects a portion of a Holder's  Securities for partial  redemption and
the Holder  converts a portion of the same  Securities,  the  converted  portion
shall be deemed to be from the portion selected for redemption.

8. Notice of Redemption.

     Notice of  redemption  will be mailed at least 30 days but not more than 60
days before the  Redemption  Date to each Holder of Securities to be redeemed at
the Holder's registered address. If money sufficient to pay the Redemption Price
of all Securities (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Paying Agent prior to or on the Redemption Date,  immediately
after such  Redemption  Date interest  shall cease to accrue and principal  will
cease  to  accrete  on  such  Securities  or  portions  thereof.  Securities  in
denominations  larger than $1,000 Original  Principal  Amount may be redeemed in
part but only in integral multiples of $1,000.

9. Purchase By the Company at the Option of the Holder.

     Each Holder has the right to require the Company to purchase the Securities
held by such Holder on August 15, 2010, 2015 and 2020 (each, a "Purchase Date").
If required  by any Holder,  the Company  shall  purchase  Securities  for Cash,
Common Stock or any  combination  of Cash and Common  Stock at a Purchase  Price
equal to the Accreted  Principal  Amount  thereof,  plus accrued and unpaid cash
interest (including  Contingent Interest and Liquidated Damages, if any) to, but
excluding,  the Purchase Date, upon delivery of a Purchase Notice containing the
information set forth in the Indenture, at any time from the opening of business
on the date that is 20 Business Days prior to such Purchase Date until the close
of business on the Business Day  immediately  preceding  such  Purchase Date and
upon  delivery of the  Securities to the Paying Agent by the Holder as set forth
in the Indenture.

     At the option of the Holder and subject to the terms and  conditions of the
Indenture,  the Company shall purchase for Cash, Common Stock or any combination
of Cash and Common Stock all or a portion of the Securities  held by such Holder
as of the date that is not less than 20 nor more than 35 Business Days after the
date of the  Company's  notice to Holders  of the  occurrence  of a  Fundamental
Change  occurring  prior to Stated  Maturity for a Fundamental  Change  Purchase
Price equal to the Accreted  Principal  Amount thereof,  plus accrued and unpaid
cash interest (including Contingent Interest and Liquidated Damages, if any) to,
but excluding,  the Fundamental  Change Purchase Date,  unless such  Fundamental
Change  Purchase  Date falls after a Regular  Record Date and on or prior to the
corresponding  Interest  Payment  Date,  in which case the Company shall pay the
full amount of accrued and unpaid cash interest  (including  Contingent Interest
and  Liquidated  Damages,  if any) payable on such Interest  Payment Date to the
Holder at the close of business on such Regular Record Date.

     Holders  have the right to  withdraw  any  Purchase  Notice or  Fundamental
Change Purchase Notice,  as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.

     As provided in the Indenture,  if Cash or Common Stock (or any  combination
of Cash and Common Stock)  sufficient to pay the Purchase  Price or  Fundamental
Change Purchase Price, as the case may be, of all Securities or portions thereof
to be purchased as of the Purchase Date or the Fundamental Change Purchase Date,
as the case may be, is deposited  with the Paying Agent on the Purchase  Date or
the  Fundamental  Change  Purchase  Date,  as the  case  may  be,  all  interest
(including  Contingent Interest and Liquidated Damages, if any) ceases to accrue
and  principal  ceases to  accrete  on such  Securities  (or  portions  thereof)
immediately after such Purchase Date or Fundamental Change Purchase Date, as the
case may be, and the Holder  thereof  shall have no other  rights as such (other
than the right to receive the  Purchase  Price or  Fundamental  Change  Purchase
Price, as the case may be, upon surrender of such Security).

10. Conversion.

     Subject to the terms of the Indenture, the Holder of a Security may convert
the  Security  into  shares of Common  Stock at the  Conversion  Rate  under the
circumstances  set forth in Section 11.01 of the Indenture;  provided,  however,
the Company may satisfy its obligation with respect to any demand for conversion
by delivering  Common Stock, Cash or a combination of Cash and Common Stock. The
Conversion Rate for the Securities on any Conversion Date shall be determined as
set forth in the  Indenture.  Upon  conversion of a Security,  the Company shall
deliver the Conversion Settlement Distribution within the time periods set forth
in Section 11.02 of the Indenture.

     A Security in respect of which a Holder has delivered a Purchase  Notice or
a Fundamental  Change  Purchase  Notice  exercising the option of such Holder to
require the Company to purchase  such  Security  may be  converted  only if such
notice of exercise is withdrawn in accordance with the terms of the Indenture.

     The Company shall deliver Cash or a check in lieu of any  fractional  share
of Common Stock.

     A Holder's right to convert the Securities into Common Stock of the Company
is also subject to the Company's right to elect pursuant to Section 11.03 of the
Indenture  to pay such  Holder  Cash in lieu of  delivering  all or part of such
Common Stock.

     A Holder  may  convert a portion of a Security  if the  Original  Principal
Amount of such portion is $1,000 or an integral  multiple of $1,000.  No payment
or adjustment shall be made for dividends on the Common Stock except as provided
in the Indenture. On conversion of a Security,  except for conversion during the
period  from the  close of  business  on any  Regular  Record  Date  immediately
preceding any Interest  Payment Date to the opening of business on such Interest
Payment Date, in which case the Holder on such Regular Record Date shall receive
the interest  payable on such Interest Payment Date, that portion of accrued and
unpaid interest  (including  Contingent  Interest,  if any) and any accretion of
principal on the  converted  Security  attributable  to the period from the most
recent Interest Payment Date (or, if no Interest Payment Date has occurred, from
the Issue Date) through the Conversion Date shall not be cancelled, extinguished
or  forfeited,  but  rather  shall be  deemed  to be paid in full to the  Holder
thereof through delivery of the Common Stock (together with the Cash payment, if
any, in lieu of fractional  shares), or Cash or a combination of Cash and Common
Stock in lieu thereof,  in exchange for the Security being converted pursuant to
the provisions hereof.

     Securities or portions thereof surrendered for conversion during the period
from the close of business on any Regular Record Date immediately  preceding any
Interest  Payment Date to the opening of business on such Interest  Payment Date
shall be  accompanied  by  payment  to the  Company  or its  order,  in New York
Clearing  House funds or other funds  acceptable  to the  Company,  of an amount
equal to the interest  payable on such Interest Payment Date with respect to the
Original  Principal Amount of Securities or portions  thereof being  surrendered
for  conversion;  provided  that no such payment need be made (1) if the Company
has specified a Redemption  Date that occurs during the period from the close of
business on a Regular  Record  Date to the  opening of business on the  Interest
Payment Date to which such Regular  Record Date relates,  (2) if the Company has
specified a  Fundamental  Change  Purchase  Date during  such  period,  (3) with
respect to any Liquidated  Damages payable on such Interest  Payment Date or (4)
if any overdue interest or overdue Contingent  Interest exists on the Conversion
Date with  respect to the  Securities  converted,  to the extent of such overdue
interest.

     No fractional  shares will be issued upon conversion;  in lieu thereof,  an
amount will be paid in Cash pursuant to Section 11.04 of the Indenture.

     The  Company  agrees,  and by  acceptance  of a  beneficial  interest  in a
Security each Holder and any  beneficial  owner of a Security shall be deemed to
agree to be bound (in the absence of an administrative determination or judicial
ruling to the contrary) by the Company's  determination  of the comparable yield
and  projected  payment  schedule  within  the  meaning of the  contingent  debt
regulations,  and accordingly  shall treat, for United States federal income tax
purposes, the fair market value of the Common Stock received upon the conversion
of a Security  (together with any Cash payment in lieu of fractional  shares) or
Cash in lieu thereof,  or a combination of Cash and Common Stock as a contingent
payment on the Security for purposes of Treasury  Regulation Section 1.1275-4 or
any successor provision.

     To convert a Security,  a Holder must fulfill the  conditions  set forth in
Section 11.02 of the Indenture.

     The  Conversion  Rate will be  adjusted  as set forth in  Article 11 of the
Indenture.

11. Denominations; Transfer; Exchange.

     The  Securities  are  in  fully  registered  form,   without  coupons,   in
denominations of $1,000 of Original  Principal Amount and integral  multiples of
$1,000.  A Holder may transfer or exchange  Securities  in  accordance  with the
Indenture.  The Registrar may require a Holder,  among other things,  to furnish
appropriate  endorsements  and transfer  documents and to pay any taxes and fees
required by law or permitted by the  Indenture.  The Registrar need not transfer
or exchange any  Securities  selected for redemption  (except,  in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
or any Securities in respect of which a Purchase  Notice or  Fundamental  Change
Purchase  Notice  has been  given and not  withdrawn  (except,  in the case of a
Security  to be  purchased  in  part,  the  portion  of the  Security  not to be
purchased)  or any  Securities  for a period of 15 days  before the mailing of a
notice of redemption of Securities to be redeemed.

12. Persons Deemed Owners.

     The registered  Holder of this Security may be treated as the owner of this
Security for all purposes.

13. Unclaimed Money or Securities.

     The Trustee and the Paying  Agent shall  return to the Company upon written
request any money or securities  held by them for the payment of any amount with
respect  to the  Securities  that  remains  unclaimed  for two years  subject to
applicable unclaimed property law. After return to the Company, Holders entitled
to the money or  securities  must look to the  Company  for  payment  as general
creditors unless an applicable abandoned property law designates another person.

14. Amendment; Waiver.

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities  may be amended with the written  consent of the Holders of at
least a majority in aggregate Original Principal Amount of the Securities at the
time  outstanding  and (ii)  certain  Defaults  may be waived  with the  written
consent of the Holders of a majority in aggregate  Original  Principal Amount of
the  Securities at the time  outstanding.  The Company and the Trustee may amend
the Indenture under certain circumstances without the consent of the Holders, as
described in the Indenture.

15. Defaults and Remedies.

     If an Event of  Default  occurs  and is  continuing,  the  Trustee,  or the
Holders of at least 25% in aggregate Original Principal Amount of the Securities
then  outstanding,  may  declare  all  the  Securities  to be  due  and  payable
immediately.  Certain  events of bankruptcy or insolvency  are Events of Default
which will result in the Securities  becoming due and payable  immediately  upon
the occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Securities  except as provided
in the  Indenture.  The  Trustee  may refuse to  enforce  the  Indenture  or the
Securities  unless it receives  reasonable  indemnity  or  security.  Subject to
certain  limitations,  Holders of a majority  in  aggregate  Original  Principal
Amount of the Securities at the time  outstanding  may direct the Trustee in its
exercise of any trust or power.  The Trustee may withhold from Holders notice of
any  continuing  Default  (except a Default in payment  on any  Security)  if it
determines that withholding notice is in their interests.

16. Trustee Dealings with the Company.

     Subject to certain  limitations  imposed by the TIA, the Trustee  under the
Indenture,  in its  individual  or any other  capacity,  may become the owner or
pledgee of Securities and may otherwise deal with and collect  obligations  owed
to it by the Company or its  Affiliates  and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others.

     A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any  obligations  of the Company under the Securities
or the  Indenture  or for any claim based on, in respect of or by reason of such
obligations or their creation.  By accepting a Security,  each Holder waives and
releases  all  such   liability.   The  waiver  and  release  are  part  of  the
consideration for the issue of the Securities.

18. Authentication.

     This  Security  shall not be valid  until an  authorized  signatory  of the
Trustee manually signs the Trustee's  Certificate of Authentication on the other
side of this Security.

19. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common),  TEN ENT (=tenants by the entireties),  JT
TEN (=joint  tenants with right of  survivorship  and not as tenants in common),
CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

20. GOVERNING LAW.

     THE LAWS OF THE  STATE OF NEW YORK  SHALL  GOVERN  THE  INDENTURE  AND THIS
SECURITY, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

                       ---------------------------------

     The Company  will  furnish to any Holder upon  written  request and without
charge a copy of the Indenture.

                  DST Systems, Inc.
                  333 West 11th Street
                  Kansas City, MO 64105
                  Attention:  DST Corporate Secretary

<PAGE>

                                                                      Schedule I

<TABLE>
<CAPTION>

                                DST SYSTEMS, INC.
              4.125% Series A Convertible Senior Debenture Due 2023

No. 1

=========== ======================================== ===================================== =========================
                                                     Notation Explaining Original          Authorized Signature of
Date        Original Principal Amount                Principal Amount Recorded             Trustee or Trustee
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</TABLE>

<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

     For value received  ______________________________hereby sell(s), assign(s)
and transfer(s) unto  ___________________________________  (Please insert social
security  or other  Taxpayer  Identification  Number  of  assignee)  the  within
Security,     and    hereby     irrevocably     constitutes     and     appoints
______________________________________ attorney to transfer said Security on the
books of the Company, with full power of substitution in the premises.

     In connection  with any transfer of the Security prior to the expiration of
the holding  period  applicable  to sales  thereof  under Rule 144(k)  under the
Securities Act (or any successor provision),  the undersigned confirms that such
Security is being transferred:

           [  ]     To  DST  Systems,  Inc.  (the  "Company")  or  a  subsidiary
                    thereof; or

           [  ]     To a "qualified institutional buyer" in compliance with Rule
                    144A under the Securities Act of 1933, as amended; or

           [  ]     Pursuant to a Registration Statement which has been declared
                    effective under the Securities Act of 1933, as amended,  and
                    which continues to be effective at the time of transfer; or

           [  ]     Pursuant  to  and  in  compliance  with  another   available
                    exemption  from  the   registration   requirements   of  the
                    Securities Act of 1933, as amended.

     Unless one of the boxes is checked, the Trustee or Registrar will refuse to
register any of the Securities  evidenced by this certificate in the name of any
person other than the registered holder thereof.

Dated: ______________________

                                  -----------------------------

                                  -----------------------------
                                  Signature(s)

                    Signature(s)  must be guaranteed  by an "eligible  guarantor
                    institution"   meeting  the  requirements  of  the  Security
                    registrar,   which   requirements   include   membership  or
                    participation  in  the  Security  Transfer  Agent  Medallion
                    Program   ("STAMP")  or  such  other  "signature   guarantee
                    program" as may be determined  by the Security  registrar in
                    addition  to,  or  in  substitution   for,  STAMP,   all  in
                    accordance  with the  Securities  Exchange  Act of 1934,  as
                    amended.

                                  ------------------------------
                                  Signature Guarantee

<PAGE>

                                CONVERSION NOTICE

To convert this Security pursuant to Article 11 of the Indenture, check the box:

To convert only part of this Security, state the Original Principal Amount to be
converted  (which  must  be  $1,000  or  an  integral  multiple  of  $1,000):  $
___________________________

If you want the stock certificate made out in another person's name, fill in the
form below:

--------------------------------------------------------------------------------
                 (Insert other person's soc. sec. or tax ID no.)

--------------------------------------------------------------------------------
            (Print or type other person's name, address and zip code)

Your
Signature: _____________________________________________

(Sign exactly as your name appears on the other side of this Security)

--------------------------------------------------------------------------------

<PAGE>

                                 PURCHASE NOTICE

             4.125% Series A Convertible Senior Debentures due 2023

TO:      DST SYSTEMS, INC.
         JPMORGAN CHASE BANK

     The  undersigned  registered  owner  of  this  Series  A  Debenture  hereby
irrevocably  acknowledges  receipt  of a notice  from  DST  Systems,  Inc.  (the
"Company")  regarding  the right of holders to elect to require  the  Company to
purchase the  Securities  and requests and instructs the Company to purchase the
entire Original Principal Amount of this Security,  or portion thereof (which is
$1,000 Original  Principal Amount or an integral  multiple  thereof)  designated
below, in accordance with the terms of the Indenture at the price of 100% of the
Accreted Principal Amount or proportional portion thereof, together with accrued
cash interest (including Contingent Interest and Liquidated Damages, if any) to,
but excluding,  the Purchase Date, to the registered holder hereof.  Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the  Indenture.  The  Securities  shall be purchased by the Company as of the
applicable  Purchase Date pursuant to the terms and conditions  specified in the
Indenture.  This election is made pursuant to: Article 12, Purchase at Option of
Holders.

     Dated:

     Signature(s):

     NOTICE:  The above  signatures of the holder(s) hereof must correspond with
the name as written  upon the face of the Security in every  particular  without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original   Principal   Amount  to  be   purchased   (if  less  than   all):
$_____________________.

     In  the  event  the  Company  elects,  pursuant  to  Section  12.03  of the
Indenture,  to pay the Purchase  Price, in whole or in part, in shares of Common
Stock but such portion of the Purchase  Price shall  ultimately  be paid to such
Holder entirely in Cash because any of the conditions to payment of the Purchase
Price in shares of Common Stock is not  satisfied  prior to 5:00 p.m.,  New York
City time, on the Business Day  immediately  preceding the Purchase Date, as set
forth in Section 12.03 of the Indenture, I hereby elect to:

     [ ] withdraw this Purchase Notice as to $____________ in Original Principal
Amount    of    Securities    with   the    following    certificate    numbers:
________________________________ to which this Purchase Notice relates;

     [ ] receive Cash in respect of the entire Purchase Price for all Securities
(or portions thereof) to which this Purchase Notice relates.

<PAGE>

            OPTION OF HOLDER TO ELECT PURCHASE ON FUNDAMENTAL CHANGE

             4.125% Series A Convertible Senior Debentures due 2023

TO:      DST SYSTEMS, INC.
         JPMORGAN CHASE BANK

     The  undersigned  registered  owner  of  this  Series  A  Debenture  hereby
irrevocably  acknowledges  receipt  of a notice  from  DST  Systems,  Inc.  (the
"Company")  regarding  the right of holders to elect to require  the  Company to
purchase the Securities upon a Fundamental Change and requests and instructs the
Company  pursuant to Section  13.01 to purchase  the entire  Original  Principal
Amount of this Security,  or portion thereof (which is $1,000 Original Principal
Amount or an integral multiple thereof) designated below, in accordance with the
terms  of the  Indenture  at the  price  of the  Accreted  Principal  Amount  or
proportional  portion  thereof,  together with accrued cash interest  (including
Contingent  Interest and  Liquidated  Damages,  if any) to, but  excluding,  the
Fundamental  Change Purchase Date, to the registered holder hereof.  Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the  Indenture.  The  Securities  shall be purchased by the Company as of the
Fundamental Change Purchase Date pursuant to the terms and conditions  specified
in the Indenture.

     Dated:

     Signature(s):

     NOTICE:  The above  signatures of the holder(s) hereof must correspond with
the name as written  upon the face of the Security in every  particular  without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original   Principal   Amount  to  be   purchased   (if  less  than   all):
$_____________________.

     In  the  event  the  Company  elects,  pursuant  to  Section  13.02  of the
Indenture, to pay the Fundamental Change Purchase Price, in whole or in part, in
shares of Common Stock but such portion of the Fundamental Change Purchase Price
shall  ultimately  be paid to such Holder  entirely  in Cash  because any of the
conditions  to payment of the  Fundamental  Change  Purchase  Price in shares of
Common Stock is not  satisfied  prior to 5:00 p.m.,  New York City time,  on the
Business Day  immediately  preceding the Purchase  Date, as set forth in Section
13.02 of the Indenture, I hereby elect to:

     [ ] withdraw this Fundamental Change Purchase Notice as to $____________ in
Original   Principal  Amount  of  Securities  with  the  following   certificate
numbers:________________________________   to  which  this  Fundamental   Change
Purchase Notice relates;

     [ ] receive Cash in respect of the entire Fundamental Change Purchase Price
for all  Securities  (or  portions  thereof)  to which this  Fundamental  Change
Purchase Notice relates.EXHIBIT 4.3

     FOR PURPOSES OF SECTIONS 1272,  1273 AND 1275 OF THE INTERNAL  REVENUE CODE
OF 1986,  AS AMENDED,  THIS  DEBENTURE IS BEING  ISSUED WITH TAX ORIGINAL  ISSUE
DISCOUNT AND THE ISSUE DATE OF THIS  DEBENTURE IS AUGUST 12, 2003.  IN ADDITION,
THIS DEBENTURE IS SUBJECT TO THE UNITED STATES  FEDERAL  INCOME TAX  REGULATIONS
GOVERNING  CONTINGENT  PAYMENT DEBT INSTRUMENTS.  FOR PURPOSES OF SECTIONS 1272,
1273  AND  1275 OF THE  INTERNAL  REVENUE  CODE,  THE  COMPARABLE  YIELD OF THIS
DEBENTURE IS 8.4%,  COMPOUNDED  SEMIANNUALLY (WHICH WILL BE TREATED AS THE YIELD
TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES).

     DST SYSTEMS,  INC. (THE  "COMPANY")  AGREES,  AND BY ACCEPTING A BENEFICIAL
OWNERSHIP  INTEREST IN THIS DEBENTURE  EACH HOLDER AND ANY  BENEFICIAL  OWNER OF
THIS DEBENTURE  WILL BE DEEMED TO HAVE AGREED,  FOR UNITED STATES FEDERAL INCOME
TAX PURPOSES (1) TO TREAT THIS DEBENTURE AS A DEBT INSTRUMENT THAT IS SUBJECT TO
U.S. TREAS. REG. SEC. 1.1275-4 OR ANY SUCCESSOR  PROVISION (THE "CONTINGENT DEBT
REGULATIONS")  AND  (2)  TO BE  BOUND  (IN  THE  ABSENCE  OF  AN  ADMINISTRATIVE
DETERMINATION OR JUDICIAL RULING TO THE CONTRARY) BY THE COMPANY'S DETERMINATION
OF THE "COMPARABLE YIELD" AND "PROJECTED PAYMENT SCHEDULE" WITHIN THE MEANING OF
THE CONTINGENT DEBT  REGULATIONS,  WITH RESPECT TO THIS  DEBENTURE.  THE COMPANY
AGREES TO  PROVIDE  PROMPTLY  TO THE  HOLDER  OF THIS  DEBENTURE,  UPON  WRITTEN
REQUEST,  THE ISSUE PRICE,  AMOUNT OF TAX ORIGINAL ISSUE  DISCOUNT,  ISSUE DATE,
YIELD TO MATURITY,  COMPARABLE YIELD AND PROJECTED  PAYMENT  SCHEDULE.  ANY SUCH
WRITTEN  REQUEST  SHOULD BE SENT TO THE COMPANY AT THE  FOLLOWING  ADDRESS:  DST
SYSTEMS, INC., 333 West 11th Street, Kansas City, Missouri 64105, ATTENTION: DST
CORPORATE SECRETARY.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY  TRUST  COMPANY  TO THE  ISSUER  OR ITS  AGENT  FOR  REGISTRATION  OF
TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF THE DEPOSITORY  TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY),  ANY TRANSFER,  PLEDGE OR OTHER
USE HEREOF FOR VALUE OR  OTHERWISE  BY OR TO ANY  PERSON IS  WRONGFUL  SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL  DEBENTURE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY,  OR TO A SUCCESSOR
THEREOF OR SUCH  SUCCESSOR'S  NOMINEE AND  TRANSFERS  OF PORTIONS OF THIS GLOBAL
DEBENTURE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     THIS  DEBENTURE AND ANY COMMON STOCK  ISSUABLE UPON THE  CONVERSION OF THIS
DEBENTURE  HAVE NOT BEEN  REGISTERED  UNDER THE U.S.  SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD OR OTHERWISE  TRANSFERRED IN
THE ABSENCE OF SUCH  REGISTRATION  OR AN APPLICABLE  EXEMPTION  THEREFROM.  EACH
PURCHASER OF THIS DEBENTURE IS HEREBY NOTIFIED THAT THE SELLER OF THIS DEBENTURE
MAY BE  RELYING  ON THE  EXEMPTION  FROM  THE  PROVISIONS  OF  SECTION  5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

     THIS  DEBENTURE AND ANY COMMON STOCK  ISSUABLE UPON THE  CONVERSION OF THIS
DEBENTURE MAY NOT BE OFFERED,  SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1)
TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER"  WITHIN THE MEANING OF RULE 144A UNDER THE  SECURITIES  ACT ACQUIRING FOR
ITS OWN  ACCOUNT OR FOR THE  ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER IN A
TRANSACTION  MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION
FROM  REGISTRATION  UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE),  (3) TO DST SYSTEMS,  INC. OR ANY SUBSIDIARY THEREOF OR (4) PURSUANT
TO AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES  ACT, AND IN EACH
CASE IN  ACCORDANCE  WITH ALL  APPLICABLE  SECURITIES  LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

     THIS DEBENTURE, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND
ANY RELATED  DOCUMENTATION  MAY BE AMENDED OR SUPPLEMENTED  FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS DEBENTURE AND ANY
SUCH  SHARES TO  REFLECT  ANY CHANGE IN  APPLICABLE  LAW OR  REGULATION  (OR THE
INTERPRETATION  THEREOF) OR IN  PRACTICES  RELATING TO THE RESALE OR TRANSFER OF
RESTRICTED  SECURITIES  GENERALLY.  THE HOLDER OF THIS DEBENTURE AND SUCH SHARES
SHALL BE DEEMED BY THE  ACCEPTANCE OF THIS DEBENTURE AND ANY SUCH SHARES TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

<PAGE>

                                DST SYSTEMS, INC.

             4.125% Series A Convertible Senior Debentures due 2023

No. 2                                    Original Principal Amount:  $40,000,000
Issue Date: August 12, 2003                                   CUSIP: 233326 AA 5

     DST  SYSTEMS,  INC.,  a Delaware  corporation  (the  "Company"),  for value
received,  hereby  promises to pay to Cede & Co.,  or  registered  assigns,  the
Accreted  Principal  Amount (as  defined  in the  Indenture  referred  to on the
reverse side of this Security) on August 15, 2023.

     This Security  shall bear regular cash interest and the Original  Principal
Amount (as defined in the Indenture) of this Security shall accrete as specified
on the reverse side of this Security and in the Indenture.  Contingent Interest,
if any, on this  Security,  will be payable as  specified on the reverse side of
this Security and in the Indenture. This Security is convertible,  is subject to
redemption  at the option of the Company or purchase at the option of the Holder
hereof,  all as  specified  on the  reverse  side  of this  Security  and in the
Indenture.

     Reference  is hereby made to the further  provisions  of this  Security set
forth on the reverse  hereof,  which further  provisions  shall for all purposes
have the same effect as if set forth at this place.

<PAGE>

     IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be duly
executed.

                                  DST SYSTEMS, INC.

                                  By:       /s/ Gregg Wm. Givens
                                            ------------------------------------
                                            Name:   Gregg Wm. Givens
                                            Title:  VP & CAO

                                  By:       /s/ Thomas A. McCullough
                                            ------------------------------------
                                            Name:
                                            Title:  C.O.O.

<PAGE>

            TRUSTEE'S CERTIFICATE OF AUTHENTICATION

JPMORGAN CHASE BANK, as Trustee,
certifies that this is one of the Securities referred
to in the within-mentioned Indenture.

By: /s/ Carol Ng
   ------------------------------------------------
     Authorized Officer

Dated:  August 12, 2003
        ----------------

<PAGE>

             4.125% Series A Convertible Senior Debentures due 2023

     This  Security  is one of a duly  authorized  issue  of  securities  of the
Company (herein called the "Securities") limited in aggregate Original Principal
Amount to  $40,000,000  Original  Principal  Amount,  issued under an Indenture,
dated as of August 12, 2003 (the "Indenture"),  between the Company and JPMorgan
Chase Bank, as Trustee (the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective  rights,  limitations
of rights,  duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities  and of the terms upon which the  Securities  are, and
are to be, authenticated and delivered. Capitalized terms used and not otherwise
defined in this Security are used as defined in the Indenture.

1. Interest.

     This  Security  will bear  interest  from  August 12, 2003 or from the most
recent date to which interest has been paid or duly provided for,  semi-annually
in arrears on February 15 and August 15 of each year (each, an "Interest Payment
Date"), subject to Section 1.08 of the Indenture,  commencing February 15, 2004,
at the rate per  annum  equal to  4.125%,  to but  excluding  August  15,  2010.
Interest on this  Security  shall be  calculated  on the basis of a 360-day year
composed  of twelve  30-day  months.  Interest  payable on this  Security on any
Interest  Payment  Date will  include  interest  for the  immediately  preceding
Interest  Period.  The interest so payable and punctually  paid or duly provided
for on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this Security (or one or more  Predecessor  Securities)
is  registered  at the close of  business  on the  Regular  Record Date for such
interest,  which  shall  be the  February  1 or  August  1, as the  case may be,
immediately  preceding the relevant Interest Payment Date. Any interest which is
payable,  but is not  punctually  paid or duly  provided  for,  on any  Interest
Payment Date shall forthwith cease to be payable to the registered Holder hereof
on the relevant  Regular  Record Date by virtue of having been such Holder,  and
may be  paid  to the  Person  in  whose  name  this  Security  (or  one or  more
Predecessor  Securities)  is  registered  at the close of  business on a Special
Record  Date  for the  payment  of such  Defaulted  Interest  to be fixed by the
Company,  notice  whereof shall be given to the Holders of  Securities  not less
than 10 days prior to such Special  Record  Date,  or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities  may be listed,  and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

     From and after August 15,  2010,  the Company will no longer be required to
pay cash interest.  The Original Principal Amount of this Security shall accrete
daily at the  Applicable  Yield on a semiannual  bond  equivalent  basis using a
360-day year composed of twelve 30-day months.  The Applicable Yield shall be 0%
prior to August 15, 2010 and 4.125% per annum on and after April 15, 2010, until
Stated Maturity.  At Stated  Maturity,  the Holder of this Security will receive
$1,700.28 for each $1,000 Original Principal Amount of Securities,  which is the
fully  Accreted  Principal  Amount of this  Security  on such  date,  unless the
Security has been earlier redeemed, purchased or converted.

2. Contingent Interest.

     From and after August 20, 2010, the Company will pay Contingent Interest on
this Security under the circumstances and in the amounts described in Article 14
of  the  Indenture.   Such  Contingent  Interest,   if  any,  shall  be  payable
semiannually  in arrears  on each  Interest  Payment  Date to the Holder of this
Security as of the close of business on the Regular Record Date relating to such
Interest Payment Date.

3. Interest on Overdue Amounts.

     If the Accreted  Principal  Amount  hereof or any portion of such  Accreted
Principal  Amount is not paid when due (whether  upon  acceleration  pursuant to
Section 4.02 of the Indenture,  upon the dates set for payment of the Redemption
Price,  Purchase Price or Fundamental  Change Purchase Price, or upon the Stated
Maturity of this  Security)  or if  interest  due hereon  (including  Contingent
Interest and Liquidated Damages,  if any) (or any portion of such interest),  is
not paid when  due,  then in each such case the  overdue  amount  shall,  to the
extent  permitted by law,  bear interest at the rate then borne by this Security
or, if any overdue  amount exists on or after August 15, 2010, at the Applicable
Yield of this  Security,  which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including interest
thereon,  has been made or duly provided for. All such interest shall be payable
as set forth in the Indenture.

4. Method of Payment.

     Subject to the terms and conditions of the Indenture, the Company will make
payments in respect of Redemption  Price,  Purchase  Price,  Fundamental  Change
Purchase Price and at Stated  Maturity to Holders who surrender  Securities to a
Paying Agent to collect such payments in respect of the Securities.  The Company
will pay cash amounts in money of the United  States that at the time of payment
is legal tender for payment of public and private  debts.  However,  the Company
may make such cash  payments  by check  payable  in such  money;  provided  that
payment by wire transfer of  immediately  available  funds will be required with
respect  to  principal  of  and  interest  (including  Contingent  Interest  and
Liquidated  Damages,  if any) on all Global  Securities  and all  Securities  of
Holders  of  more  than  $25,000,000  aggregate  Original  Principal  Amount  of
Securities that have requested such method of payment and provided wire transfer
instructions  to the Company or the Paying Agent.  If any Interest  Payment Date
(other than an Interest  Payment  Date  coinciding  with the Stated  Maturity or
earlier  Redemption  Date,  Purchase Date, or Fundamental  Change Purchase Date)
falls on a day that is not a Business Day,  such  Interest  Payment Date will be
postponed  to the next  succeeding  Business Day and no interest on such payment
will accrue for the period from and after the Interest Payment Date to such next
succeeding  Business Day,  provided that, if such Business Day falls in the next
succeeding  calendar month,  the Interest  Payment Date will be the Business Day
immediately  preceding  such  Interest  Payment  Date.  If the Stated  Maturity,
Redemption  Date,  Purchase  Date or  Fundamental  Change  Purchase Date of this
Security would fall on a day that is not a Business Day, the required payment of
interest, if any, and principal will be made on the next succeeding Business Day
and no interest on such payment  will accrue and no  principal  will accrete for
the period from and after the Stated Maturity, Redemption Date, Purchase Date or
Fundamental Change Purchase Date to such next succeeding Business Day.

5. Paying Agent, Conversion Agent and Registrar.

     Initially,  the  Trustee  will act as Paying  Agent,  Conversion  Agent and
Registrar.  The  Company may  appoint  and change any Paying  Agent,  Conversion
Agent,  Registrar  or  co-registrar  without  notice,  other than  notice to the
Trustee.  The Company or any of its  Subsidiaries or any of their Affiliates may
act as Paying Agent, Conversion Agent, Registrar or co-registrar.

6. Indenture.

     The terms of the Securities include those stated in the Indenture and those
made part of the  Indenture by reference to the Trust  Indenture Act of 1939, as
in effect from time to time (the "TIA").  The Securities are subject to all such
terms,  and Holders are referred to the Indenture and the TIA for a statement of
those terms.

     The Securities are general  unsecured  obligations.  The Indenture does not
limit other indebtedness of the Company.

7. Redemption at the Option of the Company.

     No sinking fund is provided for the  Securities.  Prior to August 20, 2010,
the Securities  shall not be redeemable at the option of the Company.  Beginning
on August 20, 2010 and until the Stated Maturity,  the Securities are redeemable
for Cash as a whole,  or from time to time in part, at the option of the Company
at the applicable Redemption Price.

     If the Company  redeems less than all of the  outstanding  Securities,  the
Trustee will select the  Securities to be redeemed (i) by lot; (ii) pro rata; or
(iii) by another  method the  Trustee  considers  fair and  appropriate.  If the
Trustee  selects a portion of a Holder's  Securities for partial  redemption and
the Holder  converts a portion of the same  Securities,  the  converted  portion
shall be deemed to be from the portion selected for redemption.

8. Notice of Redemption.

     Notice of  redemption  will be mailed at least 30 days but not more than 60
days before the  Redemption  Date to each Holder of Securities to be redeemed at
the Holder's registered address. If money sufficient to pay the Redemption Price
of all Securities (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Paying Agent prior to or on the Redemption Date,  immediately
after such  Redemption  Date interest  shall cease to accrue and principal  will
cease  to  accrete  on  such  Securities  or  portions  thereof.  Securities  in
denominations  larger than $1,000 Original  Principal  Amount may be redeemed in
part but only in integral multiples of $1,000.

9. Purchase By the Company at the Option of the Holder.

     Each Holder has the right to require the Company to purchase the Securities
held by such Holder on August 15, 2010, 2015 and 2020 (each, a "Purchase Date").
If required  by any Holder,  the Company  shall  purchase  Securities  for Cash,
Common Stock or any  combination  of Cash and Common  Stock at a Purchase  Price
equal to the Accreted  Principal  Amount  thereof,  plus accrued and unpaid cash
interest (including  Contingent Interest and Liquidated Damages, if any) to, but
excluding,  the Purchase Date, upon delivery of a Purchase Notice containing the
information set forth in the Indenture, at any time from the opening of business
on the date that is 20 Business Days prior to such Purchase Date until the close
of business on the Business Day  immediately  preceding  such  Purchase Date and
upon  delivery of the  Securities to the Paying Agent by the Holder as set forth
in the Indenture.

     At the option of the Holder and subject to the terms and  conditions of the
Indenture,  the Company shall purchase for Cash, Common Stock or any combination
of Cash and Common Stock all or a portion of the Securities  held by such Holder
as of the date that is not less than 20 nor more than 35 Business Days after the
date of the  Company's  notice to Holders  of the  occurrence  of a  Fundamental
Change  occurring  prior to Stated  Maturity for a Fundamental  Change  Purchase
Price equal to the Accreted  Principal  Amount thereof,  plus accrued and unpaid
cash interest (including Contingent Interest and Liquidated Damages, if any) to,
but excluding,  the Fundamental  Change Purchase Date,  unless such  Fundamental
Change  Purchase  Date falls after a Regular  Record Date and on or prior to the
corresponding  Interest  Payment  Date,  in which case the Company shall pay the
full amount of accrued and unpaid cash interest  (including  Contingent Interest
and  Liquidated  Damages,  if any) payable on such Interest  Payment Date to the
Holder at the close of business on such Regular Record Date.

     Holders  have the right to  withdraw  any  Purchase  Notice or  Fundamental
Change Purchase Notice,  as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.

     As provided in the Indenture,  if Cash or Common Stock (or any  combination
of Cash and Common Stock)  sufficient to pay the Purchase  Price or  Fundamental
Change Purchase Price, as the case may be, of all Securities or portions thereof
to be purchased as of the Purchase Date or the Fundamental Change Purchase Date,
as the case may be, is deposited  with the Paying Agent on the Purchase  Date or
the  Fundamental  Change  Purchase  Date,  as the  case  may  be,  all  interest
(including  Contingent Interest and Liquidated Damages, if any) ceases to accrue
and  principal  ceases to  accrete  on such  Securities  (or  portions  thereof)
immediately after such Purchase Date or Fundamental Change Purchase Date, as the
case may be, and the Holder  thereof  shall have no other  rights as such (other
than the right to receive the  Purchase  Price or  Fundamental  Change  Purchase
Price, as the case may be, upon surrender of such Security).

10. Conversion.

     Subject to the terms of the Indenture, the Holder of a Security may convert
the  Security  into  shares of Common  Stock at the  Conversion  Rate  under the
circumstances  set forth in Section 11.01 of the Indenture;  provided,  however,
the Company may satisfy its obligation with respect to any demand for conversion
by delivering  Common Stock, Cash or a combination of Cash and Common Stock. The
Conversion Rate for the Securities on any Conversion Date shall be determined as
set forth in the  Indenture.  Upon  conversion of a Security,  the Company shall
deliver the Conversion Settlement Distribution within the time periods set forth
in Section 11.02 of the Indenture.

     A Security in respect of which a Holder has delivered a Purchase  Notice or
a Fundamental  Change  Purchase  Notice  exercising the option of such Holder to
require the Company to purchase  such  Security  may be  converted  only if such
notice of exercise is withdrawn in accordance with the terms of the Indenture.

     The Company shall deliver Cash or a check in lieu of any  fractional  share
of Common Stock.

     A Holder's right to convert the Securities into Common Stock of the Company
is also subject to the Company's right to elect pursuant to Section 11.03 of the
Indenture  to pay such  Holder  Cash in lieu of  delivering  all or part of such
Common Stock.

     A Holder  may  convert a portion of a Security  if the  Original  Principal
Amount of such portion is $1,000 or an integral  multiple of $1,000.  No payment
or adjustment shall be made for dividends on the Common Stock except as provided
in the Indenture. On conversion of a Security,  except for conversion during the
period  from the  close of  business  on any  Regular  Record  Date  immediately
preceding any Interest  Payment Date to the opening of business on such Interest
Payment Date, in which case the Holder on such Regular Record Date shall receive
the interest  payable on such Interest Payment Date, that portion of accrued and
unpaid interest  (including  Contingent  Interest,  if any) and any accretion of
principal on the  converted  Security  attributable  to the period from the most
recent Interest Payment Date (or, if no Interest Payment Date has occurred, from
the Issue Date) through the Conversion Date shall not be cancelled, extinguished
or  forfeited,  but  rather  shall be  deemed  to be paid in full to the  Holder
thereof through delivery of the Common Stock (together with the Cash payment, if
any, in lieu of fractional  shares), or Cash or a combination of Cash and Common
Stock in lieu thereof,  in exchange for the Security being converted pursuant to
the provisions hereof.

     Securities or portions thereof surrendered for conversion during the period
from the close of business on any Regular Record Date immediately  preceding any
Interest  Payment Date to the opening of business on such Interest  Payment Date
shall be  accompanied  by  payment  to the  Company  or its  order,  in New York
Clearing  House funds or other funds  acceptable  to the  Company,  of an amount
equal to the interest  payable on such Interest Payment Date with respect to the
Original  Principal Amount of Securities or portions  thereof being  surrendered
for  conversion;  provided  that no such payment need be made (1) if the Company
has specified a Redemption  Date that occurs during the period from the close of
business on a Regular  Record  Date to the  opening of business on the  Interest
Payment Date to which such Regular  Record Date relates,  (2) if the Company has
specified a  Fundamental  Change  Purchase  Date during  such  period,  (3) with
respect to any Liquidated  Damages payable on such Interest  Payment Date or (4)
if any overdue interest or overdue Contingent  Interest exists on the Conversion
Date with  respect to the  Securities  converted,  to the extent of such overdue
interest.

     No fractional  shares will be issued upon conversion;  in lieu thereof,  an
amount will be paid in Cash pursuant to Section 11.04 of the Indenture.

         The Company agrees, and by acceptance of a beneficial interest in a
Security each Holder and any beneficial owner of a Security shall be deemed to
agree to be bound (in the absence of an administrative determination or judicial
ruling to the contrary) by the Company's determination of the comparable yield
and projected payment schedule within the meaning of the contingent debt
regulations, and accordingly shall treat, for United States federal income tax
purposes, the fair market value of the Common Stock received upon the conversion
of a Security (together with any Cash payment in lieu of fractional shares) or
Cash in lieu thereof, or a combination of Cash and Common Stock as a contingent
payment on the Security for purposes of Treasury Regulation Section 1.1275-4 or
any successor provision.

     To convert a Security,  a Holder must fulfill the  conditions  set forth in
Section 11.02 of the Indenture.

         The Conversion Rate will be adjusted as set forth in Article 11 of the
Indenture.

11. Denominations; Transfer; Exchange.

     The  Securities  are  in  fully  registered  form,   without  coupons,   in
denominations of $1,000 of Original  Principal Amount and integral  multiples of
$1,000.  A Holder may transfer or exchange  Securities  in  accordance  with the
Indenture.  The Registrar may require a Holder,  among other things,  to furnish
appropriate  endorsements  and transfer  documents and to pay any taxes and fees
required by law or permitted by the  Indenture.  The Registrar need not transfer
or exchange any  Securities  selected for redemption  (except,  in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
or any Securities in respect of which a Purchase  Notice or  Fundamental  Change
Purchase  Notice  has been  given and not  withdrawn  (except,  in the case of a
Security  to be  purchased  in  part,  the  portion  of the  Security  not to be
purchased)  or any  Securities  for a period of 15 days  before the mailing of a
notice of redemption of Securities to be redeemed.

12. Persons Deemed Owners.

     The registered  Holder of this Security may be treated as the owner of this
Security for all purposes.

13. Unclaimed Money or Securities.

     The Trustee and the Paying  Agent shall  return to the Company upon written
request any money or securities  held by them for the payment of any amount with
respect  to the  Securities  that  remains  unclaimed  for two years  subject to
applicable unclaimed property law. After return to the Company, Holders entitled
to the money or  securities  must look to the  Company  for  payment  as general
creditors unless an applicable abandoned property law designates another person.

14. Amendment; Waiver.

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities  may be amended with the written  consent of the Holders of at
least a majority in aggregate Original Principal Amount of the Securities at the
time  outstanding  and (ii)  certain  Defaults  may be waived  with the  written
consent of the Holders of a majority in aggregate  Original  Principal Amount of
the  Securities at the time  outstanding.  The Company and the Trustee may amend
the Indenture under certain circumstances without the consent of the Holders, as
described in the Indenture.

15. Defaults and Remedies.

     If an Event of  Default  occurs  and is  continuing,  the  Trustee,  or the
Holders of at least 25% in aggregate Original Principal Amount of the Securities
then  outstanding,  may  declare  all  the  Securities  to be  due  and  payable
immediately.  Certain  events of bankruptcy or insolvency  are Events of Default
which will result in the Securities  becoming due and payable  immediately  upon
the occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Securities  except as provided
in the  Indenture.  The  Trustee  may refuse to  enforce  the  Indenture  or the
Securities  unless it receives  reasonable  indemnity  or  security.  Subject to
certain  limitations,  Holders of a majority  in  aggregate  Original  Principal
Amount of the Securities at the time  outstanding  may direct the Trustee in its
exercise of any trust or power.  The Trustee may withhold from Holders notice of
any  continuing  Default  (except a Default in payment  on any  Security)  if it
determines that withholding notice is in their interests.

16. Trustee Dealings with the Company.

     Subject to certain  limitations  imposed by the TIA, the Trustee  under the
Indenture,  in its  individual  or any other  capacity,  may become the owner or
pledgee of Securities and may otherwise deal with and collect  obligations  owed
to it by the Company or its  Affiliates  and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others.

     A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any  obligations  of the Company under the Securities
or the  Indenture  or for any claim based on, in respect of or by reason of such
obligations or their creation.  By accepting a Security,  each Holder waives and
releases  all  such   liability.   The  waiver  and  release  are  part  of  the
consideration for the issue of the Securities.

18. Authentication.

     This  Security  shall not be valid  until an  authorized  signatory  of the
Trustee manually signs the Trustee's  Certificate of Authentication on the other
side of this Security.

19. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common),  TEN ENT (=tenants by the entireties),  JT
TEN (=joint  tenants with right of  survivorship  and not as tenants in common),
CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

20.      GOVERNING LAW.

         THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
SECURITY, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

                          ----------------------------

     The Company  will  furnish to any Holder upon  written  request and without
charge a copy of the Indenture.

                  DST Systems, Inc.
                  333 West 11th Street
                  Kansas City, MO 64105
                  Attention:  DST Corporate Secretary

<PAGE>

                                                                     Schedule I
<TABLE>
<CAPTION>

                                DST SYSTEMS, INC.
              4.125% Series A Convertible Senior Debenture Due 2023

No. 2

=========== ======================================== ===================================== =========================
                                                     Notation Explaining Original          Authorized Signature of
Date        Original Principal Amount                Principal Amount Recorded             Trustee or Trustee
          <c>                                     <c>                                   <c>
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</TABLE>

<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

     For value received  ______________________________hereby sell(s), assign(s)
and transfer(s) unto  ___________________________________  (Please insert social
security  or other  Taxpayer  Identification  Number  of  assignee)  the  within
Security,     and    hereby     irrevocably     constitutes     and     appoints
______________________________________ attorney to transfer said Security on the
books of the Company, with full power of substitution in the premises.

     In connection  with any transfer of the Security prior to the expiration of
the holding  period  applicable  to sales  thereof  under Rule 144(k)  under the
Securities Act (or any successor provision),  the undersigned confirms that such
Security is being transferred:

           [  ]     To  DST  Systems,  Inc.  (the  "Company")  or  a  subsidiary
                    thereof; or

           [  ]     To a "qualified institutional buyer" in compliance with Rule
                    144A under the Securities Act of 1933, as amended; or

           [  ]     Pursuant to a Registration Statement which has been declared
                    effective under the Securities Act of 1933, as amended,  and
                    which continues to be effective at the time of transfer; or

           [  ]    Pursuant  to  and  in  compliance  with  another   available
                    exemption  from  the   registration   requirements   of  the
                    Securities Act of 1933, as amended.

     Unless one of the boxes is checked, the Trustee or Registrar will refuse to
register any of the Securities  evidenced by this certificate in the name of any
person other than the registered holder thereof.

Dated: ______________________

                                  ------------------------------

                                  ------------------------------
                                  Signature(s)

                    Signature(s)  must be guaranteed  by an "eligible  guarantor
                    institution"   meeting  the  requirements  of  the  Security
                    registrar,   which   requirements   include   membership  or
                    participation  in  the  Security  Transfer  Agent  Medallion
                    Program   ("STAMP")  or  such  other  "signature   guarantee
                    program" as may be determined  by the Security  registrar in
                    addition  to,  or  in  substitution   for,  STAMP,   all  in
                    accordance  with the  Securities  Exchange  Act of 1934,  as
                    amended.

                                   ------------------------------
                                   Signature Guarantee

<PAGE>

                                CONVERSION NOTICE

To convert this Security pursuant to Article 11 of the Indenture, check the box:

To convert only part of this Security, state the Original Principal Amount to be
converted  (which  must  be  $1,000  or  an  integral  multiple  of  $1,000):  $
___________________________

If you want the stock certificate made out in another person's name, fill in the
form below:

-------------------------------------------------------------------------------
                 (Insert other person's soc. sec. or tax ID no.)

--------------------------------------------------------------------------------
            (Print or type other person's name, address and zip code)

Your
Signature: _____________________________________________

(Sign exactly as your name appears on the other side of this Security)

<PAGE>

                                 PURCHASE NOTICE

             4.125% Series A Convertible Senior Debentures due 2023

TO:      DST SYSTEMS, INC.
         JPMORGAN CHASE BANK

     The  undersigned  registered  owner  of  this  Series  A  Debenture  hereby
irrevocably  acknowledges  receipt  of a notice  from  DST  Systems,  Inc.  (the
"Company")  regarding  the right of holders to elect to require  the  Company to
purchase the  Securities  and requests and instructs the Company to purchase the
entire Original Principal Amount of this Security,  or portion thereof (which is
$1,000 Original  Principal Amount or an integral  multiple  thereof)  designated
below,  in  accordance  with the  terms  of the  Indenture  at the  price of the
Accreted Principal Amount or proportional portion thereof, together with accrued
cash interest (including Contingent Interest and Liquidated Damages, if any) to,
but excluding,  the Purchase Date, to the registered holder hereof.  Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the  Indenture.  The  Securities  shall be purchased by the Company as of the
applicable  Purchase Date pursuant to the terms and conditions  specified in the
Indenture.  This election is made pursuant to: Article 12, Purchase at Option of
Holders.

     Dated:

     Signature(s):

     NOTICE:  The above  signatures of the holder(s) hereof must correspond with
the name as written  upon the face of the Security in every  particular  without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original   Principal   Amount  to  be   purchased   (if  less  than   all):
$_____________________.

     In  the  event  the  Company  elects,  pursuant  to  Section  12.03  of the
Indenture,  to pay the Purchase  Price, in whole or in part, in shares of Common
Stock but such portion of the Purchase  Price shall  ultimately  be paid to such
Holder entirely in Cash because any of the conditions to payment of the Purchase
Price in shares of Common Stock is not  satisfied  prior to 5:00 p.m.,  New York
City time, on the Business Day  immediately  preceding the Purchase Date, as set
forth in Section 12.03 of the Indenture, I hereby elect to:

     [ ] withdraw this Purchase Notice as to $____________ in Original Principal
Amount    of    Securities    with   the    following    certificate    numbers:
________________________________ to which this Purchase Notice relates;

     [ ] receive Cash in respect of the entire Purchase Price for all Securities
(or portions thereof) to which this Purchase Notice relates.

<PAGE>

            OPTION OF HOLDER TO ELECT PURCHASE ON FUNDAMENTAL CHANGE

             4.125% Series A Convertible Senior Debentures due 2023

TO:      DST SYSTEMS, INC.
         JPMORGAN CHASE BANK

     The  undersigned  registered  owner  of  this  Series  A  Debenture  hereby
irrevocably  acknowledges  receipt  of a notice  from  DST  Systems,  Inc.  (the
"Company")  regarding  the right of holders to elect to require  the  Company to
purchase the Securities upon a Fundamental Change and requests and instructs the
Company  pursuant to Section  13.01 to purchase  the entire  Original  Principal
Amount of this Security,  or portion thereof (which is $1,000 Original Principal
Amount or an integral multiple thereof) designated below, in accordance with the
terms  of the  Indenture  at the  price  of the  Accreted  Principal  Amount  or
proportional  portion  thereof,  together with accrued cash interest  (including
Contingent  Interest and  Liquidated  Damages,  if any) to, but  excluding,  the
Fundamental  Change Purchase Date, to the registered holder hereof.  Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the  Indenture.  The  Securities  shall be purchased by the Company as of the
Fundamental Change Purchase Date pursuant to the terms and conditions  specified
in the Indenture.

     Dated:

     Signature(s):

     NOTICE:  The above  signatures of the holder(s) hereof must correspond with
the name as written  upon the face of the Security in every  particular  without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original   Principal   Amount  to  be   purchased   (if  less  than   all):
$_____________________.

     In  the  event  the  Company  elects,  pursuant  to  Section  13.02  of the
Indenture, to pay the Fundamental Change Purchase Price, in whole or in part, in
shares of Common Stock but such portion of the Fundamental Change Purchase Price
shall  ultimately  be paid to such Holder  entirely  in Cash  because any of the
conditions  to payment of the  Fundamental  Change  Purchase  Price in shares of
Common Stock is not  satisfied  prior to 5:00 p.m.,  New York City time,  on the
Business Day  immediately  preceding the Purchase  Date, as set forth in Section
13.02 of the Indenture, I hereby elect to:

     [ ] withdraw this Fundamental Change Purchase Notice as to $____________ in
Original   Principal  Amount  of  Securities  with  the  following   certificate
numbers:________________________________   to  which  this  Fundamental   Change
Purchase Notice relates;

     [ ] receive Cash in respect of the entire Fundamental Change Purchase Price
for all  Securities  (or  portions  thereof)  to which this  Fundamental  Change
Purchase Notice relates.

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