Document:

EMPLOYMENT AGREEMENT

         THIS  AGREEMENT,  made  and  entered into  as of this 12th day of June,
2000,  by  and  between  Stilwell  Financial,   Inc.,  a  Delaware   corporation
("Stilwell")  and Gwen E. Royle, an individual  ("Executive") to be effective on
the date of the Spin-off Distribution (as defined below).

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

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

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

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

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         2.       Compensation.
                  ------------
                  (a)  Base  Compensation.   Stilwell  shall  pay  Executive  as
compensation  for her  services  hereunder  an annual base salary at the rate of
$200,000.  Such rate shall not be  increased  prior to January 1, 2003 and shall
not be  reduced  except as agreed by the  parties or except as part of a general
salary  reduction  program imposed by Stilwell and applicable to all officers of
Stilwell.

                  (b) Incentive Compensation. For the years 2000, 2001 and 2002,
Executive  shall  not be  entitled  to  participate  in any  Stilwell  incentive
compensation  plan,  except that  Stilwell  shall pay  Executive a cash bonus of
$250,000 within ten days after the spin-off Distribution.

3.       Benefits and Stock Ownership.
         ----------------------------
                  (a) Benefits.  During the period of her employment  hereunder,
Stilwell  shall provide  Executive  with  coverage  under such benefit plans and
programs as are made  generally  available  to similarly  situated  employees of
Stilwell,  provided (a) Stilwell  shall have no  obligation  with respect to any
plan or program if Executive is not  eligible for coverage  thereunder,  and (b)
Executive   acknowledges   that  stock   options  and  other  stock  and  equity
participation  awards are granted in the discretion of the Stilwell Board or the
Compensation  Committee of the Stilwell Board and that Executive has no right to
receive stock  options or other equity  participation  awards or any  particular
number or level of stock options or other awards. In determining  contributions,
coverage and benefits under any disability  insurance  policy and under any cash
compensation-based  plan provided to Executive by Stilwell,  it shall be assumed
that the value of Executive's annual  compensation,  pursuant to this Agreement,
is the lower of 175% of Executive's annual base salary or $1,000,000.  Executive
acknowledges that all rights and benefits under benefit plans and programs shall
be  governed  by the  official  text of each such plan or program and not by any

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summary or description thereof or any provision of this Agreement (except to the
extent this  Agreement  expressly  modifies  such benefit plans or programs) and
that  Stilwell is not under any  obligation to continue in effect or to fund any
such plan or program,  except as provided in Paragraph 7 hereof.  Stilwell  also
shall reimburse  Executive for ordinary and necessary  travel and other business
expenses in accordance with policies and procedures established by Stilwell.

                  (b) Stock  Ownership.  During  the  period  of her  employment
hereunder,  Executive  shall  retain  ownership  in herself or in members of her
immediate  family of at least a majority of the number of shares of (i) Stilwell
stock  received  by  Executive  or  members  of  her  immediate  family  in  the
Distribution,  and (ii)  Stilwell  stock  acquired  upon the  exercise  of stock
options, but excluding from such number of shares any such shares transferred to
Stilwell or sold to pay the purchase price upon the exercise of stock options or
to pay or satisfy tax obligations resulting from such exercise.

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

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

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

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

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

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

                           (iv)     Willful  failure  by   Executive  to  follow

         reasonable  instructions  of the  President  or other  officer  to whom
         Executive reports concerning the operations or business of  Stilwell or
         any subsidiary of Stilwell;

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

                           (vi)     Embezzlement  or  misappropriation  by
         Executive.

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

                           (ii)  Unless the  provisions  of  Paragraph 7 of this
         Agreement are applicable, if Executive's employment is terminated under
         Paragraph  4(d)(i),  Stilwell shall  continue,  for a period of one (1)
         year following such  termination,  (a) to pay to Executive as severance
         pay a monthly amount equal to  one-twelfth  (1/12th) of the annual base
         salary  referenced  in  Paragraph  2(a)  above,  at the rate in  effect
         immediately prior to termination,

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         and,  (b) to reimburse  Executive  for the  cost  (including  state and
         federal  income taxes payable with respect  to this  reimbursement)  of
         continuing the  health  insurance  coverage  provided  pursuant to this
         Agreement or  obtaining  health  insurance  coverage  comparable to the
         health insurance  provided  pursuant  to this Agreement,  and obtaining
         coverage  comparable to the life  insurance  provided  pursuant to this
         Agreement,  unless  Executive  is  provided  comparable  health or life
         insurance coverage in  connection with other employment.  The foregoing
         obligations  of Stilwell  shall continue  until the end of such one (1)
         year  period  notwithstanding  the  death or  disability  of  Executive
         during said period (except,  in  the event of death,  the obligation to
         reimburse   Executive  for  the  cost   of  life  insurance  shall  not
         continue).  In  the year in which  termination  of  employment  occurs,
         Executive  shall  be eligible to receive  benefits  under the  Stilwell
         Incentive  Compensation Plan and  the Stilwell  Executive Plan (if such
         Plans then are in existence and  Executive was entitled to  participate
         immediately prior to termination) in  accordance with the provisions of
         such plans then  applicable,  and  severance  pay received in such year
         shall be taken into account for the purpose  of  determining  benefits,
         if any, under the  Stilwell  Incentive  Compensation Plan but not under
         the  Stilwell  Executive  Plan.  After  the year in  which  termination
         occurs,  Executive shall not be entitled to accrue  or receive benefits
         under  the   Stilwell  Incentive  Compensation  Plan  or  the  Stilwell
         Executive  Plan  with respect to the  severance  pay  provided  herein,
         notwithstanding  that benefits under such plan then are still generally
         available to executive  employees  of Stilwell.  After  termination  of
         employment,  Executive  shall  not be  entitled  to  accrue or  receive
         benefits under any other employee  benefit plan or program, except that
         Executive  shall be entitled to  participate  in the Stilwell  Employee
         Stock Ownership Plan and  the Stilwell  Section 401(k) Plan with Profit
         Sharing

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         Plan  Portion  in   the  year  of  termination  of  employment  only if
         Executive meets all  requirements  of such plans for  participation  in
         such year.

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

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

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

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

                  (b) Benefits. During the Three-Year Period, Executive shall be
entitled to participate,  on the basis of her executive position, in each of the
following Stilwell plans

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(together,  the "Specified  Benefits") in existence,  and in accordance with the
terms thereof, at the Control Change Date:

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

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

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

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

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

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

                           (i) the acquisition or holding by any person,  entity
         or group  (within  the  meaning of Section  13(d)(3) or 14(d)(2) of the
         Securities  Exchange Act of 1934 (the  "Exchange  Act"),  other than by
         Stilwell or any Subsidiary (as defined below),  or any employee benefit
         plan of Stilwell or a  Subsidiary  (and other than by KCSI prior to the

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         Spin-off Distribution),  of beneficial ownership (within the meaning of
         Rule   13d-3   under  the   Exchange   Act)  of  20%  or  more  of  the
         then-outstanding  common  stock  or the  combined  voting  power of the
         then-outstanding   voting  securities  ("Voting  Power")  of  Stilwell;
         provided,  however,  that no Change in Control  shall  occur  solely by
         reason of any such  acquisition by a corporation with respect to which,
         after  such  acquisition,  more  than 60% of both the  then-outstanding
         common shares and the then-outstanding Voting Power of such corporation
         are then beneficially owned, directly or indirectly, by the persons who
         were the  beneficial  owners of the  then-outstanding  common stock and
         Voting  Power of  Stilwell  immediately  before  such  acquisition,  in
         substantially  the  same  proportions  as their  respective  ownership,
         immediately  before such acquisition,  of the  then-outstanding  common
         stock and Voting Power of Stilwell; or

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

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

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

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

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

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

                  (e) Termination After Control Change Date. Notwithstanding any
other  provision of this Paragraph 7, at any time after the Control Change Date,
Stilwell may terminate  the  employment of Executive  (the  "Termination"),  but
unless  such  Termination  is for Cause as  defined in  subparagraph  (g) or for
disability,  within  five  (5) days of the  Termination  Stilwell  shall  pay to
Executive  her full base  salary  through  the  Termination,  to the  extent not
theretofore paid, plus a lump sum amount (the "Special Severance Payment") equal
to the product  (discounted  to the then present value on the basis of a rate of
seven percent (7%) per annum) of (i) 175% of her annual base salary specified in
Paragraph  7(a)  multiplied by (ii) two, and Specified  Benefits  (excluding any
incentive  compensation)  to which Executive was entitled  immediately  prior to
Termination  shall  continue  until  the  end of the  3-year  period  ("Benefits
Period")  beginning on the date of  Termination.  If any plan  pursuant to which
Specified  Benefits  are provided  immediately  prior to  Termination  would not
permit  continued  participation by

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Executive after  Termination,  then Stilwell shall pay to Executive  within five
(5) days after  Termination  a lump sum payment equal to the amount of Specified
Benefits  Executive  would have  received  under such plan if Executive had been
fully vested in the average annual  contributions  or benefits in effect for the
three plan years  ending  prior to the Control  Change Date  (regardless  of any
limitations  based on the earnings or  performance of Stilwell) and a continuing
participant in such plan to the end of the Benefits Period. Following the end of
the Benefits Period, Stilwell shall continue to provide to the Executive and the
Executive's family the following benefits ("Post-Period Benefits"): (1) prior to
the Executive's  attainment of age sixty (60),  health,  prescription and dental
benefits  equivalent  to those then  applicable  to active  peer  executives  of
Stilwell and their families,  as the same may be modified from time to time, and
(2) following the  Executive's  attainment of age sixty (60) (and without regard
to the  Executive's  period of service with Stilwell),  health and  prescription
benefits  equivalent  to those then  applicable  to retired peer  executives  of
Stilwell and their families,  as the same may be modified from time to time. The
cost to the Executive of such Post-Period  Benefits shall not exceed the cost of
such benefits to active or retired (as applicable) peer executives,  as the same
may be modified from time to time.  Notwithstanding  the preceding two sentences
of  this  Paragraph  7(e),  if  the  Executive  is  covered  under  any  health,
prescription  or  dental  plan  provided  by a  subsequent  employer,  then  the
corresponding  type of plan  coverage  (i.e.,  health,  prescription  or dental)
required to be provided as Post-Period  Benefits under this Paragraph 7(e) shall
cease. The Executive's rights under this Paragraph 7(e) shall be in addition to,
and not in lieu of, any  post-termination  continuation  coverage or  conversion
rights the  Executive may have pursuant to  applicable  law,  including  without
limitation  continuation  coverage required by Section 4980 of the Code. Nothing
in this Paragraph 7(e) shall be deemed to limit in any manner the reserved

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right of Stilwell,  in its sole and absolute  discretion,  to at any time amend,
modify or  terminate  health,  prescription  or dental  benefits  for  active or
retired employees generally.

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

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

                                       14
<PAGE>

         which is  remedied by Stilwell promptly after receipt of notice thereof
         given by the Executive,

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

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

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

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

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

                           (i)  bad judgment or negligence;

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

                                       15
<PAGE>

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

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

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

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

                           (i)      the amount of such Excise Taxes;
         multiplied by
                           (ii)     the   Gross-up   Multiple   (as  defined  in
         Paragraph 7(k).

                                       16
<PAGE>

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

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

                  (i)      Determination by the Executive.

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

                                       17
<PAGE>

         Certificate  specifying  the Gross-up Payment  determined by Stilwell's
         independent  auditors,  together  with an opinion of Stilwell's counsel
         ("Stilwell  Counsel  Opinion"),  and  pay the  Executive  the  Gross-up
         Payment  specified  in  such  Certificate.  If for any reason  Stilwell
         fails  to  comply  with  clause  (b) of  the  preceding  sentence,  the
         Gross-up Payment specified in  the Executive's  Determination  shall be
         controlling for all purposes.

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

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

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

                                       18
<PAGE>

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

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

                  (m) Amount Increased or Contested.  The Executive shall notify
Stilwell in writing of any claim by the IRS or other taxing  authority  that, if
successful,  would require the payment by Stilwell of a Gross-up  Payment.  Such
notice  shall  include the nature of such claim and the date on which such claim
is due to be paid. The Executive  shall give such notice as soon as practicable,
but no later than 10 business  days,  after the Executive  first obtains  actual
knowledge of such claim; provided, however, that any failure to give or delay in
giving such

                                       19
<PAGE>

notice shall affect Stilwell's obligations under this Paragraph 7 only if and to
the extent  that such  failure  results in actual  prejudice  to  Stilwell.  The
Executive  shall not pay such claim less than 30 days after the Executive  gives
such notice to Stilwell (or, if sooner,  the date on which payment of such claim
is due). If Stilwell  notifies the Executive in writing before the expiration of
such period that it desires to contest such claim, the Executive shall:

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

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

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

                           (iv)   permit   Stilwell   to   participate   in  any
         proceedings relating to such claim;  provided,  however,  that Stilwell
         shall  bear  and  pay  directly  all  costs  and  expenses   (including
         additional  interest and  penalties)  incurred in connection  with such
         contest and shall  indemnify  and hold the  Executive  harmless,  on an
         after-tax  basis, for any Excise Tax or income tax,  including  related
         interest and penalties,  imposed as a result of such representation and
         payment of costs and expenses. Without limiting the foregoing, Stilwell
         shall control all  proceedings in connection  with such contest and, at
         its sole  option,  may  pursue  or  forego  any and all  administrative
         appeals,   proceedings,   hearings  and  conferences  with  the  taxing
         authority in respect of such claim and may, at its sole option,  either
         direct the  Executive  to pay the tax  claimed  and sue for a refund or
         contest the claim in any permissible  manner.  The Executive  agrees to
         prosecute  such contest to a

                                       20
<PAGE>

         determination  before  any  administrative  tribunal,  in  a  court  of
         initial  jurisdiction and in one or more  appellate courts, as Stilwell
         shall  determine;  provided,  however,  that  if  Stilwell  directs the
         Executive  to pay such  claim  and sue  for a  refund,  Stilwell  shall
         advance  the  amount   of  such  payment  to  the   Executive,   on  an
         interest-free basis and  shall indemnify the Executive, on an after-tax
         basis, for any Excise Tax  or income tax, including related interest or
         penalties,  imposed with respect  to such advance; and further provided
         that any extension of the statute of  limitations  relating  to payment
         of taxes for the taxable year of the  Executive  with  respect to which
         such  contested  amount is claimed to be  due is limited solely to such
         contested  amount.  The  Stilwell's  control  of the  contest  shall be
         limited to issues with  respect to which  a Gross-up  Payment  would be
         payable.  The Executive shall  be entitled to settle or contest, as the
         case  may be,  any  other  issue  raised  by  the IRS or  other  taxing
         authority.

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

                                       21
<PAGE>

thereof,  the amount of Gross-up  Payment  required to be paid. Any contest of a
denial of refund shall be controlled by Paragraph 7(m).

                  (o) Expenses. If any dispute should arise under this Agreement
after the  Control  Change Date  involving  an effort by  Executive  to protect,
enforce or secure rights or benefits  claimed by Executive  hereunder,  Stilwell
shall pay (promptly upon demand by Executive  accompanied by reasonable evidence
of incurrence) all reasonable expenses (including  attorneys<180> fees) incurred
by  Executive  in  connection  with such  dispute,  without  regard  to  whether
Executive  prevails in such dispute except that  Executive  shall repay Stilwell
any  amounts so  received  if a court  having  jurisdiction  shall make a final,
nonappealable  determination that Executive acted frivolously or in bad faith by
such dispute.  To assure Executive that adequate funds will be made available to
discharge Stilwell's  obligations set forth in the preceding sentence,  Stilwell
has  established  a trust and upon the  occurrence  of a Change in Control shall
promptly  deliver to the  trustee of such trust to hold in  accordance  with the
terms and  conditions  thereof  that sum which the  Stilwell  Board  shall  have
determined is reasonably sufficient for such purpose.

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

         8. Mitigation and Other Employment.  After a termination of Executive's
employment  pursuant to  Paragraph  4(d)(i) or a Change in Control as defined in
Paragraph  7(d),  Executive  shall not be required to mitigate the amount of any
payment provided for in this Agreement by seeking other employment or otherwise,
and except as otherwise specifically provided in

                                       22
<PAGE>

Paragraph  4(d)(ii)  with respect to health and life  insurance and in Paragraph
7(e) with respect to health,  prescription  and dental  benefits,  no such other
employment,  if obtained,  or  compensation  or benefits  payable in  connection
therewith  shall  reduce any amounts or benefits to which  Executive is entitled
hereunder.  Such amounts or benefits  payable to Executive  under this Agreement
shall not be treated as damages but as severance compensation to which Executive
is entitled because Executive's employment has been terminated.

         9.  Notice.  Notices  and all  other  communications  to  either  party
pursuant to this Agreement  shall be in writing and shall be deemed to have been
given when  personally  delivered,  delivered  by  facsimile or deposited in the
United States mail by certified or registered mail, postage prepaid,  addressed,
in the case of  Stilwell,  to Stilwell  at 114 West 11th  Street,  Kansas  City,
Missouri 64105, Attention:  Secretary,  or, in the case of the Executive, to her
at 4027 N.W. Claymont Drive,  Kansas City, MO 64116, or to such other address as
a party shall designate by notice to the other party.

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

         11.  Successors  in Interest.  The rights and  obligations  of Stilwell
under this  Agreement  shall  inure to the benefit of and be binding in each and
every respect upon the direct and indirect  successors  and assigns of Stilwell,
regardless  of the manner in which such  successors  or assigns shall succeed to
the interest of Stilwell hereunder, and this Agreement shall not  be  terminated
by

                                       23
<PAGE>

the  voluntary  or  involuntary  dissolution  of  Stilwell  or by any  merger or
consolidation or acquisition  involving  Stilwell or upon any transfer of all or
substantially  all  of  Stilwell's  assets,  or  terminated  otherwise  than  in
accordance with its terms. In the event of any such merger or  consolidation  or
transfer of assets,  the provisions of this Agreement  shall be binding upon and
shall inure to the benefit of the surviving  corporation  or the  corporation or
other person to which such assets shall be  transferred.  Neither this Agreement
nor any of the  payments  or  benefits  hereunder  may be  pledged,  assigned or
transferred by Executive  either in whole or in part in any manner,  without the
prior written consent of Stilwell.

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

         13.      Controlling Law and Jurisdiction. The validity, interpretation
and performance of this Agreement shall be subject to  and construed  under  the
laws of the State of Missouri, without regard to principles of conflicts of law.

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

                                       24
<PAGE>

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

                                            By     /s/ L.H. Rowland
                                                --------------------------------
                                            Name:   Landon H. Rowland
                                            Title:      President

                                            EXECUTIVE
                                                   /s/ Gwen E. Royle
                                            -----------------------------------
                                                      Gwen E. Royle<PAGE>

                      FIRST AMENDMENT TO LOAN AGREEMENT
                      ---------------------------------

     This First Amendment to Loan Agreement (the "Amendment") is dated and
effective as of June 28, 2000, by, between and among BANK ONE, KENTUCKY, NA,
a national banking association and its successors and assigns, whose address
is 416 West Jefferson Street, Louisville, Kentucky 40202 (referred to herein
as "Bank"). UNIFIED FINANCIAL SERVICES, INC., a Delaware corporation, whose
address is 220 Lexington Green Circle, Suite 600, Lexington, Kentucky 40503
("Unified"), COMMONWEALTH PREMIUM FINANCE CORPORATION, a Kentucky
corporation, whose address is 220 Lexington Green Circle, Suite 600,
Lexington, Kentucky 40503 ("Commonwealth") (Unified and Commonwealth are
herein sometimes collectively referred to as "Borrowers"), and EQUITY
UNDERWRITING GROUP, INC., a Kentucky corporation, with address of 3201
Nicholasville Road, Lexington, Kentucky 40503 ("Equity").

                                  RECITALS
                                  --------

     1.   Borrowers and Bank are parties to that certain Loan Agreement dated
as of December 28, 2000 (the "Loan Agreement").

     2.   Borrowers and Bank have agreed to a renewal and an extension of the
maturity date of the Term Note dated December 28, 1999, made by Unified in
the original principal amount of $2,293,750.00 (as defined in the Loan
Agreement) and to a modification in the terms of repayment thereof; and

     3.   Borrowers and Bank have agreed to an additional renewal and an
extension of the maturity date of the Renewal Revolving Credit Note dated
December 28, 1999, made by Commonwealth, and guaranteed by Unified, in the
original principal amount of $2,500,000.00 (as defined in the Loan
Agreement); and

     4.   Equity desires to join as a party to the Agreement as hereby amended
for the purposes of guaranteeing the obligations of Unified under the
Renewal Term Note (as herein defined) and to grant to Bank a security
interest in certain of Equity's property to secure its guaranty; and

     5.   Borrowers, Equity and Bank desire to enter into this Amendment to
document the renewal of the referenced obligations and to enter into certain
other agreements relative thereto;

     NOW, THEREFORE, the parties hereto, in consideration of the mutual
covenants and agreements contained herein and in the Loan Agreement, and
intending to be legally bound hereby, covenant and agree as follows:

1.   CERTAIN DEFINITIONS
     -------------------

     All capitalized words herein not otherwise defined shall have the same
meaning given to such words in the Loan Agreement, except as the definition
of such capitalized words is amended herein.

<PAGE>
<PAGE>

     The following definitions in Article 1 of the Loan Agreement are hereby
deleted and replaced with the following definitions:

     1.08. Guaranties mean collectively (i) the Guaranty dated of even date
           ----------
herewith of the Renewal Revolving Credit Note and all of Commonwealth's
obligations under the Loan Documents, made and executed by Unified, and (ii)
the Guaranty dated of even date herewith of the Renewal Term Note and all of
Unified's obligations under the Loan Documents, made and executed by
Commonwealth, and (iii) the Guaranty dated of even date herewith of the
Renewal Term Note and all of Unified's obligations under the Loan Documents,
made and executed by Equity.

     1.12. Loan Documents means the Loan Agreement, as amended, the Notes,
           --------------
the Guaranties, the Security Agreements, the UCC-1's, and any other
instruments, certificates or documents previously, concurrently or hereafter
delivered or to be delivered by Unified, Commonwealth or Equity under this
Agreement, or otherwise, evidencing, securing or relating to the Loans.

     1.15. Notes means the Renewal Term Note and the Renewal Revolving
           -----
Credit Loan.

     1.20. Renewal Revolving Credit Note means the Renewal Revolving
           -----------------------------
Promissory Note dated of even date herewith in the principal amount of Two
Million Five Hundred Thousand and 00/100 Dollars ($2,500,000.00), executed
by Commonwealth and payable to the order of Bank.

     1.21. Security Agreements mean (i) the Stock Pledge and Security
           -------------------
Agreement from Unified to Bank dated December 28, 1999, in which Unified
pledges to Bank a first and prior lien on certain securities of Unified
described in schedule A attached thereto, and (ii) a Security Agreement from
Commonwealth to Bank dated December 28, 1999, whereby Commonwealth assigns
and pledges to Bank a first and prior lien on certain assets of Commonwealth
described in exhibit A attached thereto, (iii) a Security Agreement from
Equity to Bank dated June 28, 2000, whereby Equity grants to Bank a first
and prior security interest in certain assets of Equity described in exhibit
A attached thereto.

     1.23. Renewal Term Note means the Renewal Term Note dated of even date
           -----------------
herewith in the principal amount of One Million Eight Hundred Ninety Three
Thousand Seven Hundred Fifty and 00/100 Dollars ($1,893,750.00), executed by
Unified and payable to the order of Bank.

2.   THE RENEWAL REVOLVING CREDIT NOTE. Simultaneously with the execution of
     ---------------------------------
this Amendment, Commonwealth has executed and delivered to Bank the Renewal
Revolving Credit Note in the original principal sum of Two Million Five
Hundred Thousand and 00/100 Dollars ($2,500,000.00). The outstanding
principal balance of the Renewal Revolving Credit Note shall bear and be
repayable in accordance with the terms thereof.

3.   THE RENEWAL TERM NOTE. Simultaneously with the execution of this
     ---------------------
Amendment, Unified has executed and delivered to Bank the Renewal Term Note
in the original principal sum of One Million Eight Hundred Ninety Three
Thousand Seven Hundred Fifty and 00/100 Dollars

                                     2

<PAGE>
<PAGE>

($1,893,750.00). The outstanding principal balance of the Renewal Term Note
shall bear and be repayable in accordance with the terms thereof.

4.   COLLATERAL; ADDITIONAL COLLATERAL AND GUARANTIES. As security for the
     ------------------------------------------------
payment of each and all of the Borrowers' obligations under this Amendment,
the Notes and all other sums that are recoverable by Bank under the Loan
Documents shall be and hereby are secured by the security interests granted
by Borrowers and Equity to Bank under the Security Agreements as defined in
the Loan Agreement, as hereby amended. Simultaneously with the execution of
this Amendment, Equity and Commonwealth shall each enter into a guaranty of
the Renewal Term Note in form and substance satisfactory to Bank. In
addition, to secure its guaranty, Equity shall enter into a security
agreement granting Bank a first and prior perfected security interest in
substantially all personal property assets of Equity. The Security
Agreements and the other Loan Documents are hereby amended to incorporate
therein the Renewal Revolving Credit Note and the Renewal Term Note as part
of the indebtedness secured by, and entitled to the other benefits of, the
Loan Documents. By executing this Amendment, Equity joins as a party to the
Loan Agreement and agrees to all terms and conditions thereof.

5.   REPRESENTATIONS AND WARRANTIES. Borrowers and Equity jointly and
     ------------------------------
severally reiterate as of this date all representations and warranties
contained in the Loan Agreement (each of which shall be deemed to be
continuing warranties and representations until such time as all
indebtedness evidenced by the Loan Agreement, as hereby amended, shall have
been paid in full and neither of Borrowers have any further liability to
Bank).

6.   COVENANTS. Borrowers and Equity agree that all covenants contained in
     ---------
the Loan Agreement, as hereby amended, are and hereafter shall be binding
upon Borrowers until payment in full of all obligations to Bank under the
Loan Documents, unless otherwise consented to in writing by Bank.

7.   NO DEFENSES OR SETOFFS. There are no defenses, credits, or setoffs to
     ----------------------
the payment of the indebtedness evidenced by the Notes or the enforceability
of the Notes or the Loan Agreement or any of the Loan Documents against
Borrowers or Equity, nor are there any claims, actions or causes of action
which could be asserted against the Bank relating to the transactions
evidenced by the Notes, the Loan Agreement, this Amendment or the
transactions relating thereto. The obligations described herein and in the
Notes are absolute and non-contingent.

8.   LIMITED EFFECT OF AMENDMENT. Except as specifically amended herein, the
     ---------------------------
terms and conditions of the Notes, the Loan Agreement and all other existing
agreements between the parties are unaffected by this Amendment, are valid
and enforceable in accordance with their terms and shall continue to remain
in full force and effect.

9.   GOVERNING LAW. This Amendment shall be governed by and construed and
     -------------
enforced in accordance with the substantive law of the Commonwealth of Kentucky.

                                     3

<PAGE>
<PAGE>

10.  ENTIRE AGREEMENT; MODIFICATIONS. This Amendment and the other Loan
     -------------------------------
Documents contain the entire agreement and understanding of the parties
herein. The terms of this Amendment may not be changed, modified, waived,
discharged or terminated orally, but only by an instrument or instruments in
writing, signed by the party against whom the enforcement of the change,
modification, waiver, discharge or termination is asserted.

11.  COUNTERPART EXECUTION. This Amendment may be signed by each party upon
     ---------------------
a separate copy, and in such case one counterpart of this Amendment shall
consist of enough of such copies to reflect the signature of each party.
This Amendment may be executed in two or more counterparts, each of which
shall be deemed an original.

                                         BANK ONE, KENTUCKY, NA

                                         BY: /s/ Mark Boison
                                            ------------------------------------
                                         TITLE: First Vice President
                                               ---------------------------------

                                         UNIFIED FINANCIAL SERVICES, INC.

                                         BY: /s/ John S. Penn
                                            ------------------------------------
                                         TITLE: President
                                               ---------------------------------

                                         COMMONWEALTH PREMIUM FINANCE
                                         CORPORATION

                                         BY: /s/ John R. Owens
                                            ------------------------------------
                                         TITLE: Vice President
                                               ---------------------------------

                                     4

<PAGE>
<PAGE>

                                         EQUITY UNDERWRITING GROUP, INC.

                                         BY: /s/ John R. Owens
                                            ------------------------------------
                                         TITLE: President
                                               ---------------------------------

                                     5

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