Document:

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                                                                     Exhibit 4.1

                              DEAN FOODS COMPANY
                            1989 STOCK AWARDS PLAN
                         AS AMENDED SEPTEMBER 28, 1999

     1.   Purpose. The purpose of the Dean Foods Company 1989 Amended Stock
Awards Plan (the "Plan") is to promote the long-term financial interests of the
Company and its Affiliates by (a) attracting and retaining personnel, (b)
motivating personnel by means of growth-related incentives, (c) providing
incentive compensation opportunities that are competitive with those of other
major corporations and (d) furthering the identity of interests of participants
with those of the stockholders of the Company.

     2.   Definitions. The following definitions are applicable to the Plan:

               "Affiliate" means (a) any subsidiary and (b) any other entity in
          which the Company has a direct or indirect equity interest which is
          designated an "Affiliate" by the Committee.

               "Board of Directors" means the Board of Directors of the Company.

               "Code" means the Internal Revenue Code of 1986, as amended, and
          any successor statute.

               "Committee" means the Compensation Committee or, if the Board of
          Directors so determines, another committee of two or more directors of
          the Company who are "non-employee directors" as such term is used in
          Rule 16b-3 and are "outside directors" as such term is used in Section
          162(m) of the Code.

               "Common Stock" means Common Stock, $1.00 par value, of the
          Company or such other securities as may be substituted therefor
          pursuant to paragraph 5(c).

               "Company" means Dean Foods Company, a Delaware corporation, and
          its successors.

               "eligible employee" means any full-time employee of the Company
          or an Affiliate.

               The "fair market value" of the Common Stock shall be determined
          in accordance with procedures established by the Committee.

               "fiscal year" means the Company's fiscal year.

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               "participant" means any employee of the Company or an Affiliate
          who has been granted an award pursuant to the Plan.

               "Rule 16b-3" means such rule adopted under the Securities
          Exchange Act of 1934, as amended, or any successor rule.

               "subsidiary" means any corporation fifty percent or more of the
          voting stock of which is owned, directly or indirectly, by the
          Company.

     3.   Limitation on Aggregate Shares/Individual Ten-Year Limitation on
Option, SAR and Performance Shares Awards. Subject to adjustment as provided in
paragraph 5(c), the number of shares of Common Stock which may be issued upon
the exercise or payment of awards granted under the Plan shall not exceed, in
the aggregate, 7,100,000 shares; it being understood that to the extent any
awards expire unexercised or unpaid or are cancelled, terminated or forfeited in
any manner without the issuance of shares of Common Stock thereunder, such
shares shall again be available under the Plan. Such 7,100,000 shares of Common
Stock may be either authorized and unissued shares, treasury shares, or a
combination thereof, as the Committee shall determine.

          Subject to adjustment as provided in Paragraph 5(c), the number of
shares of Common Stock with respect to which options and stock appreciation
rights may be awarded, and the maximum number of shares of Common Stock
potentially issuable under performance shares awards awarded, during the period
of ten fiscal years ending in 2007 to any eligible employee may not exceed, in
the aggregate, 500,000 shares.

     4.   Awards. The Committee may grant to eligible employees, in accordance
with this paragraph 4 and the other provisions of the Plan, stock options, stock
appreciation rights ("SARs"), restricted stock, performance shares awards and
other awards.

          (a) Options.

               (i)  Options granted under the Plan may be incentive stock
          options ("ISOs") within the meaning of Section 422A of the Code or any
          successor provision, or in such other form, consistent with the Plan,
          as the Committee may determine; except that, so long as so provided in
          such Section, no ISO may be granted under the Plan after July 24, 2007
          or to any employee of an Affiliate which is not a subsidiary
          corporation (as such term is used in subsection (b) of such Section)
          of the Company.

               (ii) The option price per share of Common Stock shall be fixed by
          the Committee at (a) in the case of ISOs, not less than 100% of the
          fair market value of a share of Common Stock on the date of grant and
          not less than the par value of a share of Common Stock and (b) in the
          case of other options, not less than 85% of the fair market value of a
          share of Common Stock on the date of grant and not less than the par
          value of a share of Common Stock.

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               (iii)  Options shall be exercisable at such time or times as the
          Committee shall determine at or subsequent to grant.

               (iv)   An option shall be exercised in whole or in part by
          written notice to the Company (to the attention of the Secretary) at
          any time prior to its stated expiration and payment in full of the
          option price for the shares as to which the option is being exercised.
          Payment of the option price may be made, at the discretion of the
          optionee, and to the extent permitted by the Committee, (A) in cash
          (including check, bank draft, or money order), (B) in Common Stock
          already owned by the optionee (valued at the fair market value thereof
          on the date of exercise), (C) by a combination of cash and Common
          Stock, or (D) with any other consideration.

          (b) SARs.

               (i)   An SAR shall entitle its holder to receive from the
          Company, at the time of exercise of such right, an amount equal to the
          excess of the fair market value (at the date of exercise) of a share
          of Common Stock over a specified price fixed by the Committee
          multiplied by the number of shares as to which the holder is
          exercising the SAR. SARs may be in tandem with any previously or
          contemporaneously granted option or independent of any option. The
          specified price of a tandem SAR shall be the option price of the
          related option. The amount payable may be paid by the Company in
          Common Stock (valued at its fair market value on the date of
          exercise), cash or a combination thereof, as the Committee may
          determine, which determination may take into consideration any
          preference expressed by the holder.

               (ii)  An SAR shall be exercised by written notice to the Company
          (to the attention of the Secretary) at any time prior to its stated
          expiration. To the extent a tandem SAR is exercised, the related
          option will be cancelled and, to the extent the related option is
          exercised, the tandem SAR will be cancelled.

          (c) Restricted Stock.

               (i)   The Committee may award to any eligible employee shares of
          Common Stock, subject to this paragraph 4(c) and such other terms and
          conditions as the Committee may prescribe (such shares being called
          "restricted stock"). Each certificate for restricted stock shall be
          registered in the name of the participant and deposited, together with
          a stock power endorsed in blank, with the Company.

               (ii)  Restricted Stock may be awarded without any consideration
          other than services rendered and/or (to the extent permitted by
          applicable corporate law on the date of award) services to be
          rendered.

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               (iii) There shall be established for each restricted stock award
          a restriction period (the "restriction period") of such length as
          shall be determined by the Committee. Shares of restricted stock may
          not be sold, assigned, transferred, pledged or otherwise encumbered,
          except as hereinafter provided, during the restriction period. Except
          for such restrictions on transfer and such other restrictions as the
          Committee may impose, the participant shall have all the rights of a
          holder of Common Stock as to such restricted stock. The Committee, in
          its sole discretion, may permit or require the payment of cash
          dividends to be deferred and, if the Committee so determines,
          reinvested in additional restricted stock or otherwise invested or
          accruing a yield. At the expiration of the restriction period, the
          Company shall redeliver to the participant (or the participant's legal
          representative or designated beneficiary) the certificates deposited
          pursuant to this paragraph.

               (iv)  Except as provided by the Committee at or subsequent to the
          time of grant, upon a termination of employment for any reason during
          the restriction period all shares still subject to restriction shall
          be forfeited by the participant.

     (d)  Performance Shares Awards.

               (i)   A performance shares award shall entitle its holder to
          receive from the Company, following the expiration of a period of at
          least one fiscal year specified by the Committee (the "performance
          measurement period"), cash or Common Stock or a combination thereof as
          determined by the Committee (either at the time of grant or
          thereafter) in an aggregate amount based on the level of achievement
          during the performance measurement period of one or more Company
          financial performance criteria. The aggregate amount received by a
          participant shall be determined by a formula for such participant
          established by the Committee not later than the ninetieth day of the
          performance measurement period. The formula shall establish a range
          between a minimum level of achievement before any amount will be
          received and a level of achievement at or above which the maximum
          potential amount will be received. Initially, the financial
          performance criterion shall be earnings per share, but the Committee
          may subsequently use, either in substitution therefor or in addition
          thereto, total shareholder return (i.e., appreciation in the market
          value of a share of Common Stock plus dividends paid), return on
          stockholders' equity and/or return on invested capital.

               (ii)  Performance shares awards may be awarded without any
          consideration other than services rendered and/or (to the extent
          permitted by applicable corporate law on the date of award) services
          to be rendered.

               (iii) The Committee may impose restrictions on the transfer of
          shares of Common Stock issued as a result of achieving formula levels
          of performance.

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          Except for such restrictions on transfer, the recipient shall have all
          the rights of a holder of Common Stock as to such shares.

               (iv)  Except as provided by the Committee at or subsequent to the
          time of grant, upon the termination of employment for any reason
          during the performance measurement period the performance shares award
          shall be forfeited by the participant.

          (e)  Other Awards.

               (i)   Other awards may be granted under the Plan, including,
          without limitation, convertible debentures, other convertible
          securities and other forms of award measured in whole or in part by
          the value of shares of Common Stock, the performance of the
          participant, or the performance of the Company, any Affiliate or any
          operating unit thereof. Such awards may be payable in Common Stock,
          cash or a combination thereof, and shall be subject to such
          restrictions and conditions, as the Committee shall determine. At the
          time of such an award, the Committee shall, if applicable, determine a
          performance period and performance goals to be achieved during the
          performance period, subject to such later revisions as the Committee
          shall deem appropriate to reflect significant unforeseen events such
          as changes in laws, regulations or accounting practices, unusual or
          nonrecurring items or occurrences. Following the conclusion of each
          performance period, the Committee shall determine the extent to which
          performance goals have been attained or a degree of achievement
          between maximum and minimum levels during the performance period in
          order to evaluate the level of payment to be made, if any.

               (ii)  The purchase price per share of Common Stock under other
          awards involving the right to purchase Common Stock (including for
          this purpose the right to acquire Common Stock upon the conversion of
          convertible securities) shall be fixed by the Committee at not less
          than 85% of the fair market value of a share of Common Stock on the
          date of award and not less than the par value of a share of Common
          Stock. Other awards not involving the right to purchase Common Stock
          may be awarded without any consideration other than services rendered
          and/or (to the extent permitted by applicable corporate law on the
          date of award) services to be rendered.

               (iii) A participant may elect to defer all or a portion of any
          such award in accordance with procedures established by the Committee.
          Deferred amounts will be subject to such terms and conditions and
          shall accrue such yield thereon (which may be measured by the fair
          market value of the Common Stock and dividends thereon) as the
          Committee may determine. Payment of deferred amounts may be in cash,
          Common Stock or a combination thereof, as the Committee may determine.
          Deferred amounts shall be considered an award under the Plan. The

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          Committee may establish a trust or trusts to hold deferred amounts or
          any portion thereof for the benefit of participants.

          (f)  Cash Payments. SARs and options which are not ISOs may, in the
          Committee's discretion, provide that in connection with exercises
          thereof the holders will receive cash payments based on formulas
          designed to reimburse holders for their income tax liability resulting
          from such exercise and the payment made pursuant to this paragraph
          4(f).

          (g)  Surrender. If so provided by the Committee at or subsequent to
          the time of grant, an award may be surrendered to the Company on such
          terms and conditions, and for such consideration, as the Committee
          shall determine.

          (h)  Foreign Alternatives. Without amending and notwithstanding the
          other provisions of the Plan, in the case of any award to be held by
          any participant who is employed outside the United States or who is a
          foreign national, the Committee may specify that such award shall be
          made on such terms and conditions different from those specified in
          the Plan as may, in the judgment of the Committee, be necessary or
          desirable to further the purposes of the Plan.

     5.   Miscellaneous Provisions.

          (a)  Administration. The Plan shall be administered by the Committee.
          Subject to the limitations of the Plan, the Committee shall have the
          sole and complete authority: (i) to select participants, (ii) to make
          awards in such forms and amounts as it shall determine, (iii) to
          impose such limitations, restrictions and conditions upon such awards
          as it shall deem appropriate, (iv) to interpret the Plan and to adopt,
          amend and rescind administrative guidelines and other rules and
          regulations relating to the Plan, (v) to correct any defect or
          omission or to reconcile any inconsistency in the Plan or in any award
          granted hereunder and (vi) to make all other determinations and to
          take all other actions necessary or advisable for the implementation
          and administration of the Plan. The Committee's determinations on
          matters within its authority shall be conclusive and binding upon the
          Company and all other persons. All expenses associated with the Plan
          shall be borne by the Company, subject to such allocation to its
          Affiliates and operating units as it deems appropriate. The Committee
          may, to the extent that any such action will not prevent the Plan from
          complying with Section 162(m) of the Code, delegate any of its
          authority hereunder to such persons as it deems appropriate.

          (b)  Non-Transferability. Subject to the provisions of paragraph 5(f),
          no award under the Plan, and no interest therein, shall be
          transferable by a participant otherwise than by will or the laws of
          descent and distribution. All awards shall be exercisable or received
          during a participant's lifetime only by the participant or the

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          participant's legal representative. Any purported transfer contrary to
          this provision will nullify the award.

          (c)  Adjustments Upon Certain Changes. In the event of any
          reorganization, recapitalization, reclassification, merger,
          consolidation, or sale of all or substantially all of the Company's
          assets followed by liquidation, which is effected in such a way that
          holders of Common Stock are entitled to receive securities or other
          assets with respect to or in exchange for Common Stock (an "Organic
          Change"), the Committee shall make appropriate changes to insure that
          each outstanding award involving the right to acquire Common Stock
          thereafter represents the right to acquire, in lieu of or in addition
          to the shares of Common Stock immediately theretofore acquirable upon
          exercise or payment, such securities or assets as may be issued or
          payable with respect to or in exchange for an equivalent number of
          shares of Common Stock, and appropriate changes in other outstanding
          awards; and in the event of any stock dividend, stock split or
          combination of shares, the Board of Directors shall make appropriate
          changes in the number of shares authorized by the Plan to be delivered
          thereafter and in the maximum number of shares with respect to which
          options, SARs and performance shares awards may be awarded to any
          eligible employee during the period of ten fiscal years ending in
          2007, and the Committee shall make appropriate changes in the numbers
          of shares covered by, or with respect to which payments are measured
          under, outstanding awards and the exercise prices and reference prices
          specified therein (and in the event of a spinoff, the Committee may
          make similar changes), in order to prevent the dilution or enlargement
          of award rights. However, no right to purchase or receive a fraction
          of a share shall be created; and if, as a result of any such change, a
          fractional share would result or the right to purchase or receive the
          same would result, the number of shares in question shall be decreased
          to the next lower whole number of shares. The Committee may provide in
          the agreement evidencing any award for adjustments to such award in
          order to prevent the dilution or enlargement of rights thereunder or
          for acceleration of benefits thereunder and/or cash payments in lieu
          of benefits thereunder in the event of a change in control (or tender
          offer or accumulation of Common Stock), merger, consolidation,
          reorganization, recapitalization, sale or exchange of all or
          substantially all of the assets or dissolution of the Company.

          (d)  Tax Withholding. The Committee shall have the power to withhold,
          or require a participant to remit to the Company, an amount sufficient
          to satisfy any withholding or other tax payable by the Company with
          respect to any amount payable and/or shares issuable under the Plan,
          and the Committee may defer such payment or issuance unless
          indemnified to its satisfaction. Subject to the consent of the
          Committee, a participant may make an irrevocable election to have
          shares of Common Stock otherwise issuable under an award withheld,
          tender back to the Company shares of Common Stock received pursuant to
          an award or deliver to the Company shares of Common Stock already
          owned by the participant having a fair market value sufficient to
          satisfy all or part of the Company's withholding or

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          other tax obligations associated with the transaction. Such election
          must be made by a participant prior to the date on which the relevant
          tax obligation arises. The Committee may disapprove of any election
          and may limit, suspend or terminate the right to make such elections.

          (e)  Listing and Legal Compliance. The Committee may suspend the
          exercise or payment of any award if it determines that securities
          exchange listing or registration or qualification under any securities
          laws is required in connection therewith and has not been completed on
          terms acceptable to the Committee.

          (f)  Beneficiary Designation. To the extent permitted by the
          Committee, participants may name, from time to time, beneficiaries
          (who may be named contingently or successively) to whom benefits under
          the Plan are to be paid in the event of their death before they
          receive any or all of such benefits. Each designation will revoke all
          prior designations by the same participant, shall be in a form
          prescribed by the Committee, and will be effective only when filed by
          the participant in writing with the Committee during the participant's
          lifetime. In the absence of any such designation, benefits remaining
          unpaid at a participant's death shall be paid to the participant's
          estate.

          (g)  Rights of Participants. Nothing in the Plan shall interfere with
          or limit in any way the right of the Company or any Affiliate to
          terminate any participant's employment at any time, nor confer upon
          any participant any right to continue in the employ of the Company or
          any Affiliate for any period of time or to continue his or her present
          or any other rate of compensation. No employee shall have a right to
          be selected as a participant, or, having been so selected, to be
          selected again as a participant.

          (h)  Amendment, Suspension and Termination of Plan. The Board of
          Directors or the Committee may suspend or terminate the Plan or any
          portion thereof at any time and may amend it from time to time in such
          respects as the Board of Directors or the Committee may deem
          advisable; provided, however, that no such amendment shall be made
          without stockholder approval to the extent such approval is required
          by law, agreement or the rules of any exchange upon which the Common
          Stock is listed. No such amendment, suspension or termination shall
          impair the rights of participants under outstanding awards without the
          consent of the participants affected thereby.

               The Committee may amend or modify any award in any manner to the
          extent that the Committee would have had the authority under the Plan
          to initially grant the award as so amended or modified. No such
          amendment or modification shall impair the rights of the participant
          under such award without the consent of such participant.

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          6.   Effective Date. The effective date of the Plan shall be August 2,
1989, the date of its adoption by the Board of Directors; provided, however,
that no award shall be granted under the Plan unless the holders of at least a
majority of the outstanding shares of Common Stock voting at the Company's 1989
Annual Meeting of Stockholders approve and ratify the Plan.

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                                                                  EXHIBIT 10.6.1

                              EMPLOYMENT AGREEMENT
                              --------------------

     THIS AGREEMENT, made and entered into as of this ____ day of MayMay, 2000,
by and between Stilwell Financial, Inc., a Delaware corporation ("Stilwell") and
Landon H. RowlandLandon H. Rowland, 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, 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 Chairman of the
          ----------
Board, President and Chief Executive Officer 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 Stilwell Board, subject to the powers vested in the Stilwell Board and in
the stockholders of Stilwell.  Executive shall faithfully perform his duties
under this Agreement to the best of his ability and shall devote substantially
all of his 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 his services hereunder an annual base salary at the rate of $825,000.  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.

     3.   Benefits and Stock Ownership.
          ----------------------------

          (a) Benefits.  During the period of his 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 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

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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 his employment hereunder,
              ---------------
Executive shall retain ownership in himself or in members of his immediate
family of at least a majority of the number of shares of (i) Stilwell stock
received by Executive or members of his 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 his 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 his 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.

          (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

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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 two (2) years 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, 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

                                      -4-
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     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 two (2) 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 Plan Portion
     in the year of termination of employment only if Executive meets all
     requirements of such plans for participation in such year.

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     5.   Non-Disclosure and Non-Compete.
          ------------------------------

          (a) 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 his 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.

          (b) Non-Compete.  Following termination of this Agreement, except
              -----------
termination pursuant to Paragraph 4(d) or any termination after a Change in
Control (as herein defined of Stilwell), for a period ending three (3) years
after the last payment of salary or severance pay to Executive, Executive shall
not, directly or indirectly, as an individual, consultant, employer, employee,
officer, director, advisory director, principal, agent, partner, member,
stockholder (except non-controlling holdings of stock of not more than 2% of a
publicly traded company) or otherwise, (i) engage in a business in competition
with any business conducted by Stilwell or any subsidiary of Stilwell at any
time within five (5) years preceding the commencement of the period

                                      -6-
<PAGE>

of non-compete provided herein or any business which Stilwell or any of its
subsidiaries was actively considering for ownership or conduct during the
aforesaid five (5) year period, or (ii) participate in management of any holding
company owning, directly or indirectly, more than 5% of any such business.
Executive acknowledges that certain subsidiaries of Stilwell now conduct
business throughout the United States and in foreign countries, and agrees that
this non-compete shall apply in all countries and jurisdictions in which
Stilwell or any of its subsidiaries conduct business or was actively considering
for the conduct of business during the aforesaid five (5) year period.

     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.

          (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

                                      -7-
<PAGE>

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 his executive position, in each of the
following Stilwell plans (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

                                      -8-
<PAGE>

              (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 his 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.

     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

                                      -9-
<PAGE>

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 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

                                      -10-
<PAGE>

     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

              (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

                                      -11-
<PAGE>

     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.

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.

                                      -12-
<PAGE>

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 his 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 his annual base salary specified in
Paragraph 7(a) multiplied by (ii) three, 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 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

                                      -13-
<PAGE>

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 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 his 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 his employment with
Stilwell (the "Resignation"). Within five (5) days of such a Resignation,
Stilwell shall pay to Executive his full base salary through the effective date
of such Resignation, to the extent not theretofore paid,

                                      -14-
<PAGE>

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
     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;

                                      -15-
<PAGE>

              (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);

              (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

                                      -16-
<PAGE>

     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).

              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

                                      -17-
<PAGE>

     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 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.

                                      -18-
<PAGE>

              (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

              (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

                                      -19-
<PAGE>

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 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:

                                      -20-
<PAGE>

              (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 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,

                                      -21-
<PAGE>

     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
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

                                      -22-
<PAGE>

attorneys' 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 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.

                                      -23-
<PAGE>

     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 him at
EverGlades Farm, 12717 Mt. Olivet, Kansas City, MO 64166, 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 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,

                                      -24-
<PAGE>

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.

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

                                   STILWELL FINANCIAL, INC.

                                   By________________________________
                                   Name:  ___________________________
                                   Title: ___________________________

                                   EXECUTIVE

                                   ___________________________________
                                   Landon H. Rowland

                                      -25-

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