H&R BLOCK SHORT-TERM INCENTIVE PLAN
Section 1.1 Purpose.
The purpose of the H&R Block Short-Term Incentive Plan (the "Plan") is to attract and retain highly qualified
individuals as executive officers; to obtain from each the best possible performance in order to achieve particular
business objectives established for H&R Block, Inc. (the "Company") and its subsidiaries; and to include in their
compensation package a bonus component intended to qualify as performance-based compensation under
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"), which compensation would be
deductible by the Company under the Code.
Section 1.2 Administration.
The Plan shall be administered by the Compensation Committee of the Company's Board of Directors (the
"Committee") consisting of at least two members, each of which shall be an "outside director" within the meaning
Section 162(m) of the Code. The Committee shall adopt such rules and guidelines as it may deem appropriate in
order to carry out the purpose of the Plan. All questions of interpretation, administration and application of the
Plan shall be determined by a majority of the members of the Committee then in office, except that the Committee
may authorize any one or more of its members, or any officer of the Company, to execute and deliver documents
on behalf of the Committee. The determination of the majority shall be final and binding in all matters relating to
the Plan. The Committee shall have authority to determine the terms and conditions of the Awards granted to
eligible persons specified in Section 1.3 below.
Section 1.3 Eligibility.
Awards may be granted only to employees of the Company or any of its subsidiaries who are at the level of
Assistant Vice President or at a more senior level and who are selected for participation in the Plan by the
Committee. A qualifying employee so selected shall be a "Participant" in the Plan.