DEFERRED CASH AWARD AGREEMENT
                          -----------------------------
 
                  DST SYSTEMS, INC. 2005 EQUITY INCENTIVE PLAN
                          -----------------------------
 
     THIS  AGREEMENT,  is made and entered into this     day of          ,  2006
                                                     ---        ---------
(the  "Grant  Date"),  by  and  between  DST  SYSTEMS,   INC.   ("Company")  and
                      ("Employee").
---------------------
 
     The parties agree as follows:
 
1.   Award.
 
     a. Grant.  Pursuant to Company's 2005 Equity Incentive Plan, as amended and
interpreted  from  time to time  ("Plan"),  and to the  annual  incentive  award
program adopted thereunder  ("Program"),  Employee is hereby granted an award of
"Deferred  Cash" (as defined in Paragraph  1(c) hereof) and the other rights set
forth in this Agreement ("Award").
 
     b. Administration.  The Award is administered by the Compensation Committee
of the Company's Board of Directors or other  committee  designated by the Board
(the "Committee") or Company officer to which the Committee  delegates authority
as provided in the Plan.  The  Committee or its delegate may take any action the
Committee  or  delegate  deems  necessary  or  appropriate  to  administer  this
Agreement and the Award in accordance and consistent with Internal  Revenue Code
("Code") Section 409A and regulations and guidance issued thereunder.
 
     c.   Deferred   Cash   Amount.   The  amount  of                    Dollars
                                                        --------------
($           ),  which is the  deferred  element of the annual  incentive  award
  -----------
earned under the Program for the 2005  performance  period and is to be adjusted
pursuant to the terms of this  Agreement,  shall be referred to as the "Deferred
Cash".
 
2.   Restrictions.  During the "Initial  Deferral Period" described in Paragraph
3(a) hereof and through any  "Extended  Deferral  Date" (as defined in Paragraph
3(h)  hereof),  the  Award  shall  not be  transferable  (by  sale,  assignment,
disposition, gift, exchange, pledge, hypothecation,  or otherwise) other than as
provided in Paragraph 3(f) upon Employee's  death. Any attempted  disposition of
the Award, and the levy of any execution, attachment or similar process upon the
Award  prior to payment of  Deferred  Cash,  shall be null and void and  without
effect.
 
3.   Deferral, Payment and Forfeiture.
 
     a. Deferral Period.  The "Initial  Deferral Period" shall be from the Grant
Date to the earlier of December 1, 2008 (the "Vesting  Date") or the date (i) of
Employee's  death,  (ii) of Employee's  "Disability" (as that term is defined in
Code Section  409A(a)(2)(C)),  (iii) of Employee's  separation from service with
Company as determined under Code Section 409A(a)(2)(A)(i) ("409A Separation") on
or after age 59 1/2  ("Retirement"),  (iv)  Employee  reaches age 59 1/2 if such
date is on or  subsequent  to the date of a "Reduction  in Force" (as defined in
 
<PAGE>
 
Paragraph  3(h)  hereof);  or (v) either of the two  termination  of  employment
circumstances  set forth in Paragraph  3(d)(ii)  hereof  occurs  subsequent to a
"Change in Control" (as defined in  Paragraph 7 hereof).  Each of the events set
forth in clauses (i) through (v) above is an "Early Vesting Event".
 
     b.  Payment.  Subject to the  forfeiture  provisions  in this  Paragraph 3,
payment  of  Deferred  Cash  shall be made as of the  last day of the  "Deferral
Period"  or as soon as  administratively  practical  thereafter.  The  "Deferral
Period" is the Initial  Deferral  Period unless  Employee has timely  elected an
"Extended  Deferral  Date" (as  defined in  Paragraph  3(h)),  in which case the
Deferral  Period  is  from  the  Grant  Date  to  the  Extended  Deferral  Date.
Notwithstanding  the foregoing,  payment shall be delayed as required under Code
Section  409A(a)(2)(B)(i)  and made on the six month anniversary of the last day
of the Deferral Period or as soon as  administratively  practical  thereafter if
the Company's  Chief  Financial  Officer  ("CFO")  determines that Employee is a
"specified employee" as defined in Code Section 409A.
 
     c.  Forfeiture.  Subject  to  certain  exceptions  which  are set  forth in
Paragraph  3(d),  the Deferred Cash and rights to the Award shall be immediately
forfeited to Company without payment by Company of any consideration to Employee
if, during the Initial Deferral Period, Employee for any other reason other than
an Early Vesting Event is not  continuously  employed (as described in Paragraph
3(g) hereof). Notwithstanding any other provision of this Agreement, termination
for "Cause" (as defined in  Paragraph  3(h)  hereof) or violation of Paragraph 5
hereof will cause  forfeiture of the Deferred Cash and rights to the Award,  and
Employee  acknowledges  and  agrees  that such  forfeiture  can  occur  prior or
subsequent to any Deferral Period and to payment of the Deferred Cash.
 
     d. Exceptions to Forfeiture.  Notwithstanding the forfeiture  provisions of
Paragraph 3(c), this Paragraph 3(d) shall apply in the event of a "Business Unit
Divestiture"  (as defined in Paragraph  3(h)  hereof),  a Change in Control or a
Reduction in Force.
 
          i.  Business  Unit  Divestiture.  The  occurrence  of a Business  Unit
     Divestiture  shall not cause  vesting or  forfeiture  of the Award.  In the
     event of a Business Unit Divestiture,  the Award, if not earlier forfeited,
     shall vest on the Vesting Date, which shall trigger payment under Paragraph
     3(b).  Notwithstanding  the foregoing,  (a) Employee's  death or Disability
     prior to the Vesting Date shall trigger  payment under  Paragraph 3(b), and
     (b) the Award shall be forfeited  and no vesting or payment  shall occur if
     (i) Employee is terminated for Cause by the "Acquiring  Entity" (as defined
     in  Paragraph  3(h)  hereof)  prior to the  Vesting  Date or (ii)  prior to
     reaching age 59 1/2, Employee  voluntarily  terminates  employment with the
     Acquiring Entity such that Employee is no longer  continuously  employed by
     the  Acquiring  Entity as  provided in  Paragraph  3(g).  If,  prior to the
     Vesting  Date,  there is a  "Termination  Without  Cause"  (as  defined  in
     Paragraph 3(h) hereof) of Employee's  employment with Acquiring Entity, the
     Award shall not be forfeited and shall vest on the Vesting Date, triggering
     payment under  Paragraph  3(b).  Employee shall promptly  notify  Company's
     Award Plan  Administrator  subsequent  to a Business Unit  Divestiture  if,
     prior to the Vesting Date,  Employee's  employment with Acquiring Entity is
     terminated for any reason, and, until payment is made or forfeiture occurs,
     Employee  shall keep the Award Plan  Administrator  apprised of  Employee's
     residence address.
 
          ii. Change in Control.  The  occurrence of a Change in Control  during
     the Initial  Deferral  Period shall not cause  vesting or forfeiture of the
     Award.  Employee's
 
<PAGE>
 
     "Termination  Without  Cause" or  "Resignation  for Good  Reason"  (each as
     defined in Paragraph  3(h) hereof)  subsequent to the Change in Control and
     prior to the Vesting Date shall not cause forfeiture of the Award and shall
     be deemed an Early Vesting  Event causing the Award to vest and  triggering
     payment under Paragraph 3(b).
 
          iii.  Reduction in Force. The occurrence of a Reduction in Force shall
     not cause vesting or forfeiture of the Award.  In the event of Reduction in
     Force,  the Award  shall vest on the  Vesting  Date,  which  shall  trigger
     payment under  Paragraph  3(b);  provided,  however,  that if, prior to the
     Vesting Date, Employee's death or Disability occurs or Employee reaches age
     59 1/2,  vesting shall occur and payment of the Deferred Cash shall be made
     under Paragraph 3(b). Until payment is made,  Employee shall keep the Award
     Plan Administrator apprised of Employee's residence address.
 
     e. Deferred Cash Adjustment.  The amount of Deferred Cash shall be adjusted
from time to time on or prior to the end of the Deferral Period as determined by
the CFO to account  for  increases  or  decreases  in the value of  hypothetical
investment  of the  Deferred  Cash  elected  by  Employee  under the  investment
election procedures determined by the CFO.
 
     f.  Payments to Third  Party.  Upon death of  Employee  followed by a valid
written  request for  payment,  the  Deferred  Cash shall be paid to  Employee's
beneficiary named in a written beneficiary  designation filed with the Company's
Corporate  Secretary  or,  if  there  is  no  such  designated  beneficiary,  to
Employee's executor or administrator or other personal representative acceptable
to the Corporate Secretary.  Any request to pay any person or persons other than
Employee shall be accompanied  by such  documentation  as Company may reasonably
require,  including without limitation,  evidence satisfactory to Company of the
authority of such person or persons to receive the payment.
 
     g.  Continuity of Employment.  For purposes of this  Agreement,  employment
includes employment by:
 
          i.  Company  (or,  for  purposes of  Paragraph  3(d)(i) the  Acquiring
     Entity);
 
          ii. any  corporation  in an unbroken chain of  corporations  beginning
     with Company (or Acquiring Entity if applicable) or in an unbroken chain of
     corporations ending with Company (or Acquiring Entity if applicable) if, on
     the Grant  Date (or in the case of an  Acquiring  Entity on the date of the
     Business  Unit   Divestiture),   each  corporation   other  than  the  last
     corporation in the unbroken chain owns stock possessing fifty percent (50%)
     or more of the total  combined  voting power of all classes of stock in one
     of the other  corporations in such chain or any entity in which Company (or
     Acquiring Entity if applicable) has a direct or indirect equity interest of
     at least fifty percent (50%) ("Subsidiary");
 
          iii.  any  individual  or entity that  directly or through one or more
     intermediaries  controls or is controlled  by or under common  control with
     Company (or Acquiring Entity if applicable) ("Affiliate"); or
 
          iv. any entity in which  Company  directly  or  indirectly  owns stock
     possessing  such minimum  percentage of the total combined  voting power of
     all  classes  of stock  or owns
 
 
<PAGE>
 
     such minimum percentage of the capital interests or profit interests as the
     Committee from time to time  determines for purposes of this Paragraph 3(g)
     (also an "Affiliate").
 
     Employee  is not  deemed to have  terminated  employment  by, and the Award
shall not be forfeited solely as a result of, any change in Employee's duties or
position  or  Employee's  temporary  leave of absence  approved  by Company  (or
Acquiring  Entity if applicable).  To be  continuously  employed for purposes of
this Agreement,  Employee must be regularly and continuously employed by Company
(or Acquiring Entity if applicable) for more than twenty (20) hours per week and
more than five (5) months per year.
 
     h.  Paragraph 3  Definitions.  For purposes of  Paragraph 3, the  following
terms have the meanings set forth below:
 
          i. A  "Business  Unit  Divestiture"  is the  consummation  during  the
     Initial Deferral Period of a merger, reorganization, consolidation, or sale
     of assets, or stock or other transaction that the Committee determines is a
     business unit divestiture  event, that involves a Subsidiary (as defined in
     Paragraph 3(g)), joint venture, division or other business unit and results
     in a group  of  employees  of such  business  unit  being  employed  by the
     acquiring company ("Acquiring Entity") and, under Paragraph 3(g) hereof, no
     longer being employed by Company.
 
          ii.  The  "Extended  Deferral  Date" is (a) if  applicable,  each date
     subsequent  to  Retirement  that  Employee  shall  receive  the  payment of
     Deferred  Cash in an  installment  under a  timely  Retirement  installment
     election made pursuant to the terms,  conditions and procedures  adopted by
     the CFO; or (b) if Retirement installments are inapplicable, the earlier of
     (i) the  extended  deferral  date  timely  elected  and  fixed by  Employee
     pursuant to the terms,  conditions,  and procedures  adopted by the CFO, or
     (ii) the date of death, Disability,  or a 409A Separation subsequent to the
     Initial Deferral Period. Employee acknowledges and agrees that the Deferral
     Period may terminate,  and deferred  amounts may be paid, in the event of a
     409A  Separation  even  if  Employee  remains  employed  by  Company  under
     Paragraph  3(g).  For instance,  the Deferral  Period may end, any right to
     installments  subsequent to Retirement  may  terminate,  and payment may be
     made  under  Paragraph  3(b) in the event of a Business  Unit  Divestiture,
     Reduction in Force, or Employee's transfer to an entity owned less than 50%
     owned by Company.
 
          iii. A  "Reduction  in Force"  means a 409A  Separation  with  Company
     during the  Initial  Deferral  Period in which the Company  terminates  the
     employment of at least ten (10) employees in connection  with a single plan
     of employment reduction.
 
          iv. A  "Resignation  for Good  Reason"  means  Employee's  resignation
     subsequent to a Change in Control on not less than thirty (30) days written
     notice  to the  Company  Secretary,  effective  at the end of  such  notice
     period,  and for any of the following reasons occurring without  Employee's
     consent:
 
               (a) a change in the character of Employee's  assigned duties or a
          reduction in the level of Employee's work or responsibility;
 
 
<PAGE>
 
               (b) a reduction  in base salary or  incentive  bonus as in effect
          immediately prior to the Change in Control or in effect as a result of
          an increase subsequent to the Change in Control;
 
               (c) a failure by Company or its  successor  either to continue in
          effect  any  benefit  plans  made   generally   available  to  Company
          executives at Employee's  geographic  location  prior to the Change in
          Control  or to  provide  other  plans  under  which  compensation  and
          benefits are available in which Employee continues to participate on a
          basis at least  equivalent to his  participation  in the Company plans
          immediately prior to the Change in Control;
 
               (d) a failure by Company to timely  make to  Employee  payment of
          any unfunded amounts due under any Company benefit plan as a result of
          the Change in Control;
 
               (e) the  relocation  of the  principle  office at which  Employee
          worked  immediately  prior to the  Change  in  Control  to a  location
          outside of the  metropolitan  area where such  office was  located but
          only if relocation  requires  Employee to be based anywhere other than
          such metropolitan area (except for required travel on Company business
          to an extent  substantially  consistent  with  Employee's  obligations
          immediately prior to the Change in Control); or
 
               (f) any breach of an employment  agreement between Company or its
          successor and Employee.
 
          v.  Termination  Without Cause and for Cause. A  "Termination  Without
     Cause" means a termination of Employee's  employment  under  Paragraph 3(g)
     that is not for Cause.  Termination  of  employment  for  "Cause"  includes
     termination  for  any  act  of  dishonesty,   willful   misconduct,   gross
     negligence,  intentional  or  conscious  abandonment  or  neglect  of duty,
     criminal activity,  fraud or embezzlement,  any unauthorized  disclosure or
     use of material confidential  information or trade secrets, or violation of
     any non-compete or non-disclosure agreement to which Employee is subject.
 
4.   Taxes.  Employee  understands  and agrees that  Company may  withhold  from
payroll  or other  amounts  Company  owes or will owe  Employee  any  applicable
withholding, payroll and other required tax amounts due on the Vesting Date, the
date of payment of Deferred Cash or any other applicable  date.  Employee agrees
to pay  Company  any such  amounts  within  the  deadline  imposed by Company if
withholding is not effected by the Company for any reason.  Employee understands
and agrees that certain tax  withholding  amounts may be due prior to payment of
the Deferred Cash. For instance, withholding amounts may be due upon (i) vesting
even though  payment of Deferred  Cash is delayed  because an Extended  Deferral
Date has been elected, (ii) the Grant Date if Employee is at least age 59 1/2 on
such date, (ii) Employee  reaching age 59 1/2 during a Deferral Period, or (iii)
a Reduction in Force.  Employee  acknowledges and agrees that Company may deduct
amounts due  hereunder  from payroll or other  amounts  Company owes or will owe
Employee.
 
 
 
5.   Violation of Non-compete,  Nonuse and  Nondisclosure  Provisions.  Employee
acknowledges   that   Employee's   agreement  to  this  Paragraph  5  is  a  key
consideration  for the  grant of the  Award.  Employee  hereby  agrees  with the
Company as follows:
 
     a.  Non-Compete.  During the period that Employee is employed by "Employer"
(as defined in Paragraph  5(h)),  and thereafter  during or any period for which
Employee is  receiving,  by agreement of Employee and Employer,  any  separation
payment(s)  (whether  made in lump sum or  installments)  or in which a Deferred
Cash vesting period continues to apply, Employee agrees that, without consent of
Employer,  Employee will not engage  directly or  indirectly  within any country
where Employee was employed by Employer,  in any manner or capacity, as advisor,
consultant, principal, agent, partner, officer, director, employee or otherwise,
in any business or activity which is competitive with any business  conducted by
the Company,  a  Subsidiary  (as defined in  Paragraph  3(g)) or  Affiliate  (as
defined in Paragraph 5(h)); provided,  however, that the Committee may determine
as provided in  Paragraph 6 hereof that such  obligation  shall not apply to any
period after  termination of employment if such termination was on the date of a
Change in Control or within eighteen (18) months subsequent to such date.
 
     b.  Non-Solicitation.  Employee further agrees that during the twelve month
(12)  period  subsequent  to  termination  of  employment  with  Employer,   and
thereafter  in any period in which a Deferred Cash vesting  period  continues to
apply,  Employee  will not solicit any  employee of  Company,  a  Subsidiary  or
Affiliate  to leave  such  employment  to become  employed  by a  competitor  of
Company, a Subsidiary or Affiliate or solicit or contact any person, business or
entity which was a customer of Company, a Subsidiary or Affiliate at the time of
such  termination  of employment,  or any  prospective  customers of Company,  a
Subsidiary or Affiliate to which  Company,  a Subsidiary or Affiliate has made a
proposal to do business within the twelve month (12) period prior to the date of
termination of employment, for purposes of selling goods or services of the type
sold  or  rendered  by  Company,  a  Subsidiary  or  Affiliate  at the  time  of
termination of employment.
 
     c.  Ownership  of  Confidential  Information,  Inventions  and  Works.  All
"Confidential  Information",  "Inventions"  and  "Works"  (each  as  defined  in
Paragraph  5(h)) and  documents  and  other  materials  containing  Confidential
Information,  Inventions  and  Works are the  exclusive  property  of  Employer.
Employee  shall make full and prompt  disclosure to Employer of all  Inventions.
Employee assigns and agrees to assign to Employer all of Employee's right, title
and interest in Inventions.  Employee acknowledges and agrees that all Works are
"works  made for  hire"  under the  United  States  copyright  laws and that all
ownership  rights  vest  exclusively  in  Employer  from the time  each  Work is
created.  Should a court of  competent  jurisdiction  hold  that a Work is not a
"work made for hire,"  Employee  agrees to assign and hereby assigns to Employer
all of  Employee's  right,  title and  interest  in the  Work.  In the event any
Invention or Work may be construed to be non-assignable,  Employee hereby grants
to Employer a perpetual, royalty-free, non-exclusive license to make, use, sell,
have made, and/or  sublicense such  non-assignable  Invention or Work.  Employee
agrees to assist  Employer  to obtain and vest its title to all  Inventions  and
Works, and any patent or copyright  applications or patents or copyrights in any
country,   by  executing  all  necessary  or  desirable   documents,   including
applications for patent or copyright and assignments  thereof,  during and after
employment, without charge to Employer, at the request and expense of Employer.
 
     d.  Recordkeeping  and Return of Confidential  Information,  Inventions and
Works.  Employee agrees to maintain  regular records of all Inventions and Works
developed or written
 
<PAGE>
 
while  employed with  Employer.  Employee  agrees to comply with any  procedures
disseminated by Employer with respect to such recordkeeping.  Employee agrees to
provide such records to Employer  periodically  and/or upon request by Employer.
Employee agrees to return to Employer all Confidential  Information,  Inventions
and Works in any tangible  form, and copies thereof in the custody or possession
of Employee, and all originals and copies of analyses, compilations,  studies or
documents pertaining to any Confidential  Information,  Inventions and Works, in
whatever  form or medium,  upon a request by Employer,  or upon  termination  of
employment.
 
     e. Nonuse and  Nondisclosure.  Employee  shall not,  either during or after
Employee's  employment  by  Employer,  disclose  any  Confidential  Information,
Inventions  or Works to any other person or entity  outside of Employer,  or use
any  Confidential  Information,  Inventions or Works for any purpose without the
prior written approval of an officer of Employer,  except to the extent required
to discharge Employee's duties assigned by Employer.
 
     f. Subsequent  Employer  Notice.  During the term of Employee's  employment
with Employer, and for a period of one year thereafter or of any period in which
the  non-compete  or  non-solicitation  obligation  set  forth  herein  applies,
Employee agrees to identify to potential subsequent  employer(s),  partner(s) or
business  associate(s)  Employee's  obligations  under this  Agreement  prior to
committing  to  a  position  with  the  employer(s),   partner(s),  or  business
associate(s).  Employee agrees that Employer may, at its  discretion,  provide a
copy  of  Paragraph  5  of  this  Agreement  to  any  of  Employee's  subsequent
employer(s),  partner(s), or business associate(s), and may notify any or all of
them of Employee's  obligations  under this Agreement.  For a period of one year
after the term of  Employee's  employment by Employer,  Employee  agrees to give
written notice to the Human Resources  Department of Employer of the identity of
any subsequent employer(s), partner(s), or business associate(s) of Employee.
 
     g. Remedies.  Notwithstanding  anything to the contrary herein, if Employee
violates any  provisions of this  Paragraph 5, whether prior to, on or after the
Deferral  Period,  then in addition to all other remedies  available to Company,
the Award shall be immediately  forfeited to Company, or, if payment of Deferred
Cash has been made,  Employee shall  promptly  reimburse to Company the Deferred
Cash;  provided,  however,  that no  consideration  shall be paid by  Company to
Employee  for the  forfeiture  of the Award or for the  reimbursement.  Employee
agrees that the provisions of Paragraph 5 hereof are necessary for protection of
the  business  of Company and that  violation  of such  provisions  is cause for
termination  of  employment  and would cause  irreparable  injury to Company not
adequately  remediable  in  damages.  Employee  agrees  that any  breach  of its
obligations  under  Paragraph 5 hereof shall, in addition to any other relief to
which Company may be entitled, entitle the Company to temporary, preliminary and
final injunctive relief against further breach of such  obligations,  along with
attorneys'  fees and other  costs  incurred by Company in  connection  with such
action.
 
     h.  Paragraph 5  Definitions.  For purposes of  Paragraph 5, the  following
terms have the meanings set forth below:
 
          i.  "Employer"  means any  Company-related  entity  that has  employed
     Employee,  whether it be Company,  a  Subsidiary  (as defined in  Paragraph
     3(g)), or an Affiliate (as defined in Paragraph 3(g)) and also for purposes
     of this  Paragraph 5 including any entity in which Company has an direct or
     indirect equity interest of at least twenty-five percent (25%)).
 
<PAGE>
 
          ii.  "Confidential  Information"  means non-public  information  about
     Company, Subsidiaries and Affiliates, including without limitation:
 
               (a)  inventions  not  disclosed  to  the  public  by  Company,  a
          Subsidiary or Affiliate,  products, designs, prototypes, data, models,
          file   formats,   interface   protocols,   documentation,    formulas,
          improvements,  discoveries,  methods, computer hardware,  firmware and
          software, source code, object code, programming sequences, algorithms,
          flow  charts,  test  results,  program  formats  and  other  works  of
          authorship relating to or used in the current or prospective  business
          or operations of Company, Subsidiaries and Affiliates, all of which is
          Confidential  Information,  whether  or  not  patentable  or  made  on
          Employer premises or during normal working hours; and
 
               (b)  business  strategies,   trade  secrets,  pending  contracts,
          unannounced  services and products,  financial  projections,  customer
          lists,   information  about  real  estate  Company,  a  Subsidiary  or
          Affiliate is interested in acquiring, and non-public information about
          others obtained as a consequence of employment by Employer,  including
          without limitation  information about customers and their services and
          products, the account holders or shareholders of customers of Company,
          Subsidiaries and Affiliates, and associates,  suppliers or competitors
          of Company, Subsidiaries and Affiliates.
 
          iii. "Inventions" mean all discoveries,  improvements,  and inventions
     relating to or used in the current or prospective business or operations of
     Company, Subsidiaries and Affiliates,  whether or not patentable, which are
     created,  made,  conceived  or reduced to  practice  by  Employee  or under
     Employee's direction or jointly with others during Employee's employment by
     Employer,  whether or not during normal working hours or on the premises of
     Employer.
 
          iv.  "Works"  mean all  original  works fixed in a tangible  medium of
     expression by Employee or under Employee's direction or jointly with others
     during  Employee's  employment  by Employer,  whether or not during  normal
     working  hours or on the premises of  Employer,  and relating to or used in
     the current or prospective business or operations of Employer.
 
     i. Survival.  Employee's  obligations in this Paragraph 5 shall survive and
continue  beyond the Deferral  Period,  beyond any forfeiture of the Award,  and
beyond any termination or expiration of the Agreement for any reason.
 
6.   Committee  Action on  Non-Compete  Obligation in View of Change in Control.
Notwithstanding  any provision of this Agreement to the contrary,  if Company is
contemplating  a  transaction  (whether  or not  Company  is a  party  to it) or
monitoring an event that would cause Company to undergo a Change in Control, the
Committee (as constituted  before such Change in Control) may determine that the
non-compete obligation set forth in Paragraph 5(a) hereof shall not apply to any
period after  termination of employment if such termination was on the date of a
Change in Control or within eighteen (18) months subsequent to such date.
 
<PAGE>
 
7.   Change in Control.
 
     a. Change in Control Events.  For purposes of this Agreement,  a "Change in
Control" shall be deemed to have occurred if:
 
          i. the  "Incumbent  Directors"  (as defined in  Paragraph  7(b)hereof)
     cease for any reason to constitute at least  seventy-five  percent (75%) of
     the directors of Company then serving;
 
          ii.  any  "person"  (as  such  term is used in  Paragraphs  13(d)  and
     14(d)(2) of the Exchange Act of 1934  ("Exchange  Act")) other than Company
     or any  majority-owned  Subsidiary (as defined in Paragraph 7(b) hereof) of
     Company,   or  an  employee   benefit   plan  of  the  Company  or  of  any
     majority-owned  Subsidiary  of Company  shall have  become the  "beneficial
     owner" (as  defined in Rule  13d-3  under the  Exchange  Act)  directly  or
     indirectly,  of securities of Company  representing twenty percent (20%) or
     more  (calculated  in  accordance  with Rule 13d-3) of the combined  voting
     power of Company's then outstanding voting securities;  provided,  however,
     that a person's  becoming  such a beneficial  owner shall not  constitute a
     Change in Control if such person is party to an  agreement  that limits the
     ability of such person and its  affiliates  (as defined in Rule 12b-2 under
     the Exchange Act) to obtain and exercise  control over the  management  and
     policies of Company;
 
          iii.  a   "Reorganization   Transaction"   (as  defined  in  Paragraph
     7(b)hereof) is consummated,  other than a Reorganization  Transaction which
     results in the "Voting Securities" (as defined in Paragraph 7(b) hereof) of
     Company  outstanding  immediately  prior  thereto  continuing  to represent
     (either  by  remaining  outstanding  or  by  being  converted  into  Voting
     Securities  of the  surviving  entity) at least sixty  percent (60%) of the
     total voting power  represented by the Voting  Securities of such surviving
     entity outstanding immediately after the Reorganization Transaction, if the
     voting  rights  of  each  Voting  Security  relative  to the  other  Voting
     Securities were not altered in the Reorganization Transaction; or
 
          iv. the stockholders of Company approve a plan of complete liquidation
     of the Company, other than in connection with a Reorganization Transaction.
 
     Notwithstanding  the occurrence of any of the foregoing events, a Change in
Control  shall not occur with  respect to Employee if, in advance of such event,
Employee  agrees in writing  that such event  shall not  constitute  a Change in
Control.
 
     b. Definitions.
 
     For purposes of the Paragraph  7(a), the following  terms have the meanings
set forth below:
 
          i. "Affiliate"  means any Person that directly or indirectly,  through
     one or more  intermediaries,  controls  or is  controlled  by,  or is under
     common control with, Company.
 
          ii. "Incumbent  Directors" means (a) an individual who was a member of
     Company's  Board of Directors (the "Board") on May 10, 2005, the "Effective
     Date" of the
 
<PAGE>
 
     Plan; or (b) an individual  whose  election,  or nomination for election by
     Company's  stockholders,  was  approved by a vote of at least  seventy-five
     percent  (75%) of the  members  of the Board  then still in office who were
     members  of the Board on such  Effective  Date;  or (c)  individuals  whose
     election,  or  nomination  for  election  by  Company's  stockholders,  was
     approved by a vote of at least seventy-five percent (75%) of the members of
     the Board then still in office who were elected in the manner  described in
     (ii)(a) or (ii)(b)  above;  provided that no director whose election was in
     connection with a proposed  transaction  which, if consummated,  would be a
     Change in Control shall be an Incumbent Director.
 
          iii. "Person" means any individual, sole proprietorship,  corporation,
     partnership,   joint  venture,  limited  liability  company,   association,
     joint-stock  company,  trust,  unincorporated  organization,   institution,
     public benefit corporation, entity or government instrumentality, division,
     agency, body or department.
 
          iv. "Related Party" means (a) a majority-owned  Subsidiary of Company;
     or  (b)  an  employee  or  group  of   employees   of  Company  or  of  any
     majority-owned  Subsidiary of Company;  or (c) an employee  benefit plan of
     Company  or  of  any  majority-owned   Subsidiary  of  Company;  or  (d)  a
     corporation  owned directly or indirectly by the stockholders of Company in
     substantially the same proportion as their ownership of the voting power of
     Voting Securities of Company.
 
          v.  "Reorganization  Transaction"  means  a  merger,   reorganization,
     consolidation, or similar transaction or a sale of all or substantially all
     of  Company's  assets  other  than any such sale  which  would  result in a
     Related  Party owning or  acquiring  more than fifty  percent  (50%) of the
     assets owned by Company immediately prior to the sale.
 
          vi. "Subsidiary" means an Affiliate controlled by Company directly, or
     indirectly, through one or more intermediaries.
 
          vii.  "Voting  Securities" of a corporation  means  securities of such
     corporation  that  are  entitled  to  vote  generally  in the  election  of
     directors,  but  not  including  any  other  class  of  securities  of such
     corporation  that may have voting  power by reason of the  occurrence  of a
     contingency
 
8.   General.
 
     a. No Employment  Contract.  Except to the extent the terms of any separate
written  employment  contract between Employee and Company may expressly provide
otherwise,   Company  shall  be  under  no  obligation  to  continue  Employee's
employment  with Company for any period of specific  duration and may  terminate
such employment at any time, for Cause or as a Termination Without Cause.
 
     b.  Compliance  With  Certain  Laws  and  Regulations.   If  the  Committee
determines that the consent or approval of any  governmental  regulatory body or
that  any  action  with  respect  to the  Award is  necessary  or  desirable  in
connection  with the granting of the Award or the payment of the Deferred  Cash,
Employee  shall supply  Company with such  representations  and  information  as
Company may request and shall otherwise  cooperate with Company in obtaining any
such approval or taking such action.
 
<PAGE>
 
     c.  Construction  and No  Waiver.  Notwithstanding  any  provision  of this
Agreement,  the granting of the Award, the restrictions thereon, and the payment
of the  Deferred  Cash  are  subject  to the  provisions  of the  Plan  and  any
procedures  promulgated thereunder by the Committee or its delegate. The failure
of Company in any  instance to  exercise  any of its rights  granted  under this
Agreement shall not constitute a waiver of any other rights that may arise under
this Agreement.
 
     d. Notices.  Any notice  required to be given or delivered to Company under
the terms of this Agreement shall be in writing and addressed to Company in care
of its Corporate  Secretary at its corporate  offices,  and such notice shall be
deemed  given only upon  actual  receipt by Company.  Any notice  required to be
given or delivered to Employee  shall be in writing and addressed to Employee at
the address indicated below Employee's  signature line on this Agreement or such
other address  specified in a written  notice given by Employee to Company,  and
all such notices  shall be deemed to have been given or delivered  upon personal
delivery  or upon  deposit  in the  U.S.  mail,  postage  prepaid  and  properly
addressed to the party to be notified.
 
     e.  Governing  Law.  This  Agreement  shall be governed by and construed in
accordance  with the laws of Delaware  without  reference to its  principles  of
conflicts of law.
 
     f. Entire Agreement.  This Agreement  contains the entire agreement between
the parties with respect to the subject matter hereof,  and supersedes all prior
agreements or understandings between the parties relating thereto.
 
     g.  Amendment.  This  Agreement may be amended in writing  executed by both
parties.  This  Agreement may also be amended,  without prior notice to Employee
and without  Employee's  consent,  by the  Committee in the event the  Committee
deems it  necessary  or  appropriate  to make such  amendments  for  purposes of
compliance  with  the  American  Jobs  Creation  Act of 2004 or  regulations  or
guidance issued pursuant thereto, including Code Section 409A.
 
     h.  Acknowledgement.  The Award and this Agreement are subject to the terms
and  conditions  of the Plan.  The Plan is  incorporated  in this  Agreement  by
reference and all capitalized  terms used in this Agreement have the meaning set
forth in the Plan,  unless this  Agreement  specifies a  different  meaning.  By
signing this Agreement,  Employee accepts this award and  acknowledges  that the
Award is subject to all the terms and provisions of the Plan and this Agreement.
Employee further agrees to accept as binding, conclusive and final all decisions
and interpretations by the Committee of the Plan or this Agreement regarding any
issues  arising  thereunder,  including  without  limitation  all  decisions and
interpretations related to Code Section 409A and regulations and guidance issued
thereunder.
 
 
<PAGE>
 
 
 
     This  Agreement  will not be deemed to be binding or effective  until fully
executed  by both  Employee  and an  authorized  representative  of  Company  as
reflected on both signature pages attached hereto.
 
     IN WITNESS WHEREOF, Employee executed this Agreement as of the day and year
first above written.
 
                                    EMPLOYEE
 
 
                                    -----------------------------------------
                                    (Employee signature)
 
 
                                    Print name:
                                               ------------------------------
 
                                    Print Address:
                                                  ---------------------------
 
                                                  ---------------------------
 
 
 
 
<PAGE>
 
 
 
 
     IN WITNESS  WHEREOF,  DST  Systems,  Inc.  has caused this  Agreement to be
executed on its behalf by and through its duly authorized  officer as of the day
and year first above written.
 
 
                               DST SYSTEMS, INC.
 
 
                               By:
                                  (Signature of authorized DST representative)
 
 
</TEXT>
</DOCUMENT>