Document:

Exhibit 10.2

 

JANUS CAPITAL GROUP INC.

 

2010 LONG-TERM INCENTIVE STOCK PLAN

 

PLAN SUMMARY

 

This
document constitutes part of a prospectus covering securities that have or will
be registered under the Securities Act of 1933.

 

The
date of this Prospectus is April 29, 2010.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Introduction

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Overview
  of the Plan

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Certain
  Federal Income Tax Consequences

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Other
  Matters Relating to the Plan

  	
   

  	
  9

  

 

DOCUMENTS INCORPORATED BY REFERENCE

 

The
following documents previously filed with the Securities and Exchange
Commission (the “SEC”) by Janus Capital Group Inc. (the “Company”) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) are
incorporated by reference in this Registration Statement:

 

a)              The Annual Report on Form 10-K
for the year ended December 31, 2009 filed by the Registrant on February 24,
2010;

 

b)             All other reports filed by
the Registrant pursuant to Section 13(a) or 15(d) of the
Exchange Act, since the end of the fiscal year covered by the Annual Report on
Form 10-K referred to in paragraph (a) above; and

 

c)              The description of the
Registrant’s common stock contained in Exhibit 99.1 of its Registration
Statement on Form 10 (File No. 001-15253) filed on June 15,
2000, pursuant to Section 12 of the Exchange Act, and the Rights Agreement
dated June 14, 2000 and filed as Exhibit 4.2.1 to the Company’s
Registration Statement on Form 10 dated June 15, 2000, including any
amendments or supplements filed for the purpose of updating such descriptions.

 

All
documents subsequently filed by the Registrant pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities remaining unsold, shall be deemed to
be a part hereof from the date of filing such documents.

 

The documents incorporated by reference contain important information
about, and the financial statements of, the Company that you should review prior
to making a decision to invest in the Common Stock.  This document, together with the documents
incorporated or to be incorporated by reference, is a Prospectus relating to
the Common Stock.  The Prospectus
provides you with pertinent information about the Company so that you may make
an informed decision to acquire the Common Stock offered through the Plan.

 

 

A
Grantee may request, orally or in writing, a copy of the documents
incorporated, or to be incorporated, by reference in the Company’s Registration
Statement relating to this Prospectus, a copy of the Company’s latest Annual
Report to Stockholders, or copies of any rules adopted by the Compensation
Committee (“Committee”), without charge, by contacting:

 

	
   

  	
   

  	
  Janus
  Capital Group Inc.

  	
   

  
	
   

  	
   

  	
  Attention:
  Corporate Secretary

  	
   

  
	
   

  	
   

  	
  151
  Detroit Street

  	
   

  
	
   

  	
   

  	
  Denver,
  Colorado 80206

  	
   

  
	
   

  	
   

  	
  # # #

  	
   

  

 

ii

 

JANUS CAPITAL GROUP INC.

2010 LONG-TERM INCENTIVE STOCK PLAN

(EFFECTIVE AS OF APRIL 29, 2010)

 

SUMMARY OF THE PLAN

 

INTRODUCTION

 

Capitalized terms are used in this Plan Summary to indicate that
certain words have specific meanings. 
These meanings appear immediately preceding the first time the
capitalized term appears in parentheses, are contained in the “Definitions” section
of the 2010 Long-Term Incentive Stock Plan (hereinafter called the “Plan”) or
are contained in the specific Award Agreements which evidence the granting of
Awards.

 

THIS
DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THE INFORMATION DESCRIBED IN THE PROSPECTUS
IS NOT NECESSARILY COMPLETE AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
THE PLAN, ANY RULES ADOPTED BY THE COMMITTEE (AS DEFINED BELOW) AND APPLICABLE
AWARD AGREEMENTS.

 

What is
the purpose of the 2010 Long-Term Incentive Stock Plan?

 

The
Company adopted the Plan in order to allow selected employees, directors and
consultants of the Company and its Subsidiaries to acquire or increase equity
ownership in the Company, thereby strengthening their commitment to the success
of the Company and stimulating their efforts on behalf of the Company, and to
assist the Company and its Subsidiaries in attracting and retaining employees,
directors and consultants.

 

Is the
Plan subject to ERISA or Section 401(a) of the Internal Revenue Code?

 

The
Company believes that the Plan is not subject to any provisions of the Employee
Retirement Income Security Act of 1974 (“ERISA”), and the Plan is not qualified
under Section 401(a) of the Internal Revenue Code.

 

Principal
Office and Telephone Number.  The principal executive office of the Company
is located at 151 Detroit Street, Denver, Colorado 80206; telephone is (303)
691-3905.

 

Funding
of the Plan.  Benefits
payable under the Plan to any person are paid directly by the Company.  The Company is not required to fund or
otherwise segregate assets to be used for payment of benefits under the
Plan.  It is intended to be an unfunded
plan.

 

1

 

OVERVIEW
OF THE PLAN

 

Who is
eligible to participate in the Plan?

 

Any
employee (including officers) or director of, or consultant to, the Company or
any Subsidiary is eligible to receive an Award under the Plan.  An Eligible Person who receives any Award, as
determined by the Committee, is referred to as a Grantee.

 

What type of Awards may be granted under the Plan?

 

The
Plan authorizes the issuance of the following Awards: Options (including
Incentive Stock Options), Restricted Shares (awarded as shares of common stock
of the Company (“Shares”) or share units representing the equivalent of one
Share (“Share Units”), stock appreciation rights (“SARs”), unrestricted Shares
or Dividend Equivalents (collectively, the “Awards”).  The Committee may not grant Awards under the
Plan relating, in the aggregate, to more than 4,400,000 Shares; provided,
however, that the total number of Shares for which Awards may be granted to any
Grantee in any calendar year may not exceed 500,000.  The Shares subject to Awards under the Plan
may be treasury or newly-issued Shares. 
This number is subject to adjustment in certain circumstances.

 

How do
I know that I have been granted an Award?

 

Awards
granted under the Plan will be evidenced by a written agreement between the
Grantee and the Company (the “Award Agreement”).  The Award Agreement will, together with the
Plan, set forth the terms and conditions of any Award.  The Award Agreement does not have to be the
same for each Grantee.

 

What is
an Option?

 

A
Grantee of an Option is entitled, subject to its terms, to buy a specified
number of Shares at a specified exercise price (the “Option Price”) during a
specific period, all as determined by the Committee in accordance with the Plan
and applicable law and upon terms and conditions set forth in the relevant
Award Agreement.  As a result, a Grantee
of an Option has the potential to realize compensation equal to the spread
between the Fair Market Value of the Shares and the Option Price at the time the
Grantee exercises the Option.

 

What is
the Option Price?

 

The
Option Price of an Option is the price per Share specified in the Award
Agreement that a Grantee will have to pay in order to buy the Shares covered by
his or her Option.  Under the terms of
the Plan, the Option Price generally is required to be at least equal to the
Fair Market Value of the Shares on the date the Committee grants the Option.

 

2

 

When may I exercise an Option?

 

Any
Option granted under the Plan will become exercisable upon the occurrence of
the conditions as the Committee determines in its discretion.  For example, an Award Agreement may condition
the exercisability of an Option on the passage of time or the Company’s
attainment of performance goals based on certain financial measures, such as
Company earnings (either in the aggregate or on a per-share basis), net income
(before or after taxes), operating income, gross revenues, the Fair Market
Value of the Shares or some combination of conditions.  Such conditions will be set forth in the
relevant Award Agreement.

 

Once
exercisable, a Grantee may exercise the Option at any time until the Option is
terminated.  An Option generally
terminates on the earliest of:

 

(a)          the term
specified in the Award Agreement;

(b)         the occurrence
of certain events specified in the Award Agreement; or

(c)          7 years after
the grant date of the Option.

 

How do
I exercise an Option?

 

The
Grantee of an Option may exercise the Option and acquire up to the total number
of Shares subject to the Option through Charles Schwab or other
Company-designated broker (the “Designated Broker”) pursuant to instructions
outlined in the applicable Grant Agreement.

 

A
Grantee may pay, subject to approval by the Committee, the Option Price by any
one or a combination of:

 

(a)          cash, personal check or wire transfer;

(b)         Shares, valued at their Fair Market Value on the
date of exercise;

(c)          subject to certain restrictions, Restricted Shares,
each Share valued at the Fair Market Value of a Share on the date of exercise;

(d)         subject to applicable law, pursuant to procedures
approved by the Committee, through the sale of the Shares acquired on exercise
of the Option, valued at their Fair Market Value on the date of exercise,
sufficient to pay for the Shares, together with, if requested by the Company,
the amount of federal, state, local or foreign withholding taxes payable by
Grantee by reason of the exercise; or

(e)          if approved by the Committee, in its sole discretion
and subject to applicable law, a loan or guarantee of a loan from the Company
for all or any portion of the exercise price of the Option.

 

As
soon as practical after receipt of such payment, the Company will transfer the
Shares into the Grantee’s Company-designated brokerage account.  The Committee may, if it deems it appropriate
to comply with applicable securities laws or the requirements of any exchange
upon which the Shares are then listed, impose restrictions on the Shares
acquired upon the exercise of an Option, including placing a legend on the
certificate and obtaining written representations from the Grantee.

 

3

 

What
are Stock Appreciation Rights?

 

Like Options, a “SAR” is
granted with respect to a specific number of Shares and may be exercised when
vested at a specific Strike Price (as defined in the Plan).  Under the Plan, the Committee may grant
Freestanding SARs, Tandem SARs, or a combination of both.  A Freestanding SAR is granted independently
of any other Award.  For Freestanding
SARs, the Strike Price generally is required to be at least equal to the Fair
Market Value of the Shares on the date the Committee grants the Freestanding
SAR.  A Tandem SAR is granted in
connection with a related Option.  Tandem
SARs may be exercised for all or part of the Shares subject to the related
Option upon the surrender of the right to exercise the equivalent portion of
the related Option (and, similarly, when a Share is purchased under the related
Option, the Tandem SAR shall similarly be canceled).  A Tandem SAR may be exercised only with
respect to the Shares for which its related Option is then exercisable.  Apart from any other provision of the Plan to
the contrary, with respect to a Tandem SAR, (1) the Tandem SAR will expire
no later than the expiration of the underlying Option and (2) the value of
the payout with respect to the Tandem SAR may be for no more than the
difference between the Option Price of the underlying Option and the Fair
Market Value of the Shares subject to the underlying Option at the time the Tandem
SAR is exercised.

 

Upon exercise of a SAR, the
Grantee will be entitled to receive payment from the Company in an amount
determined by multiplying (1) the excess, if any, of the Fair Market Value
of a Share on the date of exercise over the Strike Price by (2) the number
of Shares with respect to which the SAR is exercised.  The Committee shall determine the number of
SARs granted to each Grantee, and, consistent with the Plan, the other terms
and conditions pertaining to the SARs. 
Generally, all SARs will terminate after the seven (7) year period
from the date of the grant.  SARs may be
payable in cash, Shares or in any combination of both.

 

What are Restricted Shares?

 

The Grantee of Restricted Shares is awarded Shares
or Share Units that are subject to forfeiture if certain conditions specified
in the Award Agreement are not satisfied. 
A Share Unit is a bookkeeping entry representing the equivalent of one
share of Common Stock that is payable in the form of Shares, cash or any
combination of both.

 

What
are the restrictions on the Restricted Shares?

 

The
Committee may impose conditions and/or restrictions on any Restricted Shares
granted pursuant to the Plan as it may deem advisable, including restrictions
based upon the achievement of Performance Measures (as defined below), the
achievement of individual performance goals, time-based restrictions on
vesting, and/or restrictions under applicable securities laws.  If vesting conditions relate exclusively to
the passage of time and continued employment, then, except for grants to
consultants, directors or newly hired employees, the time period will not be
less than 36 months, with one-third of the Award vesting every 12 months from
the date of the Award, subject to the terms of the Plan.

 

4

 

“Performance
Measures” may include (a) stock price; (b) market share; (c) sales
(gross or net); (d) asset quality; (e) non-performing assets; (f) earnings
per share; (g) return on equity; (h) costs; (i) operating income;
(j) net income; (k) marketing-spending efficiency; (l) return on
operating assets; (m) return on assets; (n) core non-interest income;
(o) fund performance; (p) pre-tax margins; (q) pre-tax income; (r) levels
of cost savings; (s) operating margin; (t) flows into Janus products
(gross or net); (u) earnings; (v) earnings before interest, taxes,
depreciation and amortization; and/or (w) improvements in productivity and
objective operating goals.

 

Can I receive unrestricted Shares?

 

A Grantee can receive Shares
issued free of transfer restrictions and forfeiture conditions and be entitled
all the rights of a shareholder (subject to Rule 144 restrictions, if
applicable). Shares may be granted for past services, in lieu of bonus or other
cash compensation, as director compensation or for any other valid purpose as
determined by the Committee.

 

What are Dividend Equivalents?

 

In
the discretion of the Committee, the recipient of an Award may be entitled to
receive, currently or on a deferred basis, cash, stock or other property
dividends, or cash payments in amounts equivalent to cash, property, or other
property dividends on shares of Common Stock (“Dividend Equivalents”).  The Committee may provide that the amounts
(if any) are deemed reinvested in additional shares or otherwise
reinvested.  If the payment of dividends
or Dividend Equivalents would be subject to Section 409A of the Code, no
payment may be made if it would fail to comply with the requirements set forth
in Section 409A of the Code.  No
Dividend Equivalents will be paid with respect to Awards that become vested
based on the achievement of Performance Measures or other performance goals.

 

Compliance
with Section 409A of the Code

 

All Awards granted under the
Plan that are subject to Section 409A of the Code (governing the taxation
of non-qualified deferred compensation) will be made in a manner intended to be
compliant with the requirements Section 409A and the Plan will at all
times be interpreted and administered to be in compliance with Section 409A
of the Code.

 

5

 

CERTAIN
FEDERAL INCOME TAX CONSEQUENCES

 

The discussion below is a general summary of the principal federal
income tax consequences of the grant and exercise of Awards under the Plan and
any subsequent disposition of Shares received upon exercise of Options.  The discussion is based on the U.S.  federal income tax laws in effect as of the
date of this Prospectus and is not intended to constitute tax advice, nor does
this discussion address possible state, local or foreign tax consequences or
estate or gift tax consequences.  This
discussion does not address any specific individual’s tax situation.  Further, the description is subject to
changes in law or regulation, some of which may be retroactive.  Participants are urged to consult their own
tax advisors.

 

Options

 

An Incentive Stock Option
results in no taxable income to the Grantee or a deduction to the Company at
the time it is granted or exercised. 
However, the excess of the Fair Market Value of the Shares acquired over
the Option Price is an item of adjustment in computing the alternative minimum
taxable income of the Grantee.  If the
Grantee holds the Shares received as a result of an exercise of an Incentive
Stock Option for at least two years from the date of the grant and one year
from the date of exercise, then the gain realized on disposition of the Shares
is treated as a long-term capital gain. 
See “Capital Gains and Losses” below. 
If the shares are disposed of during this period, however (i.e., a “disqualifying
disposition”), then the Grantee will include in income, as compensation for the
year of the disposition, an amount equal to the excess, if any, of the Fair
Market Value of the Shares, upon exercise of the Option over the Option Price
(or, if less, the excess of the amount realized upon disposition over the
Option Price).  The excess, if any, of
the sale price over the Fair Market Value on the date of exercise will be
taxable as compensation.  In such case,
the Company will be entitled to a deduction, in the year of such a disposition,
for the amount includible in the Grantee’s income as compensation.  The Grantee’s basis in the Shares acquired
upon exercise of an Incentive Stock Option is equal to the Option Price paid,
plus any amount includible in his or her income as a result of a disqualifying
disposition.

 

A Non-Qualified Stock Option
results in no taxable income to the Grantee or deduction to the Company at the
time it is granted.  A Grantee exercising
a Non-Qualified Stock Option will, at that time, realize taxable compensation
in the amount of the difference between the Option Price and the then Fair
Market Value of the Shares (if hold the Shares) or the sale price of the
underlying exercised Shares (if a cashless exercise).  Subject to the applicable provisions of the
Code, a deduction for federal income tax purposes will be allowable to the
Company in the year of exercise in an amount equal to the taxable compensation
recognized by the Grantee.  The Grantee’s
basis in the Shares is equal to the sum of the Option Price plus the amount
includible in his or her income as compensation upon exercise.  Any gain (or loss) upon subsequent
disposition of the Shares will be a long-term or short-term gain (or loss),
depending upon the holding period of the Shares.

 

If an Option is exercised by
tendering previously owned Shares of the Company in payment of the Option
Price, then, instead of the treatment described above, the following 

 

6

 

generally will apply:  a number of new Shares equal to the number of
previously owned Shares tendered will be considered to have been received in a
tax-free exchange; the Grantee’s basis and holding period for the number of new
Shares will be equal to the basis and holding period of the previously owned
Shares exchanged; the Grantee will have compensation income equal to the Fair
Market Value on the date of exercise of the number of new Shares received in
excess of the number of exchanged Shares; the Grantee’s basis in the excess
Shares will be equal to the amount of compensation income; and the holding
period in such Shares will begin on the date of exercise.

 

Stock
Appreciation Rights

 

A Grantee will recognize
ordinary income subject to applicable withholding tax requirements at such time
as the value of a SAR is actually paid in cash or Shares.  The amount of such income will be the amount
of cash distributed plus the Fair Market Value on the date of exercise of any
Shares distributed.

 

Other
Awards

 

The current U.S. federal
income tax consequences of other Awards authorized under the Plan are generally
in accordance with the following: (1) Restricted Shares are generally
subject to ordinary income tax at the time the restrictions lapse, unless the
Grantee elects to accelerate recognition as of the date of grant; (2) Share
Unit grants are generally subject to ordinary income tax at the time of
payment; and (3) unrestricted Share grants are generally subject to
ordinary income tax at the time of grant. 
In each of the foregoing cases, the Company will generally be entitled
to a corresponding federal income tax deduction at the same time the Grantee
recognizes ordinary income.

 

Capital
Gains and Losses

 

The
Shares must be considered a capital asset for a Grantee to recognize capital
gain or loss on the disposition of the Shares. 
Capital gains and losses can be either short-term or long-term.  A capital gain or loss will generally be a
long-term capital gain or loss if the Grantee holds the Shares for more than
one (1) year.  Short-term capital
gains are currently taxed at ordinary income rates, and the maximum federal
income tax rate currently applicable to long-term capital gains is generally
15% (rate is subject to change).  A
Grantee may be limited in his or her ability to deduct any short-term or
long-term capital losses in the year in which the loss is incurred.

 

Deferrals

 

The
Committee may require or permit Grantees to elect to defer the receipt of the
payment of cash or the delivery of Shares that would otherwise be due by virtue
of the exercise of an Option or SAR or the lapse or waiver of restrictions with
respect to Restricted Shares under the rules and procedures as established
under the Plan or other rules and procedures as the Committee may establish;
provided, however, to the extent that the deferral is subject to Section 409A
of the Code the rules and procedures established by the Committee will
comply with 

 

7

 

Section 409A
of the Code.  Except as otherwise
provided in an Award Agreement, any payment or any Shares that are subject to
the deferral shall be made or delivered to the Grantee upon the Grantee’s
Termination of Affiliation.

 

Tax
Withholding

 

Compensation
income recognized by the Grantee in connection with the exercise of an Award
will be treated as wage compensation and will be subject to Grantee’s
individual income tax withholding by the Company.  There may be additional state and/or city
income tax withholding, if applicable. 
The Company may require the withholding obligations, in whole or in
part, to be satisfied by:

 

(a)          withholding from
compensation, or from the withholding and/or sale of Shares or other payments,
due to the Grantee;

(b)         the Grantee directly paying
the Company cash, or if permitted by the Committee, Shares for which the
Grantee has good title, free and clear of all liens and encumbrances; or

(c)          any combination of the
foregoing.

 

In
order to satisfy required tax withholdings, the Grantee may, subject to the
terms of the Award Agreement and the approval of the Committee, elect in
writing to have the Company, at its sole discretion, either withhold or sell
Shares otherwise deliverable upon exercise of the Award, having a Fair Market
Value equal to: (1) the amount necessary to satisfy the required tax
withholding liability; or (2) with the Committee’s approval, a greater
amount, not to exceed the estimated total amount of the Grantee’s tax
liability.  The Grantee’s election must
be made by delivering a written irrevocable election form to the Company.

 

Code Section 162(m)

 

A
federal income tax deduction generally will be unavailable for annual
compensation in excess of $1,000,000 paid to the Chief Executive Officer and
the three other most highly compensated officers (other than the Chief
Financial Officer) of a public corporation who are employed on the last day of
the fiscal year (“Covered Executives”). 
However, amounts and awards that constitute “performance-based”
compensation within the meaning of Section 162(m) of the Code are not
counted toward the $1,000,000 limit. 
Awards of Options and SARs are expected to qualify as performance-based
compensation.  In addition, the Committee
may designate any Restricted Share Award described as intended to be “performance-based”
compensation.  Any Restricted Share Award
so designated shall be conditioned on the achievement of one or more
Performance Measures, as required by Section 162(m) of the Code.  The Performance Measures that may be used by
the Committee for such awards shall be based on any one or more of the
Performance Measures that have been approved by shareholders for equity plan
awards.

 

The
full and/or partial payment or award of performance-based compensation to
Covered Executives will be made only upon certification by the Committee of the
attainment, over a

 

8

 

performance
period established by the Committee, of any one or more Performance Measures,
which have been established by the Committee and which are based on objective
criteria.  Notwithstanding the attainment
of any Performance Measure, the Committee has the discretion to reduce any
Award payment.

 

Tax
Consequences to Grantees Employed by U.S. Employers but Working Abroad

 

Grantees
who work outside the United States, but who are employed by the Company, a
subsidiary or an affiliate, may be taxed in the foreign country in which they
work, in addition to the U.S.  These tax
consequences will be different depending upon the laws of each foreign
country.  Please consult your tax advisor
with respect to your individual tax consequences in a foreign country.

 

Certain
Investment Considerations

 

The
market price of the Shares has varied widely. 
The Shares that you acquire by exercise or payment of Awards granted
under the Plan may decrease or increase in value.

 

OTHER
MATTERS RELATING TO THE PLAN

 

When
was the Plan adopted and when does it end?

 

The
Company adopted the Plan effective as of April 29, 2010.  The Plan will remain in effect until the
earlier of the date that (a) all Shares subject to the Plan have been
purchased or acquired according to the Plan’s provisions or (b) April 28,
2020.

 

Who grants Awards  and otherwise oversees the
Plan?

 

The
Board has appointed the Committee to administer the Plan.  Except as may be limited by law, the
Certificate of Incorporation or Bylaws of the Company or the express provisions
of the Plan, the Committee has the full power and discretion:

 

(a)          to determine when and to whom any Awards will be
granted and the terms and conditions of each Award;

(b)         to construe and interpret the Plan and make all
determinations necessary or advisable for administration of the Plan;

(c)          to determine the terms and conditions of all Award
Agreements (which need not be identical) and to amend any such Award Agreement
at any time (in certain instances only with the consent of the Grantee);

(d)         to make, amend and rescind rules relating to
the Plan, including restrictions on the exercisability and nonforfeitability of
Awards upon the Grantee’s Termination of Affiliation;

(e)          to cancel, with the consent of the Grantee,
outstanding Awards and grant substitute Awards;

 

9

 

(f)            to accelerate the exercisability of, or to
accelerate or waive any or all of the terms and conditions applicable to, any
Award or group of Awards for any reason and at any time;

(g)         to extend the time during which any Award or group
of Awards may be exercised, except as otherwise limited by the Plan;

(h)         to make any adjustments or modifications to Awards
to Grantees working outside the United States as are advisable to fulfill the
purposes of the Plan or to comply with local law;

(i)             to impose such additional terms and conditions upon
the grant, exercise or retention of Awards as the Committee may deem
appropriate; and

(j)             to take any other action with respect to any matters
relating to the Plan for which it is responsible.

 

From
time to time, the Committee may adopt rules relating to the Plan or amend
or repeal any such rules.  The
determination of the Committee on all matters relating to the Plan or any Award
Agreement is final, conclusive and binding on all Persons.  No member of the Committee will be liable for
any action or determination made in good faith with respect to the Plan or any
Award.

 

May a
Grantee transfer an Award to another person?

 

In
general, the Plan does not allow a Grantee to transfer Awards granted to him or
her under the Plan to another person. 
There are certain limited exceptions to this rule.  Specifically, the Plan does allow a Grantee
to transfer an Award granted under the Plan by will or by the laws of descent
or distribution.  In addition, subject to
terms and conditions established by the Committee, a Grantee may transfer an
Award under the Plan to a spouse, sibling, parent, child or grandchild, to a
trust primarily for the benefit of the Grantee or such relatives, or to a
corporation or other entity exclusively owned by the Grantee or by such
relatives.

 

May the
Plan or any Award be changed or terminated?

 

The
Board may alter, amend, suspend or terminate the Plan in whole or in part at
any time; provided, however, that no such change shall adversely affect in any
material way the rights of a Grantee under a previously granted Award if the
Grantee has not consented.  In addition,
if the Company issues or initiates a stock split, stock dividend or makes a
similar change in the structure of the outstanding capitalization of the
Company or in the event of any merger, consolidation, split-up, spin-off,
reorganization or combination, or repurchase or exchange of Shares or other
rights to purchase Shares or other securities of the Company, or other similar
corporate transaction, the Committee may adjust the number of Shares which may
be available for Awards, the number and type of Shares subject to outstanding
Awards, and the exercise or grant price with respect to any Award as the
Committee determines in its discretion to be appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan.  In such a
circumstance, the Committee may also make provision for a cash payment in lieu
of any Award.

 

10

 

The
Committee may also change the terms of Awards in recognition of unusual or
nonrecurring events affecting the Company or the financial statements of the
Company or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan; provided that
no such adjustment shall be authorized to the extent that such authority would
be inconsistent with satisfaction of the requirements of Section 162(m) of
the Code.

 

What
happens to Awards if the Grantee no longer works for the Company?

 

The
effect of a Grantee’s Termination of Affiliation with the Company on Awards
held by the Grantee is governed by the terms of the relevant Award
Agreement.  In the absence of such
provisions in the Award Agreement, however, the following rules will
govern the effect of the Grantee’s Termination of Affiliation on his or her
Awards.

 

For Cause.  Unless
otherwise set forth in an individual agreement with an employee, if a Grantee
has a Termination of Affiliation for Cause, (i) the Grantee’s Restricted
Shares will be forfeited; and (ii) any unexercised Option or SAR will
terminate effective immediately upon Termination of Affiliation.

 

Unless
otherwise defined in an individual agreement with an employee, before the
occurrence of a Change of Control, Termination of Affiliation for Cause means
termination following the occurrence of any one or more of the following:

 

(a)          commission of a crime by the Grantee which resulted
or is likely to result in damage or injury to the Company;

(b)         the material violation of written policies of the
Company;

(c)          the habitual neglect or failure by the Grantee in
the performance of his or her duties for the Company (but only if such neglect
or failure is not remedied within a reasonable remedial period after the
Grantee’s receipt of written notice from the Company which describes such
neglect or failure in reasonable detail and specifies the remedial period); or

(d)         action or inaction by the Grantee in connection with
his or her duties for the Company resulting in material injury to the Company.

 

Unless
otherwise defined in an individual agreement with an employee, from and after
the occurrence of a Change of Control, Termination of Affiliation for Cause
means termination following the occurrence of any one or more of the following:

 

(a)          the willful and continued failure by the Grantee to
substantially perform the Grantee’s duties with the Company (other than any
failure resulting from the Grantee’s incapacity due to physical or mental
illness) that has not been cured within 30 days after a written demand for
substantial performance is delivered to the Grantee by the Board, which demand
specifically identifies the manner in which the Board believes that the Grantee
has not substantially performed the Grantee’s duties;

 

11

 

(b)         the willful engaging by the Grantee in conduct which
is demonstrably and materially injurious to the Company or a Subsidiary,
monetarily or otherwise; or

(c)          the willful or reckless violation by the Grantee of
a material legal or regulatory requirement that is materially and demonstrably
injurious to the Company.

 

For
purposes of this definition, no act, or failure to act, on the Grantee’s part
will be deemed “willful” unless done, or omitted to be done, by the Grantee not
in good faith and without reasonable belief that the Grantee’s act, or failure
to act, was in the best interest of the Company.  Any act, or failure to act, based upon
express written authority by the Board, Chief Executive Officer and/or Chief
Investment Officer with respect to the act or omission or based upon the advice
of counsel for the Company will be conclusively presumed to be done, or omitted
to be done, by the Grantee in good faith and in the best interests of the
Company.

 

On
Account of Death or Disability.  If a Grantee has a Termination of Affiliation
on account of death or Disability, then (1) the Grantee’s Restricted
Shares that were forfeitable will become non-forfeitable; and (2) any
unexercised Option or SAR, whether or not exercisable on the date of the
Termination of Affiliation, may be exercised, in whole or in part, within the
first 12 months after the Termination of Affiliation (but only during the
Option Term) and will terminate immediately thereafter.  The Option or SAR may be exercised by the
Grantee or, after his or her death, by (1) his or her personal
representative or the person to whom the Option or SAR, as applicable, is
transferred by will or the applicable laws of descent and distribution, or (2) the
Grantee’s beneficiary designated in accordance with the general rules pertaining
to the occurrence of a Change of Control.

 

On
Account of Retirement.  Upon
Grantee’s Retirement (as defined in the Plan), (1) the Grantee’s
Restricted Shares that were forfeitable will become non-forfeitable; and (2) any
unexercised Option or SAR, whether or not exercisable on the date of the
Termination of Affiliation may be exercised within the first five (5) years
after the Termination of Affiliation (but only during the option term) and will
terminate immediately thereafter.  In
addition, any forfeitable Restricted Share (other than Share Units) will become
nonforfeitable.  Restricted Share Units
become nonforfeitable upon achieving eligibility for Retirement.  The Option or SAR may be exercised by the
Grantee or, after his or her death, by (1) his or her personal
representative or the person to whom the Option or SAR, as applicable, is
transferred by will or the applicable laws of descent and distribution, or (2) the
Grantee’s beneficiary designated in accordance with the general rules pertaining
to the occurrence of a Change of Control.

 

Any
Other Reason.  If a
Grantee has a Termination of Affiliation (as defined in the Plan) for any
reason other than for Cause, death, Disability or Retirement, then the Grantee’s
Restricted Shares, to the extent forfeitable on the date of the Grantee’s
Termination of Affiliation, will be forfeited. 
If the Termination of Affiliation is the result of the Grantee’s
voluntary termination of employment, any unexercised Option or SAR, to the
extent not exercisable immediately before the Grantee’s Termination of
Affiliation will terminate immediately upon the Termination of
Affiliation.  To the extent an Option or
SAR is exercisable immediately before the Grantee’s Termination of Affiliation,
the Option or SAR may be exercised not later than three (3) months after
the date of Termination of Affiliation (but only during the Option Term) and
shall terminate 

 

12

 

immediately
thereafter.  If the Termination of
Affiliation is the result of the Grantee’s termination of employment by the
Company or a Subsidiary (other than for Cause), then, any unexercised Option,
whether or not exercisable immediately before the Grantee’s Termination of
Affiliation, may be exercised in whole or in part, not later than three (3) months
after the Termination of Affiliation (but only during the Option Term) and will
terminate immediately thereafter.  The
Option or SAR may be exercised to the extent permitted under this section by
the Grantee or, after his or her death, by (a) his or her personal
representative or the person to whom the Option is transferred by will or the
applicable laws of descent and distribution, or (b) the Grantee’s
beneficiary designated in accordance with the general rules pertaining to
the occurrence of a Change of Control.

 

What happens to Awards following a Change of Control of the Company?

 

Except
as stated below, as otherwise provided in the relevant Award Agreement or as
determined by the Committee at the time an Award is granted, if a Change of
Control occurs, then:

 

(a)          any forfeitable Restricted Shares will become
non-forfeitable;

(b)         any unexercised Options or SARs, whether or not
exercisable on the date of the Change of Control, will become fully
exercisable; and

(c)          in the discretion of the Committee, and to the
extent permitted by Section 409A of the Code, Awards issued under the Plan
will terminate effective as of the Change of Control in exchange for a payment
to the Grantee of an amount in cash equal to the value of the per Share
consideration paid in the Change of Control multiplied by the number of Shares
subject to the Award less, in the case of Options and SARs, the exercise price
for those Awards.

 

With
respect to each Award that is subject to Section 409A of the Code, if a
Change of Control would have occurred under the Plan except that the Change of Control
does not constitute a change in the ownership or effective control of the
Company or a change in the ownership of a substantial portion of the assets of
the Company under Section 409A, then each Award will become vested and
nonforfeitable but the Grantee will not be able to exercise the Award, and the
Award will not become payable, except in accordance with the terms of the Award
or until the earlier time as the exercise and/or payment complies with Section 409A
of the Code.

 

What
happens to the Plan if there is a successor to the Company?

 

All
obligations of the Company under the Plan with respect to Awards granted
hereunder shall be binding on any successor to the Company, whether the
existence of the successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise of all or substantially all of the business
and/or assets of the Company.

 

What does the Company do with the money received from the exercise of
Options?

 

All
funds received by the Company in payment for Shares purchased under the Plan
may be used for any valid corporate purpose.

 

13

 

Are
there any restrictions on the resale of the Shares of Common Stock acquired
under the Plan?

 

All
certificates for Shares delivered under the Plan pursuant to any Award may be
subject to the restrictions as the Committee may deem advisable, including
restrictions under applicable federal securities laws.

 

Shares
acquired under the Plan are freely tradable unless held by an “Affiliate,” as
defined in Rule 144 under the Securities Act of 1933, as amended (the “Securities
Act”), held by an executive officer subject to Section 16(b) of the
Securities Exchange Act of 1934, as amended (“Section 16(b)”), or the
Grantee is in possession of material inside information (trading by a Grantee
would be deemed to be “Insider Trading”). 
The following summaries of Rule 144, Section 16(b) and
Insider Trading are not intended to be complete descriptions.

 

Persons
proposing to sell Shares acquired under the Plan should consult their own legal
counsel regarding compliance with applicable state and federal securities laws.

 

Rule 144. 
Affiliates may not trade Shares without registration unless the
provisions of Rule 144 are met or another exemption is available for the
trade.  In general, under Rule 144,
as currently in effect, an Affiliate may sell within any three (3) month
period the number of Shares that does not exceed the greater of (i) one
percent (1%) of the then outstanding Shares or (ii) the average weekly
trading volume of the shares on the New York Stock Exchange during the four (4) calendar
weeks preceding the sale.  Sales under Rule 144
are also subject to certain manner of sale provisions, notice requirements and
the availability of current public information about the Company.  Because of their positions with the Company,
officers of the Company may be deemed Affiliates for purposes of Rule 144.  The foregoing summary is not intended to be a
complete description of Rule 144.

 

Section 16(b).  In addition, certain executive officers of the
Company are subject to the provisions of Section 16(b), which provides for
the disgorgement of profits in connection with purchases and sales of
securities occurring within a six-month period. 
Section 16(b) is subject to a number of exceptions depending
on the circumstances.

 

Insider
Trading.  A Grantee may not sell Shares
acquired pursuant to the Plan in violation of the Company’s Insider Trading
Policy and applicable securities laws prohibiting trading in securities by
someone in possession of material inside information.  The Company’s Insider Trading Policy, in
part, forbids any officer or employee of the Company or any subsidiary of the
Company from trading, either personally or on behalf of others, on material
nonpublic information concerning the Company or any subsidiary of the Company.

 

How to
Obtain Additional Information

 

To
obtain additional information about the Plan, please call the Company at (303)
691-3905.  Written requests should be
directed to the Office of the Corporate Secretary, Janus Capital Group Inc.,
151 Detroit Street, Denver, Colorado 80206.

 

14Exhibit
10.3

 

SECOND
AMENDMENT TO THE JANUS 401(k), PROFIT SHARING

AND
EMPLOYEE STOCK OWNERSHIP PLAN

 

The Janus 401(k), Profit Sharing and Employee
Stock Ownership Plan, as amended and restated effective January 1, 2009
(the “Plan”), is hereby amended as follows, effective July 19, 2010:

 

1.                                       Section 4.1(d) of the Plan is hereby amended in its entirety to
read as follows:

 

(d)           A
special discretionary allocation approved by the Compensation Committee or, if
expressly delegated, the Plan Advisory Committee; provided that at the time of
any such special discretionary allocation the Compensation Committee or the
Plan Advisory Committee shall establish the allocation formula and eligibility
criteria for receipt of the special discretionary allocation.

 

2.                                       Section 4.4(d)(4) of the Plan is hereby amended by deleting the
word “and” from the end of said provision.

 

3.                                       Section 4.4(d)(5) of the Plan is hereby amended in its entirety
to read as follows:

 

(5)           any
Forfeitures remaining after the application of paragraphs (1), (2), (3) and
(4) of this subsection may be applied to make any special discretionary
allocation that the Compensation Committee or the Advisory Committee shall
approve under Section 4.1(d); and

 

4.                                       The Plan is hereby amended by adding a new Section 4.4(d)(6) to
read as follows:

 

(6)           any
Forfeitures remaining after the application of paragraphs (1), (2), (3), (4) and
(5) of this subsection shall be treated as an Employer Discretionary
Profit Sharing Contribution and allocated in accordance with this Section 4.4.

 

5.                                       Except as amended above, the Plan shall remain in full force and effect.

 

IN WITNESS WHEREOF, Janus Capital Group Inc.
has executed this Amendment as of this 19th day of July, 2010.

 

	
   

  	
   

  	
  Janus Capital Group Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Gregory A. Frost

  
	
   

  	
   

  	
   

  	
  Gregory A. Frost

  
	
   

  	
   

  	
   

  	
  Executive Vice President, Chief Financial

  
	
   

  	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Curt R. Foust

  	
   

  	
   

  
	
  Curt R. Foust

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