Document:

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                                                                   EXHIBIT 10.20

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

                                 August 30, 2002

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is hereby made
and entered into by and between Stilwell Financial, Inc., a Delaware corporation
("Stilwell") and Douglas E. Nickerson, an individual ("Executive") to be
effective as of August 30, 2002 (the "Effective Date").

WHEREAS, prior to June 12, 2000, Executive was employed by Kansas City Southern
Industries, Inc. ("KCSI"), and on June 12, 2000, Stilwell and Executive entered
into an employment agreement ("Prior Agreement") to be effective as of July 12,
2000, the date that all of the issued and outstanding stock of Stilwell was
distributed to the shareholders of KCSI which had been the parent of Stilwell
since its formation on January 23, 1998 (the "Spin-off Distribution"), for
Stilwell to continue to employ Executive on the terms and conditions set forth
in the Prior Agreement; and

WHEREAS, as of the Effective Date, 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. Position and Responsibilities. Stilwell hereby employs and appoints
Executive during the term of the Agreement as Controller, Treasurer and a Vice
President. During the term of the Agreement, Executive shall devote
substantially all of his business time, attention and
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effort to the affairs of Stilwell, and shall
use his reasonable best efforts to promote the best interests of Stilwell.
Executive shall be responsible for financial and accounting matters and such
other functions as assigned to him from time to time by the Chief Financial
Officer of Stilwell. Executive shall report on his responsibilities directly to
the Chief Financial Officer of Stilwell. During the term of the Agreement, and
excluding any periods of disability, vacation, or sick leave to which Executive
is entitled, Executive agrees to devote his full attention and time to the
business and affairs of Stilwell.

         2. Compensation.

                  (a) Base Compensation. Stilwell shall pay Executive, in
accordance with the normal payroll practices of Stilwell, an annual base salary
at the rate of $190,000.00 per year ("Base Salary"). Base Salary shall be
reviewed at least annually and may be increased (but not decreased) from time to
time as shall be determined by the Stilwell Board. Any increase in Base Salary
shall not limit or reduce any other obligation of Stilwell to Executive under
this Agreement. Once Base Salary shall have been increased, it shall be treated
for all purposes of this Agreement as Executive's Base Salary. Base Salary shall
not be decreased at any time without the express written consent of Executive.

                  (b) Incentive Compensation. For the year 2002 and the six
months ending June 30, 2003, 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

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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
175% of Executive's Base Salary. 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
obligation to continue in effect or to fund any such plan or program, except as
provided in Paragraphs 4(e) and 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 Spin-off
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.
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         4. Termination.

                  (a) Termination by Executive. Executive may terminate this
Agreement and his employment hereunder by at least thirty (30) calendar days
advance written 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.

                           (i) Subject to the provisions of Paragraph 4(c)(ii),
         Stilwell may terminate this Agreement and Executive's employment for
         Cause (as defined below). For purposes of this Agreement (except for
         Paragraph 7), termination for "Cause" shall mean termination based upon
         any one or more of the following:

                                    (A) Executive's willful or intentional
         material breach of his material obligations under this Agreement;

                                    (B) Executive's commission of a felony;

                                    (C) willful or intentional material
         misconduct by Executive in the performance of his duties under this
         Agreement;

                                    (D) Executive's commission of a misdemeanor
         involving fraud, dishonesty or moral turpitude; or

                                    (E) the willful or intentional failure by
         Executive to materially comply (to the best of his ability) with a
         specific, written direction of the Chief Executive Officer of Stilwell
         that is not inconsistent with this Agreement and Executive's
         responsibilities hereunder, provided that such refusal or failure (1)
         is not cured to the best of Executive's ability within ten (10)
         business days after the delivery of such direction to
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         Executive, and (2) is not based on Executive's good faith belief, as
         expressed by written notice to the Chief Executive Officer of Stilwell
         given within such ten (10) business day period, that the implementation
         of such direction of the Chief Executive Officer of Stilwell would be
         unlawful or unethical.

                           (ii) Executive's employment may not be terminated for

         Cause unless:

                                    (A) Stilwell provides Executive with written

         notice (the "Notice of Consideration") of its intent to consider the
         termination of Executive's employment for Cause, including a detailed
         description of the specific reasons which form the basis for such
         consideration;

                                    (B) on a date not less than thirty (30)
         calendar days after the date Executive receives the Notice of
         Consideration, Executive shall have the opportunity to appear before
         the Stilwell Board, with or without legal representation, at
         Executive's election, to present arguments and evidence on his own
         behalf;

                                    (C) the Stilwell Board by the affirmative
         vote of at least seventy-five percent (75%) of its members (excluding
         Executive as a member of the Stilwell Board, and any other member of
         the Stilwell Board reasonably believed to be involved in the events
         leading the Stilwell Board to seek to terminate Executive for Cause),
         determines at or after the meeting of the Stilwell Board, that the
         actions or inactions of Executive specified in the Notice of
         Consideration occurred, that such actions or inactions constitute
         Cause, and that Executive's employment should accordingly be terminated
         for Cause; and

                                    (D) the Stilwell Board provides Executive
         with a written determination (a "Notice of Termination for Cause")
         setting forth in specific detail the basis of Executive's termination
         of employment. The Notice of Termination for Cause
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         shall not be based upon any reason or reasons other than one or more
         reasons set forth in the Notice of Consideration.

                  If Executive disputes any purported termination of Executive
         for Cause, the Stilwell Board shall have the burden of proof to
         establish by a preponderance of the evidence, both (1) its full
         compliance with the substantive and procedural requirements of this
         Paragraph 4(c)(ii) prior to a termination of employment for Cause, and
         (2) that Executive's action or inaction specified in the Notice of
         Termination for Cause did occur and constituted Cause. If the Stilwell
         Board does not meet such burden of proof, any termination of employment
         shall be deemed a termination without Cause for all purposes of this
         Agreement, including Executive's entitlement to severance benefits and
         payments.

                  If the Stilwell Board determines by a vote of seventy-five
         percent (75%) of its members (excluding Executive as a member of the
         Stilwell Board and any other member of the Stilwell Board reasonably
         believed to be involved in the events leading the Stilwell Board to
         seek to terminate Executive for Cause), that it is in the best
         interests of Stilwell to suspend Executive from performing his duties
         with respect to Stilwell under this Agreement pending resolution of the
         Notice of Consideration, then Executive shall be suspended from
         performing such duties, and such suspension shall not be considered to
         constitute Good Reason or a breach of this Agreement on the part of
         Stilwell; provided however, that the obligations (including payments of
         compensation to Executive) of Stilwell and of Executive under this
         Agreement, other than Executive's obligations under Paragraph 1 hereof,
         shall continue in full force and effect during such period of
         suspension.

                  (d) Termination by Stilwell Other than for Cause or by
Executive for Good Reason.
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                           (i) Stilwell may terminate this Agreement and
         Executive's employment other than for Cause immediately upon notice to
         Executive, or Executive may terminate this Agreement and Executive's
         employment for Good Reason (as defined in Paragraph 4(d)(iii) below)
         upon notice to Stilwell in accordance with the provisions of Paragraph
         4(d)(iv), and in any such event, Stilwell shall provide severance
         benefits to Executive in accordance with Paragraph 4(d)(ii) below
         (unless Paragraph 4(e) applies).

                           (ii) Unless the provisions of Paragraph 7 of this
         Agreement are applicable, if Executive's employment is terminated under
         Paragraph 4(d)(i), Stilwell (a) shall pay as soon as reasonably
         possible but not later than thirty (30) calendar days after Executive's
         termination date, a lump sum amount in immediately available funds
         equal to the product (discounted to the then present value on the basis
         of a rate of five percent (5%) per annum) of (A) 165% of Base Salary
         multiplied by (B) two, and, (b) for this two-year period, to reimburse
         Executive for the cost (including state and federal income taxes
         payable with respect to this reimbursement) of continuing the health
         insurance coverage provided pursuant to this Agreement or obtaining
         health insurance coverage comparable to the health insurance provided
         pursuant to this Agreement, and obtaining coverage comparable to the
         life insurance provided pursuant to this Agreement, unless Executive is
         provided comparable health or life insurance coverage in connection
         with other employment. The foregoing obligations of Stilwell shall
         continue until the end of such 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 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 termination date, and such options shall
         remain exercisable through the earlier to occur of (1) five (5) years
         after the
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         termination date, or (2) the expiration of the term of the options. To
         the extent that such options are not vested and are subsequently
         forfeited, Executive shall receive a lump-sum cash payment within five
         (5) business 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. 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 the Stilwell Incentive Compensation Plan or the Stilwell
         Executive Plan with respect to the severance pay provided herein 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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                           (iii) "Good Reason" means the occurrence of any one
         of the following events unless Executive specifically consents in
         writing that such event shall not be Good Reason:

                                    (A) any material breach of this Agreement by
         Stilwell of any of its material obligations under this Agreement,
         including any of the following occurrences which shall be deemed to
         constitute a material breach of Stilwell's material obligations:

                                    (1) failure to pay Base Salary as required
         by Paragraph 2(a); or

                                    (2) any material adverse change in the
         status, position, responsibilities, and duties of Executive as compared
         to Executive's status, position, responsibilities, and duties as set
         forth in Paragraph 1,

                                    (B) the failure of Stilwell to assign this
         Agreement to a successor, or the failure of such successor to
         explicitly assume and agree to be bound by this Agreement,

                                    (C) Stilwell's requiring Executive to be
         principally based at any office or location that is more than forty
         (40) miles from the office or location where Executive was located as
         of the Effective Date,

                                    (D) the Stilwell Board gives a Notice of
         Consideration pursuant to Paragraph 4(c)(ii) (of the intent to consider
         terminating Executive for Cause) and fails within a period of ninety
         (90) calendar days thereafter to terminate Executive for Cause in
         compliance with all the substantive and procedural requirements of
         Paragraph 4(c)(ii), or

                                    (E) after the Restructuring Date (as defined
         in Paragraph 4(e)(i)), any material adverse change in the status,
         position, responsibilities and duties of
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         Executive as a member of the group of Stilwell employees designated to
         effect the transition of Stilwell's ongoing matters and duties to other
         Company executives as part of the Restructuring (as defined in
         Paragraph 4(e)(1)) ("Transition Team Members") until December 31, 2003.
         Executive's position as a Transition Team Member is as a non-officer
         and his responsibilities and duties are to transition his
         responsibilities for financial and accounting matters and other
         responsibilities consistent with the foregoing designated by the Chief
         Financial Officer of Stilwell to the appropriate officers of the
         Company.

                  (iv) Executive's termination of employment shall not be
         considered to be for Good Reason unless:

                           (A) not more than ninety (90) calendar days after the
         occurrence (or, if later, not more than ninety (90) calendar days after
         Executive becomes aware) of the event or events alleged to constitute
         Good Reason, Executive provides Stilwell with written notice (the
         "Notice of Good Reason") of his intent to consider termination for Good
         Reason, including a detailed description of the specific reasons which
         form the basis for such consideration, and demanding that such event or
         events be cured not later than ten (10) business days after Stilwell
         receives the Notice of Good Reason (the "Cure Period");

                           (B) Stilwell shall have failed to cure such event or
         events during the Cure Period; and

                           (C) not more than ninety (90) calendar days following
         the expiration of the Cure Period, Executive shall have given Stilwell
         a second notice (a "Notice of Termination for Good Reason") stating
         that such cure has not occurred and that, as a result, Executive is
         terminating his employment for Good Reason on the date (after the end
         of the Cure Period) specified in the Notice of Termination for Good
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         Reason. A Notice of Termination for Good Reason shall not be based upon
         any reason or reasons other than one or more reasons set forth in the
         Notice of Good Reason.

         (e) Termination due to the Restructuring of Stilwell pursuant to that
         certain Agreement and Plan of Merger dated August 30, 2002.

               (i) If Stilwell terminates Executive's employment other than for
               Cause, or Executive terminates his employment hereunder for Good
               Reason as defined in Paragraph 4(d)(ii) hereof, in connection
               with the restructuring of Stilwell (a "Restructuring
               Termination") as contemplated by that certain Agreement and Plan
               of Merger dated August 30, 2002 between Stilwell and Janus
               Capital Corporation (the "Restructuring"), then Stilwell shall
               pay or provide to Executive severance and retention benefits
               pursuant to the Severance and Retention Policy adopted and
               approved by the Stilwell Organization and Compensation Committee
               on August 21, 2002, as described in detail on Exhibit A to this
               Agreement ("Restructuring Severance and Retention Benefits"). The
               effective date of the Restructuring, which is expected to be on
               or around December 31, 2002, shall be the Restructuring Date. Any
               termination of Executive's employment by Stilwell prior to or
               within three years after the Restructuring Date and any
               termination by Executive for Good Reason within three years after
               the Restructuring Date shall be conclusively deemed to be a
               Restructuring Termination. However, if within one year of the
               Restructuring Date Executive should become a permanent, full-time
               employee of Janus or any of its 50% or more owned affiliates,
               Executive shall not receive the severance portion of the
               Restructuring Severance and Retention Benefits. If any such
               benefits shall have been paid to Executive prior to the time of
               such employment with Janus or any of its 50% or more owned
               affiliates, Executive shall return the full amount of any such
               severance benefits so received to the Company.
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                  (ii) Unless Executive should voluntarily terminate his
                  employment with Stilwell before December 31, 2003, Executive
                  shall continue to receive his Base Salary and Benefits
                  described in Paragraph 3 through December 31, 2003.

                  (iii) Upon the Restructuring Date, Paragraphs 1 and 3(b) of
                  this Agreement shall be of no further force or effect, and
                  Executive shall serve solely as a Transition Team Member until
                  December 31, 2003. Such changes shall not constitute Good
                  Reason under Paragraph 4(d)(iii)(A)(2) or 4(d)(iii)(E).

         5. Non-Disclosure. During the term of this Agreement and at all times
after any termination of this Agreement, Executive shall not, either directly or
indirectly, use or disclose any Stilwell Trade Secret, except to the extent
necessary for Executive to perform 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.

         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
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         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, the provisions of Paragraph 4(d)(ii) shall
         survive any termination of this Agreement by Stilwell or Executive
         under Paragraph 4(d)(i) and the provisions of Paragraph 4(e)(ii) shall
         survive any termination of this Agreement by Stilwell or Executive
         under Paragraph 4(e)(i).

              7. Continuation of Employment Upon Change in Control of Stilwell.

                  (a) Continuation of Employment. Subject to the terms and
         conditions of this Paragraph 7, in the event of a Change in Control (as
         defined in Paragraph 7(d)) at any time during the term of this
         Agreement, Executive agrees to remain in the employ of Stilwell for a
         period of three (3) 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) 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 twelve (12) calendar month period immediately before the Control
         Change Date and (ii) 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 Base Salary on the same basis and at the same
         intervals as in effect immediately prior to the Control Change Date.
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                  (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

                           (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
such options shall remain exercisable through the earlier to occur of (1) five
(5) years after the Control Change Date, or (2) the expiration of the term of
the options. To the extent that such options are not vested and are subsequently
forfeited, Executive shall receive a lump-sum cash payment within five (5)
business 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

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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 Period shall not be less than 75%
of the maximum that could have been paid to 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) business days after such date full payment in cash (discounted
to the then present value on the basis of a rate of seven percent (7%) per
annum) of all amounts to which he is then entitled thereunder.

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

                           (i) the acquisition or holding by any person, entity
         or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
         Securities Exchange Act of 1934 (the "Exchange Act"), other than by
         Stilwell or any Subsidiary (as defined below), or any employee benefit
         plan of Stilwell or a Subsidiary (and other than by KCSI prior to the
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         Spin-off Distribution), of beneficial ownership (within the meaning of
         Rule 13d-3 under the Exchange Act) of 20% or more of the
         then-outstanding common stock or the combined voting power of the
         then-outstanding voting securities ("Voting Power") of Stilwell;
         provided, however, that no Change in Control shall occur solely by
         reason of any such acquisition by a corporation with respect to which,
         after such acquisition, more than 60% of both the then-outstanding
         common shares and the then-outstanding Voting Power of such corporation
         are then beneficially owned, directly or indirectly, by the persons who
         were the beneficial owners of the then-outstanding common stock and
         Voting Power of Stilwell immediately before such acquisition, in
         substantially the same proportions as their respective ownership,
         immediately before such acquisition, of the then-outstanding common
         stock and Voting Power of Stilwell; or

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

                           (iii) any one or more of the following:

                                    (A) consummation of a merger,
         reorganization, consolidation or similar transaction (any of the
         foregoing, an "Extraordinary Transaction") with respect to
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         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 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 relative proportions as their respective ownership, immediately
         before such Extraordinary Transaction, of the then-outstanding common
         stock and Voting Power of Stilwell,

                                    (B) approval by the shareholders of Stilwell
         of a liquidation or dissolution of Stilwell, or

                                    (C) consummation of a 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 (2) year
period that contributed 30% or 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

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

                  (e) Termination After Control Change Date. Notwithstanding any
         other provision of this Paragraph 7, at any time after the Control
         Change Date, Stilwell may terminate the employment of Executive (the
         "Termination"), but unless such Termination is for Cause as defined in
         subparagraph (g) or for disability, within five (5) business 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 five
         percent (5%) per annum) of (i) 175% of 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
         three (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) business 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 Executive and Executive's family the following benefits
         ("Post-Period Benefits"): (1) prior to Executive's attainment of age
         sixty (60), health, prescription and dental benefits equivalent to
         those then applicable to active peer executives of Stilwell and their
         families, as the same may be modified from time to time, and (2)
         following Executive's attainment of age sixty (60) (and without regard
         to Executive's period of
<PAGE>

         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
         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 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. 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 Executive
         may have pursuant to applicable law, including without limitation
         continuation coverage required by Section 4980B of the Internal Revenue
         Code (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 three
         (3) year period following the Change in Control, subject to the
         provisions of this Paragraph 7(f), terminate his employment with
         Stilwell (the "Resignation"). Within five (5) business 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, 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

<PAGE>

         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 Paragraph 7, "Good Reason" means the
         occurrence of any of the events enumerated in Paragraph 4(d)(iii) of
         this Agreement, or any of the following events, subject to the
         provisions of Paragraph 4(d)(iv), except that the provisions of
         Paragraph 4(d)(iv) shall not apply if twelve (12) calendar months have
         lapsed after the date of the occurrence (or if later, after Executive
         becomes aware) of the event or events alleged to constitute Good
         Reason, and in any case, the provisions of Paragraph 4(d)(iv) shall not
         apply to clause (iii) below of this Paragraph 7(f):

                           (i) a material reduction or elimination of any
                  component of Executive's incentive payment, benefits or
                  perquisites which Executive was receiving immediately prior to
                  a Change in Control;

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

                           (iii) a termination of employment by Executive for
                  any reason or no reason during the sixty (60) calendar day
                  period commencing twelve (12) calendar months after the
                  Control Change Date.

                  (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 subject to Stilwell's compliance with the provisions of
         Paragraph 4(c)(ii). "Cause" shall have the meaning set forth in
         Paragraph 4(c)(i), except that Cause shall not mean:

                           (i) bad judgment or negligence;
<PAGE>
                           (ii) any act or omission believed by Executive in
                  good faith to have been in or not opposed to the interest of
                  Stilwell (without intent of Executive to gain, directly or
                  indirectly, a profit to which 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 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 of which any member of the
                  Stilwell Board who is not a party to the act or omission has
                  had actual knowledge for at least six (6) calendar months.

                  (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 Executive) that any
         benefit received or deemed received by 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 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)).
<PAGE>

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

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

                  (i) Determination by Executive.

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

         the Gross-up Payment specified in such Certificate. If for any reason
         Stilwell fails to comply with clause (b) of the preceding sentence, the
         Gross-up Payment specified in the Executive's Determination shall be
         controlling for all purposes.

                           (ii) If Executive does not make a request for, and
         Stilwell does not deliver to 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 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 Internal Revenue Service (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 Executive is greater than the amount determined by Stilwell or Executive
pursuant to Paragraph 7(h) or Paragraph 7(i), as applicable, then Stilwell shall
pay 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 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
<PAGE>

         taxes and any Excise Taxes applicable to the Gross-up Payment; provided
         that, if such sum exceeds 0.8, it shall be deemed equal to 0.8 for
         purposes of this computation. (If different rates of tax are applicable
         to various portions of a Gross-up Payment, the weighted average of such
         rates shall be used.)

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

                  (m) Amount Increased or Contested. 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. Executive shall
         give such notice as soon as practicable, but no later than ten (10)
         business days, after 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. Executive shall not pay such claim less than thirty (30)
         calendar days after Executive gives such notice to Stilwell (or, if
         sooner, the date on which payment of such claim is due). If Stilwell
         notifies Executive in writing before the expiration of such period that
         it desires to contest such claim, Executive shall:
<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
                  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 Executive to pay the tax
                  claimed and sue for a refund or contest the claim in any
                  permissible manner. 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 Executive to pay such claim and sue for a
                  refund, Stilwell shall advance the amount of such payment to
                  Executive, on an interest-free basis and shall indemnify
                  Executive, on an after-tax basis, for any Excise Tax or income
                  tax, including related interest or penalties, imposed with
                  respect to such advance; and further provided that any
                  extension of the statute of limitations relating to payment of
                  taxes for the taxable year of
<PAGE>

                  Executive with respect to which such contested amount is
                  claimed to be due is limited solely to such contested amount.
                  Stilwell's control of the contest shall be limited to issues
                  with respect to which a Gross-up Payment would be payable.
                  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 Executive of an amount
         advanced by Stilwell pursuant to Paragraph 7(m), Executive receives any
         refund with respect to such claim, 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 Executive of an amount advanced by Stilwell pursuant to
         Paragraph 7(m), a determination is made that Executive shall not be
         entitled to a full refund with respect to such claim and Stilwell does
         not notify Executive in writing of its intent to contest such
         determination before the expiration of thirty (30) calendar 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 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

<PAGE>

         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), 4(e) 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.

                  9. Payment of Interest. If Stilwell fails to pay any amount
         provided under this Agreement when due, Stilwell shall pay interest on
         such amount at a rate equal to the greater of (A) or (B), where (A) is
         (i) the highest rate of interest charged by the lender of Stilwell for
         maintaining a revolving line of credit, or (ii) in the absence of a
         revolving line of credit, 200 basis points over the prime commercial
         lending rate announced by Citibank, N.A. on the date

<PAGE>

         such amount is due or, if no such rate shall be announced on such date,
         the immediately prior date on which Citibank, N.A. announced such a
         rate, and (B) is five percent (5%); provided, however, that if the
         interest rate determined in accordance with this Paragraph 9 exceeds
         the highest legally permissible interest rate, then the interest rate
         shall be the highest legally-permissible interest rate.

                  10. Legal Fees.

                           (a) If Executive incurs legal, accounting, expert
         witness or other fees and expenses in an effort to establish, in
         connection with any dispute with Stilwell, Executive's entitlement to
         compensation and benefits under this Agreement, Stilwell shall,
         regardless of the outcome of such effort, reimburse Executive for such
         fees and expenses, to the extent the amounts thereof are reasonable,
         except to the extent limited by paragraph 10(b). In addition, Stilwell
         shall pay Executive an additional amount in respect to any federal,
         state and local income and other taxes ("Taxes") incurred by Executive
         with respect to such reimbursement of fees and expenses in an amount
         such that after Executive's payment of Taxes on such additional amount,
         there remains a balance sufficient to pay the Taxes being reimbursed.
         Stilwell shall reimburse Executive for such fees and expenses on a
         monthly basis upon Executive's request for reimbursement accompanied by
         evidence that the fees and expenses were incurred.

                           (b) If Executive's position in such dispute is found
         in a final order of a court of competent jurisdiction to have (i) had
         no reasonable basis and to have been maintained in bad faith, or (ii)
         been frivolous, no further reimbursement for legal fees and expenses
         shall be due to Executive and Executive shall refund any amounts
         previously reimbursed hereunder with respect to such action.

                  11. 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

<PAGE>

         mail, postage prepaid, addressed, in the case of Stilwell, to Stilwell
         at 920 Main, 21st Floor, Kansas City, Missouri 64105, Attention:
         Secretary, or, in the case of Executive, to him at 14124 Fontana,
         Leawood, Kansas 66224, or to such other address as a party shall
         designate by notice to the other party.

                  12. 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 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.

                  13. 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, assigned or transferred by Executive
         either in whole or in part in any manner, without the prior written
         consent of Stilwell.

                  14. 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.
<PAGE>
         15. 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.

         16. 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 including without
limitation the Prior Agreement, 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 to be
effective as of the Effective Date.

                                            STILWELL FINANCIAL, INC.

                                            By /s/ Landon H. Rowland
                                              ----------------------------------
                                            Name:    Landon H. Rowland
                                            Title:   Chief Executive Officer

                                            EXECUTIVE

                                            /s/ Douglas E. Nickerson
                                            ------------------------------------
                                            Douglas E. Nickerson<PAGE>
                                                                  EXHIBIT  10.22

                              AMENDED AND RESTATED

                       LIMITED LIABILITY COMPANY AGREEMENT

                                       OF

                          JANUS CAPITAL MANAGEMENT LLC

                         EFFECTIVE AS OF MARCH 13, 2003

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                               Page
                                                                                                               ----

<S>                                                                                                            <C>
ARTICLE I            DEFINITIONS AND USAGE........................................................................2

   SECTION 1.01.  DEFINITIONS.....................................................................................2
   SECTION 1.02.  TERMS GENERALLY.................................................................................5

ARTICLE II           THE COMPANY..................................................................................5

   SECTION 2.01.  NAME............................................................................................5
   SECTION 2.02.  TERM............................................................................................5
   SECTION 2.03.  RESIDENT AGENT AND REGISTERED OFFICE............................................................5
   SECTION 2.04.  PURPOSES........................................................................................6
   SECTION 2.05.  PRINCIPAL PLACE OF BUSINESS.....................................................................6
   SECTION 2.06.  FICTITIOUS BUSINESS NAME STATEMENTS; OTHER FILINGS AND CERTIFICATES.............................6
   SECTION 2.07.  EXECUTION BY ATTORNEY-IN-FACT...................................................................6

ARTICLE III          SHARES AND ADJUSTMENTS.......................................................................6

   SECTION 3.01.  SHARES..........................................................................................6
   SECTION 3.02.  ISSUANCE OF ADDITIONAL UNITS; ADMISSION OF MEMBERS..............................................7

ARTICLE IV           CAPITAL CONTRIBUTIONS........................................................................7

   SECTION 4.01.  CONTRIBUTIONS...................................................................................7
   SECTION 4.02.  NEGATIVE BALANCES...............................................................................7

ARTICLE V            CAPITAL ACCOUNTS, ALLOCATIONS AND TAX MATTERS................................................7

   SECTION 5.01.  CAPITAL ACCOUNTS................................................................................7
   SECTION 5.02.  ALLOCATIONS.....................................................................................8
   SECTION 5.03.  ALLOCATIONS FOR FEDERAL INCOME TAX PURPOSES.....................................................9
   SECTION 5.04.  TAX MATTERS PARTNER.............................................................................9
   SECTION 5.05.  TAX TREATMENT...................................................................................9
   SECTION 5.06.  TAX INFORMATION.................................................................................9
   SECTION 5.07.  TAX ELECTIONS...................................................................................9
   SECTION 5.08.  TAX WITHHOLDING................................................................................10
   SECTION 5.09.  FISCAL YEAR....................................................................................10

ARTICLE VI           NON-LIQUIDATING DISTRIBUTIONS...............................................................10

   SECTION 6.01.  DISTRIBUTIONS..................................................................................10
   SECTION 6.02.  GENERAL LIMITATION.............................................................................11
   SECTION 6.03.  SET OFF AND WITHHOLDING........................................................................11

ARTICLE VII             BOOKS AND RECORDS........................................................................11

   SECTION 7.01.  BOOKS AND RECORDS..............................................................................11

ARTICLE VIII            MANAGEMENT OF THE COMPANY................................................................12

   SECTION 8.01.  MANAGEMENT UNDER AUTHORITY OF THE MEMBERS......................................................12
   SECTION 8.02.  JCM MANAGEMENT.................................................................................12
</Table>

                                        i
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                               Page
                                                                                                               ----

<S>                                                                                                             <C>
   SECTION 8.03.  MANAGING MEMBER SUPERVISION AND OVERSIGHT......................................................13
   SECTION 8.04.  MEMBERS........................................................................................14
   SECTION 8.05.  RELIANCE BY THIRD PARTIES......................................................................14

ARTICLE IX           TRANSFERS OF SHARES.........................................................................14

   SECTION 9.01.  RESTRICTIONS ON TRANSFERS......................................................................14
   SECTION 9.02.  SHARES NOT SECURITIES..........................................................................15
   SECTION 9.03.  EFFECT OF TRANSFERS............................................................................15

ARTICLE X            LIMITATION ON LIABILITY, EXCULPATION AND INDEMNIFICATION....................................15

   SECTION 10.01.  LIMITATION ON LIABILITY.......................................................................15
   SECTION 10.02.  EXCULPATION AND INDEMNIFICATION...............................................................15
   SECTION 10.03.  EXCLUSIVE JURISDICTION........................................................................17

ARTICLE XI.......................................................................................................17

   SECTION 11.01.  DISSOLUTION...................................................................................17
   SECTION 11.02.  WINDING UP OF THE COMPANY.....................................................................17
   SECTION 11.03.  LIQUIDATING DISTRIBUTIONS.....................................................................17
   SECTION 11.04.  DISTRIBUTION OF PROPERTY......................................................................18
   SECTION 11.05.  TERMINATION...................................................................................18

ARTICLE XII             MISCELLANEOUS............................................................................18

   SECTION 12.01.  NO THIRD PARTY BENEFICIARIES..................................................................18
   SECTION 12.02.  CREDITORS.....................................................................................18
   SECTION 12.03.  WAIVER........................................................................................19
   SECTION 12.04.  BINDING EFFECT................................................................................19
   SECTION 12.05.  AMENDMENTS AND CONSENTS.......................................................................19
   SECTION 12.06.  INTEGRATION...................................................................................19
   SECTION 12.07.  HEADINGS......................................................................................19
   SECTION 12.08.  COUNTERPARTS..................................................................................19
   SECTION 12.09.  SEVERABILITY..................................................................................19
   SECTION 12.10.  APPLICABLE LAW................................................................................20
   SECTION 12.11.  JURISDICTION; CONSENT TO SERVICE OF PROCESS...................................................20
</Table>

SCHEDULE A. Officers as of the Effective Date

                                       ii
<PAGE>

                              AMENDED AND RESTATED

                       LIMITED LIABILITY COMPANY AGREEMENT

                                       OF

                          JANUS CAPITAL MANAGEMENT LLC

         This Amended and Restated Limited Liability Company Agreement (this
"Agreement") of Janus Capital Management LLC, a Delaware limited liability
company (the "Company"), is hereby adopted effective as of 8:00 a.m. (Mountain
Time) on the 10th day of March 2003 (the "Effective Date"), by and among Janus
Capital Group Inc., a Delaware corporation previously having the name Stilwell
Financial Inc. ("JCGI"), and Janus Management Holdings Corporation, a Delaware
corporation and a wholly-owned subsidiary of JCGI ("Member Corp").

                                 R E C I T A L S

         A. WHEREAS, effective as of April 1, 2002 (the "Predecessor Effective
Date"), the Members of the Company as of the Predecessor Effective Date entered
into that certain Limited Liability Company Agreement of Janus Capital
Management LLC (the "Predecessor Agreement");

         B. WHEREAS, at all times from the Predecessor Effective Date through
December 31, 2002, the Managing Member of the Company and the owner of all Class
A Shares of the Company was Janus Capital Corporation, a Colorado corporation
("JCC");

         C. WHEREAS, effective as of January 1, 2003, JCC merged with and into
JCGI (the "JCC Merger"), with the result that, as of January 1, 2003, JCGI was
the owner of all Class A Shares and, pursuant to the provisions of Section
9.01(b) of the Predecessor Agreement, JCGI became the Managing Member of the
Company and the successor to all rights, obligations, liabilities, powers and
authority of JCC under the Predecessor Agreement;

         D. WHEREAS, effective as of March 12, 2003, JCGI transferred to Member
Corp a certain number of Class A Shares, representing approximately 5% of all
outstanding Class A Shares, with JCGI continuing to own the remaining 95% of the
Class A Shares;

         E. WHEREAS, effective as of March 12, 2003, the Company implemented a
merger reorganization transaction (the "Reorganization Transaction") which
resulted in all outstanding Class B Shares, Class C shares, Class D Shares,
Class E Shares, Class F Shares and Class G Shares (collectively, the "Management
Shares") being converted, forfeited or cancelled, with the result that,
following such Reorganization Transaction, Class A Shares became the only
outstanding Shares;

         F. WHEREAS, JCGI has determined that the Predecessor Agreement should
be revised so as to (i) eliminate, where appropriate, all references to JCC and
to substitute therefor JCGI, (ii) modify the allocation and distribution
provisions of the Predecessor Agreement to reflect that, from January 1, 2003,
forward, all allocations and distributions (other than

                                       1
<PAGE>

distributions with respect to the 2002 year) are to be made to the holders of
Shares as of the end of each calendar quarter, and (iii) modify the management
and other provisions of the Predecessor Agreement as appropriate in light of the
JCC Merger and the Reorganization Transaction;

         G. WHEREAS, pursuant to the provisions of Section 12.08 of the
Predecessor Agreement, JCGI and Member Corp, as the owners of 100% of the
outstanding Shares, have the power and authority to approve and adopt all of
such revisions, corrections and clarifications to the language and provisions of
the Predecessor Agreement as reflected in this Agreement;

         H. WHEREAS, JCGI and Member Corp, as the owners of 100% of the
outstanding Shares, have approved and adopted all such revisions, corrections
and clarifications to the language and provisions of the Predecessor Agreement;

         I. WHEREAS, all such revisions, corrections and clarifications shall be
implemented through the amendment and restatement of the Predecessor Agreement
as reflected in this Agreement, it being intended that this Agreement shall
fully replace and supercede the Predecessor Agreement.

                                    ARTICLE I
                              DEFINITIONS AND USAGE

         SECTION 1.01. Definitions. The following terms shall have the following
meanings for the purposes of this Agreement:

         "Affiliate" means, with respect to any Person, any Person that,
directly or indirectly, Controls, is Controlled by or is under common Control
with such Person.

         "Agreement" means this Amended and Restated Limited Liability Company
Agreement, as the same may be amended or restated from time to time.

         "Capital Account" means the capital account established and maintained
for each Member pursuant to Section 5.01.

         "CEO" is defined in Section 8.02.

         "Class A Shares" shall mean, as of any date, the Shares authorized by
the Company pursuant to the Predecessor Agreement or this Agreement and
designated as Class A Shares.

         "Class B Shares" shall mean the Shares authorized by the Company
pursuant to the Predecessor Agreement and designated as Class B Shares.

         "Class C Shares" shall mean the Shares authorized by the Company
pursuant to the Predecessor Agreement and designated as Class C Shares.

         "Class D Shares" shall mean the Shares authorized by the Company
pursuant to the Predecessor Agreement and designated as Class D Shares.

                                       2
<PAGE>

         "Class E Shares" shall mean the Shares authorized by the Company
pursuant to the Predecessor Agreement and designated as Class E Shares.

         "Class F Shares" shall mean the Shares authorized by the Company
pursuant to the Predecessor Agreement and designated as Class F Shares.

         "Class G Shares" shall mean the Shares authorized by the Company
pursuant to the Predecessor Agreement and designated as Class G Shares.

         "Code" means the Internal Revenue Code of 1986, as amended, or any
successor thereto.

         "Company" means Janus Capital Management LLC, a Delaware limited
liability company, whose business and affairs are subject to the provisions of
this Agreement.

         "Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities or general partnership interests, by
contract or otherwise, and "Controlling" and "Controlled" shall have correlative
meanings. Notwithstanding the foregoing, a Person shall be deemed to Control any
other Person in which it owns, directly or indirectly, a majority of the
ownership interests.

         "Covered Person" means (i) each Member and each Prior Member, (ii) each
officer, director, shareholder, member, partner, employee, representative, agent
or trustee, or spouse thereof, of a Member and (iii) each officer, director,
shareholder, member, partner, employee, representative, agent or trustee, or
spouse thereof, of the Company or an Affiliate of the Company.

         "Delaware Act" means the Delaware Limited Liability Company Act, 6 Del.
C. Sections 18-10 1 et seq., as amended from time to time.

         "Effective Date" means March 13, 2003.

         "JCC" shall mean Janus Capital Corporation, a Colorado corporation,
which was merged with and into JCGI as of January 1, 2003.

         "JCC Merger" has the meaning given such term in the Recitals to this
Agreement.

         "JCGI" shall mean Janus Capital Group Inc., a Delaware corporation.

         "JCGI Board" shall mean the Board of Directors of JCGI.

         "JCM Management" is defined in Section 8.02.

         "Management Committee" is defined in Section 8.02(b)(iii).

         "Management Shares" shall mean, collectively, the Class B Shares, the
Class C Shares, the Class D Shares, the Class E Shares, the Class F Shares, and
Class G Shares.

         "Managing Member" means JCGI or its successor under Section 9.01(b).

                                       3
<PAGE>

         "Member" shall mean each Person admitted as a member of the Company
pursuant to this Agreement.

         "Member Corp" shall mean Janus Management Holdings Corporation, a
Delaware corporation.

         "Net Income" and "Net Loss" means for any period: (i) the net income or
net loss of the Company for such period, as determined under Federal income tax
principles and taking into account any separately reported items (but not
including separately reported Guaranteed Payments), (ii) increased by the amount
of any tax-exempt income of the Company for such period, and (iii) decreased by
the amount of any Code Section 705(a)(2)(B) expenditures (within the meaning of
Treasury Regulation Section 1.704-1 (b)(2)(iv)(b)) of the Company for such
period; provided, however, that Net Income and Net Loss shall be computed
without regard to any items of income, gain, loss or deduction that are
specially allocated in accordance with the provisions of this Agreement or
applicable laws and regulations. Depreciation, depletion, amortization, income
and gain (or loss) with respect to Company assets shall be computed with
reference to their fair market value at the time of contribution to the Company
(or when it is revalued for book purposes) rather than with respect to the
Company's adjusted tax bases (for Federal income tax purposes) in such assets
(as required by Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations).

         "Officers" shall have the meaning set forth in Section 8.02.

         "Person" means any individual, corporation, partnership, trust,
association, limited liability company, joint venture, joint-stock company or
any other entity or organization, including a government or governmental agency.

         "Predecessor Agreement" has the meaning given such term in the Recitals
to this Agreement

         "Predecessor Effective Date" means April 1, 2002.

         "Prior Member" shall mean any Person who at any time prior to the
Reorganization Transaction held any Management Shares.

         "Reorganization Transaction" has the meaning given such terms in the
Recitals to this Agreement.

         "Section 704(c) Property" means any property that is contributed to the
Company at a time when its adjusted tax basis for Federal income tax purposes
differs from its fair market value and any Company property that is revalued for
book purposes at a time when its adjusted tax basis for Federal income tax
purposes differs from its fair market value.

         "Shares" shall have the meaning set forth in Section 3.01.

         "Transfer" means any sale, assignment, transfer, exchange, gift,
bequest, pledge, hypothecation, or other disposition or encumbrance, direct or
indirect, in whole or in part, by

                                       4
<PAGE>

operation of law or otherwise, of a Share to another Person. The terms
"Transferred," "Transferring," "Transferor" and "Transferee" shall have
correlative meanings.

         SECTION 1.02. Terms Generally. The definitions in Section 1.01 shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. All references in this Agreement to
Articles, Sections, and Exhibits shall be deemed to be references to Articles
and Sections of, and Exhibits to, this Agreement unless the context shall
otherwise require. All Exhibits and Schedules attached to this Agreement shall
be deemed incorporated in this Agreement as if set forth in full in this
Agreement. The words "include", "includes" and "including" shall be deemed to be
followed by the phrase "without limitation" if such phrase does not otherwise
appear. All accounting terms not defined in this Agreement shall have the
meanings determined by United States generally accepted accounting principles as
in effect from time to time. The words "hereof", "herein" and "hereunder" and
words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement.
References to a Person are also to its permitted successors and permitted
assigns. Unless otherwise provided in this Agreement, any agreement, instrument
or statute defined or referred to in this Agreement, or in any agreement or
instrument that is referred to, means such agreement, instrument or statute as
it may be amended, modified or supplemented from time to time, including (in the
case of agreements or instruments) by waiver or consent and (in the case of
statutes) by succession of comparable successor statutes, together with all
attachments thereto and instruments incorporated therein. As used in this
Agreement, all references to "majority in interest" and phrases of similar
import shall be deemed to refer to such percentage or fraction of interest in
either all outstanding Shares or a specified class or other group of Shares, as
the context requires.

                                   ARTICLE II
                                   THE COMPANY

         SECTION 2.01. Name. The name of the Company is Janus Capital Management
LLC. The Managing Member may change the name of the Company or adopt such trade
names or fictitious names as it may determine from time to time.

         SECTION 2.02. Term. The term of the Company began on February 27, 2002,
the date the certificate of formation of the Company was filed in the office of
the Secretary of State of Delaware, and shall continue until terminated as
provided in Article XI.

         SECTION 2.03. Resident Agent and Registered Office. The name of the
resident agent for service of process shall be National Registered Agents, Inc.,
and the address of the resident agent and the address of the Company's
registered office in the State of Delaware shall be 9 East Loockerman Street,
Wilmington, Delaware 19901. The Managing Member may change such office and such
agent from time to time. At the direction of the Managing Member, the Company
shall be qualified or registered under applicable laws of any jurisdiction in
which the Company transacts business, and the Officers shall be authorized to
execute, deliver and file any certificates and documents necessary to effect
such qualification or registration.

                                       5
<PAGE>

         SECTION 2.04. Purposes. The Company has been formed for the object and
purpose of, and the nature of the business to be conducted and promoted by the
Company is, engaging in any lawful act or activity for which limited liability
companies may be formed under the Delaware Act, including engaging in any and
all activities necessary or incidental to the foregoing.

         SECTION 2.05. Principal Place of Business. The principal office and
place of business of the Company shall be at 100 Fillmore Street, Denver,
Colorado. The Managing Member may change the Company's principal office or place
of business at any time and may establish other offices or places of business at
other locations.

         SECTION 2.06. Fictitious Business Name Statements; Other Filings and
Certificates. An Officer or any delegate thereof shall timely prepare, sign,
acknowledge, verify, publish, file and record, as may be necessary or
appropriate, any notices, certificates, statements or instruments required: (a)
to comply with all applicable fictitious business name filing and publication
requirements; (b) to comply with all laws that apply to the Company or the
conduct of its business; (c) to perfect the Company's formation and maintain its
existence; or (d) to enable the Company to hold Company property in the
Company's name.

         SECTION 2.07. Execution by Attorney-In-Fact. Any certificate or other
instrument that a Member may sign, acknowledge and verify under this Article II
may be signed, acknowledged and verified by that Member's attorney-in-fact.

                                   ARTICLE III
                             SHARES AND ADJUSTMENTS

         SECTION 3.01. Shares.

                  (a) The membership interests of the Members in the Company
shall be represented by issued and outstanding shares of limited liability
company interest ("Shares"). The Shares shall be divided into classes, with each
class having the rights and privileges, including voting rights, if any, set
forth in this Agreement or as set forth from time to time with respect to new
classes of Shares authorized in accordance with the provisions of this
Agreement. The Company shall maintain with its books and records a schedule of
all Members and the Shares held by them, which shall be amended and updated from
time to time to reflect changes in Share ownership. The Company shall, upon
request by any Member, advise such Member of the number of Shares that such
Member then holds in each class of Shares and, if requested by a Member, the
percentage interest that such Member's Shares represent in each class of Shares
and in the Company as a whole based on the number of outstanding Shares as of
the date of such request. The Members shall have no interest in the Company
other than the interests conferred by this Agreement and represented by the
Shares, which shall be deemed to be personal property having only the rights
provided in this Agreement. Ownership of a Share shall not entitle a Member to
any title in or to the whole or any part of the property of the Company or to
any right to call for a partition or division of the same or for an accounting.
Every Member by virtue of having become a Member shall be held to have expressly
assented and agreed to the terms hereof and to have become a party hereto.

                                       6
<PAGE>

                  (b) The Members executing this Agreement acknowledge that, as
of the effective time of the adoption of this Agreement, the only Shares
outstanding are Class A Shares, 100% of which are held by JCGI and Member Corp.
Following the execution and delivery of this Agreement, the Company may issue
other Shares or admit other Persons as Members as authorized by the Managing
Member from time to time in such classes and with such rights as the Managing
Member may determine.

         SECTION 3.02. Issuance of Additional Shares; Admission of Members. The
Company may establish eligibility requirements for admission of a subscriber as
a Member and refuse to admit any subscriber that fails to satisfy such
eligibility requirements. Each eligible Person who subscribes for Shares to be
reissued or issued by the Company shall be admitted as a Member of the Company
at the time (i) such Person agrees to be bound by the provisions hereof by
executing an instrument satisfactory to the Managing Member whereby such Person
becomes a party to this Agreement as a Member, (ii) the Managing Member accepts
such instrument on behalf of the Company and (iii) the subscriber makes the
required capital contribution(s), if any. Existing Members shall have no
preemptive or similar right to subscribe to the reissuance or issuance of Shares
of any class of the Company.

                                   ARTICLE IV
                              CAPITAL CONTRIBUTIONS

         SECTION 4.01. Contributions. No Member shall be required to make any
capital contribution to the Company after the date of this Agreement, and no
such capital contribution shall be permitted unless otherwise approved by the
Managing Member.

         SECTION 4.02. Negative Balances. No Member shall have any obligation to
the Company or any other Member to restore any negative balance in his, her or
its Capital Account.

                                    ARTICLE V
                  CAPITAL ACCOUNTS, ALLOCATIONS AND TAX MATTERS

         SECTION 5.01. Capital Accounts.

                  (a) There shall be established for each Member on the books of
the Company a Capital Account that shall be maintained and adjusted as provided
in this Article V. The Capital Account of each Member shall be increased by (i)
the amount of all cash capital contributions (if any) by such Member to the
Company, (ii) the fair market value of any property contributed by such Member
to the Company (net of any liabilities secured by such property that the Company
is considered to assume or take subject to under Section 752 of the Code) and
(iii) the amount of any Net Income (or items of gross income) allocated to such
Member under this Article V. The Capital Account of each Member shall be
decreased by (i) the amount of any cash distributed to such Member by the
Company, (ii) the fair market value of any property distributed to such Member
by the Company (net of any liabilities secured by such property that such Member
is considered to assume or take subject to under Section 752 of the Code) and
(iii) the amount of any Net Loss (or items of loss or deduction) allocated to
such Member under this Article V. The Capital Account of each Member shall also
be adjusted appropriately as determined by the Managing Member to reflect any
other adjustment that the Managing

                                       7
<PAGE>

Member, in its discretion, deems to be required by Treasury Regulation Section
1.704-1 or 1.704-2 or otherwise necessary or appropriate to implement the
provisions of this Agreement.

                  (b) In the event that any Shares in the Company are
Transferred, the Transferee of such Shares shall succeed to the portion of the
Transferor's Capital Account, and the Capital Accounts of the Transferor and the
Transferee shall be adjusted to reflect the subtraction or addition,
respectively, of such portion.

                  (c) In the case of any Member who holds Shares of more than
one class, such Member's Capital Account shall be maintained with subaccounts
reflecting the portion of such Member's Capital Account attributable to each
such class of Shares.

                  (d) The Company shall maintain, in its books and records, a
schedule of the Capital Account balances of the Members, which shall be updated
from time to time as the Managing Member deems appropriate to reflect changes in
the Capital Accounts of the Members.

         SECTION 5.02. Allocations.

                  (a) For each calendar quarter commencing with the quarter
ending March 31, 2003 and thereafter, or any portion thereof with respect to
which the provisions of this Agreement require allocations to be made, all Net
Income and Net Loss, and any component items thereof, shall be allocated among
the Members in proportion to the respective number of Shares held by such
Members as of the last day of the calendar quarter.

                  (b) If there are Transfers, issuances, redemptions of Shares
or other changes in the proportionate holdings of Shares by Members during a
calendar quarter, Net Income and Net Loss shall be allocated among Members based
on their respective Shares as of the last day of such calendar quarter.

                  (c) Notwithstanding the foregoing, the Company shall have the
power to make such allocations for Federal, state and local income tax purposes
as may be necessary to maintain substantial economic effect, or to insure that
such allocations are in accordance with the interests of the Members, in each
case within the meaning of the Code and the Treasury Regulations, provided,
however, that such adjustments to allocations shall be effected in a manner so
as to preserve the intended economic interests of the various holders of Shares
as contemplated under this Agreement.

                  (d) For purposes of clarification, it is intended that (i)
with respect to all periods ending on or before December 31, 2002, the
allocations of Net Income and Net Loss (and any component items thereof) shall
be made to JCC (or its successor, JCGI) and the Prior Members in accordance with
the provisions of the Predecessor Agreement, and (ii) the provisions of this
Section 5.02 shall be effective as of January 1, 2003, and that no allocations
of Net Income or Net Loss for the period from January 1, 2003, through the
Effective Date shall be made to the Prior Members or with respect to Shares held
by the Prior Members under the provisions of Section 5.02 of the Predecessor
Agreement.

                                       8
<PAGE>

         SECTION 5.03. Allocations for Federal Income Tax Purposes.

                  (a) The Company's ordinary income and losses, capital gains
and losses and other items as determined for Federal income tax purposes (and
each item of income, gain, loss or deduction entering into the computation
thereof) shall be allocated among the Members in the same proportions as the
corresponding "book" items are allocated under Section 5.02. Notwithstanding the
foregoing sentence, Federal income tax items relating to any Section 704(c)
Property shall be allocated among the Members in accordance with Section
704(c)(1)(A) of the Code and Treasury Regulation Sections 1.704-1(b)(2)(iv)(g)
and 1.704-3(b) to take into account the difference between the fair market value
and the tax basis of such Section 704(c) Property as of the date of its
contribution to the Company or revaluation under Section 5.01(c), as applicable.
The "traditional method" for Code Section 704(c) allocations, as described in
Treasury Regulation Section 1.704-3(b), shall be used by the Company with
respect to all Section 704(c) Property. Items described in this Section 5.03
shall neither be credited nor charged to the Capital Accounts of the Members.

                  (b) All matters concerning allocations for Federal, state and
local and foreign income tax purposes, including accounting procedures, not
expressly provided for by the terms of this Agreement shall be determined by the
Managing Member.

         SECTION 5.04. Tax Matters Partner. The Managing Member shall act as the
"tax matters partner" of the Company within the meaning of Section 6231(a)(7) of
the Code and in any similar capacity under applicable state or local tax law and
shall manage administrative tax proceedings conducted at the Company level by
the Internal Revenue Service or other taxing authorities. All expenses incurred
by the Managing Member while acting in such capacity shall constitute Company
expenses.

         SECTION 5.05. Tax Treatment. The Members agree that the Company shall
be treated as a partnership for purposes of Federal, state and local income and
other taxes, and further agree not to take any position or make any election, in
a tax return or otherwise, inconsistent therewith.

         SECTION 5.06. Tax Information. The Tax Matters Partner shall cause all
required tax returns (including information returns) of the Company and its
subsidiaries to be timely filed. The Company shall deliver an Internal Revenue
Service Form K-1 (or an equivalent form) to each Member and Prior Member at such
time as would reasonably enable such Member or Prior Member to prepare and
timely file his or her Federal income tax return by the normal due date
therefor, provided, however, in the event of extenuating circumstances, such
Form K-1 (or equivalent form) may be delivered to Members at a later date so
long as it is delivered in time to enable the Member to prepare and timely file
his or her income tax returns by such extended filing date that is automatically
available to the Member.

         SECTION 5.07. Tax Elections. Except as otherwise provided in this
Agreement, all elections required or permitted to be made by the Company under
the Code (or other applicable tax law) and all material decisions with respect
to the calculation of its taxable income or tax loss or other tax items under
the Code (or other applicable tax law) or any other matter encompassed by this
Article V, including any determinations regarding the fair market value of any
property,

                                       9
<PAGE>

shall be made in such manner as may be determined by the Company, and such
determinations shall be conclusive and binding on all Members and Prior Members.

         SECTION 5.08. Tax Withholding. Notwithstanding any provision in this
Agreement to the contrary, the Company is authorized to take any and all actions
that it determines to be necessary or appropriate to insure that the Company
satisfies its withholding and tax payment obligations under Section 1441, 1445,
1446 or any other provision of the Code (or other applicable law). The Company
may withhold any amount that it determines is required to be withheld from any
amounts otherwise distributable or awarded by grant to any Member or Prior
Member under any provision of this Agreement or the Predecessor Agreement;
provided, however, that such amount shall be deemed to have been distributed to
such Member or Prior Member for purposes of this Agreement and the Predecessor
Agreement. In the event that the Company withholds or pays tax in respect of any
Member or Prior Member for any period in excess of any amounts otherwise
distributable to such Member or Prior Member for such period (or there is a
determination by any taxing authority that the Company should have withheld or
paid any tax for any period in excess of the tax, if any, that it actually
withheld or paid for such period), such excess amount (or such additional
amount) shall be reimbursed promptly by such Member or Prior Member to the
Company.

         SECTION 5.09. Fiscal Year. Except as otherwise required by the Code or
as otherwise determined by the Managing Member, the Fiscal Year of the Company
for tax and accounting purposes shall be the calendar year or, solely in the
case of any non-calendar period for which the Company is required to file a
Federal income tax information return, such non-calendar year period.

                                   ARTICLE VI
                          NON-LIQUIDATING DISTRIBUTIONS

         SECTION 6.01. Distributions.

                  (a) With respect to all periods commencing on and after
January 1, 2003, the Company shall make distributions for such periods in such
amounts and at such times as may be determined by the Managing Member in its
discretion, provided, however, the Managing Member shall have no obligation or
duty hereunder to authorize any such distributions. Any such distributions
pursuant to this Section 6.01 with respect to any period shall be made to the
Members in proportion to their respective allocations for such period of Net
Income pursuant to Article V.

                  (b) For purposes of clarification, distributions with respect
to periods ending on or before December 31, 2002, shall be made to JCC (or its
successor, JCGI) and the Prior Members in accordance with the provisions of the
Predecessor Agreement. Consistent with the foregoing, the parties acknowledge
and agree that (i) prior to the Effective Date the Company made the priority
distributions and tax distributions pursuant to Section 6.01 of the Predecessor
Agreement, (ii) prior to June 30, 2003, the Company will make distributions to
JCGI (as successor to JCC) and the Prior Members in amounts sufficient, in
accordance with Section 6.02 of the Predecessor Agreement, to increase aggregate
distributions for the 2002 year (from April 1 to December 31, 2002) to 85% of
the Company's Federal taxable income for such period, and

                                       10
<PAGE>

(iii) following completion of the distributions described in the foregoing
clause (ii), no further distributions shall be made with respect to the 2002
year.

                  (c) The Managing Member hereby delegates to each of the
Managing Member's Chief Executive Officer and Chief Financial Officer the power
and authority to authorize, and to cause the Company to make, any and all
distributions contemplated under this Section 6.01, including the final
distributions for the 2002 year as described in clause (ii) of Section 6.01(b)
and any and all distributions for the 2003 year and subsequent years as
contemplated under Section 6.01(a). The Managing Member may at any time revoke
such delegation of power and authority and, in lieu thereof, prescribe any other
procedure for authorizing distributions under this Section 6.01.

         SECTION 6.02. General Limitation. Notwithstanding any provision to the
contrary in this Agreement, the Company shall not make any distributions except
to the extent permitted under the Delaware Act.

         SECTION 6.03. Set off and Withholding. Notwithstanding any provision to
the contrary in this Agreement or the Predecessor Agreement, the Company may set
off against, or withhold from, any distribution of cash or property in kind to
any Member or Prior Member in respect of any amounts due from such Member or
Prior Member to the Company under this Agreement, the Predecessor Agreement or
any other agreement between the Company and such Member or Prior Member, to the
extent not otherwise paid. Any amounts so set off or withheld shall be applied
by the Company to discharge the obligation in respect of which such amounts were
set off or withheld. All amounts set off or withheld under this Section 6.03
that are attributable to any Member or Prior Member shall be treated as amounts
distributed to such Member or Prior Member for all purposes under this Agreement
and the Predecessor Agreement.

                                   ARTICLE VII
                                BOOKS AND RECORDS

         SECTION 7.01. Books and Records. The financial accounting books and
records of the Company shall be kept in accordance with United States generally
accepted accounting principles. The tax books and records of the Company shall
be kept on the basis of Federal income tax accounting principles using the
accrual method of accounting. The Company shall keep or cause to be kept such
books of account and records with respect to the Company's business as the
Company deems appropriate. Except as otherwise determined by the Managing
Member, the right of a Member or Prior Member to receive information concerning
the Company's affairs, and to have access to the Company's books and records,
shall be limited solely to the rights (if any) provided to such Member or Prior
Member under Section 18-305 of the Delaware Act, all of which rights shall be
subject to such reasonable standards and restrictions as may be imposed by the
Managing Member, and any expenses incurred by the Managing Member or the Company
as a result of the exercise of such rights shall be borne entirely by the
exercising Member or Prior Member.

                                       11
<PAGE>

                                  ARTICLE VIII
                            MANAGEMENT OF THE COMPANY

         SECTION 8.01. Management Under Authority of the Members. The business
and affairs of the Company shall be managed under the authority of the Managing
Member in accordance with the provisions set forth in this Article VIII. The
parties acknowledge that all management authority and responsibility for the
Company is vested in the Managing Member.

         SECTION 8.02. JCM Management.

                  (a) Responsibility and Authority. The chief executive officer
of the Company (the "CEO") and the other officers of the Company (the "Officers"
and, together with the CEO, the "JCM Management") shall have the primary
responsibility for the day-to-day management and operation of the Company's
business and affairs. In managing the business and affairs of the Company, JCM
Management shall act in the best interests of all Members and shall be subject
to the overall supervision and oversight of the Managing Member.

                  (b) Composition of JCM Management.

                           (i) Chief Executive Officer. The primary
         responsibility and authority for the day-to-day management and
         operation of the business and affairs of the Company, including the
         establishment and execution of the investment strategy and investment
         policy of the Company, are hereby delegated to the CEO. The Managing
         Member may remove the CEO at any time, with or without cause, and
         appoint a successor CEO. The compensation of the CEO, inclusive of base
         compensation, bonus compensation arrangements and equity compensation,
         shall be approved by the Managing Member.

                           (ii) Additional Officers. The CEO may select such
         other Officers, if any, as the CEO deems necessary or appropriate for
         the conduct of the business and affairs of the Company, which selection
         of Officers shall be subject to the approval of the Managing Member.
         Officers shall be subject to removal by the CEO or the Managing Member
         at any time, with or without cause. Except as otherwise expressly
         provided in this Agreement, the CEO may delegate to any of the Officers
         the power, right and authority to manage the day-to-day business and
         affairs of the Company and for this purpose to exercise any or all
         authority and to take any or all actions which the CEO or JCM
         Management has the authority to exercise under this Agreement. Any
         Officer may resign as an Officer at any time.

                           (iii) Chief Operating Officer; Management Committee.

                                    (A) Without limiting the generality of
                  Section 8.02(b)(ii), the CEO may delegate all or a portion of
                  the CEO's responsibility and authority for the day-to-day
                  management of the business and affairs of the Company to any
                  one or any combination of a President (the "President"), a
                  Chief Operating Officer (the "COO") or a management committee
                  (the "Management Committee").

                                    (B) Each of the President and the COO shall
                  be an Officer of the Company and shall be designated by the
                  CEO, subject to approval by the

                                       12
<PAGE>

                  Managing Member. The President or the COO may be removed by
                  the CEO or the Managing Member at any time, with or without
                  cause. Each of the President and the COO will report directly
                  to the CEO or to such other Officer or Officers as may be
                  specified by the CEO or the Managing Member from time to time.

                                    (C) The Management Committee shall consist
                  of the CEO and such other Officers as the CEO may select.
                  Officers may be removed from the Management Committee by the
                  CEO at any time, with or without cause. The Management
                  Committee will report directly to the CEO or to such other
                  Officer or Officers as may be specified by the CEO from time
                  to time.

                           (iv) Investment Executives. Without limiting the
         generality of Section 8.02(b)(ii), the CEO may delegate all or a
         portion of the CEO's responsibility and authority for the investment
         strategy and investment policy of the Company to one or more investment
         executives (the "Investment Executives"). Each Investment Executive
         shall be an Officer of the Company and shall be designated by the CEO,
         subject to approval by the Managing Member. Each Investment Executive
         may be removed by the CEO or the Managing Member at any time, with or
         without cause. Each Investment Executive will report directly to the
         CEO or to such other Officer or Officers as may be specified by the CEO
         from time to time.

                  (c) Members of JCM Management as Agents. The members of JCM
Management shall be agents of the Company for the purpose of the Company's
business and affairs. Any action taken by the members of JCM Management in
accordance with this Agreement, and the signature of any member of JCM
Management so authorized by the Company on any agreement, contract, instrument
or other document on behalf of the Company, shall be sufficient to bind the
Company and shall conclusively evidence the authority of the Company with
respect thereto.

                  (d)Schedule of JCM Management. The members of JCM Management
as of the Effective Date, including the CEO, all other Officers, the members of
the Management Committee and Investment Executives, shall be those persons whose
names are initially set forth on Schedule A to this Agreement, and an identical
schedule shall be maintained as part of the records of the Company and amended
from time to time to reflect changes in the members of JCM Management.

         SECTION 8.03. Managing Member Supervision and Oversight.

                  (a) General. The ultimate responsibility for the oversight of
the performance of the CEO and JCM Management is vested in the Managing Member.

                  (b) Management Reports.

                           (i) At such meetings of the JCGI Board as the
         Managing Member may request, appropriate members of JCM Management
         shall provide the JCGI Board with a report as to the business and
         operations of the Company (a "Management Report"). Management Reports
         may include, from time to time, reports on financial,

                                       13
<PAGE>

         marketing, operations, investment management, legal and risk management
         matters of the Company.

                           (ii) From time to time as the Managing Member may
         request, the CEO shall review and discuss with the JCGI Board the
         levels of compensation and the compensation policies and programs
         applicable to the personnel of the Company.

                  (c) Exercise of Managing Member's Authority. For all purposes
of this Agreement, the Managing Member may exercise any and all authority and
power vested in the Managing Member under this Agreement through such officers,
employees or other agents or representatives of the Managing Member as deemed
appropriate by the Managing Member in its discretion (herein any such officer,
employee, agent or representative is referred to as an "Authorized Managing
Member Representative"). Any action taken by an Authorized Managing Member
Representative on behalf of the Managing Member in accordance with this
Agreement, and the signature of an Authorized Managing Member Representative on
any instrument or document on behalf of the Managing Member, shall conclusively
evidence the authority of the Managing Member with respect thereto. An Officer
of the Company who is also an officer of JCGI may, in such capacity as an
officer of JCGI, be an Authorized Managing Member Representative for all
purposes of this Agreement.

         SECTION 8.04. Members.

                  (a) Meetings. The Members shall meet at such times, to discuss
such matters and take such actions, as the Managing Member deems appropriate in
its discretion. With respect to any action or matter that is to be voted upon by
the Members, each Member shall be entitled to one vote for each Share owned by
such Member of record according to the books of the Company.

                  (b) Action Taken Without a Meeting. Any action required or
permitted to be taken at any meeting of Members may be taken by written consent
of the holders of a majority of the Shares entitled to vote on such action,
without any prior notice of such action to the other Members.

         SECTION 8.05. Reliance by Third Parties. Any Person dealing with the
Company, JCM Management or any Member may rely upon a certificate signed by the
CEO, President, COO, Secretary or Assistant Secretary of the Company as to (i)
the identity of such member of JCM Management or such Member, (ii) any factual
matters relevant to the affairs of the Company, (iii) the Persons who are
authorized to execute and deliver any document on behalf of the Company or the
Managing Member, and (iv) any action taken or omitted by the Company, the
Managing Member, JCM Management or any Member.

                                   ARTICLE IX
                               TRANSFERS OF SHARES

         SECTION 9.01. Restrictions on Transfers.

                  (a) A Member other than the Managing Member shall not Transfer
any Share without the written consent of the Managing Member, which consent may
be given or withheld

                                       14
<PAGE>

in the Managing Member's sole discretion. Any Transfer of a Share made in
violation of this Section 9.01 (a) shall be null and void.

                  (b) JCGI may Transfer all or any portion of its Shares at any
time. If JCGI shall Transfer all of its Shares, the Transferee (or the
Transferee with the largest number of Class A Shares, if more than one
Transferee) shall be the Managing Member for purposes of this Agreement.

                  (c) Subject to the Delaware Act, no Transfer shall relieve the
Transferor of any of his, her or its obligations under this Agreement without
the written consent of the Managing Member.

                  (d) The Company may require a Transferee or other recipient of
Shares to execute and deliver to the Company such instruments as the Managing
Member deems necessary or desirable in connection with any Transfer.

         SECTION 9.02. Shares Not Securities. Shares in the Company shall not be
represented by certificates and shall not be "securities" within the meaning of
Sections 8-102 and 8-103(c) of Article 8, Subtitle I, Title 6 of the Delaware
Code and shall constitute "general intangibles" within the meaning of Section
9-106 thereof.

         SECTION 9.03. Effect of Transfers. When any Share is Transferred in
accordance with the terms of this Agreement, the Company shall cause such
Transfer to be registered on the books of the Company.

                                    ARTICLE X
            LIMITATION ON LIABILITY, EXCULPATION AND INDEMNIFICATION

         SECTION 10.01. Limitation on Liability. Except as otherwise expressly
provided in the Delaware Act, the debts, obligations and liabilities of the
Company, whether arising in contract, tort or otherwise, shall be solely the
debts, obligations and liabilities of the Company, and no Covered Person shall
be obligated personally for any such debt, obligation or liability of the
Company; provided, however, that the foregoing does not negate a Member's or
Prior Member's obligation to return funds wrongfully distributed to it. Except
as otherwise expressly provided in the Delaware Act, the liability of the
Members shall be limited to the amount of capital contributions, if any,
required to be made by such Member under this Agreement, but only when and to
the extent the same becomes due under this Agreement. Notwithstanding the
foregoing, nothing in this Article X shall alter any party's obligations to the
Company under any employment, non-compete or nonsolicitation agreement or other
agreement related to such party's current or former employment by the Company.

         SECTION 10.02. Exculpation and Indemnification.

                  (a) Except as otherwise specifically provided in this
Agreement, no Covered Person shall be liable, including under any legal or
equitable theory of fiduciary duty or other theory of liability, to the Company
or to any other Covered Person for any losses, claims, damages or liabilities
incurred by reason of any act or omission performed or omitted by such Covered
Person in good faith on behalf of the Company arising from, related to, or in
connection

                                       15
<PAGE>

with, this Agreement, the Predecessor Agreement or the Company's business or
affairs (including any act or omission by any Member or Prior Member), except
for any losses, claims, damages or liabilities resulting from such party's gross
negligence or willful misconduct. Whenever in this Agreement a Covered Person is
permitted or required to make decisions in good faith, the Covered Person shall
act under such standard and shall not be subject to any other or different
standard (including any legal or equitable standard of fiduciary or other duty)
imposed by this Agreement or any relevant provision of law or in equity or
otherwise.

                  (b) A Covered Person shall be fully protected in relying in
good faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the
Covered Person reasonably believes are within such Person's professional or
expert competence. To the extent that, at law or in equity, an Officer has
duties (including fiduciary duties) and liabilities relating thereto to the
Company or to any Member, such Officer acting in connection with this Agreement,
the Predecessor Agreement or the Company's business or affairs shall not be
liable to the Company or to any Member or Prior Members for its good faith
reliance on the provisions of this Agreement or any approval or authorization
granted by the Managing Member, the Management Committee or the Members.

                  (c) The provisions of this Agreement or the Predecessor
Agreement, to the extent that they limit the duties and liabilities of the
Officers otherwise existing at law or in equity, are agreed by the Members to
replace such other duties and liabilities.

                  (d) The Company shall indemnify, defend and hold harmless each
Covered Person against any losses, claims, damages, liabilities, expenses
(including all reasonable fees and expenses of counsel), judgments, fines,
settlements and other amounts arising from any and all claims, demands, actions,
suits or proceedings, to which such Covered Person may become subject, in
connection with any matter arising out of or in connection with such Covered
Person's actions on behalf of the Company (including such Covered Person's
actions while serving as an officer, director, employee or agent of another
Person at the request of the Company) in connection with the Company's business
or affairs or this Agreement, unless such loss, claim, damage, liability,
expense, judgment, fine, settlement or other amount is a result of a Covered
Person's not acting in good faith on behalf of the Company or such Covered
Person's gross negligence or willful misconduct. If any Covered Person becomes
subject to any action, suit, proceeding or investigation in connection with such
Covered Person's actions on behalf of the Company in connection with any matter
arising out of or in connection with the Company's business or affairs or this
Agreement, other than by reason of any act or omission performed or omitted by
such Covered Person that was not in good faith on behalf of the Company or was
the result of such Covered Person's gross negligence or willful misconduct, the
Company shall reimburse such Covered Person for its reasonable legal and other
reasonable out-of-pocket expenses (including the cost of any investigation and
preparation) as they are incurred in connection therewith; provided that such
Covered Person shall promptly repay to the Company the amount of any such
reimbursed expenses paid to it if it shall be finally judicially determined that
such Covered Person was not entitled to be indemnified by the Company in
connection with such action, suit, proceeding or investigation. If for any
reason (other than the bad faith or willful misconduct of a Covered Person) the
foregoing indemnification is unavailable to such Covered Person, or insufficient
to hold it harmless, then the Company shall contribute to the

                                       16
<PAGE>

amount paid or payable by such Covered Person as a result of such loss, claim,
damage, liability, expense, judgment, fine, settlement or other amount arising
from any claim, demand, action, suit or proceeding to which such Covered Person
may become subject as described above in such proportion as is appropriate to
reflect any relevant equitable considerations.

                  (e) The obligations of the Company under this Section 10.02
shall be satisfied solely out of and to the extent of the Company's assets, and
no Covered Person shall have any personal liability on account thereof.

         SECTION 10.03. Exclusive Jurisdiction. To the fullest extent permitted
by applicable law, each Member hereby agrees that any claim, action or
proceeding by such Member seeking any relief whatsoever against the Company, the
Managing Member or any of its Affiliates or any other Member in such Person's
capacity as a Member based on, arising out of, or in connection with, this
Agreement, the Predecessor Agreement or the Company's affairs shall be brought
only in an appropriate State court in the State of Colorado or the Federal
courts located in the City and County of Denver, and not in any other State or
Federal court in the United States of America or any court in any other country;
provided, however, that if a Covered Person brings any claim, action, defense or
proceeding against the Company or any Member in any other court, the Company or
such Member may bring any claim, action , defense or proceeding against such
Covered Person in such court. Each Member acknowledges that, in the event of any
breach of this Section 10.03, the Company, the other Members or the Affiliates
thereof will have no adequate remedy at law and shall be entitled to injunctive
relief to enforce the terms of this Section 10.03.

                                   ARTICLE XI
                           DISSOLUTION AND TERMINATION

         SECTION 11.01. Dissolution. The Managing Member shall have full power
and authority to take any actions at any time it deems appropriate to dissolve,
terminate or liquidate the Company or to require apportionment, appraisal or
partition of the Company or any of its assets, or to file a bill for an
accounting with respect to the Company. The death, resignation, retirement,
removal, bankruptcy, permanent disability or legal incapacity of any Member
shall not dissolve or terminate the Company, and all Members hereby agree that
in any such event the business of the Company shall be continued, unless the
Company is required to be dissolved.

         SECTION 11.02. Winding Up of the Company. Upon dissolution, the
Company's business shall be liquidated in an orderly manner. The Managing Member
shall act as the liquidator (unless it elects to appoint a liquidator) to wind
up the affairs of the Company pursuant to this Agreement. If there shall be no
Managing Member, the Member with the largest number of Shares may approve one or
more Persons to act as the liquidator in carrying out such liquidation. In
performing its duties, the liquidator is authorized to sell, distribute,
exchange or otherwise dispose of the assets of the Company in accordance with
the Delaware Act and in any manner that the liquidator shall determine to be in
the best interests of the Members.

         SECTION 11.03. Liquidating Distributions. The proceeds of the
liquidation of the Company shall be distributed in the following amounts and
order of priority:

                                       17
<PAGE>

                  (a) An amount sufficient to satisfy all of the Company's
liabilities (whether by payment or by making reasonable provision for payment
thereof, including the setting up of any reserves that are, in the judgment of
the liquidator, reasonably necessary therefor) shall be distributed to, or
reserved for the benefit of, the creditors (including any Members or their
respective Affiliates that are creditors) of the Company.

                  (b) Any remaining liquidation proceeds shall be distributed to
the Members in accordance with the following provisions:

                           (i) First, all of the remaining assets of the Company
         shall be deemed to have been sold for their fair market value, and the
         Capital Accounts of the Members shall be credited or debited (as
         applicable) to reflect the allocations of Net Income or Net Loss (as
         applicable) that would result from such a sale of assets in the same
         manner and to the same extent as if such assets had been sold and such
         Net Income or Net Loss had been allocated among the Members in
         accordance with the provisions of Article V.

                           (ii) Second, after giving effect to all
         contributions, distributions and allocations for all periods, all
         remaining liquidation proceeds shall be distributed to the Members in
         proportion to their respective positive Capital Account balances, with
         such distributions to be made by the end of the calendar year or, if
         later, within 90 days following the date of dissolution of the Company.

         SECTION 11.04. Distribution of Property. In the event it is necessary
in connection with the liquidation of the Company to distribute property in
kind, such property shall be distributed on the basis of its fair market value
net of any liabilities encumbering such assets and, to the greatest extent
possible, shall be distributed pro rata in accordance with the total amounts to
be distributed to each Member as liquidation proceeds pursuant to Section
11.03(b)(ii). Notwithstanding the foregoing, to avoid an administratively
burdensome large number of owners of the same property, the liquidator shall
have the discretion to distribute cash in lieu of property in the case of
Members who otherwise would receive only a relatively small interest in such
property (as determined by the Managing Member).

         SECTION 11.05. Termination. The Company shall terminate when all of the
assets of the Company, after payment of, or reasonable provision for the payment
of, all debts and liabilities of the Company, shall have been distributed to the
Members in the manner provided for in this Article XI and articles of
dissolution have been filed in the manner required by the Delaware Act.

                                   ARTICLE XII
                                  MISCELLANEOUS

         SECTION 12.01. No Third Party Beneficiaries. This Agreement is not
intended to confer any rights or remedies hereunder upon, and shall not be
enforceable by, any Person other than the parties hereto and, with respect to
the provisions of Article X, each Covered Person.

         SECTION 12.02. Creditors. None of the provisions of this Agreement
shall be for the benefit of or enforceable by any creditor of the Company or of
any Member, except to the extent the Company may otherwise expressly agree in
writing.

                                       18
<PAGE>

         SECTION 12.03. Waiver. No failure by any party to insist upon the
strict performance of any covenant, term or condition of this Agreement or to
exercise any right or remedy consequent upon a breach of any such covenant, term
or condition shall operate as a waiver of such or any other covenant, term or
condition of this Agreement. Any Member may, but shall not be under any
obligation to, waive any of his, her or its rights or conditions to his, her or
its obligations hereunder, or any duty, obligation or covenant of any other
Member to such waiving Member. No waiver shall affect or alter the remainder of
this Agreement but each and every covenant, agreement, term and condition hereof
shall continue in full force and effect with respect to any other then existing
or subsequent breach.

         SECTION 12.04. Binding Effect. This Agreement shall be binding upon and
inure to the benefit of all the parties hereto and their successors and
permitted assigns.

         SECTION 12.05. Amendments and Consents. This Agreement (including any
provisions incorporated in this Agreement by reference) may be amended, and any
provision of this Agreement may be waived, by the affirmative vote or written
consent of the holders of a majority of the outstanding Shares.

         SECTION 12.06. Integration. This Agreement constitutes the entire
agreement among the parties to this Agreement pertaining to the subject matter
of this Agreement and supersedes all prior and contemporaneous agreements and
understandings of the parties in connection therewith. Without limitation on the
foregoing, and except as otherwise provided herein, as between the parties
hereto this Agreement restates and supercedes in its entirety the Limited
Liability Agreement of Janus Capital Management LLC dated as of April 1, 2002.
Notwithstanding the foregoing, it is intended that the terms and provisions of
the Predecessor Agreement shall continue to be effective for all matters arising
prior to the Effective Date and shall be binding on JCGI and all other Prior
Members with respect to such matters, except (i) with respect to allocations and
distributions for periods commencing on or after January 1, 2003, which shall be
governed by the provisions of Sections 5.02 and 6.01 of this Agreement, or (ii)
as otherwise expressly provided in this Agreement. No oral covenant,
representation or condition shall affect, or be effective to interpret, change
or restrict, the express provisions of this Agreement. Each Schedule to this
Agreement is hereby incorporated into this Agreement and shall be deemed an
integral part of this Agreement.

         SECTION 12.07. Headings. The titles of Articles and Sections of this
Agreement are for convenience only and shall not be interpreted to limit or
amplify the provisions of this Agreement.

         SECTION 12.08. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which, taken
together, shall constitute one and the same instrument, which may be
sufficiently evidenced by one counterpart. For all purposes, signatures
delivered and exchanged by facsimile transmission shall be binding and effective
to the same extent as original signatures.

         SECTION 12.09. Severability. Each provision of this Agreement shall be
considered severable and if for any reason any provision or provisions hereof
are determined to be invalid

                                       19
<PAGE>

and contrary to any existing or future law, such invalidity shall not impair the
operation of or affect those portions of this Agreement which are valid.

         SECTION 12.10. Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without giving
effect to the conflicts of law principles thereof.

         SECTION 12.11. Jurisdiction; Consent to Service of Process.

                  (a) Each of the Members hereby irrevocably and unconditionally
submits to the nonexclusive jurisdiction of any Colorado State court or Federal
court of the United States of America sitting in the City and County of Denver
in any action or proceeding arising out of or relating to this Agreement, the
Predecessor Agreement or the Company's business or affairs or for recognition or
enforcement of any judgment, and each of the Members hereby irrevocably and
unconditionally agrees that, except as expressly provided otherwise in Section
10.03, all claims in respect of any such action or proceeding may be heard and
determined in such Colorado State court or, to the extent permitted by law, in
such Federal court. Each of the Members agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

                  (b) Each of the Members hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement, the
Predecessor Agreement or the Company's business or affairs in any Colorado State
or Federal court sitting in the City and County of Denver. Each of the Members
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

                  (c) Each of the Members irrevocably consents to service of
process in connection with any matter referred to above by first-class,
certified mail, postage prepaid, at the Member's address as set forth in the
Company's books and records. Nothing in this Agreement will affect the right of
any party to this Agreement to serve process in any other manner permitted by
law.

                                       20
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed by the
undersigned as of the day and year first above written.

                               JANUS CAPITAL GROUP INC.

                               By:  /s/ Loren M. Starr
                                  ---------------------------------------
                                     Loren M. Starr
                                     Chief Financial Officer and Vice President

                               JANUS MANAGEMENT HOLDINGS CORPORATION

                               By:  /s/ Thomas A. Early
                                  ---------------------------------------
                                     Thomas A. Early
                                     General Counsel and Vice President

                                       21
<PAGE>

                                   SCHEDULE A

                                 JLLC MANAGEMENT
                           (AS OF THE EFFECTIVE DATE)

                         [List held by Legal Department]

                                       22

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