Document:

Ex. 10.4

CHANGE IN CONTROL AGREEMENT

THIS AGREEMENT, dated as of August 1, 2005, is made by and between Janus
Capital Group Inc. (the “Company”) and Gregory A. Frost (the “Executive”).

WHEREAS, the Company considers it essential to the best interests of the
Company to foster the continued employment of key personnel; and

WHEREAS, the Company recognizes that the possibility of a Change in
Control always exists and that such possibility, and the uncertainty and
questions which it may raise among employees, may result in the departure or
distraction of key personnel to the detriment of the Company; and

WHEREAS, the Company has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of key
personnel, including the Executive, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from
the possibility of a Change in Control;

NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the Company and the Executive hereby agree as
follows:

1.             Defined Terms.  The definitions of capitalized terms used in
this Agreement are provided in the last Section hereof.

2.             Term of Agreement.  The Term of this Agreement shall commence on
the date hereof and shall continue in effect through December 31, 2006; provided,
however, that commencing on January 1, 2006 and each January 1
thereafter, the Term shall automatically be extended for one additional year
unless, not later than September 30 of the preceding year, the Company or the
Executive shall have given notice not to extend the Term; and further  provided,
however, that if a Change in Control shall have occurred during the
Term, the Term shall expire no earlier than twenty-four (24) months beyond the
month in which such Change in Control occurred. 
Notwithstanding anything herein to the contrary, the Term of the
Agreement shall immediately terminate if, prior to the Change in Control, the
Company (or such other Affiliate of the Parent that then employs the Executive)
ceases to be an Affiliate of the Parent.

3.             Company’s Covenants Summarized.  In order to induce the Executive to remain in
the employ of the Company and in consideration of the Executive’s covenants set
forth in Section 4 hereof, the Company agrees, under the conditions described
herein, to pay the Executive the Severance Payments and the other payments and
benefits described herein.  Except as
provided in Section 9.1 hereof, no Severance Payments shall be payable under
this Agreement unless there shall have been (or, under the terms of the second
sentence of Section 6.1 hereof, there shall be deemed to have been) a
termination of the Executive’s employment with the Company following a Change
in Control and during the Term.  This Agreement
shall not be construed as creating an express or implied contract of employment
and, except as otherwise agreed in 

writing between the Executive and the Company, the Executive shall not
have any right to be retained in the employ of the Company.

 

4.             The Executive’s Covenants.  The Executive agrees that, subject to the
terms and conditions of this Agreement, in the event of a Potential Change in
Control during the Term, the Executive will remain in the employ of the Company
until the earliest of (i) a date which is six (6) months from the date of such
Potential Change in Control, (ii) the date of a Change in Control, (iii) the
date of termination by the Executive of the Executive’s employment for Good
Reason or by reason of death, Disability or Retirement, or (iv) the termination
by the Company of the Executive’s employment for any reason.

5.             Compensation Other Than
Severance Payments.

5.1           Following
a Change in Control and during the Term, during any period that the Executive
fails to perform the Executive’s full-time duties with the Company as a
result of incapacity due to physical or mental illness, the Company shall pay
the Executive’s base salary to the Executive at the rate in effect at the
commencement of any such period, together with all compensation and benefits
payable to the Executive under the terms of any compensation or benefit plan,
program or arrangement maintained by the Company during such period (other than
any disability plan), until the Executive’s employment is terminated by the Company
for Disability.

5.2           If the
Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay the Executive’s base salary
and incentive compensation to the Executive through the Date of Termination as
in effect immediately prior to the Date of Termination or, if higher, as in
effect immediately prior to the Change in Control, together with all
compensation and benefits payable to the Executive through the Date of
Termination under the terms of the Company’s compensation and benefit plans,
programs or arrangements as in effect immediately prior to the Date of
Termination or, if more favorable to the Executive, as in effect immediately
prior to the Change in Control.

5.3           If the
Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay to the Executive the
Executive’s normal post-termination compensation and benefits as such payments
become due.  Such post-termination compensation
and benefits shall be determined under, and paid in accordance with, the
Company’s retirement, insurance and other compensation or benefit plans,
programs and arrangements as in effect immediately prior to the Date of
Termination or, if more favorable to the Executive, as in effect immediately
prior to the Change in Control.

6.             Severance Payments.

6.1           If the
Executive’s employment is terminated following a Change in Control and during
the Term, other than (A) by the Company for Cause, (B) by reason of death or
Disability, or (C) by the Executive without Good Reason, then, the Company
shall pay the Executive the amounts, and provide the Executive the benefits,
described in 

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this Section 6.1 (“Severance Payments”) and Section 6.2, in addition to
any payments and benefits to which the Executive is entitled under Section 5
hereof.  For purposes of this Agreement,
the Executive’s employment shall be deemed to have been terminated following a
Change in Control by the Company without Cause or by the Executive with Good
Reason, if (i) the Executive’s employment is terminated by the Company without
Cause prior to a Change in Control (whether or not a Change in Control ever
occurs) and such termination was at the request or direction of a Person who
has entered into an agreement with the Parent the consummation of which would
constitute a Change in Control, (ii) the Executive terminates his employment
for Good Reason prior to a Change in Control (whether or not a Change in
Control ever occurs) and the circumstance or event which constitutes Good
Reason occurs at the request or direction of such Person, or (iii) the
Executive’s employment is terminated by the Company without Cause or by the
Executive for Good Reason and such termination or the circumstance or event
which constitutes Good Reason is otherwise in connection with or in
anticipation of a Change in Control (whether or not a Change in Control ever
occurs).

 

(A)              In
lieu of any further salary payments to the Executive for periods subsequent to
the Date of Termination and in lieu of any severance benefit otherwise payable
to the Executive, the Company shall pay to the Executive a lump sum severance
payment, in cash, equal to two times the sum of (1) the Executive’s cash compensation in the calendar year prior to the
Date of Termination or, if higher, earned in the calendar year immediately
prior to the Change in Control and (2) the value of the Company’s
contributions made pursuant to the Janus Capital Group Inc. 401(k), Profit
Sharing and Employee Stock Ownership Plan (or any successor plan) on behalf of
the Executive in the four quarters immediately prior to the Date of Termination
or, if higher, in the four quarters immediately prior to the Change in
Control.  For purposes of calculating the
cash compensation payment under Section 6.1(A)(1), the Executive’s annual
target bonus in the calendar year immediately prior to the Date of Termination
or the Change in Control, as applicable, will be applied rather than the actual
bonus amount paid to the Executive.

(B)               For
the twenty-four (24) month period immediately following the Date of
Termination, the Company shall arrange to provide the Executive and his
dependents medical, dental, and vision insurance benefits substantially similar
to those provided to the Executive and his dependents immediately prior to the
Date of Termination or, if more favorable to the Executive, those provided to
the Executive and his dependents immediately prior to the Change in Control, at
no greater after tax cost to the Executive than the after tax cost to the
Executive immediately prior to such date. 
Benefits otherwise receivable by the Executive pursuant to this Section
6.1(B) shall be reduced to the extent benefits of the same type are received by
or made available to the Executive during the twenty-four (24) month period
following the Executive’s termination of employment (and any such benefits
received by or made available to the Executive shall be reported to the Company
by the Executive); provided, however, that the Company shall
reimburse the Executive for the excess, if any, of the after tax cost of such
benefits to the Executive over such cost immediately prior to the Date of
Termination or, if more favorable to the Executive, the 

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Change
in Control.  The
coverage provided pursuant to this Section 6.1(B) shall run concurrently with
and shall be offset against any continuation coverage under Part 6 of Title I
of Employee Retirement Income Security Act of 1974, as amended.

(C)               The
Company will make available to the Executive three months of outplacement
service at no cost to the Executive through a provider of such services
selected by the Company.

6.2           (A)          Whether or not the Executive becomes
entitled to the Severance Payments, if any payment or benefit received or to be
received by the Executive (including any payment or benefit received in
connection with a Change in Control or the termination of the Executive’s
employment, whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement) (all such payments and benefits, excluding the Gross-Up
Payment, being hereinafter referred to as the “Total Payments”) will be subject
(in whole or part) to the Excise Tax, then, the Company shall pay to the
Executive an additional amount (the “Gross-Up Payment”) such that the net
amount retained by the Executive, after deduction of any Excise Tax on the
Total Payments and any federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, and after taking into account the phase
out of itemized deductions and personal exemptions attributable to the Gross-Up
Payment, shall be equal to the Total Payments. 
For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Executive’s residence on the
Date of Termination (or if there is no Date of Termination, then the date on
which the Gross-Up Payment is calculated for purposes of this Section 6.2), net
of the maximum reduction in federal income tax which could be obtained from
deduction of such state and local taxes.

(B)           For purposes of determining whether
any of the Total Payments will be subject to the Excise Tax and the amount of
such Excise Tax, (i) all of the Total Payments shall be treated as “parachute
payments” within the meaning of section 280G(b)(2) of the Code, unless in the
opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive
and selected by the accounting firm which was, immediately prior to the Change
in Control, the Company’s independent auditor (the “Auditor”), such other payments
or benefits (in whole or in part) do not constitute parachute payments,
including by reason of section 280G(b)(4)(A) of the Code, (ii) all “excess
parachute payments” within the meaning of section 280G(b)(l) of the Code shall
be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel,
such excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered, within the meaning of section
280G(b)(4)(B) of the Code, in excess of the Base Amount allocable to such
reasonable compensation, or are otherwise not subject to the Excise Tax, and
(iii) the value of any noncash benefits or any deferred payment or benefit
shall be determined by the Auditor in accordance with the principles of sections
280G(d)(3) and (4) of the Code.  Prior to
the payment date set forth in Section 6.3 hereof, the Company shall provide the
Executive with its calculation of the amounts referred to in this Section
6.2(B) and such supporting materials as are 

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reasonably necessary for the
Executive to evaluate the Company’s calculations.  If the Executive disputes the Company’s
calculations (in whole or in part), the reasonable opinion of Tax Counsel with
respect to the matter in dispute shall prevail.

6.3           The
payments provided in subsection (A) of Section 6.1 hereof and in Section 6.2
hereof shall be made not later than the fifth day following the Date of
Termination (or if there is no Date of Termination, then the date on which the
Gross-Up Payment is calculated for purposes of Section 6.2 hereof); provided,
however, that if the amounts of such payments cannot be finally
determined on or before such day, the Company shall pay to the Executive on
such day an estimate, as determined in good faith by the Executive or, in the
case of payments under Section 6.2 hereof, in accordance with Section 6.2
hereof, of the minimum amount of such payments to which the Executive is
clearly entitled and shall pay the remainder of such payments (together with
interest on the unpaid remainder (or on all such payments to the extent the
Company fails to make such payments when due) at 120% of the rate provided in
section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be
determined but in no event later than the thirtieth (30th) day after the Date
of Termination.  At the time that
payments are made under this Agreement, the Company shall provide the Executive
with a written statement setting forth the manner in which such payments were
calculated and the basis for such calculations including, without limitation,
any opinions or other advice the Company has received from Tax Counsel, the
Auditor or other advisors or consultants (and any such opinions or advice which
are in writing shall be attached to the statement).

6.4           In the
event the Executive incurs legal fees and expenses disputing in good faith any
issue hereunder relating to the termination of the Executive’s employment,
seeking in good faith to obtain or enforce any benefit or right provided by
this Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of section 4999 of the Code to any payment or
benefit provided hereunder, the Company shall reimburse the Executive for such
legal fees and expenses if the Executive prevails, in material part, in such
dispute.

7.             Termination Procedures and
Compensation During Dispute.

7.1           Notice
of Termination.  After a Change in
Control and during the Term, any purported termination of the Executive’s
employment (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other party hereto in
accordance with Section 10 hereof.  For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated.  Further, a
Notice of Termination for Cause is required to include a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters (3/4) of
the entire membership of the Board at a meeting of the Board which was called
and held for the purpose of considering such termination (after reasonable
notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board) finding that, in the good
faith opinion of the Board, the Executive was guilty of conduct set forth 

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in
clause (i) or (ii) of the definition of Cause herein, and specifying the
particulars thereof in detail.

7.2           Date of
Termination.  “Date of Termination,”
with respect to any purported termination of the Executive’s employment after a
Change in Control and during the Term, shall mean (i) if the Executive’s
employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to
the full-time performance of the Executive’s duties during such thirty (30) day
period), and (ii) if the Executive’s employment is terminated for any other
reason, the date specified in the Notice of Termination (which, in the case of
a termination by the Company, shall not be less than thirty (30) days (except
in the case of a termination for Cause) and, in the case of a termination by
the Executive, shall not be less than fifteen (15) days nor more than sixty
(60) days, respectively, from the date such Notice of Termination is given).

7.3           Dispute
Concerning Termination.  If within
fifteen (15) days after any Notice of Termination is given, or, if later, prior
to the Date of Termination (as determined without regard to this Section 7.3),
the party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, the Date of Termination shall be
extended until the earlier of (i) the date on which the Term ends or (ii) the
date on which the dispute is finally resolved, either by mutual written
agreement of the parties or by a final judgment, order or decree of a court of
competent jurisdiction (which is not appealable or with respect to which the
time for appeal therefrom has expired and no appeal has been perfected); provided,
however, that the Date of Termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in good faith and
the Executive pursues the resolution of such dispute with reasonable diligence.

7.4           Compensation
During Dispute.  If a purported
termination occurs following a Change in Control and during the Term and the
Date of Termination is extended in accordance with Section 7.3 hereof, the
Company shall continue to pay the Executive the full compensation in effect
when the notice giving rise to the dispute was given (including, but not
limited to, salary) and continue the Executive as a participant in all
compensation, benefit and insurance plans in which the Executive was
participating when the notice giving rise to the dispute was given, until the Date
of Termination, as determined in accordance with Section 7.3 hereof.  Amounts paid under this Section 7.4 are in
addition to all other amounts due under this Agreement (other than those due
under Section 5.2 hereof) and shall not be offset against or reduce any other
amounts due under this Agreement.

8.             No Mitigation.  The Company agrees that, if the Executive’s
employment with the Company terminates during the Term, the Executive is not
required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive by the Company pursuant to Section 6 hereof or
Section 7.4 hereof.  Further, except as
specifically provided in Section 6.1(B) hereof, no payment or benefit provided
for in this Agreement shall be reduced by any compensation earned by the
Executive as the result of employment by another employer, by retirement
benefits, by offset against any amount claimed to be owed by the Executive to
the Company, or otherwise.

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9.             Successors; Binding Agreement.

9.1           In
addition to any obligations imposed by law upon any successor to the Company,
and subject to the last sentence of Section 2, the Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. 
Failure of the Company to obtain such assumption and agreement prior to
the effectiveness of any such succession shall be a breach of this Agreement
and shall entitle the Executive to compensation from the Company in the same
amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason
after a Change in Control, except that, for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination.

9.2           This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
If the Executive shall die while any amount would still be payable to
the Executive hereunder (other than amounts which, by their terms, terminate
upon the death of the Executive) if the Executive had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the executors, personal representatives or
administrators of the Executive’s estate.

10.           Notices.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States regis­tered mail, return receipt requested, postage prepaid, addressed,
if to the Executive, to the address on record at the Company and, if to the Company,
to the address set forth below, or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon actual receipt:

	
  

  	
  To the Company:

  
	
   

  	
   

  
	
   

  	
  Janus Capital
  Group Inc.

  
	
   

  	
  151 Detroit
  Street

  
	
   

  	
  Denver, Colorado
  80206

  
	
   

  	
  Attn.: General
  Counsel

  

 

11.           Miscellaneous.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and the Company, provided,
however, that the Company may amend the Agreement in a manner reasonably
intended to avoid the acceleration of tax and the possible imposition of
penalties under Section 409A of the Code. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or of any lack of compliance with, any condition or provision
of this 

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Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.  This Agreement supersedes any other
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof which have been made by either party; provided,
however, that this Agreement shall supersede any agreement setting forth
the terms and conditions of the Executive’s employment with the Company only in
the event that the Executive’s employment with the Company is terminated on or
following a Change in Control, by the Company other than for Cause or by the
Executive for Good Reason or prior to a Change in Control pursuant to the
second sentence of Section 6.1 of this Agreement.   The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
Delaware.  All references to sections of
the Exchange Act or the Code shall be deemed also to refer to any successor
provisions to such sections.  Any
payments provided for hereunder shall be paid net of any applicable withholding
required under federal, state or local law and any additional withholding to
which the Executive has agreed.  The
obligations of the Company and the Executive under this Agreement which by
their nature may require either partial or total performance after the
expiration of the Term (including, without limitation, those under Sections 6
and 7 hereof) shall survive such expiration.

12.           Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

13.           Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

14.           Settlement of Disputes.  All claims by the Executive for benefits
under this Agreement shall be directed to and determined by the Board and shall
be in writing.  Any denial by the Board
of a claim for benefits under this Agreement shall be delivered to the
Executive in writing and shall set forth the specific reasons for the denial
and the specific provisions of this Agreement relied upon.  The Board shall afford a reasonable opportunity
to the Executive for a review of the decision denying a claim and shall further
allow the Executive to appeal to the Board a decision of the Board within sixty
(60) days after notification by the Board that the Executive’s claim has been
denied.  Notwithstanding the above, in
the event of any dispute, any decision by the Board hereunder shall be subject
to a de novo review by the court.

15.           Definitions.  For purposes of this Agreement, the following
terms shall have the meanings indicated below:

(A)          “Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

(B)           “Auditor”
shall have the meaning set forth in Section 6.2 hereof.

(C)           “Base
Amount” shall have the meaning set forth in section 280G(b)(3) of the Code.

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(D)          “Board”
shall mean the Board of Directors of the Parent.

(E)           “Cause”
for termination by the Company of the Executive’s employment shall mean (i) the
willful and continued failure by the Executive to substantially perform the
Executive’s duties with the Company (other than any such failure resulting from
the Executive’s incapacity due to physical or mental illness or any such actual
or anticipated failure after the issuance of a Notice of Termination for Good
Reason by the Executive pursuant to Section 7.1 hereof) that has not been cured
within 30 days after a written demand for substantial performance is delivered
to the Executive by the Board, which demand specifically identifies the manner
in which the Board believes that the Executive has not substantially performed
the Executive’s duties;  (ii) the willful
engaging by the Executive in conduct which is demonstrably and materially
injurious to the Company, monetarily or otherwise; or (iii) a willful
or reckless violation by the Executive of a material legal or regulatory
requirement that is materially and demonstrably injurious to the Company.  For purposes of this definition, no act, or
failure to act, on the Executive’s part shall be deemed “willful” unless done,
or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s act, or failure to act, was in the best
interest of the Company.  Any act, or
failure to act, based upon express written authority by the Board, Chief
Executive Officer and/or Chief Investment Officer with respect to such act or
omission or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company.

(F)           A “Change
in Control” shall be deemed to have occurred if the event set forth in any one
of the following paragraphs shall have occurred:

(1)           An acquisition by any Person of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (A) the then outstanding shares of
common stock of the Parent (the “Outstanding Parent Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Parent
entitled to vote generally in the election of directors (the “Outstanding
Parent Voting Securities”); excluding, however, the following:  (i) any acquisition directly from the Parent,
other than an acquisition by virtue of the exercise of a conversion privilege
unless the security being so converted was itself acquired directly from the
Parent, (ii) any acquisition by the Parent, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Parent
or any entity controlled by the Parent, or (iv) any acquisition pursuant to a
transaction which complies with clauses (A), (B) and (C) of subsection (3) of
this definition; or

(2)           A change in the composition of the
Board such that the individuals who, as of the effective date of the this
Agreement, constitute the Board (such Board shall be hereinafter referred to as
the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, for purposes of this definition,
that any individual who 

 9
 

becomes a member of the
Board subsequent to the effective date hereof, whose election, or nomination
for election by the Parent’s shareholders, was approved by a vote of at least a
majority of those individuals who are members of the Board and who were also
members of the Incumbent Board (or deemed to be such pursuant to this proviso)
shall be considered as though such individual were a member of the Incumbent
Board; but, provided  further, that any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board shall not be so considered as a member of the Incumbent
Board; or

(3)           Consummation of a reorganization,
merger or consolidation or sale or other disposition of all or substantially
all of the assets of the Parent or the acquisition of the assets or stock of
another entity (“Business Combination”); excluding, however, such a Business
Combination pursuant to which (A) all or substantially all of the individuals
and entities who are the beneficial owners, respectively, of the Outstanding
Parent Common Stock and Outstanding Parent Voting Securities immediately prior
to such Business Combination will beneficially own, directly or indirectly,
more than 50% of, respectively, the outstanding shares of common stock, and the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Parent
or all or substantially all the Parent’s assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Parent
Common Stock and Outstanding Parent Voting Securities, as the case may be, (B)
no Person (other than the Parent or any employee benefit plan (or related
trust) of the Parent or the corporation resulting from such Business
Combination) will beneficially own, directly or indirectly, 20% or more of,
respectively, the outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in
the election of directors except to the extent that such ownership existed
prior to the Business Combination; and (C) individuals who were members of the
Incumbent Board will constitute at least a majority of the members of the board
of directors of the corporation resulting form such Business Combination; or

(4)           The approval by the stockholders of
the Parent of a complete liquidation or dissolution of the Parent.

(G)           “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

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(H)          “Company”
shall mean Janus Capital Group Inc., collectively with its Affiliates, and any
successor to its business and/or assets which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

(I)            “Date of
Termination” shall have the meaning set forth in Section 7.2 hereof.

(J)            “Disability”
shall be deemed the reason for the termination by the Company of the Executive’s
employment, if, as a result of the Executive’s incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time
performance of the Executive’s duties with the Company for a period of six (6)
consecutive months, the Company shall have given the Executive a Notice of
Termination for Disability, and, within thirty (30) days after such Notice of
Termination is given, the Executive shall not have returned to the full-time
performance of the Executive’s duties. 
For purposes of this Agreement, “Disability” shall be as defined under,
and the Executive must comply with, the then-current long-term disability
policy of the Company.

(K)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

(L)           “Excise
Tax” shall mean any excise tax imposed under section 4999 of the Code.

(M)         “Executive” shall mean the individual
named in the first paragraph of this Agreement.

(N)          “Good
Reason” for termination by the Executive of the Executive’s employment shall
mean the occurrence (without the Executive’s express written consent which
specifically references this Agreement) after any Change in Control, or prior
to a Change in Control under the circumstances described in clauses (ii) and
(iii) of the second sentence of Section 6.1 hereof (treating all references in
paragraphs (1) through (4) below to a “Change in Control” as references to a “Potential
Change in Control”), of any one of the following acts by the Company, or
failures by the Company to act, unless, in the case of any act or failure to
act described in paragraph (1), or (4) below, such act or failure to act is
corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

(1)           a substantial adverse alteration in
the nature or status of the Executive’s responsibilities from those in effect
immediately prior to the Change in Control other than any such alteration
primarily attributable to the fact that the Parent may no longer be a public
company or to other changes in the identity, nature or structure of the Parent;
and provided, that a change in the Executive’s title or reporting
relationships shall not of itself constitute Good Reason (unless such change
results in a substantial adverse alteration as described above);

 11
 

(2)           a material reduction in the Executive’s
aggregate target compensation as in effect immediately prior to the Change in
Control or a material adverse change in the methodology used to determine
incentive compensation; provided, however, that changes to
individual components of Executive’s compensation comprising aggregate target
compensation shall not constitute Good Reason;

(3)           the relocation of the Executive’s
principal place of employment to a location more than 40 miles from the
Executive’s principal place of employment immediately prior to the Change in
Control or the Company’s requiring the Executive to be based anywhere other
than such principal place of employment (or permitted relocation thereof)
except for required travel on the Company’s business to an extent substantially
consistent with the Executive’s present business travel obligations;

(4)           any purported termination of the
Executive’s employment which is not effected pursuant to a Notice of
Termination satisfying the requirements of Section 7.1 hereof; for purposes of
this Agreement, no such purported termination shall be effective.  The Executive’s right to terminate the
Executive’s employment for Good Reason shall not be affected by the Executive’s
incapacity due to physical or mental illness.

The Executive’s
continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder.

(O)          “Gross Up
Payment” shall have the meaning set forth in Section 6.2 hereof.

(P)           “Notice of
Termination” shall have the meaning set forth in Section 7.1 hereof.

(Q)          “Parent”
shall mean Janus Capital Group Inc.

(R)           “Person”
shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term
shall not include (i) the Company (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or
(iv) a corporation owned, directly or indirectly, by the shareholders of the
Company in substantially the same proportions as their ownership of stock of
the Company.

(S)           “Potential
Change in Control” shall be deemed to have occurred if the event set forth in
any one of the following paragraphs shall have occurred:

(1)           the Parent enters into an agreement,
the consummation of which would result in the occurrence of a Change in
Control;

 12
 

 

(2)           the Parent or any Person publicly
announces an intention to take or to consider taking actions which, if
consummated, would constitute a Change in Control;

(3)           any Person becomes the beneficial
owner, directly or indirectly, of securities of the Parent representing 15% or
more of either the then outstanding shares of common stock of the Parent or the
combined voting power of the Parent’s then outstanding securities (not including
in the securities beneficially owned by such Person any securities acquired
directly from the Parent or its Affiliates); or

(4)           the Board adopts a resolution to the
effect that, for purposes of this Agreement, a Potential Change in Control has
occurred.

(T)           “Retirement”
shall be deemed the reason for the termination by the Executive of the
Executive’s employment if such employment is terminated in accordance with the
Company’s retirement policy, including early retirement, generally applicable
to its salaried employees.

(U)          “Severance
Payments” shall have the meaning set forth in Section 6.1 hereof.

(V)           “Tax
Counsel” shall have the meaning set forth in Section 6.2 hereof.

(W)         “Term” shall
mean the period of time described in Section 2 hereof (including any extension,
continuation or termination described therein).

(X)          “Total
Payments” shall mean those payments so described in Section 6.2 hereof.

[SIGNATURE PAGE FOLLOWS]

 13
 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

 

	
   

  	
  JANUS CAPITAL GROUP INC.

   

  
	
   

  	
  By:

  	
  /s/ Steven L.
  Scheid

  
	
   

  	
  Name: Steven L.
  Scheid

  
	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Gregory A.
  Frost

  
	
   

  	
  Name: Gregory A.
  Frost

  

 

 14Ex. 10.5

CHANGE IN CONTROL AGREEMENT

THIS AGREEMENT, dated as of August 1, 2005, is made by and between Janus
Capital Group Inc. (the “Company”) and Kelley A. Howes (the “Executive”).

WHEREAS, the Company considers it essential to the best interests of
the Company to foster the continued employment of key personnel; and

WHEREAS, the Company recognizes that the possibility of a Change in
Control always exists and that such possibility, and the uncertainty and
questions which it may raise among employees, may result in the departure or
distraction of key personnel to the detriment of the Company; and

WHEREAS, the Company has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of key
personnel, including the Executive, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from
the possibility of a Change in Control;

NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the Company and the Executive hereby agree as
follows:

1.             Defined Terms.  The definitions of capitalized terms used in
this Agreement are provided in the last Section hereof.

2.             Term of Agreement.  The Term of this Agreement shall commence on
the date hereof and shall continue in effect through December 31, 2006; provided,
however, that commencing on January 1, 2006 and each January 1
thereafter, the Term shall automatically be extended for one additional year
unless, not later than September 30 of the preceding year, the Company or the
Executive shall have given notice not to extend the Term; and further  provided,
however, that if a Change in Control shall have occurred during the
Term, the Term shall expire no earlier than twenty-four (24) months beyond the
month in which such Change in Control occurred. 
Notwithstanding anything herein to the contrary, the Term of the
Agreement shall immediately terminate if, prior to the Change in Control, the
Company (or such other Affiliate of the Parent that then employs the Executive)
ceases to be an Affiliate of the Parent.

3.             Company’s Covenants Summarized.  In order to induce the Executive to remain in
the employ of the Company and in consideration of the Executive’s covenants set
forth in Section 4 hereof, the Company agrees, under the conditions described
herein, to pay the Executive the Severance Payments and the other payments and
benefits described herein.  Except as
provided in Section 9.1 hereof, no Severance Payments shall be payable under
this Agreement unless there shall have been (or, under the terms of the second
sentence of Section 6.1 hereof, there shall be deemed to have been) a
termination of the Executive’s employment with the Company following a Change
in Control and during the Term.  This Agreement
shall not be construed as creating an express or implied contract of employment
and, except as otherwise agreed in 

writing between the Executive and the Company, the Executive shall not
have any right to be retained in the employ of the Company.

 

4.             The Executive’s Covenants.  The Executive agrees that, subject to the
terms and conditions of this Agreement, in the event of a Potential Change in
Control during the Term, the Executive will remain in the employ of the Company
until the earliest of (i) a date which is six (6) months from the date of such
Potential Change in Control, (ii) the date of a Change in Control, (iii) the
date of termination by the Executive of the Executive’s employment for Good
Reason or by reason of death, Disability or Retirement, or (iv) the termination
by the Company of the Executive’s employment for any reason.

5.             Compensation Other Than
Severance Payments.

5.1           Following
a Change in Control and during the Term, during any period that the Executive
fails to perform the Executive’s full-time duties with the Company as a
result of incapacity due to physical or mental illness, the Company shall pay
the Executive’s base salary to the Executive at the rate in effect at the
commencement of any such period, together with all compensation and benefits
payable to the Executive under the terms of any compensation or benefit plan,
program or arrangement maintained by the Company during such period (other than
any disability plan), until the Executive’s employment is terminated by the Company
for Disability.

5.2           If the
Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay the Executive’s base salary
and incentive compensation to the Executive through the Date of Termination as
in effect immediately prior to the Date of Termination or, if higher, as in
effect immediately prior to the Change in Control, together with all
compensation and benefits payable to the Executive through the Date of
Termination under the terms of the Company’s compensation and benefit plans,
programs or arrangements as in effect immediately prior to the Date of
Termination or, if more favorable to the Executive, as in effect immediately
prior to the Change in Control.

5.3           If the
Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay to the Executive the
Executive’s normal post-termination compensation and benefits as such payments
become due.  Such post-termination compensation
and benefits shall be determined under, and paid in accordance with, the
Company’s retirement, insurance and other compensation or benefit plans,
programs and arrangements as in effect immediately prior to the Date of
Termination or, if more favorable to the Executive, as in effect immediately
prior to the Change in Control.

6.             Severance Payments.

6.1           If the
Executive’s employment is terminated following a Change in Control and during
the Term, other than (A) by the Company for Cause, (B) by reason of death or
Disability, or (C) by the Executive without Good Reason, then, the Company
shall pay the Executive the amounts, and provide the Executive the benefits,
described in 

 2
 

this Section 6.1 (“Severance Payments”) and Section 6.2, in addition to
any payments and benefits to which the Executive is entitled under Section 5
hereof.  For purposes of this Agreement,
the Executive’s employment shall be deemed to have been terminated following a
Change in Control by the Company without Cause or by the Executive with Good
Reason, if (i) the Executive’s employment is terminated by the Company without
Cause prior to a Change in Control (whether or not a Change in Control ever
occurs) and such termination was at the request or direction of a Person who
has entered into an agreement with the Parent the consummation of which would
constitute a Change in Control, (ii) the Executive terminates his employment
for Good Reason prior to a Change in Control (whether or not a Change in
Control ever occurs) and the circumstance or event which constitutes Good
Reason occurs at the request or direction of such Person, or (iii) the
Executive’s employment is terminated by the Company without Cause or by the
Executive for Good Reason and such termination or the circumstance or event
which constitutes Good Reason is otherwise in connection with or in
anticipation of a Change in Control (whether or not a Change in Control ever
occurs).

 

(A)              In
lieu of any further salary payments to the Executive for periods subsequent to
the Date of Termination and in lieu of any severance benefit otherwise payable
to the Executive, the Company shall pay to the Executive a lump sum severance
payment, in cash, equal to two times the sum of (1) the Executive’s cash compensation in the calendar year prior to the
Date of Termination or, if higher, earned in the calendar year immediately
prior to the Change in Control and (2) the value of the Company’s
contributions made pursuant to the Janus Capital Group Inc. 401(k), Profit
Sharing and Employee Stock Ownership Plan (or any successor plan) on behalf of
the Executive in the four quarters immediately prior to the Date of Termination
or, if higher, in the four quarters immediately prior to the Change in
Control.  For purposes of calculating the
cash compensation payment under Section 6.1(A)(1), the Executive’s annual
target bonus in the calendar year immediately prior to the Date of Termination
or the Change in Control, as applicable, will be applied rather than the actual
bonus amount paid to the Executive.

(B)               For
the twenty-four (24) month period immediately following the Date of
Termination, the Company shall arrange to provide the Executive and his
dependents medical, dental, and vision insurance benefits substantially similar
to those provided to the Executive and his dependents immediately prior to the
Date of Termination or, if more favorable to the Executive, those provided to
the Executive and his dependents immediately prior to the Change in Control, at
no greater after tax cost to the Executive than the after tax cost to the
Executive immediately prior to such date. 
Benefits otherwise receivable by the Executive pursuant to this Section
6.1(B) shall be reduced to the extent benefits of the same type are received by
or made available to the Executive during the twenty-four (24) month period
following the Executive’s termination of employment (and any such benefits
received by or made available to the Executive shall be reported to the Company
by the Executive); provided, however, that the Company shall
reimburse the Executive for the excess, if any, of the after tax cost of such
benefits to the Executive over such cost immediately prior to the Date of
Termination or, if more favorable to the Executive, the 

 3
 

                                                Change
in Control.  The coverage provided pursuant
to this Section 6.1(B) shall run concurrently with and shall be offset against
any continuation coverage under Part 6 of Title I of Employee Retirement Income
Security Act of 1974, as amended.

 

(C)               The
Company will make available to the Executive three months of outplacement
service at no cost to the Executive through a provider of such services
selected by the Company.

6.2           (A)          Whether or not the Executive becomes
entitled to the Severance Payments, if any payment or benefit received or to be
received by the Executive (including any payment or benefit received in
connection with a Change in Control or the termination of the Executive’s
employment, whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement) (all such payments and benefits, excluding the Gross-Up
Payment, being hereinafter referred to as the “Total Payments”) will be subject
(in whole or part) to the Excise Tax, then, the Company shall pay to the
Executive an additional amount (the “Gross-Up Payment”) such that the net
amount retained by the Executive, after deduction of any Excise Tax on the
Total Payments and any federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, and after taking into account the phase
out of itemized deductions and personal exemptions attributable to the Gross-Up
Payment, shall be equal to the Total Payments. 
For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Executive’s residence on the
Date of Termination (or if there is no Date of Termination, then the date on
which the Gross-Up Payment is calculated for purposes of this Section 6.2), net
of the maximum reduction in federal income tax which could be obtained from
deduction of such state and local taxes.

(B)           For purposes of determining whether
any of the Total Payments will be subject to the Excise Tax and the amount of
such Excise Tax, (i) all of the Total Payments shall be treated as “parachute
payments” within the meaning of section 280G(b)(2) of the Code, unless in the
opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive
and selected by the accounting firm which was, immediately prior to the Change
in Control, the Company’s independent auditor (the “Auditor”), such other payments
or benefits (in whole or in part) do not constitute parachute payments,
including by reason of section 280G(b)(4)(A) of the Code, (ii) all “excess
parachute payments” within the meaning of section 280G(b)(l) of the Code shall
be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel,
such excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered, within the meaning of section
280G(b)(4)(B) of the Code, in excess of the Base Amount allocable to such
reasonable compensation, or are otherwise not subject to the Excise Tax, and
(iii) the value of any noncash benefits or any deferred payment or benefit
shall be determined by the Auditor in accordance with the principles of sections
280G(d)(3) and (4) of the Code.  Prior to
the payment date set forth in Section 6.3 hereof, the Company shall provide the
Executive with its calculation of the amounts referred to in this Section
6.2(B) and such supporting materials as are 

 4
 

                                                reasonably
necessary for the Executive to evaluate the Company’s calculations.  If the Executive disputes the Company’s
calculations (in whole or in part), the reasonable opinion of Tax Counsel with
respect to the matter in dispute shall prevail.

 

6.3           The
payments provided in subsection (A) of Section 6.1 hereof and in Section 6.2
hereof shall be made not later than the fifth day following the Date of
Termination (or if there is no Date of Termination, then the date on which the
Gross-Up Payment is calculated for purposes of Section 6.2 hereof); provided,
however, that if the amounts of such payments cannot be finally
determined on or before such day, the Company shall pay to the Executive on
such day an estimate, as determined in good faith by the Executive or, in the case
of payments under Section 6.2 hereof, in accordance with Section 6.2 hereof, of
the minimum amount of such payments to which the Executive is clearly entitled
and shall pay the remainder of such payments (together with interest on the
unpaid remainder (or on all such payments to the extent the Company fails to
make such payments when due) at 120% of the rate provided in section
1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined but
in no event later than the thirtieth (30th) day after the Date of
Termination.  At the time that payments
are made under this Agreement, the Company shall provide the Executive with a
written statement setting forth the manner in which such payments were calculated
and the basis for such calculations including, without limitation, any opinions
or other advice the Company has received from Tax Counsel, the Auditor or other
advisors or consultants (and any such opinions or advice which are in writing
shall be attached to the statement).

6.4           In the
event the Executive incurs legal fees and expenses disputing in good faith any
issue hereunder relating to the termination of the Executive’s employment,
seeking in good faith to obtain or enforce any benefit or right provided by
this Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of section 4999 of the Code to any payment or
benefit provided hereunder, the Company shall reimburse the Executive for such
legal fees and expenses if the Executive prevails, in material part, in such
dispute.

7.             Termination Procedures and
Compensation During Dispute.

7.1           Notice
of Termination.  After a Change in
Control and during the Term, any purported termination of the Executive’s
employment (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other party hereto in
accordance with Section 10 hereof.  For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated.  Further, a
Notice of Termination for Cause is required to include a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters (3/4) of
the entire membership of the Board at a meeting of the Board which was called
and held for the purpose of considering such termination (after reasonable
notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board) finding that, in the good
faith opinion of the Board, the Executive was guilty of conduct set forth

 5
 

in clause (i) or (ii) of the definition of Cause herein, and specifying
the particulars thereof in detail.

 

7.2           Date of
Termination.  “Date of Termination,”
with respect to any purported termination of the Executive’s employment after a
Change in Control and during the Term, shall mean (i) if the Executive’s
employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to
the full-time performance of the Executive’s duties during such thirty (30) day
period), and (ii) if the Executive’s employment is terminated for any other
reason, the date specified in the Notice of Termination (which, in the case of
a termination by the Company, shall not be less than thirty (30) days (except
in the case of a termination for Cause) and, in the case of a termination by
the Executive, shall not be less than fifteen (15) days nor more than sixty
(60) days, respectively, from the date such Notice of Termination is given).

7.3           Dispute
Concerning Termination.  If within
fifteen (15) days after any Notice of Termination is given, or, if later, prior
to the Date of Termination (as determined without regard to this Section 7.3),
the party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, the Date of Termination shall be
extended until the earlier of (i) the date on which the Term ends or (ii) the
date on which the dispute is finally resolved, either by mutual written
agreement of the parties or by a final judgment, order or decree of a court of
competent jurisdiction (which is not appealable or with respect to which the
time for appeal therefrom has expired and no appeal has been perfected); provided,
however, that the Date of Termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in good faith and
the Executive pursues the resolution of such dispute with reasonable diligence.

7.4           Compensation
During Dispute.  If a purported
termination occurs following a Change in Control and during the Term and the
Date of Termination is extended in accordance with Section 7.3 hereof, the
Company shall continue to pay the Executive the full compensation in effect
when the notice giving rise to the dispute was given (including, but not
limited to, salary) and continue the Executive as a participant in all
compensation, benefit and insurance plans in which the Executive was
participating when the notice giving rise to the dispute was given, until the
Date of Termination, as determined in accordance with Section 7.3 hereof.  Amounts paid under this Section 7.4 are in
addition to all other amounts due under this Agreement (other than those due
under Section 5.2 hereof) and shall not be offset against or reduce any other
amounts due under this Agreement.

8.             No Mitigation.  The Company agrees that, if the Executive’s
employment with the Company terminates during the Term, the Executive is not
required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive by the Company pursuant to Section 6 hereof or
Section 7.4 hereof.  Further, except as
specifically provided in Section 6.1(B) hereof, no payment or benefit provided
for in this Agreement shall be reduced by any compensation earned by the
Executive as the result of employment by another employer, by retirement
benefits, by offset against any amount claimed to be owed by the Executive to
the Company, or otherwise.

 6
 

9.             Successors; Binding Agreement.

9.1           In
addition to any obligations imposed by law upon any successor to the Company,
and subject to the last sentence of Section 2, the Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. 
Failure of the Company to obtain such assumption and agreement prior to
the effectiveness of any such succession shall be a breach of this Agreement
and shall entitle the Executive to compensation from the Company in the same
amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason
after a Change in Control, except that, for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be deemed
the Date of Termination.

9.2           This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
If the Executive shall die while any amount would still be payable to
the Executive hereunder (other than amounts which, by their terms, terminate
upon the death of the Executive) if the Executive had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the executors, personal representatives or
administrators of the Executive’s estate.

10.           Notices.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States regis­tered mail, return receipt requested, postage prepaid, addressed,
if to the Executive, to the address on record at the Company and, if to the
Company, to the address set forth below, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except
that notice of change of address shall be effective only upon actual receipt:

	
  

  	
  To the Company:

  
	
   

  	
  Janus Capital
  Group Inc.

  
	
   

  	
  151 Detroit
  Street

  
	
   

  	
  Denver, Colorado
  80206

  
	
   

  	
  Attn.: General
  Counsel

  

 

11.           Miscellaneous.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and the Company, provided,
however, that the Company may amend the Agreement in a manner reasonably
intended to avoid the acceleration of tax and the possible imposition of
penalties under Section 409A of the Code. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or of any lack of compliance with, any condition or provision
of this 

 7
 

Agreement to be performed by such other party shall be deemed a waiver
of similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time.  This Agreement
supersedes any other agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof which have been made by
either party; provided, however, that this Agreement shall
supersede any agreement setting forth the terms and conditions of the Executive’s
employment with the Company only in the event that the Executive’s employment
with the Company is terminated on or following a Change in Control, by the
Company other than for Cause or by the Executive for Good Reason or prior to a
Change in Control pursuant to the second sentence of Section 6.1 of this
Agreement.   The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Delaware. 
All references to sections of the Exchange Act or the Code shall be
deemed also to refer to any successor provisions to such sections.  Any payments provided for hereunder shall be
paid net of any applicable withholding required under federal, state or local
law and any additional withholding to which the Executive has agreed.  The obligations of the Company and the
Executive under this Agreement which by their nature may require either partial
or total performance after the expiration of the Term (including, without
limitation, those under Sections 6 and 7 hereof) shall survive such expiration.

 

12.           Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

13.           Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

14.           Settlement of Disputes.  All claims by the Executive for benefits
under this Agreement shall be directed to and determined by the Board and shall
be in writing.  Any denial by the Board
of a claim for benefits under this Agreement shall be delivered to the
Executive in writing and shall set forth the specific reasons for the denial
and the specific provisions of this Agreement relied upon.  The Board shall afford a reasonable
opportunity to the Executive for a review of the decision denying a claim and
shall further allow the Executive to appeal to the Board a decision of the
Board within sixty (60) days after notification by the Board that the Executive’s
claim has been denied.  Notwithstanding
the above, in the event of any dispute, any decision by the Board hereunder
shall be subject to a de novo review by the court.

15.           Definitions.  For purposes of this Agreement, the following
terms shall have the meanings indicated below:

(A)          “Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

(B)           “Auditor”
shall have the meaning set forth in Section 6.2 hereof.

(C)           “Base
Amount” shall have the meaning set forth in section 280G(b)(3) of the Code.

 8
 

(D)          “Board”
shall mean the Board of Directors of the Parent.

(E)           “Cause”
for termination by the Company of the Executive’s employment shall mean (i) the
willful and continued failure by the Executive to substantially perform the
Executive’s duties with the Company (other than any such failure resulting from
the Executive’s incapacity due to physical or mental illness or any such actual
or anticipated failure after the issuance of a Notice of Termination for Good
Reason by the Executive pursuant to Section 7.1 hereof) that has not been cured
within 30 days after a written demand for substantial performance is delivered
to the Executive by the Board, which demand specifically identifies the manner
in which the Board believes that the Executive has not substantially performed
the Executive’s duties;  (ii) the willful
engaging by the Executive in conduct which is demonstrably and materially
injurious to the Company, monetarily or otherwise; or (iii) a willful
or reckless violation by the Executive of a material legal or regulatory
requirement that is materially and demonstrably injurious to the Company.  For purposes of this definition, no act, or
failure to act, on the Executive’s part shall be deemed “willful” unless done,
or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s act, or failure to act, was in the best
interest of the Company.  Any act, or
failure to act, based upon express written authority by the Board, Chief
Executive Officer and/or Chief Investment Officer with respect to such act or
omission or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company.

(F)           A “Change
in Control” shall be deemed to have occurred if the event set forth in any one
of the following paragraphs shall have occurred:

(1)           An acquisition by any Person of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (A) the then outstanding shares of
common stock of the Parent (the “Outstanding Parent Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Parent
entitled to vote generally in the election of directors (the “Outstanding
Parent Voting Securities”); excluding, however, the following:  (i) any acquisition directly from the Parent,
other than an acquisition by virtue of the exercise of a conversion privilege
unless the security being so converted was itself acquired directly from the
Parent, (ii) any acquisition by the Parent, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Parent
or any entity controlled by the Parent, or (iv) any acquisition pursuant to a
transaction which complies with clauses (A), (B) and (C) of subsection (3) of
this definition; or

(2)           A change in the composition of the
Board such that the individuals who, as of the effective date of the this
Agreement, constitute the Board (such Board shall be hereinafter referred to as
the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, for purposes of this definition,
that any individual who 

 9
 

becomes a member of the
Board subsequent to the effective date hereof, whose election, or nomination
for election by the Parent’s shareholders, was approved by a vote of at least a
majority of those individuals who are members of the Board and who were also
members of the Incumbent Board (or deemed to be such pursuant to this proviso)
shall be considered as though such individual were a member of the Incumbent
Board; but, provided  further, that any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board shall not be so considered as a member of the Incumbent
Board; or

(3)           Consummation of a reorganization,
merger or consolidation or sale or other disposition of all or substantially
all of the assets of the Parent or the acquisition of the assets or stock of another
entity (“Business Combination”); excluding, however, such a Business
Combination pursuant to which (A) all or substantially all of the individuals
and entities who are the beneficial owners, respectively, of the Outstanding
Parent Common Stock and Outstanding Parent Voting Securities immediately prior
to such Business Combination will beneficially own, directly or indirectly,
more than 50% of, respectively, the outstanding shares of common stock, and the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Parent
or all or substantially all the Parent’s assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Parent
Common Stock and Outstanding Parent Voting Securities, as the case may be, (B)
no Person (other than the Parent or any employee benefit plan (or related
trust) of the Parent or the corporation resulting from such Business
Combination) will beneficially own, directly or indirectly, 20% or more of,
respectively, the outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in
the election of directors except to the extent that such ownership existed
prior to the Business Combination; and (C) individuals who were members of the
Incumbent Board will constitute at least a majority of the members of the board
of directors of the corporation resulting form such Business Combination; or

(4)           The approval by the stockholders of
the Parent of a complete liquidation or dissolution of the Parent.

(G)           “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

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(H)          “Company” shall
mean Janus Capital Group Inc., collectively with its Affiliates, and any
successor to its business and/or assets which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

(I)            “Date of
Termination” shall have the meaning set forth in Section 7.2 hereof.

(J)            “Disability”
shall be deemed the reason for the termination by the Company of the Executive’s
employment, if, as a result of the Executive’s incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time
performance of the Executive’s duties with the Company for a period of six (6)
consecutive months, the Company shall have given the Executive a Notice of
Termination for Disability, and, within thirty (30) days after such Notice of
Termination is given, the Executive shall not have returned to the full-time
performance of the Executive’s duties. 
For purposes of this Agreement, “Disability” shall be as defined under,
and the Executive must comply with, the then-current long-term disability
policy of the Company.

(K)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

(L)           “Excise
Tax” shall mean any excise tax imposed under section 4999 of the Code.

(M)         “Executive” shall mean the individual
named in the first paragraph of this Agreement.

(N)          “Good
Reason” for termination by the Executive of the Executive’s employment shall
mean the occurrence (without the Executive’s express written consent which
specifically references this Agreement) after any Change in Control, or prior
to a Change in Control under the circumstances described in clauses (ii) and
(iii) of the second sentence of Section 6.1 hereof (treating all references in
paragraphs (1) through (4) below to a “Change in Control” as references to a “Potential
Change in Control”), of any one of the following acts by the Company, or
failures by the Company to act, unless, in the case of any act or failure to
act described in paragraph (1), or (4) below, such act or failure to act is
corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

(1)           a substantial adverse alteration in
the nature or status of the Executive’s responsibilities from those in effect
immediately prior to the Change in Control other than any such alteration
primarily attributable to the fact that the Parent may no longer be a public
company or to other changes in the identity, nature or structure of the Parent;
and provided, that a change in the Executive’s title or reporting relationships
shall not of itself constitute Good Reason (unless such change results in a
substantial adverse alteration as described above);

 11
 

(2)           a material reduction in the Executive’s
aggregate target compensation as in effect immediately prior to the Change in
Control or a material adverse change in the methodology used to determine
incentive compensation; provided, however, that changes to
individual components of Executive’s compensation comprising aggregate target
compensation shall not constitute Good Reason;

(3)           the relocation of the Executive’s
principal place of employment to a location more than 40 miles from the
Executive’s principal place of employment immediately prior to the Change in
Control or the Company’s requiring the Executive to be based anywhere other
than such principal place of employment (or permitted relocation thereof)
except for required travel on the Company’s business to an extent substantially
consistent with the Executive’s present business travel obligations;

(4)           any purported termination of the
Executive’s employment which is not effected pursuant to a Notice of
Termination satisfying the requirements of Section 7.1 hereof; for purposes of
this Agreement, no such purported termination shall be effective.  The Executive’s right to terminate the
Executive’s employment for Good Reason shall not be affected by the Executive’s
incapacity due to physical or mental illness.

The Executive’s
continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder.

(O)          “Gross Up
Payment” shall have the meaning set forth in Section 6.2 hereof.

(P)           “Notice of
Termination” shall have the meaning set forth in Section 7.1 hereof.

(Q)          “Parent”
shall mean Janus Capital Group Inc.

(R)           “Person”
shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term
shall not include (i) the Company (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or
(iv) a corporation owned, directly or indirectly, by the shareholders of the
Company in substantially the same proportions as their ownership of stock of
the Company.

(S)           “Potential
Change in Control” shall be deemed to have occurred if the event set forth in
any one of the following paragraphs shall have occurred:

(1)           the Parent enters into an agreement,
the consummation of which would result in the occurrence of a Change in
Control;

 12
 

(2)           the Parent or any Person publicly
announces an intention to take or to consider taking actions which, if
consummated, would constitute a Change in Control;

(3)           any Person becomes the beneficial
owner, directly or indirectly, of securities of the Parent representing 15% or
more of either the then outstanding shares of common stock of the Parent or the
combined voting power of the Parent’s then outstanding securities (not including
in the securities beneficially owned by such Person any securities acquired
directly from the Parent or its Affiliates); or

(4)           the Board adopts a resolution to the
effect that, for purposes of this Agreement, a Potential Change in Control has
occurred.

(T)           “Retirement”
shall be deemed the reason for the termination by the Executive of the
Executive’s employment if such employment is terminated in accordance with the
Company’s retirement policy, including early retirement, generally applicable
to its salaried employees.

(U)          “Severance
Payments” shall have the meaning set forth in Section 6.1 hereof.

(V)           “Tax
Counsel” shall have the meaning set forth in Section 6.2 hereof.

(W)         “Term” shall
mean the period of time described in Section 2 hereof (including any extension,
continuation or termination described therein).

(X)          “Total
Payments” shall mean those payments so described in Section 6.2 hereof.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

	
  

   

  	
   

  JANUS CAPITAL
  GROUP INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John H.
  Bluher

  	
   

  
	
   

  	
  Name: John H.
  Bluher

  	
   

  
	
   

  	
  Title: Executive
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Kelley A.
  Howes

  	
   

  
	
   

  	
  Name: Kelley A.
  Howes

  	
   

  
					

 

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