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                                    FIVE-YEAR

                             COMPETITIVE ADVANCE AND

                       REVOLVING CREDIT FACILITY AGREEMENT

                          Dated as of December 7, 2000

                                      among

                            STILWELL FINANCIAL INC.,

                           JANUS CAPITAL CORPORATION,

                            THE LENDERS NAMED HEREIN,

              WELLS FARGO BANK WEST, N.A., as Documentation Agent,

                 THE CHASE MANHATTAN BANK, as Syndication Agent,

                                       and

                                 CITIBANK, N.A.,
                  as Administrative Agent and Swingline Lender,

                      ------------------------------------

           CHASE SECURITIES, INC., as Co-Arranger and Co-Book Manager

     SALOMON SMITH BARNEY INC., as Advisor, Co-Arranger and Co-Book Manager

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<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

                                                                                                      Page
<S>      <C>            <C>                                                                           <C>
ARTICLE I.  DEFINITIONS..................................................................................1

         SECTION 1.01.  Defined Terms....................................................................1
         SECTION 1.02.  Terms Generally.................................................................12

ARTICLE II.  THE CREDITS................................................................................12

         SECTION 2.01.  Commitments.....................................................................12
         SECTION 2.02.  Loans...........................................................................12
         SECTION 2.03.  Competitive Bid Procedure.......................................................13
         SECTION 2.04.  Standby Borrowing Procedure.....................................................15
         SECTION 2.05.  Interest Elections..............................................................15
         SECTION 2.06.  Fees............................................................................16
         SECTION 2.07.  Repayment of Loans; Evidence of Debt............................................16
         SECTION 2.08.  Interest on Loans...............................................................17
         SECTION 2.09.  Default Interest................................................................18
         SECTION 2.10.  Alternate Rate of Interest......................................................18
         SECTION 2.11.  Termination and Reduction of Commitments........................................18
         SECTION 2.12.  Prepayment......................................................................18
         SECTION 2.13.  Reserve Requirements; Change in Circumstances...................................19
         SECTION 2.14.  Change in Legality..............................................................20
         SECTION 2.15.  Indemnity.......................................................................20
         SECTION 2.16.  Pro Rata Treatment..............................................................21
         SECTION 2.17.  Sharing of Setoffs..............................................................21
         SECTION 2.18.  Payments........................................................................21
         SECTION 2.19.  Taxes...........................................................................22
         SECTION 2.20.  Termination or Assignment of Commitments Under Certain Circumstances............23
         SECTION 2.21.  Lending Offices and Lender Certificates; Survival of Indemnity..................23
         SECTION 2.22.  Swingline Loans.................................................................24
         SECTION 2.23.  Increase in Total Commitment....................................................25

ARTICLE III.  REPRESENTATIONS AND WARRANTIES............................................................26

         SECTION 3.01.  Corporate Existence and Standing................................................26
         SECTION 3.02.  Authorization and Validity......................................................26
         SECTION 3.03.  No Conflict; Governmental Consent...............................................26
         SECTION 3.04.  Compliance with Laws; Environmental and Safety Matters..........................26
         SECTION 3.05.  Financial Statements............................................................27
         SECTION 3.06.  No Material Adverse Change......................................................27
         SECTION 3.07.  Subsidiaries....................................................................27
         SECTION 3.08.  Litigation; Contingent Obligations..............................................27
         SECTION 3.09.  Material Agreements.............................................................27
         SECTION 3.10.  Regulation U....................................................................27
         SECTION 3.11.  Investment Company Act; Public Utility Holding Company Act......................28
         SECTION 3.12.  Use of Proceeds.................................................................28
         SECTION 3.13.  Taxes...........................................................................28
         SECTION 3.14.  Accuracy of Information.........................................................28
         SECTION 3.15.  No Undisclosed Dividend Restrictions............................................28

ARTICLE IV.  CONDITIONS OF LENDING......................................................................28

         SECTION 4.01.  All Borrowings, Extension of Maturity Date and Increase in
                  Total Commitment .....................................................................28
         SECTION 4.02.  Conditions Precedent to Closing.................................................29

<PAGE>

ARTICLE V.  AFFIRMATIVE COVENANTS.......................................................................29

         SECTION 5.01.  Conduct of Business; Maintenance of Ownership of Subsidiaries and
                  Maintenance of Properties.............................................................30
         SECTION 5.02.  Insurance.......................................................................30
         SECTION 5.03.  Compliance with Laws and Payment of Material Obligations and Taxes..............30
         SECTION 5.04.  Financial Statements, Reports, etc..............................................30
         SECTION 5.05.  Other Notices...................................................................31
         SECTION 5.06.  Books and Records; Access to Properties and Inspections.........................31
         SECTION 5.07.  Use of Proceeds.................................................................31

ARTICLE VI.  NEGATIVE COVENANTS.........................................................................31

         SECTION 6.01.  Indebtedness....................................................................32
         SECTION 6.02.  Liens...........................................................................32
         SECTION 6.03.  Sale and Lease-Back Transactions................................................33
         SECTION 6.04.  Mergers, Consolidations and Transfers of Assets.................................34
         SECTION 6.05.  Transactions with Affiliates....................................................34
         SECTION 6.06.  Certain Other Agreements........................................................34
         SECTION 6.07.  Certain Financial Covenants.....................................................35
         SECTION 6.08.  Margin Stock....................................................................35

ARTICLE VII.  EVENTS OF DEFAULT.........................................................................35

ARTICLE VIII.  GUARANTEE................................................................................37

ARTICLE IX.  THE AGENT..................................................................................38

ARTICLE X.  MISCELLANEOUS...............................................................................39

         SECTION 10.01.  Notices........................................................................39
         SECTION 10.02.  Survival of Agreement..........................................................40
         SECTION 10.03.  Binding Effect.................................................................40
         SECTION 10.04.  Successors and Assigns.........................................................40
         SECTION 10.05.  Expenses; Indemnity............................................................42
         SECTION 10.06.  Right of Setoff................................................................43
         SECTION 10.07.  Applicable Law.................................................................43
         SECTION 10.08.  Waivers; Amendment.............................................................43
         SECTION 10.09.  Interest Rate Limitation.......................................................44
         SECTION 10.10.  Entire Agreement...............................................................44
         SECTION 10.11.  Waiver of Jury Trial...........................................................44
         SECTION 10.12.  Severability...................................................................44
         SECTION 10.13.  Counterparts...................................................................44
         SECTION 10.14.  Headings.......................................................................44
         SECTION 10.15.  Jurisdiction; Consent to Service of Process....................................44
         SECTION 10.16.  Confidentiality................................................................45

Schedule 2.01            Commitments
Schedule 3.07            Subsidiaries
Schedule 3.08            Litigation
Schedule 3.15            Dividend Restrictions
Schedule 6.01            Indebtedness
Schedule 6.02            Liens

Exhibit A-1              Form of Competitive Bid Request
Exhibit A-2              Form of Notice of Competitive Bid Request
Exhibit A-3              Form of Competitive Bid
Exhibit A-4              Form of Competitive Bid Accept/Reject Letter
Exhibit A-5              Form of Standby Borrowing Request

<PAGE>

Exhibit B                Form of Assignment and Acceptance
Exhibit C-1              Form of Opinion of Sonnenschein Nath & Rosenthal
Exhibit C-2              Form of Opinion of Hogan & Hartson LLP
Exhibit D                Form of Compliance Certificate
Exhibit E                Form of Confidentiality Agreement
</TABLE>

<PAGE>

                         FIVE-YEAR  COMPETITIVE  ADVANCE  AND  REVOLVING  CREDIT
                    FACILITY  AGREEMENT  dated as of  December  7,  2000,  among
                    STILWELL FINANCIAL INC., a Delaware corporation  ("Stilwell"
                    or a  "Borrower"),  JANUS  CAPITAL  CORPORATION,  a Colorado
                    corporation  ("Janus" or a  "Borrower",  and  together  with
                    Stilwell,  the  Borrowers"),  the lenders  party hereto (the
                    "Lenders"),  CITIBANK, N.A., as Administrative Agent for the
                    Lenders (in such  capacity,  the  "Agent")  and as Swingline
                    Lender,  WELLS FARGO BANK WEST, N.A., as Documentation Agent
                    for  the  Lenders,   and  THE  CHASE   MANHATTAN   BANK,  as
                    Syndication Agent for the Lenders.

                  The Borrowers  have  requested the Lenders to extend credit in
order to enable them to borrow on a standby  revolving credit basis on and after
the date hereof and at any time and from time to time prior to the Maturity Date
(such term and each other capitalized term used but not otherwise defined herein
having the meaning assigned to it in Article I) a principal amount not in excess
of $300,000,000 at any time outstanding; of which Stilwell shall be permitted to
borrow a principal  amount not in excess of $200,000,000 at any time outstanding
and Janus  shall be  permitted  to borrow a  principal  amount  not in excess of
$100,000,000 at any time outstanding; provided that Janus' obligations hereunder
are  guaranteed by Stilwell.  The Borrowers  have also  requested the Lenders to
provide a  procedure  pursuant  to which the Lenders may be invited to bid on an
uncommitted basis on short-term borrowings by each of the Borrowers.

                  The  proceeds  of  borrowings  hereunder  are to be  used  for
working capital and general corporate purposes  including,  without  limitation,
(a) to repurchase outstanding shares of capital stock of either of the Borrowers
or their subsidiaries and (b) to finance acquisitions by the Borrowers.

                  The Lenders are willing to extend such credit to the Borrowers
on the terms and subject to the conditions  herein set forth.  Accordingly,  the
Borrowers, the Lenders and the Agent agree as follows:

ARTICLE I.  DEFINITIONS

                  SECTION 1.01.  Defined Terms.  As used in this Agreement,  the
following terms shall have the meanings specified below:

                  "ABR Borrowing" shall mean a Borrowing comprised of ABR Loans.

                  "ABR Loan" shall mean any Standby Loan  bearing  interest at a
rate  determined by reference to the Alternate Base Rate in accordance  with the
provisions of Article II.

                  "Adjusted   LIBO  Rate"  shall  mean,   with  respect  to  any
Eurodollar  Borrowing  for any  Interest  Period,  an  interest  rate per  annum
(rounded upwards, if necessary,  to the next 1/16 of 1%) equal to the product of
(a) the LIBO Rate in effect for such Interest Period and (b) Statutory Reserves.

                  "Administrative  Questionnaire"  shall mean an  Administrative
Questionnaire supplied by the Agent in the form of Exhibit F.

                  "Affiliate"  shall mean, when used with respect to a specified
person,  another  person  that  directly,  or  indirectly  through  one or  more
intermediaries, Controls or is Controlled by or is under common Control with the
person  specified and in any case shall  include,  when used with respect to the
Borrower  or any  Subsidiary,  any joint  venture in which the  Borrower or such
Subsidiary holds an equity interest.

                  "Agent's Fees" shall have the meaning assigned to such term in
Section 2.06(b).

                  "Alternate  Base  Rate"  shall  mean,  for any day, a rate per
annum  (rounded  upwards,  if  necessary,  to the next  1/16 of 1%) equal to the
greatest  of (a) the Prime  Rate in effect on such day,  (b) the Base CD Rate in
effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. For purposes  hereof,  "Prime Rate" shall mean the rate
of interest per annum  publicly  announced from time to time by the Agent as its
prime rate in effect at its principal office in New York City; the Prime Rate is
not  intended  to be the  lowest  rate  of  interest  charged  by the  Agent  in
connection with  extensions of credit to debtors;  each change in the Prime Rate
shall be effective on the date such

<PAGE>

change is publicly announced as effective.  "Base CD Rate" shall mean the sum of
(a) the  product of (i) the  Three-Month  Secondary  CD Rate and (ii)  Statutory
Reserves  and (b) the  Assessment  Rate.  "Three-Month  Secondary CD Rate" shall
mean, for any day, the secondary  market rate for  three-month  certificates  of
deposit  reported as being in effect on such day (or, if such day shall not be a
Business Day, the next  preceding  Business Day) by the Board through the public
information  telephone line of the Federal  Reserve Bank of New York (which rate
will, under the current  practices of the Board, be published in Federal Reserve
Statistical  Release  H.15(519) during the week following such day), or, if such
rate shall not be so reported on such day or such next  preceding  Business Day,
the average of the secondary market  quotations for three-month  certificates of
deposit of major money center banks in New York City  received at  approximately
10:00  a.m.,  New York City  time,  on such day (or,  if such day shall not be a
Business  Day, on the next  preceding  Business Day) by the Agent from three New
York City  negotiable  certificate  of deposit  dealers of  recognized  standing
selected by it.  "Federal  Funds  Effective  Rate" shall mean,  for any day, the
weighted  average of the rates on  overnight  Federal  funds  transactions  with
members of the Federal  Reserve  System  arranged by Federal funds  brokers,  as
published on the next succeeding Business Day by the Federal Reserve Bank of New
York,  or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for the day of such  transactions  received by the
Agent from three Federal funds brokers of recognized standing selected by it. If
for any reason the Agent shall have  determined  (which  determination  shall be
conclusive  absent  manifest  error) that it is unable to ascertain  the Base CD
Rate or the Federal Funds  Effective Rate or both for any reason,  including the
inability or failure of the Agent to obtain sufficient  quotations in accordance
with the terms  thereof,  the Alternate  Base Rate shall be  determined  without
regard to clause (b) or (c), or both, of the first sentence of this  definition,
as appropriate,  until the circumstances giving rise to such inability no longer
exist.  Any change in the Alternate Base Rate due to a change in the Prime Rate,
the  Three-Month  Secondary CD Rate or the Federal Funds Effective Rate shall be
effective  on the  effective  date  of  such  change  in  the  Prime  Rate,  the
Three-Month Secondary CD Rate or the Federal Funds Effective Rate, respectively.

                  "Applicable  Percentage"  shall mean on any date, with respect
to the Loans comprising any Eurodollar Standby  Borrowing,  the Facility Fee, or
the Utilization Fee, as the case may be, the applicable  percentage set forth in
the  table  below  based  upon  the  Leverage   Ratio  as  of  the  most  recent
determination  date;  provided  that until the delivery of financial  statements
under Section  5.04(a) as of the end of and for the first fiscal year commencing
after the Effective Date, the "Applicable  Percentage" for all purposes shall be
the applicable rate per annum set forth below in Level 1:

         Eurodollar Standby Borrowings, Facility Fee and Utilization Fee
         ---------------------------------------------------------------
                                        Eurodollar   Facility   Utilization
       Leverage Ratio:                   Spread         Fee        Fee
       ---------------
       Level 1
       -------
       Less than or equal to 1.00 to     0.300%       0.150%         0.175%
       1.00

       Level 2
       -------
       Greater than 1.00 to 1.00 and
       less than or equal to 1.50 to
       1.00                              0.375%       0.175%         0.250%

       Level 3
       -------
       Greater than 1.50 to 1.00         0.500%       0.250%         0.375%

                  For purposes of the foregoing, (i) the Leverage Ratio shall be
determined as of the end of each fiscal quarter of Stilwell's  fiscal year based
upon Stilwell's  consolidated financial statements delivered pursuant to Section
5.04(a) or (b) and (ii) each change in the Applicable  Percentage resulting from
a change in the Leverage Ratio shall be effective  during the period  commencing
on and  including  the  date of  delivery  to the  Agent  of  such  consolidated
financial  statements  indicating such change and ending on the date immediately
preceding the effective date of the next such change; provided that the Leverage
Ratio  shall be  deemed  to be at Level 3 at the  option  of the Agent or at the
request of the Required  Lenders if Stilwell  fails to deliver the  consolidated
financial  statements required to be delivered by it pursuant to Section 5.04(a)
or (b),  during the period from the expiration of the time for delivery  thereof
until such consolidated financial statements are delivered.

<PAGE>

                  "Assessment   Rate"  shall  mean,  for  any  day,  the  annual
assessment  rate in effect on such day that is  payable  by a member of the Bank
Insurance Fund classified as "well-capitalized"  and within supervisory subgroup
"B" (or a comparable  successor  risk  classification)  within the meaning of 12
C.F.R.  Part 327 (or any successor  provision) to the Federal Deposit  Insurance
Corporation  for insurance by such  Corporation of time deposits made in dollars
at the  offices of such  member in the  United  States;  provided  that if, as a
result of any change in any law, rule or regulation, it is no longer possible to
determine the Assessment  Rate as aforesaid,  then the Assessment  Rate shall be
such  annual  rate  as  shall  be  reasonably  determined  by  the  Agent  to be
representative of the cost of such insurance to the Lenders.

                  "Assignment  and  Acceptance"  shall  mean an  assignment  and
acceptance entered into by a Lender and an assignee,  and accepted by the Agent,
in the form of Exhibit B.

                  "Attributable  Debt" shall mean, in connection with a Sale and
Leaseback Transaction,  the present value (discounted in accordance with GAAP at
the debt rate implied in the lease) of the  obligations of the lessee for rental
payments during the term of the Lease.

                  "Average Assets Under Management" shall mean, on any date, the
average of assets under management by Stilwell and its Consolidated Subsidiaries
for the period of three  consecutive  months ending on such date, the average of
which is computed by  accumulating  the daily total for assets under  management
and  dividing  such  result by the total  number of days during such three month
period,  which  computation  shall  be  made in a  manner  consistent  with  the
computations  reported in Stilwell's  Current  Report on Form 8-K filed with the
Securities and Exchange Commission each month. For any date that is not the last
day of a month,  the  average  will be  computed  based upon the last day of the
month most  recently  ended prior to such date and in the same manner  described
herein.

                  "B Share Fees" shall mean (a) the  contingent  deferred  sales
charges  payable  by an  investor  in a load  fund  offered  by  Janus  upon any
redemption  by such  investor  prior to a  certain  number of years  after  such
investor's  investment in such fund and (b) the distribution  fees payable by an
investor in a load fund offered by Janus,  in each case payable at the times and
in the amounts  described in the Janus World Funds plc prospectus  dated October
23, 2000, the Janus Universal Funds prospectus dated March 8, 2000, in each case
as amended  from time to time,  or the  prospectus  for any other  substantially
similar fund.

                  "B Share Purchaser" shall mean either a Finance  Subsidiary or
a financial  institution or trust that purchases B Share Fees in connection with
a Permitted B Share True Sale Transaction.

                  "Berger" shall mean Stilwell  Management, Inc., formerly known
as Berger Associates, Inc., a Delaware corporation.

                  "Board"  shall  mean  the  Board  of  Governors of the Federal
Reserve System of the United States.

                  "Borrower" or "Borrowers" shall mean Stilwell and/or Janus, as
applicable.

                  "Borrowing"  shall mean (a) a group of Loans of a single  Type
made by the Lenders (or, in the case of a Competitive  Borrowing,  by the Lender
or Lenders whose  Competitive Bids have been accepted  pursuant to Section 2.03)
on a single date and as to which a single  Interest Period is in effect or (b) a
Swingline Loan.

                  "Business Day" shall mean any day (other than a day which is a
Saturday,  Sunday or legal  holiday in the State of New York) on which banks are
open for  business  in New York  City;  provided,  however,  that,  when used in
connection  with a Eurodollar  Loan,  the term "Business Day" shall also exclude
any day on which  banks  are not open for  dealings  in dollar  deposits  in the
London interbank market.

                  "Capitalized  Lease  Obligations" of any person shall mean the
obligations  of such  person  under any lease  that  would be  capitalized  on a
balance sheet of such person prepared in accordance with GAAP, and the amount of
such  obligations  at any time shall be the  capitalized  amount thereof at such
time determined in accordance with GAAP.

                  "CERCLA" shall mean the Comprehensive  Environmental Response,
Compensation  and Liability Act of 1980, as amended by the Superfund  Amendments
and Reauthorization Act of 1986.

<PAGE>

                  A "Change in Control"  shall be deemed to have occurred if (i)
at any time,  less than 75% of the members of the board of directors of Stilwell
shall be (A) individuals who are members of such board on the date hereof or (B)
individuals   whose   election,   or  nomination   for  election  by  Stilwell's
stockholders, was approved by a vote of at least 75% of the members of the board
then in  office  who are  individuals  described  in this  clause  (B) or in the
preceding  clause (A) or (ii) at any time, any person or any two or more persons
acting as a partnership, limited partnership,  syndicate, or other group for the
purpose of  acquiring,  holding or disposing of  securities  of Stilwell,  shall
become,  according to public  announcement or filing, the "beneficial owner" (as
defined in Rule 13d-3  issued  under the  Securities  Exchange  Act of 1934,  as
amended),  directly or indirectly, of securities of Stilwell representing 30% or
more  (calculated  in  accordance  with such Rule 13d-3) of the combined  voting
power of Stilwell's then outstanding voting securities.

                  "Citibank" shall mean Citibank, N.A.

                  "Code"  shall mean the Internal  Revenue Code of 1986,  as the
same may be amended from time to time.

                  "Commitment"  shall mean,  with  respect to each  Lender,  the
commitment of such Lender to make Standby Loans and to acquire participations in
Swingline  Loans  hereunder,  expressed  as an amount  representing  the maximum
aggregate amount of such Lender's Revolving Credit Exposure  hereunder,  as such
commitment  may be (a) reduced from time to time pursuant to Section  2.11,  (b)
increased  pursuant to Section  2.23 and (c) reduced or  increased  from time to
time pursuant to assignments by or to such Lender pursuant to Section 10.04. The
initial amount of each Lender's  Commitment is set forth on Schedule 2.01, or in
the Assignment  and Acceptance  pursuant to which such Lender shall have assumed
its Commitment,  as applicable.  As of the date hereof,  the aggregate amount of
the Lenders' Commitments is $300,000,000.

                  "Competitive  Bid"  shall  mean an offer by a Lender to make a
Competitive Loan pursuant to Section 2.03.

                  "Competitive   Bid   Accept/Reject   Letter"   shall   mean  a
notification  made by the  Borrower  pursuant to Section  2.03(d) in the form of
Exhibit A-4.

                  "Competitive  Bid Rate" shall mean, as to any  Competitive Bid
made by a Lender  pursuant to Section  2.03(b),  (i) in the case of a Eurodollar
Loan,  the Margin,  and (ii) in the case of a Fixed Rate Loan, the fixed rate of
interest offered by the Lender making such Competitive Bid.

                  "Competitive  Bid Request"  shall mean a request made pursuant
to Section 2.03 in the form of Exhibit A-1.

                  "Competitive Borrowing" shall mean a borrowing consisting of a
Competitive  Loan or  concurrent  Competitive  Loans  from a Lender  or  certain
Lenders  whose  Competitive  Bids for such  Borrowing  have been  accepted  by a
Borrower under the bidding procedure described in Section 2.03.

                  "Competitive  Loan"  shall  mean a Loan  from  a  Lender  to a
Borrower  pursuant to the bidding  procedure  described  in Section  2.03.  Each
Competitive Loan shall be a Eurodollar Competitive Loan or a Fixed Rate Loan.

                  "Confidential   Memorandum"   shall   mean  the   Confidential
Information Memorandum of the Borrowers dated October 23, 2000.

                  "Consolidated Adjusted Net Worth" shall mean, on any date, the
stockholders' equity of Stilwell and the Consolidated Subsidiaries on such date,
computed and  consolidated in accordance  with GAAP,  minus  "accumulated  other
comprehensive  income" as shown on Stilwell's  consolidated  balance sheet under
stockholders' equity.

                  "Consolidated  EBITDA" shall mean, for any period, the sum for
such period of (a) Consolidated Net Income,  (b) Consolidated  Interest Expense,
(c) provision for income taxes for Stilwell and the  Consolidated  Subsidiaries,
(d) any amount which in the  determination  of Consolidated  Net Income has been
deducted for depreciation  expense or amortization expense and (e) to the extent
not included in

<PAGE>

clause  (d),  writeoffs  of goodwill  (excess of  purchase  cost over net assets
acquired), in each case determined in accordance with GAAP.

                  "Consolidated  Interest  Expense"  shall mean, for any period,
total  interest  expense of  Stilwell  and the  Consolidated  Subsidiaries  on a
consolidated  basis  for  such  period,  determined  in  accordance  with  GAAP,
including  (i) the  amortization  of debt  discounts  to the extent  included in
interest  expense in accordance  with GAAP,  (ii) the  amortization  of all fees
(including  fees with respect to interest  rate  protection  agreements or other
interest rate hedging arrangements) payable in connection with the incurrence of
Indebtedness to the extent included in interest  expense in accordance with GAAP
and (iii) the portion of any rents  payable under  capital  leases  allocable to
interest expense in accordance with GAAP.

                  "Consolidated Net Income" shall mean, for any period,  the net
income of Stilwell and the Consolidated Subsidiaries on a consolidated basis for
such period but without giving effect to any extraordinary  gains and gains from
the sale of assets (other than in the ordinary  course of business),  determined
in accordance with GAAP.

                  "Consolidated  Net Loss" shall mean,  for any period,  the net
loss of Stilwell and the Consolidated  Subsidiaries on a consolidated  basis for
such period plus writeoffs of goodwill  (excess of purchase cost over net assets
acquired), in each case determined in accordance with GAAP.

                  "Consolidated   Net  Worth"  shall  mean,  on  any  date,  the
stockholders' equity of Stilwell and the Consolidated Subsidiaries on such date,
computed and consolidated in accordance with GAAP.

                  "Consolidated  Subsidiary"  shall  mean  each  Subsidiary  the
financial  statements  of which shall be required  to be  consolidated  with the
financial statements of Stilwell in accordance with GAAP.

                  "Consolidated  Total  Indebtedness" shall mean at any date all
Indebtedness  of  Stilwell  and the  Consolidated  Subsidiaries  at  such  date,
determined on a consolidated basis in accordance with GAAP.

                  "Control" shall mean 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,  by contract or
otherwise,  and "Controlling" and "Controlled"  shall have meanings  correlative
thereto.

                  "Controlled  Group" means all members of a controlled group of
corporations and all trades or businesses  (whether or not  incorporated)  under
common control which, together with Stilwell or any Subsidiary, are treated as a
single  employer  under  Section  414(b) or 414(c)  of the Code or,  solely  for
purposes of Section  302 of ERISA and Section 412 of the Code,  are treated as a
single employer under Section 414(b), (c), (m) or (o) of the Code.

                  "Default" shall mean any event or condition which upon notice,
lapse of time or both would constitute an Event of Default.

                  "dollars" or "$" shall mean lawful money of the  United States
of America.

                  "DST  Systems"  shall  mean  DST  Systems,  Inc.,  a  Delaware
corporation.

                  "Eligible  Assignee" shall mean (a) a Lender, (b) an Affiliate
of a Lender,  or (c) any other Person approved by (i) the Agent,  (ii) unless an
Event of Default has occurred and is  continuing  at the time any  assignment is
effected in accordance  with Section 10.04,  the Borrowers and (iii) in the case
of an assignment of all or a portion of a Commitment or any Lender's obligations
in respect of its Swingline Exposure, the Swingline Lender, such approval by the
Agent,  the  Borrowers  and  the  Swingline  Lender,  as  applicable,  not to be
unreasonably  withheld  or  delayed;  provided,  however,  that  none  of  (1) a
Borrower,  (2) any  Affiliate  of a Borrower or (3) an  investment  manager,  an
investment company or any similar entity shall qualify as an Eligible Assignee .

                  "Environmental  Lien"  shall  mean  a  Lien  in  favor  of any
governmental  entity for (a) any liability under Federal or state  environmental
laws or  regulations  (including,  without  limitation,  RCRA and CERCLA) or (b)
damages arising from costs incurred by such governmental entity in response to a
release of a  hazardous  or toxic  waste,  substance  or  constituent,  or other
substance into the environment.

<PAGE>

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time.

                  "Eurodollar  Borrowing"  shall mean a Borrowing  comprised  of
Eurodollar Loans.

                  "Eurodollar  Competitive  Borrowing"  shall  mean a  Borrowing
comprised of Eurodollar Competitive Loans.

                  "Eurodollar  Competitive Loan" shall mean any Competitive Loan
bearing  interest  at a rate  determined  by  reference  to  the  LIBO  Rate  in
accordance with the provisions of Article II.

                  "Eurodollar Loan"  shall  mean any Eurodollar Competitive Loan
or Eurodollar Standby Loan.

                  "Eurodollar   Standby   Borrowing"   shall  mean  a  Borrowing
comprised of Eurodollar Standby Loans.

                  "Eurodollar  Standby Loan" shall mean any Standby Loan bearing
interest  at a rate  determined  by  reference  to the  Adjusted  LIBO  Rate  in
accordance with the provisions of Article II.

                  "Event of  Default"  shall have the  meaning  assigned to such
term in Article VII.

                  "Excess  Margin  Stock"  means that  portion,  if any,  of the
Margin Stock owned by Stilwell and its  Subsidiaries  that must be excluded from
the restrictions imposed by Section 6.02 and Section 6.04 in order for the value
(determined in accordance with Regulation U) of the Margin Stock subject to such
Sections to account for less than 25% of the aggregate  value (as so determined)
of all assets subject to such Sections.

                  "Facility Fee" shall have the meaning assigned to such term in
Section 2.06(a).

                  "Fee  Letter"  shall  mean the  letter  agreement  dated as of
October 22, 2000 among Stilwell, the Agent and Salomon Smith Barney Inc.

                  "Fees" shall mean the Facility Fee, the  Utilization  Fee  and
the Agent's Fees.

                  "Finance  Subsidiary" shall mean a special purpose  subsidiary
engaged  solely in  purchasing,  owning and financing  receivables  as part of a
Permitted B Share True Sale Transaction.

                  "Financial  Officer" of any  corporation  shall mean the chief
financial  officer,   principal   accounting  officer,   vice-president-finance,
treasurer or controller of such corporation.

                  "Fixed  Charge  Ratio"  shall  mean  for  any  period  of four
consecutive  fiscal  quarters ended on the last day of any fiscal  quarter,  the
ratio  of  (a)  Consolidated  EBITDA  for  such  period  to (b)  the  sum of (i)
Consolidated  Interest Expense for such period and (ii) required payments during
such period of  principal  of  Indebtedness  including  the portion of any rents
payable under capital leases allocable to principal in accordance with GAAP.

                  "Fixed Rate  Borrowing"  shall mean a Borrowing  comprised  of
Fixed Rate Loans.

                  "Fixed  Rate Loan"  shall mean any  Competitive  Loan  bearing
interest  at a fixed  percentage  rate  per  annum  (expressed  in the form of a
decimal to no more than four decimal places) specified by the Lender making such
Loan in its Competitive Bid.

                  "GAAP"  shall  mean  U.S.  generally  accepted  accounting
principles, applied on a consistent basis.

                  "Governmental  Authority" shall mean any Federal, state, local
or  foreign  court  or  governmental  agency,   authority,   instrumentality  or
regulatory body.

                  "Guarantee"  of a person  means any  agreement  by which  such
person assumes, guarantees, endorses, contingently agrees to purchase or provide
funds for the payment of, or otherwise

<PAGE>

becomes liable upon,  the obligation of any other person,  or agrees to maintain
the net worth or  working  capital  or other  financial  condition  of any other
person or  otherwise  assures any creditor of such other  person  against  loss,
including,  without  limitation,  any comfort  letter,  operating  agreement  or
take-or-pay  contract and shall  include,  without  limitation,  the  contingent
liability  of such person in  connection  with any  application  for a Letter of
Credit. The term "Guarantee" used as a verb has a corresponding meaning.

                  "Guarantor" shall mean Stilwell.

                  "Indebtedness" of any person shall mean, without  duplication,
(a) all  obligations of such person for borrowed  money,  (b) all obligations of
such person evidenced by bonds, debentures, notes, acceptances,  equipment trust
certificates or similar  instruments,  (c) all obligations of such person issued
or assumed as the  deferred  purchase  price of property or services  other than
accounts  payable  arising in the ordinary  course of such person's  business on
terms customary in the trade, (d) all obligations of such person, whether or not
assumed,  secured  by (or for  which  the  holder  of such  Indebtedness  has an
existing right,  contingent or otherwise,  to be secured by) any Lien or payable
out of the  proceeds  or  production  from  property  owned or  acquired by such
person,  (e) Capitalized Lease Obligations of such person, (f) all Guarantees by
such  person  of  Indebtedness  of  others  and (g)  any  other  obligations  or
securities (other than obligations  arising pursuant to the Janus Stock Purchase
Agreement and certain other stock purchase agreements and restriction agreements
requiring Stilwell to purchase  outstanding capital stock of Janus from minority
stockholders of Janus) which such person is directly or indirectly  obligated to
repay, redeem, retire, extinguish or repurchase on or prior to the Maturity Date
(i) at a fixed or determinable  date,  whether by operation of a sinking fund or
otherwise,  (ii) at the  option of any person  other than the issuer  thereof or
(iii) upon the  occurrence  of a condition  not solely within the control of the
issuer thereof or obligor thereon,  such as a redemption out of future earnings.
The  Indebtedness  of any person  shall  include the  Indebtedness  of any other
entity  (including any partnership in which such person is a general partner) to
the extent such person is liable therefor as a result of such person's ownership
interest in or other  relationship  with such  entity,  except to the extent the
terms of such Indebtedness provide that such person is not liable therefor.

                  "Interest  Payment Date" shall mean, with respect to any Loan,
the last day of the  Interest  Period  applicable  thereto and, in the case of a
Eurodollar Loan with an Interest Period of more than three months' duration or a
Fixed Rate Loan with an Interest Period of more than 90 days' duration, each day
that  would  have been an  Interest  Payment  Date for such Loan had  successive
Interest Periods of three months' duration or 90 days duration,  as the case may
be, been  applicable to such Loan and, in addition,  the date of any refinancing
or conversion of such Loan with or to a Loan of a different Type.

                  "Interest   Period"  shall  mean  (a)  as  to  any  Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day (or, if there is no numerically corresponding day,
on the last day) in the calendar month that is 1, 2, 3, 6 or, if available, 9 or
12, months  thereafter,  as the Borrower may elect, (b) as to any ABR Borrowing,
the period  commencing  on the date of such  Borrowing and ending on the date 90
days  thereafter or, if earlier,  on the Maturity Date or the date of prepayment
of such Borrowing,  (c) as to any Fixed Rate Borrowing, the period commencing on
the date of such Borrowing and ending on the date  specified in the  Competitive
Bids in which the offer to make the Fixed Rate Loans  comprising  such Borrowing
were extended, which shall not be earlier than seven days after the date of such
Borrowing or later than 360 days after the date of such  Borrowing and (d) as to
any Swingline Loan, the period commencing on the date of such Swingline Loan and
ending on the earlier of (x) the  Maturity  Date and (y) the fifth  Business Day
after the date of such Swingline Loan; provided,  however,  that if any Interest
Period would end on a day other than a Business Day, such Interest  Period shall
be  extended  to the  next  succeeding  Business  Day  unless,  in the  case  of
Eurodollar Loans only, such next succeeding  Business Day would fall in the next
calendar  month,  in which  case  such  Interest  Period  shall  end on the next
preceding  Business Day.  Interest shall accrue from and including the first day
of an Interest Period to but excluding the last day of such Interest Period.

                  "Janus"  shall  mean  Janus  Capital  Corporation,  a Colorado
corporation.

                  "Janus Stock Purchase Agreement" shall mean the Stock Purchase
Agreement  dated  April  13, 1984  by and among Kansas City Southern Industries,
Inc.  and  Thomas  H.  Bailey,  William  C.  Mangus, Bernard E. Niedermeyer III,
Michael  Stolper  and  Jack  R. Thompson,  as  amended  prior to the date hereof
including  pursuant  to  the  Assignment  and  Assumption  Agreement  and  Fifth
Amendment  to  Stock  Purchase  Agreement dated November 19, 1999  by  and among
Kansas  City Southern  Industries, Inc., Stilwell  Financial Inc.  and Thomas H.
Bailey and Michael Stolper.

<PAGE>

                  "Lenders" shall mean (a) the financial  institutions listed on
Schedule 2.01 (other than any such financial institution that has ceased to be a
party hereto  pursuant to an Assignment  and  Acceptance)  and (b) any financial
institution  that has  become  a party  hereto  pursuant  to an  Assignment  and
Acceptance.  Unless the context clearly indicates otherwise,  the term "Lenders"
shall include the Swingline Lender.

                  "Letter of  Credit" of a person  shall mean a letter of credit
or similar instrument that is issued upon the application of such person or upon
which  such  person is an account  party or for which such  person is in any way
liable.

                  "Leverage  Ratio"  shall mean,  on any date,  the ratio of (a)
Consolidated Total  Indebtedness as of such date to (b) Consolidated  EBITDA for
the period of four  consecutive  fiscal  quarters of Stilwell ended on such date
(or,  if such date is not the last day of a fiscal  quarter,  on the last day of
the fiscal quarter of Stilwell most recently ended prior to such date).

                  "LIBO  Rate"  shall  mean,  with  respect  to  any  Eurodollar
Borrowing  for any  Interest  Period,  the rate  appearing  on Page  3750 of the
Telerate Service (or on any successor or substitute page of such Service, or any
successor  to  or  substitute  for  such  Service,   providing  rate  quotations
comparable  to  those  currently  provided  on such  page of  such  Service,  as
determined  by the Agent from time to time for purposes of providing  quotations
of interest rates applicable to dollar deposits in the London interbank  market)
at  approximately  11:00  a.m.,  London  time,  two  Business  Days prior to the
commencement  of such Interest  Period,  as the rate for dollar  deposits with a
maturity  comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the "LIBO Rate" with respect to such
Eurodollar  Borrowings  for such Interest  Period shall be the average  (rounded
upward to the nearest whole multiple of 1/16 of 1% per annum, if such average is
not such a multiple) of the rate per annum at which dollar  deposits  offered by
the principal office of each of the Reference Banks in London,  England to prime
banks in the London  interbank  market at 11:00 A.M.  (London time) two Business
Days  before the first day of such  Interest  Period in an amount  substantially
equal to the amount that would be the Reference Banks' respective ratable shares
of such Eurodollar  Borrowing if such Eurodollar  Borrowing were to be a Standby
Borrowing to be outstanding  during such Interest  Period and for a period equal
to such Interest  Period.  If the Telerate Page 3750 (or any successor  page) is
unavailable,  the  LIBO  Rate  for  any  Interest  Period  for  each  Eurodollar
Competitive Borrowing comprising part of the same Competitive Borrowing shall be
determined  by the  Agent on the  basis of  applicable  rates  furnished  to and
received  by the Agent from the  Reference  Banks two  Business  Days before the
first day of such  Interest  Period,  subject,  however,  to the  provisions  of
Section 2.08.

                  "Lien"  shall  mean,  with  respect  to  any  asset,  (a)  any
mortgage, deed of trust, lien, pledge, encumbrance,  charge or security interest
in or on such  asset,  (b) the  interest  of a  vendor  or a  lessor  under  any
conditional sale agreement,  capital lease or title retention agreement relating
to such asset and (c) in the case of securities,  any purchase  option,  call or
similar right of a third party with respect to such securities.

                  "Loan"  shall  mean a  Competitive  Loan  or a  Standby  Loan,
whether made as a Eurodollar Loan, an ABR Loan, a Fixed Rate Loan or a Swingline
Loan, each as permitted hereby.

                  "Loan  Documents" shall mean this Agreement and the Fee Letter
(and the commitment letter executed in connection therewith).

                  "Lowry  Property"  shall mean a parcel of land  consisting  of
approximately  35.4 acres  located at the former Lowry Air Force Base in Denver,
Colorado.  The  Lowry  Property  will be  owned  by  Janus  Properties,  LLC,  a
wholly-owned subsidiary of Janus.

                  "Margin"  shall mean, as to any Eurodollar  Competitive  Loan,
the margin (expressed as a percentage rate per annum in the form of a decimal to
no more than four  decimal  places) to be added to or  subtracted  from the LIBO
Rate in order to  determine  the  interest  rate  applicable  to such  Loan,  as
specified in the Competitive Bid relating to such Loan.

                  "Margin  Stock"  shall have the meaning  given such term under
Regulation U.

                  "Material  Adverse Effect" means a material  adverse effect on
(a) the  business,  assets,  liabilities,  operations,  condition  (financial or
otherwise) or prospects of either Borrower and its Related Subsidiaries taken as
a whole,  (b) the ability of either  Borrower to perform any of its  obligations
under any

<PAGE>

Loan Document or to complete the Transactions in any material respect or (c) the
rights of or benefits available to the Lenders under any Loan Document.

                  "Maturity Date" shall mean December 7, 2005.

                  "Multiemployer   Plan"   shall   mean   a  Plan   that   is  a
"multiemployer  plan" as  defined  in  Section  4001(a)(3)  of ERISA as to which
Stilwell or any member of the Controlled Group may have any liability.

                  "Multiple   Employer  Plan"  shall  mean  a  Plan  that  is  a
single-employer plan which has two or more contributing sponsors at least two of
whom are not under  common  control  or who made  contributions  under such Plan
during the preceding five years.

                  "Nelson"  shall mean  Nelson  Money  Managers  plc, an English
corporation.

                  "2000  Credit  Agreement"  shall mean the 364-Day  Competitive
Advance and Revolving  Credit  Facility  Agreement  dated as of January 11, 2000
among  Stilwell,  the  lenders  party  thereto,  The Chase  Manhattan  Bank,  as
administrative  agent,  Bank of America N.A., as documentation  agent, and Fleet
National  Bank, as  syndication  agent,  as amended,  supplemented  or otherwise
modified from time to time.

                  "Obligations"  shall mean all unpaid  principal of and accrued
and unpaid  interest  on the Loans,  all  accrued  and unpaid Fees and all other
obligations  of the  Borrowers  to the  Lenders  or to any  Lender  or the Agent
arising under the Loan Documents.

                  "PBGC" shall mean the Pension  Benefit  Guarantee  Corporation
referred to and defined in ERISA.

                  "Permitted B Share Recourse Financing  Transaction" shall mean
any  pledge  by Janus of the B Share  Fees to third  parties  in order to secure
Indebtedness  extended by such third  parties;  provided that the Agent shall be
satisfied with the structure and documentation for such transaction and that the
terms of such  transaction,  including  the  advance  rate  and any  termination
events,  shall be consistent with those prevailing in the market at the time for
similar transactions.

                  "Permitted  B Share  Transactions"  shall mean a  Permitted  B
Share  True  Sale  Transaction  or  a  Permitted  B  Share  Recourse   Financing
Transaction.

                  "Permitted B Share True Sale Transaction"  shall mean any sale
by Janus of the B Share Fees to a B Share  Purchaser in a true sale  transaction
without any recourse based upon the  collectibility of the B Share Fees sold and
the sale or pledge of such B Share Fees (or an interest therein) by such B Share
Purchaser,  in each case  without any  Guarantee  by, or other  recourse  to, or
credit support by, Janus or any Related  Subsidiary  (other than to such B Share
Purchaser,  if it is a Finance Subsidiary) or recourse to any assets of Janus or
any of its Related Subsidiaries; provided that the Agent shall be satisfied with
the structure and  documentation for such transaction and that the terms of such
transaction,  including the price at which B Share Fees are sold to such B Share
Purchaser and any termination events,  shall be consistent with those prevailing
in the market at the time for similar transactions.

                  "Permitted Subordinated Debt" means any unsecured Indebtedness
of  Stilwell  (a) the  principal  of which is not by its  terms  required  to be
repaid, prepaid, redeemed,  repurchased or defeased, in whole or in part, at the
option of any holder thereof or on any date prior to the Maturity Date, (b) that
is not  guaranteed  by any  Subsidiary,  (c) that is fully  subordinated  to the
Obligations  of  Stilwell  in the  event of any  bankruptcy,  reorganization  or
insolvency  proceeding  with  respect to  Stilwell,  (d) that  provides  that no
payments of interest will be made during the  continuance  of any Default in the
payment of the principal of or interest on the Obligations, (e) that provides on
customary  terms that  payments of interest may be suspended for a period of 180
days during the  continuance  of  non-payment  Defaults upon notice given by the
Agent on  behalf  of the Lenders and (f) the subordination  provisions of which,
insofar as they relate to the  Obligations, are otherwise customary for publicly
offered subordinated debt securities.

                  "Person" shall mean any natural person, corporation,  business
trust,  joint venture,  association,  company,  partnership,  limited  liability
company or government, or any agency or political subdivision thereof.

<PAGE>

                  "Plan"  shall mean any employee  pension  benefit plan that is
covered by Title IV of ERISA or subject to the minimum  funding  standards under
Section  412 of the Code as to which  Stilwell  or any member of the  Controlled
Group may have any liability.

                  "Pro Rata Percentage" of any Lender at any time shall mean the
percentage of the Total Commitment  represented by such Lender's Commitment.  In
the event that the Total Commitment  shall have expired or been terminated,  the
Pro Rata  Percentage  with respect to any Lender shall be such Lender's Pro Rata
Percentage  most recently in effect prior to such  expiration or  termination of
the Total Commitment,  giving effect to any subsequent  assignments  pursuant to
Section 10.04.

                  "Projections"  shall have the meaning assigned to such term in
Section 3.05(b).

                  "RCRA" shall mean the Resources Conservation and Recovery Act,
as the same may be amended from time to time.

                  "Reference  Banks"   shall  mean  Citibank,  N.A.,  The  Chase
Manhattan Bank and Wells Fargo Bank West, N.A.

                  "Register"  shall have the meaning  given such term in Section
10.04(d).

                  "Regulation  D" shall mean  Regulation  D of the Board as from
time to time in effect and all official rulings and  interpretations  thereunder
or thereof.

                  "Regulation  U" shall mean  Regulation  U of the Board as from
time to time in effect and all official rulings and  interpretations  thereunder
or thereof.

                  "Regulation  X" shall mean  Regulation  X of the Board as from
time to time in effect and all official rulings and  interpretations  thereunder
or thereof.

                  "Related   Subsidiaries"   shall  mean  (a)  with  respect  to
Stilwell,  each of its  subsidiaries,  other  than  Janus  and  each  of  Janus'
subsidiaries and (b) with respect to Janus, each of its subsidiaries.

                  "Reportable  Event" shall mean any reportable event as defined
in Section  4043 of ERISA and the  regulations  issued  under such  Section with
respect to a Plan (other than a Multiemployer Plan),  excluding,  however,  such
events as to which the PBGC by  regulation  or by  technical  update  waived the
requirement  of Section  4043(a) of ERISA that it be notified  within 30 days of
the  occurrence  of such  event;  provided  that a failure  to meet the  minimum
funding standard of Section 412 of the Code and of Section 302 of ERISA shall be
a reportable  event  regardless of the issuance of any waiver in accordance with
Section 412(d) of the Code.

                  "Required  Lenders"  shall mean,  at any time,  Lenders in the
aggregate  holding  more than 50% of the Total  Commitment  or, for  purposes of
acceleration  pursuant to clause (ii) of Article VII or if the Total  Commitment
has been terminated,  Lenders in the aggregate representing more than 50% of the
sum of the Revolving Credit Exposure and the principal amount of the outstanding
Competitive Loans.

                  "Responsible  Officer"  of  any  corporation  shall  mean  any
executive officer or Financial Officer of such corporation and any other officer
or  similar  official  thereof   responsible  for  the   administration  of  the
obligations of such corporation in respect of this Agreement.

                  "Revolving  Credit  Exposure"  shall mean, with respect to any
Lender  at any  time,  the  aggregate  principal  amount  at  such  time  of all
outstanding  Standby Loans of such Lender plus the aggregate amount at such time
of such Lender's Swingline Exposure.

                  "Sale  and  Leaseback  Transaction"  shall  have  the  meaning
assigned to such term in Section 6.03.

                  "Standby  Borrowing"  shall  mean a  borrowing  consisting  of
simultaneous Standby Loans from each of the Lenders.

                  "Standby Borrowing Request" shall mean a request made pursuant
to Section 2.04 in the form of Exhibit A-5.

<PAGE>

                  "Standby  Loans"  shall mean the  revolving  loans made by the
Lenders to a Borrower  pursuant to Section  2.04.  Each  Standby Loan shall be a
Eurodollar Standby Loan or an ABR Loan.

                  "Statutory  Reserves"  shall mean a fraction  (expressed  as a
decimal),  the numerator of which is the number one and the denominator of which
is the  number  one minus  the  aggregate  of the  maximum  reserve  percentages
(including any marginal,  special, emergency or supplemental reserves) expressed
as a decimal  established by the Board and any other banking  authority to which
the Agent is subject (a) with  respect to the Base CD Rate (as such term is used
in the definition of "Alternate Base Rate"), for new negotiable nonpersonal time
deposits in dollars of over  $100,000  with  maturities  approximately  equal to
three months and (b) with respect to the Adjusted  LIBO Rate,  for  Eurocurrency
Liabilities (as defined in Regulation D). Such reserve percentages shall include
any  imposed  pursuant  to  Regulation  D.  Eurodollar  Loans shall be deemed to
constitute   Eurocurrency   Liabilities  and  to  be  subject  to  such  reserve
requirements without benefits of or credit for proration, exemptions or offsets.
Statutory  Reserves shall be adjusted  automatically  on and as of the effective
date of any change in any reserve percentage.

                  "Stilwell"  shall  mean  Stilwell  Financial Inc., a  Delaware
corporation.

                  "subsidiary"  shall  mean,  with  respect to any  person,  any
corporation,  partnership,  limited  liability  company,  association  or  other
business entity of which  securities or other ownership  interests  representing
more than 50% of the  equity or more than 50% of the  ordinary  voting  power or
more than 50% of the general partnership  interests or limited liability company
interests or other  ownership  interests are, at the time any  determination  is
being made, owned, controlled or held.

                  "Subsidiary" shall mean any subsidiary of Stilwell.

                  "Swingline   Exposure"  means,  at  any  time,  the  aggregate
principal amount of all Swingline Loans  outstanding at such time. The Swingline
Exposure  of any Lender at any time shall equal its Pro Rata  Percentage  of the
aggregate Swingline Exposure at such time.

                  "Swingline  Lender" means Citibank,  in its capacity as lender
of  Swingline  Loans  hereunder,  or another  Lender  that has agreed to provide
Swingline Loans hereunder; provided that Janus shall have delivered to the Agent
a written notice that it has elected to replace Citibank as Swingline Lender (it
being  understood that there shall be only one Swingline Lender hereunder at any
time).

                  "Swingline  Loan"  means a Loan  made  to  Janus  pursuant  to
Section 2.22.

                  "364-Day Agreement" shall mean the 364-Day Competitive Advance
and Revolving  Credit  Facility  Agreement dated as of the date hereof among the
Borrowers, the lenders party thereto and the Agent.

                  "Total Commitment" shall mean at any time the aggregate amount
of the Lenders' Commitments under this Agreement, as in effect at such time.

                  "Transactions" shall have the meaning assigned to such term in
Section 3.02.

                  "Type",  when used in respect of any Loan or Borrowing,  shall
refer to the Rate by  reference  to which  interest on such Loan or on the Loans
comprising  such  Borrowing is  determined.  For purposes  hereof,  "Rate" shall
include the Adjusted LIBO Rate,  the LIBO Rate,  the Alternate Base Rate and the
Fixed Rate.

                  "Unfunded   Liabilities"   shall   mean,   on  any   date   of
determination,  (a) in the case of  Multiemployer  Plans and  Multiple  Employer
Plans,  the liability of Stilwell and the  Subsidiaries  if they were to incur a
complete  withdrawal from each such plan and (b) in the case of all other Plans,
all "unfunded benefit liabilities" as defined in Section 4001(a)(18) of ERISA.

                  "Utilization Fee" shall have the meaning assigned to such term
in Section 2.06(b).

                  "Withdrawal Liability" shall mean liability to a Multiemployer
Plan as a result of a complete  or partial  withdrawal  from such  Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

<PAGE>

                  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.  The words  "include",  "includes"  and
"including"  shall be deemed to be followed by the phrase "without  limitation".
All references  herein to Articles,  Sections,  Exhibits and Schedules  shall be
deemed  references  to Articles and Sections of, and Exhibits and  Schedules to,
this Agreement unless the context shall otherwise  require.  Except as otherwise
expressly  provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time;  provided,
however,  that,  for purposes of  determining  compliance  with any covenant set
forth in Article VI, such terms shall be construed in accordance with GAAP as in
effect on the date of this  Agreement  applied  on a basis  consistent  with the
application used in preparing  Stilwell's audited financial  statements referred
to in Section 3.05. In the event that any change in GAAP materially  affects any
provision of this  Agreement,  the parties  hereto agree that, at the request of
the  Borrowers or the Required  Lenders,  they shall  negotiate in good faith in
order to amend the affected provisions in such a way as will restore the parties
to their  respective  positions  prior to such change,  and,  following any such
request, until such amendment becomes effective,  the Borrowers' compliance with
such  provisions  shall  be  determined  on  the  basis  of  GAAP  as in  effect
immediately before such change in GAAP became effective.

ARTICLE II.  THE CREDITS

                  SECTION 2.01. Commitments. Subject to the terms and conditions
and relying  upon the  representations  and  warranties  herein set forth,  each
Lender  agrees,  severally  and not  jointly,  to make  Standby  Loans to either
Borrower,  at any time and from time to time on and after  the date  hereof  and
until the earlier of the Maturity Date and the  termination of the Commitment of
such Lender, in an aggregate  principal amount at any time outstanding that will
not result in such Lender's  Revolving Credit Exposure exceeding its Commitment,
subject, however, to the conditions that at no time shall (a) the sum of (i) the
total Revolving Credit Exposures plus (ii) the outstanding  aggregate  principal
amount of all Competitive Loans exceed the Total Commitment, (b) the outstanding
aggregate  principal  amount of all Loans made by the Lenders to Stilwell exceed
$200,000,000 or (c) the outstanding aggregate principal amount of all Loans made
by the Lenders to Janus exceed $100,000,000.

                  Within the foregoing limits, each of the Borrowers may borrow,
pay or prepay and reborrow hereunder,  on and after the date hereof and prior to
the Maturity Date,  subject to the terms,  conditions and  limitations set forth
herein.

                  SECTION  2.02.  Loans.  (a) Each Standby Loan shall be made as
part  of a  Borrowing  consisting  of  Loans  made  by the  Lenders  ratably  in
accordance with their Commitments;  provided,  however,  that the failure of any
Lender to make any Standby Loan shall not in itself  relieve any other Lender of
its obligation to lend hereunder (it being understood,  however,  that no Lender
shall be  responsible  for the  failure  of any  other  Lender  to make any Loan
required to be made by such other Lender).  Each  Competitive Loan shall be made
in accordance  with the  procedures set forth in Section 2.03. The Standby Loans
or Competitive Loans or Swingline Loans comprising any Borrowing shall be (i) in
the case of  Competitive  Loans,  in an aggregate  principal  amount which is an
integral multiple of $1,000,000 and not less than $10,000,000,  (ii) in the case
of Standby Loans, in an aggregate principal amount which is an integral multiple
of $1,000,000  and not less than  $5,000,000 (or an aggregate  principal  amount
equal to the remaining  balance of the available  Commitments)  and (iii) in the
case of Swingline  Loans, in an aggregate  principal amount which is an integral
multiple of $1,000,000 and not less than $5,000,000.

                  (b) Each Competitive  Borrowing shall be comprised entirely of
Eurodollar  Competitive  Loans or Fixed Rate Loans,  and each Standby  Borrowing
shall be comprised  entirely of Eurodollar  Standby  Loans or ABR Loans,  as the
relevant  Borrower may request  pursuant to Section 2.03 or 2.04, as applicable,
and each  Swingline  Loan  shall  be  comprised  entirely  of ABR  Loans  unless
otherwise  agreed by Janus and the Swingline Lender pursuant to Section 2.08(d).
Each Lender may at its option make any Eurodollar  Loan by causing any  domestic
or foreign  branch or Affiliate of such Lender to make such Loan;  provided that
any  exercise of such option shall not affect the  obligation  of  the  relevant
Borrower to repay such Loan in accordance  with  the  terms  of this  Agreement.
Borrowings  of more than one Type may be outstanding at the same time; provided,
however, that neither Borrower shall be entitled to request any Borrowing which,
if made,  would result in an aggregate  of  more  than  eight  separate  Standby
Loans of any  Lender  being  outstanding hereunder at any one time. For purposes
of the foregoing, Loans having

<PAGE>

different  Interest  Periods,  regardless  of whether they  commence on the same
date, shall be considered separate Loans.

                  (c) Subject to Section 2.05,  each Lender shall make each Loan
to be made by it  hereunder on the  proposed  date  thereof by wire  transfer of
immediately  available  funds to the Agent in New York, New York, not later than
12:00 noon,  New York City time, and the Agent shall by 3:00 p.m., New York City
time,  credit the  amounts so received  to the  general  deposit  account of the
relevant Borrower with the Agent or, if a Borrowing shall not occur on such date
because any condition precedent herein specified shall not have been met, return
the amounts so received to the respective Lenders; provided that Swingline Loans
shall be made as provided in Section  2.22.  Competitive  Loans shall be made by
the Lender or Lenders whose  Competitive Bids therefor are accepted  pursuant to
Section 2.03 in the amounts so accepted  and Standby  Loans shall be made by the
Lenders pro rata in accordance  with Section 2.16.  The failure of any Lender to
make any Loan  required to be made by it shall not  relieve any other  Lender of
its obligations hereunder; provided that the Commitments and Competitive Bids of
the  Lenders  are  several  and no  Lender  shall be  responsible  for any other
Lender's failure to make Loans as required. Unless the Agent shall have received
notice from a Lender  prior to the date of any  Borrowing  that such Lender will
not make  available to the Agent such Lender's  portion of such  Borrowing,  the
Agent may assume that such Lender has made such  portion  available to the Agent
on the date of such  Borrowing in  accordance  with this  paragraph  (c) and the
Agent may, in reliance  upon such  assumption,  make  available  to the relevant
Borrower  on such date a  corresponding  amount.  If and to the extent that such
Lender shall not have made such portion  available to the Agent, such Lender and
the relevant Borrower  severally agree to repay to the Agent forthwith on demand
such corresponding  amount together with interest thereon, for each day from the
date such amount is made  available to such Borrower  until the date such amount
is repaid to the Agent at (i) in the case of such  Borrower,  the interest  rate
applicable at the time to the Loans  comprising  such  Borrowing and (ii) in the
case of such Lender,  the Federal  Funds  Effective  Rate.  If such Lender shall
repay to the Agent such corresponding  amount, such amount shall constitute such
Lender's Loan as part of such Borrowing for purposes of this Agreement.

                  (d)  Notwithstanding  any other  provision of this  Agreement,
neither  Borrower  shall be entitled to request any  Borrowing  if the  Interest
Period requested with respect thereto would end after the Maturity Date.

                  SECTION  2.03.  Competitive  Bid  Procedure.  (a) In  order to
request  Competitive  Bids, the relevant  Borrower shall hand deliver,  telex or
telecopy to the Agent a duly  completed  Competitive  Bid Request in the form of
Exhibit A-1 hereto,  to be received by the Agent (i) in the case of a Eurodollar
Competitive  Borrowing,  not later than  10:00  a.m.,  New York City time,  four
Business Days before a proposed Competitive  Borrowing and (ii) in the case of a
Fixed  Rate  Borrowing,  not later  than 10:00  a.m.,  New York City  time,  one
Business  Day  before a  proposed  Competitive  Borrowing.  No ABR Loan shall be
requested in, or made pursuant to, a Competitive Bid Request.  A Competitive Bid
Request that does not conform  substantially to the format of Exhibit A-1 may be
rejected in the Agent's sole discretion, and the Agent shall promptly notify the
relevant  Borrower of such rejection by telex or telecopier.  Such request shall
in each case refer to this  Agreement and specify (x) whether the Borrowing then
being requested is to be a Eurodollar  Borrowing or a Fixed Rate Borrowing,  (y)
the date of such  Borrowing  (which shall be a Business  Day) and the  aggregate
principal  amount  thereof  which  shall be in a  minimum  principal  amount  of
$10,000,000  and in an integral  multiple of  $1,000,000,  and (z) the  Interest
Period  with  respect  thereto  (which  may not end  after the  Maturity  Date).
Promptly after its receipt of a Competitive  Bid Request that is not rejected as
aforesaid,  the  Agent  shall  invite  by  telecopier  (in the form set forth in
Exhibit A-2 hereto)  the  Lenders to bid,  on the terms and  conditions  of this
Agreement,  to make  Competitive  Loans pursuant to the Competitive Bid Request.
Competitive  Borrowings may be made in an aggregate principal amount outstanding
at any time not greater than the Total  Commitment  minus the  Revolving  Credit
Exposures  at  such  time.  The  portion  of  the  Revolving   Credit   Exposure
attributable  to Stilwell  at any time plus the  aggregate  principal  amount of
Competitive  Loans  to  Stilwell  outstanding  at such  time  shall  not  exceed
$200,000,000. The portion of the Revolving Credit Exposure attributable to Janus
at any time plus the aggregate  principal  amount of Competitive  Loans to Janus
outstanding at such time shall not exceed $100,000,000.

                  (b) Each Lender may, in its sole discretion,  make one or more
Competitive  Bids to the  relevant  Borrower  responsive  to a  Competitive  Bid
Request.  Each  Competitive  Bid by a Lender  must be  received by the Agent via
telecopier,  in the form of Exhibit A-3 hereto,  (i) in the case of a Eurodollar
Competitive  Borrowing,  not later  than 9:30 a.m.,

<PAGE>

New York City time, three Business Days before a proposed Competitive  Borrowing
and (ii) in the case of a Fixed Rate  Borrowing,  not later than 9:30 a.m.,  New
York City time, on the day of a proposed  Competitive  Borrowing.  Multiple bids
will  be  accepted  by  the  Agent.   Competitive   Bids  that  do  not  conform
substantially  to the format of Exhibit  A-3 may be  rejected by the Agent after
conferring  with, and upon the  instruction of, the relevant  Borrower,  and the
Agent shall notify the Lender making such nonconforming bid of such rejection as
soon as  practicable.  Each  Competitive  Bid shall refer to this  Agreement and
specify (x) the principal  amount (which shall be in a minimum  principal amount
of $10,000,000 and in an integral multiple of $1,000,000 and which may equal the
entire principal amount of the Competitive  Borrowing  requested by the relevant
Borrower) of the Competitive Loan or Loans that the Lender is willing to make to
such  Borrower,  (y) the  Competitive  Bid Rate or Rates at which the  Lender is
prepared to make the  Competitive  Loan or Loans and (z) the Interest Period and
the last day thereof.  If any Lender shall elect not to make a Competitive  Bid,
such  Lender  shall  so  notify  the  Agent  via  telecopier  (I) in the case of
Eurodollar  Competitive  Loans,  not later than 9:30  a.m.,  New York City time,
three  Business Days before a proposed  Competitive  Borrowing,  and (II) in the
case of Fixed Rate Loans,  not later than 9:30 a.m.,  New York City time, on the
day of a proposed Competitive Borrowing;  provided, however, that failure by any
Lender to give such notice  shall not cause such Lender to be  obligated to make
any Competitive  Loan as part of such Competitive  Borrowing.  A Competitive Bid
submitted by a Lender pursuant to this paragraph (b) shall be irrevocable.

                  (c) The Agent shall promptly  notify the relevant  Borrower by
telecopier of all the  Competitive  Bids made, the  Competitive Bid Rate and the
principal  amount of each Competitive Loan in respect of which a Competitive Bid
was made and the identity of the Lender that made each bid. The Agent shall send
a copy of all  Competitive  Bids to such  Borrower  for its  records  as soon as
practicable  after  completion of the bidding  process set forth in this Section
2.03.

                  (d)  The  relevant  Borrower  may in  its  sole  and  absolute
discretion,  subject only to the  provisions of this  paragraph  (d),  accept or
reject any  Competitive  Bid  referred to in paragraph  (c) above.  The relevant
Borrower  shall notify the Agent by  telephone,  confirmed by  telecopier in the
form of a  Competitive  Bid  Accept/Reject  Letter  in the form of  Exhibit  A-4
hereto,  whether and to what extent it has decided to accept or reject any of or
all the bids referred to in paragraph (c) above, (x) in the case of a Eurodollar
Competitive  Borrowing,  not later than 10:30  a.m.,  New York City time,  three
Business Days before a proposed Competitive Borrowing,  and (y) in the case of a
Fixed Rate Borrowing,  not later than 10:30 a.m., New York City time, on the day
of a proposed Competitive Borrowing;  provided, however, that (i) the failure by
such  Borrower to give such notice  shall be deemed to be a rejection of all the
bids referred to in paragraph (c) above,  (ii) such Borrower  shall not accept a
bid made at a particular  Competitive  Bid Rate if such  Borrower has decided to
reject a bid made at a lower Competitive Bid Rate, (iii) the aggregate amount of
the  Competitive  Bids accepted by such Borrower  shall not exceed the principal
amount  specified  in the  Competitive  Bid  Request  and  shall be in a minimum
principal  amount of  $10,000,000,  (iv) if such Borrower  shall accept a bid or
bids made at a  particular  Competitive  Bid Rate but the  amount of such bid or
bids shall cause the total  amount of bids to be  accepted  by such  Borrower to
exceed the amount  specified in the Competitive Bid Request,  then such Borrower
shall  accept a  portion  of such bid or bids in an amount  equal to the  amount
specified  in  the  Competitive  Bid  Request  less  the  amount  of  all  other
Competitive  Bids accepted with respect to such  Competitive Bid Request,  which
acceptance,  in the case of multiple bids at such Competitive Bid Rate, shall be
made pro rata in accordance with the amount of each such bid at such Competitive
Bid Rate, and (v) except pursuant to clause (iv) above, no bid shall be accepted
for a Competitive Loan unless such  Competitive  Loan is in a minimum  principal
amount of $10,000,000 and an integral multiple of $1,000,000;  provided further,
however,  that if a Competitive  Loan must be in an amount less than $10,000,000
because of the provisions of clause (iv) above, such Competitive Loan may be for
a minimum of $1,000,000 or any integral multiple thereof, and in calculating the
pro rata  allocation of acceptances of portions of multiple bids at a particular
Competitive  Bid Rate  pursuant to clause  (iv) the amounts  shall be rounded to
integral multiples of $1,000,000 in a manner which shall be in the discretion of
such  Borrower.  A  notice  given  by the  relevant  Borrower  pursuant  to this
paragraph (d) shall be irrevocable.

                  (e) The  Agent  shall  promptly  notify  each  bidding  Lender
whether or not its  Competitive Bid has been accepted (and if so, in what amount
and at what  Competitive  Bid  Rate) by  telecopy  sent by the  Agent,  and each
successful  bidder will thereupon become bound,  subject to the other applicable
conditions  hereof, to make the Competitive Loan in respect of which its bid has
been accepted.

                  (f) A  Competitive  Bid Request  shall not be made within five
Business Days after the date of any previous Competitive Bid Request.

<PAGE>

                  (g) If the Agent  shall elect to submit a  Competitive  Bid in
its  capacity as a Lender,  it shall  submit such bid  directly to the  relevant
Borrower  one quarter of an hour earlier than the latest time at which the other
Lenders are required to submit their bids to the Agent pursuant to paragraph (b)
above.

                  (h)  All Notices required by this Section 2.03 shall be  given
in accordance with Section 10.01.

                  SECTION 2.04. Standby Borrowing Procedure. In order to request
a Standby Borrowing, the relevant Borrower shall hand deliver or telecopy to the
Agent  in the  form of  Exhibit  A-5 (a) in the  case  of a  Eurodollar  Standby
Borrowing,  not later than 10:30 a.m.,  New York City time,  three Business Days
before a proposed  borrowing and (b) in the case of an ABR Borrowing,  not later
than 10:30  a.m.,  New York City time,  on the day of a proposed  borrowing.  No
Fixed Rate Loan  shall be  requested  or made  pursuant  to a Standby  Borrowing
Request.  Such notice  shall be  irrevocable  and shall in each case specify (i)
whether  the  Borrowing  then  being  requested  is to be a  Eurodollar  Standby
Borrowing or an ABR Borrowing;  (ii) the date of such Standby  Borrowing  (which
shall be a Business Day) and the amount thereof;  and (iii) if such Borrowing is
to be a Eurodollar Standby Borrowing,  the Interest Period with respect thereto.
If no  election as to the Type of Standby  Borrowing  is  specified  in any such
notice,  then the requested Standby  Borrowing shall be an ABR Borrowing.  If no
Interest Period with respect to any Eurodollar Standby Borrowing is specified in
any such notice,  then the relevant Borrower shall be deemed to have selected an
Interest Period of one month's duration. If the relevant Borrower shall not have
given notice in accordance with this Section 2.04 of its election to refinance a
Standby  Borrowing  prior to the end of the  Interest  Period in effect for such
Borrowing,  then such Borrower shall (unless such Borrowing is repaid at the end
of such  Interest  Period)  be deemed to have  given  notice of an  election  to
refinance such Borrowing with an ABR Borrowing.  The Agent shall promptly advise
the  Lenders of any  notice  given  pursuant  to this  Section  2.04 and of each
Lender's portion of the requested Borrowing.

                  SECTION 2.05. Interest  Elections.  (a) Each Standby Borrowing
initially  shall be of the Type  specified in the applicable  Borrowing  Request
and,  in the case of a  Eurodollar  Standby  Borrowing,  shall  have an  initial
Interest Period as specified in such Borrowing Request. Thereafter, the relevant
Borrower may elect to convert such  Borrowing to a Borrowing of a different Type
or to  continue  such  Borrowing  and,  in  the  case  of a  Eurodollar  Standby
Borrowing, may elect Interest Periods therefor, all as provided in this Section.
The  relevant  Borrower  may elect  different  options with respect to different
portions of the affected  Borrowing,  in which case each such  portion  shall be
allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans  comprising  each such  portion  shall be  considered  a  separate
Borrowing.  This Section shall not apply to Competitive  Borrowings or Swingline
Borrowings, which may not be converted or continued.

                  (b) To make an election pursuant to this Section, the relevant
Borrower shall notify the Agent of such election by telephone by the time that a
Borrowing  Request  would be required  under  Section 2.04 if such Borrower were
requesting a Standby  Borrowing of the Type  resulting  from such election to be
made on the  effective  date of such  election.  Each such  telephonic  Interest
Election  Request shall be irrevocable  and shall be confirmed  promptly by hand
delivery or telecopy to the Agent of a written  Interest  Election  Request in a
form approved by the Agent and signed by the relevant Borrower.

                  (c) Each  telephonic  and written  Interest  Election  Request
shall specify the following information in compliance with Section 2.02:

                  (i) the  Borrowing  to which such  Interest  Election  Request
         applies  and, if  different  options are being  elected with respect to
         different  portions  thereof,  the portions  thereof to be allocated to
         each resulting Borrowing (in which case the information to be specified
         pursuant to clauses  (iii) and (iv) below shall be  specified  for each
         resulting Borrowing);

                  (ii) the effective  date of the election made pursuant to such
         Interest Election Request, which shall be a Business Day;

                  (iii) whether  the  resulting   Borrowing  is  to  be  an  ABR
Borrowing or a Eurodollar Borrowing; and

                  (iv)  if  the  resulting  Borrowing  is  to  be  a  Eurodollar
         Borrowing,  the Interest  Period to be applicable  thereto after giving
         effect to such election,  which shall be a period  contemplated  by the
         definition of the term "Interest Period".

<PAGE>

If any such Interest  Election Request requests a Eurodollar  Borrowing but does
not specify an Interest  Period,  then the relevant  Borrower shall be deemed to
have selected an Interest Period of one month's duration.

                  (d)  Promptly   following  receipt  of  an  Interest  Election
Request,  the Agent shall advise each Lender of the details  thereof and of such
Lender's portion of each resulting Borrowing.

                  (e) If  the  relevant  Borrower  fails  to  deliver  a  timely
Interest  Election Request with respect to a Eurodollar  Standby Borrowing prior
to the  end  of the  Interest  Period  applicable  thereto,  then,  unless  such
Borrowing is repaid as provided herein,  at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing.  Notwithstanding  any contrary
provision  hereof, if an Event of Default has occurred and is continuing and the
Agent,  at the  request  of the  Required  Lenders,  so  notifies  the  relevant
Borrower,  then, so long as an Event of Default is continuing (i) no outstanding
Standby Borrowing may be converted to or continued as a Eurodollar Borrowing and
(ii) unless repaid,  each Eurodollar  Standby Borrowing shall be converted to an
ABR Borrowing at the end of the Interest Period applicable thereto.

                  SECTION 2.06. Fees. (a) Stilwell agrees to pay to each Lender,
through the Agent,  a facility fee (a "Facility  Fee") at a rate per annum equal
to the  Applicable  Percentage  from time to time in effect on the amount of the
Commitment of such Lender,  whether used or unused, during the period commencing
with  the date  hereof  to but  excluding  the  date on  which  such  Commitment
terminates;  provided that if such Lender continues to have any Revolving Credit
Exposure after its Commitment terminates,  then such Facility Fee shall continue
to accrue on the daily amount of such Lender's  Revolving  Credit  Exposure from
and including the date on which its  Commitment  terminates to but excluding the
date on which such Lender ceases to have any Revolving Credit Exposure.  Accrued
Facility  Fees  shall be  payable  in  arrears  on the last day of March,  June,
September  and  December  of each year and on the date on which the  Commitments
terminate,  commencing  on the first such date to occur  after the date  hereof;
provided that any Facility Fees accruing after the date on which the Commitments
terminate shall be payable on demand. All Facility Fees shall be computed on the
basis of a year of 360 days and shall be payable  for the actual  number of days
elapsed (including the first day but excluding the last day).

                  (b) For any day on which the outstanding  principal  amount of
Loans and the  "Loans"  under and as defined in the 364-Day  Agreement  shall be
greater than 50% of the sum of the total  Commitments  under this  Agreement and
the total "Commitments" under and as defined in the 364-Day Agreement,  Stilwell
shall pay to the Agent  for the  account  of each  Lender a  utilization  fee (a
"Utilization Fee") equal to the Applicable Percentage on the aggregate amount of
each  Lender's  outstanding  Loans to the  Borrowers  on such day.  The  accrued
Utilization  Fees,  if any,  shall be payable in arrears on the last day of each
March,  June,  September  and  December  and on the date or  dates on which  the
Commitments terminate and any outstanding Loans are repaid. All Utilization Fees
shall be  computed  on the basis of a year of 360 days and shall be payable  for
the actual  number of days elapsed  (including  the first day but  excluding the
last day).

                  (c) Stilwell agrees to pay the Agent, for its own account, the
fees (the "Agent's Fees") at the times and in the amounts agreed by Stilwell and
the Agent in the Fee Letter.

                  (d) All Fees  shall be paid on the dates due,  in  immediately
available funds, to the Agent for distribution, if and as appropriate, among the
Lenders. Once paid, none of the Fees shall be refundable under any circumstances
absent manifest error.

                  SECTION 2.07.  Repayment of Loans;  Evidence of Debt. (a) Each
Borrower hereby unconditionally  promises to pay (i) on the Maturity Date to the
Agent for the account of each Lender the then  unpaid  principal  amount of each
Standby  Loan  made to such  Borrower  and (ii) on the last day of the  Interest
Period  applicable  thereto to the Agent for the  applicable  Lender(s) the then
unpaid principal  amount of each  Competitive Loan made to such Borrower.  Janus
hereby  unconditionally  promises to pay to the Swingline Lender the then unpaid
principal  amount of each Swingline Loan on the earlier of the Maturity Date and
the fifth Business Day after such Swingline Loan is made;  provided that on each
date that a Standby Borrowing or Competitive  Borrowing is made to Janus,  Janus
shall repay all Swingline Loans then outstanding.

                  (b) The  outstanding  principal  balance  of each  Competitive
Loan, each Standby Loan and each Swingline Loan shall be payable on the last day
of the Interest  Period  applicable to such Loan and on

<PAGE>

the Maturity Date. Each  Competitive  Loan, each Standby Loan and each Swingline
Loan shall bear  interest  from the date  thereof on the  outstanding  principal
balance  thereof as set forth in Section  2.08.  Each Lender  shall  maintain in
accordance  with its usual  practice  an  account  or  accounts  evidencing  the
indebtedness  to such Lender  resulting  from each Loan made by such Lender from
time to time,  including the amounts of principal and interest  payable and paid
such Lender  from time to time under this  Agreement.  The Agent shall  maintain
accounts in which it will record (i) the amount of each Loan made hereunder, the
Type of each Loan made and the  Interest  Period  applicable  thereto,  (ii) the
amount of any principal or interest due and payable or to become due and payable
from each  Borrower  to each  Lender  hereunder  and (iii) the amount of any sum
received by the Agent  hereunder  from each  Borrower  and each  Lender's  share
thereof.  The entries made in the accounts  maintained  pursuant to this Section
2.07 shall,  to the extent  permitted by applicable law, be prima facie evidence
of the  existence and amounts of the  obligations  therein  recorded;  provided,
however,  that the failure of any Lender or the Agent to maintain  such accounts
or any error  therein  shall not in any manner (i)  affect  the  obligations  of
either  Borrower to repay the Loans in accordance with their terms or (ii) cause
either  Borrowers'  obligations  to be greater  than they would have been absent
such failure or error.

                  (c) Any Lender may request that Loans made by it to a Borrower
be evidenced by a promissory note of such Borrower. In such event, such Borrower
shall prepare,  execute and deliver to such Lender a promissory  note payable to
the order of such Lender (or, if requested  by such  Lender,  to such Lender and
its  registered  assigns) and in a form approved by the Agent.  Thereafter,  the
Loans evidenced by such promissory note and interest  thereon shall at all times
(including after assignment  pursuant to Section 10.04) be represented by one or
more  promissory  notes in such form  payable  to the  order of the payee  named
therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

                  SECTION 2.08. Interest on Loans. (a) Subject to the provisions
of Section 2.09,  the Loans  comprising  each  Eurodollar  Borrowing  shall bear
interest (computed on the basis of the actual number of days elapsed over a year
of 360  days) at a rate per  annum  equal to (i) in the case of each  Eurodollar
Standby Loan, the Adjusted LIBO Rate for the Interest  Period in effect for such
Borrowing  plus  the  Applicable  Percentage,  and  (ii)  in the  case  of  each
Eurodollar Competitive Loan, the LIBO Rate for the Interest Period in effect for
such  Borrowing  plus the  Margin  offered by the  Lender  making  such Loan and
accepted by the relevant  Borrower  pursuant to Section  2.03.  Interest on each
Eurodollar  Borrowing shall be payable on each applicable Interest Payment Date.
Each  Reference Bank agrees to furnish to the Agent timely  information  for the
purpose of  determining  the LIBO Rate and the Adjusted LIBO Rate. If any one or
more of the  Reference  Banks shall not furnish such timely  information  to the
Agent for the purpose of  determining  any such interest  rate,  the Agent shall
determine such interest rate on the basis of timely information furnished by the
remaining Reference Banks. The Agent shall promptly advise the relevant Borrower
and each Lender, as appropriate, of such determination.

                  (b)  Subject  to the  provisions  of Section  2.09,  the Loans
comprising each ABR Borrowing shall bear interest  (computed on the basis of the
actual  number of days elapsed  over a year of 365 or 366 days,  as the case may
be,) at a rate per annum equal to the Alternate Base Rate.  Interest on each ABR
Borrowing  shall be  payable  on each  applicable  Interest  Payment  Date.  The
Alternate  Base Rate shall be  determined by the Agent,  and such  determination
shall be conclusive  absent manifest error.  The Agent shall promptly advise the
relevant Borrower and each Lender of such determination.

                  (c) Subject to the provisions of Section 2.09, each Fixed Rate
Loan  shall  bear  interest  at a rate per annum  (computed  on the basis of the
actual  number of days  elapsed over a year of 360 days) equal to the fixed rate
of interest  offered by the Lender making such Loan and accepted by the relevant
Borrower  pursuant  to Section  2.03.  Interest on each Fixed Rate Loan shall be
payable  on the  Interest  Payment  Dates  applicable  to such  Loan  except  as
otherwise provided in this Agreement.

                  (d) Subject to the provisions of Section 2.09,  each Swingline
Loan shall bear  interest  (computed  on the basis of the actual  number of days
elapsed  over a year of 365 or 366  days,  as the case may be) at such  rate per
annum as shall be agreed to in writing by Janus and the  Swingline  Lender  with
respect to such Swingline Loan or, if no such agreement shall be made, at a rate
per annum equal to the Alternate  Base Rate.  Interest on each  Swingline Loan
shall be payable on each applicable Interest Payment Date.

                  (e) Upon the  occurrence  and  during the  continuance  of any
Event of Default, (i) each outstanding  Eurodollar Borrowing will automatically,
on the last day of the then existing  Interest Period

<PAGE>

therefor,  convert into an ABR Borrowing if all such Events of Default shall not
have been cured by such time and (ii) the  obligation of the Lenders to make, or
to convert into, Eurodollar Borrowings shall be suspended.

                  SECTION 2.09. Default Interest. Upon the occurrence and during
the continuance of an Event of Default,  each Borrower shall pay interest on (a)
the unpaid principal  amount of each of its Standby  Borrowings and, in the case
of Janus, each Swingline Borrowing,  payable in arrears on the dates referred to
in Section  2.07(b),  at a rate per annum  (computed  on the basis of the actual
number of days  elapsed  over a year of 360  days)  equal at all times to 2% per
annum above the rate per annum  required to be paid on such  Standby  Borrowings
and such  Swingline  Borrowings  pursuant  to Section  2.08(a),  (b) or (d),  as
applicable,  and (b) to the fullest  extent  permitted by law, the amount of any
interest,  fee or other amount payable hereunder that is not paid when due, from
the date such  amount  shall be due  until  such  amount  shall be paid in full,
payable in arrears on the date such amount  shall be paid in full and on demand,
at a rate per annum  (computed on the basis of the actual number of days elapsed
over a year of 360 days)  equal at all times to 2% per annum  above the rate per
annum required to be paid on ABR Borrowings pursuant to Section 2.08(b).

                  SECTION 2.10. Alternate Rate of Interest. In the event, and on
each occasion,  that on the day two Business Days prior to the  commencement  of
any Interest  Period for a Eurodollar  Borrowing the Agent shall have determined
that dollar deposits in the principal amounts of the Eurodollar Loans comprising
such Borrowing are not generally  available in the London interbank  market,  or
that the  rates  at which  such  dollar  deposits  are  being  offered  will not
adequately  and fairly  reflect the cost to any Lender of making or  maintaining
its Eurodollar Loan during such Interest Period, or that reasonable means do not
exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, the Agent shall,
as soon as  practicable  thereafter,  give  written or  telecopy  notice of such
determination  to the  Borrowers  and the  Lenders.  In the  event  of any  such
determination,  until the Agent shall have advised the Borrowers and the Lenders
that the  circumstances  giving  rise to such  notice no longer  exist,  (i) any
request by either Borrower for a Eurodollar  Competitive  Borrowing  pursuant to
Section  2.03  shall be of no force and  effect and shall be denied by the Agent
and (ii) any  request by either  Borrower  for a  Eurodollar  Standby  Borrowing
pursuant to Section  2.04 shall be deemed to be a request for an ABR  Borrowing.
In the event of any such  determination,  the Lenders shall  negotiate  with the
Borrowers,  at their request, as to the interest rate which the Loans comprising
such an ABR Borrowing  shall bear;  provided that such Loans shall bear interest
as provided in Section  2.08(b)  pending the  execution by the Borrowers and the
Lenders of a written  agreement  providing for a different  interest rate.  Each
determination by the Agent hereunder shall be conclusive absent manifest error.

                  SECTION 2.11.  Termination and Reduction of  Commitments.  (a)
Upon at least three Business Days' prior irrevocable  written or telecopy notice
to  the  Agent,  the  Borrowers,  acting  jointly,  may  at any  time  in  whole
permanently terminate,  or from time to time in part permanently reduce, without
penalty but subject to Section 2.15, the Total  Commitment;  provided,  however,
that (i) each partial  reduction of the Total Commitment shall be in an integral
multiple of $1,000,000 and in a minimum principal amount of $10,000,000 and (ii)
no such  termination  or reduction  shall be made if, after giving effect to any
concurrent  prepayment of the Loans in accordance  with Section 2.12, the sum of
the Revolving Credit Exposures plus the aggregate  outstanding  principal amount
of the Competitive Loans would exceed the Total Commitment.

                  (b) Each reduction in the Total Commitment  hereunder shall be
made  (i)  ratably  among  the  Lenders  in  accordance  with  their  respective
Commitments  and (ii)  ratably  between the  Borrowers  in  accordance  with the
percentage  of the  Total  Commitment  available  to each  Borrower  on the date
hereof.  Stilwell shall pay to the Agent for the account of the Lenders,  on the
date of each  termination  or reduction,  the Facility Fees on the amount of the
Commitments  so  terminated  or  reduced   accrued  through  the  date  of  such
termination or reduction.

                  (c)  Unless previously terminated, the Commitments shall
terminate on the Maturity Date.

                  SECTION 2.12.  Prepayment.  (a) Either Borrower shall have the
right at any time and from time to time to prepay,  without  penalty but subject
to Section 2.15, any Standby Borrowing, in whole or in part, upon giving written
or  telecopy  notice  (or  telephone  notice  promptly  confirmed  by written or
telecopy  notice) to the Agent:  (i) before 10:00 a.m.,  New York City time, two
Business Days prior to  prepayment,  in the case of Eurodollar  Loans,  and (ii)
before 10:00 a.m., New York City time, on the

<PAGE>

Business Day of prepayment,  in the case of ABR Loans;  provided,  however, that
each partial  prepayment shall be in an amount which is an integral  multiple of
$1,000,000 and not less than  $5,000,000  or, if less,  the aggregate  principal
amount of such  Standby  Borrowing.  Neither  Borrower  shall  have the right to
prepay any Competitive Borrowing.

                  (b) On  the  date  of  any  termination  or  reduction  of the
Commitments  pursuant to Section 2.11, each Borrower shall pay or prepay so much
of its  respective  Standby  Borrowings  as shall be necessary in order that the
aggregate  principal  amount of the  Competitive  Loans and the total  Revolving
Credit  Exposures  will not exceed the Total  Commitment  after giving effect to
such  termination  or reduction.  In the event of any  termination of all of the
Commitments,  the  Borrowers  shall  repay or  prepay  all of  their  respective
outstanding  Standby  Loans and Janus  shall  repay or  prepay  all  outstanding
Swingline Loans on the date of such termination.

                  (c) Each notice of  prepayment  shall  specify the  prepayment
date and the  principal  amount of each  Borrowing  (or  portion  thereof) to be
prepaid,  shall be irrevocable and shall commit the relevant  Borrower to prepay
such  Borrowing (or portion  thereof) by the amount  stated  therein on the date
stated  therein.  All  prepayments  under this  Section 2.12 shall be subject to
Section 2.15 but shall otherwise be without premium or penalty.  All prepayments
under  this  Section  2.12  shall be  accompanied  by  accrued  interest  on the
principal amount being prepaid to the date of payment.

                  SECTION 2.13. Reserve  Requirements;  Change in Circumstances.
(a)  Notwithstanding  any  other  provision  herein,  if after  the date of this
Agreement any change in applicable law or regulation or in the interpretation or
administration   thereof  by  any  governmental   authority   charged  with  the
interpretation  or  administration  thereof  (whether or not having the force of
law)  shall  change  the basis of  taxation  of  payments  to any  Lender of the
principal of or interest on any Eurodollar  Loan or Fixed Rate Loan made by such
Lender or any Fees or other  amounts  payable  hereunder  (other than changes in
respect  of taxes  imposed  on the  overall  net  income  of such  Lender by the
jurisdiction in which such Lender has its principal or applicable lending office
or by any political  subdivision or taxing authority therein),  or shall impose,
modify or deem applicable any reserve,  special  deposit or similar  requirement
against  assets of,  deposits  with or for the account of or credit  extended by
such Lender  (except any such  reserve  requirement  which is  reflected  in the
Adjusted  LIBO Rate),  or shall  impose on such  Lender or the London  interbank
market any other  condition  affecting this Agreement or any Eurodollar  Loan or
Fixed  Rate Loan made by such  Lender,  and the  result of any of the  foregoing
shall be to increase the direct cost to such Lender of making or maintaining any
Eurodollar  Loan or Fixed Rate Loan or to reduce the amount of any sum  received
or  receivable by such Lender  hereunder or (whether of  principal,  interest or
otherwise) by an amount  reasonably  deemed by such Lender to be material,  then
the relevant Borrower will pay to such Lender upon demand such additional amount
or amounts as will compensate such Lender for such additional  costs incurred or
reduction suffered.  Notwithstanding the foregoing,  no Lender shall be entitled
to request  compensation  under this paragraph  with respect to any  Competitive
Loan if it shall have been aware of the change  giving  rise to such  request at
the time of submission of the Competitive Bid pursuant to which such Competitive
Loan shall have been made.

                  (b) If any Lender shall have determined that the applicability
of any law, rule,  regulation or guideline adopted pursuant to or arising out of
the  July  1988  report  of the  Basle  Committee  on  Banking  Regulations  and
Supervisory Practices entitled "International Convergence of Capital Measurement
and Capital Standards",  or the adoption after the date hereof of any other law,
rule,  regulation or guideline regarding capital adequacy,  or any change in any
of  the  foregoing  or in the  interpretation  or  administration  of any of the
foregoing  by any  governmental  authority,  central bank or  comparable  agency
charged with the interpretation or administration  thereof, or compliance by any
Lender (or any lending  office of such Lender) or any Lender's  holding  company
with any request or directive  regarding capital adequacy (whether or not having
the force of law) of any such authority,  central bank or comparable agency, has
or would have the effect of reducing the rate of return on such Lender's capital
or on the capital of such Lender's holding company,  if any, as a consequence of
this Agreement or the Loans made by such Lender pursuant hereto to a level below
that which such Lender or such Lender's  holding company could have achieved but
for  such   applicability,   adoption,   change  or   compliance   (taking  into
consideration  such Lender's  policies and the policies of such Lender's holding
company with  respect to  capital adequacy) by  an amount  reasonably  deemed by
such Lender to be material,  then from time to time the relevant  Borrower shall
pay to such Lender such  additional  amount or amounts as will  compensate  such
Lender or such Lender's holding company for any such reduction suffered.

<PAGE>

                  (c)  Failure on the part of any Lender to demand  compensation
for any  increased  costs or  reduction  in amounts  received or  receivable  or
reduction in return on capital with respect to any period shall not constitute a
waiver of such Lender's right to demand compensation with respect to such period
or any other period.  The  protection of this Section shall be available to each
Lender   regardless   of  any  possible   contention   of  the   invalidity   or
inapplicability  of the law,  rule,  regulation,  guideline  or other  change or
condition which shall have occurred or been imposed.

                  SECTION  2.14.  Change in Legality.  (a)  Notwithstanding  any
other  provision  herein,  if any  change  in any  law or  regulation  or in the
interpretation   thereof  by  any  governmental   authority   charged  with  the
administration or  interpretation  thereof shall make it unlawful for any Lender
to make or maintain any Eurodollar  Loan or to give effect to its obligations as
contemplated hereby with respect to any Eurodollar Loan, then, by written notice
to the Borrowers and to the Agent, such Lender may:

                  (i) declare that Eurodollar  Loans will not thereafter be made
         by such Lender  hereunder,  whereupon  such  Lender  shall not submit a
         Competitive  Bid in response to a request  for  Eurodollar  Competitive
         Loans and any  request  by either  Borrower  for a  Eurodollar  Standby
         Borrowing shall, as to such Lender only, be deemed a request for an ABR
         Loan unless such declaration shall be subsequently withdrawn; and

                  (ii) require that all outstanding  Eurodollar Loans made by it
         be converted  to ABR Loans,  in which event all such  Eurodollar  Loans
         shall be automatically  converted to ABR Loans as of the effective date
         of such notice as provided in paragraph (b) below.

In the event any Lender shall  exercise its rights under (i) or (ii) above,  and
(x) all payments and  prepayments of principal  which would  otherwise have been
applied to repay the  Eurodollar  Loans that would have been made by such Lender
or the  converted  Eurodollar  Loans of such Lender shall  instead be applied to
repay  the ABR Loans  made by such  Lender  in lieu of,  or  resulting  from the
conversion of, such  Eurodollar  Loans and (y) such Lender shall  negotiate with
the Borrowers,  at their  request,  as to the interest rate which such ABR Loans
shall bear;  provided that such Loans shall bear interest as provided in Section
2.08(b)  pending the  execution  by the  Borrowers  and such Lender of a written
agreement providing for a different interest rate.

                  (b) For  purposes  of  this  Section  2.14,  a  notice  to the
relevant  Borrower by any Lender shall be effective as to each Eurodollar  Loan,
if lawful,  on the last day of the Interest Period currently  applicable to such
Eurodollar  Loan;  in all other cases such notice shall be effective on the date
of receipt by the relevant Borrower.

                  SECTION 2.15.  Indemnity.  Each Borrower shall  indemnify each
Lender  against any loss or expense  which such Lender may sustain or incur as a
consequence  of (a) any  failure by such  Borrower to fulfill on the date of any
borrowing  hereunder the applicable  conditions set forth in Article IV, (b) any
failure by such  Borrower to borrow or to refinance or continue any Loan of such
Borrower  hereunder,  for any reason other than a default by such Lender,  after
irrevocable notice of such borrowing, refinancing or continuation has been given
pursuant to Section 2.03 or 2.04, (c) any payment, prepayment or conversion of a
Eurodollar  Loan or Fixed  Rate Loan  required  by any other  provision  of this
Agreement or otherwise  made or deemed made on a date other than the last day of
the Interest Period applicable thereto, (d) any default in payment or prepayment
by such  Borrower of the  principal  amount of any Loan made to such Borrower or
any part thereof or interest  accrued  thereon,  as and when due and payable (at
the due date thereof, whether by scheduled maturity,  acceleration,  irrevocable
notice of prepayment or otherwise) or (e) the occurrence of any Event of Default
caused by such  Borrower,  including,  in each such case, any loss or reasonable
expense  sustained or incurred or to be sustained or incurred in  liquidating or
employing  deposits from third parties  acquired to effect or maintain such Loan
or any part  thereof  as a  Eurodollar  Loan or Fixed  Rate  Loan.  Such loss or
reasonable  expense  shall  include an amount  equal to the  excess,  if any, as
reasonably determined by such Lender, of (i) its cost of obtaining the funds for
the Loan being  paid,  prepaid,  converted  or not  borrowed  (assumed to be the
Adjusted  LIBO  Rate or, in the case of a Fixed  Rate  Loan,  the fixed  rate of
interest  applicable  thereto)  for the  period  from the date of such  payment,
prepayment or failure to borrow to the last day of the Interest  Period for such
Loan (or, in the case of a failure to borrow,  the Interest Period for such Loan
which would have  commenced on the date of such failure) over (ii) the amount of
interest  (as  reasonably  determined  by such Lender) that would be realized by
such Lender in reemploying  the funds so paid,  prepaid or not borrowed for such
period or Interest Period, as the case may be.

<PAGE>

                  SECTION 2.16.  Pro Rata  Treatment.  Except as required  under
Section 2.14, each Standby Borrowing, each payment or prepayment of principal of
any Standby  Borrowing,  each  payment of interest  on the Standby  Loans,  each
payment of the Facility Fees, each payment of the Utilization Fees insofar as it
relates to Standby Loans, each reduction of the Commitments and each refinancing
of any Borrowing  with a Standby  Borrowing of any Type,  shall be allocated pro
rata among the Lenders in accordance with their  respective  Commitments (or, if
such Commitments  shall have expired or been terminated,  in accordance with the
respective  principal amounts of their outstanding  Standby Loans). Each payment
of principal of any  Competitive  Borrowing and each payment of the  Utilization
Fees  insofar as it relates to  Competitive  Loans shall be  allocated  pro rata
among  the  Lenders  participating  in such  Borrowing  in  accordance  with the
respective  principal amounts of their outstanding  Competitive Loans comprising
such Borrowing.  Each payment of interest on any Competitive  Borrowing shall be
allocated  pro  rata  among  the  Lenders  participating  in such  Borrowing  in
accordance  with the respective  amounts of accrued and unpaid interest on their
outstanding  Competitive  Loans  comprising  such  Borrowing.  For  purposes  of
determining  the  available  Commitments  of  the  Lenders  at  any  time,  each
outstanding  Competitive  Borrowing and each outstanding Swingline Loan shall be
deemed to have utilized the Commitments of the Lenders  (including those Lenders
which shall not have made Loans as part of such Competitive  Borrowing and those
Lenders that shall not have made  Swingline  Loans) pro rata in accordance  with
such respective Commitments.  Each Lender agrees that in computing such Lender's
portion of any Borrowing to be made hereunder, the Agent may, in its discretion,
round each  Lender's  percentage  of such  Borrowing to the next higher or lower
whole dollar amount.

                  SECTION 2.17.  Sharing of Setoffs.  Each Lender agrees that if
it  shall,  through  the  exercise  of a  right  of  banker's  lien,  setoff  or
counterclaim  against  either  Borrower,  or pursuant  to a secured  claim under
Section 506 of Title 11 of the United States Code or other  security or interest
arising from, or in lieu of, such secured  claim,  received by such Lender under
any applicable bankruptcy,  insolvency or other similar law or otherwise,  or by
any other means,  obtain payment  (voluntary or  involuntary)  in respect of any
Standby Loan or Loans or  participations in Swingline Loans as a result of which
the unpaid principal portion of the Standby Loans or participations in Swingline
Loans shall be  proportionately  less than the unpaid  principal  portion of the
Standby Loans or participations in Swingline Loans of any other Lender, it shall
be deemed simultaneously to have purchased from such other Lender at face value,
and  shall  promptly  pay to  such  other  Lender  the  purchase  price  for,  a
participation in the Standby Loans and participations in Swingline Loans of such
other Lender, so that the aggregate unpaid principal amount of the Standby Loans
and  participations  in the Standby Loans and  participations in Swingline Loans
held by each Lender  shall be in the same  proportion  to the  aggregate  unpaid
principal amount of all Standby Loans and participations in Swingline Loans then
outstanding as the principal amount of its Standby Loans and  participations  in
Swingline Loans prior to such exercise of banker's lien,  setoff or counterclaim
or  other  event  was  to  the  principal   amount  of  all  Standby  Loans  and
participations in Swingline Loans outstanding prior to such exercise of banker's
lien,  setoff or counterclaim or other event;  provided,  however,  that, if any
such purchase or purchases or adjustments shall be made pursuant to this Section
2.17 and the payment  giving rise thereto shall  thereafter  be recovered,  such
purchase or  purchases or  adjustments  shall be rescinded to the extent of such
recovery  and the  purchase  price or  prices  or  adjustment  restored  without
interest.  Each Borrower  expressly  consents to the foregoing  arrangements and
agrees  that any  Lender  holding  a  participation  pursuant  to the  foregoing
arrangements deemed to have been so purchased may exercise any and all rights of
banker's lien,  setoff or counterclaim  with respect to any and all moneys owing
by such Borrower to such Lender by reason thereof as fully as if such Lender had
made a Standby Loan or Swingline Loan directly to such Borrower in the amount of
such participation.

                  SECTION  2.18.  Payments.  (a) Each  Borrower  shall make each
payment  (including  principal  of or interest on any  Borrowing  or any Fees or
other amounts but excluding  principal  and interest on Swingline  Loans,  which
shall be paid  directly to the  Swingline  Lender  except as provided in Section
2.22(c))  hereunder  and under any other  Loan  Document  not later  than  12:00
(noon),  New York City time, on the date when due in dollars to the Agent at its
offices at Two Penns Way, Suite 200, New Castle,  DE 19720,  ABA # 021 00 00 89,
Account No. 36852248, Attention: Brian Maxwell, in immediately available funds.

                  (b) Whenever any payment  (including  principal of or interest
on any Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document  shall  become due, or otherwise  would  occur,  on a day that is not a
Business Day, such payment may be made on the next succeeding  Business Day, and
such  extension  of time shall in such case be  included in the  computation  of
interest or Fees, if applicable.

<PAGE>

                  SECTION  2.19.  Taxes.  (a)  Any and all  payments  by  either
Borrower  hereunder  shall be made,  in accordance  with Section 2.18,  free and
clear of and without deduction for any and all present or future taxes,  levies,
imposts, deductions,  charges or withholdings,  and all liabilities with respect
thereto,  excluding  taxes  imposed  on the  Agent's  or any  Lender's  (or  any
transferee's or assignee's,  including a participation holder's (any such entity
a  "Transferee"))  net income and  franchise  taxes  imposed on the Agent or any
Lender (or Transferee) by the United States or any  jurisdiction  under the laws
of which it is organized or in which its applicable lending office is located or
any political subdivision thereof (all such nonexcluded taxes, levies,  imposts,
deductions,  charges, withholdings and liabilities being hereinafter referred to
as  "Taxes").  If either  Borrower  shall be required by law to deduct any Taxes
from or in respect of any sum payable by such Borrower  hereunder to the Lenders
(or any Transferee) or the Agent,  (i) the sum payable shall be increased by the
amount  necessary  so that  after  making  all  required  deductions  (including
deductions  applicable to additional  sums payable under this Section 2.19) such
Lender (or Transferee) or the Agent (as the case may be) shall receive an amount
equal to the sum it would have received had no such  deductions  been made, (ii)
such Borrower  shall make such  deductions and (iii) such Borrower shall pay the
full amount  deducted to the relevant  taxing  authority  or other  Governmental
Authority in accordance with applicable law.

                  (b) In addition,  each  Borrower  agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar  levies  which  arise from any  payment  made  hereunder  or from the
execution,  delivery or  registration  of, or  otherwise  with  respect to, this
Agreement or any other Loan Document (hereinafter referred to as "Other Taxes").

                  (c) Each Borrower will indemnify  each Lender (or  Transferee)
and the Agent for the full amount of Taxes and Other Taxes  (including any Taxes
or Other Taxes imposed by any jurisdiction on amounts payable under this Section
2.19) paid by such Lender (or  Transferee) or the Agent, as the case may be, and
any liability (including penalties,  interest and expenses) arising therefrom or
with respect thereto, whether or not such Taxes or Other Taxes were correctly or
legally  asserted  by  the  relevant  taxing  authority  or  other  Governmental
Authority.  Such indemnification shall be made within 30 days after the date any
Lender (or  Transferee)  or the Agent,  as the case may be, makes written demand
therefor. If a Lender (or Transferee) or the Agent shall become aware that it is
entitled  to  receive  a refund in  respect  of Taxes or Other  Taxes,  it shall
promptly  notify the relevant  Borrower of the  availability  of such refund and
shall,  within 30 days after  receipt of a request by such  Borrower,  apply for
such refund at such  Borrower's  expense.  If any Lender (or  Transferee) or the
Agent  receives a refund in  respect of any Taxes or Other  Taxes for which such
Lender (or  Transferee) or the Agent has received  payment from either  Borrower
hereunder  it shall  promptly  notify the  relevant  Borrower of such refund and
shall,  within 30 days after  receipt of a request by such Borrower (or promptly
upon  receipt,  if such  Borrower  has  requested  application  for such  refund
pursuant hereto),  repay such refund to such Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by such Borrower under this
Section  2.19 with  respect  to the  Taxes or Other  Taxes  giving  rise to such
refund), net of all out-of-pocket expenses of such Lender (or Transferee) or the
Agent and without  interest;  provided that such  Borrower,  upon the request of
such Lender (or  Transferee)  or the Agent,  agrees to return such refund  (plus
penalties,  interest or other  charges) to such  Lender (or  Transferee)  or the
Agent in the event such Lender (or Transferee) or the Agent is required to repay
such refund.

                  (d) Within 30 days  after the date of any  payment of Taxes or
Other Taxes withheld by either  Borrower in respect of any payment to any Lender
(or Transferee) or the Agent,  the relevant  Borrower will furnish to the Agent,
at its address referred to in Section 10.01, the original or a certified copy of
a receipt issued by the appropriate  Governmental  Authority  evidencing payment
thereof.

                  (e) Without  prejudice to the survival of any other  agreement
contained herein, the agreements and obligations  contained in this Section 2.19
shall  survive the payment in full of the principal of and interest on all Loans
made hereunder.

                  (f) Each Lender (or Transferee) which is organized outside the
United  States  shall  deliver to the  Borrowers  two copies of either  Internal
Revenue  Service  Form W-8 BEN or Form W-8 ECI,  or, in the case of a Lender (or
Transferee)  claiming exemption from U.S. Federal  withholding tax under Section
871(h) or 881(c) of the Code with respect to payments of "portfolio interest", a
Form W-8, or any subsequent versions thereof or successors thereto (and, if such
Non-U.S.  Lender  delivers  a Form W-8,  a  certificate  representing  that such
Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Code, is not
a  10-percent  shareholder  (within the meaning of Section  871(h)(3)(B)  of the
Code) of the Borrowers and is not a controlled  foreign  corporation  related to
the Borrowers  (within the meaning of

<PAGE>

Section  864(d)(4) of the Code))  properly  completed  and duly executed by such
Lender (or Transferee) establishing that such payment is totally exempt from, or
is eligible for a reduced rate of, United States Federal  withholding  tax. Such
forms shall be delivered by each Lender  organized  outside the United States on
or before the date it becomes a party to this  Agreement  (or,  in the case of a
Transferee  that  is  a  participation  holder,  on  or  before  the  date  such
participation holder becomes a Transferee  hereunder) and on or before the date,
if any,  such Lender  changes its  applicable  lending  office by  designating a
different  lending  office (a "New Lending  Office").  In addition,  each Lender
organized  outside the United States shall deliver such forms  promptly upon the
obsolescence  or  invalidity  of any form  previously  delivered by such Lender.
Notwithstanding  any other provision of this Section 2.19(f), a Lender organized
outside the United  States shall not be required to deliver any form pursuant to
this  Section  2.19(f)  that it is not  legally  able  to  deliver.  Unless  the
Borrowers and the Agent have received forms or other  documents  satisfactory to
them  indicating  that  payments  hereunder  are not  subject  to United  States
withholding  tax or are subject to such tax at a rate  reduced by an  applicable
tax treaty,  the Borrowers or the Agent shall  withhold taxes from such payments
at the  applicable  statutory  rate in the case of payments to or for any Lender
(or Transferee)  organized  under the laws of a jurisdiction  outside the United
States.

                  (g) Neither  Borrower  shall be required to pay any additional
amounts to any  Lender (or  Transferee)  in  respect  of United  States  Federal
withholding  tax  pursuant  to  paragraph  (a)  above  to the  extent  that  the
obligation  to pay such  additional  amounts (1) existed on the date such Lender
(or Transferee) became a party to this Agreement (or in the case of a Transferee
that is a participation  holder, on the date such participation  holder became a
Transferee  hereunder)  or (2) would not have  arisen  but for a failure by such
Lender (or  Transferee)  to comply with the  provisions  of paragraph  (f) above
unless in the case of this clause (2) such failure  results from (i) a change in
applicable  law,  regulation  or  official   interpretation   thereof,  (ii)  an
amendment,  modification  or revocation of any applicable tax treaty or a change
in official  position  regarding the application or interpretation  thereof,  in
each  case  after  the  date  of the  first  Borrowing  (and,  in the  case of a
Transferee,  after the date of assignment  or transfer) or (iii) an  assignment,
participation,  transfer  or  designation  made at the  request of the  relevant
Borrower;  provided,  however,  the relevant  Borrower  shall be required to pay
those  amounts  to any  Lender  (or  Transferee)  that  it was  required  to pay
hereunder prior to the failure of such Lender (or Transferee) to comply with the
provisions of such paragraph (f).

                  (h) Any Lender (or Transferee) claiming any additional amounts
payable pursuant to this Section 2.19 shall use reasonable  efforts  (consistent
with legal and  regulatory  restrictions)  to file any  certificate  or document
requested  by  the  relevant  Borrower  or to  change  the  jurisdiction  of its
applicable  lending  office if the making of such a filing or change would avoid
the need for or reduce  the  amount  of any such  additional  amounts  which may
thereafter  accrue and would not, in the sole  determination of such Lender,  be
otherwise disadvantageous to such Lender (or Transferee).

                  SECTION 2.20.  Termination or Assignment of Commitments  Under
Certain Circumstances.  In the event that any Lender shall fail to pay the Agent
amounts due it pursuant to Section  2.05(i) or any Lender shall have delivered a
notice or  certificate  pursuant  to  Section  2.13 or Section  2.14,  or either
Borrower  shall be required  to make  additional  payments  to any Lender  under
Section  2.19 and  provided  that no  Default  or Event of  Default  shall  have
occurred and be  continuing,  the Borrowers  shall have the right,  at their own
expense,  upon  notice to such Lender and the Agent,  to require  such Lender to
transfer  and assign  without  recourse (in  accordance  with and subject to the
restrictions  contained  in  Section  10.04)  all  its  interests,   rights  and
obligations  under this Agreement to another  financial  institution which shall
assume such  obligations;  provided that (i) no such  termination  or assignment
shall  conflict with any law,  rule or  regulation or order of any  Governmental
Authority,  (ii) the Borrowers or the assignee, as the case may be, shall pay to
the  affected  Lender  in  immediately  available  funds  on the  date  of  such
termination or assignment  the principal of and interest  accrued to the date of
payment  on the  Loans  (other  than  Competitive  Loans and  participations  in
Swingline  Loans) made by it  hereunder  and all other  amounts  accrued for its
account or owed to it hereunder,  (iii) if the replacement financial institution
is not a Lender,  the Agent shall have given its prior  written  consent to such
replacement  and the Borrowers or such financial  institution  shall have paid a
processing and recordation fee of $3500 to the Agent and (iv) if a Commitment is
being  assigned,  the Swingline  Lender shall have  consented in writing to such
assignment (which consent will not be unreasonably withheld).

                  SECTION  2.21.   Lending  Offices  and  Lender   Certificates;
Survival of  Indemnity.  To the extent  reasonably  possible,  each Lender shall
designate an alternate  lending office with respect to its Eurodollar  Loans and
Fixed Rate Loans to reduce any liability of either Borrower to such Lender under
Section 2.13 or to avoid the  unavailability  of Eurodollar  Loans under Section
2.10 or 2.14, so long as such

<PAGE>

designation is not disadvantageous to such Lender. A good faith certificate of a
Lender  setting forth a reasonable  basis of  computation  and allocation of the
amount due under Section 2.13 or 2.15 shall be final,  conclusive and binding on
the relevant  Borrower in the absence of manifest error. The amount specified in
any such  certificate  shall be payable on demand after receipt by such Borrower
of such  certificate.  The  obligations of each Borrower under Sections 2.13 and
2.15 shall  survive the payment of all amounts due under any Loan  Document  and
the termination of this Agreement.

                  SECTION 2.22.  Swingline  Loans.  (a) Subject to the terms and
conditions set forth herein, the Swingline Lender agrees to make Swingline Loans
to Janus from time to time on and after the date hereof and until the earlier of
the  Maturity  Date  and the  termination  of the  Commitments  in an  aggregate
principal  amount  at any  time  outstanding  that  will not  result  in (i) the
aggregate  principal  amount  of  all  outstanding   Swingline  Loans  exceeding
$75,000,000,  (ii) the sum of the  total  Revolving  Credit  Exposures  plus the
aggregate principal amount of outstanding  Competitive Loans exceeding the Total
Commitment  then in  effect  or (iii)  the  aggregate  principal  amount  of all
outstanding  Loans  made to  Janus  exceeding  $100,000,000;  provided  that the
Swingline  Lender shall not be required to make a Swingline Loan to refinance an
outstanding  Swingline  Loan.  Each Swingline Loan shall bear interest at a rate
described in Section  2.08(d).  Within the  foregoing  limits and subject to the
terms and  conditions  set forth  herein,  Janus may borrow,  repay and reborrow
Swingline Loans.

                  (b) To request a Swingline Loan,  Janus shall notify the Agent
of such request by telephone (confirmed by telecopy),  not later than 3:00 p.m.,
New York City time, on the day of a proposed  Swingline  Loan.  Each such notice
shall be irrevocable  and shall specify (i) the requested date of such Swingline
Loan (which shall be a Business Day),  (ii) the Interest  Period with respect to
the requested  Swingline Loan (which may not end after the Maturity Date), (iii)
the  amount  of the  requested  Swingline  Loan  and (iv)  the  maturity  of the
requested  Swingline Loan (which shall be no later than five Business Days after
the date of such Swingline  Loan).  The Agent will promptly advise the Swingline
Lender of any such notice received from Janus.  The Swingline  Lender shall make
each Swingline Loan available to Janus by wire transfer of immediately available
funds to account  number  2020016039  maintained  by Janus with Wells Fargo Bank
(ABA  #102000076),  6:00 p.m., New York City time, on the requested date of such
Swingline Loan.  Janus shall have the right at any time and from time to time to
prepay any Swingline  Loan, in whole or in part, upon giving written or telecopy
notice (or telephone notice promptly confirmed by written or telecopy notice) to
the Swingline  Lender and to the Agent before 12:00  (noon),  (New York time) on
the date of  prepayment  at the  Swingline  Lender's  address for notices in the
Administrative Questionnaire.

                  (c) The  Swingline  Lender may by written  notice given to the
Agent not later than 10:00 a.m., New York City time, on any Business Day require
the Lenders to acquire  participations  on such Business Day in all or a portion
of the  Swingline  Loans  outstanding.  Such notice shall  specify the aggregate
amount of Swingline  Loans in which  Lenders  will  participate.  Promptly  upon
receipt of such  notice,  the Agent  will give  notice  thereof to each  Lender,
specifying in such notice such Lender's  percentage  of such  Swingline  Loan or
Loans (which shall be equal to such Lender's Pro Rata  Percentage).  Each Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as provided
above,  to pay to the Agent,  for the  account  of the  Swingline  Lender,  such
Lender's  Pro Rata  Percentage  of such  Swingline  Loan or Loans.  Each  Lender
acknowledges  and  agrees  that its  obligation  to  acquire  participations  in
Swingline  Loans  pursuant to this paragraph is absolute and  unconditional  and
shall not be affected by any circumstance  whatsoever,  including the occurrence
and  continuance of an Event of Default or a Default or reduction or termination
of the Total  Commitment,  and that each such payment  shall be made without any
offset, abatement, withholding or reduction whatsoever. Each Lender shall comply
with its  obligation  under  this  paragraph  by wire  transfer  of  immediately
available  funds, in the same manner as provided in Section 2.02(c) with respect
to Loans made by such Lender (and Section 2.02(c) shall apply, mutatis mutandis,
to the payment obligations of the Lenders),  and the Agent shall promptly pay to
the Swingline  Lender the amounts so received by it from the Lenders.  The Agent
shall notify Janus of any participations in any Swingline Loan acquired pursuant
to this  paragraph,  and  thereafter  payments in respect of such Swingline Loan
shall be made to the Agent and not to the Swingline Lender. Any amounts received
by the  Swingline  Lender  from  Janus  (or  other  party on behalf of Janus) in
respect  of a  Swingline  Loan  after  receipt  by the  Swingline  Lender of the
proceeds of a sale of  participations  therein shall be promptly remitted to the
Agent; any such amounts received by the Agent shall be promptly  remitted by the
Agent to the  Lenders  that  shall  have made their  payments  pursuant  to this
paragraph  and to the  Swingline  Lender,  as their  interests  may appear.  The
purchase of  participations in a Swingline Loan pursuant to this paragraph shall
not relieve Janus of any default in the payment thereof.

<PAGE>

                  SECTION 2.23. Increase in Total Commitment.  (a) The Borrowers
may,  at any time but in any event not more  than once  during  the term of this
Agreement,  by notice to the Agent,  request  that the  aggregate  amount of the
Total  Commitment be increased by a maximum  principal  amount of $50,000,000 in
integral multiples of $10,000,000 (each a "Commitment Increase") to be effective
as of a date that is at least 90 days prior to the scheduled  Maturity Date then
in effect as specified in the related  notice to the Agent;  provided,  however,
that (i) in no event shall the aggregate amount of the Commitments  after giving
effect to any such  increase  pursuant to this  Section  2.23 at any time exceed
$350,000,000, (ii) a Commitment Increase shall be allocated pro rata between the
Borrowers in accordance with the percentage of the Total Commitment available to
each  Borrower  on the date  hereof and (iii) on the date of any  request by the
Borrowers for a Commitment  Increase and on the related  Increase  Date, (x) the
applicable  conditions  set forth in Article IV shall be  satisfied  and (y) the
Leverage Ratio shall be less than or equal to 1.50 to 1.00.

                  (b) The Agent shall  promptly  notify the Lenders of a request
by the Borrowers for a Commitment  Increase,  which notice shall include (i) the
proposed  amount  of such  requested  Commitment  Increase,  (ii)  the  proposed
effective  date of the  Commitment  Increase and (iii) the date by which Lenders
wishing to participate in the Commitment  Increase must commit to an increase in
the amount of their respective  Commitments (the "Commitment  Date") , and shall
offer each Lender the  opportunity  to increase its  Commitment  by its Pro Rata
Percentage of the proposed increased amount. Each Lender shall, by notice to the
Borrowers  and the  Agent  given  not more  than 30 days  after  the date of the
Borrower's  notice,  either agree to increase its Commitment by all or a portion
of the offered amount (each Lender so agreeing being an "Increasing  Lender") or
decline to increase its Commitment  (and any Lender that does not deliver such a
notice  within  such  period  of 30 days  shall be deemed  to have  declined  to
increase its  Commitment)  (each Lender so declining or deemed to have  declined
being a "Non-Increasing  Lender").  In the event that, on the 30th day after the
Borrowers  shall have delivered a notice  pursuant to the first sentence of this
paragraph,  the Lenders shall have agreed pursuant to the preceding  sentence to
increase their  Commitments by an aggregate amount less than the increase in the
total Commitments  requested by the Borrowers,  the Agent may arrange for one or
more banks or other  financial  institutions  (any such bank or other  financial
institution  referred  to in this  paragraph  (b) being  called  an  "Augmenting
Lender"),  which may include any Lender, to extend Commitments or increase their
existing  Commitments in an aggregate amount equal to the  unsubscribed  amount,
provided that each Augmenting  Lender, if not already a Lender hereunder,  shall
be subject to the approval of the Borrowers,  the Agent and the Swingline Lender
(which approvals shall not be unreasonably  withheld) and each Augmenting Lender
shall execute all such  documentation as the Agent shall specify to evidence its
Commitment and its status as a Lender  hereunder.  Increases and new Commitments
created  pursuant to this  paragraph (b) shall become  effective on the Increase
Effective Date (as  hereinafter  defined).  Notwithstanding  the  foregoing,  no
increase in the Total  Commitment  (or in the  Commitment  of any Lender)  shall
become effective under this paragraph unless,  (i) on the date of such increase,
the conditions set forth in paragraphs (b), (c) and (d) of Section 4.01 shall be
satisfied (with all references in such paragraphs to a Borrowing being deemed to
be references to such  increase) and the Agent shall have received a certificate
to that  effect  dated  such date and  executed  by  Financial  Officers  of the
Borrowers,  (ii) the Agent shall have received (with sufficient  copies for each
of the Lenders) documents  consistent with those delivered on the Effective Date
under  paragraphs  (a) and (c) of  Section  4.02 as to the  corporate  power and
authority of the  Borrowers  to borrow  hereunder  after  giving  effect to such
increase and (iii)  following any such increase  pursuant to this Section,  each
Lender  shall  have a  Commitment  in an amount of  $10,000,000  or an  integral
multiple of $1,000,000 in excess thereof.

                  (c) On the effective date (the "Increase  Effective  Date") of
any  increase  in  the  total  Commitments  pursuant  to  Section  2.23(b)  (the
"Commitment Increase"),  (i) the aggregate principal amount of the Standby Loans
outstanding  (the  "Initial  Loans")  immediately  prior to giving effect to the
Commitment  Increase on the Increase  Effective Date shall be deemed to be paid,
(ii) each Increasing  Lender and each  Augmenting  Lender that shall have been a
Lender prior to the Commitment Increase shall pay to the Agent in same day funds
an amount equal to the  difference  between (A) the product of (1) such Lender's
Pro Rata Percentage  (calculated after giving effect to the Commitment Increase)
multiplied  by (2) the  amount  of the  Subsequent  Borrowings  (as  hereinafter
defined)  and  (B)  the  product  of  (1)  such  Lender's  Pro  Rata  Percentage
(calculated without giving effect to the Commitment  Increase) multiplied by (2)
the amount of the Initial  Loans,  (iii) each  Augmenting  Lender that shall not
have been a Lender prior to the  Commitment  Increase shall pay to Agent in same
day funds an amount  equal to the product of (1) such  Augmenting  Lender's  Pro
Rate  Percentage  (calculated  after giving effect to the  Commitment  Increase)
multiplied by (2) the amount of the  Subsequent  Borrowings,  and (iv) after the
Agent  receives the funds  specified in clauses (ii) and (iii) above,  the Agent
shall pay to each Non-Increasing  Lender the portion of such funds that is equal
to the difference between (A) the product of (1) such Non-Increasing Lender's
Pro

<PAGE>

Rata Percentage  (calculated  without giving effect to the Commitment  Increase)
multiplied  by (2) the amount of the Initial  Loans,  and (B) the product of (1)
such Non-Increasing Lender's Pro Rata Percentage (calculated after giving effect
to the  Commitment  Increase)  multiplied  by (2) the  amount of the  Subsequent
Borrowings,  (v)  after  the  effectiveness  of  the  Commitment  Increase,  the
Borrowers shall be deemed to have made new Standby  Borrowings (the  "Subsequent
Borrowings") in an aggregate  principal amount equal to the aggregate  principal
amount  of the  Initial  Loans and of the  types  and for the  Interest  Periods
specified  in a Borrowing  Request  delivered  to the Agent in  accordance  with
Section 2.04, (vi) each  Non-Increasing  Lender, each Increasing Lender and each
Augmenting  Lender  shall be  deemed  to hold its Pro  Rata  Percentage  of each
Subsequent Borrowing (calculated after giving effect to the Commitment Increase)
and (vii) the Borrowers shall pay each Increasing Lender and each Non-Increasing
Lender any and all  accrued  but unpaid  interest  on their  respective  Initial
Loans.  The deemed payments made pursuant to clause (i) above in respect of each
Eurodollar Loan shall be subject to indemnification by the Borrowers pursuant to
the provisions of Section 2.15 if the Increase  Effective Date occurs other than
on the last day of the Interest Period relating thereto.

ARTICLE III.  REPRESENTATIONS AND WARRANTIES

                  Each  Borrower  represents  and  warrants as to itself and its
subsidiaries to each of the Lenders that:

                  SECTION 3.01. Corporate Existence and Standing.  Such Borrower
and  each  of its  subsidiaries  is a  corporation  duly  incorporated,  validly
existing  and  in  good  standing  under  the  laws  of  its   jurisdiction   of
incorporation  and has all  requisite  authority to conduct its business in each
jurisdiction  in which its business is conducted where the failure to so qualify
would have a material adverse effect on such Borrower or such subsidiary.

                  SECTION 3.02.  Authorization  and Validity.  Such Borrower has
the  corporate  power and  authority  and legal right to execute and deliver the
Loan Documents to which it is a party and to perform its obligations  thereunder
(collectively,  the "Transactions").  The Transactions have been duly authorized
by proper corporate proceedings,  and the Loan Documents constitute legal, valid
and binding  obligations of such Borrower  enforceable  against such Borrower in
accordance  with  their  terms,  except  as  enforceability  may be  limited  by
bankruptcy,  insolvency, moratorium or similar laws affecting the enforcement of
creditors' rights generally.

                  SECTION 3.03. No Conflict;  Governmental  Consent. None of the
Transactions  will violate any law, rule,  regulation,  order,  writ,  judgment,
injunction,  decree or award binding on such Borrower or any of its subsidiaries
or such  Borrower's  or any of its  subsidiaries'  articles  or  certificate  of
incorporation  or by-laws or the  provisions  of any  indenture,  instrument  or
agreement to which such Borrower or any subsidiary is a party or is subject,  or
by which it, or its property,  is bound,  or conflict  therewith or constitute a
default  thereunder,  or result in the creation or imposition of any Lien in, of
or on the property of such Borrower or any  subsidiary  pursuant to the terms of
any such  indenture,  instrument  or  agreement.  No order,  consent,  approval,
license,  authorization,  or validation of, or filing, recording or registration
with, or exemption  by, any  governmental  or public body or  authority,  or any
subdivision thereof, is required to authorize, or is required in connection with
the execution,  delivery and performance of, or the legality,  validity, binding
effect or enforceability of, any of the Loan Documents.

                  SECTION 3.04.  Compliance with Laws;  Environmental and Safety
Matters.  (a)  Such  Borrower  and  each of its  subsidiaries  has,  to the best
knowledge and belief of such  Borrower,  complied in all material  respects with
all applicable  statutes,  rules,  regulations,  orders and  restrictions of any
domestic or foreign government or any instrumentality or agency thereof,  having
jurisdiction over the conduct of their respective businesses or the ownership of
their respective properties.

                  (b) Such  Borrower  and each  subsidiary  has  complied in all
material respects with all Federal, state, local and other statutes, ordinances,
orders,  judgments,  rulings and regulations relating to environmental pollution
or to  environmental  regulation  or  control or to  employee  health or safety.
Neither such  Borrower nor any  subsidiary  has received  notice of any material
failure so to comply which could  reasonably be expected to result in a Material
Adverse Effect.  Such Borrower's and the subsidiaries'  facilities do not manage
any  hazardous  wastes,   hazardous  substances,   hazardous  materials,   toxic
substances, toxic pollutants or substances similarly denominated, as those terms
or similar  terms are used in the Resource  Conservation  and Recovery  Act, the
Comprehensive  Environmental  Response Compensation

<PAGE>

and Liability Act, the Toxic Substance Control Act, the Clean Air Act, the Clean
Water Act or any other  applicable  law relating to  environmental  pollution or
employee health and safety,  in violation in any material  respect of any law or
any  regulations  promulgated  pursuant  thereto.  Such  Borrower is aware of no
events,   conditions  or  circumstances  involving  environmental  pollution  or
contamination  or employee health or safety that could reasonably be expected to
result in liability on the part of such Borrower or any  subsidiary  which could
reasonably be expected to result in a Material Adverse Effect.

                  SECTION 3.05.  Financial  Statements.  Stilwell has heretofore
furnished to the Lenders its (a)  consolidated  balance  sheets,  statements  of
income,  changes in stockholders' equity and cash flows as of and for the fiscal
year ended  December  31,  1999,  audited by and  accompanied  by the opinion of
PricewaterhouseCoopers,  independent  public  accountants  and (b) its unaudited
consolidated  balance  sheets and  statements of income as of and for the fiscal
quarter and the  six-month  period ended June 30,  2000,  certified by its chief
Financial  Officer.  Such  financial  statements  present  fairly the  financial
condition  and  results  of   operations   of  Stilwell  and  its   Consolidated
Subsidiaries as of such dates and for such periods.  Such balance sheets and the
notes  thereto  disclose  all material  liabilities,  direct or  contingent,  of
Stilwell  and  the  Consolidated  Subsidiaries  as of  the  dates  thereof.  The
financial statements referred to in clause (a) above were prepared in accordance
with GAAP applied on a consistent basis, and the financial  statements  referred
to in clause  (b) above  were  prepared  in  accordance  with GAAP  applied on a
consistent basis subject to year-end adjustments.

                  SECTION 3.06. No Material Adverse Change.  No material adverse
change in the business, properties, financial condition, prospects or results of
operations of such Borrower and its consolidated subsidiaries has occurred since
December 31, 1999.  It is  understood  that  volatility  in the capital  markets
generally will not in and of itself be deemed to be a material adverse change.

                  SECTION 3.07. Subsidiaries. Schedule 3.07 contains an accurate
list of all of (a) the significant  joint ventures and (b)  subsidiaries of such
Borrower which have any assets or  operations,  in each case on the date hereof,
setting forth their respective  jurisdictions of organization and the percentage
of  their  respective   ownership  interest  held  by  such  Borrower  or  other
subsidiaries.

                  SECTION 3.08. Litigation;  Contingent  Obligations.  Except as
set forth in Schedule  3.08 or as disclosed in  Stilwell's  Quarterly  Report on
Form 10-Q  dated  September  30,  2000 filed with the  Securities  and  Exchange
Commission, (a) there is no litigation, arbitration, governmental investigation,
proceeding  or inquiry  pending or, to the  knowledge of any of their  officers,
threatened against or affecting such Borrower or any consolidated  subsidiary of
such  Borrower  that (i) is  required  to be  disclosed  in any filing  with the
Securities and Exchange  Commission  pursuant to the Securities  Exchange Act of
1934, as amended,  or (ii) might  materially  adversely affect (x) the business,
properties,  financial  condition,  prospects or results of  operations  of such
Borrower or the ability of such  Borrower to perform its  obligations  under the
Loan  Documents  or (y) the  legality,  validity or  enforceability  of the Loan
Documents   against  such  Borrower  and  (b)  neither  such  Borrower  nor  any
consolidated   subsidiary   of  such   Borrower  has  any  material   contingent
obligations.

                  SECTION 3.09. Material  Agreements.  Neither such Borrower nor
any  subsidiary  is a party to any  agreement  or  instrument  or subject to any
charter or other corporate  restriction  materially and adversely  affecting its
business,   properties  or  assets,   operations  or  condition   (financial  or
otherwise).  Neither  such  Borrower  nor any  subsidiary  is in  default in the
performance,  observance or fulfillment of any of the obligations,  covenants or
conditions  contained in (a) any agreement to which it is a party, which default
might have a material adverse effect on the consolidated  business,  properties,
financial condition, prospects or results of operations of such Borrower and its
subsidiaries  or  (b)  any  agreement  or  instrument  evidencing  or  governing
Indebtedness  which  default  would  allow the  holders  thereof  to cause  such
Indebtedness to become due prior to its stated maturity, result in any mandatory
repayment,  prepayment or redemption  thereof, or require that any offer be made
to effect any repurchase or redemption thereof.

                  SECTION 3.10.  Regulation U. (a) Margin Stock constitutes less
than 25% of those assets of such Borrower and its subsidiaries  that are subject
to any limitation on sale, pledge, or other restriction hereunder.

                  (b) As of the date  hereof,  the only  Margin  Stock  owned by
Stilwell or any of its  Subsidiaries  is  approximately  33% of the  outstanding
common stock of DST Systems and other  Margin Stock with an aggregate  value not
in excess of $1,000,000.

<PAGE>

                  SECTION 3.11.  Investment  Company Act; Public Utility Holding
Company Act. (a) Neither such  Borrower nor any Related  Subsidiary  (other than
Berger and Nelson,  in the case of  Stilwell)  is an  "investment  company" or a
company  "controlled"  by an  "investment  company",  within the  meaning of the
Investment Company Act of 1940, as amended.

                  (b) Neither  such  Borrower  nor any Related  Subsidiary  is a
"holding  company"  or a  "subsidiary  company"  of a "holding  company",  or an
"affiliate"  of a "holding  company" or of a "subsidiary  company" of a "holding
company",  within the meaning of the Public Utility Holding Company Act of 1935,
as amended.

                  SECTION 3.12.  Use of Proceeds.  Such Borrower  will  use  the
proceeds of the Loans only for the purposes set forth in the  recitals  to  this
Agreement.

                  SECTION 3.13.  Taxes.  Such Borrower and each  subsidiary have
filed all United States  federal tax returns and all other tax returns which are
required  to be filed and have paid all taxes due  pursuant  to said  returns or
pursuant to any assessment received by such Borrower or any of its subsidiaries,
including  without  limitation all federal and state  withholding  taxes and all
taxes required to be paid pursuant to applicable law, except such taxes, if any,
as are being contested in good faith and as to which adequate reserves have been
provided.  The charges,  accruals and reserves on the books of such Borrower and
the  Consolidated  Subsidiaries  in respect  of any taxes or other  governmental
charges are adequate.

                  SECTION 3.14. Accuracy of Information. No information, exhibit
or report  furnished by such Borrower or any  subsidiary of such Borrower to the
Agent or to any Lender in connection  with the negotiation of the Loan Documents
contained any material  misstatement of fact or omitted to state a material fact
or any fact necessary to make the statements contained therein not misleading.

                  SECTION 3.15. No Undisclosed Dividend Restrictions.  Except as
set  forth in  Schedule  3.15 and  except  for  limitations  on the  payment  of
dividends  under  applicable  law,  none of the  subsidiaries  is subject to any
agreement,  amendment,  covenant or  understanding  that  directly or indirectly
(through the  application  of financial  covenants or  otherwise)  prohibits the
ability of such entity to declare or pay dividends.

ARTICLE IV.  CONDITIONS OF LENDING

                  The  obligations  of the Lenders to make Loans  hereunder,  to
extend the Maturity Date and to increase the Total Commitment are subject to the
satisfaction of the following conditions:

                  SECTION 4.01. All  Borrowings,  Extension of Maturity Date and
Increase in Total  Commitment.  On the date of each  Borrowing,  including  each
Borrowing  in which  Loans  are  refinanced  with new Loans as  contemplated  by
Section 2.05, each extension of the Maturity Date and each increase in the Total
Commitment:

                  (a)  The  Agent  shall  have  received  (i) a  notice  of such
         Borrowing as required by Section 2.03 or Section 2.04,  as  applicable,
         or in the case of a Borrowing of a Swingline Loan, the Swingline Lender
         and the Agent shall have received a notice  requesting  such  Swingline
         Loan as  requested  by  Section  2.22,  (ii) a notice of  extension  of
         Maturity Date as required by Section 2.23 or (iii) a notice of increase
         in  aggregate  Total   Commitment  as  required  by  Section  2.23,  as
         applicable.

                  (b) The  representations  and  warranties of each Borrower set
         forth in Article III hereof  shall be true and correct in all  material
         respects  on  and  as of the  date  of  such  Borrowing,  extension  or
         increase, as applicable,  with the same effect as though made on and as
         of such date, except to the extent such  representations and warranties
         expressly relate to an earlier date.

                  (c) At the  time  of and  immediately  after  such  Borrowing,
         extension or increase,  as  applicable,  no Event of Default or Default
         shall have occurred and be continuing.

                  (d) At the  time  of and  immediately  after  such  Borrowing,
         extension  or  increase,  as  applicable,   the  outstanding  aggregate
         principal amount of all Loans made by the Lenders (i) to Stilwell shall
         not   exceed   $200,000,000   and  (ii)  to  Janus   shall  not  exceed
         $100,000,000.

<PAGE>

Each  Borrowing,  extension  or  increase,  as  applicable,  shall be  deemed to
constitute a  representation  and warranty by each  Borrower on the date of such
Borrowing,  extension or increase, as applicable, as to the matters specified in
paragraphs  (b), (c) and (d) of this Section 4.01;  provided that Janus shall be
deemed to have made  representations  and  warranties  as to such  matters  only
insofar as they relate itself and its Related Subsidiaries.

                  SECTION 4.02.  Conditions Precedent to Closing.  On  the  date
hereof:

                  (a) The Agent shall have received a favorable  written opinion
         of (i)  Sonnenschein  Nath &  Rosenthal,  counsel to  Stilwell,  to the
         effect and  covering  those  matters  set forth in Exhibit  C-1 hereto,
         (ii)(A) Hogan & Hartson LLP, counsel to Janus, and (B) in-house counsel
         to Janus,  to the effect and  collectively  covering  those matters set
         forth in Exhibit  C-2  hereto,  and (iii) of  Cravath,  Swaine & Moore,
         counsel to the Agent, in each case as to matters  reasonably  requested
         by the Agent and dated the date hereof and  addressed  to the  Lenders.
         The Borrowers  hereby instruct their counsel to deliver such opinion to
         the Agent.

                  (b) All  legal  matters  incident  to this  Agreement  and the
         Borrowings  hereunder  shall  be  satisfactory  to the  Lenders  and to
         Cravath, Swaine & Moore, counsel for the Agent.

                  (c)  The  Agent  shall  have   received  (i)  a  copy  of  the
         certificate  or articles of  incorporation,  including  all  amendments
         thereto,  of  each  Borrower,  certified  as of a  recent  date  by the
         Secretary  of  State of the  jurisdiction  of its  incorporation  and a
         certificate  as to the good  standing  of such  Borrower as of a recent
         date, from such Secretary of State; (ii) a certificate of the Secretary
         or an Assistant  Secretary of each  Borrower  dated the date hereof and
         certifying (A) that attached thereto is a true and complete copy of the
         by-laws  of such  Borrower  as in effect on the date  hereof and at all
         times since a date prior to the date of the  resolutions  described  in
         clause (B) below, (B) that attached thereto is a true and complete copy
         of resolutions  duly adopted by the Board of Directors of such Borrower
         authorizing  the  execution,  delivery  and  performance  of  the  Loan
         Documents and the borrowings hereunder,  and that such resolutions have
         not been  modified,  rescinded  or  amended  and are in full  force and
         effect,  (C) that the certificate or articles of  incorporation of such
         Borrower  have not been  amended  since the date of the last  amendment
         thereto shown on the certificate of good standing furnished pursuant to
         clause (i) above,  and (D) as to the incumbency and specimen  signature
         of each  officer  executing  any Loan  Document  or any other  document
         delivered in connection  herewith on behalf of such  Borrower;  (iii) a
         certificate  of  another  officer  as to the  incumbency  and  specimen
         signature  of  the  Secretary  or  Assistant  Secretary  executing  the
         certificate  pursuant to (ii) above;  and (iv) such other  documents as
         the Lenders or  Cravath,  Swaine & Moore,  counsel  for the Agent,  may
         reasonably request.

                  (d) The Agent  shall have  received a  certificate,  dated the
         date  hereof  and  signed  by a  Financial  Officer  of each  Borrower,
         confirming  compliance  with  the  conditions  precedent  set  forth in
         paragraphs (b) and (c) of Section 4.01.

                  (e) The Agent shall have  received all Fees and other  amounts
         due and payable on or prior to the date hereof.

                  (f) There shall be no litigation,  actual or threatened,  that
         in the  reasonable  judgment  of the  Agent  would be  likely to affect
         materially and adversely the business,  assets, condition (financial or
         otherwise) or prospects of Stilwell or any of its Subsidiaries.

                  (g) The Agent shall have received evidence  satisfactory to it
         that the 2000  Credit  Agreement  shall  have been  terminated  and all
         amounts  outstanding  thereunder,  including any fees,  shall have been
         paid in full.

ARTICLE V.  AFFIRMATIVE COVENANTS

                  Each Borrower  (except as the context  otherwise  specifically
provides)  covenants  and agrees with each Lender with respect to itself and its
Related Subsidiaries that, until the Commitments have expired or been terminated
and the principal of or interest on each Loan, any Fees or any other expenses or
amounts payable under any Loan Document shall have been paid in full, unless the
Required Lenders shall otherwise consent in writing:

<PAGE>

                  SECTION 5.01. Conduct of Business; Maintenance of Ownership of
Subsidiaries  and  Maintenance of  Properties.  (a) Such Borrower will, and will
cause  each  Related  Subsidiary  to,  carry  on and  conduct  its  business  in
substantially the same manner and in substantially the same fields of enterprise
as it is  presently  conducted  and to do all things  necessary  to remain  duly
incorporated, validly existing and in good standing as a domestic corporation in
its  jurisdiction  of  incorporation  and  maintain all  requisite  authority to
conduct its business in each jurisdiction in which its business is conducted.

         (b) Stilwell will at all times own,  directly or  indirectly,  not less
than 66-2/3% of the outstanding  voting securities of each of Janus,  Berger and
Nelson, in each case free and clear of any Liens on such securities.

         (c) Such Borrower will,  and will cause each Related  Subsidiary to, do
all things  necessary to maintain,  preserve,  protect and keep their properties
material to the  conduct of their  business in good  repair,  working  order and
condition, and make all necessary and proper repairs,  renewals and replacements
so that their  businesses  carried on in  connection  therewith  may be properly
conducted at all times.

                  SECTION 5.02.  Insurance.  Such Borrower  will, and will cause
each Related  Subsidiary  to,  maintain  with  financially  sound and  reputable
insurance companies insurance on all their property in such amounts and covering
such risks as is consistent  with sound  business  practice and  customary  with
companies engaged in similar lines of business,  and such Borrower will (or will
cause such  Related  Subsidiary  to)  furnish to any Lender  upon  request  full
information as to the insurance carried.

                  SECTION  5.03.  Compliance  with Laws and  Payment of Material
Obligations  and Taxes.  (a) Such  Borrower  will,  and will cause each  Related
Subsidiary to, comply in all material respects with all laws (including, without
limitation,  ERISA  and the  Fair  Labor  Standards  Act,  as  amended),  rules,
regulations,  orders, writs, judgments,  injunctions, decrees or awards to which
it may be subject.

                  (b) Such Borrower will, and will cause each Related Subsidiary
to, pay when due its material obligations  including all taxes,  assessments and
governmental  charges  and levies upon it or its  income,  profits or  property,
except those which are being contested in good faith by appropriate  proceedings
and with respect to which adequate reserves have been set aside.

                  SECTION  5.04.  Financial   Statements,   Reports,  etc.  Such
Borrower  will  maintain,  for itself and each Related  Subsidiary,  a system of
accounting  established  and  administered in accordance with GAAP and Stilwell,
and in the case of paragraphs (d), (f), (h) and (i), Janus,  will furnish to the
Agent and each Lender:

                  (a) in the case of  Stilwell,  within 105 days after the close
         of each of its fiscal years, an unqualified  (except for qualifications
         relating to changes in accounting  principles  or practices  reflecting
         changes in GAAP and  required  or approved  by  Stilwell's  independent
         certified  public  accountants)  audit report  certified by independent
         certified  public  accountants,   of  nationally  recognized  standing,
         prepared in accordance with GAAP on a consolidated basis for itself and
         the Consolidated  Subsidiaries,  including balance sheets as of the end
         of such  period  and  related  statements  of  income  and  changes  in
         stockholders' equity and cash flows;

                  (b) in the case of Stilwell, within 60 days after the close of
         each of the first three quarterly  periods of each of its fiscal years,
         for itself and the Consolidated  Subsidiaries,  unaudited  consolidated
         balance  sheets  as at the  close  of each  such  period,  consolidated
         statements of income and a consolidated statement of cash flows for the
         period  from  the  beginning  of  such  fiscal  year to the end of such
         quarter, all certified by its chief financial officer;

                  (c) in the  case of  Stilwell,  together  with  the  financial
         statements   required   hereunder,    a   compliance   certificate   in
         substantially  the form of  Exhibit  D signed  by its  chief  financial
         officer showing the calculations necessary to determine compliance with
         this Agreement and stating that no Default or Event of Default  exists,
         or if any  Default or Event of Default  exists,  stating the nature and
         status thereof;

                  (d) as soon as possible  and in any event within 10 days after
         any Responsible  Officer of either Borrower knows or has reason to know
         that (i) any  Reportable  Event has occurred  with respect to any Plan,
         (ii) any  Withdrawal  Liability  has been  incurred with respect to any
         Multiemployer  Plan  or  (iii)  such  Borrower  or  any  member  of the
         Controlled  Group has received

<PAGE>

         any notice  concerning  the  imposition  of  Withdrawal  Liability or a
         determination  that a  Multiemployer  Plan  is, or is  expected  to be,
         insolvent  or in  reorganization  within   the  meaning  of Title IV of
         ERISA,  a  statement,  signed by  the chief  financial  officer of such
         Borrower,  describing such  Reportable Event,  Withdrawal  Liability or
         notice  and the   action  which  such  Borrower  proposes  to take with
         respect thereto;

                  (e) promptly upon the furnishing  thereof to the  shareholders
         of either  Borrower,  copies of all financial  statements,  reports and
         proxy statements so furnished;

                  (f)  promptly   upon  the  filing   thereof,   copies  of  all
         registration statements and annual, quarterly, monthly or other regular
         reports which Stilwell or any  Consolidated  Subsidiary  files with the
         Securities and Exchange Commission or financial reports material to the
         interests  of the  Lenders  or to the  ability  of either  Borrower  to
         perform its obligations  under the Loan Documents,  it being understood
         that Janus will not be required to deliver financial  statements of the
         types  referred to in paragraphs  (a) and (b) so long as such financial
         information  with  respect  to  Janus  is  included  in  the  financial
         statements furnished by Stilwell pursuant to such paragraphs;

                  (g)  in the  case  of  Stilwell,  within  10  days  after  the
         execution   thereof,   copies  of  all   amendments,   supplements   or
         modifications of the Janus Stock Purchase Agreement;

                  (h)  in  the  case  of  Janus,   within  10  days   after  the
         effectiveness  thereof,  copies  of (i)  all  amendments,  supplements,
         modifications  or other  documentation  relating to (1) the Janus World
         Funds plc prospectus  dated October 23, 2000 or (2) the Janus Universal
         Funds prospectus dated March 8, 2000 and (ii) any other  documentation,
         including  amendments,  supplements or  modifications,  relating to any
         Permitted B Share Transactions; and

                  (i) such other information  (including financial  information)
         as the Agent or any Lender may from time to time reasonably request.

                  SECTION 5.05.  Other  Notices.  Such Borrower  will,  and will
cause each Related  Subsidiary  to, give prompt notice in writing to the Lenders
of the  occurrence  of  any  Default  or  Event  of  Default  and  of any  other
development, financial or otherwise, which might materially adversely affect its
business,  properties  or affairs or the  ability of such  Borrower to repay the
Obligations.

                  SECTION  5.06.  Books and Records;  Access to  Properties  and
Inspections. Such Borrower will, and will cause each Related Subsidiary to, keep
proper books and account in which full, true and correct entries are made of all
dealings  and  transactions  in relation to its business  and  activities.  Such
Borrower will,  and will cause each Related  Subsidiary to, permit the Agent and
the Lenders to make reasonable  inspections of the  properties,  corporate books
and  financial  records of such  Borrower and each Related  Subsidiary,  to make
reasonable  examinations and copies of the books of accounts and other financial
records  of such  Borrower  and each  Related  Subsidiary,  and to  discuss  the
affairs,  finances  and accounts of such  Borrower  and each Related  Subsidiary
with,  and to be advised as to the same by,  their  respective  officers at such
reasonable  times and intervals as the Lenders may designate;  provided that (a)
any  inspection  by any Lender shall be at such Lender's own expense and (b) the
Lenders shall coordinate the timing of their  inspections  through the Agent and
provide reasonable notice thereof.

                  SECTION  5.07.  Use of Proceeds.  Such  Borrower  will use the
proceeds of the Loans only for working capital and general corporate purposes of
such Borrower,  including,  without  limitation,  (a) to repurchase  outstanding
shares of capital stock of such Borrower or any of its  subsidiaries  and (b) to
finance nonhostile acquisitions by such Borrower. No part of the proceeds of any
Loan will be used, whether directly or indirectly,  for any purpose that entails
a violation of any of the Regulations of the Board,  including Regulations U and
X, or to  finance  any  acquisition  for which the board of  directors  or other
governing body of the target company has not given its consent or approval.

ARTICLE VI.  NEGATIVE COVENANTS

                  Each Borrower  (except as the context  otherwise  specifically
provides)  covenants  and agrees with each Lender with respect to itself and its
Related Subsidiaries that, until the Commitments have expired or been terminated
and the principal of or interest on each Loan, any Fees or any other expenses or

<PAGE>

amounts payable under any Loan Document shall have been paid in full, unless the
Required Lenders shall otherwise consent in writing:

                  SECTION 6.01.  Indebtedness.  (a) Such Borrower  will  not and
will not permit any Related Subsidiary to incur, create or  suffer  to exist any
Indebtedness, except:

                  (i) Indebtedness existing on the date hereof and  described in
         Schedule 6.01;

                  (ii) Indebtedness  incurred to finance all or a portion of the
         purchase  price of  assets  acquired  in the  ordinary  course of their
         financial services businesses which Indebtedness is secured solely by a
         Lien on the assets being acquired provided that such Indebtedness would
         not cause a Default or an Event of Default  under any other  Section of
         this Agreement;

                  (iii)  Indebtedness  of such Borrower to the other Borrower or
         any Related Subsidiary of either Borrower and of any Related Subsidiary
         of either  Borrower to either  Borrower or any  Related  Subsidiary  of
         either Borrower;

                  (iv) other  Indebtedness not secured by any Liens and incurred
         in the ordinary  course of business  and  refinancings  thereof,  in an
         aggregate principal amount at any one time outstanding that, when taken
         together with (1) the aggregate principal amount of all Indebtedness of
         the  Borrowers  and  the  Related  Subsidiaries  secured  by any  Liens
         pursuant  to  Section  6.02(l)  and (2)  the  aggregate  amount  of all
         Attributable   Debt  in   connection   with  all  Sale  and   Leaseback
         Transactions of the Borrowers and the Related Subsidiaries  pursuant to
         Section 6.03(a), does not exceed the greater of (x)$100,000,000 and (y)
         10% of  Consolidated  Net Worth at such  time (in each  case  minus the
         aggregate  amount of Indebtedness of the other Borrower and its Related
         Subsidiaries  permitted  under this  paragraph at such time),  provided
         that such Indebtedness would not cause a Default or an Event of Default
         under any other Section of this Agreement;

                  (v) Indebtedness of such Borrower under the Loan Documents and
         under the 364-Day Agreement;

                  (vi)  Indebtedness  of Janus in respect of  Permitted  B Share
         Recourse Financing Transactions;  provided that the aggregate principal
         amount of all such  Indebtedness  shall not exceed  $250,000,000 at any
         time outstanding;

                  (vii) Indebtedness of Janus in  respect of  Permitted B  Share
         True Sale Transactions;

                  (viii)  in the case of  Janus  and its  Related  Subsidiaries,
         Indebtedness  incurred to finance  the  acquisition,  construction  and
         furnishing of the Lowry Property;  provided that (x) such  Indebtedness
         is  incurred  prior to or within 90 days after the  completion  of such
         construction or improvement and (y) the aggregate  principal  amount of
         Indebtedness  permitted by this clause (viii), when taken together with
         the  Attributable  Debt in  connection  with  the  Sale  and  Leaseback
         Transaction pursuant to Section 6.03(b),  shall not exceed $250,000,000
         at any time outstanding;

                  (ix) Permitted Subordinated Debt; provided that Stilwell shall
         have  delivered  to the Agent a copy of all  documentation  relating to
         such Permitted Subordinated Debt; and

                  (x) Guarantees of the Obligations  in  favor  of the Agent and
         the Lenders as required under paragraph (b) below.

                  (b) Neither  Borrower  will permit (i) any Related  Subsidiary
         to  Guarantee  any   Indebtedness  of  either  Borrower   or  (ii)  any
         Related Subsidiary  to  Guarantee  any   Indebtedness   Guaranteed   by
         either Borrower,  unless, in the case of  each of the preceding clauses
         (i) and (ii), prior thereto such Related Subsidiary shall have executed
         and  delivered  to  the  Agent,  for  the  benefit  of  the Lenders, an
         unconditional  Guarantee with respect to  the Obligations  satisfactory
         in form and substance to the Agent.

                  SECTION  6.02.  Liens.  Such  Borrower  will not,  nor will it
permit any Related  Subsidiary to, create,  incur,  or suffer to exist any other
Lien in or on the  property  (now or  hereafter  acquired),  or on any income or
revenues or rights in respect of any  thereof,  of such  Borrower or any Related
Subsidiary, except:

<PAGE>

                  (a) Liens for taxes,  assessments or  governmental  charges or
         levies on its property if the same shall not at the time be  delinquent
         or thereafter can be paid without  penalty,  or are being  contested in
         good faith and by appropriate proceedings;

                  (b) Liens imposed by law,  such as  carriers',  warehousemen's
         and  mechanics'  liens and other  similar liens arising in the ordinary
         course of business that secure payment of obligations  not more than 60
         days past due  except  for such  Liens as are being  contested  in good
         faith by appropriate proceedings;

                  (c) Liens  arising out of pledges or deposits  under  worker's
         compensation laws, unemployment  insurance,  old age pensions, or other
         social security or retirement benefits, or similar legislation;

                  (d) Utility  easements,  building  restrictions and such other
         encumbrances  or  charges  against  real  property  as are of a  nature
         generally  existing with respect to  properties of a similar  character
         and that do not in any  material  way affect the  marketability  of the
         same or interfere with the use thereof in the business of such Borrower
         or its Related Subsidiaries;

                  (e)  Liens  existing  on the  date  hereof  and  described  in
         Schedule 6.02 hereto;  provided that such Liens shall secure only those
         obligations that they secure on the date hereof;

                  (f) Liens  granted  on  property  or  assets  solely to secure
         Indebtedness  evidencing all or a portion of the purchase price of such
         property or assets or any refinancing  thereof provided that such Liens
         attach only to the property or assets being  acquired and that any such
         refinancing  does not increase the aggregate  principal  amount of such
         Indebtedness  but only to the extent that such  Indebtedness  would not
         result in a Default or an Event of Default  under any other  Section of
         this Agreement;

                  (g)  Liens  on  the  facilities  located at the Lowry Property
         securing Indebtedness permitted pursuant to Section 6.01(a)(viii);

                  (h)  any Lien on Excess Margin Stock;

                  (i)  Liens  arising  pursuant  to  the  Janus  Stock  Purchase
         Agreement and certain other stock purchase  agreements and  restriction
         agreements  requiring Stilwell to purchase outstanding capital stock of
         Janus from minority stockholders of Janus;

                  (j) in the case of Janus,  Liens deemed to exist in connection
         with  Permitted B Share  Transactions;  provided that such Liens extend
         only to such B Share Fees and not to any other  assets of Janus and its
         Related Subsidiaries;

                  (k)  Environmental  Liens securing clean-up costs or fines not
         in excess of  $25,000,000  in  aggregate  principal  amount  (minus the
         aggregate  principal  amount of such  clean-up  costs or fines  imposed
         against the other  Borrower  and its Related  Subsidiaries)  except for
         Environmental   Liens  that  are  being  contested  in  good  faith  by
         appropriate proceedings and the enforcement of which is stayed; and

                  (l) Liens,  in  addition  to Liens  permitted  under the above
         clauses (a) through (k), securing  Indebtedness the aggregate principal
         amount of which,  when taken together with (1) the aggregate  principal
         amount of  Indebtedness  of the Borrowers and the Related  Subsidiaries
         outstanding  pursuant  to  Section  6.01(a)(iv)  and (2) the  aggregate
         amount  of all  Attributable  Debt in  connection  with  all  Sale  and
         Leaseback  Transactions  of the Borrowers and the Related  Subsidiaries
         pursuant to Section 6.03(a)(other than Sale and Leaseback  Transactions
         consummated  prior to the date hereof),  does not exceed the greater of
         (x) $100,000,000 and (y) 10% of Consolidated Net Worth at such time (in
         each case  minus the  aggregate  amount  of  Indebtedness  of the other
         Borrower and its Related Subsidiaries permitted under this paragraph at
         such time).

                  SECTION 6.03. Sale and Lease-Back Transactions.  Such Borrower
will  not,  and will not  permit  any  Related  Subsidiary  to,  enter  into any
arrangement,  directly or  indirectly,  with any person whereby it shall sell or
transfer any property, real or personal, used or useful in its business, whether
now

<PAGE>

owned or hereafter  acquired,  and thereafter rent or lease such property or
other  property  which it intends to use for  substantially  the same purpose or
purposes  as the  property  being  sold or  transferred  (a "Sale and  Leaseback
Transaction"); except:

                   (a) such  Borrower or any Related  Subsidiary  may enter into
         any  Sale  and  Leaseback  Transaction  if  (i)  at the  time  of  such
         Transaction  no Default or Event of Default  shall have occurred and be
         continuing,  (ii) the  proceeds  from the sale of the subject  property
         shall be at least  equal to its fair  market  value on the date of such
         sale  and  (iii)  the  aggregate  amount  of all  Attributable  Debt in
         connection  with all Sale and Leaseback  Transactions  of such Borrower
         and  the  Related   Subsidiaries   (other   than  Sale  and   Leaseback
         Transactions consummated prior to the date hereof), when taken together
         with the (1) the  aggregate  principal  amount of  Indebtedness  of the
         Borrowers and the Related Subsidiaries  outstanding pursuant to Section
         6.01(a)(iv) and (2) the aggregate  principal amount of all Indebtedness
         of the  Borrowers  and the  Related  Subsidiaries  secured by any Liens
         pursuant to Section 6.02(l), does not at any time exceed the greater of
         (x)  $100,000,000  and (y) 10% of Consolidated Net Worth on any date of
         determination  (in each case minus the aggregate amount of Indebtedness
         of the other Borrower and its Related Subsidiaries permitted under this
         paragraph on such date); and

                  (b) Janus may engage in a Sale and Leaseback  Transaction with
         respect to the facilities located at the Lowry Property;  provided that
         the aggregate amount of the  Attributable  Debt in connection with such
         Sale and Leaseback Transaction,  when taken together with the aggregate
         principal  amount  of  Indebtedness  outstanding  pursuant  to  Section
         6.01(a)(viii), does not exceed $250,000,000 at any time.

                  SECTION 6.04. Mergers, Consolidations and Transfers of Assets.
Such  Borrower  will not, and will not permit any Related  Subsidiary  to, merge
into or consolidate  with any other person,  or permit any other person to merge
into or consolidate with it, or sell,  transfer,  lease or otherwise  dispose of
(in one transaction or in a series of transactions)  all or any substantial part
of its assets (whether now owned or hereafter  acquired) or any capital stock of
any Related  Subsidiary of such Borrower,  except that (a) such Borrower and any
Related Subsidiary may sell assets in the ordinary course of business, (b) Janus
may sell or  transfer  assets in  connection  with  Permitted  B Share True Sale
Transactions and (c) if at the time thereof and immediately  after giving effect
thereto no Event of Default or Default shall have occurred and be continuing (i)
any wholly owned  Subsidiary  may merge into Stilwell in a transaction  in which
Stilwell is the  surviving  corporation,  (ii) any wholly owned  Subsidiary  may
merge  into  or  consolidate  with  any  other  wholly  owned  Subsidiary  in  a
transaction  in which the surviving  entity is a wholly owned  Subsidiary and no
person other than a Borrower or a wholly owned Related  Subsidiary  receives any
consideration,  (iii)  such  Borrower  and its  Related  Subsidiaries  may sell,
transfer,  lease or  dispose of assets out of the  ordinary  course of  business
having  depreciated book values (determined in accordance with GAAP) that in the
aggregate for all assets so disposed of during the term of this Agreement (other
than  pursuant to the following  clause (iv)) do not exceed 10% of  Consolidated
Net Worth on any date of determination (minus amounts sold by the other Borrower
and its Related Subsidiaries) to any other person and (iv) Stilwell may sell the
common  stock of DST Systems for cash or may  exchange  the common  stock of DST
Systems for the common stock of a publicly-traded  entity whose senior unsecured
non-credit  enhanced long term  indebtedness for borrowed money is rated Baa3 or
better by Moody's  Investors  Service or BBB- by Standard and Poor's,  in either
case to a third party buyer that is not an Affiliate of Stilwell;  provided that
such sale or exchange is for fair market value.

                  SECTION 6.05. Transactions with Affiliates. Such Borrower will
not,  and will not  permit any  Related  Subsidiary  to,  sell or  transfer  any
property or assets to, or purchase or acquire any  property or assets  from,  or
otherwise engage in any other  transactions  with, any of its Affiliates  (other
than the other Borrower or any Related Subsidiary), except that such Borrower or
any Related  Subsidiary may engage in any of the foregoing  transactions  in the
ordinary course of business at prices and on terms and conditions  which,  taken
as a whole,  are not less favorable to such Borrower or such Related  Subsidiary
than would prevail in an arm's-length transaction with unrelated third parties.

                  SECTION  6.06.  Certain Other  Agreements.  Such Borrower will
not, and will not permit any Related Subsidiary to (i) be bound by or enter into
any agreement,  amendment, covenant,  understanding or revision to any agreement
which directly or indirectly  (through the application of financial covenants or
otherwise)  prohibits or restricts  the ability of such  Related  Subsidiary  to
declare  and  pay  dividends  or  make  any  loans  or  advances  or  any  other
distribution to Stilwell (except for limitations on the payment of dividends set
forth in Schedule  3.15 or imposed by  applicable  law);  or (ii) be bound by or

<PAGE>

enter into any agreement,  indenture, contract,  instrument,  amendment or lease
containing any covenant  restricting the incurrence of Indebtedness or governing
such  Borrower's  and the  Related  Subsidiaries'  financial  condition  if such
covenant is more  restrictive  than the  analogous  provision of this  Agreement
unless (A) such  Borrower has delivered a copy of such document to the Agent not
less than 10 Business  Days prior to  executing  the same and (B) the  Borrowers
enter into an amendment to this Agreement to add the more  restrictive  covenant
or to conform the analogous provision of this Agreement to such more restrictive
covenant.

                  SECTION 6.07. Certain Financial Covenants.  Stilwell will not:

         (a) permit at any date the Leverage Ratio to exceed 2.0 to 1.0;

         (b) permit the Fixed Charge Ratio to be less than 4.0  to  1.0  on  the
last day of any fiscal quarter;

         (c) permit Consolidated Net Loss for (i) any fiscal quarter or (ii) any
period  of  two  or  more  consecutive   fiscal  quarters  to  be  greater  than
$300,000,000;

         (d) permit Consolidated Adjusted Net Worth to be less than $500,000,000
at any time; or

         (e)  permit   Average   Assets  Under   Management   to  be  less  than
$225,000,000,000 on the last day of any month.

                  SECTION 6.08.  Margin  Stock.  (a) Such Borrower will not, nor
will it permit any Related  Subsidiary to, purchase or otherwise  acquire Margin
Stock if, after giving effect to any such purchase or acquisition,  Margin Stock
owned by Stilwell  and its  Subsidiaries  would  represent  more than 25% of the
assets of Stilwell  and its  Subsidiaries  on a  consolidated  basis  (valued in
accordance with Regulation U); provided that notwithstanding the foregoing,  (i)
Stilwell may repurchase  its capital stock pursuant to Stilwell's  stock buyback
program  described  in  Stilwell's  Current  Report on Form 8-K  filed  with the
Securities and Exchange  Commission on July 25, 2000, (ii) Stilwell may exchange
capital  stock of DST  Systems  for  Margin  Stock as  permitted  under  Section
6.04(iv)  and (iii) such  Borrower  and its Related  Subsidiaries  may  purchase
Margin Stock in an aggregate  amount of $1,000,000  (minus amounts  purchased by
the other  Borrower and its Related  Subsidiaries)  during any fiscal year.  For
purposes of this Section  6.08(a),  on any date of  determination,  Margin Stock
will be valued at its current  market price and the total assets of Stilwell and
its Subsidiaries  will be valued at the higher of (x) the market  capitalization
of  Stilwell  and (y) such  amount  as the  management  of  Stilwell  reasonably
determines   could  be  obtained  for  Stilwell  and  its   Subsidiaries  in  an
arm's-length  transaction with a third party purchaser treating Stilwell and its
Subsidiaries as a going concern.

                  (b) Such  Borrower  will not,  nor will it permit any  Related
Subsidiary to, cause any capital stock owned by it to become Margin Stock unless
prior to such time this Agreement shall have been amended in a manner reasonably
satisfactory  to the Borrowers and the Agent (i) to cause all Margin Stock owned
by  the  Borrowers  and  the  Restricted  Subsidiaries  to  be  subject  to  the
restrictions of Section 6.02 and Section 6.04 and (ii) to require the Regulation
U margin requirements to be met at all times.

ARTICLE VII.  EVENTS OF DEFAULT

                  In  case  of the  happening  of any  of the  following  events
("Events of Default"):

                  (a) any  representation  or warranty made or deemed made by or
         on behalf of either  Borrower or any  Subsidiary  to the Lenders or the
         Agent under or in  connection  with this  Agreement,  any Loan,  or any
         certificate or information  delivered in connection with this Agreement
         or any other Loan Document shall be materially  false on the date as of
         which made;

                  (b) nonpayment by either Borrower of  principal  of  any  Loan
         when due;

                  (c) nonpayment by either Borrower of interest upon any Loan or
         of any Fee or other  Obligations  (other than an amount  referred to in
         (b) above) under any of the Loan  Documents  within five  Business Days
         after the same becomes due;

<PAGE>

                  (d) the  breach  by  either  Borrower  of  any of the terms or
         provisions of Section 5.07 or in Article VI;

                  (e) the breach by either  Borrower  (other than a breach which
         constitutes  an Event of Default  under (a),  (b), (c) or (d) above) of
         any of the terms or provisions of this Agreement  which is not remedied
         within fifteen days after written notice from the Agent or any Lender;

                  (f) failure of either  Borrower or any  Subsidiary  to pay any
         Indebtedness  in excess of $10,000,000  (or its equivalent in any other
         currency)  in  aggregate  principal  amount when due; or the default by
         either  Borrower  or any  Subsidiary  in the  performance  of any term,
         provision  or  condition  contained  in any  agreement  under which any
         Indebtedness  in excess of $10,000,000  (or its equivalent in any other
         currency) in aggregate principal amount was created or is governed, the
         effect of which is to permit the holder or holders of such Indebtedness
         to cause such  Indebtedness to become due prior to its stated maturity;
         or the default by either  Borrower or any Subsidiary in the performance
         of any term,  provision or condition  contained in any agreement  under
         which any  Indebtedness  in excess of $10,000,000 (or its equivalent in
         any other  currency)  in aggregate  principal  amount was created or is
         governed, the effect of which is to cause the holder or holders of such
         Indebtedness  or a trustee or other  representative  of such holders to
         cause such Indebtedness to become due prior to its stated maturity;  or
         any  Indebtedness  in excess of  $10,000,000  (or its equivalent in any
         other currency) in aggregate  principal  amount shall be declared to be
         due and payable or  required  to be prepaid  (other than by a regularly
         scheduled payment) prior to the stated maturity thereof;

                  (g) either Borrower or any Subsidiary  shall (i) have an order
         for relief  entered  with  respect to it under the  Federal  Bankruptcy
         Code, (ii) not pay, or admit in writing its inability to pay, its debts
         generally as they become due,  (iii) make a general  assignment for the
         benefit of creditors,  (iv) apply for,  seek,  consent to, or acquiesce
         in,  the  appointment  of a  receiver,  custodian,  trustee,  examiner,
         liquidator or similar  official for it or any  substantial  part of its
         property,  (v)  institute  any  proceeding  seeking an order for relief
         under  the  Federal  Bankruptcy  Code or  seeking  to  adjudicate  it a
         bankrupt or insolvent, or seeking dissolution, winding up, liquidation,
         reorganization,  arrangement,  adjustment or  composition  of it or its
         debts   under  any  law   relating   to   bankruptcy,   insolvency   or
         reorganization  or relief of debtors or fail to file an answer or other
         pleading denying the material  allegations of any such proceeding filed
         against it, (vi) take any  corporate  action to authorize or effect any
         of the foregoing  actions set forth in this paragraph (g) or (vii) fail
         to contest in good faith any appointment or proceeding described in the
         following paragraph (h);

                  (h)  without  the  application,  approval  or  consent  of the
         Borrowers or any Subsidiary, a receiver, trustee, examiner,  liquidator
         or similar  official  shall be  appointed  for either  Borrower  or any
         Subsidiary or any  substantial  part of its  property,  or a proceeding
         described  in  clause  (v) of the  preceding  paragraph  (g)  shall  be
         instituted   against  either   Borrower  or  any  Subsidiary  and  such
         appointment   continues   undischarged  or  such  proceeding  continues
         undismissed or unstayed for a period of 60 consecutive days;

                  (i)  any  court,   government  or  governmental  agency  shall
         condemn, seize or otherwise appropriate,  or take custody or control of
         all of the property of either  Borrower or any  Subsidiary or an amount
         of such property or assets having  depreciated book values  (determined
         in accordance  with GAAP) that in the aggregate for all  properties and
         assets  so  appropriated  or taken  during  the term of this  Agreement
         exceed 15% of Consolidated Net Worth on any date of determination;

                  (j) either  Borrower  or any  Subsidiary  shall fail within 30
         days to pay, bond or otherwise  discharge any judgment or order for the
         payment of money in excess of  $10,000,000  (or its  equivalent  in any
         other  currency)  that is not  stayed  on  appeal  or  otherwise  being
         appropriately contested in good faith;

                  (k) the Unfunded  Liabilities of all Plans shall exceed in the
         aggregate   $10,000,000,   or  any  Reportable  Event  shall  occur  in
         connection  with any Plan or any  Withdrawal  Liability  in  excess  of
         $7,500,000 shall be incurred with respect to any Multiemployer  Plan or
         either Borrower or any member of the Controlled  Group has received any
         notice  concerning the imposition of Withdrawal  Liability in excess of
         $5,000,000 or a determination that a Multiemployer Plan with

         respect  to which the potential Withdrawal Liability of either Borrower
         or any member  of the Controlled  Group would exceed  $5,000,000 is, or
         is expected to be, insolvent or  in reorganization,  within the meaning
         of Title IV of ERISA;

                  (l) a Change in Control shall have occurred;

                  (m) Stilwell shall cease to own beneficially at least 66-2/3%
         of the outstanding voting securities of any of Berger, Janus or Nelson;
         or

                  (n) any Loan Document, including the Guarantee of Stilwell set
         forth in Article VIII, shall cease at any time to be valid, enforceable
         or in full force and effect, or either Borrower or any Subsidiary shall
         so assert in writing;

then,  and in every  such  event  (other  than an event  with  respect to either
Borrower  described in paragraph (g) or (h) above),  and at any time  thereafter
during the continuance of such event,  the Agent, at the request of the Required
Lenders, shall, by notice to the Borrowers, take either or both of the following
actions, at the same or different times: (i) terminate forthwith the Commitments
and (ii) declare the Loans then  outstanding  to be forthwith due and payable in
whole or in part, whereupon the principal of the Loans so declared to be due and
payable,  together with accrued interest thereon and any unpaid accrued Fees and
all other  liabilities of either Borrower accrued  hereunder and under any other
Loan  Document,  shall become  forthwith due and payable,  without  presentment,
demand,  protest  or any  other  notice of any  kind,  all of which  are  hereby
expressly  waived by each Borrower,  anything  contained  herein or in any other
Loan Document to the contrary notwithstanding;  and in any event with respect to
either Borrower  described in paragraph (g) or (h) above, the Commitments  shall
automatically  terminate  and  the  principal  of the  Loans  then  outstanding,
together with accrued interest thereon and any unpaid accrued Fees and all other
liabilities  of either  Borrower  accrued  hereunder  and  under any other  Loan
Document,  shall  automatically  become due and  payable,  without  presentment,
demand,  protest  or any  other  notice of any  kind,  all of which  are  hereby
expressly  waived by each Borrower,  anything  contained  herein or in any other
Loan Document to the contrary notwithstanding.

ARTICLE VIII.  GUARANTEE

                  In order to  induce  the  Lenders  to  extend  credit to Janus
hereunder,  Stilwell hereby  irrevocably and  unconditionally  guarantees,  as a
primary obligor and not merely as a surety,  the Obligations of Janus.  Stilwell
further agrees that the due and punctual payment of the Obligations of Janus may
be extended or renewed, in whole or in part, without notice to or further assent
from  it,  and  that  it  will  remain  bound  upon  its   guarantee   hereunder
notwithstanding any such extension or renewal of any Obligation.

                  Stilwell  waives  presentment  to,  demand of payment from and
protest to Janus of any of the Obligations, and also waives notice of acceptance
of its  obligations  and notice of protest for  nonpayment.  The  obligations of
Stilwell  hereunder  shall not be  affected  by (a) the failure of any Lender to
assert any claim or demand or to enforce any right or remedy against Janus under
the provisions of this Agreement,  any other Loan Document or otherwise; (b) any
extension  or renewal of any of the  Obligations;  (c) any  rescission,  waiver,
amendment or modification of, or release from, any of the terms or provisions of
this Agreement or any other Loan Document or agreement; (d) the failure or delay
of any Lender to exercise any right or remedy against any other guarantor of the
Obligations;  (e) the  failure of any Lender to assert any claim or demand or to
enforce any remedy under any Loan Document or any other agreement or instrument;
(f) any default,  failure or delay,  wilful or otherwise,  in the performance of
the  Obligations;  or (g) any other act,  omission  or delay to do any other act
which may or might in any manner or to any extent  vary the risk of  Stilwell or
otherwise operate as a discharge of Stilwell as a matter of law or equity.

                  Stilwell   further   agrees  that  its   guarantee   hereunder
constitutes  a promise of payment  when due  (whether or not any  bankruptcy  or
similar  proceeding  shall have stayed the accrual or  collection  of any of the
Obligations  or operated as a discharge  thereof) and not merely of  collection,
and  waives  any right to  require  that any  resort be had by any Lender to any
balance of any deposit  account or credit on the books of any Lender in favor of
Janus or any other Person.

                  The obligations of Stilwell  hereunder shall not be subject to
any reduction,  limitation,  impairment or termination for any reason, and shall
not be subject to any defense or setoff, counterclaim,

<PAGE>

recoupment or termination whatsoever, by reason of the invalidity, illegality or
unenforceability of the Obligations, any impossibility in the performance of the
Obligations or otherwise.

                  Stilwell  further agrees that its obligations  hereunder shall
continue to be  effective or be  reinstated,  as the case may be, if at any time
payment,  or any part thereof,  of any Obligation is rescinded or must otherwise
be restored by any Lender upon the bankruptcy or  reorganization of any Borrower
or otherwise.

                  In  furtherance  of the foregoing and not in limitation of any
other  right which any Lender may have at law or in equity  against  Stilwell by
virtue hereof,  upon the failure of Janus to pay any Obligation  when and as the
same shall become due,  whether at maturity,  by  acceleration,  after notice of
prepayment or otherwise,  Stilwell  hereby promises to and will, upon receipt of
written  demand by the Agent,  forthwith  pay, or cause to be paid, to the Agent
for  distribution  to the Lenders in cash an amount  equal the unpaid  principal
amount of such Obligation.

                  Upon payment in full by Stilwell of any  Obligation  of Janus,
each Lender shall, in a reasonable manner, assign to Stilwell the amount of such
Obligation  owed to such Lender and so paid,  such assignment to be pro tanto to
the extent to which the  Obligation in question was  discharged by Stilwell,  or
make such disposition  thereof as Stilwell shall direct (all without recourse to
any Lender and without any  representation  or  warranty  by any  Lender).  Upon
payment by  Stilwell  of any sums as  provided  above,  all  rights of  Stilwell
against  Janus  arising as a result  thereof by way of right of  subrogation  or
otherwise shall in all respects be  subordinated  and junior in right of payment
to the prior  indefeasible  payment in full of all the Obligations owed by Janus
to the Lenders.

ARTICLE IX.  THE AGENT

                  In order to expedite  the  transactions  contemplated  by this
Agreement,  Citibank,  N.A. is hereby appointed to act as Agent on behalf of the
Lenders.  Each of the Lenders  hereby  irrevocably  authorizes the Agent to take
such  actions on behalf of such Lender or holder and to exercise  such powers as
are specifically  delegated to the Agent by the terms and provisions  hereof and
of the other  Loan  Documents,  together  with such  actions  and  powers as are
reasonably  incidental thereto.  The Agent is hereby expressly authorized by the
Lenders, without hereby limiting any implied authority, (a) to receive on behalf
of the Lenders all  payments of  principal  of and interest on the Loans and all
other amounts due to the Lenders  hereunder,  and promptly to distribute to each
Lender  its proper  share of each  payment so  received;  (b) to give  notice on
behalf  of each of the  Lenders  to  either  Borrower  of any  Event of  Default
specified in this Agreement of which the Agent has actual knowledge  acquired in
connection  with its agency  hereunder;  and (c) to  distribute  to each  Lender
copies of all notices,  financial  statements and other  materials  delivered by
either Borrower pursuant to this Agreement as received by the Agent.

                  Neither  the  Agent  nor  any  of  its  directors,   officers,
employees  or agents  shall be liable as such for any action taken or omitted by
any of them except for its or his own gross negligence or wilful misconduct,  or
be  responsible  for any  statement,  warranty or  representation  herein or the
contents of any document  delivered in  connection  herewith,  or be required to
ascertain or to make any inquiry  concerning  the  performance  or observance by
either  Borrower  of any of  the  terms,  conditions,  covenants  or  agreements
contained  in any Loan  Document.  The  Agent  shall not be  responsible  to the
Lenders  for  the  due  execution,  genuineness,   validity,  enforceability  or
effectiveness of this Agreement or any other Loan Documents or other instruments
or  agreements.  The Agent shall in all cases be fully  protected in acting,  or
refraining from acting,  in accordance with written  instructions  signed by the
Required Lenders and, except as otherwise  specifically  provided  herein,  such
instructions and any action or inaction pursuant thereto shall be binding on all
the Lenders.  The Agent shall,  in the absence of knowledge to the contrary,  be
entitled to rely on any  instrument or document  believed by it in good faith to
be genuine and  correct and to have been signed or sent by the proper  person or
persons.  Neither the Agent nor any of its  directors,  officers,  employees  or
agents  shall  have any  responsibility  to either  Borrower  on  account of the
failure  of or  delay in  performance  or  breach  by any  Lender  of any of its
obligations  hereunder or to any Lender on account of the failure of or delay in
performance  or breach by any other  Lender or either  Borrower  of any of their
respective  obligations  hereunder  or  under  any  other  Loan  Document  or in
connection  herewith  or  therewith.  The Agent may  execute  any and all duties
hereunder by or through  agents or employees  and shall be entitled to rely upon
the advice of legal counsel  selected by it with respect to all matters  arising
hereunder and shall not be liable for any action taken or suffered in good faith
by it in accordance with the advice of such counsel.

<PAGE>

                  The Lenders hereby  acknowledge  that the Agent shall be under
no duty to take any discretionary action permitted to be taken by it pursuant to
the provisions of this  Agreement  unless it shall be requested in writing to do
so by the Required Lenders.

                  Subject to the appointment and acceptance of a successor Agent
as provided below, the Agent may resign at any time by notifying the Lenders and
the Borrowers.  Upon any such  resignation,  the Required Lenders shall have the
right,  after  consultation  with the Borrowers,  to appoint a successor.  If no
successor  shall have been so appointed  by the Required  Lenders and shall have
accepted such  appointment  within 30 days after the retiring Agent gives notice
of its  resignation,  then the  retiring  Agent may,  on behalf of the  Lenders,
appoint a successor  Agent which shall be a bank with an office in New York, New
York,  having a  combined  capital  and  surplus of at least  $50,000,000  or an
Affiliate of any such bank.  Upon the  acceptance  of any  appointment  as Agent
hereunder by a successor bank, such successor shall succeed to and become vested
with all the rights, powers, privileges and duties of the retiring Agent and the
retiring Agent shall be discharged  from its duties and  obligations  hereunder.
After the Agent's  resignation  hereunder,  the  provisions  of this Article and
Section 10.05 shall continue in effect for its benefit in respect of any actions
taken or omitted to be taken by it while it was acting as Agent.

                  With respect to the Loans made by it  hereunder,  the Agent in
its  individual  capacity and not as Agent shall have the same rights and powers
as any other  Lender and may  exercise the same as though it were not the Agent,
and the Agent and its  Affiliates may accept  deposits  from,  lend money to and
generally engage in any kind of business with the Borrowers or any Subsidiary or
other Affiliate thereof as if it were not the Agent.

                  Each Lender agrees (i) to reimburse the Agent,  on demand,  in
the amount of its pro rata share (based on its  Commitment  hereunder or, if the
Total Commitment  shall be terminated,  the percentage it holds of the aggregate
outstanding  principal  amount of the Loans) of any  expenses  incurred  for the
benefit of the Lenders by the Agent,  including counsel fees and compensation of
agents and employees paid for services rendered on behalf of the Lenders,  which
shall not have been  reimbursed  by the Borrowers and (ii) to indemnify and hold
harmless  the Agent and any of its  directors,  officers,  employees,  agents or
advisors,  on demand, in the amount of such pro rata share, from and against any
and all liabilities,  taxes, obligations,  losses, damages, penalties,  actions,
judgments,  suits,  costs,  expenses  or  disbursements  of any  kind or  nature
whatsoever  which may be imposed on,  incurred by or asserted  against it in its
capacity  as the Agent or any of them in any way  relating  to or arising out of
this  Agreement or any other Loan  Document or any action taken or omitted by it
or any of them under this  Agreement or any other Loan  Document,  to the extent
the same  shall not have been  reimbursed  by the  Borrowers;  provided  that no
Lender  shall be  liable  to the  Agent  for any  portion  of such  liabilities,
obligations,  losses,  damages,  penalties,  actions,  judgments,  suits, costs,
expenses  or  disbursements  resulting  from  the  gross  negligence  or  wilful
misconduct of the Agent or any of its directors,  officers, employees, agents or
advisors.

                  Each  Lender  acknowledges  that  it  has,  independently  and
without  reliance upon the Agent or any other Lender and based on such documents
and information as it has deemed  appropriate,  made its own credit analysis and
decision to enter into this  Agreement.  Each Lender also  acknowledges  that it
will,  independently and without reliance upon the Agent or any other Lender and
based on such  documents  and  information  as it shall  from  time to time deem
appropriate,  continue to make its own  decisions in taking or not taking action
under or based upon this  Agreement  or any other  Loan  Document,  any  related
agreement or any document furnished hereunder or thereunder.

                  Each Lender hereby  acknowledges that the documentation  agent
and the  syndication  agent have no duties or liability  hereunder other than in
their capacity as a Lender.

ARTICLE X.  MISCELLANEOUS

                  SECTION  10.01.  Notices.  Notices  and  other  communications
provided  for  herein  shall be in  writing  and shall be  delivered  by hand or
overnight  courier  service,  mailed or sent by facsimile  transmission or other
telegraphic communications equipment of the sending party, as follows:

                  (a) if  to  Stilwell, to  it  at  920 Main Street, 21st Floor,
         Kansas  City,  Missouri  64105-1808,  Attention of the Vice President -
         Finance  (Telecopy   No. (816) 218-2452),  with  a  copy  to  the  Vice
         President and Secretary (Telecopy No. (816) 218-2452);

<PAGE>

                  (b) if  to  Janus,  to  it  at 100 Fillmore Street, Denver, CO
         80206  Attention  of  Vice President - Accounting  (Telecopy  No. (303)
         394-9207) with a copy to General Counsel (Telecopy No. (308) 394-7714);

                  (c) if to the Agent, to it at Citibank, N.A.,  Two Penns  Way,
         Suite 200, New  Castle,  DE 19720, Attention of Brian Maxwell (Telecopy
         No.  (302) 894-6120)  for   Standby  Borrowings  and   for  Competitive
         Borrowings,; and

                  (d) if  to  the Swingline Lender, to it at Citibank, N.A., Two
         Penns Way,  Suite 200, New Castle, DE 19720, Attention of Brian Maxwell
         (Telecopy No. (302) 894-6120); and

                  (e) if to a Lender, to it at  its address (or telecopy number)
         set forth in its Administrative Questionnaire.

All notices and other  communications  given to any party  hereto in  accordance
with the provisions of this Agreement  shall be deemed to have been given on the
date of receipt if  delivered by hand or  overnight  courier  service or sent by
facsimile or other telegraphic communications equipment of the sender, or on the
date five  Business  Days after  dispatch by  certified  or  registered  mail if
mailed,  in each case  delivered,  sent or mailed  (properly  addressed) to such
party as  provided  in this  Section  10.01  or in  accordance  with the  latest
unrevoked direction from such party given in accordance with this Section 10.01.

                  SECTION   10.02.   Survival  of  Agreement.   All   covenants,
agreements, representations and warranties made by either Borrower herein and in
the certificates or other  instruments  prepared or delivered in connection with
or pursuant to this  Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and shall survive the making by the Lenders
of the Loans,  regardless of any  investigation  made by the Lenders or on their
behalf,  and shall continue in full force and effect as long as the principal of
or any accrued interest on any Loan or any Fee or any other amount payable under
this Agreement or any other Loan Document is outstanding  and unpaid and so long
as the Commitments have not been terminated.

                  SECTION 10.03.  Binding  Effect.  This Agreement  shall become
effective  when it shall have been  executed by the  Borrowers and the Agent and
when the Agent shall have received  copies hereof  which,  when taken  together,
bear the  signatures of each Lender,  and  thereafter  shall be binding upon and
inure to the  benefit  of the  Borrowers,  the Agent and each  Lender  and their
respective  successors and assigns,  except that neither Borrower shall have the
right to assign its rights  hereunder or any interest  herein  without the prior
consent of all the Lenders.  Delivery of an executed  signature page of any Loan
Document by facsimile  transmission shall be effective as delivery of a manually
executed counterpart thereof.

                  SECTION 10.04.  Successors  and Assigns.  (a) Whenever in this
Agreement  any of the parties  hereto is referred  to, such  reference  shall be
deemed to include the successors  and assigns of such party;  and all covenants,
promises and  agreements  by or on behalf of either  Borrower,  the Agent or the
Lenders that are contained in this Agreement shall bind and inure to the benefit
of their respective successors and assigns.

                  (b) Each Lender may assign to one or more  assignees  all or a
portion of its interests, rights and obligations under this Agreement (including
all or a portion of its  Commitment  and the Standby  Loans at the time owing to
it);  provided,  however,  that (i) each such assignment shall be to an Eligible
Assignee,  (ii) each such assignment shall be of a constant,  and not a varying,
percentage  of all the  assigning  Lender's  rights and  obligations  under this
Agreement, (iii) the amount of the Commitment of the assigning Lender subject to
each such  assignment  (determined  as of the date the Assignment and Acceptance
with  respect to such  assignment  is  delivered to the Agent) shall not be less
than  $10,000,000  (or, if less, the remaining amount of such Lender's Loans and
Commitments) and shall be an integral  multiple of $1,000,000,  (iv) the parties
to each such assignment shall execute and deliver to the Agent an Assignment and
Acceptance and a processing and  recordation fee of $3,500 if the assignee shall
not be a Lender and (v) the assignee, if it shall not be a Lender, shall deliver
to the Agent an  Administrative  Questionnaire.  Upon  acceptance  and recording
pursuant to paragraph  (e) of this Section  10.04,  from and after the effective
date specified in each Assignment and Acceptance,  which effective date shall be
at least  five  Business  Days after the  execution  thereof,  (A) the  assignee
thereunder  shall be a party hereto and, to the extent of the interest  assigned
by such Assignment and  Acceptance,  have the rights and obligations of a Lender
under this  Agreement  and (B) the assigning  Lender  thereunder  shall,  to the
extent of the interest

<PAGE>

assigned by such  Assignment and  Acceptance,  be released from its  obligations
under this Agreement (and, in the case of an Assignment and Acceptance  covering
all or the remaining  portion of an assigning  Lender's  rights and  obligations
under this  Agreement,  such Lender  shall cease to be a party hereto (but shall
continue to be entitled to the benefits of Sections 2.13,  2.15, 2.19 and 10.05,
as well as to any Fees  accrued  for its account  hereunder  and not yet paid)).
Notwithstanding  the foregoing,  any Lender assigning its rights and obligations
under this Agreement may retain any Competitive  Loans made by it outstanding at
such time, and in such case shall retain its rights  hereunder in respect of any
Loans so retained  until such Loans have been repaid in full in accordance  with
this Agreement.

                  (c) By executing and delivering an Assignment and  Acceptance,
the assigning Lender  thereunder and the assignee  thereunder shall be deemed to
confirm to and agree with each other and the other  parties  hereto as  follows:
(i) such assigning  Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its  Commitment,   and  the  outstanding  balances  of  its  Standby  Loans  and
Competitive  Loans,  in each case without giving effect to  assignments  thereof
which  have  not  become  effective,  are as set  forth in such  Assignment  and
Acceptance,  (ii) except as set forth in (i) above,  such assigning Lender makes
no representation or warranty and assumes no responsibility  with respect to any
statements,  warranties or  representations  made in or in connection  with this
Agreement, or the execution,  legality, validity,  enforceability,  genuineness,
sufficiency  or value of this  Agreement,  any other Loan  Document or any other
instrument or document furnished  pursuant hereto or the financial  condition of
the  Borrowers  or  any  Subsidiary  or the  performance  or  observance  by the
Borrowers or any Subsidiary of any of its obligations under this Agreement,  any
other Loan  Document  or any other  instrument  or document  furnished  pursuant
hereto;  (iii) such  assignee  represents  and  warrants  that it is an Eligible
Assignee and is legally authorized to enter into such Assignment and Acceptance;
(iv) such  assignee  confirms  that it has  received  a copy of this  Agreement,
together with copies of the most recent financial  statements delivered pursuant
to  Section  5.04 and such  other  documents  and  information  as it has deemed
appropriate  to make its own credit  analysis  and  decision  to enter into such
Assignment  and  Acceptance;  (v) such assignee will  independently  and without
reliance upon the Agent,  such assigning Lender or any other Lender and based on
such  documents  and  information  as it shall  deem  appropriate  at the  time,
continue to make its own credit  decisions in taking or not taking  action under
this  Agreement;  (vi) such assignee  appoints and  authorizes the Agent to take
such  action as agent on its  behalf  and to  exercise  such  powers  under this
Agreement as are delegated to the Agent by the terms hereof,  together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees that
it will perform in accordance with their terms all the obligations  which by the
terms of this Agreement are required to be performed by it as a Lender.

                  (d) The Agent shall maintain at one of its offices in The City
of New  York a copy of each  Assignment  and  Acceptance  delivered  to it and a
register for the recordation of the names and addresses of the Lenders,  and the
Commitment of, and principal  amount of the Loans owing to, each Lender pursuant
to the terms  hereof  from time to time (the  "Register").  The  entries  in the
Register shall be conclusive in the absence of manifest error and the Borrowers,
the Agent and the Lenders  may treat each  person  whose name is recorded in the
Register  pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement.  The Register shall be available for inspection by the Borrowers
and any Lender,  at any  reasonable  time and from time to time upon  reasonable
prior notice.

                  (e)  Upon  its  receipt  of a duly  completed  Assignment  and
Acceptance  executed by an assigning  Lender and an assignee and, if applicable,
the Swingline Lender, an  Administrative  Questionnaire  completed in respect of
the assignee  (unless the assignee  shall  already be a Lender  hereunder),  the
processing  and  recordation  fee  referred  to in  paragraph  (b) above and, if
required, the written consent of the Borrowers and the Agent to such assignment,
the Agent  shall (i) accept  such  Assignment  and  Acceptance,  (ii) record the
information  contained  therein in the  Register  and (iii) give  prompt  notice
thereof to the Lenders.

                  (f) Each Lender may without the consent of the Borrowers,  the
Swingline Lender or the Agent sell  participations to one or more banks or other
entities in all or a portion of its rights and obligations  under this Agreement
(including  all or a  portion  of its  Commitment  and the  Loans  owing to it);
provided, however, that (i) such Lender's obligations under this Agreement shall
remain unchanged,  (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations,  (iii) the participating
banks or other entities shall be entitled to the benefit of the cost  protection
provisions  contained in Sections  2.13,  2.15 and 2.19 to the same extent as if
they were Lenders, provided that the participating banks or other entities shall
not be entitled to receive any more than the selling  Lender would have received
had it not sold the  participation  and (iv) the  Borrowers,  the  Agent and

<PAGE>

the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations  under this Agreement,  and
such Lender  shall  retain the sole right to enforce the  obligations  of either
Borrower  relating to the Loans and to approve any  amendment,  modification  or
waiver of any provision of this Agreement (other than amendments,  modifications
or waivers  decreasing any fees payable  hereunder or the amount of principal of
or the rate at which  interest is payable on the Loans,  extending any scheduled
principal payment date or date fixed for the payment of interest on the Loans or
changing or extending the Commitments).

                  (g) Any Lender or  participant  may,  in  connection  with any
assignment or participation or proposed assignment or participation  pursuant to
this Section 10.04, disclose to the assignee or participant or proposed assignee
or participant  any information  relating to either  Borrower  furnished to such
Lender  by or on  behalf  of such  Borrower;  provided  that,  prior to any such
disclosure of information designated by such Borrower as confidential, each such
proposed assignee or participant  shall execute a  confidentiality  agreement in
the form of Exhibit E hereto.

                  (h) Notwithstanding anything to the contrary contained herein,
any Lender (a "Granting  Lender") may grant to a special purpose funding vehicle
(an "SPC") of such Granting  Lender,  identified as such in writing from time to
time by the  Granting  Lender  to the  Agent and the  Borrowers,  the  option to
provide to the Borrowers  all or any part of any Loan that such Granting  Lender
would otherwise be obligated to make to the Borrowers  pursuant to Section 2.01,
provided that (i) nothing herein shall  constitute a commitment to make any Loan
by any SPC, (ii) if an SPC elects not to exercise such option or otherwise fails
to provide all or any part of such Loan, the Granting  Lender shall be obligated
to make such Loan  pursuant to the terms  hereof  (iii) such  Granting  Lender's
other  obligations  under  this  Agreement  shall  remain  unchanged,  (iv) such
Granting Lender shall remain solely  responsible to the other parties hereto for
the  performance of such  obligations  and (v) the Borrowers,  the Agent and the
other  Lenders  shall  continue to deal solely and directly  with such  Granting
Lender in connection with such Granting  Lender's  rights and obligations  under
this  Agreement.  The making of a Loan by an SPC  hereunder  shall  utilize  the
Commitment of the Granting Lender to the same extent,  and as if, such Loan were
made by the Granting  Lender.  Each party hereto hereby agrees that no SPC shall
be liable for any indemnity or similar payment  obligation  under this Agreement
(all  liability  for which shall remain with the related  Granting  Lender).  In
furtherance of the foregoing,  each party hereto hereby agrees (which  agreement
shall survive the termination of this Agreement) that, prior to the date that is
one  year  and one day  after  the  payment  in full of all  outstanding  senior
indebtedness of any SPC, it will not institute against, or join any other person
in instituting against,  such SPC any bankruptcy,  reorganization,  arrangement,
insolvency or liquidation  proceedings or similar  proceedings under the laws of
the United States or any State thereof. In addition, notwithstanding anything to
the contrary  contained in this Section 10.04 or in Section  10.16,  any SPC may
(i) with notice to, but without the prior  written  consent of, the Borrowers or
the Agent and  without  paying  any  processing  fee  therefor,  assign all or a
portion of its interests in any Loans to its Granting Lender or to any financial
institutions  providing liquidity and/or credit facilities to or for the account
of such SPC to fund the Loans made by such SPC or to support the  securities (if
any) issued by such SPC to fund such Loans and (ii)  disclose on a  confidential
basis, to the extent such  disclosure  would be permitted under Section 10.16 as
if such SPC were a Lender, any non-public  information  relating to its Loans to
any rating agency, commercial paper dealer or provider of a surety, guarantee or
credit or liquidity enhancement to such SPC.

                  (i) Any  Lender may at any time  assign all or any  portion of
its rights under this Agreement issued to it to a Federal Reserve Bank; provided
that no such  assignment  shall  release  a Lender  from any of its  obligations
hereunder.  In order to facilitate such an assignment to a Federal Reserve Bank,
each Borrower,  shall, at the request of the assigning Lender,  duly execute and
deliver to the assigning  Lender a promissory note or notes evidencing the Loans
made to such Borrower by the assigning Lender hereunder.

                  (j)  Neither Borrower shall assign  or  delegate  any  of  its
rights or duties hereunder.

                  SECTION 10.05. Expenses;  Indemnity.  (a) Each Borrower agrees
to pay all reasonable out-of-pocket expenses incurred by the Agent in connection
with the  preparation  of this  Agreement  and the other Loan  Documents  and in
connection  with any  amendments,  modifications  or waivers  of the  provisions
hereof or thereof (whether or not the transactions  hereby contemplated shall be
consummated)  or  incurred  by the Agent or any  Lender in  connection  with the
enforcement or protection of their rights in connection  with this Agreement and
the other Loan  Documents or in  connection  with the Loans made,  including the
reasonable fees, charges and disbursements of Cravath,  Swaine & Moore,  counsel
for the Agent,  and, in

<PAGE>

connection  with any such  enforcement  or  protection,  the fees,  charges  and
disbursements  of any other  counsel for the Agent or any Lender.  Each Borrower
further  agrees that it shall  indemnify the Lenders from and hold them harmless
against any documentary  taxes,  assessments or charges made by any Governmental
Authority by reason of the  execution  and delivery of this  Agreement or any of
the other Loan Documents.

                  (b) Each Borrower  agrees to indemnify the Agent,  each Lender
and each of their respective directors, officers, employees, agents and advisors
(each  such  person  being  called an  "Indemnitee")  against,  and to hold each
Indemnitee harmless from, any and all losses, claims,  damages,  liabilities and
related expenses,  including reasonable counsel fees, charges and disbursements,
incurred  by or  asserted  against  any  Indemnitee  arising  out of, in any way
connected  with,  or as a  result  of (i)  the  execution  or  delivery  of this
Agreement  or any other Loan  Document  by such  Borrower  or any  agreement  or
instrument contemplated thereby, the performance by the parties thereto of their
respective  obligations  thereunder or the  consummation of the Transactions and
the other transactions contemplated thereby, (ii) the use of the proceeds of the
Loans  by such  Borrower  or  (iii)  any  claim,  litigation,  investigation  or
proceeding relating to any of the foregoing,  whether or not any Indemnitee is a
party thereto;  provided that such indemnity shall not, as to any Indemnitee, be
available  to the extent  that such  losses,  claims,  damages,  liabilities  or
related  expenses are determined by a court of competent  jurisdiction  by final
and  nonappealable  judgment to have resulted  from (x) the gross  negligence or
wilful  misconduct  of  such  Indemnitee  or (y)  the  material  breach  of such
Indemnitee's  obligations under this Agreement.  The Borrowers also agree not to
assert  any claim for  special,  indirect,  consequential  or  punitive  damages
against  the  Agent,  any  Lender,  any of  their  Affiliates,  or any of  their
respective directors,  officers, employees,  attorneys and agents, on any theory
of liability, arising out of or otherwise relating to this Agreement, any of the
transactions  contemplated  herein or the actual or proposed  use of proceeds of
the Loans.

                  (c)  The   provisions  of  this  Section  10.05  shall  remain
operative and in full force and effect  regardless of the expiration of the term
of this Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the invalidity or unenforceability of any term or
provision of this  Agreement or any other Loan  Document,  or any  investigation
made by or on behalf of the Agent or any  Lender.  All  amounts  due under  this
Section 10.05 shall be payable on written demand therefor.

                  SECTION 10.06.  Right of Setoff.  If an Event of Default shall
have occurred and be  continuing,  each Lender is hereby  authorized at any time
and from time to time,  to the fullest  extent  permitted by law, to set off and
apply any and all deposits (general or special,  time or demand,  provisional or
final) at any time held and other  indebtedness at any time owing by such Lender
to or for the credit or the  account of either  Borrower  against any of and all
the obligations of such Borrower now or hereafter  existing under this Agreement
and other Loan  Documents  held by such Lender,  irrespective  of whether or not
such Lender shall have made any demand  under this  Agreement or such other Loan
Document and although  such  obligations  may be  unmatured.  The rights of each
Lender  under  this  Section  are in  addition  to  other  rights  and  remedies
(including other rights of setoff) which such Lender may have.

                  SECTION 10.07.  Applicable Law.  THIS AGREEMENT AND  THE OTHER
LOAN DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK.

                  SECTION 10.08. Waivers;  Amendment. (a) No failure or delay of
the Agent or any Lender in exercising any power or right hereunder shall operate
as a waiver thereof,  nor shall any single or partial exercise of any such right
or power, or any abandonment or  discontinuance of steps to enforce such a right
or power,  preclude any other or further exercise thereof or the exercise of any
other  right or power.  The rights  and  remedies  of the Agent and the  Lenders
hereunder  and  under  the  other  Loan  Documents  are  cumulative  and are not
exclusive of any rights or remedies which they would  otherwise  have. No waiver
of any provision of this  Agreement or any other Loan Document or consent to any
departure by the Borrower  therefrom shall in any event be effective  unless the
same shall be permitted by paragraph (b) below,  and then such waiver or consent
shall be effective  only in the specific  instance and for the purpose for which
given.  No notice or demand on either  Borrower in any case shall  entitle  such
Borrower  to any  other  or  further  notice  or  demand  in  similar  or  other
circumstances.

                  (b) Neither this  Agreement  nor any  provision  hereof may be
waived,  amended or modified  except  pursuant to an agreement or  agreements in
writing  entered  into by the  Borrowers  and the

<PAGE>

Required Lenders;  provided,  however, that no such agreement shall (i) decrease
the principal  amount of, or extend the maturity of or any  scheduled  principal
payment  date or date for the payment of any  interest on any Loan,  or waive or
excuse any such payment or any part thereof, or decrease the rate of interest on
any Loan,  without the prior written  consent of each Lender  affected  thereby,
(ii)  change  or  extend  the  Commitment  or  decrease  the  Facility  Fees  or
Utilization Fees of any Lender without the prior written consent of such Lender,
(iii) amend or modify the  provisions  of Section 2.16,  the  provisions of this
Section or the  definition  of  "Required  Lenders",  without the prior  written
consent of each Lender or (iv) release the Guarantor  from its  Guarantee  under
Article VIII, or limit its liability in respect of such  Guarantee,  in any case
without the prior written consent of each Lender;  provided further that no such
agreement  shall amend,  modify or otherwise  affect the rights or duties of the
Agent or the Swingline Lender hereunder without the prior written consent of the
Agent or the Swingline Lender, as the case may be. Each Lender shall be bound by
any waiver, amendment or modification authorized by this Section and any consent
by any Lender  pursuant  to this  Section  shall  bind any  person  subsequently
acquiring a Loan from it.

                  SECTION  10.09.  Interest  Rate  Limitation.   Notwithstanding
anything  herein to the contrary,  if at any time the applicable  interest rate,
together  with all  fees  and  charges  which  are  treated  as  interest  under
applicable law  (collectively  the "Charges"),  as provided for herein or in any
other document  executed in connection  herewith,  or otherwise  contracted for,
charged,  received,  taken or reserved by any Lender,  shall  exceed the maximum
lawful rate (the "Maximum  Rate") which may be contracted for,  charged,  taken,
received or reserved by such Lender in accordance  with applicable law, the rate
of interest payable on the Loans made by such Lender,  together with all Charges
payable to such Lender, shall be limited to the Maximum Rate.

                  SECTION 10.10. Entire Agreement.  This Agreement and the other
Loan Documents  constitute the entire contract  between the parties  relative to
the subject matter hereof. Any previous agreement among the parties with respect
to the subject  matter hereof is superseded by this Agreement and the other Loan
Documents.  Nothing in this Agreement or in the other Loan Documents,  expressed
or implied,  is intended to confer upon any party other than the parties  hereto
and thereto any rights, remedies,  obligations or liabilities under or by reason
of this Agreement or the other Loan Documents.

                  SECTION 10.11.  Waiver of Jury Trial. Each party hereto hereby
waives, to the fullest extent permitted by applicable law, any right it may have
to a trial by jury in respect of any litigation  directly or indirectly  arising
out of,  under or in  connection  with this  Agreement  or any of the other Loan
Documents.  Each party hereto (a)  certifies  that no  representative,  agent or
attorney of any other party has represented,  expressly or otherwise,  that such
other party would not, in the event of litigation, seek to enforce the foregoing
waiver  and (b)  acknowledges  that it and the other  parties  hereto  have been
induced  to  enter  into  this  Agreement  and  the  other  Loan  Documents,  as
applicable,  by, among other things,  the mutual waivers and  certifications  in
this Section 10.11.

                  SECTION 10.12.  Severability.  In the event any one or more of
the provisions  contained in this Agreement or in any other Loan Document should
be held invalid, illegal or unenforceable in any respect, the validity, legality
and  enforceability  of the remaining  provisions  contained  herein and therein
shall not in any way be affected or impaired thereby. The parties shall endeavor
in  good-faith  negotiations  to replace the invalid,  illegal or  unenforceable
provisions with valid  provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

                  SECTION 10.13. Counterparts. This Agreement may be executed in
two or more counterparts,  each of which shall constitute an original but all of
which when taken  together shall  constitute but one contract,  and shall become
effective as provided in Section 10.03.

                  SECTION 10.14. Headings.  Article and Section headings and the
Table of Contents used herein are for  convenience  of reference  only,  are not
part of this Agreement and are not to affect the construction of, or to be taken
into consideration in interpreting, this Agreement.

                  SECTION  10.15.  Jurisdiction;  Consent to Service of Process.
(a) Each Borrower hereby irrevocably and unconditionally submits, for itself and
its property,  to the  nonexclusive  jurisdiction of any New York State court or
Federal court of the United States of America  sitting in New York City, and any
appellate court from any thereof,  in any action or proceeding arising out of or
relating to this Agreement or the other Loan  Documents,  or for  recognition or
enforcement of any judgment,  and each of the parties hereto hereby  irrevocably
and  unconditionally  agrees  that all claims in  respect of any such  action or
proceeding  may be heard and determined in such New York State or, to the extent
permitted by

<PAGE>

law,  in such  Federal  court.  Each of the parties  hereto  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. Nothing in this Agreement shall affect any right that any party
may otherwise have to bring any action or proceeding  relating to this Agreement
or the other Loan  Documents  against any other party or its  properties  in the
courts of any jurisdiction.

                  (b)  Each  Borrower  hereby  irrevocably  and  unconditionally
waives,  to the  fullest  extent  it may  legally  and  effectively  do so,  any
objection which 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 or the other
Loan  Documents  in any New York State or  Federal  court.  Each of the  parties
hereto 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  party to this  Agreement  irrevocably  consents  to
service of process in the manner provided for notices in Section 10.01.  Nothing
in this  Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.

                  SECTION 10.16. Confidentiality. (a) Each Lender agrees to keep
confidential  and  not to  disclose  (and  to  cause  its  officers,  directors,
employees,  agents,  Affiliates and representatives to keep confidential and not
to disclose) all Information  (as defined below),  except that such Lender shall
be permitted to disclose  Information  (i) to such of its  officers,  directors,
employees, advisors, agents, Affiliates and representatives as need to know such
Information in connection  with the servicing and protection of its interests in
respect of its Loans and Commitments,  the Loan Documents and the  Transactions;
(ii) to the  extent  required  by  applicable  laws  and  regulations  or by any
subpoena or similar  legal  process or requested by any  Governmental  Authority
having  jurisdiction over such Lender;  (iii) to the extent such Information (A)
becomes publicly  available other than as a result of a breach by such Lender of
this  Agreement,  (B) is generated  by such Lender or becomes  available to such
Lender on a  nonconfidential  basis from a source other than either  Borrower or
its  Affiliates  or  the  Agent,  or (C)  was  available  to  such  Lender  on a
nonconfidential  basis prior to its disclosure to such Lender by either Borrower
or its Affiliates or the Agent; (iv) as provided in Section 10.04(g);  or (v) to
the extent either  Borrower shall have consented to such  disclosure in writing.
As used  in this  Section  10.16,  "Information"  shall  mean  the  Confidential
Memorandum  and any other  confidential  materials,  documents  and  information
relating to either Borrower that such Borrower or any of its Affiliates may have
furnished or made  available or may hereafter  furnish or make  available to the
Agent or any Lender in connection with this Agreement.

                  (b)  Each  Transferee  shall  be  deemed,   by  accepting  any
assignment  or  participation  hereunder,  to have  agreed  to be  bound by this
Section 10.16.

                  IN WITNESS WHEREOF, Stilwell, Janus, the Agent and the Lenders
have caused this  Agreement to be duly executed by their  respective  authorized
officers as of the day and year first above written.

                                        STILWELL FINANCIAL INC.,

                                             by

                                                   /s/ Anthony P. McCarthy
                                                ----------------------------
                                                Name:   Anthony P. McCarthy
                                                Title:  Vice President - Finance

                                        JANUS CAPITAL CORPORATION,

                                             by

                                                   /s/ Matthew R. Luoma
                                                ----------------------------
                                                Name:   Matthew R. Luoma
                                                Title:  Vice President of
                                                         Accounting and Taxation

<PAGE>

                                        CITIBANK, N.A., individually and as
                                             Administrative  Agent  and  as
                                             Swingline Lender,

                                             by

                                                   /s/ Diane Ferguson
                                                ----------------------------
                                                Name:   Diane Ferguson
                                                Title:  Vice President

                                        WELLS  FARGO  BANK  WEST,  N.A. ,
                                                individually and as
                                                Documentation Agent,

                                             by

                                                   /s/ Gary D. Watkins
                                                ----------------------------
                                                Name:   Gary D. Watkins
                                                Title:  Vice President

                                        THE CHASE  MANHATTAN BANK,  individually
                                                and as Syndication Agent,

                                             by

                                                   /s/ Robert A. Krasnow
                                                ----------------------------
                                                Name:   Robert A. Krasnow
                                                Title:  Vice President

                                        BANK OF AMERICA, N..A.,

                                             by

                                                   /s/ Joan L. D'Amico
                                                ----------------------------
                                                Name:   Joan L. D'Amico
                                                Title:  Managing Director

                                        THE GOVERNOR AND COMPANY OF THE BANK OF
                                               IRELAND,

                                             by

                                                   /s/ P. Rushe
                                                ----------------------------
                                                Name:   P. Rushe
                                                Title:  Authorized signatory

                                             by

                                                   /s/ L. Molloy
                                                ----------------------------
                                                Name:   L. Molloy
                                                Title:  Manager

                                        BANK OF NEW YORK,

                                             by

                                                    /s/ Scott H. Buitekant
                                                ----------------------------
                                                Name:   Scott H. Buitekant
                                                Title:  Vice President

<PAGE>

                                        CREDIT SUISSE FIRST BOSTON,

                                             by

                                                    /s/ Andrea Shkane
                                                ----------------------------
                                                  Name:   Andrea Shkane
                                                  Title:  Vice President

                                             by

                                                   /s/ James Lee
                                                ----------------------------
                                                Name:   James Lee
                                                Title:  Assistant Vice President

                                        FIRSTAR BANK  N.A.,

                                             by

                                                   /s/ Barry P. Sullivan
                                                ----------------------------
                                                Name:   Barry P. Sullivan
                                                Title:  Vice President

                                        FLEET NATIONAL BANK,

                                             by

                                                   /s/ David A. Bosselait
                                                ----------------------------
                                                Name:   David A. Bosselait
                                                Title:  Director

                                        HSBC,

                                             by

                                                   /s/ L. Sue Lomax
                                                ----------------------------
                                                Name:   L. Sue Lomax
                                                Title:  Senior Vice President

                                        THE ROYAL BANK OF SCOTLAND plc,

                                             by

                                                   /s/ Clark McGinn
                                                ----------------------------
                                                Name:   Clark McGinn
                                                Title:  Senior Vice President

                                        STATE STREET BANK AND TRUST COMPANY,

                                             by

                                                   /s/ John Stankard
                                                ----------------------------
                                                Name:   John Stankard
                                                Title:  Vice President

                                        UMB, N.A.,

                                             by

                                                   /s/ Terry Dierks
                                                ----------------------------
                                                Name:   Terry Dierks
                                                Title:  Senior Vice President

<PAGE>

                                                                     EXHIBIT A-1

                         FORM OF COMPETITIVE BID REQUEST

Citibank, N.A., as Agent
  for the Lenders referred to below
Two Penns Way, Suite 200
New Castle, DE 19720
Attention: Brian Maxwell
                                                                          [Date]

         Re:      Five-Year Credit Agreement Referred to Below

Dear Sirs:

                  The  undersigned,   [Stilwell  Financial   Inc./Janus  Capital
Corporation] (the "Borrower"),  refers to the Five-Year  Competitive Advance and
Revolving  Credit  Facility  Agreement  dated as of  December 7, 2000 (as it may
hereafter  be amended,  modified,  extended or restated  from time to time,  the
"Credit Agreement"), among the Borrower,  [Janus/Stilwell] the Lenders from time
to time party thereto, Citibank, N.A., as Administrative Agent, Wells Fargo Bank
West, N.A., as Documentation Agent, and The Chase Manhattan Bank, as Syndication
Agent. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Credit Agreement. The Borrower hereby
gives you notice  pursuant to Section  2.03(a) of the Credit  Agreement  that it
requests  a  Competitive  Borrowing  under  the  Credit  Agreement,  and in that
connection  sets forth below the terms on which such  Competitive  Borrowing  is
requested to be made:

                  (A)  Date of Competitive Borrowing
                        (which is a Business            ----------------------

                  (B)  Principal Amount of
                        Competitive Borrowing 1         ----------------------

                  (C)  Interest rate basis 2
                                                        ----------------------

                  (D)  Interest Period and the last
                        day thereof 3                   ----------------------

                  Upon  acceptance  of any or all of the  Loans  offered  by the
Banks  in  response  to this  request,  the  Borrower  shall be  deemed  to have
represented  and warranted that the  conditions to lending  specified in Section
4.01(b), (c) and (d) of the Credit Agreement have been satisfied.

                                           Very truly yours,

                                           [STILWELL FINANCIAL INC./JANUS
                                                CAPITAL CORPORATION],

                                           by
                                                -------------------------------
                                                Title:  [Responsible Officer]

----------------------------

     1/ Not less than  10,000,000  (and in  integral  multiples  $1,000,000)  or
greater than the Total Commitment then available.

     2/ Eurodollar Loan or Fixed Rate Loan.

     3/ Which shall be subject to the  definition  of "Interest  Period" and end
not later than the Maturity Date.

<PAGE>

                                                                     EXHIBIT A-2

                    FORM OF NOTICE OF COMPETITIVE BID REQUEST

[Name of Bank]
[Address]

Attention:

                                                                          [Date]

         Re:      Five-Year Credit Agreement Referred to Below

Dear Sirs:

                  Reference  is made to the  Five-Year  Competitive  Advance and
Revolving  Credit  Facility  Agreement  dated as of  December 7, 2000 (as it may
hereafter  be amended,  modified,  extended or restated  from time to time,  the
"Credit  Agreement"),  among Stilwell Financial Inc., Janus Capital Corporation,
the Lenders from time to time party thereto,  Citibank,  N.A., as Administrative
Agent,  Wells  Fargo Bank West,  N.A.,  as  Documentation  Agent,  and The Chase
Manhattan  Bank, as  Syndication  Agent.  Capitalized  terms used herein and not
otherwise  defined herein shall have the meanings  assigned to such terms in the
Credit Agreement.  [Stilwell  Financial  Inc./Janus Capital  Corporation] made a
Competitive  Bid  Request on , 20 ,  pursuant  to Section  2.03(a) of the Credit
Agreement, and in that connection you are invited to submit a Competitive Bid by
[Date]/[Time].4  Your  Competitive  Bid must comply with Section  2.03(b) of the
Credit  Agreement  and the terms set forth  below on which the  Competitive  Bid
Request was made:

(A)  Date of Competitive Borrowing
                                           ------------------

(B)  Principal amount of
        Competitive Borrowing
                                           ------------------

(C)  Interest rate basis
                                           ------------------

(D)  Interest Period and the last
        day thereof
                                           ------------------

                                           Very truly yours,

                                           CITIBANK, N.A., as Agent,

                                           by
                                                ------------------------
                                                Title:

----------------------------

     4/ The  Competitive  Bid must be  received  by the Agent (i) in the case of
Eurodollar  Loans,  not later than 9:30 a.m., New York City time, three Business
Days before a proposed Competitive Borrowing, and (ii) in the case of Fixed Rate
Loans,  not later than 9:30 a.m.,  New York City time,  on the Business Day of a
proposed Competitive Borrowing.

<PAGE>

                                                                     EXHIBIT A-3

                             FORM OF COMPETITIVE BID

Citibank, N.A., as Agent
  for the Lenders referred to below
Two Penns Way, Suite 200
New Castle, DE 19720
Attention: Brian Maxwell

                                                                          [Date]

         Re:      Five-Year Credit Agreement Referred to Below

Dear Sirs:

                  The  undersigned,  [Name of  Bank],  refers  to the  Five-Year
Competitive Advance and Revolving Credit Facility Agreement dated as of December
7, 2000 (as it may  hereafter be amended,  modified,  extended or restated  from
time to time, the "Credit  Agreement"),  among Stilwell  Financial  Inc.,  Janus
Capital  Corporation,  the Lenders  from time to time party  thereto,  Citibank,
N.A., as  Administrative  Agent,  Wells Fargo Bank West,  N.A., as Documentation
Agent,  and The Chase Manhattan Bank, as Syndication  Agent.  Capitalized  terms
used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement.  The undersigned  hereby makes a Competitive
Bid  pursuant  to Section  2.03(b) of the Credit  Agreement,  in response to the
Competitive  Bid  Request  made  by  [Stilwell/Janus]  on ,  20 ,  and  in  that
connection sets forth below the terms on which such Competitive Bid is made:

                  (A)  Principal Amount 5
                                                         ------------------

                  (B)  Competitive Bid Rate 6
                                                         ------------------

                  (C)  Interest Period and last
                        day thereof
                                                         -----------------

                  The undersigned  hereby confirms that it is prepared,  subject
to the  conditions  set  forth in the  Credit  Agreement,  to  extend  credit to
[Stilwell/Janus]  upon acceptance by  [Stilwell/Janus] of this bid in accordance
with Section 2.03(d) of the Credit Agreement.

                                           Very truly yours,

                                           [NAME OF BANK],

                                           by
                                                --------------------------------
                                                Title:

----------------------------

     5/ Not less than  $10,000,000  or greater  than the  requested  Competitive
Borrowing  and in  integral  multiples  of  $1,000,000.  Multiple  bids  will be
accepted by the Agent.

     6/ LIBO Rate + or -     %, in the case of Eurodollar Loans or     %, in the
case of Fixed Rate Loans.

<PAGE>

                                                                     EXHIBIT A-4

                  FORM OF COMPETITIVE BID ACCEPT/REJECT LETTER

                                                                          [Date]

Citibank, N.A., as Agent
  for the Lenders referred to below
Two Penns Way, Suite 200
New Castle, DE 19720
Attention: Brian Maxwell

         Re:      Five-Year Credit Agreement Referred to Below

Dear Sirs:

                  The  undersigned,   [Stilwell  Financial   Inc./Janus  Capital
Corporation] (the "Borrower"), refers to the Five-Year Credit Agreement dated as
of  December 7, 2000 (as it may  hereafter  be  amended,  modified,  extended or
restated from time to time, the "Credit Agreement"),  among the Borrower,  Janus
Capital Corporation/Stilwell Financial Inc., the Lenders from time to time party
thereto,  Citibank,  N.A., as Administrative Agent, Wells Fargo Bank West, N.A.,
as Documentation Agent, and The Chase Manhattan Bank, as Syndication Agent.

                  In accordance with Section 2.03(c) of the Credit Agreement, we
have received a summary of bids in connection  with our  Competitive Bid Request
dated  ___________  and  in  accordance  with  Section  2.03(d)  of  the  Credit
Agreement, we hereby accept the following bids for maturity on [date]:

Principal Amount                Fixed Rate/Margin             Lender
----------------                -----------------             ------
            $                   [%]/[+/-.  %]
            $

We hereby reject the following bids:

Principal Amount                Fixed Rate/Margin             Lender
----------------                -----------------             ------
            $                   [%]/[+/-.  %]
            $

                  The $            should be deposited in Citibank, N.A. account
number [           ]on [date].

                                           Very truly yours,

                                           [STILWELL FINANCIAL INC./JANUS
                                           CAPITAL CORPORATION],

                                           by
                                                --------------------------------
                                                Name:
                                                Title:

<PAGE>

                                                                     EXHIBIT A-5

                        FORM OF STANDBY BORROWING REQUEST

Citibank, N.A., as Agent
  for the Lenders referred to below
Two Penns Way, Suite 200
New Castle, DE 19720
Attention: Brian Maxwell

                                                                          [Date]

         Re:      Five-Year Credit Agreement Referred to Below

Dear Sirs:

                  The  undersigned,   [Stilwell  Financial   Inc./Janus  Capital
Corporation] (the "Borrower"),  refers to the Five-Year  Competitive Advance and
Revolving  Credit  Facility  Agreement  dated as of  December 7, 2000 (as it may
hereafter  be amended,  modified,  extended or restated  from time to time,  the
"Credit Agreement"), among the Borrower,  [Janus/Stilwell] the Lenders from time
to time party thereto and Citibank,  N.A., as Administrative  Agent, Wells Fargo
Bank West,  N.A.,  as  Documentation  Agent,  and The Chase  Manhattan  Bank, as
Syndication  Agent.  Capitalized  terms used  herein and not  otherwise  defined
herein shall have the meanings  assigned to such terms in the Credit  Agreement.
The  Borrower  hereby  gives you notice  pursuant to Section  2.04 of the Credit
Agreement that it requests a Standby Borrowing under the Credit  Agreement,  and
in that connection sets forth below the terms on which such Standby Borrowing is
requested to be made:

                  (A)  Date of Standby Borrowing
                         (which is a Business Day)      -----------------

                  (B)  Principal Amount of
                         Standby Borrowing 7            -----------------

                  (C)  Interest rate basis 8
                                                        ------------------

                  (D)  Interest Period and the last
                         day thereof 9                  -----------------

                  Upon acceptance of any or all of the Loans made by the Lenders
in response to this request,  the Borrower  shall be deemed to have  represented
and warranted that the conditions to lending  specified in Section 4.01(b),  (c)
and (d) of the Credit Agreement have been satisfied.

                                           Very truly yours,

                                           [STILWELL FINANCIAL INC./JANUS
                                                 CAPITAL CORPORATION],

                                           by
                                                -------------------------------
                                                Title: [Responsible Officer]

----------------------------

    7/ Not less than  $5,000,000  (and in integral  multiples of $1,000,000) or
greater than the Total Commitment then available.

     8/ Eurodollar Loan or ABR Loan.

     9/ Which shall be subject to the  definition  of "Interest  Period" and end
not later than the Maturity Date.

<PAGE>

                                                                       EXHIBIT B

                                    [FORM OF]

                            ASSIGNMENT AND ACCEPTANCE

                  Reference  is made to the  Five-Year  Competitive  Advance and
Revolving  Credit  Facility  Agreement dated as of December 7, 2000 (the "Credit
Agreement"),  among  Stilwell  Financial  Inc.,  a Delaware  corporation,  Janus
Capital Corporation, a Colorado corporation, the lenders from time to time party
thereto  (the  "Lenders"),  Citibank,  N.A.,  as agent for the  Lenders (in such
capacity, the "Agent"), Wells Fargo Bank West. N.A., as Documentation Agent, and
The Chase  Manhattan  Bank, as  Syndication  Agent.  Terms defined in the Credit
Agreement are used herein with the same meanings.

                  1. The Assignor hereby sells and assigns, without recourse, to
the Assignee,  and the Assignee hereby purchases and assumes,  without recourse,
from the Assignor,  effective as of the Effective  Date set forth on the reverse
hereof, the interests set forth on the reverse hereof (the "Assigned  Interest")
in the Assignor's rights and obligations under the Credit Agreement,  including,
without  limitation,  the  interests  set  forth on the  reverse  hereof  in the
Commitment of the Assignor on the Effective Date and the  Competitive  Loans and
Standby Loans and Swingline Loans owing to the Assignor which are outstanding on
the  Effective  Date.  Each of the Assignor  and the  Assignee  hereby makes and
agrees to be bound by all the  representations,  warranties  and  agreements set
forth in  Section  10.04(c)  of the Credit  Agreement,  a copy of which has been
received by each such party.  From and after the Effective Date (i) the Assignee
shall be a party to and be bound by the provisions of the Credit  Agreement and,
to the extent of the interests assigned by this Assignment and Acceptance,  have
the rights and  obligations of a Lender  thereunder and under the Loan Documents
and (ii) the Assignor  shall,  to the extent of the  interests  assigned by this
Assignment  and  Acceptance,  relinquish  its  rights and be  released  from its
obligations under the Credit Agreement.

                  2. This  Assignment and  Acceptance is being  delivered to the
Agent  together  with  (i) if the  Assignee  is  organized  under  the laws of a
jurisdiction  outside the United States,  the forms specified in Section 2.19(f)
of the Credit Agreement,  duly completed and executed by such Assignee,  (ii) if
the  Assignee  is  not  already  a  Lender  under  the  Credit   Agreement,   an
Administrative  Questionnaire  and (iii) a  processing  and  recordation  fee of
$3,500.

                  3.  This Assignment and Acceptance shall  be governed  by  and
construed in accordance with the laws of the State of New York.

Date of Assignment:

Legal Name of Assignor:

Legal Name of Assignee:

Assignee's Address for Notices:

Effective  Date of  Assignment  (may not be fewer than 5 Business Days after the
Date of Assignment):

<PAGE>

                                                       Percentage   Assigned  of
                                                       Facility/Commitment  (set
                                                       forth,  to  at  least  8
                        Principal Amount assigned      decimals, as a percentage
                        (and identifying information   of the Facility  and  the
                        as to individual Competitive   aggregate  Commitments of
Facility                Loans)                         all  Lenders  thereunder)
--------------------    ----------------------------   -------------------------

Commitment Assigned:
                         $                                          %

Standby Loans:

Competitive Loans:

Swingline Loans:

The terms set forth above and on the reverse side
hereof are hereby agreed to:

                                           Accepted */
                                                    -

                            , as Assignor    CITIBANK, N.A., as Agent
----------------------------

By:                                          By:
   -------------------------------------      ---------------------------
   Name:                                      Name:
   Title:                                     Title:

                            , as Assignee    STILWELL FINANCIAL INC.,
----------------------------

By:                                          By:
   -------------------------------------      ---------------------------
   Name:                                      Name:
   Title:                                     Title:

                                             JANUS CAPITAL CORPORATION,

                                             By:
                                              ---------------------------
                                              Name:
                                              Title:

                                             CITIBANK ,  N.A. ,  as  Swingline
                                                Lender,

                                             By:
                                              ---------------------------
                                              Name:
                                              Title:

--------------------

 */ To be completed only if consents are required under Section 10.04(b).

<PAGE>

                                                                     Exhibit C-1

                                December 7, 2000

The Agent and the Lenders who are parties
to the Credit Agreements described below

Gentlemen:

         We have  acted as  counsel  to  Stilwell  Financial  Inc.,  a  Delaware
corporation (the "Company") in connection with the execution and delivery of the
364-Day  Competitive  Advance and Revolving  Credit  Facility  Agreement and the
Five-Year   Competitive   Advance   Credit   Facility   Agreement  (the  "Credit
Agreements")  each dated as of December 7, 2000 by and among the Company,  Janus
Capital Corporation and Citibank,  N.A. as administrative  agent for the Lenders
from time to time party thereto (the  "Agent").  All  capitalized  terms used in
this opinion without  definition  shall have the meanings  attributed to them in
the Credit Agreements.  As used herein  "Significant  Subsidiary" shall mean any
Related  Subsidiary of the Company which has assets which comprise more than 10%
of the assets of the Company and its Consolidated Subsidiaries.

         We have examined originals or copies, certified or otherwise identified
to our  satisfaction,  of such  documents,  corporate  records,  certificates of
public officials and other  instruments as we have deemed necessary or advisable
for purposes of this opinion, including:

               (i) The  Credit  Agreements  and the  notes  payable  to  certain
          Lenders  which have been  executed and delivered by the Company on the
          date hereof (the "Notes");

               (ii) The Certificate of Incorporation of the Company as certified
          by the Secretary of State of Delaware as of a recent date;

               (iii) The By-laws of the Company as in effect on the date hereof;

               (iv) The resolutions  duly adopted by a special meeting to action
          by the  Board  of  Directors  of the  Company  on  December  4,  2000,
          authorizing,  among  other  things,  that an  officer  of the  Company
          execute  and  deliver  the  Credit   Agreements   and  any   documents
          contemplated thereby;

               (v) A  certificate  issued by the  Secretary of State of Delaware
          dated  December 1, 2000, as to the good standing of the Company in the
          State of Delaware and a  certificate  issued by the Secretary of State
          of Missouri as to the  qualification  and good standing of the Company
          in the State of Missouri dated December 1, 2000; and

               (vi) The Certificate of  Incorporation  for each of the Company's
          Significant  Subsidiaries  (listed  on  Schedule  I  hereto)  and good
          standing

<PAGE>

          certificates for each of the Significant Subsidiaries (as described on
          Schedule 1 hereto).

         As to questions of fact material to the opinions set forth  herein,  we
have  relied  upon the  representations  of the  Company set forth in the Credit
Agreements,  and factual information we have obtained from such other sources as
we have deemed reasonable.  We have assumed without investigation that there has
been no  relevant  change  or  development  between  the  dates as of which  the
information  cited in the  preceding  sentence  was  given  and the date of this
letter. We have not independently verified the accuracy of the matters set forth
in the written statements or certificates upon which we have relied, nor have we
undertaken any lien,  suit or judgment  searches or searches of court dockets in
any  jurisdiction.  For  purposes of the opinion in  paragraph 1, we have relied
exclusively upon certificates issued by relevant governmental authorities in the
relevant  jurisdictions,  and  such  opinion  is not  intended  to  provide  any
conclusion or assurance beyond that conveyed by those certificates.

         We have assumed (i) the genuineness  and  authenticity of all documents
examined by us and all  signatures  thereon,  and the conformity to originals of
all copies of all documents  examined by us; (ii) that the  execution,  delivery
and/or  acceptance  of the Credit  Agreements  have been duly  authorized by all
action,  corporate  or  otherwise,  necessary  by  the  parties  to  the  Credit
Agreements  other than the  Company  (those  parties  other than the Company are
hereinafter collectively referred to as the "Other Parties") and that the Credit
Agreements  are  enforceable  against each of the Other Parties which is a party
thereto;  (iii) the legal capacity of all natural  persons  executing the Credit
Agreements;  (iv) that each of the  Other  Parties  has  satisfied  those  legal
requirements  that are  applicable  to it to the  extent  necessary  to make the
Credit Agreements  enforceable  against them; (v) that each of the Other Parties
has complied with all legal requirements pertaining to its status as such status
relates to its rights to enforce  the Credit  Agreements;  (vi) that each of the
Credit Agreements  accurately describe and contain the mutual  understandings of
the parties,  and that there are no oral or written  statements or agreements or
usages of trade or  courses  of prior  dealings  among the  parties  that  would
modify,  amend or vary any of the terms  thereof;  (vii) that the Other  Parties
will act in  accordance  with,  and will  refrain from taking any action that is
forbidden  by, the terms and  conditions  of the Credit  Agreements;  (viii) the
constitutionality or validity of a relevant statute,  rule, regulation or agency
action is not in issue;  (ix) all  agreements  other than the Credit  Agreements
which we have  reviewed  in  connection  with our letter  would be  enforced  as
written;   (x)  that  there  has  not  been  any  mutual   mistake  of  fact  or
misunderstanding, fraud, duress or undue influence; and (xi) the representations
and warranties in the Credit Agreements are accurate and complete.

         We confirm that we do not have any actual knowledge which has caused us
to  conclude  that our  reliance  and  assumptions  cited  in the two  preceding
paragraphs are  unwarranted or that any  information  supplied in this letter is
wrong.

         As used in this  opinion  with  respect to any matter,  the  qualifying
phrase "to the best of our knowledge" or "our actual  knowledge" or such similar
phrase means the conscious  awareness of facts or other  information by: (i) the
lawyer signing this opinion;  and (ii) any

<PAGE>

lawyer who has had active  involvement  in  negotiating  or preparing the Credit
Agreements. In this regard, it is noted that we have not made any special review
or  investigation  in connection  with rendering any opinion so qualified  other
than inquiry of various  officers,  in-house  legal counsel and key employees of
the Company and a review of material agreements brought to our attention.

         Based on the  foregoing,  and in reliance  thereon,  and subject to the
qualifications, limitations and exceptions stated herein, we are of the opinion,
having due regard for such legal considerations as we deem relevant, that:

     1. Each of the Company and its  Significant  Subsidiaries  and Nelson Money
Managers plc: (a) is validly existing and in good standing under the laws of its
jurisdiction  of  organization,  and (b) is  qualified  to do  business in those
jurisdictions,  if any,  identified on Schedule I attached  hereto.  Each of the
Company and its Significant  Subsidiaries has the power and authority to conduct
its businesses as now conducted.

     2. The  execution,  delivery and  performance of the Loan Documents and the
Notes are within the Company's corporate powers and have been duly authorized by
all necessary  corporate action,  and the Loan Documents and the Notes have been
duly executed and delivered by the Company.

     3. No approval, authorization, consent, adjudication or order of, or filing
with,  any  Governmental  Authority,  which has not been  obtained  or made,  is
required to be obtained or made by the Company or any Significant  Subsidiary in
connection with the execution,  delivery or performance of the Loan Documents or
in connection with the borrowings or repayments  thereof made in connection with
the Credit Agreements.

     4. The execution and delivery of the Credit Agreements and the Notes by the
Company and the  performance  by the Company of the  Obligations  have been duly
authorized by all necessary  corporate action and proceedings on the part of the
Company and do not:

          (a) require any consent of the Company's shareholders;

          (b)  violate  any  law,  rule,  regulation,   order,  writ,  judgment,
     injunction,  decree or award  binding  on the  Company  or any  Significant
     Subsidiary or the  Company's or any  Significant  Subsidiary's  articles of
     incorporation or bylaws or any indenture,  material  instrument or material
     agreement  binding upon the Company or any  Significant  Subsidiary  and of
     which we are aware; or

          (c) result in, or  require  the  creation  or  imposition  of any Lien
     pursuant  to  the  provisions  of any  indenture,  material  instrument  or
     material  agreement binding upon the Company or any Significant  Subsidiary
     and of which we are aware.

<PAGE>

     5. Each of the Loan Documents and the Notes  constitutes  the legal,  valid
and  binding  obligations  of the  Company  enforceable  against  the Company in
accordance with their respective terms.

     6. To the best of our  knowledge,  and except as disclosed in the Form 10-Q
of the Company for the fiscal  quarter  ended  September 30, 2000 filed with the
Securities  and  Exchange  Commission,  there is no action,  suit,  governmental
inquiry, investigation or other proceeding pending or overtly threatened against
the Company or any Related  Subsidiary  that,  if  adversely  determined,  could
reasonably  be  expected,  individually  or  in  the  aggregate,  to  materially
adversely  affect the business,  properties,  financial  condition or results of
operations of the Company and its  Subsidiaries  taken as a whole or the ability
of the Company to perform its  obligations  under the Credit  Agreements and the
Notes.

     7. The making of the Loans and the  application of the proceeds  thereof by
the Company as provided in the Credit  Agreements will not result in a violation
of Regulation T, U or X or the Board of Governors of the Federal Reserve Board.

     8.  Neither the Company nor any Related  Subsidiary  (other than Nelson and
Berger) is (a) an  "investment  company" as defined in, or subject to regulation
under,  the  Investment  Company  Act of 1940,  and  neither the Company nor any
Related  Subsidiary  is a  "holding  company"  as  defined  in,  or  subject  to
regulation under, the Public Utility Holding Company Act of 1935.

         Our  opinions  as  herein   expressed  are  subject  to  the  following
qualifications and limitations:

     1. Our  opinions  are  subject  to the  effect of  bankruptcy,  insolvency,
reorganization,  receivership, moratorium and other similar laws. This exception
includes:

          (a) the Federal  Bankruptcy Code and thus  comprehends,  among others,
     matters of turn-over, automatic stay, avoiding powers, fraudulent transfer,
     preference,  discharge,  conversion  of a  non-recourse  obligation  into a
     recourse claim,  limitations on ipso facto and anti-assignment  clauses and
     the coverage of  pre-petition  security  agreements  applicable to property
     acquired after a petition is filed;

          (b)   all   other   Federal   and   state   bankruptcy,    insolvency,
     reorganization,  receivership,  moratorium,  arrangement and assignment for
     the benefit of creditors laws that affect the rights of creditors generally
     or that have  reference to or affect only  creditors  of specific  types of
     debtors;

          (c) state fraudulent transfer and conveyance laws; and

          (d) judicially  developed  doctrines in this area, such as substantive
     consolidation of entities and equitable subordination.

<PAGE>

     2. Our opinions are subject to the effect of general  principles of equity,
whether  applied  by  a  court  of  law  or  equity.  This  limitation  includes
principles:

          (a) governing the  availability  of specific  performance,  injunctive
     relief or other equitable remedies, which generally place the award of such
     remedies,  subject to certain guidelines, in the discretion of the court to
     which application for such relief is made;

          (b) affording equitable defenses (e.g., waiver,  latches and estoppel)
     against a party seeking enforcement;

          (c)  requiring  good  faith and fair  dealing in the  performance  and
     enforcement of a contract by the party seeking its enforcement;

          (d) requiring  reasonableness in the performance and enforcement of an
     agreement by the party seeking enforcement of the contract;

          (e) requiring  consideration  of the  materiality  of (i) a breach and
     (ii) the consequences of the breach to the party seeking enforcement;

          (f) requiring  consideration of the  impracticability or impossibility
     of performance at the time of attempted enforcement; and

          (g)  affording  defenses  based  upon  the  unconscionability  of  the
     enforcing party's conduct after the parties have entered into the contract.

     3. Our  opinions  are  subject to the effect of the rules of law that:

          (a) limit or affect the  enforcement  of provisions of a contract that
     purport to waive,  or to require  waiver  of, (i) the  obligations  of good
     faith, fair dealing, diligence and reasonableness,  (ii) broadly or vaguely
     stated rights, (iii) statutory, regulatory or constitutional rights, except
     to the extent  that the  statute,  regulation  or  constitution  explicitly
     allows waivers; (iv) unknown future defenses; and (v) rights to damages;

          (b)  provide  that  choice  of  law,  forum   selection,   consent  to
     jurisdiction,  consent to and  specification of service of process and jury
     waiver clauses in contracts are not necessarily binding;

          (c) limit the enforceability of provisions  releasing,  exculpating or
     exempting  a party  from,  or  requiring  indemnification  of a party  for,
     liability for its own action or inaction;

<PAGE>

          (d) may, where less than all of a contract may be unenforceable, limit
     the enforceability of the balance of the contract to circumstances in which
     the unenforceable portion is not an essential part of the agreed exchange;

          (e) govern and afford judicial discretion  regarding the determination
     of damages and entitlement to attorneys' fees and other costs;

          (f) may permit a party that has  materially  failed to render or offer
     performance  required  by the  contract  to cure that  failure  unless  (i)
     permitting a cure would unreasonably hinder the aggrieved party from making
     substitute  arrangements for  performance,  or (ii) it was important in the
     circumstances  to the aggrieved  party that  performance  occur by the date
     stated in the contract; and

          (g) limit the enforceability of any provision purporting: (i) to cause
     an  indemnification,  guaranty or undertaking  to survive  repayment of the
     Loans or the  satisfaction,  foreclosure,  settlement,  discharge  or other
     termination  of the  Credit  Agreement;  (ii) to  require  the  payment  of
     interest (or discount or equivalent amounts) or any premium or "make whole"
     payment  at a rate or in an  amount,  after the  maturity  or after or upon
     acceleration of the respective liabilities evidenced or secured thereby, or
     after or during the  continuance of any default,  event of default or other
     circumstance,  or  upon  repayment,  which  a  court  may  determine  to be
     unreasonable,  a  penalty  or a  forfeiture  or (iii) to  create or waive a
     trust, agency, attorney-in-fact or other fiduciary relationship.

     4. We express no opinion as to the laws of any jurisdiction  other than the
laws of the States of  Missouri  and New York  (excluding,  in each case,  local
laws),  Delaware  corporate  laws and the federal  laws of the United  States of
America.

     5.  Except as set forth in  paragraph  7 above and to the extent  that such
issues are specifically addressed herein, we express no opinion as to any of the
following legal issues:

          (a) pension and employee benefit laws and regulations (e.g. ERISA);

          (b) compliance with fiduciary duty requirements;

          (c) Federal and state tax laws and regulations;

          (d) Federal and state laws,  regulations  and policies  concerning (I)
     national and local emergency,  (ii) possible judicial  deference to acts of
     sovereign states, and (iii) criminal civil forfeiture laws;

          (e) Federal and state securities laws and regulations; and

          (f) other  Federal and state  statutes of general  application  to the
     extent they provide for  criminal  prosecution  (e.g.,  mail fraud and wire
     fraud statutes).

<PAGE>

     6. We call  your  attention  to the  fact  that the  enforceability  of any
provision  purporting  to require any party to execute  promissory  notes in the
future is subject to general  principles of equity and the discretion of a court
of equity as to whether such a provision should be enforced.

         This  opinion is rendered on the date hereof and we have no  continuing
obligation  hereunder to inform you of changes of law or fact  subsequent to the
date hereof or facts of which we have become aware after the date  hereof.  This
opinion  covers  matters as of the date hereof and does not address events which
may take  place  after  the  date  hereof  but are  contemplated  by the  Credit
Agreements or amendments to the Credit Agreements after the date hereof.

         This opinion is limited to the matters set forth herein; no opinion may
be inferred or implied beyond the matters expressly stated in this letter.

         This  opinion is rendered  solely to you in  connection  with the above
matter.  This  opinion  may not be relied  upon by you for any other  purpose or
relied  upon by any other  Person  (other  than your  successors  and assigns as
Lenders and Persons that acquire participations in your Loans) without our prior
written consent.

                                                   Very truly yours,

                                                   SONNENSCHEIN NATH & ROSENTHAL

<PAGE>

                                   SCHEDULE I

Articles of Incorporation of Significant Subsidiaries

Stilwell Management, Inc., a Delaware corporation

Berger, LLC, a Nevada limited liability company

Good-Standing Certificates of Significant Subsidiaries

Stilwell Management, Inc.
         Long Form Good-Standing Certificate from Delaware Secretary of State
         Good-Standing Certificate from California Secretary of State
         Good-Standing Certificate from Colorado Secretary of State

Berger, LLC

         Long Form Good-Standing Certificate from Nevada Secretary of State
         Good-Standing Certificate from Colorado Secretary of State
         Good-Standing Certificate from Georgia Secretary of State

Nelson Money Managers PLC
         Good-Standing Certificate from the Companies House

<PAGE>
                                                                     Exhibit C-2

                                December 7, 2000

Addressees listed on Schedule A

  Re:      Five-Year Competitive Advance and Revolving Credit Facility Agreement

Ladies and Gentlemen:

                  This firm has acted as counsel to Janus Capital Corporation, a
Colorado   corporation  (the  "Company"),   in  connection  with  the  Five-Year
Competitive  Advance  and  Revolving  Credit  Facility  Agreement,  dated  as of
December 7, 2000 (the "Credit Agreement"), among the Company, Stilwell Financial
Inc.,  Citibank,  N.A.,  individually as Swingline Lender and as  Administrative
Agent, the Lenders from time to time party thereto, Wells Fargo Bank West, N.A.,
as Documentation Agent, and The Chase Manhattan Bank, as Syndication Agent. This
opinion letter is being furnished to you pursuant to the  requirements set forth
in  Section  4.02  of the  Credit  Agreement  in  connection  with  the  closing
thereunder on the date hereof. Capitalized terms used herein that are defined in
the Credit Agreement shall have the meanings set forth in the Credit  Agreement,
unless otherwise defined herein.

                  For purposes of this opinion  letter,  we have examined copies
of the following documents (the "Documents"):

          1. An executed copy of the Credit Agreement.

          2. Executed copies of promissory notes (the "Notes") by the Company in
             favor  of Firstar  Bank N.A.,  Fleet National Bank and State Street
             Bank  and  Trust  Company  (which  are   the  only   Lenders  which
             requested and received promissory notes from the Company).

          3. The Restated and Amended  Articles of Incorporation of the Company,
             as certified by the Secretary of State of the State of Colorado  on
             November 15, 2000 and as certified by the Secretary of the  Company
             on the date hereof as being complete, accurate and in effect.

<PAGE>

          4. The  Restated  and  Amended  Bylaws of the Company as of January 5,
             1996,  as certified  by the  Secretary of the Company  on the  date
             hereof as being complete, accurate and in effect.

          5. A  certificate  of  good  standing  of the  Company  issued  by the
             Secretary of State of  the State  of  Colorado  dated  November 14,
             2000.

          6. Certain  resolutions  of the  Board of  Directors  of  the  Company
             adopted by  unanimous  written  consent  dated  as of  December  6,
             2000,  as certified  by the  Secretary of the  Company  on the date
             hereof  as  being  complete,  accurate and  in effect,  relating to
             authorization   of   the  Credit  Agreement  and   arrangements  in
             connection therewith.

          7. Certain  certificates  of officers of the Company dated December 7,
             2000, as to certain facts relating to the Company.

          8. A certificate  of the Secretary of the Company,  dated  December 7,
             2000,  as to the  incumbency  and  signature  of  certain  officers
             of the Company.

                  The Credit Agreement and the Notes are  collectively  referred
to herein as the "Loan Documents."

                  In our  examination  of the  Credit  Agreement  and the  other
Documents, we have assumed the genuineness of all signatures, the legal capacity
of all natural  persons,  the accuracy and completeness of all of the Documents,
the  authenticity  of all  originals  of the  Documents  and the  conformity  to
authentic originals of all of the Documents submitted to us as copies (including
telecopies). As to matters of fact relevant to the opinions expressed herein, we
have relied on the representations and statements of fact made in the Documents.
We have not  independently  established  the facts so relied  on.  This  opinion
letter is given,  and all  statements  herein  are made,  in the  context of the
foregoing.

                  We  call  your   attention  to  the  fact  that  we  have  not
represented  Stilwell Financial Inc., a borrower under the Credit Agreement,  in
connection with any matter referred to in this letter or otherwise.  We have not
made any review or investigation of factual,  legal or other matters relative to
Stilwell Financial Inc. or the authority of Stilwell Financial Inc. with respect
to execution,  delivery or performance of the Loan Documents. We understand that
Sonnenschein  Nath &  Rosenthal  has  represented  Stilwell  Financial  Inc.  in
connection  with the Loan  Documents and has delivered an opinion to you on such
matters and other matters as provided in the Loan Documents.

                  For purposes of this opinion letter,  we have assumed that (i)
each party to each of the Loan  Documents has all requisite  power and authority
under all  applicable  laws,  regulations  and  governing  documents to execute,
deliver and perform its obligations under each of the Loan

<PAGE>

Documents and each of the parties to each of the Loan  Documents  other than the
Company has complied with all legal  requirements  pertaining to their status as
such  status  relates  to their  rights to  enforce  each of the Loan  Documents
against  the  Company,  (ii) each party to each of the Loan  Documents  has duly
authorized,  executed and delivered the respective  Loan  Documents,  (iii) each
party to each of the Loan Documents is validly  existing and in good standing in
all necessary  jurisdictions,  (iv) each of the Loan Documents  constitutes  the
valid and binding  obligation of each party  thereto,  enforceable  against each
such party (except that this assumption is not made with respect to the Company)
in accordance with their respective  terms, (v) there has been no mutual mistake
of fact or  misunderstanding  or fraud,  duress or undue influence in connection
with the negotiation,  execution or delivery of each of the Loan Documents,  and
the conduct of all parties to each of the Loan  Documents  has complied with any
requirements of good faith, fair dealing and  conscionability and (vi) there are
and have been no  agreements  or  understandings  among the parties,  written or
oral,  and there is and has been no usage of trade or  course  of prior  dealing
among the parties that would, in either case, define,  supplement or qualify the
terms of any of the Loan  Documents.  We have  also  assumed  the  validity  and
constitutionality of each relevant statute,  rule,  regulation and agency action
covered by this opinion letter unless a reported  decision of a federal court or
a court in the applicable  jurisdiction has established its  unconstitutionality
or invalidity.

         For the  purpose of the opinion set forth in  Paragraph  (b) below,  we
have  further  assumed that (i) no Lender is a broker or dealer under the Margin
Regulations (as defined  below);  and (ii) Margin Stock does not constitute more
than 25% of the value (as determined  pursuant to the Margin Regulations) of the
assets  subject  to the  covenants  in  Sections  6.02  and  6.04 of the  Credit
Agreement.

         This opinion  letter is based as to matters of law solely on applicable
provisions of the  following,  as currently in effect:  (i) the New York General
Obligation  Law; and (ii) as to the opinion given in Paragraph (b),  Regulations
T, U and X issued by the Board of  Governors of the Federal  Reserve  System (12
C.F.R. Parts 220, 221 and 224) (the "Margin Regulations").

                  Based upon, subject to and limited by the foregoing, we are of
the opinion that:

                  (a) Each of the Loan Documents constitutes a valid and binding
obligation of the Company,  enforceable  against the Company in accordance  with
its terms.

                  (b)  The  making  of the  Loans  and  the  application  of the
proceeds  thereof by the Company as provided  in the Credit  Agreement  will not
result in a violation of the Margin Regulations.

                  Our opinion expressed in Paragraph (a) above is subject to the
qualification  that certain  rights,  remedies,  obligations,  waivers and other
provisions of each of the Loan  Documents may not be  enforceable  in accordance
with their terms, but, subject to the exceptions,

<PAGE>

qualifications and limitations set forth elsewhere in this opinion letter,  such
unenforceability  would not render any of the Loan Documents  invalid as a whole
or preclude (i) the judicial  enforcement  of the  obligations of the Company to
pay the principal and interest on the respective Loans at the rate or rates (but
not  including  any  increase  in rate  after  default)  set forth in the Credit
Agreement,  or (ii) in circumstances in which a court will provide a remedy, the
Lenders'  right to  accelerate  and  demand  payment  of the  Loans  made to the
Company.

                  In addition to the qualifications,  exceptions and limitations
elsewhere set forth in this opinion  letter,  our opinions  expressed  above are
also  subject  to the effect of:  (i)  bankruptcy,  insolvency,  reorganization,
receivership,  moratorium or other laws affecting  creditors' rights (including,
without limitation,  the effect of statutory and other law regarding  fraudulent
conveyances,  fraudulent  transfers and  preferential  transfers);  and (ii) the
exercise of judicial  discretion  and the  application  of  principles of equity
including,  without  limitation,  requirements  of  good  faith,  fair  dealing,
reasonableness,  conscionability  and  materiality  (regardless  of whether  the
applicable agreements are considered in a proceeding in equity or at law).

                  We assume no  obligation  to advise you of any  changes in the
foregoing subsequent to the delivery of this opinion letter. This opinion letter
has been prepared  solely for your use in connection  with the closing under the
Credit  Agreement  on the date  hereof,  and should not be quoted in whole or in
part or  otherwise  be  referred  to,  nor be  filed  with or  furnished  to any
governmental agency or other person or entity, without the prior written consent
of this firm, except that your successors and assigns may rely upon this opinion
letter (it being  understood that this opinion letter speaks only as of the date
hereof, and that no such reliance will have any effect on the scope, phrasing or
originally intended use of this opinion letter).

                                                         Very truly yours,

<PAGE>

                                   Schedule A

Citibank, N.A.
Wells Fargo Bank West, N.A.
The Chase Manhattan Bank
The Board of  Governors  of the Bank of Ireland
Bank of New York
Credit  Suisse First Boston
Firstar Bank N.A.
Fleet National Bank
HSBC
The Royal Bank of Scotland plc
State Street Bank and Trust Company
UMB, N.A.

<PAGE>

                                                                    Exhibit C-2

                                December 7, 2000

Addressees listed on Schedule A

  Re:      Five-Year Competitive Advance and Revolving Credit Facility Agreement

Ladies and Gentlemen:

                  The undersigned  serves as Assistant  General Counsel to Janus
Capital Corporation, a Colorado corporation (the "Company"), and has represented
the  Company in that  capacity  in  connection  with the  Five-Year  Competitive
Advance and Revolving  Credit Facility  Agreement,  dated as of December 7, 2000
(the "Credit Agreement"),  among the Company, Stilwell Financial Inc., Citibank,
N.A., individually, as Swingline Lender and as Administrative Agent, the Lenders
from time to time party thereto,  Wells Fargo Bank West,  N.A., as Documentation
Agent, and The Chase Manhattan Bank, as Syndication  Agent.  This opinion letter
is being furnished to you pursuant to the requirements set forth in Section 4.02
of the Credit  Agreement in connection  with the closing  thereunder on the date
hereof.  Capitalized terms used herein which are defined in the Credit Agreement
shall have the  meanings  set forth in the Credit  Agreement,  unless  otherwise
defined herein.

                  For purposes of this opinion  letter,  we have examined copies
of the following documents (the "Documents"):

          1. An executed copy of the Credit Agreement.

          2. Executed copies of promissory notes (the "Notes") by the Company in
             favor of Firstar Bank N.A.,  Fleet  National Bank and  State Street
             Bank  and  Trust  Company  (which   are  the   only  Lenders  which
             requested and received promissory notes from the Company).

          3. The Restated and Amended  Articles of Incorporation of the Company,
             as certified  by the  Secretary of State of  the State  of Colorado
             on November  15, 2000 and as  certified  by  the  Secretary of the
             Company on the date  hereof as  being  complete,  accurate  and in
             effect.

<PAGE>

          4. The  Restated  and  Amended  Bylaws of the Company as of January 5,
             1996,  as certified  by the  Secretary of  the Company on  the date
             hereof as being complete, accurate and in effect.

          5. A  certificate  of  good  standing  of the  Company  issued  by the
             Secretary of  State  of  the State  of Colorado  dated November 14,
             2000.

          6. Certain  resolutions  of the  Board of  Directors  of  the  Company
             adopted  by  unanimous  written  consent  dated  as of  December 6,
             2000,  as certified  by  the  Secretary of  the Company on the date
             hereof as  being  complete,  accurate  and  in effect, relating to,
             among other  things,  authorization  of  the  Credit  Agreement and
             arrangements in connection therewith.

                  The Credit Agreement and the Notes are  collectively  referred
to herein as the "Loan Documents."

                  In my  examination  of the  Credit  Agreement  and  the  other
Documents, I have assumed the genuineness of all signatures,  the legal capacity
of all natural  persons,  the accuracy and completeness of all of the Documents,
the  authenticity  of all  originals  of the  Documents  and the  conformity  to
authentic originals of all of the Documents submitted to us as copies (including
telecopies).  As to matters of fact relevant to the opinions expressed herein, I
have relied on the representations and statements of fact made in the Documents.
I have not independently established the facts so relied on. This opinion letter
is given, and all statements herein are made, in the context of the foregoing.

                  For purposes of this opinion  letter,  I have assumed that (i)
each of the parties to each of the Loan  Documents  (other than the Company) has
all requisite  power and authority  under all applicable  laws,  regulations and
governing  documents to execute,  deliver and perform its obligations  under the
Loan Documents to which it is a party and each of such parties has complied with
all legal  requirements  pertaining  to their  status as such status  relates to
their  rights  to  enforce  each of the  Loan  Documents  to which it is a party
against the Company, (ii) each of such parties has duly authorized, executed and
delivered each of the Loan Documents to which it is a party,  (iii) each of such
parties is validly existing and in good standing in all necessary jurisdictions,
(iv) each of the Loan Documents  constitutes the valid and binding obligation of
each of the  parties  thereto,  enforceable  against  each of  such  parties  in
accordance with their respective  terms, (v) there has been no mutual mistake of
fact or  misunderstanding or fraud, duress or undue influence in connection with
the  negotiation,  execution or delivery of any of the Loan  Documents,  and the
conduct of each of the  parties to each of the Loan  Documents  to which it is a
party has  complied  with any  requirements  of good  faith,  fair  dealing  and
conscionability and (vi) there are and have been no agreements or understandings
among the parties,  written or oral, and there is and has been no usage of trade
or course of prior dealing among the parties that would, in either case, define,
supplement  or  qualify  the  terms of any of the Loan  Documents.  I

<PAGE>

have also assumed the validity and  constitutionality  of each relevant statute,
rule,  regulation  and agency  action  covered by this opinion  letter  unless a
reported  decision of a federal court or a court in the applicable  jurisdiction
has established its unconstitutionality or invalidity.

                  For purposes of the opinions set forth in  paragraphs  (d) and
(e) below, I have made the following further  assumptions:  (i) that all orders,
judgments,  decrees, agreements and contracts would be enforced as written; (ii)
that the Company will not in the future take any discretionary action (including
a decision  not to act)  permitted  under any of the Loan  Documents  that would
result in a violation of law or  constitute a breach or default under any order,
judgment,  decree, agreement or contract; (iii) that the Company will obtain all
permits and governmental  approvals required in the future, and take all actions
required,  relevant to subsequent consummation of the transactions  contemplated
under each of the Loan Documents or  performance of each of the Loan  Documents;
and (iv) that all parties to each of the Loan  Documents  will act in accordance
with,  and will refrain  from taking any action that is forbidden  by, the terms
and conditions of such Loan Documents.

                  This  opinion  letter is based as to  matters of law solely on
applicable  provisions  of the  following,  as  currently  in  effect:  (i)  the
Investment  Company Act of 1940,  as amended,  (ii) the Public  Utility  Holding
Company Act of 1935,  as amended,  (iii)  Colorado  law (but not  including  any
statutes,  ordinances,  administrative  decisions,  rules or  regulations of any
political subdivision of the State of Colorado), and (iv) federal securities and
tax laws and  regulations;  except  that I express no  opinion as to  antitrust,
unfair competition or banking laws or regulations and I express no opinion as to
any other laws, statutes, rules or regulations not specifically identified above
in clauses (i), (ii),  (iii) and (iv); it being understood that, with respect to
clauses  (iii) and (iv) above,  the opinions  expressed  herein are based upon a
review of those laws,  statutes and  regulations  that,  in my  experience,  are
generally recognized as applicable to the transactions  contemplated in the Loan
Documents.

                  Based upon, subject to and limited by the foregoing, we are of
the opinion that:

                  (a)  Each of the  Company  and  the  Related  Subsidiaries  is
validly  existing as a corporation  and in good standing in the state or country
of  incorporation  and has all requisite  authority to conduct their business in
each  jurisdiction  in which their business is conducted where the failure to do
so would  have a Material  Adverse  Effect on the  Company  or any such  Related
Subsidiary.

                  (b) The Company has the  corporate  power to execute,  deliver
and perform each of the Loan Documents. The execution,  delivery and performance
by the Company of each of the Loan  Documents  have been duly  authorized by all
necessary corporate action of the Company.

<PAGE>

                  (c)      Each of the Loan  Documents  has been  duly  executed
and  delivered  on  behalf of the Company.

                  (d) The execution,  delivery and performance by the Company of
the Loan  Documents do not (i) require any approval of the  shareholders  of the
Company or any Related Subsidiary, (ii) violate the Articles of Incorporation or
Bylaws of the Company or any Related Subsidiary,  (iii) violate any provision of
any federal statute or regulation covered by this opinion letter or any Colorado
state statute or  regulation  covered by this opinion  letter,  (iv) violate any
court or administrative  order, judgment or decree that names the Company or any
Related  Subsidiary,  (v) breach or  constitute a default under any agreement or
contract  to which the  Company or any Related  Subsidiary  is a party,  or (vi)
result in or require the  creation  or  imposition  of any Lien  pursuant to the
provisions  of any  agreement  or  contract  to which the Company or any Related
Subsidiary is a party.

                  (e) No approval or consent of, or registration or filing with,
any governmental agency is required to be obtained or made by the Company or any
Related Subsidiary in connection with the execution, delivery and performance by
the Company of the Loan Documents.

                  (f) There are no  actions,  suits or  proceedings  pending  or
overtly threatened in writing against the Company or any Related Subsidiary,  or
in which the Company or any Related  Subsidiary is a party,  before any court or
governmental  department,  commission,  board, bureau, agency or instrumentality
that, if adversely determined, would materially adversely affect the business or
financial  condition of the Company or any Related  Subsidiary or the ability of
the Company to perform its obligations under any of the Loan Documents.

                  (g) Neither the Company nor any Related  Subsidiary  is (i) an
"investment  company," as such term is defined in the Investment  Company Act of
1940, as amended,  or (ii) a "holding  company" within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

                  In addition to the qualifications,  exceptions and limitations
elsewhere set forth in this opinion  letter,  the opinions  expressed  above are
also  subject  to the effect of:  (i)  bankruptcy,  insolvency,  reorganization,
receivership,  moratorium or other laws affecting  creditors' rights (including,
without limitation,  the effect of statutory and other law regarding  fraudulent
conveyances,  fraudulent  transfers and  preferential  transfers);  and (ii) the
exercise of judicial  discretion  and the  application  of  principles of equity
including,  without  limitation,  requirements  of  good  faith,  fair  dealing,
reasonableness,  conscionability  and  materiality  (regardless  of whether  the
applicable agreements are considered in a proceeding in equity or at law).

<PAGE>

                  I assume no  obligation  to advise  you of any  changes in the
foregoing subsequent to the delivery of this opinion letter. This opinion letter
has been prepared  solely for your use in connection  with the closing under the
Credit  Agreement  on the date  hereof,  and should not be quoted in whole or in
part or  otherwise  be  referred  to,  nor be  filed  with or  furnished  to any
governmental agency or other person or entity, without my prior written consent,
except that your  successors  and assigns may rely upon this opinion  letter (it
being understood that this opinion letter speaks only as of the date hereof, and
that no such reliance will have any effect on the scope,  phrasing or originally
intended use of this opinion letter).

                                                              Very truly yours,

<PAGE>

                                   Schedule A

Citibank, N.A.
Wells Fargo Bank West, N.A.
The Chase Manhattan Bank
The Board of  Governors of the Bank of Ireland
Bank of New York
Credit  Suisse First Boston
Firstar Bank N.A.
Fleet National Bank
HSBC
The Royal Bank of Scotland plc
State Street Bank and Trust Company
UMB, N.A.

<PAGE>

                                                                       EXHIBIT D

                                    [FORM OF]

                             COMPLIANCE CERTIFICATE

To:      The Lenders party to the
         Credit Agreement described below

         care of

         Citibank, N.A., as Agent

         for the Lenders referred to below
         399 Park Avenue
         New York, NY 10043
         Attention:  Diane Ferguson

                      Matthew Nicholls

                  This  Compliance  Certificate  is  furnished  pursuant  to the
Five-Year Credit Agreement dated as of December 7, 2000 (the "Agreement"), among
Stilwell Financial Inc.  ("Stilwell"),  Janus Capital  Corporation,  the Lenders
from time to time party  thereto,  Citibank,  N.A.,  as Agent,  Wells Fargo Bank
West, N.A., as Documentation Agent, and The Chase Manhattan Bank, as Syndication
Agent.  Unless  otherwise  defined  herein,  the terms  used in this  Compliance
Certificate have the meanings assigned to them in the Agreement.

                  THE UNDERSIGNED HEREBY CERTIFIES THAT:

                  1.  I am the duly elected chief financial officer of Stilwell;

                  2. I have reviewed the terms of the Agreement and I have made,
or have  caused  to be made  under my  supervision,  a  detailed  review  of the
transactions  and  conditions of the Borrowers and the  Subsidiaries  during the
accounting period covered by the attached financial statements;

                  3. The form  attached  hereto  sets forth  financial  data and
computations  evidencing the Borrowers' and the  Subsidiaries'  compliance  with
certain covenants of the Agreement, including Section 6.01(iv) and Section 6.07,
all of which data and computations are true, complete and correct; and

                  4. The examinations described in paragraph 2 did not disclose,
and I have no  knowledge  of, the  existence  of any  condition  or event  which
constitutes  a  Default  or an  Event  of  Default  during  or at the end of the
accounting period covered by the attached financial statements or as of the date
of this Compliance Certificate, except as set forth below:

                  [Describe the exceptions by listing,  in detail, the nature of
                  the condition or event, the period during which it has existed
                  and the action which the Borrowers have taken,  is taking,  or
                  proposes to take with respect to each such condition or event]

                  The foregoing  certifications,  together with the computations
required by the Credit  Agreement  attached hereto and the financial  statements
delivered  with this  Compliance  Certificate  in support  hereof,  are made and
delivered this     day of        , 20  .

                                      -------------------------------------
                                      Name:
                                      Title:

<PAGE>

                                                                       EXHIBIT E

               [Letterhead of Prospective Assignee or Participant]

                                    [FORM OF]

                            CONFIDENTIALITY AGREEMENT

                                                                          [Date]

Citibank, N.A., as Agent
  for the Lenders referred to below
Two Penns Way, Suite 200
New Castle, DE 19720
Attention: Brian Maxwell

                             Stilwell Financial Inc.
                            Janus Capital Corporation
                            Confidentiality Agreement

Dear Sirs:

                  In connection with our possible  acquisition of an interest in
the  credit  facility  (the  "Facility")  established  by the  Five-Year  Credit
Agreement dated as of December 7, 2000,  among the Borrowers as defined therein,
the lenders from time to time party thereto (the "Lenders"),  Citibank, N.A., as
Agent,  Wells  Fargo Bank West,  N.A.,  as  Documentation  Agent,  and The Chase
Manhattan  Bank,  as  Syndication  Agent,  you, the  Borrowers or any Lender may
furnish  us  with  confidential   documents,   materials  and  information  (the
"Information") relating to the Borrowers.

                  We  agree to keep  confidential  and not to  disclose  (and to
cause our officers, directors, employees, agents, Affiliates and representatives
to keep  confidential  and not to  disclose)  and,  at the request of you or the
Borrowers,  promptly  to return  or  destroy,  the  Information  and all  copies
thereof,  extracts  therefrom  and analyses or other  materials  based  thereon,
except that we shall be  permitted  to disclose  Information  (i) to such of our
officers, directors, employees, advisors, agents, Affiliates and representatives
as need to know such  Information in connection with such  acquisition;  (ii) to
the extent  required by applicable  laws and  regulations  or by any subpoena or
similar  legal  process,  or requested by any  governmental  agency or authority
having  jurisdiction  over us; (iii) to the extent such  Information (A) becomes
publicly  available other than as a result of a breach by us of this letter, (B)
is generated by us or becomes available to us on a nonconfidential  basis from a
source other than you, the Borrowers or any Lender or (C) was available to us on
a  nonconfidential  basis prior to its disclosure to us by you, the Borrowers or
any Lender;  or (iv) to the extent the Borrowers shall have consented in writing
to such disclosure.

                  Notwithstanding  anything to the contrary  contained above, we
shall be entitled to retain all Information to use for the administration of our
interests and the protection of our rights under the Facility.

<PAGE>

                  The  Borrower  shall  be a  third  party  beneficiary  of this
Agreement.

                                Very truly yours,

                                [Name of potential
                                participant/assignee]

                                   by
                                        ---------------------------------
                                        Name:
                                        Title:

<PAGE>

                                                                   SCHEDULE 2.01

                                   Commitments
                                   -----------
Name of Lender                                                      Commitment
--------------                                                    --------------

Citibank, N.A.                                                       $37,500,000

Wells Fargo Bank West, N.A.                                          $35,000,000

The Chase Manhattan Bank                                             $37,500,000

Bank of America, N.A.                                                $23,000,000

Bank of Ireland                                                       $5,000,000

Bank of New York                                                     $35,000,000

Credit Suisse First Boston                                           $11,500,000

Firstar Bank, N.A.                                                   $23,000,000

Fleet National Bank                                                  $23,000,000

HSBC                                                                 $11,500,000

The Royal Bank of Scotland                                           $11,500,000

State Street Bank and Trust Company                                  $35,000,000

UMB, N.A.                                                            $11,500,000
                                                                     -----------

Total Commitment                                                    $300,000,000

<PAGE>

                            STILWELL FINANCIAL INC.
                   FIVE-YEAR COMPETITIVE ADVANCE AND REVOLVING
                            CREDIT FACILITY AGREEMENT
                                  SCHEDULE 3.08
                                   LITIGATION
                               (See Section 3.08)

                                      None

<PAGE>

                             STILWELL FINANCIAL INC.
                   FIVE-YEAR COMPETITIVE ADVANCE AND REVOLVING
                            CREDIT FACILITY AGREEMENT
                                  SCHEDULE 3.15
                              DIVIDEND RESTRICTIONS
                               (See Section 3.15)

                                      None

<PAGE>

                             STILWELL FINANCIAL INC.
                   FIVE-YEAR COMPETITIVE ADVANCE AND REVOLVING
                            CREDIT FACILITY AGREEMENT
                                  SCHEDULE 6.01
                                  INDEBTEDNESS
                               (See Section 6.01)

                                      None

<PAGE>

                             STILWELL FINANCIAL INC.
                   FIVE-YEAR COMPETITIVE ADVANCE AND REVOLVING
                            CREDIT FACILITY AGREEMENT
                                  SCHEDULE 6.02
                                      LIENS
                               (See Section 6.02)

                                      NoneSTILWELL FINANCIAL INC.

                       1998 Long Term Incentive Stock Plan

           (as amended and restated effective as of January 18, 2001)

<PAGE>

                                Table of Contents

Article                                                                     Page

1.  History, Effective Date, Objectives and Duration........................  1

2.  Definitions.............................................................  1

3.  Administration..........................................................  8

4.  Shares Subject to the Plan and Maximum Awards........................... 10

5.  Eligibility and General Conditions of Awards............................ 11

6.  Stock Options........................................................... 15

7.  Stock Appreciation Rights and Limited Stock Appreciation Rights......... 18

8.  Restricted Shares....................................................... 19

9.  Performance Units and Performance Shares................................ 20

10.  Bonus Shares........................................................... 21

11.  Beneficiary Designation................................................ 22

12.  Deferrals.............................................................. 22

13.  Rights of Employees/Directors/Consultants.............................. 22

14.  Change of Control...................................................... 23

15.  Amendment, Modification, and Termination............................... 24

16.  Withholding............................................................ 24

17.  Successors............................................................. 26

18.  Additional Provisions.................................................. 26

<PAGE>

                             Stilwell Financial Inc.
                       1998 Long Term Incentive Stock Plan

           (AS AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 18, 2001)

Article 1.   History, Effective Date, Objectives and Duration

        1.1           History.  Stilwell  Financial Inc., a Delaware corporation
(the  "Company"),  has  established  the Stilwell  Financial Inc. 1998 Long Term
Incentive  Stock Plan, as set forth herein,  and as the same may be amended from
time to time  (the  "Plan").  The Plan was  originally  adopted  by the Board of
Directors of the Company (the "Board") and approved by the sole  stockholder  of
the  Company,  Kansas  City  Southern  Industries,  Inc.  ("KCSI")  and  by  the
stockholders  of KCSI on July 15, 1998,  to be effective as of June 1, 1998 (the
"Effective  Date").  Effective as of August 11, 1999, the Board amended  Section
2.14 of the Plan,  renamed the Plan and restated the Plan,  as so amended as set
forth herein.  Then  effective as of June 15, 2000,  the Board amended  Sections
2.51, 5.7 and 15.1 of the Plan and restated the Plan, as so amended as set forth
herein.  Then  effective as of January 18, 2001,  the  Stilwell  Financial  Inc.
Compensation  Committee  amended  Sections 2.42, 2.51 and 5.6(d) of the Plan and
restated the Plan, as so amended as set forth herein.

        1.2           Objectives  of  the  Plan.  The  Plan is intended to allow
employees,  directors and  consultants  of the Company and its  Subsidiaries  to
acquire or increase equity ownership in the Company, thereby strengthening their
commitment to the success of the Company and stimulating their efforts on behalf
of the Company, and to assist the Company and its Subsidiaries in attracting new
employees, directors and consultants and retaining existing employees, directors
and  consultants.  The Plan also is intended to optimize the  profitability  and
growth of the Company through incentives which are consistent with the Company's
goals; to provide  employees,  directors and  consultants  with an incentive for
excellence in individual  performance;  and to promote teamwork among employees,
directors and consultants.

        1.3           Duration  of  the Plan.  The  Plan  shall commence  on the
Effective Date and shall remain in effect,  subject to the right of the Board to
amend or terminate the Plan at any time pursuant to Article 15 hereof, until all
Shares  subject to it shall have been  purchased  or acquired  according  to the
Plan's provisions. However, in no event may an Incentive Stock Option be granted
under the Plan on or after the date 10 years  following  the  earlier of (i) the
date the  Plan was  adopted  and  (ii)  the  date the Plan was  approved  by the
stockholders of the Company.

Article 2.   Definitions

        Whenever used in the Plan,  the following  terms shall have the meanings
set forth below:

        2.1           "Article" means an Article of the Plan.

        2.2           "Award" means Options (including Incentive Stock Options),
Restricted Shares, Bonus Shares, stock appreciation rights (SARs), limited stock
appreciation  rights (LSARs),  Performance  Units or Performance  Shares granted
under the Plan.

<PAGE>

        2.3           "Award Agreement" means the written agreement by  which an
Award shall be evidenced.

        2.4           "Board" has the meaning set forth in Section 1.1.

        2.5 "Bonus  Shares"  means Shares that are awarded to a Grantee  without
cost and  without  restrictions  in  recognition  of past  performance  (whether
determined  by  reference  to another  employee  benefit  plan of the Company or
otherwise)  or as an incentive to become an employee,  director or consultant of
the Company or a Subsidiary.

        2.6           "Cause" means, unless otherwise defined in an Award
Agreement,

               (i)  before the occurrence of a Change of  Control,  any  one  or
more of the following,  as determined by the Committee:

                      (A) a  Grantee's  commission  of  a  crime  which,  in the
        judgment of the  Committee,  resulted or is  likely to result in  damage
        or injury to the Company or a Subsidiary;

                      (B) the material  violation by the Grantee of written
        policies of the Company or a Subsidiary;

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

                      (D) action or inaction  by the Grantee in connection  with
        his or her  duties to the  Company  or a  Subsidiary  resulting,  in the
        judgment  of the  Committee,  in  material  injury to the  Company  or a
        Subsidiary; and

               (ii) from and after the  occurrence  of a Change of Control,  the
occurrence of any one or more of the following,  as determined in the good faith
and reasonable judgment of the Committee:

                      (A) Grantee's  conviction  for committing an act of fraud,
        embezzlement,  theft, or any other act  constituting a felony  involving
        moral  turpitude  or causing  material  damage or injury,  financial  or
        otherwise, to the Company;

                      (B) a  demonstrably  willful and deliberate act or failure
        to act which is committed in bad faith,  without  reasonable belief that
        such action or inaction is in the best  interests of the Company,  which
        causes material damage or injury, financial or otherwise, to the Company
        (but only if such act or  inaction  is not  remedied  within 15 business
        days of  Grantee's  receipt of written  notice  from the  Company  which
        describes the act or inaction in reasonable detail); or

                                       2
<PAGE>

                      (C) the  consistent  gross neglect of duties or consistent
        wanton  negligence  by the Grantee in the  performance  of the Grantee's
        duties (but only if such neglect or negligence is not remedied  within a
        reasonable  remedial  period after  Grantee's  receipt of written notice
        from  the  Company  which   describes  such  neglect  or  negligence  in
        reasonable detail and specifies the remedial period).

        2.7      "Change of Control" means, unless otherwise defined in an Award
Agreement,  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 1934 Act), other than
by the Company or any Subsidiary or any employee  benefit plan of the Company or
a  Subsidiary  (and other than by KCSI prior to the Spin-off  Distribution),  of
beneficial  ownership  (within  the meaning of Rule 13d-3 under the 1934 Act) of
20% or more of the then-outstanding  Common Stock or the then-outstanding Voting
Power of the Company;  provided,  however, that no Change of 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 the Company  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 the Company; or

               (ii)   individuals   who,   as  of  the  date  of  the   Spin-off
Distribution,  constitute the Board (the "Incumbent Board") cease for any reason
to  constitute  at least 75% of the  Board;  provided  that any  individual  who
becomes a director  after the Effective  Date whose  election or nomination  for
election  by the  Company's  stockholders  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 the Company (as
such terms are used in Rule  14a-11  under the 1934 Act) or  "tender  offer" (as
such term is used in Section 14(d) of the 1934 Act) or a proposed  Extraordinary
Transaction  (as defined below)) shall be deemed to be a member of the Incumbent
Board; or

               (iii)  approval by the stockholders of the Company of any  one or
more of the following:

                      (A) a  merger,  reorganization,  consolidation  or similar
transaction (any of the foregoing, an "Extraordinary  Transaction") with respect
to  which   persons   who  were  the   respective   beneficial   owners  of  the
then-outstanding Common Stock and Voting Power of the Company immediately before
such Extraordinary Transaction would not, if such Extraordinary Transaction were
to be consummated  immediately after such stockholder approval (but otherwise in
accordance  with the terms  presented  in  writing  to the  stockholders  of the
Company for their approval), 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

                                       3
<PAGE>

Transaction,   in  substantially   the  same  proportions  as  their  respective
ownership,   immediately   before  such   Extraordinary   Transaction,   of  the
then-outstanding Common Stock and Voting Power of the Company,

                      (B) a liquidation or dissolution of the Company, or

                      (C) the sale or other  disposition of all or substantially
all  of  the  assets  of the  Company in  one transaction or a series of related
transactions.

        2.8           "Change of Control  Value"  means the Fair Market Value of
a Share on the date of a Change of Control.

        2.9           "Code" means the Internal Revenue Code of 1986, as amended
from time to time,  and  regulations  and rulings  thereunder.  References  to a
particular section of the Code include references to successor provisions of the
Code or any successor code

        2.10          "Committee," "Plan Committee" and  "Management  Committee"
have the meanings set forth in Article 3.

        2.11          "Common Stock" means the common stock, $.01 par value, of
the Company.

        2.12          "Company" has the meaning set forth in Section 1.1.

        2.13  "Covered  Employee"  means a Grantee  who, as of the date that the
value of an Award is  recognizable  as  taxable  income,  is one of the group of
"covered employees," within the meaning of Code Section 162(m).

        2.14 "Disability" means, unless otherwise defined in an Award Agreement,
for purposes of the exercise of an Incentive  Stock Option after  Termination of
Affiliation,  a disability  within the meaning of Section  22(e)(3) of the Code,
and for all other purposes, means total disability as determined for purposes of
the long term disability plan of Stilwell or any Subsidiary or other employer of
the Grantee and disability  shall be deemed to occur for purposes of the Plan on
the date such determination of disability is made.

        2.15          "Disqualifying Disposition" has the meaning  set  forth in
Section 6.4.

        2.16          "Effective Date" has the meaning set forth in Section 1.1.

        2.17          "Eligible Person" means (i) any employee (including any
officer) of the Company or any Subsidiary, including any such employee who is on
an approved leave of absence,  layoff, or has been subject to a disability which
does not  qualify  as a  Disability,  (ii) any  director  of the  Company or any
Subsidiary  and  (iii) any  person  performing  services  for the  Company  or a
Subsidiary in the capacity of a consultant. Solely for purposes of granting KCSI
Substitute Options

                                       4
<PAGE>

(as defined in Section 6.3),  Eligible  Person shall also include any person who
holds a KCSI  Option  (as  defined  in  Section  6.3) as of the date that a KCSI
Substitute Option is granted.

        2.18          "Exchange  Act" means the Securities Exchange Act of 1934,
as amended from time to time. References to a particular section of the Exchange
Act include references to successor provisions.

        2.19          "Extraordinary Transaction" has the meaning set forth in
Section 2.7.

        2.20          "Fair Market Value" means (A) with respect to any property
other than Shares,  the fair market value of such  property  determined  by such
methods  or  procedures  as  shall  be  established  from  time  to  time by the
Committee,  and (B) with respect to Shares,  unless otherwise  determined by the
Committee, as of any date, (i) the average of the high and low trading prices on
the date of  determination  on the New York Stock  Exchange  (or,  if no sale of
Shares was reported for such date, on the next preceding date on which a sale of
Shares  was  reported);  (ii) if the Shares are not listed on the New York Stock
Exchange,  the average of the high and low trading  prices of the Shares on such
other  national  exchange  on which  the  Shares  are  principally  traded or as
reported by the National Market System, or similar  organization,  or if no such
quotations are available,  the average of the high bid and low asked  quotations
in the  over-the-counter  market as reported by the  National  Quotation  Bureau
Incorporated or similar organizations; or (iii) in the event that there shall be
no  public  market  for the  Shares,  the fair  market  value of the  Shares  as
determined by the Committee.

        2.21          "Freestanding  SAR"  means  an  SAR  that  is  granted
independently of any other Award.

        2.22          "Good  Reason"  means,   unless  otherwise  defined  in an
Award Agreement,  the occurrence after a Change of Control,  without a Grantee's
prior written consent, of any one or more of the following:

               (i) the assignment to the Grantee of any duties which result in a
        material  adverse change in the Grantee's  position  (including  status,
        offices,  titles,  and reporting  requirements),  authority,  duties, or
        other  responsibilities  with the  Company,  or any other  action of the
        Company which  results in a material  adverse  change in such  position,
        authority, duties, or responsibilities,  other than an insubstantial and
        inadvertent  action  which is  remedied by the  Company  promptly  after
        receipt of notice thereof given by the Grantee,

               (ii) any relocation of the Grantee of more than 40 miles from the
        place  where  the  Grantee  was  located  at the time of the  Change  of
        Control, or

               (iii) a material reduction or elimination of any component of the
        Grantee's  rate of  compensation,  including  (x) base  salary,  (y) any
        incentive  payment or (z) benefits or perquisites  which the Grantee was
        receiving immediately prior to a Change of Control.

                                       5
<PAGE>

        2.23          "Grant Date" has the meaning set forth in Section 5.2.

        2.24          "Grantee"  means  an  individual  who  has been granted an
Award.

        2.25          "Incentive  Stock  Option"  means  an option granted under
Article 6 of the Plan that is intended to meet the  requirements  of Section 422
of the Code or any successor provisions thereto.

        2.26          "including"  or "includes"  means  "including,  without
limitation,"  or "includes, without limitation," respectively.

        2.27          "LSAR" means a limited stock appreciation right.

        2.28          "Mature  Shares" means Shares for which the holder thereof
has good  title,  free and clear of all liens and  encumbrances,  and which such
holder  either (i) has held for at least six months or (ii) has purchased on the
open market.

        2.29          "Minimum Consideration" means $.01 per Share or such other
amount  that  is from  time  to  time  considered  to be capital for purposes of
Section 154 of the Delaware General Corporation Law.

        2.30          "Option" means  an  option  granted under Article 6 of the
Plan.

        2.31          "Option  Price"  means  the price at which a Share  may be
purchased  by a Grantee pursuant to an Option.

        2.32          "Option Term" means the period beginning on the Grant Date
of an Option and ending on the expiration  date of such Option,  as specified in
the Award  Agreement for such Option and as may,  consistent with the provisions
of the  Plan,  be  extended  from  time to time by the  Committee  prior  to the
expiration date of such Option then in effect.

        2.33          "Outside  Director"  means a  member  of the  Board who is
not an  employee  of the Company or any Subsidiary.

        2.34          "Performance-Based  Exception" means the performance-based
exception from the tax deductibility limitations of Code Section 162(m).

        2.35          "Performance Period" has the meaning set forth in Section
9.2.

        2.36          "Performance Share" or "Performance Unit" has  the meaning
set forth in Article 9.

        2.37          "Period of Restriction"  means the period during which the
transfer of  Restricted  Shares is limited in some way (the length of the period
being based on the passage of time, the

                                       6
<PAGE>

achievement  of  performance  goals,  or upon the  occurrence of other events as
determined by the Committee),  and the Shares are subject to a substantial  risk
of forfeiture, as provided in Article 8.

        2.38          "Person"  shall have the meaning  ascribed to such term in
Section  3(a)(9)  of the  Exchange  Act and used in  Sections  13(d)  and  14(d)
thereof, including a "group" as defined in Section 13(d) thereof.

        2.39          "Plan" has the meaning set forth in Section 1.1.

        2.40          "Required  Withholding"  has  the  meaning  set  forth  in
Article 16.

        2.41          "Restricted  Shares"  means  Shares  that  are  subject to
forfeiture if the Grantee does not satisfy the conditions specified in the Award
Agreement applicable to such Shares.

        2.42          "Retirement"  means,  for any  Grantee  who is a  director
of the company or an employee,  Termination  of  Affiliation by the Grantee upon
either (i) having both attained age  fifty-five  (55) and completed at least ten
(10)  years of  service  with the  Company  or a  Subsidiary  or a  Consolidated
Subsidiary,  including any years of service such employee may have had with KCSI
or (ii) meeting such other requirements as may be specified by the Committee.

        2.43          "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under
the Exchange  Act, as amended  from time to time,  together  with any  successor
rule, as in effect from time to time.

        2.44          "SAR" means a stock appreciation right.

        2.45          "SEC"  means  the  United  States  Securities and Exchange
Commission,  or any successor thereto.

        2.46          "Section" means, unless  the context otherwise requires, a
Section of the Plan.

        2.47          "Section  16 Person"  means a person  who  is  subject  to
potential  liability  under  Section  16(b)  of the 1934  Act  with  respect  to
transactions involving equity securities of the Company.

        2.48          "Share" means a share of Common Stock.

        2.49          "Spin-off  Distribution" means the distribution by KCSI of
at least 80% of the outstanding  Shares, as a result of which the Company ceases
to be a subsidiary of KCSI.

        2.50 "Strike Price" of any SAR shall equal,  for any Tandem SAR (whether
such Tandem SAR is granted at the same time as or after the grant of the related
Option), the Option Price of such Option, or for any other SAR, 100% of the Fair
Market  Value  of a Share  on the  Grant  Date of such  SAR;  provided  that the
Committee may specify a higher Strike Price in the Award Agreement.

                                       7
<PAGE>

        2.51          "Subsidiary"  means,  for  purposes of grants of Incentive
Stock Options,  a corporation as defined in Section 424(f) of the Code (with the
Company  being  treated  as  the  employer  corporation  for  purposes  of  this
definition) and, for all other purposes,  a United States or foreign corporation
or limited liability  company,  partnership or other similar entity with respect
to  which  the  Company  owns,  directly  or  indirectly,  50% (or  such  lesser
percentage as the Committee may specify,  which  percentage  may be changed from
time to time and may be different for different  entities) or more of the Voting
Power of such  corporation,  limited  liability  company,  partnership  or other
similar  entity  and  "Consolidated  Subsidiary"  means  a  Subsidiary  that  is
consolidated with the Company for financial reporting purposes.

        2.52          "Tandem  SAR" means an SAR that is granted  in  connection
with a related Option,  the exercise of which shall require  cancellation of the
right  to  purchase  a Share  under  the  related  Option  (and  when a Share is
purchased under the related Option, the Tandem SAR shall similarly be canceled).

        2.53          "Termination of  Affiliation"  occurs on the first day  on
which an  individual  is for any  reason no  longer  providing  services  to the
Company  or  any  Subsidiary  in  the  capacity  of  an  employee,  director  or
consultant,  or with respect to an individual who is an employee or director of,
or consultant  to, a corporation  which is a Subsidiary,  the first day on which
such corporation ceases to be a Subsidiary.

        2.54          "10%  Owner"  means  a  person  who  owns   capital  stock
(including  stock treated as owned under Section 424(d) of the Code)  possessing
more than 10% of the total combined voting power of all classes of capital stock
of the Company or any Subsidiary.

        2.55          "Voting   Power"   means  the   combined   voting power of
the  then-outstanding  securities of a corporation entitled to vote generally in
the election of directors.

Article 3.   Administration

        3.1           Committee.

               (a) Subject to Article 15, and to Section  3.2, the Plan shall be
administered by the Board,  or a committee  appointed by the Board to administer
the Plan ("Plan  Committee").  To the extent the Board considers it desirable to
comply with or qualify under Rule 16b-3 or meet the Performance-Based Exception,
the Plan Committee shall consist of two or more directors of the Company, all of
whom qualify as "outside  directors" as defined for purposes of the  regulations
under Code Section  162(m) and  "non-employee  directors"  within the meaning of
Rule 16b-3.  The number of members of the Plan Committee shall from time to time
be increased or decreased, and shall be subject to such conditions, in each case
as the Board deems appropriate to permit  transactions in Shares pursuant to the
Plan to  satisfy  such  conditions  of  Rule  16b-3  and  the  Performance-Based
Exception as then in effect.

                                       8
<PAGE>

               (b) The Board or the Plan  Committee  may appoint and delegate to
another  committee  ("Management  Committee") any or all of the authority of the
Board or the Plan Committee,  as applicable,  with respect to Awards to Grantees
other than  Grantees  who are Section 16 Persons at the time any such  delegated
authority is exercised.

               (c) Any references  herein to  "Committee"  are references to the
Board, or the Plan Committee or the Management Committee, as applicable.

        3.2           Powers of Committee.  Subject to the express provisions of
the Plan,  the  Committee has full and final  authority  and sole  discretion as
follows:

               (i) to  determine  when,  to whom and in what  types and  amounts
Awards should be granted and the terms and conditions  applicable to each Award,
including the benefit  payable under any SAR,  Performance  Unit or  Performance
Share,  and whether or not specific  Awards shall be granted in connection  with
other specific Awards, and if so whether they shall be exercisable  cumulatively
with, or alternatively to, such other specific Awards;

               (ii) to determine  the amount,  if any,  that a Grantee shall pay
for  Restricted  Shares,  whether  to  permit or  require  the  payment  of cash
dividends thereon to be deferred and the terms related thereto,  when Restricted
Shares  (including  Restricted  Shares  acquired upon the exercise of an Option)
shall be forfeited and whether such shares shall be held in escrow;

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

               (iv) to make,  amend,  and  rescind  rules  relating to the Plan,
including  rules with respect to the  exercisability  and  nonforfeitability  of
Awards upon the Termination of Affiliation of a Grantee;

               (v) to determine the terms and conditions of all Award Agreements
(which need not be identical) and, with the consent of the Grantee, to amend any
such Award  Agreement at any time,  among other things,  to permit  transfers of
such Awards to the extent  permitted by the Plan;  provided  that the consent of
the Grantee shall not be required for any amendment which (A) does not adversely
affect  the  rights  of the  Grantee,  or  (B) is  necessary  or  advisable  (as
determined  by the  Committee) to carry out the purpose of the Award as a result
of any new or change in existing applicable law:

               (vi)     to cancel,  with the consent of the Grantee, outstanding
Awards and to grant new Awards in substitution therefor;

               (vii) to accelerate the exercisability  (including exercisability
within a period  of less than six  months  after  the  Grant  Date)  of,  and to
accelerate or waive any or all of the terms and  conditions  applicable  to, any
Award or any group of  Awards  for any  reason  and at any  time,  including  in
connection with a Termination of Affiliation;

                                       9
<PAGE>

               (viii)   subject  to  Sections  1.3  and  5.3, to extend the time
during which any Award or group of Awards may be exercised;

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

               (x) to  impose  such  additional  terms and  conditions  upon the
grant,  exercise  or  retention  of  Awards  as the  Committee  may,  before  or
concurrently with the grant thereof,  deem appropriate,  including  limiting the
percentage of Awards which may from time to time be exercised by a Grantee; and

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

        All  determinations  on all  matters  relating  to the Plan or any Award
Agreement may be made in the sole and absolute discretion of the Committee,  and
all such determinations of the Committee shall be final,  conclusive and binding
on all  Persons.  No member of the  Committee  shall be liable for any action or
determination made with respect to the Plan or any Award.

Article 4.   Shares Subject to the Plan and Maximum Awards

        4.1           Number  of  Shares  Available  for   Grants.  Subject   to
adjustment as provided in Section 4.2, the number of Shares hereby  reserved for
issuance under the Plan shall be 30,000,000,  and the number of Shares for which
Awards (other than KCSI  Substitute  Options,  as defined in Section 6.3) may be
granted to any Grantee on any Grant  Date,  when  aggregated  with the number of
Shares for which Awards (other than KCSI  Substitute  Options)  have  previously
been granted to such  Grantee in the same  calendar  year,  shall not exceed one
percent (1%) of the total Shares  outstanding  as of such Grant Date;  provided,
however,  that the total  number of Shares  for which  Awards  (other  than KCSI
Substitute Options) may be granted to any Grantee in any calendar year shall not
exceed  2,000,000.  If any Shares  subject  to an Award  granted  hereunder  are
forfeited or such Award otherwise terminates without the issuance of such Shares
or of other  consideration  in lieu of such Shares,  the Shares  subject to such
Award,  to the  extent of any such  forfeiture  or  termination  shall  again be
available  for grant  under the  Plan.  If any  Shares  (whether  subject  to or
received pursuant to an Award granted  hereunder,  purchased on the open market,
or otherwise  obtained)  are withheld,  applied as payment,  or sold pursuant to
procedures approved by the Committee and the proceeds thereof applied as payment
in connection  with the exercise of an Award or the withholding of taxes related
thereto,  such Shares,  to the extent of any such withholding or payment,  shall
again be  available  or shall  increase  the  number  of  Shares  available,  as
applicable,  for  grant  under  the Plan.  The  Committee  may from time to time
determine  the  appropriate  methodology  for  calculating  the number of Shares
issued pursuant to the Plan.  Shares issued pursuant to the Plan may be treasury
Shares or newly-issued Shares.

                                       10
<PAGE>

        4.2           Adjustments in Authorized  Shares.  In the event that  the
Committee  determines  that any dividend or other  distribution  (whether in the
form of cash, Shares,  other securities,  or other property),  recapitalization,
stock split,  reverse stock split,  subdivision,  consolidation  or reduction of
capital,  reorganization,  merger, scheme of arrangement,  split-up, spin-off or
combination  involving  the Company or repurchase or exchange of Shares or other
rights to purchase Shares or other  securities of the Company,  or other similar
corporate  transaction  or event  that  occurs at any time  after  the  Spin-off
Distribution  affects the Shares such that any  adjustment  is determined by the
Committee to be appropriate  in order to prevent  dilution or enlargement of the
benefits or potential  benefits  intended to be made  available  under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number and type of Shares (or other  securities or property) with
respect to which  Awards may be granted,  (ii) the number and type of Shares (or
other securities or property) subject to outstanding Awards, and (iii) the grant
or  exercise  price with  respect to any Award or, if deemed  appropriate,  make
provision  for a cash  payment  to the  holder  of an  outstanding  Award or the
substitution  of other  property  for Shares  subject to an  outstanding  Award;
provided, in each case that with respect to Awards of Incentive Stock Options no
such  adjustment  shall be authorized to the extent that such  adjustment  would
cause  the  Plan to  violate  Section  422(b)(1)  of the  Code or any  successor
provision  thereto;  and provided further,  that the number of Shares subject to
any Award denominated in Shares shall always be a whole number.

Article 5.   Eligibility and General Conditions of Awards

        5.1           Eligibility.  The  Committee  may  grant  Awards   to  any
Eligible Person, whether or not he or she has previously received an Award.

        5.2           Grant  Date.  The  Grant  Date  of  an Award  shall be the
date on which the Committee  grants the Award or such later date as specified by
the Committee.

        5.3           Maximum Term. The Option Term or other period during which
an Award may be  outstanding  shall under no  circumstances  extend more than 10
years  after the Grant  Date,  and shall be subject to  earlier  termination  as
herein provided;  provided,  however,  that any deferral of a cash payment or of
the delivery of Shares that is permitted or required by the  Committee  pursuant
to Article 12 may, if so  permitted  or required by the  Committee,  extend more
than 10 years after the Grant Date of the Award to which the deferral relates.

        5.4           Award  Agreement. To the extent not set forth in the Plan,
the terms and  conditions  of each  Award  (which  need not be the same for each
grant or for each Grantee) shall be set forth in an Award Agreement.

        5.5           Restrictions on Share Transferability. The  Committee  may
impose such  restrictions  on any Shares  acquired  pursuant to the  exercise or
vesting  of an Award  as it may deem  advisable,  including  restrictions  under
applicable federal securities laws.

                                       11
<PAGE>

        5.6           Termination of Affiliation. Except as  otherwise  provided
in an Award Agreement, and subject to the provisions of Section 14.1, the extent
to which the  Grantee  shall  have the right to  exercise,  vest in, or  receive
payment in respect of an Award  following  Termination of  Affiliation  shall be
determined in accordance with the following provisions of this Section 5.6.

               (a) For Cause.  If a Grantee has a Termination of Affiliation for
Cause, (i) the Grantee's  Restricted Shares that are forfeitable shall thereupon
be forfeited,  subject to the  provisions of Section 8.4 regarding  repayment of
certain amounts to the Grantee;  and (ii) any unexercised  Option,  LSAR or SAR,
and any  Performance  Share or  Performance  Unit  with  respect  to  which  the
Performance  Period  has  not  ended  as of the  date  of  such  Termination  of
Affiliation,  shall terminate  effective  immediately  upon such  Termination of
Affiliation.

               (b) On  Account  of  Death or  Disability.  If a  Grantee  has  a
Termination of Affiliation on account of death or Disability, then:

                      (i) the Grantee's  Restricted Shares that were forfeitable
shall thereupon become nonforfeitable;

                      (ii) any  unexercised  Option  or   SAR,  whether  or  not
exercisable on the date of such Termination of Affiliation, may be exercised, in
whole or in  part,  within  the  first  12  months  after  such  Termination  of
Affiliation  (but only during the Option  Term) by the Grantee or,  after his or
her death, by (A) his or her personal  representative  or the person to whom the
Option or SAR, as applicable,  is transferred by will or the applicable  laws of
descent  and  distribution,  or (B)  the  Grantee's  beneficiary  designated  in
accordance with Article 11; and

                      (iii) the benefit payable  with respect to any Performance
Share or Performance  Unit with respect to which the Performance  Period has not
ended as of the date of such  Termination  of Affiliation on account of death or
Disability  shall be equal to the product of the Fair Market Value of a Share as
of the date of such  Termination of Affiliation or the value of the  Performance
Unit  specified  in the  Award  Agreement  (determined  as of the  date  of such
Termination of Affiliation),  as applicable,  multiplied successively by each of
the following:

                             (1) a  fraction,  the  numerator  of  which  is the
number of  months  (including  as a whole  month any  partial  month)  that have
elapsed  since the beginning of such  Performance  Period until the date of such
Termination of Affiliation  and the denominator of which is the number of months
(including as a whole month any partial month) in the Performance Period; and

                             (2) a percentage  determined by the Committee  that
would be earned under the terms of the applicable Award Agreement  assuming that
the rate at which the  performance  goals have been  achieved  as of the date of
such Termination of Affiliation  would continue until the end of the Performance
Period,  or, if the Committee elects to compute the benefit after the end of the
Performance Period, the Performance Percentage,  as determined by the Committee,
attained during the Performance Period.

                                       12
<PAGE>

               (c)           On  Account  of  Retirement.   If  a  Grantee has a
Termination of Affiliation on account of Retirement, then:

                      (i) the Grantee's  Restricted Shares that were forfeitable
shall thereupon become nonforfeitable;

                      (ii) any   unexercised  Option  or  SAR,  whether  or  not
exercisable on the date of such Termination of Affiliation, may be exercised, in
whole or in part,  within  the  first  five  years  after  such  Termination  of
Affiliation  (but only during the Option  Term) by the Grantee or,  after his or
her death, by (A) his or her personal  representative  or the person to whom the
Option or SAR, as applicable,  is transferred by will or the applicable  laws of
descent  and  distribution,  or (B)  the  Grantee's  beneficiary  designated  in
accordance with Article 11; and

                      (iii) the benefit  payable with respect to any Performance
Share or Performance  Unit with respect to which the Performance  Period has not
ended as of the date of such Termination of Affiliation on account of Retirement
shall be equal to the product of the Fair Market Value of a Share as of the date
of  such  Termination  of  Affiliation  or the  value  of the  Performance  Unit
specified in the Award Agreement  (determined as of the date of such Termination
of  Affiliation),  as  applicable,   multiplied  successively  by  each  of  the
following:

                             (1) a  fraction,  the  numerator  of  which  is the
number of  months  (including  as a whole  month any  partial  month)  that have
elapsed  since the beginning of such  Performance  Period until the date of such
Termination of Affiliation  and the denominator of which is the number of months
(including as a whole month any partial month) in the Performance Period; and

                             (2) a percentage  determined by the Committee  that
would be earned under the terms of the applicable Award Agreement  assuming that
the rate at which the  performance  goals have been  achieved  as of the date of
such Termination of Affiliation  would continue until the end of the Performance
Period,  or, if the Committee elects to compute the benefit after the end of the
Performance Period, the Performance Percentage,  as determined by the Committee,
attained during the Performance Period.

               (d)           Any Other  Reason.  If a Grantee has a  Termination
of  Affiliation  for any  reason  other  than for Cause,  death,  Disability  or
Retirement, then:

                      (i) the  Grantee's   Restricted   Shares,  to  the  extent
forfeitable on the date of the Grantee's  Termination of  Affiliation,  shall be
forfeited on such date;

                      (ii)  if  such  Termination  of  Affiliation was voluntary
or  involuntary,  any  unexercised  Option  or SAR,  to the  extent  exercisable
immediately before the Grantee's Termination of Affiliation, may be exercised in
whole or in part,  not  later  than  three  months  after  such  Termination  of
Affiliation  (but only during the Option  Term) by the Grantee or,  after his or
her death, by (A) his or her personal  representative  or the person to whom the
Option or SAR, as

                                       13
<PAGE>

applicable,  is  transferred  by will or the  applicable  laws  of  descent  and
distribution,  or (B) the Grantee's  beneficiary  designated in accordance  with
Article 11; and

                      (iii)  if such Termination of Affiliation was involuntary,
then any Option, to the extent  unexercisable  immediately  before the Grantee's
Termination of Affiliation, may be exercised in whole or in part, not later than
three months after such  Termination of Affiliation  (but only during the Option
Term) by the  Grantee  or,  after his or her death,  by (A) his or her  personal
representative  or the person to whom the Option is  transferred  by will or the
applicable laws of descent and  distribution,  or (b) the Grantee's  beneficiary
designated in accordance with Article 11: and

                      (iv) any  Performance  Shares  or  Performance  Units with
respect  to which the  Performance  Period  has not ended as of the date of such
Termination of Affiliation shall terminate  immediately upon such Termination of
Affiliation.

        5.7           Nontransferability of Awards.

               (a) Except as provided in Section 5.7(c) below,  each Award,  and
each right under any Award,  shall be exercisable only by the Grantee during the
Grantee's  lifetime,  or, if permissible  under applicable law, by the Grantee's
guardian or legal representative.

               (b) Except as provided in Section  5.7(c) below,  no Award (prior
to the time, if applicable,  Shares are issued in respect of such Award), and no
right under any Award, may be assigned,  alienated,  pledged,  attached, sold or
otherwise  transferred  or encumbered by a Grantee  otherwise than by will or by
the laws of descent and  distribution (or in the case of Restricted  Shares,  to
the Company), and any such purported assignment, alienation, pledge, attachment,
sale,  transfer  or  encumbrance  shall be void and  unenforceable  against  the
Company or any Subsidiary; provided, that the designation of a beneficiary shall
not constitute an assignment,  alienation, pledge, attachment, sale, transfer or
encumbrance.

               (c) To the extent and in the manner  permitted by the  Committee,
and subject to such terms,  conditions,  restrictions or limitations that may be
prescribed  by the  Committee,  a Grantee may  transfer an Award  (other than an
Incentive Stock Option) to (i) a spouse,  sibling,  parent,  child (including an
adopted child) or grandchild (any of which, an "Immediate Family Member") of the
Grantee; (ii) a trust, the primary beneficiaries of which consist exclusively of
the Grantee or Immediate Family Members of the Grantee;  or (iii) a corporation,
partnership or similar  entity,  the owners of which consist  exclusively of the
Grantee or Immediate Family Members of the Grantee.

        5.8           Cancellation  and Rescission of Awards.  Unless the Award
Agreement  specifies  otherwise,  the  Committee may cancel,  rescind,  suspend,
withhold,  or otherwise limit or restrict any  unexercised  Award at any time if
the Grantee is not in  compliance  with all  applicable  provisions of the Award
Agreement and the Plan or if the Grantee has a Termination  of  Affiliation  for
Cause.

                                       14
<PAGE>

        5.9           Loans  and  Guarantees.  The  Committee  may,  subject  to
applicable  law,  (i) allow a Grantee to defer  payment to the Company of all or
any portion of the Option Price of an Option or the purchase price of Restricted
Shares,  or (ii) cause the Company to loan to the  Grantee,  or guarantee a loan
from a third party to the Grantee for, all or any portion of the Option Price of
an Option or the purchase  price of  Restricted  Shares or all or any portion of
any taxes associated with the exercise of,  nonforfeitability  of, or payment of
benefits in  connection  with,  an Award.  Any such  payment  deferral,  loan or
guarantee by the Company shall be on such terms and  conditions as the Committee
may determine.

Article 6.  Stock Options

        6.1           Grant of Options.  Subject to the terms and  provisions of
the Plan, Options may be granted to any Eligible Person in such number, and upon
such terms,  and at any time and from time to time as shall be determined by the
Committee.  Without in any manner limiting the generality of the foregoing,  the
Committee  may grant to any Eligible  Person,  or permit any Eligible  Person to
elect  to  receive,  an  Option  in lieu  of or in  substitution  for any  other
compensation  (whether  payable  currently or on a deferred  basis,  and whether
payable under this Plan or otherwise) which such Eligible Person may be eligible
to receive from the Company or a Subsidiary.

        6.2           Award  Agreement.  Each Option grant shall be evidenced by
an Award  Agreement  that shall specify the Option Price,  the Option Term,  the
number of shares to which the Option  pertains,  the time or times at which such
Option shall be  exercisable  and such other  provisions as the Committee  shall
determine.

        6.3           Option Price. The  Option  Price  of  an Option under this
Plan shall be  determined by the  Committee,  and shall be equal to or more than
100% of the Fair Market Value of a Share on the Grant Date;  provided,  however,
that any Option that is (i) granted to a Grantee in connection with the Spin-off
Distribution, (ii) associated with an option to purchase shares of stock of KCSI
("KCSI  Option")  held by  such  Grantee  immediately  prior  to  such  Spin-off
Distribution,  and (iii) intended to preserve for the Grantee the economic value
of all or a portion of such KCSI Option ("KCSI  Substitute  Option") may, to the
extent necessary to achieve such preservation of economic value, be granted with
an Option  Price that is less than 100% of the Fair  Market  Value of a Share on
the Grant Date; and provided,  further, that any Option that is (x) granted to a
Grantee in connection with the acquisition ("Acquisition"), however effected, by
the Company of another  corporation or entity ("Acquired  Entity") or the assets
thereof,  (y)  associated  with an  option  to  purchase  shares of stock of the
Acquired Entity or an affiliate thereof  ("Acquired Entity Option") held by such
Grantee immediately prior to such Acquisition,  and (z) intended to preserve for
the  Grantee  the  economic  value of all or a portion of such  Acquired  Entity
Option  ("Substitute  Option")  may,  to the extent  necessary  to achieve  such
preservation  of economic  value,  be granted  with an Option Price that is less
than 100% of the Fair Market Value of a Share on the Grant Date.

        6.4           Grant of Incentive Stock Options. At the time of the grant
of any Option,  the  Committee  may  designate  that such  Option  shall be made
subject to additional restrictions to permit

                                       15
<PAGE>

it to qualify as an "incentive  stock option" under the  requirements of Section
422 of the Code. Any Option  designated as an Incentive  Stock Option shall,  to
the extent required by Section 422 of the Code:

               (i)      if  granted to  a 10%  Owner,  have an Option  Price not
less than 110% of the Fair Market Value of a Share on its Grant Date;

               (ii) be exercisable  for a period of not more than 10 years (five
years in the case of an Incentive  Stock Option granted to a 10% Owner) from its
Grant Date, and be subject to earlier  termination as provided  herein or in the
applicable Award Agreement;

               iii) not have an  aggregate  Fair  Market  Value (as of the Grant
Date of each  Incentive  Stock  Option)  of the  Shares  with  respect  to which
Incentive  Stock  Options  (whether  granted  under the Plan or any other  stock
option  plan of the  Grantee's  employer  or any  parent or  Subsidiary  thereof
("Other  Plans")) are  exercisable for the first time by such Grantee during any
calendar  year,  determined in accordance  with the provisions of Section 422 of
the Code, which exceeds $100,000 (the "$100,000 Limit");

               (iv) if the aggregate Fair Market Value of the Shares (determined
on the  Grant  Date)  with  respect  to the  portion  of  such  grant  which  is
exercisable  for the first time during any calendar year  ("Current  Grant") and
all  Incentive  Stock  Options  previously  granted under the Plan and any Other
Plans which are  exercisable  for the first time during the same  calendar  year
("Prior Grants") would exceed the $100,000 Limit be exercisable as follows:

                      (A) the portion of the Current  Grant  which  would,  when
        added to any Prior Grants,  be exercisable  with respect to Shares which
        would  have  an  aggregate  Fair  Market  Value  (determined  as of  the
        respective  Grant Date for such options) in excess of the $100,000 Limit
        shall,  notwithstanding  the terms of the Current Grant,  be exercisable
        for the first time by the Grantee in the first subsequent  calendar year
        or years in which it  could be  exercisable  for the  first  time by the
        Grantee when added to all Prior Grants  without  exceeding  the $100,000
        Limit; and

                      (B) if,  viewed as of the date of the Current  Grant,  any
        portion of a Current  Grant could not be exercised  under the  preceding
        provisions of this Section during any calendar year  commencing with the
        calendar year in which it is first exercisable through and including the
        last  calendar  year in which it may by its  terms  be  exercised,  such
        portion of the Current Grant shall not be an Incentive Stock Option, but
        shall be exercisable as an Option which is not an Incentive Stock Option
        at such date or dates as are provided in the Current Grant;

               (v)      be granted within 10 years from the  earlier of the date
the Plan is adopted or the date the Plan is approved by the  stockholders of the
Company; and

                                       16
<PAGE>

               (vi) by its terms not be assignable or transferable other than by
will or the laws of descent and  distribution  and may be exercised,  during the
Grantee's lifetime,  only by the Grantee;  provided,  however,  that the Grantee
may,  in any  manner  permitted  by the Plan  and  specified  by the  Committee,
designate in writing a beneficiary to exercise his or her Incentive Stock Option
after the Grantee's death.

        Any Option  designated  as an Incentive  Stock Option shall also require
the Grantee to notify the  Committee  of any  disposition  of any Shares  issued
pursuant to the exercise of the Incentive  Stock Option under the  circumstances
described  in Section  421(b) of the Code  (relating  to  certain  disqualifying
dispositions) (any such circumstance, a "Disqualifying Disposition"),  within 10
days of such Disqualifying Disposition.

        Notwithstanding  the foregoing and Section  3.2(v),  the Committee  may,
without the consent of the Grantee, at any time before the exercise of an Option
(whether or not an Incentive Stock Option), take any action necessary to prevent
such Option from being treated as an Incentive Stock Option.

        6.5           Payment.  Options  granted under  this Article 6 shall  be
exercised  by the  delivery  of a written  notice of  exercise  to the  Company,
setting  forth the  number of Shares  with  respect to which the Option is to be
exercised, accompanied by full payment for the Shares made by any one or more of
the following means subject to the approval of the Committee:

                      (a)  cash, personal check or wire transfer;

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

                      (c) Restricted Shares held by the Grantee for at least six
        months  prior to the  exercise of the Option,  each such Share valued at
        the Fair Market Value of a Share on the date of exercise;

                      (d) subject to  applicable  law,  pursuant  to  procedures
        approved by the  Committee,  through the sale of the Shares  acquired on
        exercise of the Option through a  broker-dealer  to whom the Grantee has
        submitted an irrevocable notice of exercise and irrevocable instructions
        to deliver  promptly to the Company the amount of sale or loan  proceeds
        sufficient  to pay for such Shares,  together  with, if requested by the
        Company,  the amount of  federal,  state,  local or foreign  withholding
        taxes payable by Grantee by reason of such exercise; or

                      (e) when permitted by the  Committee,  payment may also be
        made in accordance with Section 5.9.

        If any Restricted Shares ("Tendered  Restricted Shares") are used to pay
the Option Price, a number of Shares acquired on exercise of the Option equal to
the  number  of  Tendered  Restricted

                                       17
<PAGE>

Shares  shall  be  subject  to  the same restrictions as the Tendered Restricted
Shares, determined as of the date of exercise of the Option.

Article 7.   Stock Appreciation Rights and Limited Stock Appreciation Rights

        7.1           Grant of SARs. Subject to the terms and conditions of  the
Plan,  SARs may be granted to any  Eligible  Person at any time and from time to
time  as  shall  be  determined  by  the  Committee.  The  Committee  may  grant
Freestanding SARs, Tandem SARs, or any combination thereof.

        The Committee shall determine the number of SARs granted to each Grantee
(subject to Article 4), the Strike Price thereof,  and,  consistent with Section
7.2 and the other  provisions  of the  Plan,  the  other  terms  and  conditions
pertaining to such SARs.

        7.2           Exercise of Tandem SARs.  Tandem SARs may be exercised for
all or part of the Shares subject to the related Award upon the surrender of the
right to exercise the equivalent  portion of the related Award. A Tandem SAR may
be exercised only with respect to the Shares for which its related Award is then
exercisable.

        Notwithstanding  any other provision of this Plan to the contrary,  with
respect  to a Tandem  SAR,  (i) the  Tandem  SAR will  expire no later  than the
expiration of the underlying  Option;  (ii) the value of the payout with respect
to the Tandem  SAR may be for no more than 100% of the  difference  between  the
Option  Price of the  underlying  Option and the Fair Market Value of the Shares
subject to the  underlying  Option at the time the Tandem SAR is exercised;  and
(iii) the Tandem SAR may be  exercised  only when the Fair  Market  Value of the
Shares subject to the Option exceeds the Option Price of the Option.

        7.3           Payment  of  SAR  Amount.  Upon exercise  of  an  SAR, the
Grantee  shall be  entitled  to receive  payment  from the  Company in an amount
determined by multiplying:

               (a)    the excess of the Fair Market Value of a Share on the date
                      of  exercise  over the Strike Price;

by

               (b)    the  number  of  Shares  with  respect to which the SAR is
                      exercised;

provided that the Committee may provide in the Award  Agreement that the benefit
payable on  exercise  of an SAR shall not  exceed  such  percentage  of the Fair
Market Value of a Share on the Grant Date as the  Committee  shall  specify.  As
determined  by the  Committee,  the payment upon SAR exercise may be in cash, in
Shares which have an aggregate  Fair Market Value (as of the date of exercise of
the SAR) equal to the amount of the payment, or in some combination  thereof, as
set forth in the Award Agreement.

                                       18
<PAGE>

        7.4           Grant of LSARs.  Subject  to the terms and  conditions  of
the Plan,  LSARs may be granted to any Eligible Person at any time and from time
to time as shall be determined by the  Committee.  Each LSAR shall be identified
with a Share subject to an Option or SAR held by the Grantee,  which may include
an  Option  or SAR  previously  granted  under  the  Plan.  Upon  the  exercise,
expiration,  termination,  forfeiture or  cancellation of the Option or SAR with
which an LSAR is identified, such LSAR shall terminate.

        7.5           Exercise  of  LSARs.  Each  LSAR  shall  automatically  be
exercised  upon a Change of Control which has not been approved by the Incumbent
Board. The exercise of an LSAR shall result in the cancellation of the Option or
SAR with which such LSAR is identified, to the extent of such exercise.

        7.6           Payment of LSAR Amount.  Within 10 business days after the
exercise of an LSAR,  the Company  shall pay to the Grantee,  in cash, an amount
equal to the difference between:

               (a)    the greatest of (i) the Change of Control Value,  (ii) the
                      Fair Market Value of a Share on the date occurring  during
                      the 180-day period  immediately  preceding the date of the
                      Change of Control on which such Fair  Market  Value is the
                      greatest or (iii) such other valuation  amount, if any, as
                      may  be  determined  pursuant  to  the  provisions  of the
                      applicable Award Agreement;

minus

               (b)    either  (i) in the  case  of an  LSAR  identified  with an
                      Option,  the  Option  Price of such  Option or (ii) in the
                      case of an LSAR  identified  with an SAR, the Strike Price
                      of such SAR.

Article 8.   Restricted Shares

        8.1           Grant of  Restricted  Shares.  Subject  to  the  terms and
provisions of the Plan,  the  Committee,  at any time and from time to time, may
grant Restricted  Shares to any Eligible Person in such amounts as the Committee
shall determine.

        8.2           Award Agreement.  Each grant of Restricted Shares shall be
evidenced by an Award Agreement that shall specify the Period(s) of Restriction,
the  number of  Restricted  Shares  granted,  and such other  provisions  as the
Committee  shall  determine.  The  Committee may impose such  conditions  and/or
restrictions  on any Restricted  Shares  granted  pursuant to the Plan as it may
deem advisable,  including  restrictions  based upon the achievement of specific
performance goals  (Company-wide,  divisional,  Subsidiary  and/or  individual),
time-based   restrictions  on  vesting,  and/or  restrictions  under  applicable
securities laws.

        8.3           Consideration.  The Committee shall  determine the amount,
if any, that a Grantee shall pay for Restricted  Shares,  which shall be (except
with respect to Restricted Shares that are treasury shares) at least the Minimum
Consideration for each Restricted Share. Such payment shall

                                       19
<PAGE>

be made in full by the  Grantee  before  the  delivery  of the shares and in any
event no later than 10 business days after the Grant Date for such shares.

        8.4           Effect of Forfeiture. If Restricted Shares are  forfeited,
and if the  Grantee  was  required  to pay for  such  shares  or  acquired  such
Restricted Shares upon the exercise of an Option, the Grantee shall be deemed to
have resold such Restricted Shares to the Company at a price equal to the lesser
of (x) the amount  paid by the Grantee for such  Restricted  Shares,  or (y) the
Fair Market Value of a Share on the date of such  forfeiture.  The Company shall
pay to the Grantee the required amount as soon as is administratively practical.
Such Restricted Shares shall cease to be outstanding, and shall no longer confer
on the Grantee  thereof any rights as a  stockholder  of the  Company,  from and
after the date of the event causing the  forfeiture,  whether or not the Grantee
accepts the Company's tender of payment for such Restricted Shares.

        8.5           Escrow;  Legends.  The  Committee  may  provide  that  the
certificates for any Restricted  Shares (x) shall be held (together with a stock
power  executed  in blank by the  Grantee)  in  escrow by the  Secretary  of the
Company  until such  Restricted  Shares become  nonforfeitable  or are forfeited
and/or (y) shall bear an  appropriate  legend  restricting  the transfer of such
Restricted Shares. If any Restricted Shares become  nonforfeitable,  the Company
shall cause certificates for such shares to be issued without such legend.

Article 9.   Performance Units and Performance Shares

        9.1           Grant of Performance Units and Performance Shares. Subject
to the terms of the Plan, Performance Units or Performance Shares may be granted
to any Eligible Person in such amounts and upon such terms,  and at any time and
from time to time, as shall be determined by the Committee.

        9.2           Value/Performance Goals. Each Performance Unit shall have
an initial value that is established by the Committee at the time of grant. Each
Performance  Share shall have an initial value equal to the Fair Market Value of
a Share on the date of grant.  The Committee shall set performance  goals which,
depending  on the extent to which  they are met,  will  determine  the number or
value of Performance  Units or  Performance  Shares that will be paid out to the
Grantee.  For  purposes  of this  Article 9, the time  period  during  which the
performance goals must be met shall be called a "Performance Period."

        9.3           Earning  of  Performance  Units  and  Performance  Shares.
Subject to the terms of this Plan, after the applicable  Performance  Period has
ended, the holder of Performance  Units or Performance  Shares shall be entitled
to  receive  a payout  based on the  number  and value of  Performance  Units or
Performance  Shares  earned by the Grantee over the  Performance  Period,  to be
determined  as a function of the extent to which the  corresponding  performance
goals have been achieved.

        If a Grantee is promoted, demoted or transferred to a different business
unit of the  Company  during a  Performance  Period,  then,  to the  extent  the
Committee  determines the performance goals

                                       20
<PAGE>

or  Performance  Period are no longer  appropriate,  the  Committee  may adjust,
change or eliminate the performance goals or the applicable  Performance  Period
as it deems  appropriate in order to make them appropriate and comparable to the
initial performance goals or Performance Period.

        9.4           Form and  Timing  of  Payment  of  Performance  Units  and
Performance  Shares.  Payment of earned  Performance Units or Performance Shares
shall be made in a lump sum  following the close of the  applicable  Performance
Period.  The Committee may pay earned Performance Units or Performance Shares in
the  form of cash or in  Shares  (or in a  combination  thereof)  which  have an
aggregate Fair Market Value equal to the value of the earned  Performance  Units
or Performance Shares at the close of the applicable  Performance  Period.  Such
Shares may be granted  subject to any  restrictions  deemed  appropriate  by the
Committee.  The form of  payout of such  Awards  shall be set forth in the Award
Agreement pertaining to the grant of the Award.

        As determined by the Committee, a Grantee may be entitled to receive any
dividends  declared  with respect to Shares which have been earned in connection
with grants of Performance  Units or Performance  Shares but not yet distributed
to the Grantee. In addition,  a Grantee may, as determined by the Committee,  be
entitled to exercise his or her voting rights with respect to such Shares.

Article 10.   Bonus Shares

        Subject to the terms of the Plan,  the  Committee may grant Bonus Shares
to any Eligible  Person,  in such amount and upon such terms and at any time and
from time to time as shall be  determined  by the  Committee.  The terms of such
Bonus Shares shall be set forth in the Award  Agreement  pertaining to the grant
of the Award.

Article 11.   Beneficiary Designation

        Each Grantee under the Plan may, from time to time, name any beneficiary
or  beneficiaries  (who may be named  contingently or  successively) to whom any
benefit  under the Plan is to be paid in case of his or her  death  before he or
she receives any or all of such benefit.  Each such designation shall revoke all
prior  designations  by the same Grantee,  shall be in a form  prescribed by the
Company,  and will be  effective  only when filed by the Grantee in writing with
the  Company  during  the  Grantee's  lifetime.  In  the  absence  of  any  such
designation,  benefits  remaining unpaid at the Grantee's death shall be paid to
the Grantee's estate.

                                       21
<PAGE>

Article 12.  Deferrals  The  Committee  may permit or require a Grantee to defer
receipt of the payment of cash or the delivery of Shares that would otherwise be
due by  virtue  of the  exercise  of an  Option  or SAR,  the lapse or waiver of
restrictions  with  respect  to  Restricted  Shares,  the  satisfaction  of  any
requirements or goals with respect to Performance  Units or Performance  Shares,
or the grant of Bonus Shares. If any such deferral is required or permitted, the
Committee shall  establish  rules and procedures for such  deferrals.  Except as
otherwise  provided  in an Award  Agreement,  any payment or any Shares that are
subject to such  deferral  shall be made or  delivered  to the Grantee  upon the
Grantee's Termination of Affiliation.

Article 13.   Rights of Employees/Directors/Consultants

        13.1          Employment.  Nothing in the Plan shall  interfere  with or
limit in any way the right of the Company to terminate any Grantee's employment,
directorship  or  consultancy at any time, nor confer upon any Grantee the right
to continue in the employ or as a director or consultant of the Company.

        13.2          Participation.  No employee,  director or consultant shall
have the right to be selected to receive an Award under the Plan or, having been
so selected, to be selected to receive a future Award.

Article 14.   Change of Control

        14.1          Change  of  Control. Except  as otherwise provided  in  an
Award Agreement, if a Change of Control occurs, then:

               (i)  the  Grantee's   Restricted  Shares  that  were  forfeitable
shall thereupon become nonforfeitable;

               (ii) any unexercised Option or SAR, whether or not exercisable on
the date of such Change of Control, shall thereupon be fully exercisable and may
be exercised, in whole or in part; and

               (iii) the Company  shall  immediately  pay to the  Grantee,  with
respect to any Performance  Share or Performance  Unit with respect to which the
Performance  Period has not ended as of the date of such  Change of  Control,  a
cash payment equal to the product of (A) in the case of a Performance Share, the
Change of Control Value or (B) in the case of a Performance  Unit,  the value of
the Performance Unit specified in the Award Agreement, as applicable, multiplied
successively by each of the following:

                      (1) a fraction,  the  numerator  of which is the number of
whole and  partial  months  that have  elapsed  between  the  beginning  of such
Performance Period and the date of such Change

                                       22
<PAGE>

of  Control  and the  denominator  of which is the  number of whole and  partial
months in the Performance Period; and

                      (2) a  percentage  equal  to a  greater  of (x) the target
percentage,  if any,  specified  in the  applicable  Award  Agreement or (y) the
maximum  percentage,  if any,  that  would  be  earned  under  the  terms of the
applicable Award Agreement assuming that the rate at which the performance goals
have been achieved as of the date of such Change of Control would continue until
the end of the Performance Period.

        14.2          Pooling  of   Interests   Accounting.  If   the  Committee
determines,  prior  to a sale  or  merger  of the  Company  that  the  Committee
determines is reasonably likely to occur, that the grant or exercise of Options,
SARs  or  LSARs  would  preclude  the use of  pooling  of  interests  accounting
("pooling")  after  the  consummation  of such  sale or  merger  and  that  such
preclusion  of  pooling  would have a  material  adverse  effect on such sale or
merger,  the Committee  may (a) make any  adjustments  in such Options,  SARs or
LSARs  prior  to  the  sale  or  merger  that  will  permit  pooling  after  the
consummation of such sale or merger or (b) cause the Company to pay the benefits
attributable to such Options, SARs or LSARs (including for this purpose not only
the spread  between  the then Fair  Market  Value of the Shares  subject to such
Options,  SARs or LSARs and the Option Price or Strike Price applicable thereto,
but also the additional value of such Options,  SARs, or LSARs in excess of such
spread,  as determined  by the  Committee) in the form of Shares if such payment
would not cause the  transaction  to remain or become  ineligible  for  pooling;
provided,  however,  no  such  adjustment  or  payment  may be made  that  would
adversely affect in any material way any such Options, SARs or LSARs without the
consent of the affected Grantee.

Article 15.   Amendment, Modification, and Termination

        15.1          Amendment,  Modification, and Termination.  Subject to the
terms of the  Plan,  the  Board  may at any time and from  time to time,  alter,
amend, suspend or terminate the Plan in whole or in part without the approval of
the Company's stockholders.  The Board may delegate to the Plan Committee any or
all of the authority of the Board under Section 15.1 to alter, amend, suspend or
terminate the Plan.

        15.2          Adjustment  of  Awards  Upon  the  Occurrence  of  Certain
Unusual or Nonrecurring  Events. The Committee may make adjustments in the terms
and  conditions  of, and the criteria  included  in,  Awards in  recognition  of
unusual or nonrecurring  events  (including the events described in Section 4.2)
affecting the Company or the  financial  statements of the Company or of changes
in  applicable  laws,  regulations,  or  accounting  principles,   whenever  the
Committee  determines that such  adjustments are appropriate in order to prevent
dilution or  enlargement  of the benefits or potential  benefits  intended to be
made  available  under  the  Plan;  provided  that no such  adjustment  shall be
authorized  to the extent that such  authority  would be  inconsistent  with the
Plan's meeting the requirements of the Performance-Based Exception.

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<PAGE>

        15.3          Awards  Previously  Granted.  Notwithstanding   any  other
provision  of  the  Plan  to  the  contrary,  no  termination,   amendment,   or
modification  of the Plan shall  adversely  affect in any material way any Award
previously granted under the Plan, without the written consent of the Grantee of
such Award.

Article 16.   Withholding

        16.1          Withholding

               (a)      Mandatory Tax Withholding.

                      (1) Whenever,  under the Plan,  Shares are to be delivered
               upon  exercise or payment of an Award or upon  Restricted  Shares
               becoming  nonforfeitable,  or any other  event  with  respect  to
               rights and benefits  hereunder,  the Company shall be entitled to
               require  (i) that the  Grantee  remit an  amount  in cash,  or if
               determined by the Committee, Mature Shares, sufficient to satisfy
               all   federal,   state,   local  and  foreign   tax   withholding
               requirements related thereto ("Required  Withholding"),  (ii) the
               withholding  of  such  Required   Withholding  from  compensation
               otherwise  due to the Grantee or from any Shares or other payment
               due to the Grantee under the Plan or (iii) any combination of the
               foregoing.

                      (2) Any Grantee who makes a  Disqualifying  Disposition or
               an election  under  Section  83(b) of the Code shall remit to the
               Company an amount  sufficient to satisfy all  resulting  Required
               Withholding;  provided  that,  in lieu of or in  addition  to the
               foregoing,  the  Company  shall have the right to  withhold  such
               Required  Withholding  from  compensation  otherwise  due  to the
               Grantee or from any Shares or other  payment  due to the  Grantee
               under the Plan.

               (b)      Elective Share Withholding.
                        --------------------------
                      (1) Subject to subsection 16.1(b)(2),  a Grantee may elect
               the withholding ("Share Withholding") by the Company of a portion
               of the Shares subject to an Award upon the exercise of such Award
               or upon Restricted Shares becoming non-forfeitable or upon making
               an election  under  Section  83(b) of the Code (each,  a "Taxable
               Event")  having a Fair  Market  Value  equal  to (i) the  minimum
               amount  necessary  to  satisfy  Required  Withholding   liability
               attributable  to the Taxable Event;  or (ii) with the Committee's
               prior  approval,  a greater  amount,  not to exceed the estimated
               total amount of such  Grantee's tax liability with respect to the
               Taxable Event.

                      (2)  Each Share Withholding  election shall be  subject to
               the following conditions:

                             (i)    any   Grantee's  election   shall  be
subject to the  Committee's  discretion to revoke the  Grantee's  right to elect
Share Withholding at any time before the Grantee's election if the Committee has
reserved the right to do so in the Award Agreement;

                                       24
<PAGE>

                             (ii)   the  Grantee's  election must be made
before the date (the "Tax  Date") on which the amount of tax to be  withheld  is
determined; and

                             (iii)  the Grantee's election shall be irrevocable.

        16.2          Notification  under  Code Section 83(b). If  the  Grantee,
in  connection  with the  exercise  of any  Option,  or the grant of  Restricted
Shares,  makes the election permitted under Section 83(b) of the Code to include
in such Grantee's gross income in the year of transfer the amounts  specified in
Section  83(b) of the Code,  then such Grantee  shall notify the Company of such
election  within 10 days of filing the notice of the election  with the Internal
Revenue Service, in addition to any filing and notification required pursuant to
regulations  issued  under  Section  83(b) of the Code.  The  Committee  may, in
connection with the grant of an Award or at any time thereafter prior to such an
election  being  made,  prohibit a Grantee  from making the  election  described
above.

Article 17.   Successors

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

Article 18.   Additional Provisions

        18.1          Gender and Number. Except where otherwise indicated by the
context,  any masculine  term used herein also shall  include the feminine,  the
plural shall include the singular and the singular shall include the plural.

        18.2          Severability.  If any part of the Plan is declared by any
court or governmental  authority to be unlawful or invalid, such unlawfulness or
invalidity  shall not invalidate any other part of the Plan. Any Section or part
of a Section so  declared  to be  unlawful or invalid  shall,  if  possible,  be
construed  in a manner  which will give  effect to the terms of such  Section or
part of a Section to the fullest  extent  possible  while  remaining  lawful and
valid.

        18.3          Requirements  of  Law.  The  granting  of  Awards  and the
issuance  of Shares  under the Plan  shall be subject  to all  applicable  laws,
rules,  and regulations,  and to such approvals by any governmental  agencies or
stock exchanges as may be required. Notwithstanding any provision of the Plan or
any Award,  Grantees  shall not be entitled  to  exercise,  or receive  benefits
under,  any Award,  and the Company shall not be obligated to deliver any Shares
or other benefits to a Grantee,  if such exercise or delivery would constitute a
violation by the Grantee or the Company of any applicable law or regulation.

        18.4          Securities Law Compliance.

                                       25
<PAGE>

               (a) If the  Committee  deems  it  necessary  to  comply  with any
applicable  securities law, or the requirements of any stock exchange upon which
Shares may be  listed,  the  Committee  may  impose  any  restriction  on Shares
acquired  pursuant  to  Awards  under  the  Plan as it may deem  advisable.  All
certificates  for Shares  delivered  under the Plan pursuant to any Award or the
exercise  thereof  shall be  subject  to such  stop  transfer  orders  and other
restrictions  as the Committee may deem advisable  under the rules,  regulations
and other requirements of the SEC, any stock exchange upon which Shares are then
listed,  any applicable  securities law, and the Committee may cause a legend or
legends to be put on any such certificates to make appropriate reference to such
restrictions.  If so requested by the Company,  the Grantee shall make a written
representation  to the Company that he or she will not sell or offer to sell any
Shares unless a registration  statement  shall be in effect with respect to such
Shares under the  Securities Act of 1993, as amended,  and any applicable  state
securities law or unless he or she shall have furnished to the Company  evidence
satisfactory to the Company that such registration is not required.

               (b)  If  the   Committee   determines   that  the   exercise   or
nonforfeitability  of, or  delivery  of  benefits  pursuant  to, any Award would
violate any applicable  provision of securities laws or the listing requirements
of any stock  exchange upon which any of the  Company's  equity  securities  are
listed, then the Committee may postpone any such exercise,  nonforfeitability or
delivery,  as applicable,  but the Company shall use all  reasonable  efforts to
cause such  exercise,  nonforfeitability  or  delivery  to comply  with all such
provisions at the earliest practicable date.

        18.5          No Rights as a Stockholder.  A Grantee shall not have  any
rights as a  stockholder  of the Company with respect to the Shares  (other than
Restricted  Shares)  which may be  deliverable  upon exercise or payment of such
Award until such shares have been  delivered to him or her.  Restricted  Shares,
whether held by a Grantee or in escrow by the  Secretary  of the Company,  shall
confer on the  Grantee all rights of a  stockholder  of the  Company,  except as
otherwise  provided  in the Plan or Award  Agreement.  At the time of a grant of
Restricted  Shares,  the  Committee  may require  the payment of cash  dividends
thereon to be deferred  and,  if the  Committee  so  determines,  reinvested  in
additional Restricted Shares. Stock dividends and deferred cash dividends issued
with respect to Restricted  Shares shall be subject to the same restrictions and
other  terms  as apply to the  Restricted  Shares  with  respect  to which  such
dividends  are  issued.  The  Committee  may  provide for payment of interest on
deferred cash dividends.

        18.6          Nature  of  Payments.  Awards shall  be  special incentive
payments  to the Grantee and shall not be taken into  account in  computing  the
amount of salary or  compensation of the Grantee for purposes of determining any
pension,  retirement,  death or other benefit under (a) any pension, retirement,
profit-sharing,  bonus,  insurance or other employee benefit plan of the Company
or any Subsidiary or (b) any agreement between (i) the Company or any Subsidiary
and (ii) the Grantee, except as such plan or agreement shall otherwise expressly
provide.

        18.7          Performance  Measures.  Unless  and  until  the  Committee
proposes for stockholder vote and  stockholders  approve a change in the general
performance measures set forth

                                       26
<PAGE>

in this Section 18.7, the performance measure(s) to be used for purposes of such
Awards shall be chosen from among the following:

        (a)    Earnings (either in the aggregate or on a per-share basis);

        (b)    Net income (before or after taxes);

        (c)    Operating income;

        (d)    Cash flow;

        (e)    Return measures (including return on assets, equity, or sales);

        (f)    Earnings before or after either,  or any  combination  of, taxes,
               interest or depreciation and amortization;

        (g)    Gross revenues;

        (h)    Share price (including growth measures and stockholder  return or
               attainment  by the Shares of a  specified  value for a  specified
               period of time);

        (i)    Reductions  in  expense  levels in each case,  where  applicable,
               determined  either on a  Company-wide  basis or in respect of any
               one or more business units;

        (j)    Net economic value; or

        (k)    Market share.

        Any of the foregoing  performance measures may be applied, as determined
by the Committee,  on the basis of the Company as a whole,  or in respect of any
one or more Subsidiaries or divisions of the Company or any part of a Subsidiary
or division of the Company that is specified by the Committee.

        The Committee may adjust the  determinations of the degree of attainment
of the preestablished  performance goals;  provided,  however, that Awards which
are designed to qualify for the Performance-Based  Exception may not be adjusted
upward  without the approval of the Company's  stockholders  (the  Committee may
adjust such Awards downward).

        In the event that applicable tax and/or securities laws change to permit
Committee  discretion  to  alter  the  governing  performance  measures  without
obtaining  stockholder  approval  of such  changes,  and still  qualify  for the
Performance-Based  Exception,  the Committee  shall have sole discretion to make
such changes without obtaining stockholder approval.

                                       27
<PAGE>

        18.8          Governing  Law.  The Plan,  and all agreements  hereunder,
shall be construed in  accordance  with and governed by the laws of the State of
Delaware other than its laws respecting choice of law.

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