Document:

exv10w7

 

Exhibit 10.7

HUMAN GENOME SCIENCES, INC.

EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated Effective May 21, 2003)

     This Human Genome Sciences, Inc. Employee Stock Purchase Plan (this
“PLAN”) provides eligible employees of Human Genome Sciences, Inc. (the
“CORPORATION”) and certain of its subsidiaries with opportunities to purchase
shares of the Corporation’s Common Stock, $0.01 par value per share (the
“COMMON STOCK”). The Plan is intended to benefit the Corporation by increasing
the employees’ interest in the Corporation’s growth and success and encouraging
employees to remain in the employ of the Corporation or its participating
subsidiaries. The Plan is intended to constitute an “employee stock purchase
plan” within the meaning of section 423 of the Internal Revenue Code of 1986,
as amended (the “CODE”), and shall be so applied and interpreted.

     1.       Shares Subject to the Plan. Subject to adjustment as provided herein,
the aggregate number of shares of Common Stock that may be made available for
purchase under the Plan is 250,000 shares. The shares purchased under the Plan
may, in the discretion of the Board of Directors of the Corporation (the
“BOARD”), be authorized but unissued shares of Common Stock, shares purchased
on the open market, or shares from any other proper source.

     2.       Administration. The Plan will be administered by the Board or by a
committee appointed by the Board (the “ADMINISTRATOR”).. The Administrator has
authority to interpret the Plan, to make, amend and rescind all rules and
regulations for the administration and operation of the Plan, and to make all
other determinations necessary or desirable in administering and operating the
Plan, all of which will be final and conclusive. No member of the Administrator
shall be liable for any action or determination made in good faith with respect
to the Plan.

     3.       Eligibility. All employees of the Corporation, including directors who
are employees, and all employees of any subsidiary of the Corporation (as
defined in Code section 424(f)), now or hereafter existing, that is designated
by the Administrator from time to time as a participating employer under the
Plan (a “DESIGNATED SUBSIDIARY”), are eligible to participate in the Plan,
subject to such further eligibility requirements as may be specified by the
Administrator consistent with Code section 423.

     4.       Options to Purchase Common Stock.

     (a)     Options (“OPTIONS”) will be granted pursuant to the Plan to each
eligible employee on the first day on which the National Association of
Securities Dealers Automated Quotation (“NASDAQ”) system is open for trading
(“TRADING DAY”) on or after January 1 of each year commencing on or after the
Effective Date (as defined in Section 18), or such other date specified by the
Administrator. Each Option will terminate on the last Trading Day of a period
specified by the Administrator (each such period referred to herein as an
“OPTION PERIOD”). No Option Period shall be longer than 27 months in duration.
Unless the Administrator determines otherwise, subsequent Option Periods of
equal duration will follow consecutively thereafter, each commencing on the
first Trading Day immediately after the expiration of the preceding Option
Period.

     (b)     An individual must be employed as an eligible employee by the
Corporation or a Designated Subsidiary on the first Trading Day of an Option
Period in order to be granted an

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Option for that Option Period. However, the Administrator may designate
any subsequent Trading Day(s) (each such designated Trading Day referred to
herein as an “INTERIM TRADING DAY”) in an Option Period upon which Options will
be granted to eligible employees who first commence employment with, or first
become eligible employees of, the Corporation or a Designated Subsidiary after
the first Trading Day of the Option Period. In such event, the Interim Trading
Day shall constitute the first Trading Day of the Option Period for all Options
granted on such day for all purposes under the Plan.

     (c)     Each Option represents a right to purchase on the last Trading Day of
the Option Period or on one or more Trading Days within the Option Period
designated by the Administrator (each such designated Trading Day and the last
Trading Day of the Option Period, a “PURCHASE DATE”), at the Purchase Price
hereinafter provided for, shares of Common Stock up to such maximum number of
shares specified by the Administrator on or before the first day of the Option
Period. All eligible employees granted Options under the Plan for an Option
Period shall have the same rights and privileges with respect to such Options.
The purchase price of each share of Common Stock (the “PURCHASE PRICE”) subject
to an Option will be determined by the Administrator, in its discretion, on or
before the beginning of the Option Period; provided, however, that the Purchase
Price for an Option with respect to any Option Period shall never be less than
the lesser of 85 percent of the Fair Market Value of the Common Stock on (i)
the first Trading Day of the Option Period or (ii) the Purchase Date, and shall
never be less than the par value of the Common Stock.

     (d)     For purposes of the Plan, “FAIR MARKET VALUE” on a Trading Day means
the average of the high and low sale prices per share of Common Stock as
reflected on the principal consolidated transaction reporting system for
securities listed on any national securities exchange or other market quotation
system on which the Common Stock may be principally listed or quoted or, if
there are no transactions on a Trading Day, then such average for the preceding
Trading Day upon which transactions occurred.

     (e)     Notwithstanding any provision in this Plan to the contrary, no
employee shall be granted an Option under this Plan if such employee,
immediately after the Option would otherwise be granted, would own 5% or more
of the total combined voting power or value of the stock of the Corporation or
any subsidiary. For purposes of the preceding sentence, the attribution rules
of Code section 424(d) will apply in determining the stock ownership of an
employee, and all stock which the employee has a contractual right to purchase
will be treated as stock owned by the employee.

     (f)     Notwithstanding any provision in this Plan to the contrary, no
employee may be granted an Option which permits his rights to purchase Common
Stock under this Plan and all other stock purchase plans of the Corporation and
its subsidiaries to accrue at a rate which exceeds $25,000 of the fair market
value of such Common Stock (determined at the time such Option is granted) for
each calendar year in which the Option is outstanding at any time, as required
by Code section 423.

     5.       Payroll Deductions and Cash Contributions.

     To facilitate payment of the Purchase Price of Options, the Administrator,
in its discretion, may permit eligible employees to authorize payroll
deductions to be made on each payday during the Option Period, and/or to
contribute cash or cash-equivalents to the Corporation, up to a maximum amount
determined by the Administrator. The Corporation will maintain bookkeeping
accounts for all employees who authorize payroll deduction or make cash
contributions. Interest will not be paid on any employee accounts, unless the
Administrator determines otherwise. The Administrator shall establish rules and
procedures, in its discretion,

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from time to time regarding elections to authorize payroll deductions,
changes in such elections, timing and manner of cash contributions, and
withdrawals from employee accounts. Amounts credited to employee accounts on
the Purchase Date will be applied to the payment of the Purchase Price of
outstanding Options pursuant to Section 6 below.

     6.       Exercise of Options; Purchase of Common Stock. Options shall be
exercised at the close of business on the Purchase Date. In accordance with
rules established by the Administrator, the Purchase Price of Common Stock
subject to an option shall be paid (i) from funds credited to an eligible
employee’s account, (ii) by a broker-assisted cashless exercise in accordance
with Regulation T of the Board of Governors of the Federal Reserve System, or
(iii) by such other method as the Administrator shall determine from time to
time. Options shall be exercised only to the extent the purchase price is paid
with respect to whole shares of Common Stock, unless the Administrator
otherwise provides.. Any balance remaining in an employee’s account on a
Purchase Date after such purchase of Common Stock will be carried forward
automatically into the employee’s account for the next Purchase Date or Option
Period, as applicable, unless the employee is not an eligible employee with
respect to the next Purchase Date or Option Period, as applicable, in which
case such amount will be promptly refunded.

     7.       Issuance of Certificates. As soon as practicable following each
Purchase Date, certificates representing shares of Common Stock purchased under
the Plan will be issued only in the name of the employee, in the name of the
employee and another person of legal age as joint tenants with rights of
survivorship, or (in the Administrator’s sole discretion) in the street name of
a brokerage firm, bank or other nominee holder designated by the employee or
the Administrator. In the alternative, the Administrator may provide for
uncertificated, book entry issuance of the shares of Common Stock purchased
under the Plan.

     8.       Rights on Retirement, Death, Termination of Employment, or Termination
of Status as Eligible Employee. In the event of an employee’s termination of
employment or termination of status as an eligible employee prior to a Purchase
Date (whether as a result of the employee’s voluntary or involuntary
termination, retirement, death or otherwise), any outstanding Option granted to
him will immediately terminate, no further payroll deduction will be taken from
any pay due and owing to the employee and the balance in the employee’s account
will be paid to the employee or, in the event of the employee’s death, (a) to
the executor or administrator of the employee’s estate or (b) if no such
executor or administrator has been appointed to the knowledge of the
Administrator, to such other person(s) as the Administrator may, in its
discretion, designate. If, prior to a Purchase Date, the Designated Subsidiary
by which an employee is employed will cease to be a subsidiary of the
Corporation, or if the employee is transferred to a subsidiary of the
Corporation that is not a Designated Subsidiary, the employee will be deemed to
have terminated employment for the purposes of this Plan.

     9.       Optionees Not Stockholders. Neither the granting of an Option to an
employee nor the deductions from his pay will constitute such employee a
stockholder of the shares of Common Stock covered by an Option under this Plan
until such shares have been purchased by and issued to him.

     10.     Options Not Transferable. Options under this Plan are not transferable
by a participating employee other than by will or the laws of descent and
distribution, and are exercisable during the employee’s lifetime only by the
employee.

     11.     Withholding of Taxes. To the extent that a participating employee
realizes ordinary income in connection with the purchase, sale or other
transfer of any shares of Common Stock purchased under the Plan or the
crediting of interest to the employee’s account, the Corporation may withhold
amounts needed to cover such taxes from any payments otherwise

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due and owing to the participating employee or from shares that would
otherwise be issued to the participating employee hereunder. Any participating
employee who sells or otherwise transfers shares purchased under the Plan must,
within 30 days of such sale or transfer, notify the Corporation in writing of
the sale or transfer.

     12.     Application of Funds. All funds received or held by the Corporation
under the Plan may be used for any corporate purpose until applied to the
purchase of Common Stock and/or refunded to participating employees and can be
commingled with other general corporate funds. Participating employees’
accounts will not be segregated.

     13.     Effect of Changes in Capitalization.

     (a)     Changes in Stock. If the number of outstanding shares of Common Stock
is increased or decreased or the shares of Common Stock are changed into or
exchanged for a different number or kind of shares or other securities of the
Corporation by reason of any recapitalization, reclassification, stock split,
reverse split, combination of shares, exchange of shares, stock dividend, or
other distribution payable in capital stock, or other increase or decrease in
such shares effected without receipt of consideration by the Corporation
occurring after the effective date of the Plan, the number and kind of shares
that may be purchased under the Plan shall be adjusted proportionately and
accordingly by the Corporation. In addition, the number and kind of shares for
which Options are outstanding shall be similarly adjusted so that the
proportionate interest, if any, of a participating employee immediately
following such event shall, to the extent practicable, be the same as
immediately prior to such event. Any such adjustment in outstanding Options
shall not change the aggregate Purchase Price payable by a participating
employee with respect to shares subject to such Options, but shall include a
corresponding proportionate adjustment in the Purchase Price per share.

     (b)     Reorganization in Which the Corporation Is the Surviving Corporation.
Subject to Subsection (c) of this Section 13, if the Corporation shall be the
surviving corporation in any reorganization, merger or consolidation of the
Corporation with one or more other corporations, all outstanding Options under
the Plan shall pertain to and apply to the securities to which a holder of the
number of shares of Common Stock subject to such Options would have been
entitled immediately following such reorganization, merger or consolidation,
with a corresponding proportionate adjustment of the Purchase Price per share
so that the aggregate Purchase Price thereafter shall be the same as the
aggregate Purchase Price of the shares subject to such Options immediately
prior to such reorganization, merger or consolidation.

     (c)     Reorganization in Which the Corporation Is Not the Surviving
Corporation or Sale of Assets or Stock. Upon any dissolution or liquidation of
the Corporation, or upon a merger, consolidation or reorganization of the
Corporation with one or more other corporations in which the Corporation is not
the surviving corporation, or upon a sale of all or substantially all of the
assets of the Corporation to another corporation, or upon any transaction
(including, without limitation, a merger or reorganization in which the
Corporation is the surviving corporation) approved by the Board that results in
any person or entity owning more than 50 percent of the combined voting power
of all classes of stock of the Corporation, the Plan and all Options
outstanding hereunder shall terminate, except to the extent provision is made
in writing in connection with such transaction for the continuation of the Plan
and/or the assumption of the Options theretofore granted, or for the
substitution for such Options of new Options covering the stock of a successor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number and kinds of shares and exercise prices, in which event the Plan
and Options theretofore granted shall continue in the manner and under the
terms so provided. In the event of any such termination of the Plan, the Option
Period shall be deemed to have ended on the last Trading Day prior to such
termination, and, unless the Administrator determines otherwise in its

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discretion, each participating employee shall have the ability to choose
either to (i) have all monies then credited to such employee’s account
(including interest, to the extent any has accrued) returned to such
participating employee or (ii) exercise his Options in accordance with Section
6 on such last Trading Day; provided, however, that if a participating employee
does not exercise his right of choice, his Options shall be deemed to have been
automatically exercised in accordance with Section 6 on such last Trading Day.
The Administrator shall send written notice of an event that will result in
such a termination to all participating employees not later than the time at
which the Corporation gives notice thereof to its stockholders.

     (d)     Adjustments. Adjustments under this Section 13 related to stock or
securities of the Corporation shall be made by the Committee, whose
determination in that respect shall be final, binding, and conclusive.

     (e)     No Limitations on Corporation. The grant of an Option pursuant to the
Plan shall not affect or limit in any way the right or power of the Corporation
to make adjustments, reclassifications, reorganizations or changes of its
capital or business structure or to merge, consolidate, dissolve or liquidate,
or to sell or transfer all or any part of its business or assets.

     14.     Amendment of the Plan. The Board may at any time, and from time to
time, amend this Plan in any respect, except that (a) if the approval of any
such amendment by the stockholders of the Corporation is required by Code
section 423, such amendment will not be effected without such approval, and (b)
in no event may any amendment be made which would cause the Plan to fail to
comply with Code section 423 unless expressly so provided by the Board.

     15.     Insufficient Shares. In the event that the total number of shares of
Common Stock specified in elections to be purchased under any Option plus the
number of shares purchased under all Options previously granted under this Plan
exceeds the maximum number of shares issuable under this Plan, the
Administrator will allot the shares then available on a pro rata basis. Any
funds then remaining in a participating employee’s account after purchase of
the employee’s pro-rata number of shares will be refunded.

     16.     Termination of the Plan. This Plan may be terminated at any time by
the Board. Except as otherwise provided in Section 13(c) hereof, upon
termination of this Plan all outstanding Options shall immediately terminate
and amounts in the employees’ accounts will be promptly refunded.

     17.     Governmental Regulations.

     (a)     The Corporation’s obligation to sell and deliver Common Stock under
this Plan is subject to listing on a national stock exchange or quotation on
Nasdaq and the approval of all governmental authorities required in connection
with the authorization, issuance or sale of such stock.

     (b)     The Plan will be governed by the laws of the State of Delaware,
without regard to the conflict of laws principles thereof, except to the extent
that such law is preempted by federal law.

     18.     Effective Date. The Plan became effective as of July 1, 2000 (the
“EFFECTIVE DATE”), subject to approval of the Plan by the stockholders of the
Corporation within 12 months of the Effective Date, and shall continue in
effect, as amended and restated herein, until further amended or terminated by
the Board.

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                                                                   Exhibit 4(hh)

                             SUB-ADVISORY AGREEMENT

                             MID CAP VALUE PORTFOLIO
                        (A SERIES OF JANUS ASPEN SERIES)

         This SUB-ADVISORY AGREEMENT (the "Agreement") is entered into effective
as of the 1st day of May 2003, by and between JANUS CAPITAL MANAGEMENT LLC, a
Delaware limited liability company ("Janus") and Perkins, Wolf, McDonnell and
Company, LLC a Delaware limited liability company ("PWM").

         WHEREAS, Janus has entered into an Investment Advisory Agreement (the
"Advisory Agreement") with Janus Aspen Series, a Delaware statutory trust (the
"Trust") and an open-end, management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), with respect to the
Mid Cap Value Portfolio, a series of the Trust (the "Fund") pursuant to which
Janus has agreed to provide investment advisory services with respect to the
Fund; and

         WHEREAS, PWM is engaged in the business of rendering investment
advisory services and is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended (the "Advisers Act"); and

         WHEREAS, Janus desires to retain PWM to furnish investment advisory
services with respect to the Fund, and PWM is willing to furnish such services;

         NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1. Duties of PWM. Janus hereby engages the services of PWM as
subadviser in furtherance of the Advisory Agreement. PWM agrees to perform the
following duties, subject to the oversight of Janus and to the overall control
of the officers and the Board of Trustees (the "Trustees") of the Trust:

            (a) PWM shall manage the investment operations of the Fund and the
composition of its investment portfolio, shall determine without prior
consultation with the Trust or Janus, what securities and other assets of the
Fund will be acquired, held, disposed of or loaned, and shall direct Janus with
respect to the execution of trades in connection with such determinations, in
conformity with the investment objectives, policies and restrictions and the
other statements concerning the Fund in the Trust's trust instrument, as amended
from time to time (the "Trust Instrument"), bylaws and registration statements
under the 1940 Act and the Securities Act of 1933, as amended (the "1933 Act"),
the Advisers Act, the rules thereunder and all other applicable federal and
state laws and regulations, and the provisions of the Internal Revenue Code of
1986, as amended (the "Code"), applicable to the Fund as a regulated investment
company;

            (b) PWM shall cause its officers to attend meetings and furnish oral
or written reports, as the Trust or Janus may reasonably require, in order to
keep Janus, the Trustees and appropriate officers of the Trust fully informed as
to the condition of the investment portfolio of
<PAGE>
the Fund, the investment decisions of PWM, and the investment considerations
which have given rise to those decisions;

            (c) PWM shall maintain all books and records required to be
maintained by PWM pursuant to the 1940 Act, the Advisers Act, and the rules and
regulations promulgated thereunder, as the same may be amended from time to
time, with respect to transactions on behalf of the Fund, and shall furnish the
Trustees and Janus with such periodic and special reports as the Trustees or
Janus reasonably may request. PWM hereby agrees that all records which it
maintains for the Fund or the Trust are the property of the Trust, agrees to
permit the reasonable inspection thereof by the Trust or its designees and
agrees to preserve for the periods prescribed under the 1940 Act and the
Advisers Act any records which it maintains for the Trust and which are required
to be maintained under the 1940 Act and the Advisers Act, and further agrees to
surrender promptly to the Trust or its designees any records which it maintains
for the Trust upon request by the Trust;

            (d) PWM shall submit such reports relating to the valuation of the
Fund's assets and to otherwise assist in the calculation of the net asset value
of shares of the Fund as may reasonably be requested;

            (e) PWM shall provide Janus with such assistance and advice as Janus
may reasonably request as to the manner in which to exercise, on behalf of the
Fund, such voting rights, subscription rights, rights to consent to corporate
action and any other rights pertaining to the Fund's assets that may be
exercised, in accordance with any policy pertaining to the same that may be
adopted or agreed to by the Trustees of the Trust, so that Janus may exercise
such rights, or, in the event that the Trust retains the right to exercise such
voting and other rights, to furnish the Trust with advice as may reasonably be
requested as to the manner in which such rights should be exercised;

            (f) At such times as shall be reasonably requested by the Trustees
or Janus, PWM shall provide the Trustees and Janus with economic, operational
and investment data and reports, including without limitation all information
and materials reasonably requested by or requested to be delivered to the
Trustees of the Trust pursuant to Section 15(c) of the 1940 Act, and shall make
available to the Trustees and Janus any economic, statistical and investment
services normally available to similar investment company clients of PWM; and

            (g) PWM will provide to Janus for regulatory filings and other
appropriate uses materially accurate and complete information relating to PWM as
may be reasonably requested by Janus from time to time and, notwithstanding
anything herein to the contrary, PWM shall be liable to Janus for all damages,
costs and expenses, including without limitation reasonable attorney's fees
(hereinafter referred to collectively as "Damages"), incurred by Janus as a
result of any material inaccuracies or omissions in such information provided by
PWM to Janus, provided, however, that PWM shall not be liable to the extent that
any Damages are based upon inaccuracies or omissions made in reliance upon
information furnished to PWM by Janus.

         2. Further Obligations. In all matters relating to the performance of
this Agreement, PWM shall act in conformity with the Trust's Trust Instrument,
bylaws and currently effective registration statements under the 1940 Act and
the 1933 Act and any amendments or

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supplements thereto (the "Registration Statements") and with the written
policies, procedures and guidelines of the Fund, and written instructions and
directions of the Trustees and Janus and shall comply with the requirements of
the 1940 Act, the Advisers Act, the rules thereunder, and all other applicable
federal and state laws and regulations. Janus agrees to provide to PWM copies of
the Trust's Trust Instrument, bylaws, Registration Statement, written policies,
procedures and guidelines and written instructions and directions of the
Trustees and Janus, and any amendments or supplements to any of them at, or, if
practicable, before the time such materials become effective.

         3. Obligations of Janus. Janus shall have the following obligations
under this Agreement:

            (a) To keep PWM continuously and fully informed (or cause the
custodian of the Fund's assets to keep PWM so informed) as to the composition of
the investment portfolio of the Fund and the nature of all of the Fund's assets
and liabilities from time to time;

            (b) To furnish PWM with a certified copy of any financial statement
or report prepared for the Fund by certified or independent public accountants
and with copies of any financial statements or reports made to the Fund's
shareholders or to any governmental body or securities exchange; and

            (c) To furnish PWM with any further materials or information which
PWM may reasonably request to enable it to perform its function under this
Agreement.

         4. Compensation. For PWM's services under this Agreement, the Fund
shall pay to PWM a fee equal to 50% of the advisory fee payable to Janus from
the Fund before reduction of the Janus fee by the amount of the fee payable to
PWM (net of any reimbursement of expenses incurred or fees waived by Janus).
Such fee shall be computed and accrued daily and payable monthly as of the last
day of each month during which or part of which this Agreement is in effect and
shall be paid at the same time and in the same amount as the fees payable to
Janus. For the month during which this Agreement becomes effective and the month
during which it terminates, however, there shall be an appropriate proration of
the fee payable for such month based on the number of calendar days of such
month during which the Agreement is effective.

         5. Expenses. PWM shall pay all its own costs and expenses incurred in
rendering its service under this Agreement.

         6. Representations of PWM. PWM hereby represents, warrants and
covenants to Janus as follows:

            (a) PWM: (i) is registered as an investment adviser under the
Advisers Act and will continue to be so registered for so long as this Agreement
remains in effect; (ii) is not prohibited by the 1940 Act or the Advisers Act
from performing the services contemplated by this Agreement; (iii) has met, and
will continue to meet for so long as this Agreement remains in effect, any other
applicable federal or state requirements, or the applicable requirements of any
regulatory or industry self-regulatory organization necessary to be met in order
to perform the services contemplated by this Agreement; (iv) has the legal and
corporate authority to enter into and perform the services contemplated by this
Agreement; and (v) will immediately notify Janus

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<PAGE>
of the occurrence of any event that would disqualify PWM from serving as an
investment adviser of an investment company pursuant to Section 9(a) of the 1940
Act or otherwise, and of the institution of any administrative, regulatory or
judicial proceeding against PWM that could have a material adverse effect upon
PWM's ability to fulfill its obligations under this Agreement.

            (b) PWM has adopted a written code of ethics complying with the
requirements of Rule 17j-1 under the 1940 Act and will provide Janus with a copy
of such code of ethics, together with evidence of its adoption. Within 45 days
after the end of the last calendar quarter of each year that this Agreement is
in effect, the president or a vice president of PWM shall certify to Janus that
PWM has complied with the requirements of Rule 17j-1 during the previous year
and that there has been no violation of PWM's code of ethics or, if such a
violation has occurred, that appropriate action was taken in response to such
violation. Upon the written request of Janus, PWM shall permit Janus, its
employees or its agents to examine the reports required to be made to PWM by
Rule 17j-1(c)(1) and all other records relevant to PWM's code of ethics.

            (c) PWM has provided Janus with a copy of its Form ADV as most
recently filed with the U.S. Securities and Exchange Commission ("SEC") and
will, promptly after filing any amendment to its Form ADV with the SEC, furnish
a copy of such amendment to Janus.

            (d) PWM will notify Janus of any change in the identity or control
of its shareholders owning a 10% or greater interest in PWM, or any change that
would constitute a change in control of PWM under the 1940 Act, prior to any
such change if PWM is aware, or should be aware, of any such change, but in any
event as soon as any such change becomes known to PWM.

         7. Term. This Agreement shall become effective as of the date first set
forth above and shall continue in effect until July 1, 2004 unless sooner
terminated in accordance with its terms, and shall continue in effect from year
to year thereafter only so long as such continuance is specifically approved at
least annually by the vote of a majority of the Trustees of the Trust who are
not parties hereto or interested persons of the Trust, Janus or PWM, cast in
person at a meeting called for the purpose of voting on the approval of the
terms of such renewal, and by either the Trustees of the Trust or the
affirmative vote of a majority of the outstanding voting securities of the Fund.
The annual approvals provided for herein shall be effective to continue this
Agreement from year to year if given within a period beginning not more than
ninety (90) days prior to July 1 of each applicable year, notwithstanding the
fact that more than three hundred sixty-five (365) days may have elapsed since
the date on which such approval was last given.

         8. Termination. This Agreement may be terminated at any time, without
penalty, by the Trustees or by the shareholders of the Fund acting by vote of at
least a majority of its outstanding voting securities, provided in any such case
that 60 days' advance written notice of termination be given to PWM at its
principal place of business. This Agreement may also be terminated by Janus or
the Trust: (i) by giving 60 days' advance written notice of termination to PWM;
(ii) upon a material breach by PWM of any of the representations and warranties
set forth in Section 6 of this Agreement, if such breach shall not have been
cured within a 20-day period after notice of such breach; or (iii) if PWM
becomes unable to discharge its duties and

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<PAGE>
obligations under this Agreement. This Agreement may be terminated by PWM at any
time, without penalty upon a material breach by Janus of any of the obligations
set forth in Section 3 of this Agreement, if such breach shall not have been
cured within a 20-day period after notice of such breach. This Agreement may be
terminated by PWM after May 1, 2005 upon three years' written notice. In
addition, this Agreement shall terminate, without penalty, upon the termination
of the Advisory Agreement.

         9. Assignment. This Agreement shall automatically terminate in the
event of its assignment.

         10. Amendments. This Agreement may be amended by the parties only in a
written instrument signed by the parties to this Agreement and only if such
amendment is specifically approved (i) by a majority of the Trustees, including
a majority of the Trustees who are not interested persons (as that phrase is
defined in Section 2(a)(19) of the 1940 Act) of the Trust or Janus, PWM or their
affiliates, and (ii) if required by applicable law, by the affirmative vote of a
majority of the outstanding voting securities of the Fund (as that phrase is
defined in Section 2(a)(42) of the 1940 Act).

         11. Limitation on Personal Liability. All parties to this Agreement
acknowledge and agree that the Trust is a series trust and all debts,
liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to a particular series shall be enforceable against the
assets held with respect to such series only, and not against the assets of the
Trust generally or against the assets held with respect to any other series and
further that no Trustee, officer or holder of shares of beneficial interest of
the Trust shall be personally liable for any of the foregoing.

         12. Limitation of Liability of PWM. Janus will not seek to hold PWM,
and PWM shall not be, liable for any error of judgment or mistake of law or for
any loss arising out of any investment or for any act or omission taken with
respect to the Fund, except for willful misfeasance, bad faith or gross
negligence in the performance of its duties, or by reason of reckless disregard
of its obligations and duties hereunder and except to the extent otherwise
provided by law. As used in this section, "PWM" shall include any affiliate of
PWM performing services for the Fund contemplated hereunder and directors,
officers and employees of PWM and such affiliates.

         13. Activities of PWM. The services of PWM hereunder are not to be
deemed to be exclusive, and PWM is free to render services to other parties, so
long as its services under this Agreement are not materially adversely affected
or otherwise impaired thereby. Nothing in this Agreement shall limit or restrict
the right of any director, officer or employee of PWM to engage in any other
business or to devote his or her time and attention in part to the management or
other aspects of any other business, whether of a similar or a dissimilar
nature. It is understood that Trustees, officers and shareholders of the Trust
are or may become interested in PWM as directors, officers and shareholders of
PWM, that directors, officers, employees and shareholders of PWM are or may
become similarly interested in the Trust, and that PWM may become interested in
the Trust as a shareholder or otherwise.

                                       5
<PAGE>
         14. Third Party Beneficiary. The parties expressly acknowledge and
agree that the Trust is a third party beneficiary of this Agreement and that the
Trust shall have the full right to sue upon and enforce this Agreement in
accordance with its terms as if it were a signatory hereto. Any oversight,
monitoring or evaluation of the activities of PWM by Janus, the Trust or the
Fund shall not diminish or relieve in any way the liability of PWM for any of
its duties and responsibilities under this Agreement.

         15. Notices. Any notice or other communication required to be given
pursuant to this Agreement shall be deemed duly given if delivered personally or
by overnight delivery service or mailed by certified or registered mail, return
receipt requested and postage prepaid, or sent by facsimile addressed to the
parties at their respective addresses set forth below, or at such other address
as shall be designated by any party in a written notice to the other party.

                  (a)      To Janus at:

                           Janus Capital Management LLC
                           100 Fillmore Street
                           Denver, Colorado  80206
                           Attention:  General Counsel
                           Phone:  (303) 333-3863
                           Fax:  (303) 316-5728

                  (b)      To PWM at:

                           Perkins, Wolf, McDonnell and Company, LLC
                           310 South Michigan Avenue
                           Chicago, Illinois  60604
                           Attention:  President
                           Phone:  (312) 922-0355
                           Fax:  (312) 922-0418

                  (c)      To the Trust at:

                           Janus Aspen Series
                           100 Fillmore Street
                           Denver, Colorado  80206
                           Attention:  General Counsel

         16. Certain Definitions. The terms "vote of a majority of the
outstanding voting securities," "assignment," "approved at least annually," and
"interested persons" shall have the respective meanings specified in the 1940
Act, as now in effect or hereafter amended, and the rules and regulations
thereunder, subject to such orders, exemptions and interpretations as may be
issued by the SEC under the 1940 Act and as may be then in effect.

         17. Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Colorado (without giving effect to the conflicts of
laws principles thereof) and the 1940 Act. To the extent that the applicable
laws of the State of Colorado conflict with the applicable provisions of the
1940 Act, the latter shall control.

                                       6
<PAGE>
         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized officers designated below as of the day and
year first above written.

                                    JANUS CAPITAL MANAGEMENT LLC

                                    By:    /s/Thomas A. Early
                                           ----------------------------------
                                           Thomas A. Early
                                           Vice President

                                    PERKINS, WOLF, MCDONNELL AND COMPANY, LLC

                                    By:    /s/ Gregory E. Wolf
                                           ------------------------
                                    Name:  Gregory E. Wolf
                                           ------------------------
                                    Title: COO
                                           ------------------------

                                    ACKNOWLEDGMENT:

                                    The undersigned acknowledges
                                    that it is obligated to
                                    compensate PWM for its services
                                    in accordance with the
                                    provisions of Section 4 of this
                                    Agreement.

                                    JANUS ASPEN SERIES on behalf of Mid
                                    Cap Value Portfolio

                                    By:    /s/ Kelly Abbott Howes
                                           --------------------------------
                                           Kelley Abbott Howes
                                           Vice President

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