Document:

Exhibit
10.1

 

EXECUTION
COPY

 

SEVERANCE RIGHTS AGREEMENT

 

THIS AGREEMENT, dated as of the Effective
Date specified below (this “Agreement”) by and between Janus Capital Group
Inc., a Delaware corporation (the “Company”), and Gary D. Black (the “Executive”),
is effective this 1st day of May, 2008.

 

WHEREAS, the Executive is currently Chief
Executive Officer (“CEO”) of the Company and has been employed by the Company
since April 28, 2004;

 

WHEREAS, the Employment Agreement between the
Company and the Executive dated September 25, 2006 shall expire on April 30,
2008 (the “Employment Agreement”); and

 

WHEREAS, the Company and the Executive wish
to enter into this Severance Rights Agreement to supersede the Employment
Agreement upon its expiration;

 

NOW, THEREFORE, in consideration of the
premises and of the mutual covenants herein contained, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Executive and the Company agree as follows.

 

1.             Effective Date; Term of Agreement.  The “Effective
Date” shall mean May 1, 2008.  As of
the Effective Date, this Agreement shall supersede the Employment
Agreement.  The term of this Agreement shall commence on
the Effective Date and continue until April 30, 2009; provided, however,
that commencing on May 1, 2009 and each May 1st thereafter, the
above-referenced date and the term of this Agreement shall automatically be
extended for one additional year unless at least ninety (90) days prior to such
May 1st date, the Company or the Executive shall have given notice that it
or he does not wish to extend this Agreement.

 

2.             Termination of Employment.

 

(a)            Death
or Disability.  The Executive’s
employment shall terminate automatically upon the Executive’s death.  If the Company determines in good faith that  Disability of the Executive has occurred while
the Executive is an employee of the Company (pursuant to the definition of
Disability set forth below), it may provide to the Executive written notice in
accordance with Paragraph 10(b) of this Agreement of its intention to
terminate the Executive’s employment.  In
such event, the Executive’s employment with the Company shall terminate
effective on the 30th day after receipt of such notice by the Executive (the “Disability
Effective Date”), provided that, within the 30 days after the receipt of such
notice, the Executive shall not have returned to full-time performance of the
Executive’s duties.  For purposes of this
Agreement, “Disability” shall mean the absence of the Executive from the
Executive’s duties with the Company on a full-time basis for 180 consecutive
business days as a result of incapacity due to mental or physical illness,
which is determined to be total and permanent by a physician selected by the
Company or its insurers and reasonably acceptable to the Executive or the
Executive’s legal representative.

 

(b)            Cause.  The Company may terminate the Executive’s
employment with or without Cause.  For
purposes of this Agreement, “Cause” shall mean:

 

 

(i)             the
continued failure of the Executive to perform substantially the Executive’s
duties with the Company (other than any such failure resulting from incapacity
due to physical or mental illness, but including a failure by Executive for any
other reason to meet reasonable, material performance expectations that are not
measured by Company economic performance, or that are not measured by
unsatisfactory investment performance that is not specifically attributable
primarily to Executive’s acts or omissions), after a written demand for
substantial performance is delivered to the Executive by the Board or its
representative, which specifically identifies the manner in which the Board
believes that the Executive has not substantially performed the Executive’s
duties and which gives the Executive no fewer than 120 (one-hundred twenty)
days to cure the deficiency noted therein; or

 

(ii)            the
willful engaging by the Executive in illegal conduct or gross misconduct that
is materially and demonstrably injurious to the Company; or

 

(iii)           the
conviction of a felony (other than a traffic related felony) or guilty or nolo
contendere plea by the Executive with respect thereto; or

 

(iv)           a
material breach by the Executive of any material provision of this Agreement;
provided that, if such breach is promptly curable, the Company shall not have
the right to terminate Executive’s employment for Cause pursuant to this
Paragraph 2(b)(iv) unless Executive, having received written notice of the
breach, fails to cure the breach within a reasonable time which shall be no less
than 30 (thirty) days; or

 

(v)            a
willful or reckless violation of a material regulatory requirement, or of any
material written Company policy or procedure, that is materially and
demonstrably injurious to the Company; or

 

(vi)           Executive’s
failure to obtain or maintain, or inability to qualify for, any license
required for the performance of Executive’s material job responsibilities, or
the suspension or revocation of any such license held by the Executive.

 

(c)            No act or failure to act on the part of the
Executive shall be considered “willful” unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive’s act or omission was in the best interests of the Company.  Any act, or failure to act, based upon
express authority given pursuant to a resolution duly adopted by the Board with
respect to such act or omission or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by
the Executive in his good faith and in the best interests of the Company.

 

(d)            Good Reason.  The Executive may terminate
his employment for Good Reason and such a termination shall be treated as a
termination “not for Cause.”  For
purposes of this Agreement, “Good Reason” shall mean in the absence of a
written consent of the Executive:

 

(i)             a material negative and non-temporary change,
diminution or reduction, for any reason including a Change in Control, in
Executive’s current authority, title, reporting relationship or duties as Chief
Executive Officer, including requiring a reporting relationship to an Executive
Chairman, or other reporting relationship that has the practical effect 

 

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of materially diminishing Executive’s current authority, or the
assignment to Executive of material duties that are materially and negatively
inconsistent with Executive’s position as Chief Executive Officer, in either
case of a magnitude that changes the fundamental character of Executive’s job
as Chief Executive Officer to such an extent as to constitute a de facto
demotion, and in either case excluding for this purpose any action not taken in
bad faith and that is remedied by the Company promptly after receipt of notice
hereof given by the Executive as provided in Paragraph 3(b) below; or

 

(ii)            Executive’s
removal from the position of Chief Executive Officer of the Company, or removal
from the Company’s senior-most
management body (other than the Company’s Board of Directors); or

 

(iii)           any
material reduction in the overall value of the Executive’s compensation and
benefits package, other than a reduction not occurring in bad faith and which
is remedied by the Company promptly after receipt of notice thereof given by
the Executive as provided in Paragraph 3(b) below, and excluding any
reduction applicable equally to all members of the Executive Committee (“Peer
Executives”) following an extraordinary decline in the Company’s earnings,
share price or public image; or

 

(iv)           any
failure by the Company to comply with and satisfy Paragraph 9(c) of this
Agreement, excluding for this purpose any action not taken in bad faith and
which is remedied by the Company promptly after receipt of notice hereof given
by the Executive as provided in Paragraph 3(b) below; or

 

(v)            requiring
Executive to relocate outside of the New York metropolitan area in a manner that
results in a material negative change to the geographic location within which Executive
primarily performs his services to the Company.

 

The Executive’s mental or
physical incapacity following the occurrence of an event described above in
clauses (i) through (v) shall not affect the Executive’s ability to
terminate employment for Good Reason.

 

3.             Termination Procedures.

 

(a)            Termination for Cause.

 

(i)             If
the Company desires to terminate Executive’s employment for Cause pursuant to
Paragraph 2(b)(ii), (iii), (iv) or (v) above, the cessation of
employment of the Executive shall not be deemed to be for Cause unless and
until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the affirmative vote of not less than two-thirds of the entire
membership of the Board (not including the Executive) at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to the
Executive and the Executive is given an opportunity, together with counsel, to
be heard before the Board) (a “Two-Thirds Board Vote”), finding that, in the
good faith opinion of the Board, the Executive is guilty of the conduct
described in Paragraph 2(b)(ii), (iii), (iv) or (v) above, and
specifying the particulars thereof in detail.

 

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(ii)            If
the Company desires to terminate Executive’s employment for Cause pursuant to
Paragraph 2(b)(i), above, the cessation of employment of the Executive shall
not be deemed to be for Cause due to Executive’s failure to meet the Company’s
reasonable, material performance expectations that are not measured by the
Company’s economic performance or that are not measured by unsatisfactory
performance that is not specifically attributable primarily to Executive’s act
or omissions, except pursuant to a resolution duly adopted by the affirmative
vote of not less than the entire membership of the Board (not including the
Executive) less one (meaning, for example, that at least 10 of 11 Board Members,
not including the Executive, must vote in support of the resolution) at a
meeting of the Board called and held for such purpose (after reasonable notice
is provided to the Executive and the Executive is given an opportunity,
together with counsel, to be heard before the Board), finding that, in the good
faith opinion of the Board, the Executive failed to timely cure the performance
deficiency in question.

 

(b)            Sunset on Right to Terminate for Good Reason.  If
circumstances arise giving Executive the right to terminate this Agreement for
Good Reason, the Executive shall within 90 days notify the Company in writing
of the existence of such circumstances, and the Company shall have an
additional 30 days within which to investigate and remedy the circumstances,
after which 30 days the Executive shall have an additional 60 days within which
to exercise the right to terminate for Good Reason.  If Executive does not timely do so the right
to terminate for Good Reason shall lapse and be deemed waived, and the
Executive shall not thereafter have the right to terminate for Good Reason
unless further circumstances occur giving rise independently to a right to
terminate for Good Reason, in which case the provisions of this Paragraph 3(b) shall
once again apply, but in which case no consideration shall be given to other,
prior circumstances that precipitated a notice by Executive of a purported
right to terminate for Good Reason.

 

(c)            Notice of Termination.  Any
termination by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Paragraph 10(b) of this Agreement.  For purposes of this Agreement, a “Notice of
Termination” means a written notice which: (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than thirty days after the
giving of such notice).  The failure by
the Executive or the Company to set forth in the Notice of Termination any fact
or circumstance which contributes to a showing of Good Reason or Cause shall
not constitute a waiver of any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive’s or the
Company’s rights hereunder.

 

(d)            Date of Termination.  “Date
of Termination” means (i) if the Executive’s employment is terminated by
the Company for Cause, or by the Executive for Good Reason, the date of receipt
of the Notice of Termination or any later date specified therein within 30 days
of such notice, as the case may be, (ii) if the Executive’s employment is
terminated by the Company 

 

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other than for Cause or Disability, the Date
of Termination shall be the date on which the Company notifies the Executive of
such termination and (iii) if the Executive’s employment is terminated by
reason of death or Disability, the Date of Termination shall be the date of
death of the Executive or the Disability Effective Date, as the case may be.

 

4.             Obligations of the Company upon Termination
of Employment.

 

(a)            Accrued Obligations.  Subject
to the terms of Paragraph 5 herein, upon any termination of Executive’s
employment, the Company shall pay to the Executive, the “Accrued Obligations,”
which shall be the sum of:

 

(i)             the
Executive’s then-current annual base salary through the Date of Termination
which shall be paid to Executive in accordance with the Company’s normal
payroll practices; and

 

(ii)            any
fully earned and vested but as-yet unpaid annual bonus and long-term incentive
awards with respect to the fiscal year of the Company prior to the Date of
Termination which shall be paid to Executive at such time as the annual bonus
would have been paid to Executive absent his termination of employment (but in
no event later than March 15th of the year following the year
in which the applicable services were performed); and

 

(iii)           any
amounts that are vested benefits, consisting of any compensation previously
deferred by the Executive, or that the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract or
agreement with the Company at or subsequent to the Date of Termination (“Other
Benefits”), which shall be payable in accordance with and at such time provided
in such plan, policy, practice or program or contract or agreement except as
explicitly modified by this Agreement.

 

(b)            Severance Pay. 
Subject to the terms of Paragraph 5 herein, if the Company terminates
the Executive’s employment other than for Cause, death or Disability, or the
Executive terminates his employment for Good Reason pursuant to Paragraph 2(d)(i) through
(v), then, in addition to the
Accrued Obligations, and conditioned
upon Executive’s execution within 45 days following the Date of Termination (and
if applicable non-revocation) of a legal release in a form reasonably
satisfactory to the Company in its discretion (but not in any event imposing
upon Executive any restrictive covenants different than those set forth in
Paragraph 8 below) drafted and executed so as to ensure a final, complete and
enforceable release of all claims that Executive has or may have against the Company
relating to or arising in any way from Executive’s employment with the Company
and/or the termination thereof (but excepting claims for indemnification or
defense, whether under contract or otherwise), and complete and continuing
confidentiality of the Company’s proprietary information and trade secrets,
and, at the Company’s discretion, the circumstances of Executive’s separation
from the Company and/or compensation received by Executive in connection with
that separation (collectively, a “Conforming Legal Release” and the date on
which the Conforming Legal Release is executed, the “Release Date”), the
Company shall:

 

(i)             pay
to the Executive, in a lump sum, severance compensation in an amount equal to one
times Executive’s annual base salary and the annual bonus paid or payable to 

 

5

 

Executive in connection with his last full calendar year of employment before
the Date of Termination.  The annual base
salary component of Executive’s severance payment shall equal the greater of
the Executive’s annual base salary for the year of the Date of Termination or
that for the year preceding the year of the Date of Termination.  The annual bonus component of Executive’s
severance payment shall be equal to the greater of  Executive’s annual target bonus for the year
of the Date of Termination or Executive’s actual annual bonus paid for services
performed during the year preceding the year of the Date of Termination; and

 

(ii)             for
the one-year period following the Date of Termination, the Company shall
continue to provide benefits available under the Company’s Welfare Benefit
Plans to the Executive and his spouse and dependents on the same basis as such
benefits were provided to the Executive immediately prior to the Effective Date.  Welfare Benefit Plans shall mean all benefits
under welfare benefit plans, practices, policies and programs provided by the
Company and its affiliates (including, without limitation, medical,
prescription, dental, disability, employee life, group life, accidental death
and travel accident insurance plans and programs); and

 

(iii)            immediately
vest, and, subject to paragraph 5, pay and transfer to Executive in full all
unvested long-term incentive awards and other incentive awards granted to the
Executive, including without limitation, unvested shares
of Company restricted stock, unvested options to purchase Company stock (“stock
options”) and unvested mutual fund unit awards; provided, however, that any unvested long-term incentive award that is
a special grant outside the annual LTI grant process and that has a vesting
schedule subject to performance-based criteria shall vest and be payable if, and at such time, that the
performance criteria are satisfied and certified by the Company’s Compensation
Committee.  Each long-term incentive
award shall remain subject to, and
limited by, the terms of the award agreement and incentive plan underlying such
incentive awards; provided, however, that all stock  options shall remain exercisable for the
remainder of each stock option award’s original term; and

 

(iv)           the severance pay described in the foregoing clause (i) shall be
paid in a lump sum in cash (as applicable) within 30 days following the Release
Date or, if later on the first day when the Company’s deduction for the payment
or accrual of the severance pay described above is not subject to the deduction
limitations of Section 162(m) of the Internal Revenue Code of 1986,
as amended (the “Internal Revenue Code”); provided, however, if the events set
forth in Paragraph 5 occur, then the severance pay described in the foregoing
clause (i) shall be paid in
a lump sum in cash in accordance with Paragraph 5.

 

(c)            Death.  Subject to the terms of
Paragraph 5 herein, if the Executive’s employment is terminated by reason of
the Executive’s death, the Company shall provide the Executive’s estate or
beneficiaries with the timely payment or delivery, as applicable, of the Accrued
Obligations and shall provide
the Welfare Benefits (except for disability, employee life, group life,
accidental death and travel accident insurance benefits) to the Executive’s
spouse and dependents for a three-year period commencing as of the Date of
Termination, and shall have no other severance obligations under this
Agreement.  In addition, all incentive
awards (as described in Paragraph 4(b)(iii)) shall be treated in accordance with
the terms of Paragraph 4(b)(iii) above. 
Subject to the terms of
Paragraph 5 herein, the Accrued
Obligations shall be paid to the Executive’s estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date 

 

6

 

of Termination.  With respect to
the provision of the Other Benefits (as described in Paragraph 4(a)(iii) above),
the term “Other Benefits” as utilized in this Paragraph 4(c) shall
include, and the Executive’s estate and /or beneficiaries shall be entitled to
receive, benefits at least equal to death benefits as in effect on the date of
the Executive’s death with respect to Peer Executives of the Company and their
beneficiaries.

 

(d)            Disability.  Subject to the terms of Paragraph 5 herein, if
the Executive’s employment is terminated by reason of the Executive’s
Disability, the Company shall provide the Executive with the timely payment or
provision, as applicable, of the Accrued Obligations and the provision of
Welfare Benefits (except for disability, employee life, group life, accidental
death and travel accident insurance benefits) to the Executive, his spouse and
dependents for a three-year period commencing as of the Date of Termination,
and, in addition, the Company shall pay Executive a lump sum payment equivalent
to three times the annual premium paid by the Company in connection with
Executive’s employee life, group life, accidental death and travel accident
insurance benefits as of Executive’s last date of active employment with the
Company.  All incentive awards shall be
treated in accordance with the terms of Paragraph 4(b)(iii) above.  Subject to the terms of Paragraph 5 herein, the Accrued Obligations shall be paid to
the Executive in a lump sum in cash within 30 days of the Date of Termination.  With respect to the provision of Other
Benefits (as described in Paragraph 4(a)(iii) above), the term “Other
Benefits” as utilized in this Paragraph 4(d) shall include, and the
Executive shall be entitled to receive after the Disability Effective Date,
disability and other benefits as in effect at any time thereafter generally
with respect to Peer Executives of the Company and their dependents.

 

(e)            Cause;
Other than for Good Reason.  Subject
to the terms of Paragraph 5 herein, if the Company terminates Executive’s
employment for Cause or the Executive terminates his employment without Good
Reason, the Company shall pay to the Executive the Accrued Obligations, in each
case to the extent theretofore unpaid.  In
the event of a termination for Cause under Paragraph 2(b)(i), the Executive
shall receive, without forfeiture, the Accrued Obligations, and, upon signing a
Conforming Legal Release, the severance payment in Paragraph 4(b)(i).

 

(f)             Satisfaction of
Withholding Requirements.  All
payments to Executive under this Agreement are subject to and conditioned upon
satisfaction of all applicable tax withholding requirements.

 

5.             Potential Six-Month Delay.  Notwithstanding
anything contained herein to the contrary, Executive shall not be considered to
have terminated employment with the Company for purposes of Section 3
hereof unless he would be considered to have incurred a “separation from
service” from the Company within the meaning of Section 409A of the
Internal Revenue Code.  If current or future
regulations or guidance from the Internal Revenue Service dictates, or the
Company’s counsel determines that, any payments or benefits due to Executive
hereunder would cause the application of an accelerated or additional tax under
Section 409A of the Internal Revenue Code, then amounts that would
otherwise be payable and benefits that would otherwise be provided pursuant to
this Agreement during the six-month period immediately following Executive’s Date
of Termination shall instead be paid on the first business day after the date
that is six months following the Executive’s Date of Termination (or death, if
earlier).

 

7

 

6.             Non-exclusivity of Rights. 
Except as otherwise specifically provided in this Agreement, nothing in
this Agreement shall prevent or limit the Executive’s continuing or future
participation in any plan, program, policy or practice provided by the Company
for which the Executive may qualify, nor shall anything herein limit or
otherwise negatively affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.  Notwithstanding any other provision of this
Agreement, the Executive shall not be entitled to receive any payments or
benefits under any severance program other than those which are described and
anticipated under this Agreement or under any Change of Control Agreement.

 

7.             Full Settlement.  The
Company’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall be subject to any lawful
indebtedness owed by the Executive to the Company.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, such amounts shall not be reduced whether or not the Executive obtains
other employment.

 

8.             Restrictive Covenants.

 

(a)            The
Executive acknowledges that his employment as a senior officer of the Company
creates a relationship of confidence and trust between the Executive and the
Company with respect to confidential and proprietary information applicable to
the business of the Company and its clients. 
The Executive further acknowledges the highly competitive nature of the
business of the Company.  Accordingly, it
is agreed that the restrictions contained in this Paragraph 8 are reasonable
and necessary for the protection of the interests of the Company and that any
violation of these restrictions would cause substantial and irreparable injury
to the Company.

 

(b)            Protection
of Confidential Information.

 

(i)           Definition
of “Confidential Information.” 
“Confidential Information” means all nonpublic information (whether in
paper or electronic form, or contained in Executive’s memory, or otherwise
stored or recorded) relating to or arising from the Company’s business,
including, without limitation, trade secrets used, developed or acquired by the
Company in connection with its business. 
Without limiting the generality of the foregoing, “Confidential
Information” shall specifically include all information concerning the manner
and details of the Company’s operation, organization and management; financial
information and/or documents and nonpublic policies, procedures and other
printed, written or electronic material generated or used in connection with the
Company’s business; the Company’s business plans and strategies; the identities
of the Company’s customers and the specific individual customer representatives
with whom the Company works; the details of the Company’s relationship with
such customers and customer representatives; the identities of distributors,
contractors and vendors utilized in the Company’s business; the details of the Company’s
relationships with such distributors, contractors and vendors; the nature of
fees and charges made to the Company’s customers; nonpublic forms, contracts and
other documents used in the Company’s business; all information concerning the Company’s
employees, agents and contractors, including without limitation such persons’ 

 

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compensation,
benefits, skills, abilities, experience, knowledge and shortcomings, if any;
the nature and content of computer software used in the Company’s business,
whether proprietary to the Company or used by the Company under license from a
third party; and all other information concerning the Company’s concepts,
prospects, customers, employees, agents, contractors, earnings, products,
services, equipment, systems, and/or prospective and executed contracts and
other business arrangements.  “Confidential
Information” does not include information that is in the public domain through
no wrongful act on the part of Executive, nor does it include information,
knowledge and know-how already within Executive’s possession or memory before
the Effective Date.  In the event of a
dispute concerning whether Executive had Confidential Information within his
possession or memory before the Effective Date, the Company shall have the
burden of proving that the Confidential Information in question was not in the
Executive’s memory before the Effective Date, and that Executive used or
disclosed such Confidential Information in violation of this Agreement.

 

(ii)          Executive’s Use
of Confidential Information.  Except
in connection with and in furtherance of Executive’s work on Company’s behalf,
Executive shall not, without the Company’s prior written consent, at any time,
directly or indirectly: (i) use any Confidential Information for any
purpose; or (ii) disclose or otherwise communicate any Confidential
Information to any person or entity.

 

(iii)         Records
Containing Confidential Information. 
“Confidential Records” means all documents and other records, whether in
paper, electronic or other form, that contain or reflect any Confidential
Information.  All Confidential Records
prepared by or provided to Executive are and shall remain Company’s
property.  Except in connection with and
in furtherance of Executive’s work on Company’s behalf or with Company’s prior
written consent, Executive shall not, at any time, directly or indirectly: (i) copy
or use any Confidential Record for any purpose; or (ii) show, give, sell,
disclose or otherwise communicate any Confidential Record or the contents of
any Confidential Record to any person or entity.  Upon the termination of Executive’s
employment with the Company, or upon Company’s request, Executive shall
immediately deliver to the Company or its designee (and shall not keep in
Executive’s possession or deliver to any other person or entity) all
Confidential Records and all other Company property in Executive’s possession
or control.

 

(c)          While
the Executive is employed with the Company, and for a period of one year
following the Date of Termination for any reason, the Executive shall not (nor
shall the Executive cause, encourage or provide assistance to, anyone else to):

 

(i)           Interfere
with any relationship which may exist from time to time between the Company, or
any affiliate of the Company, and any of its employees, consultants, agents or
representatives; or

 

(ii)          Employ or otherwise
engage, or attempt to employ or otherwise engage, in or on behalf of any
Competitive Business, any person who is employed or engaged as an employee,
consultant, agent or representative of the Company or any affiliate of the
Company, or any person who was employed or engaged as an employee, consultant,
agent or representative 

 

9

 

of the Company or
any affiliate of the Company within the six month period immediately preceding
the Executive’s termination; or

 

(iii)         Solicit directly or
indirectly on behalf of the Executive or a Competitive Business, the customer
business or account of any investment advisory or investment management client
to which the Company or any affiliate of the Company shall have rendered
service during the six month period immediately preceding the Executive’s
termination; or

 

(iv)         Directly or
indirectly divert or attempt to divert from the Company or any affiliate of the
Company any business in which the Company or any affiliate of the Company has
been actively engaged during the term hereof or interfere with any relationship
between the Company, or any affiliate of the Company, and any of its clients.

 

(d)           “Competitive
Business” means any business which provides investment advisory or investment
management services.  For the purposes of
this Paragraph 8, “affiliate” means any corporation, partnership, limited
liability company, trust, or other entity which controls, is controlled by or
is under common control with the Company.

 

(e)            For
clarity and without limiting the generality of the foregoing, this Agreement
shall not be applied so as to prohibit Executive from returning, at any time,
to work for Goldman Sachs Asset Management, Alliance Bernstein or any other
financial services business or financial institution, public or private, so
long as, in performing services for such a subsequent employer, Executive
complies with his obligations, under Paragraph 8(b) above, to refrain from
misusing or disclosing the Company’s Confidential Information, and under
Paragraph 8(c) above, to refrain from interfering with the Company’s human
resource and business relationships, and diverting Company business
opportunities, all as more fully described above in Paragraphs 8(b) and 8(c).

 

(f)            If
any court shall determine that the duration, geographic limitations, subject or
scope of any restriction contained in this Paragraph 8 is unenforceable, it is
the intention of the parties that this Paragraph 8 shall not thereby be
terminated but shall be deemed amended to the extent required to make it valid
and enforceable, such amendment to apply only with respect to the operation of
this Paragraph 8 in the jurisdiction of the court that has made the
adjudication.

 

(g)           The
Executive acknowledges that the restrictive covenants of Paragraph 8 are
reasonable and that irreparable injury will result to the Company and to its
business and properties in the event of any breach by the Executive of any of
those covenants, and that the Executive’s continued employment is predicated on
the commitments undertaken by the Executive pursuant to Paragraph 8.  In the event any of the covenants of
Paragraph 8 are breached, the Company shall be entitled, in addition to any
other remedies and damages available, to injunctive relief to restrain the
violation of such covenants by the Executive or by any person or persons acting
for or with the Executive in any capacity whatsoever.

 

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9.             Successors.

 

(a)            This Agreement is personal to the Executive
and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by Will or the laws of descent and
distribution.  This Agreement shall inure
to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)           This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.

 

(c)            The
Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly, and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall
mean the Company as herein defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

10.           Miscellaneous.

 

(a)            This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware without reference to
principles of conflict of laws.  The
captions of this Agreement are not part of the provisions hereof and shall have
no force or effect.  This Agreement may
not be amended or modified otherwise than by a written agreement executed by
the parties hereto or their respective successors and legal representatives.

 

(b)           All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

	
  If to the Executive:

  	
  At the most recent address
  on file at the Company,

  
	
   

  	
   

  
	
  And with a copy to:

  	
  McCarter &
  English, LLP

  
	
   

  	
  245 Park Avenue

  
	
   

  	
  New York, NY 10167

  
	
   

  	
  Attention: Steven Eckhaus

  
	
   

  	
  (212) 609-6800

  
	
   

  	
  seckhaus@mccarter.com

  

 

11

 

If to the Company:

 

Janus Capital Group Inc.

151 Detroit Street

Denver, Colorado 80206

Attn.: General Counsel

 

or to such other address as either party
shall have furnished to the other in writing in accordance herewith, Notice and
communications shall be effective when actually received by the addressee.

 

(c)            The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement.

 

(d)           The
Company may withhold from any amounts payable under this Agreement such
Federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

 

(e)            The
Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Executive or
the Company may have hereunder shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

 

(f)            In
the event of any good faith dispute relating to or arising from this Agreement,
the Company will reimburse the Executive for the reasonable expenses incurred
by the Executive, including reasonable attorneys’ fees; provided, however,
that any reimbursement of such expenses must be made no later than the end of
the taxable year following the year in which such expenses are incurred; further,
provided, however, that the Executive must return all of the
reimbursement payments made by the Company at the time the dispute is resolved
if the Executive does not prevail in such dispute.

 

(g)           In
the event of any dispute relating to or arising from this Agreement, the forum
in which the dispute shall be tried shall be determined by the judge assigned
to the first-filed such action, who shall resolve the dispute in accordance
with the law generally governing such matters but who also shall give
particular emphasis to the location of relevant witnesses, records and events,
and who shall presume that each party has adequate economic and other resources
to litigate this matter fully and fairly in any otherwise appropriate forum.

 

[SIGNATURES FOLLOW]

 

12

 

	
  Gary D. Black  

  	
  Janus Capital Group Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
  /s/ Gary D. Black

  	
   

  	
  By:

  	
  /s/ Kelley A. Howes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  March 28, 2008

  	
   

  	
  Date:

  	
  April 2, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

13Exhibit 10.1

 

COVANCE
INC.

 

RESTRICTED
STOCK AGREEMENT

 

2007 Employee Equity Participation Plan

(2008 Award)

 

RESTRICTED STOCK
AGREEMENT dated as of March 31, 2008
(the “Agreement”) between COVANCE INC., a Delaware corporation (“Company”),
located at 210 Carnegie Center, Princeton, New Jersey 08540, and James W. Lovett (the “Employee”).

 

W  I  T  N  E
S  S  E  T  H:

 

A.            WHEREAS, the Employee is currently employed by the
Company, or a corporation which is a “subsidiary corporation” within the
meaning of Section 424(f) of the Internal Revenue Code of 1986, as
amended, modified or supplemented from time to time (“Code”) or which is an
entity in which the Company holds beneficially at least fifty percent (50%) of
the ownership interest (each, a “Subsidiary Company”), in an important
executive, managerial or technical capacity.

 

B.            WHEREAS, the Company desires to have the Employee remain
in the employment of the Company or a Subsidiary Company and to afford the
Employee the opportunity to acquire, or enlarge the Employee’s stock ownership
in the Company so that the Employee may have a direct proprietary interest in
the Company’s success.

 

NOW, THEREFORE, in
consideration of the premises, the mutual covenants and agreements set forth
below, and for other good and valuable consideration, receipt of which is
hereby acknowledged, the parties hereby agree as follows:

 

1.  Grant of Shares.  Subject to the terms and conditions of the
Employee Equity Participation Plan (as amended, modified or supplemented from
time to time, the “Plan”) and this Agreement, the Company hereby grants (“Grant”)
to the Employee, as of the date of this Agreement (“Grant Date”) 2,900 shares (the “Initial Shares”) of Common Stock, par
value $.01 per share (the “Common Stock”), of the Company; provided, however,
that the number of the Initial Shares may be decreased depending on the post
bonus operating margin of the Company’s nutritional chemistry services (“PBOM”)
in 2008, 2009 and 2010, all as more fully specified on Exhibit A  hereto (such Initial Shares, after giving
effect to any such decrease, being “Shares”). 
Nothing in this Paragraph 1 shall be relied on or used to interrupt the
vesting or termination requirements of Paragraphs 2 and 3.  The PBOM target for 2008 is set forth in Exhibit A
and the PBOM targets for 2009 and 2010 shall be set by the Company’s
Compensation and Organization Committee. 
The PBOM for 2008, 2009 and 2010 shall be certified by the Company’s
Compensation and Organization Committee; provided, that in determining
PBOM for any such years such Committee may include or exclude, on a basis
consistent with circumstances existing when such goals were established, as
applicable, the financial effect on PBOM for any such year arising from any
acquisition of the stock or assets 

 

 

of any other person or
entity, the divestiture of all or any of the Company’s businesses, operations
or facilities, strategic expenditures by the Company identified to the Board of
Directors as such, force majeure
events, material litigation or any other unexpected or unforeseen extraordinary
event or occurrence during the year in question.  In calculating the number of Shares to grant
Employee, if any, any of the foregoing adjustments may be considered by the
Compensation and Organization Committee in determining PBOM for the years
subsequent to the year that the event giving rise to such adjustment occurred,
as determined by the Compensation and Organization Committee.

 

2.  Vesting of Restricted Shares; Rights.  (a) The Shares shall vest on February 28,
2011.

 

(b)  Subject to the terms and conditions of this
Agreement, Employee shall have all rights relating to the Initial Shares,
subject to appropriate withholding to satisfy applicable tax requirements.

 

3.  Termination. 
(a)  The Grant with respect to any unvested Shares shall be
forfeited and be of no further force or effect upon the termination of the
Employee’s employment, for any reason, with the Company, except in the case of
his death, disability (as defined 22(e)(3) of the Code) or his retirement
with the consent of the Company, in which case all unvested Shares shall
thereupon immediately vest.

 

(b)  If the Employee
shall be transferred from the Company to a Subsidiary Company, or from a
Subsidiary Company to the Company, or from a Subsidiary Company to a Subsidiary
Company, his employment shall not be deemed to be terminated by reason of such
transfer.  The unvested portion of the
Shares shall terminate immediately if, while the Employee is employed by a
Subsidiary Company, such Subsidiary Company shall cease to be a Subsidiary
Company and the Employee is not thereupon transferred to and employed by the
Company or another Subsidiary Company.

 

4.  Construction.  Whenever the word “Employee” is
used in any provision of this Agreement in circumstances where the provision
should logically be construed to apply to the estate, personal representative,
or beneficiary to whom this Grant may be transferred by Will, by the laws of
descent and distribution, or by a qualified domestic relations order pursuant
to the Code or Title I of the Employment Retirement Income Security Act of
1974, as amended, modified or supplemented from time to time (“ERISA”), it
shall be deemed to include such person.

 

5.  Registration of Shares;
Restrictions on Transfer.  (a) 
The number of shares granted shall be registered in the name of the Employee,
but the Employee shall not be entitled to receive the Shares until the Shares
have vested.  Until the Shares have
vested and the Employee has received the Shares, the Employee may not give, grant,
sell, exchange, transfer legal title, pledge, assign or otherwise encumber or
dispose of any unvested Shares granted pursuant to the Plan or any interest
therein or this Agreement, otherwise than by Will, the laws of descent and
distribution, or by a qualified domestic relations order pursuant to the Code
or Title I of ERISA.

 

 

(b)  No assignment or
transfer of any unvested Shares, or of the rights represented thereby or this
Agreement, whether voluntary or involuntary, by operation of law or otherwise
(except by Will, the laws of descent and distribution, or a qualified domestic
relations order pursuant to the Code or Title I of ERISA), shall vest in the
assignee or transferee any interest or right herein whatsoever.  Further, immediately upon any attempt to
assign or transfer any unvested Shares granted pursuant to this Agreement, the
Grant shall immediately terminate and be of no further force or effect (except
by Will, the laws of descent and distribution, or a qualified domestic
relations order pursuant to the Code or Title I or ERISA).

 

6.  Powers.  The existence of this Grant shall
not affect in any way the right or power of the Company or its stockholders to
make or authorize any or all adjustments, recapitalization, reorganizations or
other changes in the Company’s capital structure or its business, or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred
or prior preference stocks ahead of or affecting the Common Stock or the rights
thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

 

7.  Change of Control.  Except as set forth in Paragraph 3
hereof, notwithstanding anything in this Agreement to the contrary, all Shares
which have not vested as of the date of a Change of Control (as defined below)
occurs, shall immediately vest upon a Change of Control and be delivered to the
Employee pursuant to the delivery provisions of this Agreement.  For purposes of this Agreement, a Change of
Control shall be defined as:

 

(1)   any
person (including as such term is used in Section 13(d) and 14(d)(2) of
the Securities Exchange Act of 1934, as amended) who becomes the beneficial
owner, directly or indirectly, of securities representing 20% or more of the
combined voting power of the Company’s then outstanding securities; or

 

(2)   as
a result of a proxy contest or contests or other forms of contested shareholder
votes (in each case either individually or in the aggregate), a majority of the
individuals elected to serve on the Company’s Board of Directors are different
than the individuals who served on the Company’s Board of Directors at any time
within the two years prior to such proxy contest or contests or other forms of
contested shareholder votes (in each case either individually or in the
aggregate); or

 

(3)  when
the Company’s shareholders approve a merger, or consolidation (where in each
case the Company is not the survivor thereof), or sale or disposition of all or
substantially all of the Company’s assets or a plan or partial or complete
liquidation; or

 

(4)   when
an offerer (other than the Company) purchases shares of the Company’s Common
Stock pursuant to a tender or exchange offer for securities representing 20% or
more of the combined voting power of the Company’s then outstanding securities.

 

8.  Issuance of Shares; Power of
Attorney.  (a)  In the
event that the actual number of shares of Common Stock earned by Employee, as
provided in paragraph 1 of this Agreement,

 

 

are
less than the number of Initial Shares, the Company shall be authorized to
cancel such shares evidencing the Initial Shares and reissue to the Company on
behalf of and in the name of the Employee the number of shares of Common Stock
earned in accordance with paragraph 1 of the Agreement.  The unvested Shares shall be retained by the
Company and shall bear a legend stating that such Shares are subject to the
provisions of this Agreement.  The Company
may place a “stop transfer” order with respect to all unvested Shares with its
transfer agent.

 

(b)  Within thirty (30)
days of each vesting date as set forth in Section 2 hereof, after giving
effect to any adjustments to the Initial Shares required as provided in
paragraphs 1 and 8(a) of this Agreement, the Company shall issue to the
Employee, the Shares vested during the plan year.

 

(c)  The Company shall
have the right to deduct from any vested shares a number of shares sufficient
to cover the withholding of any federal, state or local or other governmental
taxes or charges required by law or such greater amount of withholding as
permitted by applicable law, rules or regulations, or to take such other
action as may be necessary to satisfy any such withholding obligations.

 

(d)  The Employee
hereby constitutes and appoints the Company as his true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution
for him in his name, place and stead, in any and all capacities to take all
actions and to execute all instruments necessary and proper to carry out the
issuance and cancellation of the Shares hereunder.

 

(e)  The Employee
represents and warrants that he will take all actions necessary, as directed by
the Company, to cancel the certificate representing any or all unvested Shares
upon termination of his employment.

 

9.  Changes in Law.  Notwithstanding anything in this
Agreement to the contrary, if at any time any law or regulations of any
governmental authority having jurisdiction in the premises shall require either
the Company or the Employee to take any action in connection with the Shares
then to be issued, the issue of such Shares shall be deferred until such action
shall have been taken.

 

10.  Dispute.  Any dispute or disagreement which
shall arise under, as a result of, or pursuant to, this Agreement shall be
finally determined by the Company’s Compensation and Organization Committee of
the Board of Directors in its absolute and uncontrolled discretion, and any
such determination or any other determination by the Company’s Compensation and
Organization Committee of the Board of Directors under or pursuant to this
Agreement, and any interpretation by the Company’s Compensation and
Organization Committee of the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

 

11.  Securities Law Restrictions.
The Employee represents and warrants that he or she is acquiring the Shares for
investment, for his or her own account and not with a view to the distribution
thereof, and that the Employee has no present intention of disposing of the
Shares

 

 

or
any interest therein or sharing ownership thereof with any other person or
entity.  The Employee shall not sell,
hypothecate or transfer the Shares except pursuant to an effective registration
statement under the Securities Act of 1933, as amended or an applicable
exemption thereto evidenced by an opinion of counsel in form and substance
satisfactory to the Company.

 

12.  No Effect Upon Employment.   This Agreement does not give, nor shall it
be construed as giving, the Employee any right to employment by the Company or
any of its subsidiaries or affiliates.

 

13.  Data Authorization.  The Employee acknowledges and consents to the
collection, use, processing and transfer of personal data as described in this
paragraph.  The Company, its subsidiaries
and the Employee’s employer hold certain personal information about the
Employee, including the Employee’s name, home address and telephone number,
date of birth, social security number or other employee identification number,
salary, nationality, job title, any shares of stock or directorships held in
the Company, details of all options or any other entitlement to shares of stock
awarded, canceled, purchased, vested, unvested or outstanding in the Employee’s
favor, for the purpose of managing and administering the Plan (“Data”).  The Company and/or its subsidiaries will
transfer Data amongst themselves as necessary for the purpose of
implementation, administration and management of the Employee’s participation
in the Plan, and the Company and/or any of its subsidiaries may each further
transfer Data to any third parties assisting the Company in the implementation,
administration and management of the Plan. 
These recipients may be located in the European Economic Area, the
United States, or elsewhere.  The
Employee authorizes them to receive, possess, use, retain and transfer the
Data, in electronic or other form, for the purposes of implementing,
administering and managing the Employee’s participation in the Plan, including
any requisite transfer of such Data as may be required for the administration
of the Plan and/or the subsequent holding of shares of stock on the Employee’s
behalf to a broker or other third party with whom the Employee may elect to
deposit any shares of stock acquired pursuant to the Plan.  The Employee may, at any time, review Data,
require any necessary amendments to it or withdraw the consents herein in writing
by contacting the Company; however, withdrawing consent may affect the Employee’s
ability to participate in the Plan.

 

14.  Governing Law;  Binding Effect.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW JERSEY (WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF)
AND ALL QUESTIONS CONCERNING THE VALIDITY AND CONSTRUCTION THEREOF SHALL BE
GOVERNED IN ACCORDANCE WITH THE LAWS OF SAID STATE; PROVIDED, HOWEVER,
THAT ALL MATTERS OF CORPORATE GOVERNANCE AND OTHER CORPORATE MATTERS CONCERNING
DELAWARE CORPORATIONS SHALL BE GOVERNED BY THE DELAWARE GENERAL CORPORATION LAW.
Except as otherwise expressly provided herein, this Agreement shall be binding
upon and inure to the benefit of the parties hereto, their legal
representatives, successors and assigns.

 

15.  Effect on Compensation and
Discretionary Nature of Grant. 
Notwithstanding anything in this Agreement to the contrary, none of the
Shares, if any, granted or paid to Employee shall be considered compensation
for the purpose of determining Employee’s

 

 

compensation
under any other benefit or compensation plan of the Company, including, without
limitation, any bonus plan, variable compensation plan, long-term incentive
plan, pension plan or other retirement plans. 
The Employee acknowledges and agrees that the Plan is discretionary in
nature and may be amended, cancelled, or terminated by the Company, in its sole
discretion, at any time.  The grant of
restricted stock under the Plan is a one-time benefit and does not create any
contractual or other right to receive a restricted grant of stock or benefits
in lieu of restricted stock in the future. 
Future grants of restricted stock, if any, will be at the sole discretion
of the Company, including, but not limited to, the timing of any grant, the
number of shares of restricted stock and the vesting provisions.

 

16.           Section 83(b) Election.  If Employee makes an election with respect to
the receipt of the Shares pursuant to Section 83(b) of the Code (the “Election”),
such Election shall contain all information required by Treasury Regulation Section 1.83-2
and shall, in accordance with that regulation, be filed no later than 30 days
after the transfer of the Shares to the Employee.  The Election shall be filed with the Internal
Revenue Service Center at which the Employee files his or her income tax
return.  Contemporaneously with such
filing, the Employee shall furnish a copy of the Election to the Company, in
accordance with Treasury Regulation Section 1.83-2(d).

 

17.           Plan Document.  This Agreement is subject in all respects to
the Plan, a copy of which may be obtained from the Company’s Corporate Senior
Vice President, Human Resources, 210 Carnegie Center, Princeton, New
Jersey  08540.  To the extent that there is any inconsistency
or conflict between this Agreement and the Plan, the Plan shall control.

 

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

 

 

	
   

  	
  COVANCE
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

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