Document:

<PAGE>
                                                                    EXHIBIT 10.3

                   NON-QUALIFIED STOCK OPTION AWARD AGREEMENT
            ---------------------------------------------------------

                    2004 EMPLOYMENT INDUCEMENT AWARD PLAN OF
                            JANUS CAPITAL GROUP INC.
            ---------------------------------------------------------

         By this Agreement, Janus Capital Group Inc. (the "Company"), a Delaware
corporation, grants to John H. Bluher (the "Grantee"), an employee of the
Company or a Subsidiary (i) a non-qualified stock option (the "Option") to
purchase that number of shares ("Shares") of the Company's Common Stock, $.01
par value, set forth below and (ii) an equal number of limited stock
appreciation rights ("LSARs"), all subject to the terms and conditions set forth
below, in the attached Exhibit A hereto and in the Janus Capital Group Inc. 2004
Employment Inducement Award Plan, as may from time to time be amended (the
"Plan"), all of which are an integral part of this Agreement. A copy of the Plan
is attached. Capitalized terms used but not defined in this Agreement have the
meaning specified in the Plan.

                    GRANT DATE:                     AUGUST 23, 2004
                    NUMBER OF SHARES:               78,989
                    OPTION PRICE:                   $13.59

         This Option shall become exercisable as follows, provided you remain
continuously employed by the Company or a Subsidiary that is consolidated with
the Company for financial reporting purposes (a "Consolidated Subsidiary") from
the Grant Date to such date.

<Table>
<Caption>
                  DATE FIRST EXERCISABLE                NUMBER OF OPTIONS
                  ----------------------                -----------------
<S>                                                     <C>
                           06/30/2005                         26,330
                           06/30/2006                         26,330
                           06/30/2007                         26,329
</Table>

         The term of the Option shall be ten (10) years from the Grant Date
unless terminated earlier as provided in Exhibit A, Exhibit B or in the Plan.

         Please indicate your acceptance of this Agreement by signing the
enclosed copy in the space provided below and returning it to the Corporate
Secretary's Office, in the envelope provided, within 30 days after the Company's
mailing of this Agreement to you. This Option shall not be exercisable prior to
your signing this Agreement and returning it to the Company.

         I agree to be bound by the terms, conditions and provisions of the Plan
and this Agreement. I understand that by signing this Agreement I am not
obligated to exercise all or any part of this Option or any other Option.

                                JANUS CAPITAL GROUP INC.

                                By: /s/ Curt R. Foust
                                    --------------------------------------------
                                    Curt R. Foust, Assistant Corporate Secretary

ACCEPTED AND AGREED:

/s/ John H. Bluher                   Dated:   9/20         , 2004
------------------------------------        ---------------
Signature

John H. Bluher                   SSN ###-##-####
151 Detroit Street               JCG
Denver, Colorado 80206

   (RETURN ONE COPY OF THIS AGREEMENT IN THE ENCLOSED SELF-ADDRESSED ENVELOPE.
     RETAIN ONE COPY FOR YOUR RECORDS.) PLEASE SEE REVERSE SIDE TO COMPLETE
                            BENEFICIARY INFORMATION.

<PAGE>

                                    EXHIBIT A
                                       TO
                          STOCK OPTION AWARD AGREEMENT

         1. MANNER OF EXERCISE. This Option shall be exercised by delivering to
the Company (or its authorized agent), during the period in which such Option is
exercisable, (i) a written notice of your intent to purchase a specific number
of Shares pursuant to this Option (a "Notice of Exercise"), and (ii) full
payment of the Option Price for such specific number of Shares. Payment may be
made by any one or more of the following means:

                  (a) cash or personal check; or

                  (b) if approved and permitted by the Committee, through the
         delivery of Shares having a Fair Market Value on the day of exercise
         equal to such Option Price (the number of Shares may be initially
         estimated using the Fair Market Value on the last stock trading day
         preceding the exercise day, with a true-up of any differential
         effective as of the exercise date), which shares either (i) have been
         owned by you for at least six months ("Mature Shares") or (ii) were
         purchased by you on the open market. Certificates for Shares shall be
         properly endorsed with signatures guaranteed (unless such signature
         guarantee is waived by an officer of the Company), and shall represent
         Shares which are fully paid, non-assessable, and free and clear from
         all liens and encumbrances; or

                  (c) if approved and permitted by the Committee, through the
         sale of the Shares acquired on exercise of this Option through a broker
         to whom you have submitted irrevocable instructions to deliver promptly
         to the Company the amount of sale or loan proceeds sufficient to pay
         for such Shares, together with, if required by the Company, the amount
         of federal, state, local or foreign withholding taxes payable by reason
         of such exercise. A copy of such delivery instructions must also be
         delivered to the Company by the Grantee with the Notice of Exercise.

The exercise of the Option shall become effective at the time such a Notice of
Exercise has been received by the Company, which must be before the tenth
anniversary of the Grant Date (the "Expiration Date"). The exercise of this
Option as to a number of Shares will result in the cancellation of an equal
number of LSARs. You will not have any rights as a stockholder of the Company
with respect to the Shares deliverable upon exercise of this Option until a
certificate for such Shares is delivered to you.

         If the Option is exercised as permitted herein by any person or persons
other than Grantee, such Notice of Exercise shall be accompanied by such
documentation as the Company may reasonably require, including without
limitation, evidence of the authority of such person or persons to exercise the
Option and evidence satisfactory to the Company that any death taxes payable
with respect to such Shares have been paid or provided for.

                                      A-1
<PAGE>

         2. EXERCISABILITY. This Option shall become fully exercisable upon your
termination of employment with the Company or a Consolidated Subsidiary on
account of (a) Retirement, (b) death, (c) Disability or (d) termination by the
Company or a Consolidated Subsidiary other than for Cause.

         3. CHANGE OF CONTROL. This Option shall become fully exercisable upon a
Change of Control (as defined on Exhibit B hereto). Upon a Change of Control,
all LSARs then outstanding shall automatically be exercised and this Option
shall be canceled.

         4. EXERCISE AFTER TERMINATION OF AFFILIATION. This Option may be
exercised only while you are employed by the Company or a Consolidated
Subsidiary, except that this Option may also be exercised after the date on
which you cease to be so employed ("Termination Date") as follows:

                  (i) if you have a Termination of Affiliation on account of
         Retirement, you may also exercise this Option at any time during the
         first five years after your Termination Date;

                  (ii) if you have a Termination of Affiliation on account of
         Disability, you may also exercise this Option at any time during the
         first 12 months after your Termination Date;

                  (iii) if you have a Termination of Affiliation on account of
         death, the executor or administrator of your estate, your heirs or
         legatees, or beneficiary designated in accordance with the Plan, as
         applicable, may also exercise this Option at any time during the first
         12 months after your Termination Date; and

                  (iv) if you have a Termination of Affiliation on account of
         any other reason (other than a dismissal for Cause), you may also
         exercise this Option at any time during the first three months after
         your Termination Date;

provided, however, that (x) except as otherwise provided in Section 2 or 3 of
this Exhibit A, this Option may be exercised after your Termination Date only to
the extent it is exercisable on the Termination Date, (y) under no circumstances
may this Option be exercised on or after the Expiration Date, and (z) the
expiration of your Option will automatically result in the expiration of all
associated LSARs. For purposes of this Section 4, if you are employed by a
corporation or limited liability company ("LLC") that is a Consolidated
Subsidiary of the Company, you will be deemed to have had a Termination of
Affiliation as of the first day on which such corporation or LLC ceases to be a
Consolidated Subsidiary of the Company.

         5. AFFILIATION WITH COMPETITOR. Notwithstanding anything to the
contrary contained herein, if Grantee, without Company's consent, becomes
associated with, employed by, renders service to, or owns any interest in (other
than any non-substantial interest, as the Committee from

                                      A-2
<PAGE>

time to time determines) any business that is in competition with Company or any
Affiliate (as defined below), this Option shall terminate and cease to be
exercisable immediately upon such event. For purposes of this paragraph,
Affiliate means (i) any individual or entity that directly, or through one or
more intermediaries, controls, or is controlled by, or is under common control
with, the Company, and (ii) any entity in which the Company owns, directly or
indirectly, 20% or more of the combined value of all equity interests.

         6. NO WAIVER. The failure of the Company in any instance to exercise
any of its rights granted under this Agreement or the Plan shall not constitute
a waiver of any other rights that may arise under this Agreement.

         7. LIMITED TRANSFERABILITY OF OPTION. Except as provided in the
immediately following sentence, this Option is exercisable during your lifetime
only by you or your guardian or legal representative, and this Option and the
associated LSARs are not transferable except by will or the laws of descent and
distribution. To the extent and in the manner permitted by the Committee, and
subject to such terms, conditions, restrictions or limitations that may be
prescribed by the Committee, you may transfer this Option and the associated
LSARs to (i) your spouse, sibling, parent, child (including an adopted child) or
grandchild (any of which an "Immediate Family Member"); (ii) a trust, the
primary beneficiaries of which consist exclusively of you or your Immediate
Family Members; or (iii) a corporation, partnership or similar entity, the
owners of which consist exclusively of you or your Immediate Family Members.

         8. FRACTIONAL OR DE MINIMIS SHARES. Neither the Option nor the LSARs
shall be exercisable with respect to a fractional share or with respect to fewer
that ten (10) Shares, unless the remaining Shares, are fewer than ten (10)).

         9. NONSTATUTORY OPTION. This Option has been designated by the
Committee as a Nonstatutory Option; it does not qualify as an incentive stock
option.

         10. TAXES.

                  (a) The Company is not required to issue Shares upon the
         exercise of this Option unless you first pay to the Company such
         amount, if any, as may be required by the Company to satisfy any
         liability it may have to withhold federal, state, local or foreign
         income or other taxes relating to such exercise. You may elect to
         satisfy such tax withholding obligation by delivering to the Company a
         written irrevocable election to have the Company withhold a portion of
         the Shares purchased upon exercise of the Option having a Fair Market
         Value equal to the amount of taxes required to be withheld; provided,
         however, that the Committee may, at any time before you file such an
         election with the Company, revoke your right to make such an election.

                  (b) In addition, you may deliver Mature Shares to the Company
         to satisfy your federal, state and local withholding tax liability
         above the minimum amount of taxes

                                      A-3
<PAGE>

         required to be withheld by the Company, up to your maximum tax
         liability arising from the exercise of the Option; the Committee
         retains the right, in its sole discretion, to disapprove any particular
         delivery of shares of Common Stock and the Committee may, at any time
         before the delivery of such shares revoke your right to make such
         delivery.

         11. ATTESTATION TO OWNERSHIP OF MATURE SHARES. Whenever under this
Agreement you have the right to deliver Mature Shares to the Company for payment
of the Option Price pursuant to Section 1(b) or for taxes in excess of the
minimum amount of taxes required to be withheld by the Company pursuant to
Section 10(b), in lieu of physically delivering such shares to the Company, you
may elect to deliver to the Company an affidavit and such other documents
attesting to ownership of such Mature Shares in such form as is prescribed by
the Company from time to time.

         12. AMENDMENTS. This Agreement may be amended only by a writing
executed by the Company and you which specifically states that it is amending
this Agreement; provided that this Agreement is subject to the power of the
Board to amend the Plan as provided therein, except that no such amendment shall
adversely affect your rights under this Agreement without your consent.

         13. NOTICES. Any notice to be given under the terms of this Agreement
to the Company shall be addressed to the Company at its principal office, in
care of its Corporate Secretary. Any notice to be given to you shall be
addressed to you at the address listed in the Company's records. By a notice
given pursuant to this Section, either party may designate a different address
for notices. Any notice shall have been deemed given (i) when actually delivered
to the Company, or (ii) if to the Grantee, when actually delivered or deposited
in the U.S. Mail, postage prepaid and properly addressed to the party to be
notified.

         14. SEVERABILITY. If any part of this Agreement is declared by any
court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not serve to invalidate any part of this Agreement not declared
to be unlawful or invalid. Any part so declared unlawful or invalid shall, if
possible, be construed in a manner which gives effect to the terms of such part
to the fullest extent possible while remaining lawful and valid.

         15. APPLICABLE LAW. This Agreement shall be construed in accordance
with and governed by the laws of the State of Delaware other than its laws
respecting choice of law.

         16. HEADINGS. Headings are provided herein for convenience only and are
not to serve as a basis for interpretation or construction of this Agreement.

                                      A-4
<PAGE>

                                    EXHIBIT B
                                       TO
                          STOCK OPTION AWARD AGREEMENT

A "Change Of Control" shall mean the first to occur of any of the following:

(1)      An acquisition by any Person of beneficial ownership (within the
         meaning of Rule 13d-3 promulgated under the Securities Exchange Act of
         1934, as amended (the "Exchange Act") of 35% or more of either (A) the
         then outstanding shares of common stock of the Company (the
         "Outstanding Company Common Stock") or (B) the combined voting power of
         the then outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company Voting
         Securities"); excluding, however, the following: (i) any acquisition by
         the Company; (ii) any acquisition by any employee benefit plan (or
         related trust) sponsored or maintained by the Company or any entity
         controlled by the Company; or (iii) any acquisition pursuant to a
         transaction which complies with clauses (A), (B) and (C) of subsection
         (3) of this definition; or

(2)      A change in the composition of the Company's Board of Directors (the
         "Board") such that the individuals who, as of the first day of any
         two-year period (the "Determination Date"), constitute the Board (such
         Board shall be hereinafter referred to as the "Incumbent Board") cease
         for any reason to constitute at least a majority of the Board as of any
         date prior to the second anniversary of the Determination Date;
         provided, however, for purposes of this definition, that any individual
         who becomes a member of the Board subsequent to the effective date
         hereof, whose election, or nomination for election by the Company's
         stockholders, was approved by a vote of at least a majority of those
         individuals who are members of the Board and who were also members of
         the Incumbent Board (or deemed to be such pursuant to this proviso)
         shall be considered as though such individual were a member of the
         Incumbent Board; but, provided further, that any such individual whose
         initial assumption of office occurs as a result of either an actual or
         threatened election contest (as such terms are used in Rule 14a-11 of
         Regulation 14A promulgated under the Exchange Act) or other accrual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the Board shall not be so considered as a member of
         the Incumbent Board; or

(3)      Consummation of a reorganization, merger or consolidation or sale or
         other disposition of all or substantially all of the assets of the
         Company or the acquisition of the assets or stock of another entity
         ("Business Combination"); excluding, however, such a Business
         Combination pursuant to which (A) all or substantially all of the
         individuals and entities who are the beneficial owners, respectively,
         of the Outstanding Company Common Stock and Outstanding Company Voting
         Securities immediately prior to such Business Combination (the "Company
         Holders") will each beneficially own, directly or indirectly, the
         outstanding shares of common stock and other voting securities entitled
         to vote generally in the election of directors, as the case may be, of
         the corporation resulting from such Business Combination (including,
         without limitation, a corporation which as a result of such transaction
         owns the Company or all or substantially all the Company's assets
         either directly or through one or more subsidiaries) in substantially
         the same proportions (relative to the other Company Holders) as their
         ownership, immediately

                                      B-1
<PAGE>

         prior to such Business Combination, of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be;
         (B) no Person (other than the Company or any employee benefit plan (or
         related trust) of the Company or the corporation resulting from such
         Business Combination) will beneficially own, directly or indirectly,
         35% or more of, respectively, the outstanding shares of common stock of
         the corporation resulting from such Business Combination or the
         combined voting power of the outstanding voting securities of such
         corporation entitled to vote generally in the election of directors
         except to the extent that such ownership existed prior to the Business
         Combination; and (C) individuals who were members of the Incumbent
         Board will constitute at least a majority of the members of the board
         of directors of the corporation resulting form such Business
         Combination; or

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

For purposes of this definition, "person" shall mean any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act).

                                      B-2<PAGE>
                                                                    EXHIBIT 10.4

                            JANUS CAPITAL GROUP INC.

                AMENDED AND RESTATED DIRECTORS' DEFERRED FEE PLAN

                        ORIGINALLY ADOPTED: JUNE 12, 2000

                       AMENDED AND RESTATED: MAY 12, 2004

                            SECTION 1. ESTABLISHMENT

1.1 ESTABLISHMENT. Janus Capital Group Inc. (hereinafter "Janus" or "Company")
hereby establishes, pursuant to resolution adopted by the Compensation Committee
of the Board of Directors of the Company, at a meeting held on May 12, 2004, an
amended and restated deferred fee plan for members of its Board of Directors,
which is known as the "Janus Capital Group Inc. Amended and Restated Directors
Deferred Fee Plan" (the "Plan").

                             SECTION 2. DEFINITIONS

2.1 DEFINITIONS. Whenever used in the Plan the following terms shall have the
meaning set forth below:

         a.       The term "Board" means the Board of Directors of the Company.

         b.       The term "Director" means a member of the Board of Directors
                  of the Company.

         c.       The term "Participant" means a Director or former Director who
                  has an account under the Plan.

         d.       The term "Fees" means collectively Monetary Fees and Stock
                  Fees.

         e.       The term "Monetary Fees" means direct monetary remuneration
                  from the Company (hereinafter "Monetary Fees") due to the
                  Directors for the discharge of their duties as directors,
                  exclusive of any reimbursement by the Company for expenses
                  incurred by the Director related to attendance at Board
                  meetings or attendance at a meeting of a Board committee.

         f.       The term "Stock Fees" means, Restricted Stock awarded under
                  the 1998 Long Term Incentive Stock Plan or any such successor
                  plan (the "LTIP"), such Restricted Stock being treated as
                  Stock Fees as of the date of award if the Restricted Stock is
                  fully vested and as of the vesting date in the case of awards
                  made subject to a vesting schedule.

<PAGE>

         g.       The term "Dividend Equivalent" means an additional credit to a
                  Participant's Deferred Stock Unit Account in respect of stock
                  units already allocated to the account, and equivalent to the
                  cash, stock or other property dividends on shares of Stock.
                  Dividend Equivalent credits shall be deemed reinvested in
                  additional shares of stock units (or fractions thereof) and
                  shall be added to the number of stock units already credited
                  to the Participant's Deferred Stock Unit Account.

2.2 GENDER AND NUMBER. Except when otherwise indicated by the context, any
masculine terminology used herein shall also include the feminine gender, and
the definition of any term herein in the singular shall also include the plural.

                    SECTION 3. ELIGIBILITY FOR PARTICIPATION

A Director shall be eligible for participation in the Plan and may elect to
defer Fees to be earned as a Director in accordance with the provisions of this
Plan for a period consisting of any calendar year or years during which he is a
member of the Board. In the case of a newly elected Director who was not a
Director on the preceding December 31st, he shall become eligible for
participation for a period consisting of the balance of the calendar year
following such election, and for succeeding calendar years.

Notwithstanding the foregoing and Section 4.1, and subject to the Board's
approval of the amended and restated Plan, any Director may elect to defer no
later than May 12, 2004, all or a portion of any Stock Fees to be earned as a
Director for the remaining portion of 2004 in accordance with Section 5.4 of the
Plan.

                        SECTION 4. ELECTION TO DEFER FEES

4.1 PROCEDURE FOR ELECTION TO DEFER FEES. On or before December 31st of any
calendar year, a Director may elect to become a Participant beginning the
following calendar year. Any person elected to fill a vacancy on the Board or a
newly created Directorship who was not a Director on the preceding December 31st
may elect prior to becoming a Director to become a Participant for the balance
of the calendar year during which he was elected to the Board. An election to
participate in the Plan shall be effected by the Director submitting a letter so
stating to the administrator of the Plan.

                                       2
<PAGE>

4.2 EFFECT OF ELECTION OR FAILURE TO ELECT TO PARTICIPATE. Failure to effect a
timely election in accordance with the foregoing provisions shall preclude a
Director's participation during the calendar year or portion of the calendar
year in question, but shall not preclude the Director from becoming eligible for
participation in any subsequent calendar year. An election to commence
participation, made in accordance with the foregoing provision, shall be
irrevocable for the immediately ensuing calendar year, or the balance of the
current year in the case of a newly elected Director. Such election shall
continue in effect with respect to each calendar year thereafter until modified
in accordance with subsection 4.4.

4.3 AMOUNT DEFERRED.

         a.       A Director may defer any amount up to 100% of the Monetary
                  Fees for the calendar year. If less than 100% of the Monetary
                  Fees are deferred, then the amount deferred will be prorated
                  over the Monetary Fees payment periods anticipated to be
                  served by the Director during the calendar year or until the
                  directorship is terminated.

         b.       A Director may defer up to 100% of Stock Fees for the calendar
                  year. If less than 100% of the Stock Fees are deferred and
                  such deferral election would result in the deferral of a
                  fractional share, the Director shall be treated as having
                  elected to defer the whole number of shares, less the
                  fraction, that results from the percentage election. In
                  addition, if less than 100% of the Stock Fees are deferred,
                  then the amount deferred will be prorated over the Stock Fees
                  payment periods anticipated to be served by the Director
                  during the calendar year or until the directorship is
                  terminated.

4.4 MODIFICATION OF ELECTION. On or before December 31st of each year a
Participant may elect, within the limits of subsection 4.3, to increase or
decrease the amount of his Fees to be deferred during the ensuing calendar
years, and this election shall include the right to terminate the deferral of
Fees earned in such ensuing calendar years.

                                       3
<PAGE>

                          SECTION 5. CREDITING OF FEES

5.1 PARTICIPANTS' ACCOUNTS. The Company shall establish a bookkeeping account
for each Participant to be credited as of the date the Monetary Fees and/or
Stock Fees are deferred. The Participant's account shall consist of one or two
bookkeeping subaccounts, based on the deferral election(s) made by the
Participant. Specifically, the company shall establish an "Investment Account"
on behalf of a Participant to reflect Monetary Fees deferred, and the Company
shall establish a "Deferred Stock Unit Account" on behalf of a Participant to
reflect deferred Stock Fees.

5.2 EARNINGS ON ACCOUNTS RELATED TO MONETARY FEES. Earnings shall accrue on
deferred Monetary Fees from the date the Monetary Fees are credited to the
Participant's Investment Account, and on the earnings on deferred Monetary Fees
from the date the earnings are credited to the Investment Account. A Participant
shall have the right to request in writing directed to the plan administrator
that the rate of earnings shall be determined by reference to the gains and
losses on the following hypothetical investments as if an Investment Amount
equal to the Participant's account had been invested as follows:

    Percent of the Monetary Fees deferred in the Janus Money Market Fund, and
  Percent of the Monetary Fees deferred in the Janus Flexible Income Fund, and
      Percent of the Monetary Fees deferred in the Janus Balance Fund, and
            Percent of the Monetary Fees deferred in the Janus Global
                             Opportunities Fund, and
   Percent of the Monetary Fees deferred in the Janus Mid Cap Value Fund, and
          Percent of the Monetary Fees deferred in the Janus Fund, and
      Percent of the Monetary Fees deferred in the Janus Overseas Fund, and
    Percent of the Monetary Fees deferred in the Janus Small Cap Value Fund.*

                   [*Elections into the Janus Small Cap Value
                      Fund are only available for existing
                                  Participants]

PROVIDED, HOWEVER; the plan administrator shall not be obligated to follow such
Participant's request, and shall be able to decide to continue to determine
earnings by reference to an investment in the Janus Money Market Fund, if the
plan administrator in its sole discretion reasonably determines that the
Participant's request is contrary to the Plan, applicable securities laws, or
the terms governing an investment in one or more of the mutual funds.

                                       4
<PAGE>

5.3 SPECIAL ONE TIME ELECTION. Provided the reallocation election is submitted
to the Company on or before May 12, 2004, an existing Participant shall be
permitted to change the investment measure for his or her existing Investment
Account by reallocating the amounts credited to the account among the
hypothetical investments listed in Section 5.2.

5.4 RESTRICTED STOCK UNITS RELATED TO STOCK FEES. Stock Fees deferred by a
Participant shall be converted to stock units representing the same number of
shares of the Company's common stock, $.01 par value ("Stock"), and shall be
credited to the Participant's Deferred Stock Unit Account. Thereafter the value
of stock units credited to the Deferred Stock Unit Account shall increase or
decrease to reflect allocable returns and losses as a bookkeeping entry to the
same extent as Stock. The Participant also shall be credited with Dividend
Equivalents on the stock units allocated to his or her Deferred Stock Unit
Account to the extent of dividends issued on Stock, provided the record date of
such dividend is on or after the date as of which stock units have been credited
to the Participant. Dividend Equivalent credits shall themselves be converted to
stock units (or a fraction thereof) and shall be credited accordingly to the
Participant's Deferred Stock Unit Account.

        SECTION 6. DISTRIBUTION UPON CESSATION AS DIRECTOR OF THE COMPANY

6.1 DISTRIBUTIONS.

         A. MONETARY FEES DISTRIBUTION. Whenever a Participant ceases to be a
Director of the Company, the plan administrator shall exercise its sole
discretion in electing one of the following methods of distributing the value of
the Participant's Investment Account in cash:

                  1. INSTALLMENT METHOD. The value of the Participant's
         Investment Account as of the end of the calendar year in which a
         Participant ceases to be a Director shall be distributed to the
         Participant in annual installments over a ten-year period beginning
         with the first day of the year immediately following the year in which
         the Participant ceases to be a Director. The interest credited to the
         Participant's Investment Account pursuant to subsection 5.2 shall be
         included in the calculation of the value of the Participant's account
         for distribution purposes. The

                                       5
<PAGE>

         value of the Participant's Investment Account shall be divided into ten
         equal amounts, each such amount being a principal installment. The
         principal installments shall accrue earnings in the same manner as an
         account pursuant to subsection 5.2. The Company shall distribute to the
         Participant, annually, one principal installment, and all earnings
         accrued on such principal installment, such distributions to continue
         until all principal installments have been distributed. Upon completion
         of the distributions provided for above, the Participant's account
         shall be closed.

                  2. SINGLE PAYMENT METHOD. The value of the Participant's
         Investment Account shall be distributed to the Participant in a lump
         sum within one year after the date upon which the Participant ceases to
         be a Director. The earnings on the Participant's account pursuant to
         subsection 5.2 shall be included in the calculation of the value of the
         Participant's account for distribution purposes. Upon delivery of the
         lump sum payment provided for above, the Participant's Investment
         Account shall be closed.

         B. STOCK FEES DISTRIBUTION. The value of the Participant's Deferred
Stock Unit Account shall be distributed to the Participant in a lump sum in
Stock within one year after the date upon which the Participate ceases to be a
Director. Notwithstanding the preceding, any fractional stock unit credited to
the Participant's Deferred Stock Unit Account shall be distributed as cash. Upon
delivery of the lump sum payment consisting of Stock and cash in lieu of
fractional stock units provided for above, the Participant's Deferred Stock Unit
Account shall be closed.

            SECTION 7. DISTRIBUTION UPON EXTRAORDINARY CIRCUMSTANCES

7.1 DEATH OF DIRECTOR OR FORMER DIRECTOR. Each Participant may designate one or
more beneficiaries on a form provided by the plan administrator and delivered to
the plan administrator before his death. Each Participant may change his
beneficiary designation thereafter without the consent of any prior beneficiary
by a similar written designation delivered to the plan administrator before the
Participant's death. If no such beneficiary shall have been designated or if no
designated beneficiary shall survive the Participant's death, then any part or
all of the balance of the Participant's account may be paid to the Participant's
estate. Any remaining installment payments

                                       6
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due a Participant at the time of his death may be paid at such time or times as
directed by the Board in its sole discretion to the Participant's beneficiary or
beneficiaries, if the Participant has designated one or more beneficiaries on
the form described in this Section 7.1, or, if no beneficiary has been
designated, or if no designated beneficiary shall survive the Participant, to
the Participant's estate.

7.2 FINANCIAL HARDSHIP OF A PARTICIPANT CAUSED BY A MEDICAL EMERGENCY OR
DISABILITY. Upon the determination by the Board that a Participant, or a member
of the Participant's immediate family, has suffered a medical emergency or
disability which has resulted in a financial hardship for the Participant, then
the Board may, in its sole discretion, direct that some or all of the
Participant's account be paid to the Participant; PROVIDED, that the amount paid
to the Participant shall not exceed the amount determined by the Board to be
necessary to relieve the financial hardship caused by the medical emergency or
disability. The Board may require the Participant to provide any expert medical
or financial information or opinions that the Board deems necessary to arrive at
a determination.

7.3 LOSS OF PRINCIPAL RESIDENCE OF A PARTICIPANT. Upon the determination by the
Board that a Participant's principal residence, that being the personal
residence at which he spends a majority of his time, has been damaged or
destroyed by accident or natural causes, then the Board may, in its sole
discretion, direct that some or all of the Participant's account be paid to the
Participant; PROVIDED, that the amount paid to the Participant shall not exceed
the amount determined by the Board to be necessary to relieve the financial
hardship caused by the loss of or damage to the principal residence. The Board
may require the Participant to provide any expert opinion or financial
information that the Board deems necessary to arrive at a determination.

7.4 FINANCIAL HARDSHIP OF A PARTICIPANT CAUSED BY OTHER UNANTICIPATED EVENTS.
Upon the determination by the Board that a Participant has suffered or will
suffer a severe financial hardship because of unanticipated circumstances caused
by an event beyond the reasonable control of such Participant, the Board may, in
its sole discretion, direct that some or all of the Participant's account be
paid to the Participant; PROVIDED, that the amount paid to the Participant shall
not exceed the amount determined by the Board to be necessary to relieve the
financial hardship. The Board may require the Participant to provide any expert
opinion or financial information that the Board deems necessary to arrive at an
opinion.

                                       7
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7.5 SPECIAL PROVISIONS. Payments made pursuant to Sections 7.2 through 7.4
during a Section 6.1(a)(1) ten-year distribution shall be deemed to have been
made from the last principal installment or installments to be made and the
earnings credited to such installment or installments.

         For purposes of Sections 6.1, 7.2, 7.3 and 7.4, the Board shall not
include the Participant if the Participant is a Director.

               SECTION 8. TRANSFERS FROM RETIREMENT PLAN ACCOUNTS

8.1 TRANSFERRED AMOUNTS. On July 13, 2000, this Plan shall accept a transfer of
accrued benefits from the retirement plan accounts of the Kansas City Southern
Industries, Inc. Directors Deferred Fee Plan (the "KCSI Deferred Fee Plan")
relating to Directors who are leaving their respective directorships at KCSI or
who are retired as a KCSI Director and who become Directors of Stilwell and
continue as Directors after such date. For each Participant with a retirement
plan account balance in the KCSI Deferred Fee Plan to be transferred to this
Plan, the Company shall establish a bookkeeping account ("Stilwell retirement
plan account") separate from the accounts established pursuant to Section 5.1
above. The amount in each Participant's Stilwell retirement plan account shall
earn a return determined by reference to the gains and losses on a hypothetical
investment as if an amount equal to the Participant's Stilwell retirement plan
account had been invested in Company common stock, with a starting value for
such common stock equal to the mean between the high and low for such common
stock as reported on the New York Stock Exchange for the date of transfer
referenced above. When the Participant ceases to be a Director due to retirement
or for any other reason, the balance in the Participant's retirement plan
account as of the Director's last day of service as a Director shall be paid to
the Director within 30 days. The Director, or his designated beneficiary or
estate, as the case may be, shall have the election to receive the Stilwell
retirement plan account balance in either Company common stock, valued at the
mean between the high and low prices reported by the New York Stock Exchange for
such stock on the Participant's last day as a Director, or in cash.

8.2 OTHER PROVISIONS. The provisions of this Plan other than Sections 3, 4, 5
and 6 shall be applicable to amounts transferred to this Plan in accordance with
Section 8.1.

                                       8
<PAGE>

  SECTION 9. DISSOLUTION. LIQUIDATION, MERGER, CONSOLIDATION AND SALE OF ASSETS

9.1 DISSOLUTION OR LIQUIDATION OF COMPANY. Notwithstanding anything herein to
the contrary, upon the dissolution or liquidation of the Company, each
Participant who is a Director of the Company on the day preceding the date of
the dissolution or liquidation shall be deemed to have ceased to be a Director
of the Company on the date preceding such dissolution or liquidation. The
accounts of all Participants shall be valued and distributed in lump sums at the
time of such liquidation.

9.2 MERGER, CONSOLIDATION, AND SALE OF ASSETS. Notwithstanding anything herein
to the contrary, in the event that the Company consolidates with, merges into,
or transfers all or substantially all of its assets to another corporation
(hereinafter referred to as "Successor Corporation"), such Successor Corporation
shall assume all obligations under this Plan. Upon such assumption, the Board of
Directors of the Successor Corporation shall be substituted for the Board in
this Plan.

                       SECTION 10. RIGHTS OF PARTICIPANTS

10.1 RIGHTS OF PARTICIPANTS. No Participant nor any Participant's estate or
heirs shall have any interest in any fund or in any specific asset or assets of
the Company by reason of any payments made under the Plan, or by reason of any
account maintained for the Participant under the Plan. The Company shall have
merely a contractual obligation to make payments when due hereunder and the
Company shall not hold any funds in reserve or trust to secure payments
hereunder.

10.2 ALIENATION OF BENEFITS. No Participant nor any Participant's estate or
heirs may assign, pledge or in any way encumber his interest under the Plan, or
any part thereof. Neither the Company nor the Plan shall in any manner be liable
for or subject to the debts or liabilities of any person entitled to payment
under the Plan.

10.3 NO RIGHT TO SERVICE. Nothing contained in this Plan shall be deemed to give
any Director the right to be retained in the service of the Company or to
interfere with the right of the Company to remove or seek the resignation of any
Director at any time without regard to the effect that such removal or
resignation may have upon the Director under the Plan.

                                       9
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10.4 UNFUNDED PLAN. The Plan shall be an unfunded, unsecured obligation of the
Company. The Company shall not be required to segregate any assets to provide
payment of accounts, and the Plan shall not be construed as providing for such
segregation. Any liability of the Company to any Participant or beneficiary with
respect to the payment of accounts shall be based solely upon any contractual
obligations created by the Plan. Any such obligation shall not be deemed to be
secured by any pledge or other encumbrance or any Company property.

                    SECTION 11. ADMINISTRATION AND AMENDMENT

11.1 ADMINISTRATION. The Board may designate an administrator of the Plan.
Absent designation of an administrator by the Board, the Secretary of the
Company shall administer the Plan. The Board may, from time to time, establish
rules for the administration of the Plan that are not inconsistent with the
provisions of the Plan.

11.2 COORDINATION WITH LTIP. The provisions of this Plan applicable to Stock
Fees and Deferred Stock Unit Accounts document the rules and procedures of the
Compensation Committee of the Board relating to the deferral of Director
Restricted Stock awards, as required by Article 12 of the LTIP.

11.3 AMENDMENT. Subject to applicable laws and regulations, this Plan may be
amended by a favorable vote of two-thirds of the members of the Board who are
not Participants in the Plan or, in the event all Directors are Participants, by
a favorable vote of a majority of the stockholders present or represented and
voting at an annual or special meeting of the stockholders.

         IN WITNESS WHEREOF, this Amended and Restated Plan has been duly
executed as of this 12th day of May, 2004.

                                    JANUS CAPITAL GROUP INC.

                                    By: /s/ Steven L. Scheid
                                        ----------------------------------------
                                        Steven L. Scheid
                                        Chairman of the Board and CEO

                                       10

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