Document:

Exhibit
10.2

 

CHANGE IN CONTROL AGREEMENT

 

THIS AGREEMENT, dated February 1, 2010, is made
by and between Janus Capital Group Inc. (the “Company”) and Richard M. Weil
(the “Executive”).

 

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

 

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

 

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

 

WHEREAS, the Company deems it advisable to amend the
Agreement to comply with Section 409A of the Internal Revenue Code;

 

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

 

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

 

2.         Term
of Agreement.  The Term of this
Agreement shall commence on the date hereof and shall continue in effect
through December 31, 2011; provided, however, that
commencing on January 1, 2012 and each January 1 thereafter, the Term
shall automatically be extended for one additional year unless, not later than September 30
of the preceding year, the Company or the Executive shall have given notice not
to extend the Term; and further  provided, however, that if
a Change in Control shall have occurred during the Term, the Term shall expire
no earlier than twenty-four (24) months beyond the month in which such Change
in Control occurred.  Notwithstanding
anything herein to the contrary, the Term of the Agreement shall immediately
terminate if, prior to the Change in Control, the Company (or such other
Affiliate of the Parent that then employs the Executive) ceases to be an
Affiliate of the Parent.

 

3.         Company’s
Covenants Summarized.  In order to
induce the Executive to remain in the employ of the Company and in
consideration of the Executive’s covenants set forth in Section 4 hereof,
the Company agrees, under the conditions described herein, to pay the Executive
the Severance Payments and the other payments and benefits described
herein.  No Severance Payments shall be
payable under

 

 

this Agreement unless there shall have been (or, under the terms of the
second sentence of Section 6.1 hereof, there shall be deemed to have been)
a termination of the Executive’s employment with the Company following a Change
in Control and during the Term.  This
Agreement shall not be construed as creating an express or implied contract of
employment and, except as otherwise agreed in writing between the Executive and
the Company, the Executive shall not have any right to be retained in the
employ of the Company.

 

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

 

5.         Compensation
Other Than Severance Payments.

 

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

 

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

 

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

 

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6.         Severance
Payments.

 

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

 

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

 

(B)              In the event the Executive has
been employed by the Company for less than one full calendar year, and for
purposes of calculating the cash compensation payment under 6.1(A)(1), the base
salary compensation paid to Executive in the calendar year immediately prior to
the Date of Termination will be annualized.

 

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(C)              For the twenty-four (24) month
period immediately following the Date of Termination, the Company shall arrange
to provide the Executive and his dependents medical, dental, and vision
insurance benefits substantially similar to those provided to the Executive and
his dependents immediately prior to the Date of Termination or, if more
favorable to the Executive, those provided to the Executive and his dependents
immediately prior to the Change in Control, at no greater after tax cost to the
Executive than the after tax cost to the Executive immediately prior to such
date.  Benefits otherwise receivable by
the Executive pursuant to this Section 6.1(C) shall be reduced to the
extent benefits of the same type are received by or made available to the
Executive during the twenty-four (24) month period following the Executive’s
termination of employment (and any such benefits received by or made available
to the Executive shall be reported to the Company by the Executive); provided,
however, that the Company shall reimburse the Executive for the excess,
if any, of the after tax cost of such benefits to the Executive over such cost
immediately prior to the Date of Termination or, if more favorable to the
Executive, the Change in Control.  The coverage provided pursuant to this Section 6.1(C) shall
run concurrently with and shall be offset against any continuation coverage
under Part 6 of Title I of Employee Retirement Income Security Act of
1974, as amended.  Amounts reimbursed to
the Executive in one taxable year may not affect the amounts eligible for
reimbursement in any other taxable year. 
If the Severance Payments shall be
decreased pursuant to Section 6.2 hereof, and the Section 6.1(C) benefits
which remain payable after the application of Section 6.2 hereof are
thereafter reduced pursuant to the immediately preceding sentence, the Company
shall, no later than five (5) business days following such reduction, pay
to the Executive the least of (a) the amount of the decrease made in the
Severance Payments pursuant to Section 6.2 hereof, (b) the amount of
the subsequent reduction in these Section 6.1(C) benefits, or (c) the
maximum amount which can be paid to the Executive without being, or causing any
other payment to be, nondeductible by reason of section 280G of the Code.

 

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

 

6.2                               (A)          Notwithstanding any other provisions
of this Agreement, in the event that any payment or benefit received or to be
received by the Executive (including any payment or benefit received in
connection with a Change in Control or the termination of the Executive’s employment,
whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement) (all such payments and benefits, including the Severance
Payments, being hereinafter referred to as the “Total Payments”) would be
subject (in whole or part), to the Excise Tax, then, after taking into account
any reduction in the Total Payments provided by reason of section 280G of the
Code in such other plan, arrangement or agreement, the cash Severance Payments
shall first be reduced, and the noncash Severance Payments shall thereafter be
reduced, to the extent necessary so that no portion of the Total Payments is
subject to the Excise Tax but only if

 

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(A) the net amount of
such Total Payments, as so reduced (and after subtracting the net amount of
federal, state and local income taxes on such reduced Total Payments and after
taking into account the phase out of itemized deductions and personal
exemptions attributable to such reduced Total Payments) is greater than or
equal to (B) the net amount of such Total Payments without such reduction
(but after subtracting the net amount of federal, state and local income taxes
on such Total Payments and the amount of Excise Tax to which the Executive
would be subject in respect of such unreduced Total Payments and after taking
into account the phase out of itemized deductions and personal exemptions
attributable to such unreduced Total Payments); provided, however,
that the Executive may elect to have the noncash Severance Payments reduced (or
eliminated) prior to any reduction of the cash Severance Payments.

 

(B)          For
purposes of determining whether and the extent to which the Total Payments will
be subject to the Excise Tax, (i) no portion of the Total Payments the receipt
or enjoyment of which the Executive shall have waived at such time and in such
manner as not to constitute a “payment” within the meaning of section 280G(b) of
the Code shall be taken into account, (ii) no portion of the Total
Payments shall be taken into account which, in the opinion of tax counsel (“Tax
Counsel”) reasonably acceptable to the Executive and selected by the accounting
firm (the “Auditor”) which was, immediately prior to the Change in Control, the
Company’s independent auditor, does not constitute a “parachute payment” within
the meaning of section 280G(b)(2) of the Code (including by reason of
section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no
portion of such Total Payments shall be taken into account which, in the
opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered, within the meaning of section 280G(b)(4)(B) of the
Code, in excess of the Base Amount allocable to such reasonable compensation,
and (iii) the value of any non-cash benefit or any deferred payment or
benefit included in the Total Payments shall be determined by the Auditor in
accordance with the principles of sections 280G(d)(3) and (4) of the
Code.

 

(C)          At the time
that payments are made under this Agreement, the Company shall provide the
Executive with a written statement setting forth the manner in which such
payments were calculated and the basis for such calculations including, without
limitation, any opinions or other advice the Company has received from Tax Counsel,
the Auditor or other advisors or consultants (and any such opinions or advice
which are in writing shall be attached to the statement).  If the Executive objects to the Company’s
calculations, the Company shall pay to the Executive such portion of the
Severance Payments (up to 100% thereof) as the Executive determines is
necessary to result in the proper application of subsection A of this Section 6.2.

 

6.3          Subject to
the provisions of Section 6.5, the payments provided in subsection (A) of
Section 6.1 hereof shall be made no later than ten (10) business days
following the Date of Termination.

 

6.4          In the
event the Executive incurs legal fees and expenses disputing in good faith any
issue hereunder relating to the termination of the Executive’s employment,
seeking in good faith to obtain or enforce any benefit or right provided by
this Agreement or in connection with any tax audit or proceeding to the extent

 

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attributable to the application of section 4999 of the
Code to any payment or benefit provided hereunder, the Company shall pay to the
Executive all legal fees and expenses. 
Such payments shall be made within thirty (30) days after delivery of
the Executive’s written requests for payment accompanied with such evidence of
fees and expenses incurred as the Company reasonably may require but in no
event later than the end of the calendar year following the calendar year in
which the expense was incurred. 
Notwithstanding the above, in the event that the Executive does not
prevail on such good faith claim, the Executive shall return to the Company any
amounts reimbursed pursuant to this Section 6.4 within thirty (30) days
following the final resolution of such dispute. 
In no event shall the amounts reimbursed pursuant to this Section 6.4
in one calendar year affect the amounts eligible for reimbursement in any other
calendar year and Executive’s right to have the Company pay such legal fees and
expenses may not be liquidated or exchanged for any other benefit.

 

6.5          Notwithstanding
anything contained herein to the contrary, the Executive shall not be
considered to have terminated employment with the Company for purposes of this
Agreement, unless the Executive would be considered to have incurred a “separation
from service” from the Company within the meaning of Section 409A.  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, amounts that would otherwise be payable and benefits
that would otherwise be provided pursuant to this Agreement during the
six-month period immediately following the Executive’s termination of
employment shall instead be paid within five (5) business days after the
date that is six months following the Executive’s termination of employment (or
upon the Executive’s death, if earlier).

 

7.         Termination
Procedures.

 

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

 

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7.2          Sunset
on Right to Terminate for Good Reason. 
If circumstances arise giving the 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 the 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, in
which case the provisions of this paragraph 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.

 

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

 

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

 

9.         Successors;
Binding Agreement.

 

9.1          In
addition to any obligations imposed by law upon any successor to the Company,
and subject to the last sentence of Section 2, the Company will require
any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if
no such succession had taken place.

 

9.2          This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
If the Executive

 

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

 

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

 

To the Company:

 

Janus Capital Group Inc.

151 Detroit Street

Denver, Colorado 80206

Attn.: 
General Counsel

 

11.      Miscellaneous.  No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and the Company, provided, however, that
the Company may amend the Agreement in a manner reasonably intended to avoid
the acceleration of tax and the possible imposition of penalties under Section 409A
of the Code.  No waiver by either party
hereto at any time of any breach by the other party hereto of, or of any lack
of compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.  This Agreement supersedes any other
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof which have been made by either party; provided,
however, that this Agreement shall supersede any agreement setting forth
the terms and conditions of the Executive’s employment with the Company only in
the event that the Executive’s employment with the Company is terminated on or
following a Change in Control, by the Company other than for Cause or by the
Executive for Good Reason or prior to a Change in Control pursuant to the
second sentence of Section 6.1 of this Agreement.   The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
Delaware.  All references to sections of
the Exchange Act or the Code shall be deemed also to refer to any successor
provisions to such sections.  Any
payments provided for hereunder shall be paid net of any applicable withholding
required under federal, state or local law and any additional withholding to
which the Executive has agreed.  The
obligations of the Company and the Executive under this Agreement which by
their nature may require either partial or total performance after the
expiration of the Term (including, without limitation, those under Section 6
hereof) shall survive such expiration.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(E)           “Cause”
for termination by the Company of the Executive’s employment shall mean (i) the
willful and continued failure by the Executive to substantially perform the
Executive’s duties with the Company (other than any such failure resulting from
the Executive’s incapacity due to physical or mental illness or any such actual
or anticipated failure after the issuance of a Notice of Termination for Good
Reason by the Executive pursuant to Section 7.1 hereof) that has not been
cured within 30 days after a written demand for substantial performance is
delivered to the Executive by the Board, which demand specifically identifies
the manner in which the Board believes that the Executive has not substantially
performed the Executive’s duties; (ii) the willful engaging by the
Executive in conduct which is demonstrably and materially injurious to the
Company, monetarily or otherwise; or (iii) a
willful or reckless violation by the Executive of a material legal or
regulatory requirement that is materially and demonstrably

 

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injurious to the Company.  For purposes of this definition, no act, or
failure to act, on the Executive’s part shall be deemed “willful” unless done,
or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s act, or failure to act, was in the best
interest of the Company.  Any act, or failure to act, based upon
express written authority by the Board with respect to such act or omission or
based upon the advice of counsel for the Company shall be conclusively presumed
to be done, or omitted to be done, by the Executive in good faith and in the
best interests of the Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(I)            “Date of
Termination” shall have the meaning set forth in Section 7.3 hereof.

 

(J)            “Disability”
shall be deemed the reason for the termination by the Company of the Executive’s
employment, if, as a result of the Executive’s incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time
performance of the Executive’s duties with the Company for a 

 

11

 

period of six (6) consecutive months, the Company shall
have given the Executive a Notice of Termination for Disability, and, within
thirty (30) days after such Notice of Termination is given, the Executive shall
not have returned to the full-time performance of the Executive’s duties.

 

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

 

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

 

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

 

(N)          “Good
Reason” for termination by the Executive of the Executive’s employment shall
mean the occurrence (without the Executive’s express written consent which
specifically references this Agreement) after any Change in Control, or prior
to a Change in Control under the circumstances described in clauses (ii) and
(iii) of the second sentence of Section 6.1 hereof (treating all
references in paragraphs (1) through (4) below to a “Change in Control”
as references to a “Potential Change in Control”), of any one of the following
acts by the Company, or failures by the Company to act, unless, in the case of
any act or failure to act described in paragraph (1), or (4) below, such
act or failure to act is corrected pursuant to the notice and cure provisions
of Section 7.2 (“Sunset on Right to Terminate for Good Reason”) prior to
the Date of Termination specified in the Notice of Termination given in respect
thereof:

 

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

 

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

 

(3)           the
relocation of the Executive’s principal place of employment to a location more
than 40 miles from the Executive’s principal place of employment immediately
prior to the Change in Control or the Company’s requiring the Executive to be
based anywhere other than 

 

12

 

such principal place of employment (or permitted relocation thereof),
provided that such relocation results in a material negative change to the
Executive’s employment, except for required travel on the Company’s business to
an extent substantially consistent with the Executive’s present business travel
obligations;

 

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

 

(5)           failure
of the Company to obtain assumption and agreement by a successor of the Company
to perform this Agreement as provided in Section 9.1.

 

In
no event will the Executive have Good Reason to terminate employment for Good
Reason unless such act or failure to act results in a material negative change
to Executive’s employment.  Subject to
compliance with the requirements of Section 7.2 hereof, the Executive’s
continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder.

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

(S)           “Retirement”
shall be deemed the reason for the termination by the Executive of the Executive’s
employment if such employment is terminated in accordance with the Company’s
retirement policy, including early retirement, generally applicable to its
salaried employees.

 

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

 

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

 

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

 

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

 

[SIGNATURE
PAGE FOLLOWS]

 

14

 

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

 

 

	
   

  	
  JANUS
  CAPITAL GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven L. Scheid

  
	
   

  	
   

  	
  Steven
  L. Scheid

  
	
   

  	
   

  	
  Chairman
  of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Richard M. Weil

  
	
   

  	
  Richard
  M. Weil

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
				

 

15Exhibit 10.1

 

Summer Infant, Inc.

2010 Employee

Performance Incentive Plan

 

This
plan document outlines the 2010 Summer Infant, Inc. (the “Company”) Employee Performance Incentive Plan (the “Plan”).  Each
participant will also receive a personal confirmation letter.  The Compensation Committee of the Board of
Directors (the “Compensation Committee”) has sole
discretion for the Plan except with respect to the Chief Executive Officer (the
“CEO”) as set forth is his Employment
Agreement dated February 1, 2010.

 

PLAN
OBJECTIVES

 

·                  Align the compensation of executive and
management employees to key financial drivers.

·                  Provide variable pay opportunities and
targeted total cash compensation that is competitive within our labor markets.

 

EFFECTIVE
DATE

 

This
Employee Performance Incentive Plan is for the fiscal year ending December 31,
2010.  However, this Plan may be changed
at any time at the sole discretion of the Compensation Committee or the Board
of Directors.  Notwithstanding, it is the
intent of the Company and the Board of Directors to maintain an annual
performance incentive plan.

 

PARTICIPATION
ELIGIBILITY

 

All
executive officers and management employees above salary grade 27 who are
employed continuously from January 1, 2010 through December 31, 2010
are qualified to participate in the Plan. 
At the discretion of the Chief Executive Officer, any executive officer
or management employee who is employed before July 1, 2010 may participate
in the Plan on a pro-rata basis determined by his or her full months of service
during fiscal 2010.  Any additions or
changes the executive officer composition that result in changes to the Plan
distribution will be recommended by the Chief Executive Officer and approved by
the Compensation Committee.  Participants
of the 2010 Plan and award targets are set forth in Exhibits I (Executive
Officers) and Exhibit II (management employees).

 

COMPANY
FINANCIAL PERFORMANCE

 

For
fiscal 2010, the determination of the year-end accrual for the Plan expense
will be based on the achievement of the EBITDA target before the accrual
for the Plan expense, as set forth in the Company’s Annual Budget for fiscal
2010 as approved by the Board of Directors (the “Target”).  For the purposes of this Plan the term “EBITDA”
shall represent net income (loss) before income taxes, interest expense, and
depreciation and amortization and non-cash stock option expense.

 

Following
the completion of the Company’s audited financial statements for fiscal 2010,
the Chief Financial Officer will provide the Compensation Committee with a
computation of the Company’s EBITDA and any other financial measurements as
deemed necessary by the Compensation Committee.

 

Compensation
Committee may in its sole and absolute discretion remove from the calculation
of EBITDA any revenue or expense items that it determines to be non-recurring
in nature.

 

The
scale below will be used to calculate the accrual for the 2010 Plan.

 

 

Financial Performance Bonus Payment Scale

 

	
  Company
  Performance Level

  	
   

  	
  EBITDA

  Performance vs. Target

  	
   

  	
  Bonus Achievement

  Percentage of Bonus

  Target

  	
   

  
	
  Below Threshold

  	
   

  	
  0%-79%

  	
   

  	
  0

  	
  %

  
	
  Threshold

  	
   

  	
  80%-89%

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
  90%-99%

  	
   

  	
  75

  	
  %

  
	
  Target

  	
   

  	
  100%-109%

  	
   

  	
  100

  	
  %

  
	
  Acceleration

  	
   

  	
  110%-119%

  	
   

  	
  125

  	
  %

  
	
   

  	
   

  	
  120%-129%

  	
   

  	
  150

  	
  %

  
	
   

  	
   

  	
  130%-139%

  	
   

  	
  160

  	
  %

  
	
   

  	
   

  	
  140%-149%

  	
   

  	
  170

  	
  %

  
	
   

  	
   

  	
  150%-174%

  	
   

  	
  180

  	
  %

  
	
   

  	
   

  	
  175%-199%

  	
   

  	
  190

  	
  %

  
	
  Maximum

  	
   

  	
  200%

  	
   

  	
  200

  	
  %

  

 

·                  Rounding.  Performance results will be rounded up to the
nearest whole percentage point.  For
example, if calculated performance achievement percentage is 89.1%, it will be
rounded up to 90%.

 

INDIVIDUAL
PERFORMANCE AWARDS

 

Allocation
and payment of the 2010 accrual to individual participants of the Plan will be
based on the achievement of individual goals and objectives established by the
Company for each management employee. 
The Chief Executive Offices will submit goals and objectives for each
executive officer participating in the Plan to the Compensation Committee for
their approval.  The goals and objectives
of the Chief Executive Officer for 2010 will be established mutually by the
Compensation Committee.

 

BONUS
CALCULATION EXAMPLE

 

An
example is illustrated below for a Plan participant who has 50% bonus target,
and an annualized base salary of $200,000.

 

	
  Performance

  Achievement vs.

  Target

  	
   

  	
  Bonus Achievement

  Percentage

  “A”

  	
   

  	
  Base Salary

  “B”

  	
   

  	
  Bonus

  Target

  “C”

  	
   

  	
  Calculated

  Annual

  Bonus

  AxBxC

  	
   

  
	
  107

  	
  %

  	
  100

  	
  %

  	
  $

  	
  200,000

  	
   

  	
  50

  	
  %

  	
  $

  	
  100,000

  	
   

  
												

 

 

EXHIBIT I

 

Executive Officers

 

	
   

  	
   

  	
  Bonus Target

  	
   

  
	
  Executive
  Officers

  	
   

  	
  (Percentage of Annual Base Salary)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Jason
  Macari, Chief Executive Officer

  	
   

  	
  100

  	
  %

  

 

[Additional Executive Officers and bonus targets will be determined at
a later date]

 

 

EXHIBIT II

 

Management Employees

 

	
   

  	
   

  	
  Bonus Target

  	
   

  
	
  Management
  Employees

  	
   

  	
  (Percentage of Annual Base Salary)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

[To be determined at a later date]

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