Document:

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT  

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

Recitals

1.             Executive has been employed by the
Company pursuant to an Employment Agreement effective as of April 28, 2004 (the
“Original Agreement”).

2.             Executive has been duly appointed
to serve, effective as of January 1, 2006, as the Company’s Chief Executive
Officer (“CEO”), while retaining his previous title and duties as Chief
Investment Officer.

3.             In connection with Executive’s
assumption of the position and duties of the Company’s CEO, Executive and the
Company wish to amend and restate the Original Agreement in its entirety.

Agreement

Executive
and the Company agree as follows.

1.             Effective Date.  The “Effective Date” shall mean September 25,
2006.  As of the Effective Date, the
Original Agreement shall be deemed superseded by this Agreement, and shall
thereafter be of no further force or effect; provided however, any existing
long term incentive award and deferred compensation agreements, including but
not limited to Long-Term Incentive Compensation award, Special Restricted Stock
Award, Non-Qualified Stock Option Award, Management Incentive Mutual Fund Share
Award, and the Fund Performance Incentive Award will remain in full force and
effect.  In all respects, the terms and
conditions of Executive’s employment with the Company prior to the Effective Date
shall be governed by the Original Agreement.

2.             Employment Period.  The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to commence and then remain in the
employ of the Company, on the terms and subject to the conditions of this
Agreement, for the period commencing on the Effective Date and ending on April
30, 2008 (the “Initial Period”). 
Following the Initial Period, this Agreement shall automatically renew
for one-year periods (“Renewal Period”), unless either party gives notice of
non-renewal at least 90 days prior to the end of the Initial Period or any
Renewal Period, as applicable.  For
purposes of this Agreement, the “Employment Period” shall include the Initial
Period and any subsequent Renewal Period.

 

 

3.             Terms of Employment.

(a)           Position and Duties.

(i)            During the Employment Period the
Executive shall serve as the Company’s Chief Executive Officer and Chief
Investment Officer, with duties, authorities and responsibilities commensurate
with such titles and offices. The Executive shall be a member of the Company’s
senior-most management body, which as of the Effective Date was the Company’s
Executive Committee (“EC”), and shall remain on the Company’s Board of
Directors (the “Board”) subject to the Company’s Bylaws and applicable
shareholder approval. At his discretion, but only with the concurrence of the
Board, the Executive may designate another to assume the responsibilities of
Chief Investment Officer.

(ii)           During the Employment Period, and
excluding any periods of disability and vacation and sick leave to which the
Executive is entitled, the Executive agrees to devote substantially all of his
attention and time during normal business hours to the business and affairs of
the Company and, to the extent necessary to discharge the Executive’s
responsibilities hereunder, to use the Executive’s reasonable best efforts to
perform such responsibilities.  During
the Employment Period, it shall not be a violation of this Agreement for the
Executive to: (A) serve on corporate, civic or charitable boards or committees;
(B) deliver lectures,
fulfill speaking engagements or teach at educational institutions; and (C)
manage personal investments; all so long as such activities do not
significantly interfere with the performance of the Executive’s
responsibilities as an employee of the Company in accordance with this
Agreement; and, in the case of Executive’s management of his personal
investments, so long as all such personal investment management activities
comply with the Company’s personal trading policies and, otherwise, with
applicable law.

(b)            Compensation.

(i)             Base Salary.  From January 1, 2006 to the end of his
Employment Period, the Executive shall receive an annual base salary (“Annual
Base Salary”) of no less than $800,000. 
The Annual Base Salary shall be reviewed by the Compensation Committee
(the “Committee”) of the Company’s Board of Directors (the “Board”) no less
frequently than annually and may be increased (but not decreased) at the
discretion of the Committee or the Board. 
If the Executive’s Annual Base Salary is increased, the increased amount
shall be the Annual Base Salary for the remainder of the Employment Period, and
shall be reviewed by the Committee no less frequently than annually and may be
increased (but not decreased) at the discretion of the Committee or the
Board.  The Annual Base Salary shall be
payable in installments less legally required withholdings, consistent with the
Company’s payroll procedures in effect from time to time, provided that such
installments shall be no less frequent than monthly.

(ii)             Annual Bonus.  In addition to the Annual Base Salary, the
Executive shall be eligible to earn, for each calendar year ending during the
Employment Period,  an annual bonus (an “Annual
Bonus”) on terms and conditions, including performance goals, as set forth in
the Total Variable Compensation Plan (the “Bonus Plan”) approved by the Company’s
Compensation Committee at periodic meetings of that Committee.  The Committee shall annually certify, to the extent
required by Section 162(m) of the Internal Revenue Code of 1986, 

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as
amended (the “Code”), whether the Executive has met the performance goals
necessary for the payment of an Annual Bonus and in the amount calculated under
the Bonus Plan.  Subject to Paragraph
3(b)(xv), below, as of December 31, 2006, the Executive shall have the
irrevocable right to receive his target Annual Bonus for his work in calendar
year 2006, Executive’s target Annual Bonus shall be no less than $4,000,000 and
his Annual Bonus shall be made in 2007 on the same payment schedule that
applies to other members of the EC (the “Peer Executives).  The Executive’s target for future calendar
years shall be reviewed and determined by the Committee no less frequently than
annually.

(iii)           Long-Term Incentive Compensation.  At the discretion of the Committee, the
Executive shall be entitled to participate in the Company’s long term incentive
(“LTI”) compensation arrangements on terms and conditions no less favorable
than the terms and conditions generally applicable to the Peer Executives, as
in effect from time to time.  LTI awards
may in the Company’s discretion be granted in the form of stock options,
restricted stock, stock units, Janus fund units, or any combination
thereof.  The Committee shall annually
certify, to the extent required by Section 162(m) of the Code, whether the
Executive has met the performance goals necessary for the payment of a LTI
award and in the amount determined by the Committee; provided however and
subject to Paragraph 3(b)(xv) below, as of December 31, 2006, the Executive
shall have the irrevocable right to receive his target LTI award for his work
in the calendar year 2006  and his LTI
award(s) shall be granted on a date in 2007, when such awards are customarily
made to other Peer Executives, and in such year Executive’s target LTI award
shall be valued at no less than $2,700,000. 
The Executive’s target for future calendar years shall be reviewed and
determined by the Committee no less frequently than annually.

(iv)           Special Restricted Stock Award.  Nothing herein shall affect in any way the
Special Restricted Stock Award granted to Executive under Paragraph 3(b)(iv) of
the Original Agreement, which award shall remain in full force and effect in
accordance with the terms of the documents pursuant to which that award was
granted.

(v)            Non-Qualified Stock Option Award.  Nothing herein shall affect in any way the
Non-Qualified Stock Option Award granted to Executive under Paragraph 3(b)(v)
of the Original Agreement, which award shall remain in full force and effect in
accordance with the terms of the documents pursuant to which that award was
granted.

(vi)           Management Incentive Mutual Fund Share Award. 
Nothing herein shall affect in any way the Management Incentive Mutual
Fund Share Award granted to Executive under Paragraph 3(b)(vi) of the Original
Agreement, which award shall remain in full force and effect in accordance with
the terms of the documents pursuant to which that award was granted.

(vii)          Fund Performance
Incentive.  The Executive shall be
eligible to receive a special one-time fund performance incentive award (a “Fund
Performance Award”) based on the average asset-weighted performance of all
branded funds, institutional separate accounts, sub-advised funds and
commingled pools managed or advised by the Company or its affiliates
(collectively, “Company Funds”) during the two and three-fourths year period
beginning April 1, 2004, and ending on December 31, 2006 (the “Performance
Measurement Period”), as well as the performance, during the Performance
Measurement Period, of the Janus Fund, Janus 

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Twenty
Fund and Janus Worldwide Fund (such three funds to be collectively referred to
as the “Flagship Funds”), as follows:

(A)          If during the Performance Measurement
Period the asset-weighted average performance of all Company Funds exceeds the
40th percentile as compared to peer-group funds,
measured by Lipper; and if the at the end of the Performance Measurement Period
the then-current performance of one, two or three of the Flagship Funds exceeds
the 40th percentile as compared to peer-group funds,
measured by Lipper; and if Executive remains actively employed by the Company
as of the end of the Performance Measurement Period, then the Company shall
grant the Executive a Fund Performance Award in the following amount: (x) if at
the end of the Performance Management Period one Flagship Fund’s then-current
performance meets or exceeds the 40th percentile, then the Fund Performance Award
shall be valued at $2 million; and (y) if at the end of the Performance
Management Period two Flagship Funds’ then-current performance meets or exceeds
the 40th percentile, then the Fund Performance Award
shall be valued at $4 million; and (z) if at the end of the Performance
Management Period three Flagship Funds’ then-current performance meets or
exceeds the 40th percentile, then the Fund Performance Award
shall be valued at $6 million.  Without
limiting the foregoing and for purposes of illustration only, if the
asset-weighted average performance of all Company Funds during the Performance
Measurement Period is in the 23rd percentile, the performance of the Janus Fund
at the end of the Performance Measurement Period is in the 21st percentile and
the performance of the remaining two Flagship Funds at the end of the
Performance Management Period is below the 40th percentile, then the Executive’s Fund
Performance Incentive would have a value of $2 million, whereas if the
asset-weighted average performance of all Company Funds during the Performance
Measurement Period is in the 31st percentile, but the performance, at the end
of the Performance Management Period, of each of the three Flagship Funds is
not at least in  the 40th percentile, then Executive would
be entitled to no Fund Performance Incentive. 
No Fund Performance Incentive shall be payable unless each and every
condition of this Paragraph is fully met. 
Without limiting the generality of the foregoing, no pro rata or partial
Fund Performance Award shall be payable under any circumstances.  For clarity, as used in this Agreement:  percentile references for the Company Funds
generally shall be computed on an asset-weighted basis across all Company
Funds; and shall refer to the top, not bottom percentile, so, for example,
performance in the 40th percentile refers to performance in the top 40
percent.

(B)          Any Fund Performance Award shall be
made in the form of shares in Janus-branded mutual fund(s), issued as
follows.  The Company shall issue a
payroll payment to Executive in the gross amount of the Fund Performance
Incentive earned by Executive, withhold required taxes, and deposit the
after-tax remainder in such Janus-branded mutual fund(s) as Executive directs
(subject to applicable law, the terms of the applicable prospectus(es) and Company
policies governing personal investment activities).  The Fund Performance Award shall be fully
vested as of the date of the award but shall be subject to a two-year holding
period (which two year holding period shall exist only if the Executive is employed
by the Company during that two year period) during which, subject to applicable
law, fund prospectus terms and written Company 

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policies concerning personal
investment activities, the Executive shall have the right to self-direct the
investment of the shares comprising the Fund Incentive Award and any
appreciation thereon among Janus-branded mutual fund(s) of Executive’s
choosing, subject only to applicable law, fund prospectus terms and Company
policies governing personal investment activities, but shall not have the right
to redeem or otherwise withdraw or transfer the shares comprising the Fund
Incentive Award or any appreciation or derivative thereof.  If the Executive is no longer employed by the
Company at the beginning of, or during the two year holding period, such
restrictions shall not apply.

(viii)       Office and
Executive Assistant.    During the
Employment Period, the Company shall pay reasonable expenses associated with
Executive’s maintenance of an office and employment of an executive assistant
in the New York metropolitan area.

(ix)          Incentive,
Savings and Retirement Plans.  During
the Employment Period, the Executive shall be entitled to participate in all
other incentive plans, practices, policies and programs, and all savings and
retirement plans, practices, policies and programs, in each case on terms and
conditions no less favorable than the terms and conditions generally applicable
to the Peer Executives.

(x)           Welfare Benefit
Plans.  During the Employment Period,
the Executive and the Executive’s spouse and dependents, as the case may be,
shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
and its affiliates (including, without limitation, medical, prescription,
dental, disability, employee life, group life, accidental death and travel
accident insurance plans and programs) on terms and conditions no less
favorable than the terms and conditions generally applicable to the Peer Executives.  Following the Employment Period, the
Executive and the Executive’s spouse and dependents, shall be eligible for
participation in, and shall receive all benefits under the Company’s or its
affiliates’ Health Benefits For Retirees Plan, subject to the terms of such
plan and unless such plan is modified or terminated by the Company with respect
to the Peer Executives.

(xi)          Expenses.  During the Employment Period, the Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by the Executive in accordance with the Company’s most favorable
policies, practices and procedures in effect for Peer Executives.

(xii)         Fringe Benefits.  During the Employment Period, the Executive
shall be entitled to fringe benefits on the same basis as those provided
generally at any time thereafter to the Peer Executives.  Without limitation, such benefits shall
include periodic use of the Company’s corporate jet, if any, for business
purposes in accordance with the Company’s policies and practices.

(xiii)        Vacation.  During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the plans, policies,
programs and practices of the Company as in effect for the Peer Executives, but
in no event less than four weeks.

(xiv)        Relocation Benefit.  If Executive notifies the Company in writing
of his intention to relocate his primary personal residence to the Denver,
Colorado metropolitan area during the Employment Period in connection with is
employment by the Company, Executive shall be eligible for a relocation benefit
under the Company’s executive relocation program.

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(xv)           Section 162(m)
Performance Criteria.  The Parties
acknowledge and agree that compensation payable to Executive under this
Agreement, including without limitation cash (other than his Annual Base
Salary) and any long-term incentive awards, shall be subject to and conditioned
upon such terms and conditions as are required to obtain full deductibility
under Section 162(m) of the Internal Revenue Code, including without limitation
the establishment, and Executive’s attainment of, performance-based benchmarks
(the “Performance Criteria”).  The
Performance Criteria shall be established in the reasonable discretion of the
Compensation Committee after consultation with Executive during the first
calendar quarter for the applicable calendar year.

(xvi)        Satisfaction of
Withholding Requirements.  All grants
and payments to Executive under this Agreement are subject to and conditioned
upon satisfaction of all applicable tax withholding requirements.  The Executive agrees to use his best efforts
to ensure satisfaction of all such withholding requirements, and shall execute
all documents and take all action reasonably deemed necessary by the Company to
ensure compliance with all such withholding requirements.

4.             Termination of Employment.

(a)            Death or Disability.  The Executive’s employment shall terminate
automatically upon the Executive’s death during the Employment Period.  If the Company determines in good faith that
the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may provide to
the Executive written notice in accordance with Paragraph 11(b) of this
Agreement of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment
with the Company shall terminate effective on the 30th day after receipt of
such notice by the Executive (the “Disability Effective Date”), provided that,
within the 30 days after the receipt of such notice, the Executive shall not
have returned to full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability”
shall mean the absence of the Executive from the Executive’s duties with the
Company on a full-time basis for 180 consecutive business days as a result of
incapacity due to mental or physical illness, which is determined to be total
and permanent by a physician selected by the Company or its insurers and
reasonably acceptable to the Executive or the Executive’s legal representative.

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

(i)             the continued failure of the
Executive to perform substantially the Executive’s duties with the Company
(other than any such failure resulting from incapacity due to physical or
mental illness, but including a failure by Executive for any other reason to
meet reasonable, material performance expectations that are not measured by
Company economic performance, or that are not measured by unsatisfactory
investment performance that is not specifically attributable primarily to
Executive’s acts or omissions), after a written demand for substantial
performance is delivered to the Executive by the Board or its representative,
which specifically identifies the manner in which the Board believes that the
Executive has not 

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substantially performed the
Executive’s duties and which gives the Executive no fewer than 120 (one-hundred
twenty) days to cure the deficiency noted therein; or

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

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

(iv)           a material breach by the Executive of
any material provision of this Agreement; provided that, if such breach is
promptly curable, the Company shall not have the right to terminate Executive’s
employment for Cause pursuant to this Paragraph 4(b)(iv) unless Executive,
having received written notice of the breach, fails to cure the breach within a
reasonable time but no less than 30 (thirty) days; or

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

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

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

(d)            Termination Procedures.

(i)              If the Company desires to
terminate Executive’s employment for Cause pursuant to Paragraph 4(ii), (iii),
(iv), (v) or (vi), above, the cessation of employment of the Executive shall
not be deemed to be for Cause unless and until there shall have been delivered
to the Executive a copy of a resolution duly adopted by the affirmative vote of
not less than two-thirds of the entire membership of the Board (not including
the Executive) at a meeting of the Board called and held for such purpose
(after reasonable notice is provided to the Executive and the Executive is
given an opportunity, together with counsel, to be heard before the Board) (a “Two-Thirds
Board Vote”), finding that, in the good faith opinion of the Board, the
Executive is guilty of the conduct described in Paragraph 4(ii), (iii), (iv),
(v) or (vi), above, and specifying the particulars thereof in detail.

(ii)              If the Company desires to
terminate Executive’s employment for Cause pursuant to Paragraph 4(i), above,
the cessation of employment of the Executive shall not be deemed to be for
Cause due to Executive’s failure to meet the Company’s reasonable, material
performance expectations that are not measured by the Company’s economic performance
or that 

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are not measured by
unsatisfactory performance that is not specifically attributable primarily to
Executive’s act or omissions, except pursuant to a resolution duly adopted by
the affirmative vote of not less the entire membership of the Board (not
including the Executive) less one (meaning, for example, that at least 9 of 10
Board Members (not including the Executive) must vote in support of the
resolution) at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive failed to timely
cure the performance deficiency in question.

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

(i)             a significant adverse and
non-temporary change, diminution or reduction, for any reason including a
Change in Control, in Executive’s current authority, title, reporting
relationship or duties as Chief Executive Officer, including requiring a
reporting relationship to an Executive Chairman, or other reporting
relationship that has the practical effect of materially diminishing Executive’s
current authority, or the assignment to Executive of material duties that are
inconsistent with Executive’s position as Chief Executive Officer, in either
case of a magnitude that changes the fundamental character of Executive’s job
as Chief Executive Officer to such an extent as to constitute a de facto
demotion, and in either case excluding for this purpose any action not taken in
bad faith and that is remedied by the Company promptly after receipt of notice
hereof given by the Executive as provided in Paragraph 4(e), below; or

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

(iii)           any material reduction in the overall
value of the Executive’s compensation and benefits package, other than a
reduction not occurring in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive as provided in
Paragraph 4(e), below, and excluding any reduction applicable equally to all
Peer Executives following an extraordinary decline in the Company’s earnings,
share price or public image; or

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

(v)            continuing, after reasonable notice
from Executive, to direct Executive to take any action that in Executive’s
good-faith, considered and informed judgment violates any applicable legal or
regulatory requirement; or

(vi)           requiring Executive to relocate
outside of the New York metropolitan area.

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

(f)             Sunset on Right to Terminate for
Good Reason.  If circumstances arise
giving Executive the right to terminate this Agreement for Good Reason, the
Executive shall within 120 days notify the Company in writing of the existence
of such circumstances, and the Company shall have an additional 30 days within
which to investigate and remedy the circumstances, after which 30 days the
Executive shall have an additional 60 days within which to exercise the right
to terminate for Good Reason.  If
Executive does not timely do so the right to terminate for Good reason shall
lapse and be deemed waived, and the Executive shall not thereafter have the
right to terminate for Good Reason unless further circumstances occur giving
rise independently to a right to terminate for Good Reason, in which case the
provisions of this Paragraph 4(e) 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.

(g)            Notice of Termination.  Any termination by the Company for Cause, or
by the Executive for Good Reason, shall be communicated by Notice of Termination
to the other party hereto given in accordance with Paragraph 11(b) of this
Agreement.  For purposes of this
Agreement, a “Notice of Termination” means a written notice which: (i)
indicates the specific termination provision in this Agreement relied upon,
(ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated and (iii) if the Date of
Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice). 
The failure by the Executive or the Company to set forth in the Notice
of Termination any fact or circumstance which contributes to a showing of Good
Reason or Cause shall not constitute a waiver of any right of the Executive or
the Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder.

(h)            Date of Termination.  “Date of Termination” means (i) if the
Executive’s employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein within 30 days of such notice, as the case may
be, (ii) if the Executive’s employment is terminated by the Company other than
for Cause or Disability, the Date of Termination shall be the date on which the
Company notifies the Executive of such termination and (iii) if the Executive’s
employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

5.             Obligations of the Company upon
Termination.

(a)            Upon any termination of Executive’s
employment, the Company shall pay to the Executive, in a lump sum in cash
within 30 days after the Date of Termination, the “Accrued Obligations,” which
shall be the sum of:

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(i)             the Executive’s Annual Base Salary
through the Date of Termination; and

(ii)            any fully earned and vested (and, in
the case of Annual Bonus and LTI for 2006, any such award which Executive
otherwise has the right to receive notwithstanding that it may not yet have
been awarded or granted) but as-yet unpaid Annual Bonus and LTI with respect to
the fiscal year of the Company prior to the Date of Termination.

(b)            Severance Pay.  If, during the Employment Period, the Company
terminates the Executive’s employment other than for Cause, death or
Disability, or the Executive terminates his employment for Good Reason pursuant
to Paragraph 4(e)(i) through (vi), then, in addition to the Accrued Obligations, conditioned upon Executive’s execution (and
if applicable non-revocation) of a legal release in a form reasonably
satisfactory to Company in its discretion (but not in any event imposing upon
Executive any restrictive covenants different than those set forth in Paragraph
8, below)  and drafted and executed so as
to ensure a final, complete and enforceable release of all claims that
Executive has or may have against Company relating to or arising in any way
from Executive’s employment with Company and/or the termination thereof (but
excepting claims for indemnification or defense, whether under contract or
otherwise), and complete and continuing confidentiality of Company’s
proprietary information and trade secrets, and, at the Company’s discretion,
the circumstances of Executive’s separation from Company and/or compensation
received by Executive in connection with that separation (collectively, a “Conforming
Legal Release”), the Company shall:

(i)             pay to the Executive, in a lump
sum, severance compensation in an amount equal to: (A) if the Date of
Termination is between the Effective Date and April 28, 2007, inclusive, one
times (x) Executive’s Annual Base Salary, and the Annual Bonus paid or payable
to Executive in connection with his last full calendar year of employment
before the Date of Termination, multiplied by (y) a fraction in which the
denominator is 365 and the numerator is the number of days between the Date of
Termination and April 28, 2007, inclusive, together with, if the Date of
Termination is before December 31, 2006, an amount equal to Executive’s target
2006 Annual Bonus multiplied by a fraction in which the denominator is 365 and
the numerator is the number of days between January 1, 2006, and the Date of
Termination, inclusive; or (B) if the Date of Termination is after April 28,
2007, one times Executive’s Annual Base Salary and the Annual Bonus paid or
payable to Executive in connection with his last full calendar year of
employment before the Date of Termination. All annual bonus calculations
pursuant to this paragraph shall be made assuming the Executive has attained
100% of his 162(m) performance targets, and the bonus component of Executive’s
severance payment shall be equal to the greater of Executive’s Annual Bonus
target for the year of the Date of Termination or that for the year preceding
the year of the Date of Termination; and calculations involving Annual
Base Salary, shall use the
greater of Executive’s Annual Base Salary for the year of the Date of
Termination or that for the year preceding the year of the Date of Termination.

(ii)            for the a period commencing on the
Date of Termination and concluding on the final day of the Initial Period, or,
if applicable, any then-current Renewal Period, or for such shorter period as
may be mandated by Section 409A of the Code to avoid adverse tax implications
for Executive, the Company shall continue to provide the benefits described in
Paragraph 3(b)(x) to the Executive and his spouse and dependents on the same
basis

 

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such benefits were provided
to the Executive immediately prior to the Effective Date, and, if such benefits
cannot be provided, a lump sum cash equivalent thereof, grossed-up for taxes
(collectively “Welfare Benefits”); and

(iii)            all unvested cash and equity
long-term incentive award and other incentive awards granted to the Executive,
including without limitation unvested shares of Janus Capital Group (“JNS”)
restricted stock, unvested options to purchase JNS stock, and awards consisting
of unvested mutual fund share allocations, including without limitation the
Share Award and the grants made pursuant to Paragraph 3(b)(iii), 3(b)(iv),
3(b)(v) and 3(b)(vi) of the Original Agreement, shall immediately vest and/or be paid, as
applicable, in full, and it shall be assumed that Executive has attained the
maximum target pursuant to Paragraph 3(b)(vii), it shall be assumed that Executive has attained or will attain all
applicable Section 162(m) performance targets, and any stock options shall, from and after such vesting, remain
exercisable for the remainder of their respective terms, subject to and as
limited by the terms of the agreement(s), certificate(s) and/or equity
incentive plans underlying each such grant; and

(iv)           to the extent not theretofore paid or
provided, the Company shall timely pay or provide to the Executive any
Other Benefits (as defined in Paragraph 6); and

(v)            the severance pay described
in the foregoing clauses (i), (ii), (iii) and (iv) shall be paid in a lump
sum in cash (as applicable) on the later of (A) any day within the first
30 days following the Date of Termination, or (B) if not within the
first 30 days following the Date of Termination, on the first day
following such 30th day when the Company’s deduction for the payment or accrual
of the severance pay described above is not subject to the deduction
limitations of Section 162(m).

(c)            Death.  If the Executive’s employment is terminated
by reason of the Executive’s death during the Employment Period, the Company
shall provide the Executive’s estate or beneficiaries with the Accrued
Obligations and the timely payment or delivery of the Other Benefits (as
defined in Paragraphs 5
and 6) and shall provide the Welfare Benefits (except for disability, employee
life, group life, accidental death and travel accident insurance benefits) to
the Executive’s spouse and dependents for a three-year period commencing as of
the Date of Termination, and shall have no other severance obligations under
this Agreement.  In addition, all
Retention and Incentive Awards shall be treated as described in Paragraph
5(b)(iii) above.  The Accrued Obligations
shall be paid to the Executive’s estate or beneficiary, as applicable, in a
lump sum in cash within 30 days of the Date of Termination.  With respect to the provision of the Other
Benefits, the term “Other Benefits” as utilized in this Paragraph 5(c) shall
include, and the Executive’s estate and /or beneficiaries shall be entitled to
receive, benefits at least equal to death benefits as in effect on the date of
the Executive’s death with respect to Peer Executives of the Company and their
beneficiaries.

(d)            Disability.  If the Executive’s employment is terminated
by reason of the Executive’s Disability during the Employment Period, the
Company shall provide the Executive with the Accrued Obligations and the timely
payment or provision of the Other Benefits (as defined in Paragraph 5 and 6)
and the provision of Welfare Benefits (except for disability, employee life,
group life, accidental death and travel accident insurance benefits) to the
Executive, his spouse and dependents for a three-year period commencing as of
the Date of 

 11
 

 

 

Termination, and, in
addition, the Company shall pay Executive a lump sum payment equivalent to
three times the annual premium paid by the Company in connection with Executive’s  employee life, group life, accidental death
and travel accident insurance benefits as of Executive’s last date of active
employment with the Company.  All
Retention and Incentive Awards shall be treated as described in Paragraph
5(b)(iii) above.  The Accrued Obligations
shall be paid to the Executive in a lump sum in cash within 30 days of the Date
of Termination.  With respect to the
provision of Other Benefits, the term “Other Benefits” as utilized in this
Paragraph 5(d) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits as in
effect at any time thereafter generally with respect to Peer Executives of the
Company and their families.

(e)            Cause; Other than for Good Reason.  If the Company terminates Executive’s
employment for Cause or the Executive terminates his employment without Good
Reason during the Employment Period, this Agreement shall terminate without
further obligations to the Executive other than the obligation to pay to the
Executive the Accrued Obligations and the Other Benefits (as defined in
Paragraph 6), in each case to the extent theretofore unpaid.  In the event of a termination for cause under
Paragraph 4(b)(i), the Executive shall receive the compensation set forth in
Paragraphs 3(b)(i), 3(b)(ii), 3(b)(iii) and 3(b)(vi), without forfeiture, the
Accrued Obligations, and, upon signing a Conforming Legal Release, the
severance payment in Paragraph 5(b)(i).

(f)             At the end of the Employment
Period or Thereafter.  If the
Executive’s employment shall terminate at the end of the Employment Period by
virtue of the expiration of this Agreement or for any other reason thereafter,
the Company shall pay to the Executive the Accrued Obligations and the Other
Benefits (as defined in Paragraph 6), in each case to the extent theretofore
unpaid.

(g)           Excise
Tax.  Notwithstanding any other
language to the contrary in this Agreement or in this Paragraph 5, the Company
shall not be obligated to pay and shall not pay that portion of any payment or
distribution in the nature of compensation within the meaning of Section
280G(b)(2) of the Code to the benefit of the Executive otherwise due or payable
the Executive under this Agreement or this Paragraph 5 if that portion
would cause any excise tax imposed by Section 4999 of the Code to become due
and payable by the Executive.

6.             Non-exclusivity of Rights.  Except as otherwise specifically provided in
this Agreement, nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any plan, program, policy or practice
provided by the Company for which the Executive may qualify, nor shall anything
herein limit or otherwise negatively affect such rights as the Executive may
have under any contract or agreement with the Company or any of its affiliated
companies.  Amounts that are vested
benefits, consisting of any compensation previously deferred by the Executive,
or that the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company at or
subsequent to the Date of Termination (“Other Benefits”) shall be payable in
accordance with such plan, policy, practice or program or contract or agreement
except as explicitly modified by this Agreement.  Notwithstanding any other provision of this
Agreement, the Executive shall not be entitled to receive any payments or
benefits under any severance program other than that which are described and
anticipated under this Agreement or under any Change of Control Agreement.

 12
 

 

 

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

 13
 

 

 

8.             Restrictive Covenants.

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

(b)            Protection
of Confidential Information.

(i)           Definition
of “Confidential Information.” “Confidential Information” means all
nonpublic information  (whether in paper
or electronic form, or contained in Executive’s memory, or otherwise stored or
recorded) relating to or arising from Company’s business, including, without
limitation, trade secrets used, developed or acquired by Company in connection
with its business.  Without limiting the
generality of the foregoing, “Confidential Information” shall specifically include
all information concerning the manner and details of Company’s operation,
organization and management; financial information and/or documents and
nonpublic policies, procedures and other printed, written or electronic
material generated or used in connection with Company’s business; Company’s
business plans and strategies; the identities of Company’s customers and the
specific individual customer representatives with whom Company works; the
details of Company’s relationship with such customers and customer
representatives; the identities of distributors, contractors and vendors
utilized in Company’s business; the details of Company’s relationships with
such distributors, contractors and vendors; the nature of fees and charges made
to Company’s customers; nonpublic forms, contracts and other documents used in
Company’s business; all information concerning Company’s employees, agents and
contractors, including without limitation such persons’ compensation, benefits,
skills, abilities, experience, knowledge and shortcomings, if any; the nature
and content of computer software used in Company’s business, whether
proprietary to Company or used by Company under license from a third party; and
all other information concerning Company’s concepts, prospects, customers,
employees, agents, contractors, earnings, products, services, equipment,
systems, and/or prospective and executed contracts and other business
arrangements.  “Confidential Information”
does not include information that is in the public domain through no wrongful
act on the part of Executive, nor does it include information, knowledge and
know-how already within Executive’s possession or memory before the Effective
Date.  In the event of a dispute
concerning whether Executive had Confidential Information within his possession
or memory before the Effective Date, the Company shall have the burden of
proving that the Confidential Information in question was not in the Executive’s
memory before the Effective Date, and that Executive used or disclosed such Confidential
Information in violation of this Agreement.

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

 14
 

 

 

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

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

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

(ii)          Employ or otherwise engage, or attempt
to employ or otherwise engage, in or on behalf of any Competitive Business, any
person who is employed or engaged as an employee, consultant, agent or
representative of the Company or any affiliate of the Company, or any person
who was employed or engaged as an employee, consultant, agent or representative
of the Company or any affiliate of the Company within the six month period
immediately preceding the Executive’s termination; or

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

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

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

(e)            For clarity and without limiting the
generality of the foregoing, this Agreement shall not be applied so as to
prohibit Executive from returning, at any time, to work for Goldman Sachs Asset
Management, Alliance Bernstein or any other financial services business or
financial institution, public or private, so long as, in performing services
for such a subsequent 

 15
 

 

 

employer, Executive complies
with his obligations, under Paragraph 8(b) above, to refrain from misusing or
disclosing the Company’s Confidential Information, and under Paragraph 8(c)
above, to refrain from interfering with the Company’s human resource and
business relationships, and diverting Company business opportunities, all as
more fully described above in Paragraphs 8(b) and 8(c).

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

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

9.             Successors.

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

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

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

10.           Indemnification and Directors and
Officers’ Insurance.

(a)            Scope of Indemnification.

(i)             General Indemnification  The Company shall indemnify and defend the
Executive to the fullest extent permitted under Delaware law (including without
limitation the Delaware Corporation law and the Company’s Certificate of
Incorporation) from and against any expenses (including but not limited to
attorneys’ fees, expenses of investigation and preparation and fees and disbursements of the Executive’s accountants or other
experts), 

 16
 

 

 

judgments, fines, penalties
and amounts paid in settlement (collectively “Indemnified Liabilities”)
actually and reasonably incurred by the Executive in connection with any
proceeding in which the Executive was or is made party or was or is involved
(for example, as a witness) by reason of the fact the Executive was or
is employed by the Company.

  (ii)          Special
Indemnification.   In addition to
Executive’s rights to
indemnification as set forth above and in the Certificate of Incorporation of
the Company, the Company shall indemnify Executive and hold Executive harmless
from and against any and all liabilities, suits, claims, actions, causes of
action, judgments, settlements, debts and expenses (including attorneys fees) of
any kind whatsoever and arising from and in connection with any events that
occurred at the Company prior to the commencement of Executive’s employment on
April 26, 2004 (collectively, “Preexisting Matters”); provided that with
respect to Indemnified Liabilities relating to or arising from Executive’s acts
and omissions following the Effective Date, whether or not such Indemnified
Liabilities related in whole or part to any Preexisting Matter, Executive shall
be entitled to indemnification only as specified in Paragraph 10(a)(i), above,
and not under the provisions of this Paragraph 10(a)(ii), which shall apply
only to claims and liabilities arising from events, acts and omissions in which
Executive played no role because they predated his employment by the Company.

(b)            Indemnification Limitations and Procedures.

(i)            Such indemnification is subject to:

(A)         the indemnifying party promptly
receiving written notice that a claim or liability has been asserted or
threatened (“Notice of Claim”); and

(B)          the indemnified party providing
reasonable cooperation and assistance in the defense or settlement of a claim;
and

(C)          the indemnifying party being afforded
the opportunity to have the sole control over the defense or settlement of such
claim or liability.

(ii)          Unless within ten days after receiving
the Notice of Claim, the indemnifying party notifies in writing the indemnified
party of its intent to defend against such claim or liability, the indemnified
party may defend, settle and/or compromise any such claim or liability, and be
indemnified for all losses resulting from such defense, settlement and/or
compromise.  Any indemnified party also
may participate in such defense at its own cost and expense.

(iii)         Such indemnification shall continue as
to the Executive during the Employment Period and for ten years from the Date
of Termination with respect to acts or omissions which occurred prior to his
cessation of employment with the Company and shall inure to the benefit of the
Executive’s heirs, executors and administrators.  The Company shall advance to the Executive
all costs and expenses incurred by him in connection with any proceeding
covered by this provision within 20 calendar days after receipt by the Company
of a written request for such advance. 
Such request shall include an undertaking by the Executive to repay the
amount of such advance if it shall ultimately be determined that he is not
entitled to be indemnified against such costs and expenses.

 17
 

 

 

(c)            The Company agrees to continue and
maintain directors’ and officers’ liability insurance policies covering the
Executive to the extent that the Company provides such coverage for its other
executive officers.  Such insurance
coverage shall continue as to the Executive even if he has ceased to be a
director, member, employee or agent of the Company with respect to acts or
omissions which occurred prior to his cessation of employment with the
Company.  Not withstanding the foregoing,
however, if the Company shall cease to maintain directors’ and officers’
liability insurance policies covering the Executive and other executive
officers by reason of:  (i) a
consolidation, merger, sale or other reorganization of the Company; (ii) any
person or entity or group of persons or entities acting in concert acquiring
management control of the Company; or (iii) the insurers providing such
insurance canceling or refusing to renew such insurance, then the Executive
shall have coverage only to the extent provided in any run-off policies
extending the period during which the Company or the Executive may give the
insurers notice of a claim under the termination directors’ and officers’
liability insurance policies.  The
Company shall take all reasonable actions to ensure that it obtains such
run-off policies and those such run-off policies extend the claims reporting
period through any applicable statutes of limitations, but nothing in this
section shall obligate the Company to obtain extraordinary insurance coverage
for the Executive.  Insurance
contemplated under this Paragraph 10(c) shall inure to the benefit of the
Executive’s heirs, executors and administrators.

11.           Miscellaneous.

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

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

	
  

  	
  If to the Executive:

  	
  At the most recent address on file at the Company,

  
	
   

  	
   

  	
   

  
	
   

  	
  And with a copy
  to:

  	
  McCarter & English, LLP

  
	
   

  	
   

  	
  245 Park Avenue

  
	
   

  	
   

  	
  New York, NY 10167

  
	
   

  	
   

  	
  Attention: Steven Eckhaus

  
	
   

  	
   

  	
  (212) 609-6800

  
	
   

  	
   

  	
  seckhaus@mccarter.com

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the
  Company:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Janus Capital
  Group Inc.

  	
   

  
	
   

  	
  151 Detroit
  Street

  	
   

  
	
   

  	
  Denver, Colorado
  80206

  	
   

  
	
   

  	
  Attn.: General
  Counsel

  	
   

  

 

 18
 

 

 

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

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

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

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

(f)            In the event of any dispute relating
to or arising from this Agreement, the party substantially prevailing shall
recover from the other party its costs, including reasonable attorneys’ fees.

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

[SIGNATURES
FOLLOW]

 19
 

 

 

	
  Gary
  D. Black 

  	
   

  	
  Janus Capital Group Inc. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed: 

  	
  /s/ Gary D. Black

  	
   

  	
  By: 

  	
  /s/ John H. Bluher

  
	
   

  	
   

  	
   

  	
   

  	
  EVP and General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  September 27, 2006

  	
   

  	
  Date:

  	
  September 27, 2006

  

 

 

 20EXHIBIT 10.1

MEMORANDUM OF AGREEMENT

AND COOPERATION

Concluded
between

MECHEM, A DIVISION OF DENEL (PTY) LTD

A
company incorporated in South Africa and with its registered address at Admin.

B Building, 368 Selborne Avenue, Lytellton, Centurion, 0157, South Africa

(Hereinafter referred to as MECHEM)

Herein represented by ABRAHAM JACOBUS ROSSOUW

In his capacity as General Manager

And

FORCE PROTECTION INDUSTRIES, INC.

A corporation incorporated and registered in the State of Nevada,
United States

and with its address at 9801 Highway 78, Ladson, South Carolina, United States

(previously named Technical Solutions Group, Inc.)

(Hereinafter referred to as FPI)

Herein represented by GORDON McGILTON

In his capacity as Chief
Executive Officer

	
  PREAMBLE

  	
   

  	
   

  
	
  WHEREAS

  	
   

  	
  FPI and MECHEM
  desire to further develop their business and contractual relationship
  initiated under Memoranda of Agreement dated March 26, 1998 and October 15,
  2001 respectively (FPI being
  previously named Technical Solutions Group Inc, the party named in such
  former Agreements);

  
	
   

  	
   

  	
   

  
	
  AND
  WHEREAS

  	
   

  	
  Pursuant to such prior agreements, MECHEM irrevocably transferred to FPI
  certain proprietary information and technology relating to the Systems in
  support of the development of FPI’s BUFFALO
  and TEMPEST armored vehicles in exchange for FPI’s
  agreement to pay MECHEM a
  “royalty” in the event that FPI sold and
  delivered any of these vehicles based on such technology during the term of
  such agreement;

  
	
   

  	
   

  	
   

  
	
  AND
  WHEREAS

  	
   

  	
  In the prior agreements, MECHEM
  agreed to continually transfer information and technology relating to the
  Systems exclusively to FPI for a
  period of five years (during which period MECHEM agreed not to transfer the
  same information or technology to any third party) and the parties now wish
  to extend the period of such exclusivity during the term hereof;

  

 

 

 

	
  AND WHEREAS

  	
   

  	
  During the term of such prior agreements, FPI designed and developed its own armored vehicles using
  its own proprietary know-how, expertise and Confidential Information,
  including by way of illustration and not limitation its COUGAR (including
  JERRV and other variants) and its MUV-R vehicles; 

  
	
   

  	
   

  	
   

  
	
  AND
  WHEREAS

  	
   

  	
  MECHEM represents that it has
  certain unique knowledge and expertise relating to the Systems, and wishes to
  continue working with FPI on an
  exclusive basis for the parties’ mutual benefit;

  
	
   

  	
   

  	
   

  
	
  AND
  WHEREAS

  	
   

  	
  FPI and MECHEM
  are desirous to formulate the terms and conditions pursuant to which the
  aforementioned will be done.

  

 

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

1.                          DEFINITIONS

1.1.           “BUFFALO,” “TEMPEST” “COUGAR” and “MUV-R”
mean the blast and ballistic protected armored vehicles having such trade names
which are designed, manufactured and sold by FPI
having substantially the configuration and specifications set forth in FPI’s
marketing materials relating to such vehicles.

1.2.           EFFECTIVE DATE shall mean the date when this Agreement is signed by
both parties, and it is hereby mutually agreed that upon the Effective Date,
all prior agreements between the parties shall be deemed terminated and
superseded by this Agreement (provided however that any payment obligations
accruing to MECHEM as a result of vehicles delivered prior to the Effective
Date under prior agreements shall remain in force until final payment thereof).

1.3.           INTELLECTUAL PROPERY RIGHTS (“IPR”) means all
legally recognized intellectual property rights including patent rights,
copyrights, trade secrets, trademarks and other proprietary rights which may be

 

 

protected
at law, including, without limitation “Confidential Information” which shall
mean all samples, formulae, methods, know-how, technology, software, material,
engineering data, specifications, sketches, drawings, schematics, designs,
processes, test results, compilations, and any other material, information,
ideas, concepts or knowledge which a party (the “Disclosing Party”) furnishes
to another party (the “Receiving Party”) in written or other tangible form that
is marked with a proprietary legend. Each of FPI and MECHEM hereby undertake
and agree not to disclose any Confidential Information received from the other
party and not to use such information for any purpose except as provided
herein.

1.4.            
SYSTEMS means blast and ballistic protected armored vehicles designed
and produced solely by MECHEM incorporating “South African” design features,
for example a monocoque crew capsule, a “V-shaped” hull and the use of metals
having various physical characteristics, and also includes additional vehicle
components and other devices designed and produced solely by MECHEM and
intended to protect against, detect and defeat mines, roadside bombs and IED’s.

1.5.            
VEHICLE FEE shall have the meaning set forth in Paragraph 4 hereof, and
represents payment to MECHEM as consideration for the exclusive relationship
set forth herein, and as recognition for the previous significant contributions
made by MECHEM in conjunction with FPI to FPI’s design, development of
proprietary information and data as well as intellectual property rights acquired
by FPI as a result of the manufacture of the BUFFALO pursuant to the prior
transfer of technology.

2.                          OBJECTIVE OF THE AGREEMENT

2.1.           The Parties confirm their intent to enter
into this Agreement pursuant to which MECHEM
shall extend for the duration of this Agreement (and any extensions hereof) the
exclusive relationship with FPI,
and FPI in consideration of such
exclusive relationship shall continue payment of the Vehicle Fees. The parties
acknowledge and agree that such extension of exclusivity benefits FPI in its commercial operations, and in
consideration thereof and the additional undertakings set forth herein, FPI agrees to pay to MECHEM the Vehicle Fees identified in
Paragraph 4 hereof.

 

 

3.                          OBLIGATIONS OF THE PARTIES

3.1.            MECHEM hereby commits and
agrees during the term of this Agreement not to cede, dispose or transfer any technology, IPR or other
proprietary information relating to the Systems to any third party including, but not limited to,
designs, drawings, full technical specifications, test data, hardware and
software designs and technologies, supplier’s list, know-how and all and every
piece of information and data relevant to the Systems. After this Agreement
expires, MECHEM has the right to dispose, transfer or
cede its right to its own propriety information of the Systems to whoever it so
desires without the consent or otherwise of FPI,
provided however that MECHEM shall
not deprive FPI of the right to use any such
information with FPI’s vehicles, shall not transfer
or cede to any third party any such information relating to FPI’s vehicles,
and  upon such expiration MECHEM shall
return all of FPI’s Confidential Information in its possession.

3.2.                              MECHEM shall, at the request of FPI,
provide expertise and know-how on a “work
for hire” basis to advise, assist and support FPI’s
marketing activities, including by way of illustration and not limitation
providing market intelligence, developing market forecasts and supporting FPI’s
marketing efforts to the United States Government. FPI shall pay all travel and out-of-pocket expenses incurred
by MECHEM as a result of such
activities, provided all such costs are mutually agreed between the parties in
advance.

3.3.                              MECHEM and FPI agree to abide by the requirements of
United States export and import laws and regulations during performance of this
Agreement, including the International Traffic in Arms Regulations and other
applicable laws. More specifically, FPI
shall not export, disclose, furnish or otherwise provide to MECHEM any defense article, technical data,
technology, defense service, or technical assistance relating to its vehicles (“Technical
Data and Services”) without obtaining an appropriate U.S. government export
authorization, and MECHEM agrees
not to disclose or furnish any FPI
Technical Data or Services to any third party except as expressly authorized by
FPI and the U.S. Government. If
required under U.S. regulations, MECHEM
shall register as a “Broker” with the U.S. State Department, Directorate of
Defense Trade Controls, and shall

 

 

keep such registration in effect while this
Agreement is in effect.  Promptly upon
execution of this Agreement, if it determines that a license is necessary FPI shall apply for an appropriate export
license covering the proposed services contemplated hereunder. During the
pendency of such license application (or in the event the license is not
approved) the parties shall limit their activities and discussions to marketing
and general industry matters.

4.                          VEHICLE FEE

4.1.                        For and in
consideration of the representations, undertaking and obligations set forth
herein, FPI agrees to pay MECHEM
a per vehicle fee (the “Vehicle Fee”) as described below for each of the
vehicles delivered by FPI during the
term of this Agreement:

4.1.1.                                                                     TEMPEST: US$3,000.

4.1.2.                                                                     COUGAR
(4x4 and 6x6) and any variants including the Hardened Engineer Vehicle (HEV),
the Joint Explosive Ordnance Disposal Rapid Response Vehicle (JERRV) and the
Iraqi Light Armored Vehicle (ILAV): US$1,500.

4.1.3.                                                                     BUFFALO: US$5,000.

4.2.           For the purposes hereof, “variant” shall mean
a vehicle with substantially the same design, including size, weight, profile,
attachments and overall configuration and with substantially similar
performance specifications in respect of survivability and automotive performance.  FPI’s determination whether any of its
products are “variants” of the TEMPEST, COUGAR or BUFFALO shall be conveyed to
MECHEM in writing.

4.3.           The Vehicle Fee will only accrue on vehicles
actually manufactured by FPI (or
manufactured on its behalf by any third party) and delivered to customers for
which FPI actually receives payment.  Each month, FPI
will prepare and forward to MECHEM a statement identifying all vehicles so
delivered and paid for during such month, and shall pay the Vehicle Fees associated
therewith to MECHEM.

4.4.           In the event of total or partial
non-fulfillment of the contract, in the case of force majeure, MECHEM will only be entitled to a Vehicle Fee on

 

 

the
part of the contract that has actually been executed and in proportion to the
payments actually received by FPI.

4.5.           A certificate, signed by an Officer of FPI, shall be supplied to MECHEM
on a quarterly basis (or
upon request of MECHEM) setting forth the quantities of
vehicles by category delivered and paid for by customers for which Vehicle Fees
are payable.

4.6.           After the validity of this Agreement has
expired or after it has been terminated in terms of Article 10, MECHEM shall still be entitled, on the basis stipulated in
4.1.1 to 4.1.3. above to all Vehicle Fees due in respect of Vehicles delivered
under any contracts executed prior to the termination of this Agreement, but
only after FPI received payment under such contracts.

5.                          INTELLECTUAL PROPERTY RIGHTS
& CONFIDENTIAL INFORMATION

5.1.           Any new IPR relating to the Systems, as a result of a modification,
development, enhancement or improvement by FPI will be the exclusive property of FPI. Similarly
any new IPR relating to the Systems, as a result of a modification,
development, enhancement or improvement by MECHEM
will be the exclusive
property of MECHEM provided
that FPI will have the continuing right to
use any such new IPR relating to the Systems with respect to FPI products. Except
as expressly provided in this Agreement, neither party shall use the other
party’s modifications, developments, enhancements or improvements without the express prior
written consent of the other.

5.2.           MECHEM does not
warrant the novelty of any of its technology, designs, know-how, trade secrets,
nor any possible patent to be valid and likewise does not warrant that the
exploitation thereof will not constitute an infringement of a claim of some
prior patent in any of the areas of the Systems. MECHEM however declares that as far as it is aware no
such prior claims exist.

5.3.           Notwithstanding any indication to the
contrary in any document or agreement, MECHEM
acknowledges and agrees that nothing contained herein or in any other prior
agreement between the parties shall be construed as

 

 

a
limitation on FPI’s sole and exclusive right to
design, develop, manufacture, market, test, sell, service and repair the
BUFFALO, TEMPEST, COUGAR, MUV-R or any of FPI’s current
or future products of whatever kind. MECHEM confirms
that it has no claim of right, title or interest in or to FPI’s
past, present or future vehicles or other products, and acknowledges that FPI exclusively owns all right, title and interest in and to
the BUFFALO, TEMPEST, COUGAR, MUV-R, the variants thereof and FPI’s other products and all IPR embodied in the BUFFALO,
TEMPEST, COUGAR, MUV-R, and variants thereof. MECHEM
acknowledges that FPI has the
sole and exclusive right to license, use, transfer, cede, dispose of, or take
any action it so desires with respect to its technology, IPR and Confidential
Information, and/or with respect to the design, data and technical information
relating to any of its vehicles, and MECHEM shall
not seek to limit or restrict such right. The only obligations between the
parties are set forth in this Agreement and there is no other right, claim,
interest, entitlement, license, commitment or ownership between the parties. MECHEM agrees that it shall not grant or purport to grant to
any third party any rights of whatever kind in or to the BUFFALO, TEMPEST,
COUGAR or any of FPI’s other products, and shall
not disclose or use for any purpose other than as provided in this Agreement
any FPI Confidential Information in its
possession. The obligations of this paragraph regarding the protection of FPI’s Confidential Information shall remain in effect during
the term of this Agreement and for a period of 10 years following its
expiration or termination for any reason.

6.                          PRODUCT LIABILITY

6.1.           The Parties acknowledge that the operation and use of the vehicles
manufactured by FPI may potentially involve and/or result in damage to property
and injury to or death of persons. FPI expressly acknowledges and accepts full liability for the any such claims and
MECHEM shall not be held responsible for any guarantees given by FPI including
operating, design or material guarantees. FPI also undertakes not to associate
Mechem in any litigation regarding any Systems product liability/claim.

7.                          INDEMNITY

 

 

7.1.            By FPI
acquiring all of the MECHEM’s proprietary information and technology
relating to the Systems, MECHEM shall
not be held responsible for any damage, loss caused by any actions, omissions,
death or injury sustained by FPI or any third party caused by any faulty designs, material used,
actions, omissions, negligence or misconduct by FPI.

7.2.           MECHEM, in terms of this Agreement, is exempted from all liability towards any persons due to damage, loss,
and suffering or otherwise, resulting from any cause ascribable to the
negligence or willful misconduct of FPI, its employees, agents or representatives.

8.                          APPLICABLE LAW

8.1.           This
Agreement shall be governed by and construed in all respects, in accordance
with the Law of the State of New York.

9.                          DURATION

9.1.           This
Agreement shall endure for a period of five years from the effective date,
unless terminated by mutual consent of the Parties, or in terms of articles 11
and 12 below.

10.                    TERMINATION

10.1.     Either MECHEM
or FPI shall be
entitled to terminate this Agreement forthwith:

10.2.     Upon the mutual consent of the parties.

10.3.     Upon the commencement or happening of any
occurrence connected with the insolvency, dissolution, administration,
receivership or liquidation of the other Party.

10.4.     In the case of termination as is envisaged
above the Parties will have no claims of liability against, or towards the
other, other than with respect to existing Agreements or liabilities incurred
at the date of termination.

11.                      BREACH

 

 

11.1.     In the event of either Party committing a
material breach of the terms and conditions of this Agreement, the aggrieved
Party shall, without prejudice to any other rights which it might have been
entitled as its election, give written notice to the breaching Party, to
rectify the breach within fourteen days and after failing to correct the breach
according to corrective action plan, give further written notice to rectify the
breach within thirty days and failing to do so cancel this Agreement and claim
damages.

12.                    ARBITRATION

12.1.     The
Parties undertake to cooperate in spirit of good faith and to resolve all
disputes in a friendly manner. If any dispute cannot be resolved the Parties
agree to refer the dispute to a mutually acceptable arbitrator, who is trusted
and respected by both Parties to try and resolve the dispute.

12.2.      Should there be no solution to the dispute
then arbitration shall be held in New York in accordance with the rules for
Conciliation and Arbitration of the International Chambers of Commerce, in the
English language. The decision of the arbitrator shall be final and binding on
the Parties hereto.

13.                    ASSIGNMENT/CESSION

13.1.     The Parties agree
that should there be a change of ownership, control and management of MECHEM or FPI, this
Agreement will not be effected and all the rights and obligations mutatis
mutandis shall be transferred to the new or successor owner or management.

13.2.     Should there be
no change in ownership, control or management the Parties rights and
obligations under this Agreement may not be transferred either in whole or part
to any third party, without the written consent of the other Party, which will
not be withheld, unless the circumstances are directly detrimental to the other
Party.  This restriction shall not apply
to assignments made to either party’s corporate parent, corporate sister or
corporate subsidiary.

14.                    AMENDMENTS

 

 

14.1.     This
Agreement may only be amended if such an amendment is put in writing, signed by
authorized representatives of both Parties and annexed to this Agreement.

15.                    SEVERABILITY

15.1.     If
any provision of this Agreement is or becomes illegal, void or invalid, it
shall not affect the legality and validity of the other provisions.

16.                    GENERAL

16.1.     The
foregoing constitutes the entire Agreement between the Parties with respect to
the subject matter hereof and supercedes and cancels all prior representations,
understandings and commitments (whether verbal or written) made between the
Parties.

16.2.     The Parties hereby agree that two copies of
this Agreement will be signed by each of the Parties and that each Party will
be entitled to an original signed copy of this Agreement. Facsimile copies of
the signatures pages may be exchanged between the parties and such facsimile
signature shall have the same force and effect as original signatures.

16.3.     Notices hereunder shall be deemed validly
given, if delivered by hand or sent by telex, telefax or by recorded delivery
post to the duly authorized representatives signing this Agreement. Such
notices shall be deemed effective on the date of receipt at the following
address:

	
  Force Protection

  	
   

  	
  MECHEM

  
	
  9801 Highway 78,
  Building # 1

  	
   

  	
  Admin B Building

  
	
  Ladson, South
  Carolina 29456

  	
   

  	
  368 Selborne Avenue

  
	
  United States

  	
   

  	
  Lytellton, Centurion 0157

  
	
   

  	
   

  	
  South
  Africa

  

 

This Agreement is signed on this 13th day of September, 2006 for and on behalf of:

MECHEM

/s/ Abraham Rossouw

 

 

 

ABRAHAM ROSSOUW

Witness:__________________________   Witness: __________________

 

This Agreement is signed on this 28th day of August, 2006 for and on behalf of:

Force Protection, Inc.

/s/ Gordon McGilton

Gordon McGilton

Witness:__________________________   Witness: __________________

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