Document:

COUNTY COMMISSIONERS OF CHARLES COUNTY, MARYLAND

Exhibit 10.2

 

COUNTY COMMISSIONERS OF CHARLES COUNTY, MARYLAND

 

	
In the Matter of the Petition of

INTERSTATE LAND DEVELOPMENT

COMPANY, INC., for rezoning from R-1,

C, and I, to PUD
	
Docket #90

 

 

AMENDED ORDER

St. Charles Associates Limited Partnership; Interstate General Company L.P. and St. Charles Community LLC (collectively "St. Charles" or "SCA"), having petitioned the County Commissioners of Charles County, Maryland (the "County") for, and the County having considered and agreed to, certain amendments to a previous order herein dated December 13, 1989, as amended on August 15, 1994 (collectively, the "Order"), in connection with the settlement of certain issues regarding the development of the planned unit development ("PUD") that is the subject of this docket, and the matter having been considered.

It is thereupon, this 22nd day of July, 2002, ORDERED by the County that the Order is hereby amended, at the request of SCA and with its express consent, by adding a new section entitled "2002 Amendments" as set forth below.

2002 AMENDMENTS

1.Good Faith Cooperation

(a)SCA and the County agree that it is in their mutual best interests to accelerate the construction of arterial roads in the PUD to serve future development and to improve the transportation network of the County, especially as these roads relate to the pupil transportation needs of the Charles County Public Schools. To accomplish this, the parties agree to the provisions of paragraph 5 below.

(b)SCA and the County agree that it is in their mutual best interests to provide stable property values by ensuring high quality of development and a mix of housing units that meets the needs of the County. To accomplish this, in addition to the requirements of paragraph 2(a) hereof, the parties shall meet together annually to review commercial and industrial development and the number, size and price of housing units sold during the preceding twelve months and adjust the size and mix of units that will allow a reasonable rate of development and satisfy the requirements of the County.

(c)SCA and the County agree that it is in their mutual best interests to aggressively pursue economic development in the County. To accomplish this, in addition to the requirements of paragraph 4 hereof, SCA and the County shall work with the Charles County Economic Development Commission to begin a targeted marketing program to bring new businesses to the County. SCA and the County further agree that it is in their mutual best interest to provide balanced growth by developing and selling commercial and industrial property, and by ensuring such commercial and industrial development receives adequate and timely water and sewer service.

(d)SCA and the County shall work together to attempt to identify and analyze all problems associated with the present and future capacity of the Piney Branch Interceptor. The County shall use its best efforts to develop a financing plan to address the problems so identified.

(e)In the event that the Kelson Ridge electric project is unduly delayed, the County shall work with SCA to develop a feasible financing mechanism to address necessary upgrades to Pumping Station 3A. To accomplish this, the parties agree to the provisions of paragraph 6.(a) below.

(f)Not later than January 1. 2005, SCA and the County shall meet and determine the number of school allocations in addition to those provided for in paragraph 7(b) hereof to sustain the continued development of the St. Charles PUD. The County shall use its best efforts to accelerate the construction of schools to provide the necessary allocations to SCA. The determination of the number of school allocations to be given to SCA shall be in the County's sole discretion and nothing herein shall entitle SCA to school allocations above those provided in paragraph 7(b) hereof.

(g)SCA and the County agree that the requirement of the Docket 90 Order requiring that 85 percent of Fairway Village be completed before any development in future Villages commences may be revised in light of the fact that the extension of St. Charles Parkway and the Cross County Connector with attendant water and sewer infrastructure will serve those Villages sooner than previously planned. Accordingly, SCA shall be entitled to submit a plan requesting such a revision and the County shall consider such plan.

(h)SCA and the County shall meet at least once annually to present information regarding the implementation of this Order and other matters that may arise concerning the parties, and to review the continuing cooperative relationship between the parties hereunder.

2.Quality of Construction

(a)For the initial phase of Fairway Village (Phases A, B. C, D), at least sixty percent of the single family detached dwellings constructed in SCC shall have a minimum of 2,350 square feet, 20% a minimum of 2,000 square feet, and in no event shall a single family detached house contain less than 1,650 square feet.  The mix and size of the units will be reviewed annually in accordance with paragraph 1.(h) above.

(b)The design and siting of housing shall continue to be subject to SCA's Fairway Village Guidelines and the St. Charles Planning and Design Review Board ("SCPDRB").

(c)The County's Site Design & Architectural Review Board shall be entitled to conduct a one-time review of SCA's Fairway Village Guidelines and Commercial and Industrial Guidelines.

(d)The County shall be entitled to appoint two voting members of the SCPDRB.

3.Planning

(a)SCA shall submit a revised preliminary plan for Fairway Village to show the new dwelling mix of a minimum of sixty percent single family detached, and a maximum of twenty percent each for townhouses and apartments. The plan shall show any revised proposed boundaries to accommodate the maximum of 3,346 units set forth in the Order. The plan shall also contain sites for an elementary school and a high school approved by the Board of Education.

(b)SCA agrees to limit the total number of dwelling units on land currently within the PUD and any additional contiguous land purchased and annexed to the PUD to 24,730 units. The County agrees to consider SCA's request for approval of the annexation of additional contiguous parcels of land proposed by SCA, provided that the County reserves the right, if it approves any such request, to impose conditions on any land annexed to ensure that the uses of the land are compatible with the plans of the County.

(c)The Parties agree that the remaining undeveloped land in SCC is exempt from the County's Forest Conservation requirements as long as it meets the State definition of a planned unit development as set forth in Section 5-1601 (ee), Natural Resources Article, Md. Ann. Code, by permanently dedicating 20% of its land to open space.

4.Economic Development.

SCA shall set aside an additional approximately 20 acres of land in Fairway Village for office or commercial development as part of its Fairway Village Center development.

5.Roads

(a)SCA shall construct the second two lanes of the Cross County Connector in St. Charles and extend four lanes of St. Charles Parkway from its present terminus to the property line of SCA's development and will do so in accordance with the following schedule:

Cross County Connector

Initiate Final DesignMay 15, 2002

Complete DesignDecember 31, 2002

Commence ConstructionJune 30, 2003

Complete ConstructionJune 30, 2004

St. Charles Parkway

Determine Final A1ignmentMay 15, 2002

Begin Final DesignJuly 1, 2002

Complete DesignDecember 31, 2003

Commence ConstructionApril 1, 2004

Complete ConstructionDecember 31, 2005

(b)The schedule set forth in the preceding subparagraph shall be contingent on (1) the timely financing of improvements through the sale of general obligation bonds by the County, and (2) the County undertaking the construction of St. Charles Parkway from the property line to U.S. 301 in approximately the same time period set forth above. With the County's approval, which shall not be unreasonably withheld, these deadlines may be extended for a reasonable period for reasonable cause.

(c)SCA shall provide a letter of credit or other suitable financial instrument that is acceptable to the County in form and content to guarantee the payment of the bonds for the portion of the Cross County Connector and the St. Charles Parkway constructed by SCA. The County shall not unreasonably withhold approval of a letter of credit or other suitable financial instrument proposed by SCA. The current road impact fee of $750 per unit payable by St. Charles shall be increased from time to time as necessary to an amount sufficient to amortize the cost of the bonds over a fifteen year period. The present estimated cost of the roads to be constructed by SCA is $12 million, and the fee to repay the cost of the bonds is estimated to be $6,000 per unit for each single family detached dwelling and townhouse unit and $1,000 for each apartment unit. These funds will be retained by SCA in an interest bearing account and payments will be made to the County in accordance with the stipulated repayment schedule for the bonds.

(d)If the County adopts a proposed Traffic Access Management Plan (the "Plan") for the Cross County Connector, St. Charles Parkway, and the realigned DeMarr Road, and SCA' s development submissions are in accordance with the Plan, then no further adequate public facility road studies are required unless the Plan is changed.

6.

(a)Pumping Station 3A

(i)SCA shall construct a new sewage pumping station and associated force main(s) at St. Charles Parkway and Billingsley Road that shall be designed to accommodate the existing flow from Pump Stations 2A, 3 and 5 as well as future flows from units to be constructed in St. Charles and off-site flows from property developed by others. In the event that the Kelson Ridge electric project is unduly delayed, the cost of the Pumping Station 3A and associated force main(s) shall be funded in accordance with subparagraph 6(a)(iii) below.

(ii)The County shall establish a policy to collect a special connection fee for off-site users of Pumping Station 3A in accordance with a Rebate Agreement between the County and SCA for the off-site connections.

(iii)As proposed in subparagraph 6(a)(i) above, the cost of the pumping station and associated force main(s) shall, subject to the requirements and procedures of state and local laws, be funded by general obligation bonds issued by the County. The County shall, subject to appropriation and pursuant to the requirements and procedures of State and Local law, pay that portion of the cost attributable to existing units. SCA shall pay for the proportion of the cost attributable to the new capacity, subject to reimbursement for off-site connections in accordance with the Rebate Agreement. SCA shall guarantee the repayment of its portion of the bonds by a letter of credit or other financial instrument acceptable to the County.

(iv) SCA shall pay a fee to the County for each single family detached dwelling and townhouse constructed in the St. Charles Communities PUD in a sufficient amount to amortize its portion of the bonds over a fifteen-year period. The fee amount may be changed from time to time by the County as necessary to pay principal and interest on the bonds.

(b)Pumping Station 5A

(i)SCA shall construct a new sewage pumping station at St. Paul's Drive and Piney Church that shall be designed to accommodate the flow from approximately 1,768 existing dwelling units, 430 units to be constructed off-site by others and approximately 340 additional units in Fairway Village. Construction shall begin twelve months prior to the time that the County Department of Public Utilities estimates that the sewage flows will reach the capacity of the existing pumping station and notifies SCA of such determination. If the necessity of expansion at such time is disputed, a neutral third party shall be selected by the County and SCA pursuant to the rules and procedures of the American Arbitration Association to resolve the dispute.

(ii)The County shall establish a policy to collect a special connection fee for off-site users of pumping station 5A in accordance with a Rebate Agreement between the County and SCA for the off site connections.

(iii) The cost of the pumping station shall, subject to the requirements and procedures of state and local laws, be funded by general obligation bonds issued by the County. The County shall, subject to appropriation and pursuant to the requirements and procedures of State and local law, pay that portion of the cost attributable to 1,768 existing units. SCA shall pay for the proportion of the cost attributable to the new capacity, subject to reimbursement for off-site connections in accordance with the Rebate Agreement. SCA shall guarantee the repayment of its portion of the bonds by a letter of credit or other financial instrument acceptable to the County.

(iv) SCA shall pay a fee to the County for each single family detached dwelling and townhouse constructed in the St. Charles Communities PUD in a sufficient amount to amortize its portion of the bonds over a fifteen year period. The fee amount may be changed from time to time by the County as necessary to pay principal and interest on the bonds. The estimated cost of construction of the pumping station is $1.3 million, and the estimated fee is $500 per residential unit. If any required expansion is disputed by the parties, then the parties' engineers shall mutually agree to an objective review and decision by a neutral third party mutually selected by the parties.

7.Adequate Public Facilities Agreement for School Capacity

(a)SCA shall donate school sites in accordance with the original Docket 90 Order.

(b)SCA shall be entitled to a minimum of 894 school allocations over the period beginning January 1, 2002 and ending December 31, 2005 in accordance with the schedule attached hereto as Exhibit A. Not later than January 1, 2005, SCA and the County shall meet and determine the number of school allocations necessary to sustain the continued development of the St. Charles PUD. utilizing a base line assumption of 200 units per year as a measure of probable minimum sustained economic viability.

(c)The Parties understand that SCA plans to develop one or more adults-only communities in SCC in accordance with the current age descriptions in the PRD Zone, and agree that SCA shall not be required to obtain school allocations or pay school impact fees for such adults-only communities, so long as such development complies with the age restriction requirements of the PRD Zone for adults only communities.

8.Miscellaneous

(a)The County is currently holding certain funds advanced by SCA for the widening of Middletown Road. SCA agrees to extend the time to complete this road construction for an additional three years.

(b)The County shall approve the realignment of DeMarr Road requested by SCA in the Fairway Village plan.

(c)As part of the road improvements for the Cross-County Connector as described in paragraph no. 5(a) above, SCA shall install a traffic signal at St. Charles Parkway and the Cross County Connector. SCA may use the funds accumulated in the off-site road fund and pay any additional cost using its own funds.

(d)SCA requests the County to reconsider the access point to Parcel H.  The County agrees to consider such request provided that it complies with the County's Access Management Plan.

(e)The requirements of all other orders in this Docket 90 shall remain in full force and effect, the same as if fully set out herein. To the extent that there is any inconsistency between any provision of this Amended Order and any prior order in this Docket 90, the provisions of this Amended Order shall control.

(f)The County reserves the right to impose additional terms, restrictions, limitations and conditions at any time in order to assure that the requirements of the PUD District shall be complied with. If SCA shall fail to comply with any of the terms, restrictions, limitations and conditions herein imposed or subsequently imposed by the County, and/or the Planning Commission, the County may refuse to issue any further building or occupancy permits, any other permit required to be secured by SCA or to approve any plats or plans required to be approved, until such time as SCA shall comply with all terms, conditions, restrictions and limitations herein or hereinafter imposed.

 

	
CHARLES COUNTY, MARYLAND

COUNTY COMMISSIONERS OF

	 
	
/s/ Murray D. Levy

Murray D. Levy, President

	 
	
/s/ Robert J. Fuller

Robert J. Fuller

	 
	
/s/ James J. Jarboe

James M. Jarboe

	 
	
/s/ Wm. Daniel Mayer

Wm. Daniel Mayer

	 
	
/s/ Allan R. Smith

Allan R. Smith

 

ATTEST:

/s/ Shirley M. Gore

Shirley M. Gore, Clerk

EXHIBIT A

ST. CHARLES COMMUNITY LLC

SCHOOL ALLOCATION REQUIREMENTS

	
Scenario I - NOT banking for apartments.

	 	 	 	 	 	 	 	 
	 	
SFDU
	 	
TH
	 	
APT
	 	
TOTAL

	
Existing:
	 	 	 	 	 	 	 
	
Recorded Lots
	
310
	 	 	 	 	 	
310

	 	 	 	 	 	 	 	 
	
Add'l Allocations
	 	 	 	 	 	 	 
	
Paid For
	
57
	 	 	 	 	 	
57

	 	 	 	 	 	 	 	 
	
Required:
	 	 	 	 	 	 	 
	
1/02
	
50
	 	
-
	 	
-
	 	
50

	
7/02
	
35
	 	
-
	 	
-
	 	
35

	 	 	 	 	 	 	 	 
	
1/03
	
61
	 	
-
	 	
204*
	 	
265

	
7/03
	
66
	 	
-
	 	
-
	 	
66

	 	 	 	 	 	 	 	 
	
1/04
	
65
	 	
70
	 	
-
	 	
135

	
7/04
	
60
	 	
70
	 	
-
	 	
130

	 	 	 	 	 	 	 	 
	
1/05
	
77
	 	
70
	 	
-
	 	
147

	
7/05
	
-
	 	
66
	 	
-
	 	
66

	 	
781
	 	
276
	 	
204
	 	
1,261

	 	 	 	 	 	 	 	 
	
% of Total
	
62%
	 	
22%
	 	
16%
	 	 

	
Scenario II - Banking for Apartments.

	 	 	 	 
	
1/02
	
85
	
1/04
	
135

	
7/02
	
115*
	
7/04
	
130

	 	 	 	 
	
1/03
	
150*
	
1/05
	
147

	
7/03
	
66
	
7/03
	
130

*Our objective is to start construction of the apartments in early 2003 with U&O's in early 2004.  We only need the full 204 allocations in January if they are necessary to record the plat (which will allow construction to commence).CONSENT, WAIVER and AMENDMENT dated
                                    as of October 23, 2002 (this "Amendment"),
                                    among STILWELL FINANCIAL INC., a Delaware
                                    corporation ("Stilwell"), JANUS CAPITAL
                                    CORPORATION, a Colorado corporation ("Janus"
                                    and, together with Stilwell, the
                                    "Borrowers"), the lenders party hereto (the
                                    "Lenders") and CITIBANK, N.A., as
                                    administrative agent (in such capacity, the
                                    "Agent") and as swingline lender.

                  Reference is made to (a) the Amended and Restated 364-Day
Credit Agreement dated as of October 24, 2001 (as amended, supplemented or
otherwise modified from time to time, the "Amended and Restated 364-Day
Agreement"), and (b) the Five-Year Credit Agreement dated December 7, 2000 (as
amended, supplemented or otherwise modified from time to time, the "Five-Year
Agreement", and together with the Amended and Restated 364-Day Agreement, the
"Credit Agreements"), in each case among the Borrowers, the Lenders party
thereto, Wells Fargo Bank West, N.A., as documentation agent, The Chase
Manhattan Bank, as syndication agent, and the Agent. Capitalized terms used but
not otherwise defined herein have the meanings assigned to them in the Credit
Agreements.

                  The Borrowers have announced that Janus will be merged into
Stilwell, and will be renamed Janus Capital Management Inc., and that its
investment in Nelson may be sold (the "Janus Transaction"), as more particularly
described in the press release attached as Exhibit A. In connection with the
Janus Transaction, the Amended and Restated 364-Day Agreement will be permitted
to expire in accordance with its terms on October 23, 2002, and will not be
extended or renewed and the commitments thereunder will terminate.

                  The Borrowers have requested that the Lenders consent to the
Janus Transaction and waive and amend certain provisions of the Five-Year
Agreement in connection with the Janus Transaction and the termination of the
Amended and Restated 364-Day Agreement. The Lenders are willing to agree to such
amendments on the terms and subject to the conditions of this Amendment.

                  Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto hereby agree as follows:

                SECTION 1. Consent and Waiver. Effective as of the Amendment
Effective Date (as defined in Section 9 hereof), each of the undersigned Lenders
hereby consents to the Janus Transaction and waives compliance by the Borrowers
with the provisions of Sections 5.01(a) and 6.04 of the Five-Year Agreement to
the extent (but only to the extent) necessary to permit the Borrowers to
consummate the Janus Transaction.

                SECTION 2.  Amendments to Article I. Section 1.01 of the Five-
Year Agreement is hereby amended as follows:

                (a) by adding in the appropriate alphabetical order therein the
        following new definitions:

                           "`Janus Transaction' shall mean the transaction
                           whereby Janus will be merged into Stilwell and will
                           be renamed Janus Capital Management Inc., and its
                           investment in Nelson may be sold."

                                       1
<PAGE>

                           "`JCM Inc.' shall mean Janus Capital Management Inc.,
                           a Delaware corporation, resulting from the merger of
                           Janus into Stilwell."

                           "`Merger Date' shall mean the date on which the Janus
                           Transaction shall be effective."

                (b) amending the definition of "Borrower" or "Borrowers" by
        adding at the end thereof the words ", in connection with actions or
        dates before the Merger Date and, in connection with actions or dates on
        and after the Merger Date, shall mean JCM Inc."

                (c) amending the definition of "Indebtedness" in its entirety to
        read as follows:

                           "`Indebtedness' of any person shall mean, without
                           duplication, (a) all obligations of such person for
                           borrowed money, (b) all obligations of such person
                           evidenced by bonds, debentures, notes, acceptances,
                           equipment trust certificates or similar instruments,
                           (c) all obligations of such person issued or assumed
                           as the deferred purchase price of property or
                           services other than accounts payable arising in the
                           ordinary course of such person's business on terms
                           customary in the trade, (d) all obligations of such
                           person, whether or not assumed, secured by (or for
                           which the holder of such Indebtedness has an existing
                           right, contingent or otherwise, to be secured by) any
                           Lien or payable out of the proceeds or production
                           from property owned or acquired by such person, (e)
                           Capitalized Lease Obligations of such person, (f) all
                           Guarantees by such person of Indebtedness of others
                           and (g) any other obligations or securities (other
                           than certain stock purchase agreements and
                           restriction agreements requiring Stilwell to purchase
                           outstanding capital stock of Janus from minority
                           stockholders of Janus) which such person is directly
                           or indirectly obligated to repay, redeem, retire,
                           extinguish or repurchase on or prior to the Maturity
                           Date (i) at a fixed or determinable date, whether by
                           operation of a sinking fund or otherwise, (ii) at the
                           option of any person other than the issuer thereof or
                           (iii) upon the occurrence of a condition not solely
                           within the control of the issuer thereof or obligor
                           thereon, such as a redemption out of future earnings.
                           The Indebtedness of any person shall include the
                           Indebtedness of any other entity (including any
                           partnership in which such person is a general
                           partner) to the extent such person is liable therefor
                           as a result of such person's ownership interest in or
                           other relationship with such entity, except to the
                           extent the terms of such Indebtedness provide that
                           such person is not liable therefor."

                (d) amending the definition of "Janus" in its entirety to read
        as follows:

                           "`Janus' shall mean Janus Capital Corporation, a
                           Colorado corporation, before the Merger Date and, on
                           and after the Merger Date, shall mean JCM Inc."

                (e) amending the definition of "Related Subsidiaries" in its
        entirety to read as follows:

                                       2
<PAGE>

                           "`Related Subsidiaries' shall mean (a) with respect
                           to Stilwell prior to the Merger Date, each of its
                           subsidiaries, other than Janus and each of Janus'
                           subsidiaries, (b) with respect to Janus prior to the
                           Merger Date, each of its subsidiaries, and (c) with
                           respect to Stilwell or Janus on or after the Merger
                           Date, each of the subsidiaries of JCM Inc."

                (f) amending the definition of "Stilwell" in its entirety to
        read as follows:

                           "`Stilwell' shall mean Stilwell Financial Inc., a
                           Delaware corporation, before the Merger Date and, on
                           and after the Merger Date, shall mean JCM Inc."

                (g) deleting the definition of "Janus Stock Purchase Agreement".

                (h) deleting the definition of "364-Day Agreement".

                SECTION 3. Amendments to Article II.  Article II of the Five-
Year Agreement is hereby amended by:

                (a) amending Section 2.01 by deleting clauses (b) and (c) in
        their entirety and substituting therefor the following:

                           "(b) prior to the Merger Date, the outstanding amount
                           of all Loans made by the Lenders to Stilwell exceed
                           two-thirds of the Available Borrowing Amount, (c)
                           prior to the Merger Date, the outstanding amount of
                           all Loans made by the Lenders to Janus exceed
                           one-third of the Available Borrowing Amount or (d) on
                           and after the Merger Date, the outstanding amount of
                           all Loans made by the Lenders exceed the Available
                           Borrowing Amount."

                (b) amending Section 2.03 by deleting the last two sentences of
        clause (a) and substituting therefor the following:

                           "The portion of the Revolving Credit Exposure
                           attributable to Stilwell at any time prior to the
                           Merger Date plus the aggregate principal amount of
                           Competitive Loans to Stilwell outstanding at that
                           time shall not exceed two-thirds of the Available
                           Borrowing Amount. The portion of the Revolving Credit
                           Exposure attributable to Janus at any time prior to
                           the Merger Date plus the aggregate principal amount
                           of Competitive Loans to Janus outstanding at such
                           time shall not exceed one-third of the Available
                           Borrowing Amount. On and after the Merger Date, the
                           Revolving Credit Exposure plus the aggregate
                           principal amount of Competitive Loans outstanding
                           shall at no time exceed the Available Borrowing
                           Amount."

                (c) amending Section 2.06 by deleting the first sentence of
        clause (b) and substituting therefor the following:

                          "(b) For any day on which the outstanding principal
                          amount of Loans shall be greater than 33-1/3% of the
                          sum of the total Commitments under this Agreement,
                          Stilwell shall pay to the

                                       3
<PAGE>

                          Agent for the account of each Lender a utilization fee
                          (a "Utilization Fee") equal to the Applicable
                          Percentage on the aggregate amount of each Lender's
                          outstanding Loans to the Borrowers on such day."

                (d) amending Section 2.11 by deleting the first sentence of
        clause (b) and substituting therefor the following:

                           "(b) Each reduction in the Total Commitment hereunder
                           shall be made (i) ratably among the Lenders in
                           accordance with their respective Commitments and (ii)
                           for reductions prior to the Merger Date, ratably
                           between the Borrowers in accordance with the
                           percentage of the Total Commitment available to each
                           Borrower on the date hereof."

                (e) amending Section 2.22 by deleting clause (a)(iii) in its
        entirety and substituting therefor the following:

                           "(iii) before the Merger Date, the aggregate
                           principal amount of all outstanding Loans made to
                           Janus exceeding one-third of the Available Borrowing
                           Amount, or on or after the Merger Date, the aggregate
                           principal amount of all outstanding Loans exceeding
                           the Available Borrowing Amount."

                (f) amending Section 2.24 by deleting the section in its
        entirety and substituting therefor the following:

                           "SECTION 2.24. Adjustments in Available Borrowing
                           Amount for Fluctuations in Average Assets Under
                           Management; Prepayment. (a) At any time when and so
                           long as Average Assets Under Management shall be less
                           than $180,000,000,000 but greater than or equal to
                           $170,000,000,000, the available amount of the
                           Commitments shall be reduced by $50,000,000.

                           At any time when and so long as Average Assets Under
                           Management shall be less than $170,000,000,000 but
                           greater than or equal to $150,000,000,000, the
                           available amount of the Commitments shall be reduced
                           by $100,000,000.

                           At any time when and so long as Average Assets Under
                           Management shall be less than $150,000,000,000, the
                           available amount of the Commitments shall be reduced
                           by $150,000,000.

                           (b) In the event and on each occasion that the
                           aggregate amount of Loans outstanding to the
                           Borrowers exceeds the then Available Borrowing
                           Amount, Stilwell shall promptly so notify the Agent
                           and each Borrower shall prepay its respective Standby
                           Borrowings in an aggregate amount at least equal to
                           its ratable portion of such excess.

                           (c) Each reduction in the Available Borrowing Amount
                           or any prepayment of Borrowings under this Section
                           shall be made (i) ratably among the Lenders in
                           accordance with their respective

                                       4
<PAGE>

                           Commitments and (ii) at any time prior to the Merger
                           Date, ratably between the Borrowers in accordance
                           with the percentage of the Total Commitment available
                           to each Borrower, in each case under the terms of
                           this Agreement."

                SECTION 4. Amendment to Section 4.01. Section 4.01 of the Five-
Year Agreement is hereby amended by deleting clause (d) in its entirety and
substituting therefor the following:

                           "(d) At the time of and immediately after such
                           Borrowing, extension or increase, as applicable, the
                           outstanding aggregate principal amount of all Loans
                           made by the Lenders (i) prior to the Merger Date, to
                           Stilwell shall not exceed two-thirds of the Available
                           Borrowing Amount, (ii) prior to the Merger Date, to
                           Janus shall not exceed one-third of the Available
                           Borrowing Amount and (iii) on and after the Merger
                           Date, shall not exceed the Available Borrowing
                           Amount."

                SECTION 5. Amendments to Article V.  Article V of the Five-Year
Agreement is hereby amended by:

                (a) amending Section 5.01 by deleting clause (b) in its entirety
        and substituting therefor the following:

                           "(b) Stilwell will at all times own, directly or
                           indirectly, not less than 66-2/3% of the outstanding
                           voting securities or membership interests, as
                           appropriate, of each of Berger, Janus, Nelson and
                           Janus Capital Management LLC, in each case free and
                           clear of any Liens on such securities or interests,
                           provided that the foregoing shall not apply to the
                           ownership of Janus or Nelson on or after the Merger
                           Date."

                (b) amending Section 5.04 by deleting clause (g) in its entirety
        and substituting therefor the following:

                           "(g) [intentionally omitted];"

                SECTION 6. Amendments to Article VI.  Article VI of the Five-
Year Agreement is hereby amended by:

                (a) amending Section 6.01 by deleting the words "and under the
        364-Day Agreement" from clause (v).

                (b) amending Section 6.02 by deleting clause (i) in its entirety
        and substituting therefor the following:

                           "(i) Liens arising pursuant to certain stock purchase
                           agreements and restriction agreements requiring
                           Stilwell to purchase outstanding capital stock of
                           Janus from minority stockholders of Janus;"

                SECTION 7. Amendment to Article VII. Article VII of the Five-
Year Agreement is hereby amended by deleting clause (m) in its entirety and
substituting therefor the following:

                                       5
<PAGE>

                           "(m) Stilwell shall cease to own, directly or
                           indirectly, at least 66-2/3% of the outstanding
                           voting securities or membership interests, as
                           appropriate, of any of Berger, Janus, Nelson or Janus
                           Capital Management LLC, provided that, the foregoing
                           shall not apply to the ownership of Janus or Nelson
                           on or after the Merger Date; or"

                SECTION 8. Representations, Warranties and Agreements.  Each
Borrower hereby represents and warrants to and agrees with each Lender and the
Agent that:

                (a) The representations and warranties of each Borrower set
        forth in Article III of the Five-Year Agreement are true and correct in
        all material respects with the same effect as if made on the Amendment
        Effective Date (as defined below), except to the extent such
        representations and warranties expressly relate to an earlier date.

                (b) Such Borrower has the requisite power and authority to
        execute, deliver and perform its obligations under this Amendment and to
        perform its obligations under the Five-Year Agreement, as amended by
        this Amendment.

                (c) The execution, delivery and performance by each Borrower of
        this Amendment and the performance by each Borrower of the Five-Year
        Agreement, as amended by this Amendment, (i) have been duly authorized
        by all requisite action and (ii) will not (A) violate (x) any provision
        of law, statute, rule or regulation, or of the certificate or articles
        of incorporation or other constitutive documents or by-laws of either
        Borrower, (y) any order of any Governmental Authority or (z) any
        provision of any indenture, agreement or other instrument to which
        either Borrower is a party or by which either of them or any of their
        property is or may be bound, (B) be in conflict with, result in a breach
        of or constitute (alone or with notice or lapse of time or both) a
        default under any such indenture, agreement for borrowed money or other
        agreement or instrument or (C) result in the creation or imposition of
        any Lien upon or with respect to any property or assets now owned or
        hereafter acquired by either Borrower.

                (d) This Amendment has been duly executed and delivered by each
        Borrower. The Five-Year Agreement, as amended by this Amendment,
        constitutes a legal, valid and binding obligation of each Borrower,
        enforceable against each Borrower in accordance with its terms, except
        as enforceability may be limited by (i) any applicable bankruptcy,
        insolvency, reorganization, moratorium or similar laws affecting the
        enforcement of creditors' rights generally and (ii) general principals
        of equity.

                (e) As of the Amendment Effective Date, no Event of Default or
        Default has occurred and is continuing.

                SECTION 9. Conditions to Effectiveness. This Amendment shall
become effective on October 23, 2002, provided the following conditions
precedent have been satisfied (the "Amendment Effective Date"):

                (a) The Agent shall have received duly executed counterparts
        hereof which, when taken together, bear the authorized signatures of
        each Borrower, Janus Capital Management LLC, the Agent and the Required
        Lenders under the Five-Year Agreement.

                (b) All legal matters incident to this Amendment shall be
        satisfactory to the Required Lenders, the Agent and Cravath, Swaine &
        Moore, counsel for the Agent.

                                       6
<PAGE>

                (c) The Agent shall have received such other documents,
        instruments and certificates as it or its counsel shall reasonably
        request.

                SECTION 10. Five-Year Agreement. Except as specifically stated
herein, the Five-Year Agreement shall continue in full force and effect in
accordance with the provisions thereof. As used therein, the terms "Agreement,"
"herein," "hereunder," "hereto," "hereof" and words of similar import shall,
unless the context otherwise requires, refer to the Five-Year Agreement as
modified hereby.

                SECTION 11. Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                SECTION 12. Counterparts. This Amendment may be executed in any
number of counterparts, each of which shall be an original but all of which,
when taken together, shall constitute but one instrument. Delivery of an
executed counterpart of a signature page of this Amendment by facsimile shall be
effective as delivery of a manually executed counterpart of this Amendment.

                SECTION 13. Expenses.  Stilwell agrees to reimburse the Agent
for its out-of-pocket expenses in connection with the this Amendment, including
the reasonable fees, charges and disbursements of Cravath, Swaine & Moore,
counsel for the Agent.

                                       7
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed by their respective authorized officers as of the
date first above written.

                                           STILWELL FINANCIAL INC.,

                                           by:    /s/ Daniel Connealy
                                                --------------------------------
                                               Name:  Daniel Connealy
                                               Title:    VP & CFO

                                           JANUS CAPITAL CORPORATION,

                                           by:    /s/ Daniel Connealy
                                                --------------------------------
                                               Name:  Daniel Connealy
                                               Title:    Vice President

                                           JANUS CAPITAL MANAGEMENT LLC, as
                                           Guarantor,

                                           by:    /s/ Loren M. Starr
                                                --------------------------------
                                               Name:  Loren M. Starr
                                               Title:    Chief Financial Officer

                                           CITIBANK, N.A., individually and as
                                           Administrative Agent and as Swingline
                                           Lender,

                                           by:    /s/ Matthew Nicholls
                                                --------------------------------
                                               Name:  Matthew Nicholls
                                               Title:     Vice President

                                           WELLS FARGO BANK, N.A., as successor
                                           in interest to WELLS FARGO BANK WEST,
                                           N.A.,

                                           by:    /s/ Randall Schmidt
                                                --------------------------------
                                               Name:  Randall Schmidt
                                               Title:    Vice President

                                       8
<PAGE>

                                           JPMORGAN CHASE BANK (f/k/a The Chase
                                           Manhattan Bank), individually and as
                                           Syndication Agent,

                                           by:    /s/ Marybeth Mullen
                                                --------------------------------
                                               Name:  Marybeth Mullen
                                               Title:    Vice President

                                           BANK OF AMERICA, N.A.,

                                           by:    /s/ Elizabeth W.F. Bishop
                                                --------------------------------
                                               Name:  Elizabeth W.F. Bishop
                                               Title:  Managing Director

                                           THE GOVERNOR AND COMPANY OF THE
                                           BANK OF IRELAND,

                                           by:
                                                --------------------------------
                                               Name:
                                               Title:

                                           by:
                                                -----------------------------
                                               Name:
                                               Title:

                                           BANK OF NEW YORK,

                                           by:    /s/ Timothy J. Somers
                                                --------------------------------
                                               Name:  Timothy J. Somers
                                               Title:    Vice President

                                       9
<PAGE>

                                           CREDIT SUISSE FIRST BOSTON,

                                           by:    /s/ Jay Chall
                                                --------------------------------
                                               Name:  Jay Chall
                                               Title:    Director

                                           by:    /s/ Bill O'Daly
                                                --------------------------------
                                               Name:  Bill O'Daly
                                               Title:    Director

                                           U.S. BANK NATIONAL ASSOCIATION,

                                           by:
                                                --------------------------------
                                               Name:
                                               Title:

                                           FLEET NATIONAL BANK,

                                           by:
                                                -------------------------------
                                               Name:
                                               Title:

                                           HSBC,

                                           by:
                                                --------------------------------
                                               Name:
                                               Title:

                                           THE ROYAL BANK OF SCOTLAND plc,

                                           by:    /s/ Diane Ferguson
                                                --------------------------------
                                               Name:  Diane Ferguson
                                               Title:    Senior Vice President

                                           STATE STREET BANK AND TRUST COMPANY,

                                           by:    /s/ John Stankard
                                                --------------------------------
                                               Name:  John Stankard
                                               Title:  Vice President

                                       10
<PAGE>

                                           UMB, N.A.,

                                           by:    /s/ Terry Dierks
                                                --------------------------------
                                               Name:  Terry Dierks
                                               Title:    Senior Vice President

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