exv10w17w1





Exhibit 10.17.1




T. ROWE PRICE GROUP, INC.




2004 STOCK INCENTIVE PLAN




HM REVENUE AND CUSTOMS APPROVED RULES FOR UK EMPLOYEES



(“THE SUB-PLAN”)




Adopted by the Company on:




Approved by the HM Revenue and Customs on:



HM Revenue and Customs reference no:




PricewaterhouseCoopers

Plumtree Court

London

EC4A 4HT




 









 








SCHEDULE




T. ROWE PRICE GROUP, INC. 2004 STOCK INCENTIVE PLAN



HM REVENUE AND CUSTOMS APPROVED RULES FOR UK EMPLOYEES



(“THE SUB-PLAN”)





			
	1.	 	General






This schedule to T. Rowe Price Group, Inc. 2004 Stock Incentive Plan (“the Plan”) and
appended Statement of Additional Terms and Conditions regarding the Annual Option Grants
(“the Terms”) sets out the HM Revenue and Customs Approved Rules for UK Employees (together
referred to as “the Sub-Plan”).




			
	2.	 	Establishment of Sub-Plan






T. Rowe Price Group, Inc. (“the Company”) has established the Sub-Plan under Section 3 of
the Plan1 which authorises the Administrator to adopt and interpret such rules,
regulations, agreements, guidelines and instruments for the administration of the Plan.




			
	3.	 	Purpose of Sub-Plan






The purpose of the Sub-Plan is to enable the grant to, and subsequent exercise by,
employees and directors in the United Kingdom, on a tax favoured basis, of options to
acquire shares in the Company under the Plan.




			
	4.	 	HM Revenue and Customs approval of Sub-Plan






The Sub-Plan is intended to be approved by HM Revenue and Customs under Schedule 4 to ITPEA
2003.




			
	5.	 	Rules of Sub-Plan






The rules of the Plan, in their present form and as amended from time to time, shall, with
the modifications set out in this schedule, form the rules of the Sub-Plan. In the event of
any conflict between the rules of the Plan and this schedule, the schedule shall prevail.




			
	6.	 	Relationship of Sub-Plan to Plan






The Sub-Plan shall form part of the Plan and not a separate and independent plan.




			
	7.	 	Interpretation






In the Sub-Plan, unless the context otherwise requires, the following words and expressions
have the following meanings:



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	 	Acquiring Company
	 	a company which obtains Control of the Company in
the circumstances referred to in rule 26;
	 
	 	 	 	 
	 

	 	Approval Date
	 	the date on which the Sub-Plan is approved by HM
Revenue and Customs under Schedule 4 to ITEPA 2003;
	 
	 	 	 	 
	 

	 	Associated Company
	 	the meaning given to that expression by paragraph
35 of Schedule 4 to ITEPA 2003;2
	 
	 	 	 	 
	 

	 	Close Company
	 	the meaning given to that expression by 414(1) of
ICTA as referred by paragraph 37 of Schedule 4 to,
ITEPA 2003;3
	 
	 	 	 	 
	 

	 	Consortium
	 	the meaning given to that word by paragraph 36(2)
of Schedule 4 to ITEPA 2003;4
	 
	 	 	 	 
	 

	 	Control
	 	the meaning given to that word by section 719 of
ITEPA 2003 and “Controlled” shall be construed
accordingly;5
	 
	 	 	 	 
	 

	 	Date of Grant
	 	the date on which an Option is granted to an
Eligible Employee determined in accordance with
Section 6(b) of the Plan;
	 
	 	 	 	 
	 

	 	Eligible Employee
	 	an individual who falls within Section 5 of the
Plan and who is:







	 	(a)	 	an employee (other than a director) of the
Company or a company participating in the Sub-Plan;
or
	 
	 	(b)	 	a director of the Company or a company
participating in the Sub-Plan who is contracted to
work at least 25 hours per week for the Company and
its subsidiaries or any of them (exclusive of meal
breaks)
	 
	 	 	 	 
	 

	and who, in either case, does not have at the Date
of Grant of an Option, and has not had during the
preceding twelve months, a Material Interest in a
Close Company which is the Company or a company
which has Control of the Company or a member of a
Consortium which owns the Company;




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	 	Grantee
	 	An individual who holds an Option, or where the
context permits, his legal personal
representatives;
	 
	 	 	 	 
	 

	 	ITA 2007
	 	The Income Tax Act 2007;
	 
	 	 	 	 
	 

	 	ITEPA 2003
	 	the Income Tax (Earnings and Pensions Act 2003);
	 
	 	 	 	 
	 

	 	Market Value
	 	notwithstanding Section 2(k) of the Plan







	 	(a)	 	in the case of an Option granted under the Sub
Plan:






	 	(i)	 	if at the relevant time the Shares are listed
on The NASDAQ Stock Market, the NASDAQ Official
Closing Price (NOCP) for the Date of Grant of the
Option, or if no reported price for that day, the
preceding day for which there was a reported price
(or in the event Shares are no longer listed on The
NASDAQ Stock Market but instead are listed on
another stock exchange registered with the
Securities and Exchange Commission of the United
States as a national securities exchange, the
comparable last or closing selling price on that
exchange);6
	 
	 	(ii)	 	if paragraph (i) does not apply, the market
value of a Share as determined in accordance with
Part VIII of the Taxation of Chargeable Gains Act
1992 and agreed in advance with HM Revenue and
Customs Shares Valuation on the Date of Grant of
the Option or such earlier date or dates as may be
agreed with HM Revenue and Customs;






	 	(b)	 	in the case of an option granted under any
other share option scheme, the market value of an
ordinary share in the capital of the Company
determined under the rules of such scheme for the
purpose of the grant of the option;




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	 	Material Interest
	 	The meaning given to that expression by paragraphs
9 to 14 of Schedule 4 to ITEPA 2003;7
	 
	 	 	 	 
	 

	 	New Option
	 	an option granted by way of exchange under rule
26.1;
	 
	 	 	 	 
	 

	 	New Shares
	 	the shares subject to a New Option referred to in
rule 26.1;
	 
	 	 	 	 
	 

	 	Option
	 	a subsisting right to acquire Shares granted under
the Sub-Plan;
	 
	 	 	 	 
	 

	 	Ordinary Share Capital
	 	the meaning given to that expression by section 989
of ITA 2007;
	 
	 	 	 	 
	 

	 	Shares
	 	ordinary shares of Common Stock of the Company, par
value twenty cents ($0.20) per share.






     In this schedule, unless the context otherwise requires:




			
	 	  	•	words and expressions not defined above have the same meanings as are given to them
in the Plan;
	 

	 	  	•	the rule headings are inserted for ease of reference only and do not affect their
interpretation;
	 

	 	  	•	a reference to a rule is a reference to a rule in this schedule;
	 

	 	  	•	the singular includes the plural and vice-versa and the masculine includes the
feminine; and

	 

	 	  	•	a reference to a statutory provision is a reference to a United Kingdom statutory
provision and includes any statutory modification, amendment or re-enactment thereof.
















			
	8.	 	Companies participating in Sub-Plan






The companies participating in the Sub-Plan shall be the Company and any company Controlled
by the Company which has been nominated by the Company to participate in the Sub-Plan.




			
	9.	 	Shares used in Sub-Plan






The Shares shall form part of the Ordinary Share Capital of the Company and shall at all
times comply with the requirements of paragraphs 16 to 20 of Schedule 4 to ITEPA
2003.8



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	10.	 	Grant of Options






An option granted under the Sub-Plan shall be granted under and subject to the rules of the
Plan as modified by this schedule.




			
	11.	 	Identification of Options






A Grant Agreement issued in respect of an Option shall expressly state that it is
issued in respect of an Option. An option which is not so identified shall not constitute
an Option.




			
	12.	 	Contents of Grant Agreement






A Grant Agreement, being the Sub-Plan, Terms and Notice taken together, also referred to in
the Sub-Plan as the “Agreement”, will be issued in respect of an Option and shall state:




	 	•	 	that it is issued in respect of an Option;
	 
	 	•	 	the date of grant of the Option;
	 
	 	•	 	the number of Shares subject to the Option;
	 
	 	•	 	the exercise price under the Option;
	 
	 	•	 	any performance target or other condition imposed on the exercise of the Option;
	 
	 	•	 	the date(s) on which the Option will ordinarily become exercisable; and
	 
	 	•	 	the period during which an Option shall remain exercisable following termination of
employment.






			
	13.	 	Earliest date for grant of Options






An Option may not be granted earlier than the Approval Date.




			
	14.	 	Persons to whom Options may be granted






Notwithstanding the provisions of Section 5 of the Plan, an Option may not be granted to an
individual who is not an Eligible Employee at the Date of Grant.




			
	15.	 	Options non transferable






An Option shall be personal to the Eligible Employee to whom it is granted and,
subject to rule 25, shall not be capable of being transferred, charged or otherwise
alienated and shall lapse immediately if the Grantee purports to transfer, charge or
otherwise alienate the Option.




Reference in Section 7(b) of the Plan to transfers by a Grantee otherwise than by will or
the laws of descent and distribution shall be disapplied for the purposes of the Sub-Plan.



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	16.	 	Limit on number of Shares placed under Option under Sub-Plan






For the avoidance of doubt, Shares placed under Option under the Sub-Plan shall be
taken into account for the purpose of Section 4 of the Plan.




			
	17.	 	HM Revenue and Customs limit (£30,000)






An Option may not be granted under this Sub-Plan to an Eligible Employee if the result of
granting the Option would be that the aggregate Market Value of the shares subject to all
outstanding options granted to him under the Sub-Plan or any other share option scheme
established by the Company or an Associated Company and approved by HM Revenue and Customs
under Schedule 4 to ITEPA 2003 (other than a savings related share option scheme) would
exceed sterling £30,000 or such other limit as may from time to time be specified in
paragraph 6 of Schedule 4 to ITEPA 20039. For this purpose, the United Kingdom
sterling equivalent of the market value of a share on any day shall be determined by taking
the spot sterling/US dollar exchange rate for that day as shown in the Wall Street Journal.
If the grant of an Option would otherwise cause the limit in this rule 17 to be exceeded,
it shall take effect as the grant of an option under the Plan.




			
	18.	 	Exercise price under Options






The amount payable per Share on the exercise of an Option shall not be less than the Market
Value of a Share on the Date of Grant and shall be stated on the Date of Grant.




			
	19.	 	Performance target or other condition imposed on exercise of Option






Any performance target or other condition imposed on the exercise of an Option under
Sections 3(b)(ii) (D) and 6(a) of the Plan, shall be:




	 	19.1	 	objective;
	 
	 	19.2	 	such that, once satisfied, the exercise of the Option is not subject to the
discretion of any person; and
	 
	 	19.3	 	stated on the Date of Grant.






If an event occurs as a result of which the Administrator
considers that a performance target or other condition imposed
on the exercise of an Option is no longer appropriate and
substitutes, varies or waives under Section 3(c) of the Plan the
performance target or condition, such substitution, variation or
waiver shall:




	 	19.4	 	be reasonable in the circumstances; and
	 
	 	19.5	 	produce a fairer measure of performance and be neither more nor less
difficult to satisfy.




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	20.	 	Exercise of Options by leavers






The period during which an Option shall remain exercisable following termination of
employment, shall be stated in the Grant Agreement.




			
	21.	 	Latest date for exercise of Options






Notwithstanding rule 25 the period during which an Option shall remain exercisable shall be
stated in the Grant Agreement and any Option not exercised by that time shall lapse
immediately.




			
	22.	 	Material Interest






An Option may not be exercised if the Grantee then has, or has had within the preceding
twelve months, a Material Interest in a Close Company which is the Company or which is a
company which has Control of the Company or which is a member of a Consortium which owns
the Company.




			
	23.	 	Manner of payment for Shares on exercise of Options






Paragraph 3 of the Terms provides for the method of exercising the Option and payment of
the exercise price, together with any amounts due under rule 30. Notwithstanding any
provisions of the Plan, the amount may not be paid by the transfer to the Company of Shares
or any other shares or securities.




			
	24.	 	Issue or transfer of Shares on exercise of Options






Subject to compliance by the Grantee with the rules of the Sub-Plan and to any delay
necessary to complete or obtain:




	 	  24.1	 	the listing of the Shares on any stock exchange on which Shares are then
listed; or
	 
	 	  24.2	 	such registration or other qualification of the Shares under any applicable
law, rule or regulation as the Company determines is necessary or desirable.






The Company shall, as soon as reasonably practicable and in any event not later than thirty
days after the date of exercise of an Option, issue or transfer to the Grantee, or procure
the issue or transfer to the Grantee of, the number of Shares specified in the notice of
exercise and shall deliver to the Grantee, in the case of the partial exercise of an
Option, a Grant Agreement in respect of, or the original Grant Agreement endorsed to show,
the unexercised part of the Option, subject only to:




	 	  24.3	 	the making of provision for the payment or withholding of any taxes required
to be withheld in accordance with any applicable law in respect of the exercise of the
Option or the receipt of the Shares.




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	 	  24.4	 	Notwithstanding Section 6(a) of the Plan, deferral of the individual’s
delivery of Shares that would otherwise be due to such individual by virtue of the
exercise of the Option is disapplied for the purposes of the Sub-Plan.






Unless and until the Grantee requests the Company to deliver a share certificate to the
Grantee, or deliver Shares electronically or in certificate form to the Grantee’s
designated broker, bank or nominee on the Grantee’s behalf, the Company will retain the
Shares that the Grantee purchased through exercise of the Option in uncertificated book
entry form.




			
	25.	 	Death of Grantee






If a Grantee dies, his personal representatives shall be entitled to exercise his Options
for the period stated in the Grant Agreement, but in no event later than the twelve month
period following his death. If not so exercised, the Options shall lapse immediately.




			
	26.	 	Change in Control of Company






			
	26.1	 	Exchange of Options






If a company (“Acquiring Company”) obtains Control of the Company as a result of
making:




	 	26.1.1	 	a general offer to acquire the whole of the issued ordinary share capital of the
Company which is made on a condition such that if it is satisfied the person making
the offer will have Control of the Company; or
	 
	 	26.1.2	 	a general offer to acquire all the shares in the Company of the same class as the
Shares






a Grantee may, at any time during the period set out in rule 26.2, by agreement with the
Acquiring Company, release his Option in whole or in part in consideration of the grant to
him of a new option (“New Option”) which is equivalent to
the Option but which relates to shares (“New Shares”) in:




	 	26.1.3	 	the Acquiring Company;
	 
	 	26.1.4	 	a company which has Control of the Acquiring Company; or
	 
	 	26.1.5	 	a company which either is, or has Control of, a company which is a member of a
Consortium which owns either the Acquiring Company or a company having Control of the
Acquiring Company.






			
	26.2	 	Period allowed for exchange of Options






The period referred to in rule 26.1 is the period of six months beginning with the time
when the person making the offer has obtained Control of the Company and any condition
subject to which the offer is made has been satisfied.



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	26.3	 	Meaning of “equivalent”






The New Option shall not be regarded for the purpose of this rule 26 as equivalent to the
Option unless:




	 	26.3.1	 	the New Shares satisfy the conditions in paragraphs 16 to 20 of Schedule 4 to ITEPA
2003; and
	 
	 	26.3.2	 	save for any performance target or other condition imposed on the exercise of the
Option, the New Option will be exercisable in the same manner as the Option and
subject to the provisions of the Sub-Plan as it had effect immediately before the
release of the Option; and
	 
	 	26.3.3	 	the total market value, immediately before the release of the Option, of the Shares
which were subject to the Option is equal to the total market value, immediately after
the grant of the New Option, of the New Shares (market value being determined for this
purpose in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992);
and
	 
	 	26.3.4	 	the total amount payable by the Grantee for the acquisition of the New Shares under
the New Option is equal to the total amount that would have been payable by the
Grantee for the acquisition of the Shares under the Option.






			
	26.4	 	Date of grant of New Option






The date of grant of the New Option shall be deemed to be the same as the Date of Grant of
the Option.




			
	26.5	 	Application of Sub-Plan to New Option






In the application of the Sub-Plan to the New Option, where appropriate, references to
“Company” and “Shares” shall be read as if they
were references to the company to whose shares the New Option relates and the New Shares, respectively, save that in the definition
of “Administrator” the reference to “Company” shall be read as if it were a reference to T.
Rowe Price Group, Inc.




			
	27.	 	Rights attaching to Shares issued on exercise of Options






All Shares issued on the exercise of an Option shall, as to any voting, dividend, transfer
and other rights, including those arising on a liquidation of the Company, rank equally in
all respects and as one class with the Shares in issue at the date of such exercise save as
regards any rights attaching to such Shares by reference to a record date prior to the date
of such exercise.




			
	28.	 	Adjustment of Options






Notwithstanding Sections 3(b)(ii)(E) and 7(c) of the Plan, no adjustment of an Option made
pursuant to rule 8 of the Terms shall take effect until it has been approved by HM Revenue
and Customs.



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	29	 	  Tax and social security withholding






	29.1		 	Where, in relation to the exercise of an Option granted under the Sub-Plan the Company or, if
different, the Grantee’s employing company, is liable, or is in accordance with current
practice believed to be liable, to account to any revenue or other authority for any sum in
respect of any tax or social security liability of the Grantee, the Option may not be
exercised unless the Grantee has beforehand paid to the Company or such employing company an
amount sufficient to discharge the liability. Alternatively, the Grantee may, by agreement
with the Company, enter into some other arrangement to ensure that such amount is available to
it (for example, by authorising the sale of some or all of the Shares subject to his Option
and the payment to the Company or such employing company of the requisite amount out of the
proceeds of sale). .Where this is the case the Option shall not be treated as exercised until
the Company determines that such arrangements are satisfactory to it.
	 
	29.2	 	 	The Company may, at its discretion, impose requirements for the payment by the Grantee of all
or any part of the employer’s National Insurance Contributions liability that may arise as a
result of the exercise of his Option (“Employer’s NIC”). Such requirements may include in
particular, but not by way of limitation, a determination that the Option may not be exercised
unless the Grantee has beforehand paid to the Company (or, if different, the Grantee’s
employing company) an amount sufficient to discharge all or any part of the Employer’s NIC,
as appropriate. Alternatively, the Grantee may, by agreement with the Company enter into some
other arrangement to ensure that such amount is available to them or it (for example, by
authorising the sale of some or all of the Shares subject to his Option and the payment to the
Company of the requisite amount out of the proceeds of sale). Where this is the case the
Option shall not be treated as exercised until the Company determines that such arrangements
are satisfactory to it.
	 
	29.3	 	 	The Company may require a Grantee to execute a copy of the Grant Agreement or some other
document in order to bind himself contractually to any such arrangement as is referred to in
rule 29.1 and/or 29.2 and return the executed document to the Company by a specified date.
Failure to return the executed document by the specified date being no more than 30 days after
the Date of Grant shall cause the Option to lapse.
	 
	30.	 	 	Exercise of discretion by Administrator






In exercising any discretion which it may have under the Sub-Plan, the Administrator
shall act fairly and reasonably.




	31.	 	 	Disapplication of certain provisions of Plan
	 
	31.1	 	 	The provisions of the Plan dealing with:






	 	    •	 	stock appreciation rights;




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	 	•	 	stock awards;
	 
	 	•	 	incentive stock options (unless an Option is also designated to be an incentive
stock option at the Date of Grant under Clause 15 of the Statement of Additional Terms
and Conditions relating to Option grants under the Sub-Plan);
	 
	 	•	 	the authority of the Administrator to accelerate or otherwise change the time in
which an Option may be exercised or becomes payable and waive or accelerate the lapse,
in whole or in part, of any restriction or condition with respect to such Option, as
outlined in section 3(b)(ii)(D) of the Plan;
	 
	 	•	 	awards in substitution for stock options granted by other entities, as outlined in
Section 7(d) of the Plan; and
	 
	 	•	 	reference in Section 7(c)(i) of the Plan to “... or the payment of a stock
dividend”;
	 
	 	•	 	the provisions of 7(c)(ii) of the Plan;
	 
	 	•	 	the provisions of 3(b)(ii)(E) of the Plan; and
	 
	 	•	 	the provisions of 3(b)(ii)(F) of the Plan





           shall not form part of, and no such rights may be granted under, the Sub-Plan




	 	31.2	 	In rule 6 (a) of the Plan (“Awards in General”) the words “The Administrator may permit or
require a recipient of an Award to defer such individual’s receipt of the payment of cash or
the delivery of Common Stock that would otherwise be due to such individual by virtue of the
exercise of, payment of, or lapse or waiver of restrictions respecting, any Award. If any such
payment deferral is required or permitted, the Administrator shall, in its sole discretion,
establish rules and procedures for such payment deferrals.” shall be disapplied and of no
effect.







 




			
	Notes
	 
	1 	 	
The Company is the “scheme organiser” as defined in paragraph 2 of
Schedule 4 to ITEPA 2003 because it has established the Sub-Plan. In most
cases, it will also be the Company which grants options under the Sub-Plan,
although this is not a requirement of UK tax legislation.
	 
	2	 	A company is treated as another’s “associated company”
at a given time if, at that time or at any other time within one year
previously, one of the two has control of the other, or both are under the
control of the same person or persons. A person is taken to have control of a
company if he exercises, or is able to exercise or is entitled to acquire,
direct or indirect control over the company’s affairs and, in particular, if




12









 









			
	 	 	he
possesses or is entitled to acquire the greater part of the company’s issued
share capital or the voting power in the company. UK tax legislation contains
two definitions of control: the definition of control here is different from
that in paragraph 4 below.
	 
	3	 	A close company is a company which is under the control
(as defined in paragraph 1 above) of five or fewer participators (eg
shareholders) or of any number of participators who are directors. There are
attributed to a participator all the rights and powers (eg shares, voting
power) of, inter alia, a company which he controls or of an “associate” (eg
relative) of his. Ordinarily, a company is excluded from being a close company
if it is non UK resident or 35% of the voting power in the company is held by
the public and its shares have been listed, and the subject of dealings, on a
recognised stock exchange within the preceding 12 months. However, for the
purpose of the material interest test (see paragraph 5 below), this exclusion
does not apply with the result that the normal definition of a “close company”
is extended.
	 
	4	 	A company is a member of a consortium owning another
company if it is one of a number of companies which between them beneficially
own not less than three-quarters of the other company’s ordinary share capital
and each of which beneficially owns not less than one-twentieth of that
capital.
	 
	5	 	In relation to a body corporate (company A), “Control”
means the power of a person (P) to secure:
	 
	(a)	 	by means of the holding of shares or the possession of voting power in or in
relation to that or any other body corporate; or
	 
	(b)	 	as a result of any powers conferred by the articles of association or other
document regulating that or any other body corporate
	 
	 	 	that the affairs of company A are conducted in accordance with P’s wishes.
	 
	 
	6	 	In accordance with paragraph 29026 of the HM Revenue and
Customs Employee Share Schemes Manual, unless the relevant overseas recognised
stock exchange is the NYSE, NASDAQ or the American Stock Exchange then
clearance is required from HM Revenue and Customs Shares Valuation before the
quoted price on the relevant stock exchange may be used to determine the market
value of the listed share.
	 
	7	 	A person has a material interest in a company if he,
either on his own or with one or more associates, or if any associate of his
with or without such other associates:






	(a) 	 	is the beneficial owner of, or able, directly or through the medium of other
companies, or by any other indirect means to control, more than 10 per
cent of the ordinary share capital of the company; or
	 
	(b) 	 	where the company is a close company, possesses, or is entitled to acquire,
such rights as would, in the event of the winding-up of the company or in any
other circumstances, give an entitlement to receive more than 10 per cent of
the assets which would then be available for distribution among the
participators.







 




			
	8	 	The shares used in the scheme must be:






	 
	(a) 	 	ordinary shares;
	 
	(b) 	 	fully paid up;
	 
	(c) 	 	not redeemable; and




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	(d)	 	save for certain limited exceptions, not subject to any restrictions which
do not apply to all shares of the same class.




The shares used in the scheme must be:





	(a)	 	of a class listed on a recognised stock exchange; or
	 
	(b)	 	shares in a company which is not under the control of another company; or
	 
	(c)	 	shares in a company which is under the control of another company (other
than a company which is, or would if resident in the UK be, a close
company) whose shares are listed on a recognised stock exchange.




The shares used in the scheme form part of the ordinary share capital of:





	(a)	 	the grantor (ie the company which has established the scheme); or
	 
	(b)	 	a company which has control of the grantor; or
	 
	(c)	 	a company which either is, or has control of, a company which is a member of
a consortium owning either the grantor or a company having control of the
grantor.




Where the company whose shares are to be used in a scheme has more than one
class of ordinary share, the majority of the issued shares of the same class as
those which are to be used must be either employee control shares (see below)
or:





	(a)	 	must not be held by persons (including trustees holding shares on behalf of
such persons) who acquired their shares in pursuance of a right conferred
on them or opportunity offered to them as directors or employees of any
company, and not in pursuance of an offer to the public; and
	 
	(b)	 	if the shares are not listed on a recognised stock exchange and the company
is under the control of another company whose shares are so listed, must
not be held by companies which have control of the company whose shares
are in question or of which that company is an associated company.




Shares are employee control shares if:





	(a)	 	the persons holding them are, by virtue of their holding of shares of that
class, together able to control the company; and
	 
	(b)	 	those persons are, or have been, employees or directors of the company or of
another company which is under the control of the company.









 
 




			
	9	 	UK tax legislation imposes a limit (currently £30,000)
on the “value” of the outstanding options which may be held by an individual
participant in an HM Revenue and Customs approved executive share option
scheme.




{ end of
document}




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T. Rowe Price Group, Inc. 2004 Stock Incentive Plan




HM REVENUE AND CUSTOMS APPROVED SUB-PLAN FOR THE UK




STATEMENT OF ADDITIONAL TERMS AND CONDITIONS



REGARDING OPTION GRANTS




Effective on and after February 24, 2009



 





This Statement of Additional Terms and Conditions Regarding the Option Grants (the “Terms”) and all
of the provisions of the HM Revenue and Customs Approved Sub-Plan for the UK (the “Sub-Plan”) under
the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan (the “Plan”) are incorporated into the
grant of your Option, the specifics of which are described on the “Notice of Grant of Stock Options
and Option Agreement” (the “Notice”) that you received. Once the Notice has been executed by you
and by an authorized officer or agent of T. Rowe Price Group, Inc., the Sub-Plan and the Notice,
together, constitute a binding and enforceable contract respecting the grant of an Option. That
contract is referred to in this document as the “Agreement.”





	1.	 	Terminology. Capitalized words used in these Terms are defined in the relevant text
or in the Glossary at the end of these Terms.
	 
	2.	 	Option Exercise Rights.






	 	(a)	 	So long as your Service is continuous from the date of grant through the
applicable date upon which vesting is scheduled to occur, the Option will become
exercisable in installments, for the number of shares so specified, on the vesting
dates set forth in the correlating Notice.
	 
	 	(b)	 	To the extent not exercised, installments will accumulate and be exercisable by
you, in whole or in part, at any time before the Option expires or is otherwise
terminated.
	 
	 	(c)	 	No less than 100 shares of T. Rowe Price Group common stock may be purchased
upon any one exercise of the Option unless the number of shares purchased at such time
is the total number of shares in respect of which the Option is then exercisable.
	 
	 	(d)	 	In no event will the Option be exercisable for a fractional share.






	3.	 	Method of Exercising Option and Payment of Exercise Price.






	 	(a)	 	Method of Exercise. To exercise the Option, you must deliver to the
Company, from time to time, on any business day after the Option has become exercisable
and before it expires or otherwise terminates, an Exercise Notice specifying the
number of shares you then desire to purchase and pay the aggregate exercise




 









 






	 	 	 	price for the shares specified in the Exercise Notice. The exercise price may be paid:






	 	(i)	 	by cash, check, wire transfer, bank draft or postal or express
money order to the order of the Company for an amount in United States dollars
equal to the aggregate exercise price for the number of shares specified in the
Exercise Notice, such payment to be delivered with the Exercise Notice;
	 
	 	(ii)	 	by broker-assisted cashless exercise, under which the broker
delivers loan proceeds to pay the exercise price, in accordance with procedures
satisfactory to the Committee; or
	 
	 	(iii)	 	by a combination of these methods.






	 	(b)	 	Issuance of Shares. Within three business days after the Exercise Date
and subject to the receipt of the aggregate exercise price and withholding taxes, to
the extent required by the Company, the Company will issue to you the number of shares
of T. Rowe Price Group common stock with respect to which the Option shall be so
exercised. Unless and until you request the Company to deliver a share certificate, or
deliver shares electronically or in certificate form to a designated broker, bank or
nominee on your behalf, the Company will retain the shares purchased through exercise
of the Option in uncertificated book entry form.






	4.	 	Termination.






	 	(a)	 	If your Service with the Company ceases for any reason other than death, the
portion of the Option, if any, that is then unexercisable will terminate immediately
upon such cessation.
	 
	 	(b)	 	The Option, to the extent not earlier exercised or terminated, will terminate
and be of no force or effect upon the first occurrence of any one of the following
events:






	 	(i)	 	The expiration date set forth in the Notice;
	 
	 	(ii)	 	The expiration of 30 days after termination of your Service
with the Company, except in the case of your death or retirement. During such
30-day period, you will have the right to exercise the Option only to the
extent exercisable on the date of termination of your Service;
	 
	 	(iii)	 	The expiration of 13 months after the date of your retirement.
During such 13-month period, you will have the right to exercise the Option to
the extent the right to exercise it has accrued prior to your retirement but
has not been exercised prior to such retirement; or
	 
	 	(iv)	 	The expiration of 12 months after the date of your death if
said death occurs (i) while you are in the Service of the Company or (ii)
within the period of time after termination of Service due to retirement or otherwise




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	 	 	 	during which you were entitled to exercise the Option. During such 12-month
period your personal representative will have the right to exercise the Option
in full if you died while in the Service of the Company; otherwise your
personal representative will have the right to exercise the Option during such
12-month period to the extent that the right to exercise had accrued prior to
your termination of Service but had not been exercised prior to his death.






	 	(c)	 	Retirement at your normal retirement date or at an optional retirement date in
accordance with the provisions of a retirement plan of the Company under which you are
then covered shall constitute a retirement for the purposes of this Agreement.
Employment by the Company shall be deemed to include employment of you by, and to
continue during any period in which you are in the employ of any Participating Company.
If the entity with which you are employed ceases to be an entity in which the Company
maintains a proprietary interest by reason of stock ownership or otherwise, you will be
considered to have had a termination of employment for purposes of this Agreement upon
such cessation. Any determination made by the Committee with respect to any matter
referred to in this rule 5 shall be final and conclusive on all persons affected
thereby.






	5.	 	Non-Guarantee of Employment. Nothing in this Agreement shall alter your at-will or
other employment status with the Company, nor be construed as a contract of employment between
the Company and you, or as a contractual right of you to continue in the employ of the Company
for any period of time, or as a limitation of the right of the Company to discharge you at any
time with or without cause or notice and whether or not such discharge results in the
forfeiture of any portion of the Option or any other adverse effect on your interests under
the Plan or the Sub-Plan.
	 
	6.	 	Assignability. The Option is not transferable by you and is exercisable during your
lifetime only by you. No assignment or transfer of the Option, or of the rights represented
thereby, whether voluntary or involuntary, by operation of law or otherwise except on death
shall vest in the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer this Option the same shall terminate and be
of no force or effect.
	 
	7.	 	The Company’s Rights. The existence of an Option shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting
the T. Rowe Price Group common stock or the rights thereof, or the dissolution or liquidation
of the Company, or any sale or transfer of all or any part of its assets or business or any
other corporate act or proceeding, whether of a similar character or otherwise.
	 
	8.	 	Recapitalization. Subject to rule 28 of the Sub-Plan, providing approval has been
obtained from HM Revenue and Customs in advance, the shares with respect to which an Option is
granted are shares of the T. Rowe Price Group common stock as
constituted on the date of this Agreement, but if, and whenever, prior to the delivery by




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	 	 	the Company of all of the shares of T. Rowe Price Group common stock with respect to which
the Option is granted, the Company shall effect a subdivision or consolidation of shares, or
other capital readjustment, or other increase or decrease in the number of shares of T. Rowe
Price Group common stock outstanding, without receiving compensation therefore in money,
services or property, then (a) in the event of any increase in the number of such shares
outstanding, the number of shares of T. Rowe Price Group common stock then remaining subject
to the Option will be proportionately increased (except that any fraction of a share
resulting from any such adjustment will be excluded from the operation of this Agreement),
and the cash consideration payable per share will be proportionately reduced, and (b) in the
event of a reduction in the number of such shares outstanding, the number of shares of T.
Rowe Price Group common stock then remaining subject to the Option will be proportionately
reduced (except that any fractional share resulting from any such adjustment will be
excluded from the operation of this Agreement), and the cash consideration payable per share
will be proportionately increased.






	9.	 	Preemption of Applicable Laws or Regulations. Anything in this Agreement to the
contrary notwithstanding, if, at any time specified herein for the issue of shares to you any
law, regulation or requirements of any governmental authority having jurisdiction in the
premises shall require either the Company or you to take any action
in connection with the shares then to be issued, the issue of such shares will be deferred until such action shall
have been taken.
	 
	10.	 	No Rights as a Stockholder. You shall not have any of the rights of a stockholder
with respect to the shares of T. Rowe Price Group common stock subject to the Option until
such shares have been issued to you upon the due exercise of the Option. No adjustment will
be made for dividends or distributions or other rights for which the record date is prior to
the date such shares are issued to you.
	 
	11.	 	Amendments. Notwithstanding Section 7(c) of the Plan, no amendments to a Key Feature
of the Sub-Plan, whether taking the form of an amendment of the Plan or this schedule, shall
take effect until they have been approved by HM Revenue and Customs. Subject to this, the
Committee shall have the right, in its absolute and uncontrolled discretion, to alter or amend
this Agreement, from time to time in any manner for the purpose of promoting the objectives of
the Sub-Plan but only if all agreements granting options to purchase shares of T. Rowe Price
Group common stock pursuant to the Sub-Plan which is in effect and not wholly exercised at the
time of such alteration or amendment shall also be similarly altered or amended with
substantially the same effect, and any alteration or amendment of this Agreement by the
Committee shall, upon adoption thereof by the Committee, become and be binding and conclusive
on all persons affected thereby without requirement for consent or other action with respect
thereto by any such person. The Company shall give written notice to you of any such
alteration or amendment of this Agreement by the Committee as promptly as practical after the
adoption thereof. The foregoing shall not restrict the ability of you and the Company by
mutual consent to alter or amend this Agreement in any manner which is consistent with the
Sub-Plan and approved by the Committee and the Board of HM Revenue and Customs.




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	12.	 	Notice. All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or
mailed by certified mail, addressed to you at the address contained in the records of the
Company, or addressed to the Committee, care of the Company for the attention of its Payroll
and Stock Transaction Group in the CFO-Finance Department at the Company’s principal executive
office or, if the receiving party consents in advance, transmitted and received via telecopy
or via such other electronic transmission mechanism as may be available to the parties.
	 
	13.	 	Electronic Delivery of Documents. The Company may electronically deliver, via e-mail
or posting on the Company’s website, these Terms, information with respect to the Plan, the
Sub-Plan, or the Option, any amendments to the Agreement, and any reports of the Company
provided generally to the Company’s stockholders. You may receive from the Company, at no
cost to you, a paper copy of any electronically delivered documents by contacting the Payroll
and Stock Transaction Group in the CFO-Finance Department at BA-0372 in the Baltimore office
or by telephone, at extension 7716.
	 
	14.	 	Entire Agreement. This Agreement contains the entire agreement between the parties
with respect to the Option granted hereunder. Any oral or written agreements,
representations, warranties, written inducements, or other communications made prior to the
execution of the Notice correlating to these Terms with respect to the Option granted
hereunder shall be void and ineffective for all purposes.
	 
	15.	 	Non-Qualified Nature of the Option. The Option granted under this Agreement shall
not be treated as an “incentive stock option” within the meaning of United States Internal
Revenue Code section 422 unless so designated at the Date of Grant.
	 
	16.	 	Veto on Transfers of Shares. Any power to refuse to register transfers of shares of
T. Rowe Price Group common stock vested in the Board of Directors under the Company’s By-Laws
will not be exercised in such a way as to discriminate against persons participating in the
Sub-Plan.
	 
	17.	 	Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Committee relating to this Agreement, and the rights
of any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Maryland, without regard to
its provisions concerning the applicability of laws of other jurisdictions. Any suit with
respect hereto will be brought in the federal or state courts in the districts which include
Baltimore, Maryland, and you hereby agrees and submits to the personal jurisdiction and venue
thereof.
	 
	18.	 	Resolution of Disputes. Any dispute or disagreement which shall arise under, or as a
result of, or pursuant to, this Agreement shall be determined by the Committee in its absolute
and uncontrolled discretion, and any such determination or any other determination by the
Committee under or pursuant to this Agreement and any interpretation by the Committee of the
terms of this Agreement, will be final, binding and conclusive on all persons affected
thereby.




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	19.	 	No Future Entitlement. By execution of the Notice, you acknowledge and agree that:
(i) the grant of an Option is a one-time benefit which does not create any contractual or
other right to receive future grants of Options, or compensation in lieu of Options, even if
Options have been granted repeatedly in the past; (ii) all determinations with respect to any
such future grants, including, but not limited to, the times when Options shall be granted or
shall become exercisable, the maximum number of shares subject to each Option, and the
exercise price, will be at the sole discretion of the Committee; (iii) the value of the Option
is an extraordinary item of compensation which is outside the scope of your employment
contract, if any; (iv) the value of the Option is not part of normal or expected compensation
or salary for any purpose, including, but not limited to, calculating any termination,
severance, resignation, redundancy, end of service payments or similar payments, or bonuses,
long-service awards, pension or retirement benefits; (v) the vesting of the Option ceases upon
termination of Service with the Company or transfer of employment from the Company, or other
cessation of eligibility for any reason, except as may otherwise be explicitly provided this
Agreement; (vi) if the underlying stock does not increase in value, the Option will have no
value, nor does the Company guarantee any future value; and (vii) no claim or entitlement to
compensation or damages arises if the Option does not increase in value and you irrevocably
release the Company from any such claim that does arise.
	 
	20.	 	Personal Data. For the exclusive purpose of implementing, administering and managing
the Option, you, by execution of the Notice, consent to the collection, receipt, use,
retention and transfer, in electronic or other form, of your personal data by and among the
Company and its third party vendors. You understand that personal data (including but not
limited to, name, home address, telephone number, employee number, employment status, social
security number, tax identification number, date of birth, nationality, job and payroll
location, data for tax withholding purposes and shares awarded, cancelled, exercised, vested
and unvested) may be transferred to third parties assisting in the implementation,
administration and management of the Option and you expressly authorize such transfer as well
as the retention, use, and the subsequent transfer of the data by the recipient(s). You
understand that these recipients may be located in your country or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than your country.
You understand that data will be held only as long as is necessary to implement, administer
and manage the Option. You understand that you may, at any time, request a list with the
names and addresses of any potential recipients of the personal data, view data, request
additional information about the storage and processing of data, require any necessary
amendments to data or refuse or withdraw the consents herein, in any case without cost, by
contacting in writing the Company’s Payroll and Stock Transaction Group in the CFO-Finance
Department at BA-0372 in the Baltimore office. You understand, however, that refusing or
withdrawing your consent may affect your ability to accept an Option.
	 
	21.	 	Headings. The headings in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.





{Glossary begins on next page}




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GLOSSARY





	 	(a)	 	“Agreement” means the contract consisting of the Notice, the Terms, the Sub-Plan and
the Plan;
	 
	 	(b)	 	“Committee” means the Executive Compensation Committee of the Board of Directors of T.
Rowe Price Group, Inc. or such committee or committees appointed by the Board to administer
the Plan;
	 
	 	(c)	 	“Exercise Date” means the business day upon which you deliver to the Company the
Exercise Notice and payment of the aggregate exercise price for the shares specified
therein in accordance with the requirements of paragraph 3(a); provided that all of the
conditions of the Agreement are satisfied;
	 
	 	(d)	 	Exercise Notice” means the written notice, in such form as may be required from time to
time by the Committee, specifying the number of shares you desire to purchase under the
Option;
	 
	 	(e)	 	“Key Feature” means a provision of the Plan which is necessary in order to meet the
requirements of Schedule 4;
	 
	 	(f)	 	“Notice” means the Notice of Grant of Stock Options and Option Agreement which
correlates with these Terms and sets forth the specifics of the applicable Option grant;
	 
	 	(g)	 	“Participating Company” means a company participating in the Sub-Plan as defined in
rule 8 of the Sub-Plan;
	 
	 	(h)	 	“Plan” means the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan;
	 
	 	(i)	 	“Schedule 4” means Schedule 4 to ITEPA 2003;
	 
	 	(j)	 	“Service” means your employment with the Company or a Participating Company. Your
Service will be considered to have ceased with the Company and any Participating Company
if, immediately after a sale, merger or other corporate transaction, the trade, business or
entity with which you are employed is not T. Rowe Price Group, Inc. or a company under the
control of T. Rowe Price Group, Inc. For this purpose, control is defined in rule 7 of the
Sub-Plan; and
	 
	 	(k)	 	“Sub-Plan” means the HM Revenue and Customs Approved Sub-Plan for the UK created under
the Plan.





{end of document}





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