Document:

exv10w18

 

Exhibit 10.18

Forms of agreements

available for

stock-based awards

issued under the

T. Rowe Price Group, Inc.

2001 and 2004

Stock Incentive Plans

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T. ROWE PRICE GROUP, INC.

[2001] [2004] STOCK INCENTIVE PLAN

STATEMENT OF ADDITIONAL TERMS AND CONDITIONS

REGARDING OPTION GRANTS (INCENTIVE STOCK OPTIONS)

Effective: September 6, 2007

 

     This Statement of Additional Terms and Conditions Regarding the Option Grants (the “Terms”)
and all of the provisions of the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan (the “Plan”)
are incorporated into your grant of an incentive stock 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 Terms, the Plan, and the Notice, together, constitute a binding and enforceable
contract respecting your grant of an incentive stock option. That contract is referred to in this
document as the “Agreement.”

     1. Terminology. Capitalized words used in this document are defined in the Glossary
at the end of this document.

     2. Stock 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, your stock option will become exercisable in
installments, for the number of shares so specified, on the vesting dates set forth in the
correlating Notice.

         (b) The Committee may in its discretion accelerate the time at which the stock option may be
exercised.

         (c) To the extent not exercised, installments will accumulate and be exercisable by you, in
whole or in part, at any time before the stock option expires or is otherwise terminated.

         (d) No less than 100 shares of T. Rowe Price Group common stock may be purchased upon any one
exercise of the stock option unless the number of shares purchased at such time is the total number
of shares in respect of which the stock option is then exercisable.

         (e) In no event will the stock option be exercisable for a fractional share.

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

         (a) To exercise the stock option, you must deliver to the Company, from time to time, on any
business day after the stock 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 purchase price for the shares specified in the Exercise Notice. The purchase 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 purchase
price for the number of shares specified in the Exercise Notice, such payment to be
delivered with the Exercise Notice;

         (ii) unless limited by the Committee, by tender of shares of T. Rowe Price Group common
stock with a value (determined in accordance with paragraph 3(c)) equal to or less than the
aggregate purchase price plus 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
amount, if any, by which the aggregate purchase price exceeds the value of such shares of T. Rowe Price Group common
stock (determined in accordance with paragraph 3(c));

         (iii) by broker-assisted cashless exercise in accordance with procedures satisfactory
to the Committee; or

         (iv) by a combination of these methods.

In the case of payment in shares of T. Rowe Price Group common stock, such payment must be made by
no later than the end of the first business day after the Exercise Date, by delivery of the
necessary share certificates, with executed stock powers attached, or transfer instructions, in the
case of shares held in street name by a bank, broker, or other nominee, to the Company or by
attestation of ownership in a form satisfactory to the Company, and in each case coupled with
payment of any additional amount in cash or in one of the specified forms of acceptable cash
equivalents for the balance of the aggregate purchase price.

         (b) Within three business days after the Exercise Date and subject to the receipt of the
aggregate purchase 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 stock option shall be so exercised. Unless and until you request the Company to deliver a
share certificate to you, or deliver shares electronically or in certificate form to your
designated broker, bank or nominee on your behalf, the Company will retain the shares that you
purchased through exercise of the stock option in uncertificated book entry form.

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         (c) For purposes of paragraph 3(a), unless determined otherwise by the Committee in accordance
with the Plan, the value of shares of T. Rowe Price Group common stock tendered to exercise the
stock option will be the last-reported sale price of such shares on The NASDAQ Stock Market on the
Exercise Date, or, if the T. Rowe Price Group common stock is not quoted on The NASDAQ Stock Market
on the Exercise Date, as otherwise determined by the Committee in accordance with the Plan.

         (d) The Committee may in its discretion place limitations on the extent to which shares of T.
Rowe Price Group common stock may be tendered by you as payment of the purchase price pursuant to
paragraph 3(a) hereof. There are no provisions in this Agreement for the granting of a
replenishment option with respect to any shares of T. Rowe Price Group common stock tendered upon
the exercise of the stock option.

         (e) In the sole discretion of the Committee, the Company may in lieu of requiring the exercise
of the stock option and the payment of the aggregate purchase price, authorize the payment of cash
to you in an amount equal to the market value of shares of T. Rowe Price Group common stock subject
to the stock option less the aggregate purchase price in exchange for the cancellation of the stock
option.

     4. Exercisability Upon the Occurrence of Certain Events. Notwithstanding any
provisions limiting exercisability in whole or in part, and unless the Committee shall have
otherwise determined (within the limits specified in this paragraph) to revoke or to limit, in its
sole and conclusive discretion, the acceleration provided for herein, the stock option will become
exercisable in full immediately following the date on which the Committee no longer may revoke or
modify the acceleration contemplated by this paragraph and shall remain exercisable for a one-year
period thereafter. After the expiration of any such one-year period, the stock option shall remain
exercisable only to the extent, if any, provided in this Agreement without taking into
consideration the effect of this paragraph. The Committee’s discretion to revoke or limit the
acceleration contemplated by this paragraph may be exercised at any time before or within 20
business days after the Effective Date or the Approval Date, as applicable; provided,
however, that such discretion to revoke or limit the acceleration may not be exercised
after the persons who were directors of the Company immediately before the Transaction shall cease
to constitute a majority of the Board of Directors of the Company or any successor to the Company.
In the event the Approval Date and an Effective Date arise from substantially identical facts and
circumstances (as determined by the Committee in its sole discretion) and unless the Committee
shall have determined to limit the effect of this sentence, such one-year period (and the 20-day
period referred to in the immediately preceding sentence) shall commence only once and upon the
first to occur of the Approval Date or the Effective Date.

     5. Termination.

         (a) If your Service with the Company ceases for any reason other than death, the portion of
the stock option, if any, that is then unexercisable, after giving effect to any acceleration by
the Committee pursuant to paragraph 2(c), will terminate immediately upon such cessation.

         (b) The stock 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 with the consent of the Company. During such 30-day period,
you will have the right to exercise the stock 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 with the consent of the
Company. During such 13-month period you will have the right to exercise the stock option to the
extent the right to exercise it has accrued prior to your retirement but has not been exercised
prior to such retirement, subject, in addition, however, to acceleration by the Committee pursuant
to paragraph 2(c); or

         (iv) The expiration of 13 months after your date of death if you die (i) while you are in the
Service of the Company or (ii) within the period of time after your termination of Service due to
retirement or otherwise during which you were entitled to exercise the stock option. During such
13-month period your estate, personal representative or beneficiary will have the right to exercise
the stock option in full if you died while in the Service of the Company; otherwise your estate,
personal representative or beneficiary will have the right to exercise the stock option during such
13-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 your 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 will
constitute a retirement with the consent of the Company for the purposes of this Agreement. The
Committee has absolute and uncontrolled discretion to determine whether any other termination of
your employment is to be considered as retirement with the consent of the Company for the purposes
of this Agreement and whether an authorized leave of absence or absence on military or government
service or otherwise shall constitute a termination of employment for the purposes of this
Agreement. Employment by the Company will be deemed to include employment of you by, and to
continue during any period in which you are in the employ of, an Affiliate of the Company. Unless
determined otherwise by the Committee, if the Affiliate 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 paragraph 5 will be final and conclusive on all persons affected thereby.

     6. Non-Guarantee of Employment. Nothing in the Plan or 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 stock option or any other adverse effect on your interests under
the Plan.

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     7. Assignability. This stock option is not transferable by you otherwise than by will
or the laws of descent and distribution and is exercisable during your lifetime only by you. No
assignment or transfer of this stock option, or of the rights represented thereby, whether
voluntary or involuntary, by operation of law or otherwise, except by will or the laws of descent
and distribution, will vest in the assignee or transferee any interest or right herein whatsoever,
but immediately upon any attempt to assign or transfer this stock option the same will terminate
and be of no force or effect.

     8. The Company’s Rights. The existence of this stock option will 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 the Company’s assets or business or any
other corporate act or proceeding, whether of a similar character or otherwise.

     9. Recapitalization. The shares with respect to which this stock 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 the Company of all of the shares of T. Rowe Price
Group common stock with respect to which this stock option is granted, the Company shall effect a
subdivision or consolidation of shares, or other capital readjustment, or the payment of a stock
dividend, or other increase or decrease in the number of shares of T. Rowe Price Group common stock
outstanding, without receiving compensation therefor 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 this stock 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
this stock 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.

     10. Merger and Consolidation. After a merger of one or more corporations into the
Company, or after a consolidation of the Company and one or more corporations in which the Company
is the surviving or resulting corporation, you will, at no additional cost, be entitled upon any
exercise of this stock option, to receive (subject to any required action by stockholders) in lieu
of the number of shares as to which this stock option shall then be so exercised, the number and
class of shares of stock or other securities to which you would have been entitled pursuant to the
terms of the agreement of merger or consolidation, if, immediately prior to such merger or
consolidation, you had been the holder of record of a number of shares of T. Rowe Price Group
common stock equal to the number of shares as to which such stock option shall be so exercised;
provided, that anything herein contained to the contrary notwithstanding, upon the dissolution or
liquidation of the Company, or upon any merger or consolidation, in which the Company is not the
surviving or resulting corporation, this stock option will terminate and be of no force or effect,
except to the extent that such surviving or resulting corporation may issue a substituted option.

     11. 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.

     12. 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 stock option until
such shares have been issued to you upon the due exercise of the stock 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.

     13. Amendments. 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 Plan but only if all agreements granting options to purchase shares
of T. Rowe Price Group common stock pursuant to the Plan which are 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 will 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 Plan and approved by the Committee.

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     14. 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.

     15. 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 or
the stock 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.

     16. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the stock 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 stock option granted
hereunder shall be void and ineffective for all purposes.

     17. Provisions Concerning Incentive Stock Options.

           (a) Qualified Nature of the Option. This stock option is intended to qualify as an
incentive stock option within the meaning of Internal Revenue Code section 422 (“Incentive Stock
Option”), to the fullest extent permitted under Internal Revenue Code section 422, and this
Agreement shall be so construed. The Company, however, does not warrant any particular tax
consequences of the stock option. The aggregate fair market value (determined as of the effective
date of this grant) of shares of stock with respect to which all Incentive Stock Options first
become exercisable by you in any calendar year under the Plan or any other plan of the Company (and
its parent and subsidiary corporations, as may exist from time to time) may not exceed $100,000 or
such other amount as may be permitted from time to time under Internal Revenue Code section 422.
To the extent that such aggregate fair market value shall exceed $100,000 or other applicable
amount in any calendar year, such stock options shall be treated as nonstatutory stock options with
respect to the amount of aggregate fair market value thereof that exceeds the Internal Revenue Code
section 422 limit. For this purpose, the Incentive Stock Options will be taken into account in the
order in which they were granted. In such case, the Company may designate the shares of stock that
are to be treated as stock acquired pursuant to the exercise of an Incentive Stock Option and the
shares of stock that are to be treated as stock acquired pursuant to a nonstatutory stock option by
issuing separate certificates for such shares and identifying the certificates as such in the stock
transfer records of the Company or by any other appropriate notation in the records of the Company.

     Except with respect to exercise after your death or disability, at all times during the period
beginning with the date of the granting of an Incentive Stock Option and ending on the day three
months before the date of such exercise, you must be an employee of the Company or a subsidiary, as
that term is defined in Internal Revenue Code section 424(f), in order for such option to qualify
as an Incentive Stock Option. Therefore, in the event that you retire with the consent of the
Company, as provided in paragraph 5 hereof, any part of the Incentive Stock Option which is not
exercised within three months of such termination will be exercisable as a nonstatutory stock
option for the remainder of the thirteen-month exercise period. Similarly, if the entity with
which you are employed ceases to be a subsidiary of the Company, as that term is defined in
Internal Revenue Code section 424(f), then the stock option will be treated as a nonstatutory stock
option unless exercised within three months of such cessation.

           (b) Notice of Disqualifying Disposition. If you make a disposition (as that term is
defined in Internal Revenue Code section 424(c)) of any shares of stock acquired pursuant to this
stock option within two years of the date of grant or within one year after the shares are issued
to you, you must notify the Company of such disposition in writing within 30 days of the
disposition.

     18. Withholding of Taxes.

           (a) At the time the stock option is exercised, in whole or in part, or at any time thereafter
as requested by the Company, you hereby authorize withholding from payroll or any other payment of
any kind due you and otherwise agree to make adequate provision for foreign, federal, state and
local taxes required by law to be withheld, if any, which arise in connection with the stock
option. The Company may require you to make a cash payment to cover any withholding tax obligation
as a condition of exercise of the stock option. If you do not make such payment when requested,
the Company may refuse to issue any stock or stock certificate under the Plan until arrangements
satisfactory to the Company for such payment have been made.

           (b) The Company may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the stock option either by electing
to have the Company withhold from the shares to be issued upon exercise that number of shares, or
by electing to deliver to the Company already-owned shares, in either case having a fair market
value equal to no more than the amount necessary to satisfy the statutory minimum withholding
amount due.

     19. Conformity with Plan. These Terms are intended to conform in all respects with,
and are subject to all applicable provisions of, the Plan. Except as may be necessary to give
effect to the amendment provisions of paragraph 13 of these Terms, any inconsistencies between
these Terms and the Plan shall be resolved in accordance with the terms of the Plan. In the event
of any ambiguity in these Terms or any matters as to which these Terms are silent, the Plan shall
govern. A copy of the Plan is available at https://www2.troweprice.com/options or in hard copy
upon request to the Company’s Payroll and Stock Transaction Group in the CFO-Finance Department at
BA-0372 in the Baltimore office or by telephone, at extension 7716.

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     20. 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 agree and submit to the personal jurisdiction and venue thereof.

     21. 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.

     22. No Future Entitlement. By execution of the Notice, you acknowledge and agree
that: (i) the grant of a stock option is a one-time benefit which does not create any contractual
or other right to receive future grants of stock options, or compensation in lieu of stock options,
even if stock 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 stock options
shall be granted or shall become exercisable, the maximum number of shares subject to each stock
option, and the purchase price, will be at the sole discretion of the Committee; (iii) the value of
the stock option is an extraordinary item of compensation which is outside the scope of your
employment contract, if any; (iv) the value of the stock 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 stock 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, this stock 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 stock option does not increase in value and you irrevocably
release the Company from any such claim that does arise.

     23. Personal Data. For the exclusive purpose of implementing, administering and
managing the stock 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 stock 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 stock 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 a stock option.

     24. 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) "Affiliate” means any entity, whether now or hereafter existing, in which the Company has
a proprietary interest by reason of stock ownership or otherwise (including, but not limited to,
joint ventures, limited liability companies, and partnerships) or any entity that provides services
to the Company or a subsidiary or affiliated entity of the Company.

     (b) "Agreement” means the contract consisting of the Notice, the Terms and the Plan.

     (c) "Approval Date” means the date of the approval of the Company’s Board of Directors of an
agreement providing for an exchange offer, merger, consolidation or other business combination,
sale or disposition of all or substantially all of the assets of the Company, or any combination of
the foregoing transactions as a result of the consummation of which the persons who were directors
of the Company immediately before the transaction shall cease to constitute a majority of the Board
of Directors of the Company or any successor to the Company or the persons who were stockholders of
the Company immediately before the Approval Date will own less than a majority of the outstanding
voting stock of the Company or any successor to the Company.

     (d) "Change of Control”. A “Change of Control” shall be deemed to have taken place on the
date of the earlier to occur of either of the following events: (i) a third party, including a
“group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the
beneficial owner of 25% or more of the Company’s outstanding common stock, or (ii) as the result
of, or in connection with, any cash tender or exchange offer, merger, consolidation or other
business combination, sale or disposition of all or substantially all of the Company’s assets, or
contested election, or any combination of the foregoing transactions (a “Transaction”), the persons
who were directors of the Company immediately before the Transaction shall cease to constitute a
majority of the Board of Directors of the Company or any successor to the Company or the persons
who were stockholders of the Company immediately before the Transaction shall cease to own at least
a majority of the outstanding voting stock of the Company or any successor to the Company.

     (e) "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.

     (f) "Company” means T. Rowe Price Group, Inc. and its Affiliates, except where the context
otherwise requires. For purposes of determining whether a Change of Control has occurred, Company
shall mean only T. Rowe Price Group, Inc.

     (g) "Effective Date” means the date on which a Change of Control occurs. Anything in this
Agreement to the contrary notwithstanding, if a Change of Control occurs, and if your Service had
terminated prior to the date on which the Change of Control occurred, and if it is reasonably
demonstrated by you that such termination of Service either was at the request of a third party who
had taken steps reasonably calculated to effect the Change of Control or otherwise arose in
connection with or in anticipation of the Change of Control, then, for all purposes of this
Agreement, the term “Effective Date” shall mean the date immediately prior to the date of such
termination of Service.

     (h) "Exercise Date” means the business day upon which you deliver to the Company the Exercise
Notice and payment of the aggregate purchase 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.

     (i) "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 stock
option.

     (j) "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 stock option grant.

     (k) "Plan” means the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan.

     (l) "Service” means your employment with the Company or any of its Affiliates. Your Service
will be considered to have ceased with the Company and its Affiliates 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 an Affiliate of T. Rowe Price Group, Inc.

     (m) "You”; “Your”. You means the recipient of the stock option as reflected in the Notice.
Whenever the word “you” or “your” is used in any provision of this Agreement under circumstances
where the provision should logically be construed, as determined by the Committee, to apply to the
estate, personal representative, or beneficiary to whom the stock option may be transferred by will
or by the laws of descent and distribution or otherwise pursuant to the terms of this Agreement,
the words “you” and “your” shall be deemed to include such person.

{end of document}

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T. ROWE PRICE GROUP, INC.

[2001] [2004] STOCK INCENTIVE PLAN

STATEMENT OF ADDITIONAL TERMS AND CONDITIONS

REGARDING OPTION GRANTS (NON-QUALIFIED OPTIONS)

Effective: September 6, 2007

 

     This Statement of Additional Terms and Conditions Regarding the Option Grants (the “Terms”)
and all of the provisions of the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan (the “Plan”)
are incorporated into your grant of a non-qualified stock 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 Terms, the Plan, and the Notice, together, constitute a binding and
enforceable contract respecting your grant of a non-qualified stock option. That contract is
referred to in this document as the “Agreement.”

     1. Terminology. Capitalized words used in this document are defined in the Glossary
at the end of this document.

     2. Stock 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, your stock option will become exercisable in
installments, for the number of shares so specified, on the vesting dates set forth in the
correlating Notice.

         (b) The Committee may in its discretion accelerate the time at which the stock option may be
exercised.

         (c) To the extent not exercised, installments will accumulate and be exercisable by you, in
whole or in part, at any time before the stock option expires or is otherwise terminated.

         (d) No less than 100 shares of T. Rowe Price Group common stock may be purchased upon any one
exercise of the stock option unless the number of shares purchased at such time is the total number
of shares in respect of which the stock option is then exercisable.

         (e) In no event will the stock option be exercisable for a fractional share.

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

         (a) To exercise the stock option, you must deliver to the Company, from time to time, on any
business day after the stock 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 purchase price for the shares specified in the Exercise Notice. The purchase 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 purchase
price for the number of shares specified in the Exercise Notice, such payment to be
delivered with the Exercise Notice;

         (ii) unless limited by the Committee, by tender of shares of T. Rowe Price Group common
stock with a value (determined in accordance with paragraph 3(c)) equal to or less than the
aggregate purchase price plus 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
amount, if any, by which the aggregate purchase price exceeds the value of such shares of T. Rowe Price Group common
stock (determined in accordance with paragraph 3(c));

         (iii) by broker-assisted cashless exercise in accordance with procedures satisfactory
to the Committee; or

         (iv) by a combination of these methods.

In the case of payment in shares of T. Rowe Price Group common stock, such payment must be made by
no later than the end of the first business day after the Exercise Date, by delivery of the
necessary share certificates, with executed stock powers attached, or transfer instructions, in the
case of shares held in street name by a bank, broker, or other nominee, to the Company or by
attestation of ownership in a form satisfactory to the Company, and in each case coupled with
payment of any additional amount in cash or in one of the specified forms of acceptable cash
equivalents for the balance of the aggregate purchase price.

         (b) Within three business days after the Exercise Date and subject to the receipt of the
aggregate purchase 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 stock option shall be so exercised. Unless and until you request the Company to deliver a
share certificate to you, or deliver shares electronically or in certificate form to your
designated broker, bank or nominee on your behalf, the Company will retain the shares that you
purchased through exercise of the stock option in uncertificated book entry form.

-1-

 

         (c) For purposes of paragraph 3(a), unless determined otherwise by the Committee in accordance
with the Plan, the value of shares of T. Rowe Price Group common stock tendered to exercise the
stock option will be the last-reported sale price of such shares on The NASDAQ Stock Market on the
Exercise Date, or, if the T. Rowe Price Group common stock is not quoted on The NASDAQ Stock Market
on the Exercise Date, as otherwise determined by the Committee in accordance with the Plan.

         (d) The Committee may in its discretion place limitations on the extent to which shares of T.
Rowe Price Group common stock may be tendered by you as payment of the purchase price pursuant to
paragraph 3(a) hereof. There are no provisions in this Agreement for the granting of a
replenishment option with respect to any shares of T. Rowe Price Group common stock tendered upon
the exercise of the stock option.

         (e) In the sole discretion of the Committee, the Company may in lieu of requiring the exercise
of the stock option and the payment of the aggregate purchase price, authorize the payment of cash
to you in an amount equal to the market value of shares of T. Rowe Price Group common stock subject
to the stock option less the aggregate purchase price in exchange for the cancellation of the stock
option.

     4. Exercisability Upon the Occurrence of Certain Events. Notwithstanding any
provisions limiting exercisability in whole or in part, and unless the Committee shall have
otherwise determined (within the limits specified in this paragraph) to revoke or to limit, in its
sole and conclusive discretion, the acceleration provided for herein, the stock option will become
exercisable in full immediately following the date on which the Committee no longer may revoke or
modify the acceleration contemplated by this paragraph and shall remain exercisable for a one-year
period thereafter. After the expiration of any such one-year period, the stock option shall remain
exercisable only to the extent, if any, provided in this Agreement without taking into
consideration the effect of this paragraph. The Committee’s discretion to revoke or limit the
acceleration contemplated by this paragraph may be exercised at any time before or within 20
business days after the Effective Date or the Approval Date, as applicable; provided,
however, that such discretion to revoke or limit the acceleration may not be exercised
after the persons who were directors of the Company immediately before the Transaction shall cease
to constitute a majority of the Board of Directors of the Company or any successor to the Company.
In the event the Approval Date and an Effective Date arise from substantially identical facts and
circumstances (as determined by the Committee in its sole discretion) and unless the Committee
shall have determined to limit the effect of this sentence, such one-year period (and the 20-day
period referred to in the immediately preceding sentence) shall commence only once and upon the
first to occur of the Approval Date or the Effective Date.

     5. Termination.

         (a) If your Service with the Company ceases for any reason other than death, the portion of
the stock option, if any, that is then unexercisable, after giving effect to any acceleration by
the Committee pursuant to paragraph 2(c), will terminate immediately upon such cessation.

         (b) The stock 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 with the consent of the Company. During such 30-day period,
you will have the right to exercise the stock 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 with the consent of the
Company. During such 13-month period you will have the right to exercise the stock option to the
extent the right to exercise it has accrued prior to your retirement but has not been exercised
prior to such retirement, subject, in addition, however, to acceleration by the Committee pursuant
to paragraph 2(c); or

         (iv) The expiration of 13 months after your date of death if you die (i) while you are in the
Service of the Company or (ii) within the period of time after your termination of Service due to
retirement or otherwise during which you were entitled to exercise the stock option. During such
13-month period your estate, personal representative or beneficiary will have the right to exercise
the stock option in full if you died while in the Service of the Company; otherwise your estate,
personal representative or beneficiary will have the right to exercise the stock option during such
13-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 your 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 will
constitute a retirement with the consent of the Company for the purposes of this Agreement. The
Committee has absolute and uncontrolled discretion to determine whether any other termination of
your employment is to be considered as retirement with the consent of the Company for the purposes
of this Agreement and whether an authorized leave of absence or absence on military or government
service or otherwise shall constitute a termination of employment for the purposes of this
Agreement. Employment by the Company will be deemed to include employment of you by, and to
continue during any period in which you are in the employ of, an Affiliate of the Company. Unless
determined otherwise by the Committee, if the Affiliate 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 paragraph 5 will be final and conclusive on all persons affected thereby.

     6. Non-Guarantee of Employment. Nothing in the Plan or 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 stock option or any other adverse effect on your interests under
the Plan.

-2-

 

     7. Assignability. Unless the Committee determines otherwise, you may not transfer
this stock option except by will or under the laws of descent and distribution, and only you or
your legal representative may exercise this stock option during your lifetime. With the exception
of a transfer by will, by the laws of descent and distribution or with express advance consent of
the Committee, no assignment or transfer of this stock option, or the rights represented thereby,
whether voluntary or involuntary, by operation of law or otherwise, shall vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon any
attempt to assign or transfer this stock option the same shall terminate and be of no force or
effect.

     8. The Company’s Rights. The existence of this stock option will 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 the Company’s assets or business or any
other corporate act or proceeding, whether of a similar character or otherwise.

     9. Recapitalization. The shares with respect to which this stock 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 the Company of all of the shares of T. Rowe Price
Group common stock with respect to which this stock option is granted, the Company shall effect a
subdivision or consolidation of shares, or other capital readjustment, or the payment of a stock
dividend, or other increase or decrease in the number of shares of T. Rowe Price Group common stock
outstanding, without receiving compensation therefor 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 this stock 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
this stock 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.

     10. Merger and Consolidation. After a merger of one or more corporations into the
Company, or after a consolidation of the Company and one or more corporations in which the Company
is the surviving or resulting corporation, you will, at no additional cost, be entitled upon any
exercise of this stock option, to receive (subject to any required action by stockholders) in lieu
of the number of shares as to which this stock option shall then be so exercised, the number and
class of shares of stock or other securities to which you would have been entitled pursuant to the
terms of the agreement of merger or consolidation, if, immediately prior to such merger or
consolidation, you had been the holder of record of a number of shares of T. Rowe Price Group
common stock equal to the number of shares as to which such stock option shall be so exercised;
provided, that anything herein contained to the contrary notwithstanding, upon the dissolution or
liquidation of the Company, or upon any merger or consolidation, in which the Company is not the
surviving or resulting corporation, this stock option will terminate and be of no force or effect,
except to the extent that such surviving or resulting corporation may issue a substituted option.

     11. 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.

     12. 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 stock option until
such shares have been issued to you upon the due exercise of the stock 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.

     13. Amendments. 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 Plan but only if all agreements granting options to purchase shares
of T. Rowe Price Group common stock pursuant to the Plan which are 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 will 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 Plan and approved by the Committee.

     14. 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.

     15. 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 or
the stock 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.

-3-

 

     16. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the stock 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 stock option granted
hereunder shall be void and ineffective for all purposes.

     17. Non-Qualified Nature of the Option.

     The stock option granted under this Agreement shall not be treated as an incentive stock
option within the meaning of Internal Revenue Code section 422.

     18. Withholding of Taxes.

           (a) At the time the stock option is exercised, in whole or in part, or at any time thereafter
as requested by the Company, you hereby authorize withholding from payroll or any other payment of
any kind due you and otherwise agree to make adequate provision for foreign, federal, state and
local taxes required by law to be withheld, if any, which arise in connection with the stock
option. The Company may require you to make a cash payment to cover any withholding tax obligation
as a condition of exercise of the stock option. If you do not make such payment when requested,
the Company may refuse to issue any stock or stock certificate under the Plan until arrangements
satisfactory to the Company for such payment have been made.

           (b) The Company may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the stock option either by electing
to have the Company withhold from the shares to be issued upon exercise that number of shares, or
by electing to deliver to the Company already-owned shares, in either case having a fair market
value equal to no more than the amount necessary to satisfy the statutory minimum withholding
amount due.

     19. Conformity with Plan. These Terms are intended to conform in all respects with,
and are subject to all applicable provisions of, the Plan. Except as may be necessary to give
effect to the amendment provisions of paragraph 13 of these Terms, any inconsistencies between
these Terms and the Plan shall be resolved in accordance with the terms of the Plan. In the event
of any ambiguity in these Terms or any matters as to which these Terms are silent, the Plan shall
govern. A copy of the Plan is available at https://www2.troweprice.com/options or in hard copy
upon request to the Company’s Payroll and Stock Transaction Group in the CFO-Finance Department at
BA-0372 in the Baltimore office or by telephone, at extension 7716.

     20. 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
agree and submit to the personal jurisdiction and venue thereof.

     21. 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.

     22. No Future Entitlement. By execution of the Notice, you acknowledge and agree
that: (i) the grant of a stock option is a one-time benefit which does not create any contractual
or other right to receive future grants of stock options, or compensation in lieu of stock options,
even if stock 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 stock options
shall be granted or shall become exercisable, the maximum number of shares subject to each stock
option, and the purchase price, will be at the sole discretion of the Committee; (iii) the value of
the stock option is an extraordinary item of compensation which is outside the scope of your
employment contract, if any; (iv) the value of the stock 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 stock 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, this stock 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 stock option does not increase in value and you irrevocably
release the Company from any such claim that does arise.

     23. Personal Data. For the exclusive purpose of implementing, administering and
managing the stock 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
stock 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 stock 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 a stock option.

     24. 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}

-4-

 

GLOSSARY

     (a) "Affiliate” means any entity, whether now or hereafter existing, in which the Company has
a proprietary interest by reason of stock ownership or otherwise (including, but not limited to,
joint ventures, limited liability companies, and partnerships) or any entity that provides services
to the Company or a subsidiary or affiliated entity of the Company.

     (b) "Agreement” means the contract consisting of the Notice, the Terms and the Plan.

     (c) "Approval Date” means the date of the approval of the Company’s Board of Directors of an
agreement providing for an exchange offer, merger, consolidation or other business combination,
sale or disposition of all or substantially all of the assets of the Company, or any combination of
the foregoing transactions as a result of the consummation of which the persons who were directors
of the Company immediately before the transaction shall cease to constitute a majority of the Board
of Directors of the Company or any successor to the Company or the persons who were stockholders of
the Company immediately before the Approval Date will own less than a majority of the outstanding
voting stock of the Company or any successor to the Company.

     (d) "Change of Control”. A “Change of Control” shall be deemed to have taken place on the
date of the earlier to occur of either of the following events: (i) a third party, including a
“group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the
beneficial owner of 25% or more of the Company’s outstanding common stock, or (ii) as the result
of, or in connection with, any cash tender or exchange offer, merger, consolidation or other
business combination, sale or disposition of all or substantially all of the Company’s assets, or
contested election, or any combination of the foregoing transactions (a “Transaction”), the persons
who were directors of the Company immediately before the Transaction shall cease to constitute a
majority of the Board of Directors of the Company or any successor to the Company or the persons
who were stockholders of the Company immediately before the Transaction shall cease to own at least
a majority of the outstanding voting stock of the Company or any successor to the Company.

     (e) "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.

     (f) "Company” means T. Rowe Price Group, Inc. and its Affiliates, except where the context
otherwise requires. For purposes of determining whether a Change of Control has occurred, Company
shall mean only T. Rowe Price Group, Inc.

     (g) "Effective Date” means the date on which a Change of Control occurs. Anything in this
Agreement to the contrary notwithstanding, if a Change of Control occurs, and if your Service had
terminated prior to the date on which the Change of Control occurred, and if it is reasonably
demonstrated by you that such termination of Service either was at the request of a third party who
had taken steps reasonably calculated to effect the Change of Control or otherwise arose in
connection with or in anticipation of the Change of Control, then, for all purposes of this
Agreement, the term “Effective Date” shall mean the date immediately prior to the date of such
termination of Service.

     (h) "Exercise Date” means the business day upon which you deliver to the Company the Exercise
Notice and payment of the aggregate purchase 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.

     (i) "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 stock
option.

     (j) "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 stock option grant.

     (k) "Plan” means the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan.

     (l) "Service” means your employment with the Company or any of its Affiliates. Your Service
will be considered to have ceased with the Company and its Affiliates 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 an Affiliate of T. Rowe Price Group, Inc.

     (m) "You”; “Your”. You means the recipient of the stock option as reflected in the Notice.
Whenever the word “you” or “your” is used in any provision of this Agreement under circumstances
where the provision should logically be construed, as determined by the Committee, to apply to the
estate, personal representative, or beneficiary to whom the stock option may be transferred by will
or by the laws of descent and distribution or otherwise pursuant to the terms of this Agreement,
the words “you” and “your” shall be deemed to include such person.

{end of document}

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T. ROWE PRICE GROUP, INC.

[2004] STOCK INCENTIVE PLAN

STATEMENT OF ADDITIONAL TERMS AND CONDITIONS

REGARDING REPLENISHMENT OPTION GRANTS

(EMPLOYEES)

Effective: September 6, 2007

 

     This Statement of Additional Terms and Conditions Regarding Replenishment Option Grants (the
"Terms”) and all of the provisions of the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan (the
"Plan”) are incorporated into your grant of a non-qualified stock option, the specifics of which
are described on the “Notice of Grant of Replenishment 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 Terms, the Plan, and the Notice, together, constitute a
binding and enforceable contract respecting your grant of a non-qualified stock option. That
contract is referred to in this document as the “Agreement.”

     1. Terminology. Capitalized words used in this document are defined in the Glossary
at the end of this document.

     2. Stock Option Exercise Rights.

         (a) This stock option is immediately exercisable in full and may be exercised by you, in whole
or in part, at any time before the stock option expires or is otherwise terminated.

         (b) No less than 100 shares of T. Rowe Price Group common stock may be purchased upon any one
exercise of the stock option unless the number of shares purchased at such time is the total number
of shares in respect of which the stock option is then exercisable.

         (c) In no event will the stock option be exercisable for a fractional share.

         (d) In no event will any additional replenishment options be granted upon the exercise of this
stock option.

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

         (a) To exercise the stock option, you must deliver to the Company, from time to time, on any
business day after the stock 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 purchase price for the shares specified in the Exercise Notice. The purchase 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 purchase
price for the number of shares specified in the Exercise Notice, such payment to be
delivered with the Exercise Notice;

         (ii) unless limited by the Committee, by tender of shares of T. Rowe Price Group common
stock with a value (determined in accordance with paragraph 3(c)) equal to or less than the
aggregate purchase price plus 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
amount, if any, by which the aggregate purchase price exceeds the value of such shares of T. Rowe Price Group common
stock (determined in accordance with paragraph 3(c));

         (iii) by broker-assisted cashless exercise in accordance with procedures satisfactory
to the Committee; or

         (iv) by a combination of these methods.

In the case of payment in shares of T. Rowe Price Group common stock, such payment must be made by
no later than the end of the first business day after the Exercise Date, by delivery of the
necessary share certificates, with executed stock powers attached, or transfer instructions, in the
case of shares held in street name by a bank, broker, or other nominee, to the Company or by
attestation of ownership in a form satisfactory to the Company, and in each case coupled with
payment of any additional amount in cash or in one of the specified forms of acceptable cash
equivalents for the balance of the aggregate purchase price.

         (b) Within three business days after the Exercise Date and subject to the receipt of the
aggregate purchase 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 stock option shall be so exercised. Unless and until you request the Company to deliver a
share certificate to you, or deliver shares electronically or in certificate form to your
designated broker, bank or nominee on your behalf, the Company will retain the shares that you
purchased through exercise of the stock option in uncertificated book entry form.

-1-

 

         (c) For purposes of paragraph 3(a), unless determined otherwise by the Committee in accordance
with the Plan, the value of shares of T. Rowe Price Group common stock tendered to exercise the
stock option will be the last-reported sale price of such shares on The NASDAQ Stock Market on the
Exercise Date, or, if the T. Rowe Price Group common stock is not quoted on The NASDAQ Stock Market
on the Exercise Date, as otherwise determined by the Committee in accordance with the Plan.

         (d) The Committee may in its discretion place limitations on the extent to which shares of T.
Rowe Price Group common stock may be tendered by you as payment of the purchase price pursuant to
paragraph 3(a) hereof. There are no provisions in this Agreement for the granting of a
replenishment option with respect to any shares of T. Rowe Price Group common stock tendered upon
the exercise of the stock option.

         (e) In the sole discretion of the Committee, the Company may in lieu of requiring the exercise
of the stock option and the payment of the aggregate purchase price, authorize the payment of cash
to you in an amount equal to the market value of shares of T. Rowe Price Group common stock subject
to the stock option less the aggregate purchase price in exchange for the cancellation of the stock
option.

     4. Termination.

         (a) The stock 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 with the consent of the Company;

         (iii) The expiration of 13 months after the date of your retirement with the consent of the
Company; or

         (iv) The expiration of 13 months after your date of death if you die (i) while you are in the
Service of the Company or (ii) within the period of time after your termination of Service due to
retirement or otherwise during which you were entitled to exercise the stock option.

         (b) 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 will
constitute a retirement with the consent of the Company for the purposes of this Agreement. The
Committee has absolute and uncontrolled discretion to determine whether any other termination of
your employment is to be considered as retirement with the consent of the Company for the purposes
of this Agreement and whether an authorized leave of absence or absence on military or government
service or otherwise shall constitute a termination of employment for the purposes of this
Agreement. Employment by the Company will be deemed to include employment of you by, and to
continue during any period in which you are in the employ of, an Affiliate of the Company. Unless
determined otherwise by the Committee, if the Affiliate 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 paragraph 4 will be final and conclusive on all persons affected thereby.

     5. Non-Guarantee of Employment. Nothing in the Plan or 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 stock option or any other adverse effect on your interests under
the Plan.

     6. Assignability. Unless the Committee determines otherwise, you may not transfer
this stock option except by will or under the laws of descent and distribution, and only you or
your legal representative may exercise this stock option during your lifetime. With the exception
of a transfer by will, by the laws of descent and distribution or with express advance consent of
the Committee, no assignment or transfer of this stock option, or the rights represented thereby,
whether voluntary or involuntary, by operation of law or otherwise, shall vest in the assignee or
transferee any interest or right herein whatsoever, but immediately upon any attempt to assign or
transfer this stock option the same shall terminate and be of no force or effect.

     7. The Company’s Rights. The existence of this stock option will 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 the Company’s assets or business or any
other corporate act or proceeding, whether of a similar character or otherwise.

     8. Recapitalization. The shares with respect to which this stock 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 the Company of all of the shares of T. Rowe Price
Group common stock with respect to which this stock option is granted, the Company shall effect a
subdivision or consolidation of shares, or other capital readjustment, or the payment of a stock
dividend, or other increase or decrease in the number of shares of T. Rowe Price Group common stock
outstanding, without receiving compensation therefor 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 this stock 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
this stock 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.

-2-

 

     9. Merger and Consolidation. After a merger of one or more corporations into the
Company, or after a consolidation of the Company and one or more corporations in which the Company
is the surviving or resulting corporation, you will, at no additional cost, be entitled upon any
exercise of this stock option, to receive (subject to any required action by stockholders) in lieu
of the number of shares as to which this stock option shall then be so exercised, the number and class of shares of stock or other securities to which you would have
been entitled pursuant to the terms of the agreement of merger or consolidation, if, immediately
prior to such merger or consolidation, you had been the holder of record of a number of shares of
T. Rowe Price Group common stock equal to the number of shares as to which such stock option shall
be so exercised; provided, that anything herein contained to the contrary notwithstanding, upon the
dissolution or liquidation of the Company, or upon any merger or consolidation, in which the
Company is not the surviving or resulting corporation, this stock option will terminate and be of
no force or effect, except to the extent that such surviving or resulting corporation may issue a
substituted option.

     10. 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.

     11. 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 stock option until
such shares have been issued to you upon the due exercise of the stock 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.

     12. Amendments. 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 Plan but only if all agreements granting options to purchase shares
of T. Rowe Price Group common stock pursuant to the Plan which are 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 will 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 Plan and approved by the Committee.

     13. 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.

     14. 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 or
the stock 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.

     15. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the stock 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 stock option granted
hereunder shall be void and ineffective for all purposes.

     16. Non-Qualified Nature of the Option.

           The stock option granted under this Agreement shall not be treated as an incentive stock
option within the meaning of Internal Revenue Code section 422.

     17. Withholding of Taxes.

           (a) At the time the stock option is exercised, in whole or in part, or at any time thereafter
as requested by the Company, you hereby authorize withholding from payroll or any other payment of
any kind due you and otherwise agree to make adequate provision for foreign, federal, state and
local taxes required by law to be withheld, if any, which arise in connection with the stock
option. The Company may require you to make a cash payment to cover any withholding tax obligation
as a condition of exercise of the stock option. If you do not make such payment when requested,
the Company may refuse to issue any stock or stock certificate under the Plan until arrangements
satisfactory to the Company for such payment have been made.

           (b) The Company may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the stock option either by electing
to have the Company withhold from the shares to be issued upon exercise that number of shares, or
by electing to deliver to the Company already-owned shares, in either case having a fair market
value equal to no more than the amount necessary to satisfy the statutory minimum withholding
amount due.

     18. Conformity with Plan. These Terms are intended to conform in all respects with,
and are subject to all applicable provisions of, the Plan. Except as may be necessary to give
effect to the amendment provisions of paragraph 12 of these Terms, any inconsistencies between
these Terms and the Plan shall be resolved in accordance with the terms of the Plan. In the event
of any ambiguity in these Terms or any matters as to which these Terms are silent, the Plan shall
govern. A copy of the Plan is available at https://www2.troweprice.com/options or in hard copy
upon request to the Company’s Payroll and Stock Transaction Group in the CFO-Finance Department at
BA-0372 in the Baltimore office or by telephone, at extension 7716.

-3-

 

     19. 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 agree and submit to the personal jurisdiction and venue thereof.

     20. 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.

     21. No Future Entitlement. By execution of the Notice, you acknowledge and agree
that: (i) the grant of a stock option is a one-time benefit which does not create any contractual
or other right to receive future grants of stock options, or compensation in lieu of stock options,
even if stock 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 stock options
shall be granted or shall become exercisable, the maximum number of shares subject to each stock
option, and the purchase price, will be at the sole discretion of the Committee; (iii) the value of
the stock option is an extraordinary item of compensation which is outside the scope of your
employment contract, if any; (iv) the value of the stock 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) if the underlying stock does not increase
in value, this stock option will have no value, nor does the Company guarantee any future value;
and (vi) no claim or entitlement to compensation or damages arises if the stock option does not
increase in value and you irrevocably release the Company from any such claim that does arise.

     22. Personal Data. For the exclusive purpose of implementing, administering and
managing the stock 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
stock 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 stock 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 a stock option.

     23. 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}

-4-

 

GLOSSARY

     (a) "Affiliate” means any entity, whether now or hereafter existing, in which the Company has
a proprietary interest by reason of stock ownership or otherwise (including, but not limited to,
joint ventures, limited liability companies, and partnerships) or any entity that provides services
to the Company or a subsidiary or affiliated entity of the Company.

     (b) "Agreement” means the contract consisting of the Notice, the Terms and the Plan.

     (c) "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.

     (d) "Company” means T. Rowe Price Group, Inc. and its Affiliates, except where the context
otherwise requires.

     (e) "Exercise Date” means the business day upon which you deliver to the Company the Exercise
Notice and payment of the aggregate purchase 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.

     (f) "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 stock
option.

     (g) "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 stock option grant.

     (h) "Plan” means the T. Rowe Price Group, Inc. 2004 Stock Incentive Plan.

     (i) "Service” means your employment with the Company or any of its Affiliates. Your Service
will be considered to have ceased with the Company and its Affiliates 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 an Affiliate of T. Rowe Price Group, Inc.

     (j) "You”; “Your”. You means the recipient of the stock option as reflected in the Notice.
Whenever the word “you” or “your” is used in any provision of this Agreement under circumstances
where the provision should logically be construed, as determined by the Committee, to apply to the
estate, personal representative, or beneficiary to whom the stock option may be transferred by will
or by the laws of descent and distribution or otherwise pursuant to the terms of this Agreement,
the words “you” and “your” shall be deemed to include such person.

{end of document}

-5-

 

T. ROWE PRICE GROUP, INC.

[2001] [2004] STOCK INCENTIVE PLAN

STATEMENT OF ADDITIONAL TERMS AND CONDITIONS

REGARDING THE AWARDS OF RESTRICTED STOCK UNITS

Effective: September 6, 2007

 

     This Statement of Additional Terms and Conditions Regarding the Awards of Restricted Stock
Units (the “Terms”) and all of the provisions of the T. Rowe Price Group, Inc. 2001 Stock Incentive
Plan (the “Plan”) are incorporated into your award of restricted stock units, the specifics of
which are described on the “Notice of Award of Restricted Stock Units and Restricted Stock Units
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 Terms, the Plan, and the Notice,
together, constitute a binding and enforceable contract respecting your award of restricted stock
units. That contract is referred to in this document as the “Agreement.”

     1. Terminology. Capitalized words used in this document are defined in the Glossary
at the end of this document.

     2. Vesting. All of the restricted stock units are nonvested and forfeitable as of the
date of award. For clarity, as used in this Agreement, the term “vest” means the lapse of
restrictions on the restricted stock units. So long as your Service is continuous from the date of
award through the applicable date upon which vesting is scheduled to occur, the restricted stock
units will vest and become nonforfeitable on the vesting dates set forth in the correlating Notice.
Any and all restricted stock units that have not already vested or been previously forfeited will
vest and become nonforfeitable upon your death or immediately prior to the Effective Date of a
Change of Control of the Company. With the exception of your Service terminating as a result of
your death, none of the restricted stock units will become vested or nonforfeitable after your
Service ceases.

     3. Termination of Service. If your Service ceases for any reason other than death,
all restricted stock units that are not then vested and nonforfeitable will be immediately
forfeited to the Company upon such cessation without payment of any consideration.

     4. Restrictions on Transfer. Restricted stock units may not be assigned, transferred,
pledged, hypothecated or disposed of in any way, whether by operation of law or otherwise, except
by will or the laws of descent and distribution, and restricted stock units may not be made subject
to execution, attachment or similar process.

     5. Dividend Equivalent Payments. On each dividend payment date for each cash dividend
payable with respect to T. Rowe Price Group common stock, the Company will pay to you in cash an
amount equal to the product of (a) the per share cash dividend, multiplied by (b) the number of
your restricted stock units outstanding on the record date.

     6. Settlement of Units. Your restricted stock units will be settled automatically,
via the issuance of T. Rowe Price Group common stock as described herein, when or as soon as
practicable, but in all events within 30 days, after they vest and become nonforfeitable. You are
not required to make any monetary payment (other than applicable tax withholding, if required) as a
condition to settlement of the restricted stock units. The Company will issue to you, in
settlement of your restricted stock units, the number of whole shares of T. Rowe Price Group common
stock that equals the number of whole restricted stock units that vested, and the vested restricted
stock units will cease to be outstanding upon the issuance of those shares. Unless you request the
Company to deliver a share certificate to you, or deliver shares electronically or in certificate
form to your designated broker, bank or nominee on your behalf, the Company will retain the shares
in uncertificated book entry form.

     7. Tax Election and Tax Withholding.

         (a) You hereby agree to make adequate provision for foreign, federal, state and local taxes
required by law to be withheld, if any, which arise in connection with the restricted stock units.
The Company shall have the right to deduct from any compensation or any other payment of any kind
(including withholding the issuance or delivery of shares of T. Rowe Price Group common stock) due
you the amount of any federal, state, local or foreign taxes required by law to be withheld as a
result of the vesting or settlement of the restricted stock units, in whole or in part, or as
otherwise may be required by applicable law; provided, however, that the value of the shares of T.
Rowe Price Group common stock withheld may not exceed the statutory minimum withholding amount
required by law. In lieu of such deduction, the Company may require you to make a cash payment to
the Company equal to the amount required to be withheld. If you do not make such payment when
requested, the Company may refuse to issue any T. Rowe Price Group common stock or deliver any
stock certificate under this Agreement or otherwise release for transfer any such shares until
arrangements satisfactory to the Company for such payment have been made.

         (b) The Company may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the restricted stock units either by
electing to have the Company withhold from the shares to be issued upon vesting that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a fair
market value equal to no more than the amount necessary to satisfy the statutory minimum
withholding amount due.

-1-

 

     8. Adjustments for Corporate Transactions and Other Events.

         (a) Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the T. Rowe Price Group common stock, the number of
outstanding restricted stock units shall, without further action of the Committee, be adjusted to
reflect such event; provided, however, that any fractional restricted stock units resulting from
any such adjustment shall be eliminated. Adjustments under this paragraph will be made by the
Committee, whose determination as to what adjustments, if any, will be made and the extent thereof
will be final, binding and conclusive.

         (b) Merger, Consolidation and Other Events. If the Company shall be the surviving or
resulting corporation in any merger or consolidation and the T. Rowe Price Group common stock shall
be converted into or exchanged for other securities, the restricted stock units shall pertain to
and apply to the securities to which a holder of the number of shares of T. Rowe Price Group common
stock subject to the restricted stock units would have been entitled. If the stockholders of the
Company receive by reason of any distribution in total or partial liquidation or pursuant to any
merger of the Company or acquisition of its assets, securities of another entity, or other property
(including cash), then the rights of the Company under this Agreement shall inure to the benefit of
the Company’s successor, and this Agreement shall apply to the securities or other property
(including cash) to which a holder of the number of shares of T. Rowe Price Group common stock
subject to the restricted stock units would have been entitled, in the same manner and to the same
extent as the restricted stock units.

     9. Non-Guarantee of Employment. Nothing in the Plan or 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 restricted stock units or any other adverse effect on your interests under the
Plan.

     10. Rights as Stockholder. Except as otherwise provided in this Agreement with
respect to dividend equivalent payments, neither you nor any other person claiming through you
shall have any rights with respect to any shares of T. Rowe Price Group common stock subject to the
restricted stock units, including without limitation, any voting rights, unless and until such
shares are duly issued and delivered to you.

     11. The Company’s Rights. The existence of the restricted stock units will 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 the Company’s assets or business, or any other corporate act or proceeding, whether of
a similar character or otherwise.

     12. Notices. 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 or
the restricted stock units, 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 restricted stock units awarded 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 restricted stock units
awarded hereunder shall be void and ineffective for all purposes.

     15. Amendment. Except as provided below, 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 Plan but only if all agreements awarding
restricted stock units pursuant to the Plan which are in effect 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. Notwithstanding the first sentence of this
Section 15 nor the provisions of Section 7(c)(ii) of the Plan, the Change-of-Control vesting
acceleration provision set forth in Section 2 of these Terms may not be altered or amended with
respect to your restricted stock units without your consent. 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 Plan and approved by the Committee.

     16. Conformity with Plan. These Terms are intended to conform in all respects with,
and are subject to all applicable provisions of, the Plan. Except as may be necessary to give
effect to the amendment provisions of Section 15 of these Terms or the 409A savings clause
provisions of Section 19 of these Terms, any inconsistencies between these Terms and the Plan shall
be resolved in accordance with the terms of the Plan. In the event of any ambiguity in these Terms
or any matters as to which these Terms are silent, the Plan shall govern. A copy of the Plan is
available at https://www2.troweprice.com/options or in hard copy upon request to the Company’s
Payroll and Stock Transaction Group in the CFO-Finance Department at BA-0372 in the Baltimore
office or by telephone, at extension 7716.

-2-

 

     17. No Funding. This Agreement constitutes an unfunded and unsecured promise by the
Company to make payments and issue shares of T. Rowe Price Group common stock in the future in
accordance with its terms. You have the status of a general unsecured creditor of the Company as a
result of receiving the award of restricted stock units. Any cash payment due under this Agreement
with respect to dividend equivalent payments under Section 5 hereof will be paid from the general
assets of the Company and nothing in this Agreement will be construed to give you or any other
person rights to any specific assets of the Company.

     18. 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 agree and submit to the personal jurisdiction and venue thereof.

     19. 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.

     20. 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.

     21. 409A Savings Clause. This Agreement and the restricted stock units awarded
hereunder are intended to comply with, or otherwise be exempt from, Section 409A of the Code. This
Agreement and the restricted stock units shall be administered, interpreted and construed in a
manner consistent with such Code Section. Should any provision of this Agreement or the restricted
stock units be found not to comply with, or otherwise be exempt from, the provisions of Section
409A of the Code, it shall be modified and given effect, in the sole discretion of the Committee
and without requiring your consent, in such manner as the Committee determines to be necessary or
appropriate to comply with, or to effectuate an exemption from, Section 409A of the Code. The
preceding provisions shall not be construed as a guarantee by the Company of any particular tax
effect of the restricted stock units.

     22. No Future Entitlement. By execution of the Notice, you acknowledge and agree
that: (i) the award of restricted stock units is a one-time benefit which does not create any
contractual or other right to receive future awards of restricted stock units, or compensation in
lieu of restricted stock units, even if restricted stock units have been awarded repeatedly in the
past; (ii) all determinations with respect to any such future awards, including, but not limited
to, the times when restricted stock units shall be awarded or shall become vested or settled and
the number of restricted stock units subject to each award, will be at the sole discretion of the
Committee; (iii) the value of the restricted stock units is an extraordinary item of compensation
which is outside the scope of your employment contract, if any; (iv) the value of the restricted
stock units 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 restricted stock units 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) the value of the restricted stock
units will change over time and the Company does not guarantee any future value; and (vii) no claim
or entitlement to compensation or damages arises if the value of the restricted stock units
decreases and you irrevocably release the Company from any such claim that does arise.

     23. Personal Data. For the exclusive purpose of implementing, administering and
managing the award of restricted stock units, 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, vested and
unvested) may be transferred to third parties assisting in the implementation, administration and
management of the award of restricted stock units 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 award
of restricted stock units. 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 award of restricted stock units.

     24. 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}

-3-

 

GLOSSARY

     (a) "Affiliate” means any entity, whether now or hereafter existing, in which the Company has
a proprietary interest by reason of stock ownership or otherwise (including, but not limited to,
joint ventures, limited liability companies, and partnerships) or any entity that provides services
to the Company or a subsidiary or affiliated entity of the Company.

     (b) "Agreement” means the contract consisting of the Notice, the Terms and the Plan.

     (c) "Change of Control”. A “Change of Control” shall be deemed to have taken place on the
date of the earlier to occur of either of the following events: (i) a third party, including a
“group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the
beneficial owner of 25% or more of the Company’s outstanding common stock, or (ii) as the result
of, or in connection with, any cash tender or exchange offer, merger, consolidation or other
business combination, sale or disposition of all or substantially all of the Company’s assets, or
contested election, or any combination of the foregoing transactions (a “Transaction”), the persons
who were directors of the Company immediately before the Transaction shall cease to constitute a
majority of the Board of Directors of the Company or any successor to the Company or the persons
who were stockholders of the Company immediately before the Transaction shall cease to own at least
a majority of the outstanding voting stock of the Company or any successor to the Company.

     (d) "Code” means the Internal Revenue Code of 1986, as amended.

     (e) "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.

     (f) "Company” means T. Rowe Price Group, Inc. and its Affiliates, except where the context
otherwise requires. For purposes of determining whether a Change of Control has occurred, Company
shall mean only T. Rowe Price Group, Inc.

     (g) "Effective Date” means the date on which a Change of Control occurs. Anything in this
Agreement to the contrary notwithstanding, if a Change of Control occurs, and if your Service had
terminated prior to the date on which the Change of Control occurred, and if it is reasonably
demonstrated by you that such termination of Service either was at the request of a third party who
had taken steps reasonably calculated to effect the Change of Control or otherwise arose in
connection with or in anticipation of the Change of Control, then, for all purposes of this
Agreement, the term “Effective Date” shall mean the date immediately prior to the date of such
termination of Service.

     (h) "Notice” means the Notice of Award of Restricted Stock Units and Restricted Stock Units
Agreement which correlates with these Terms and sets forth the specifics of the applicable award of
restricted stock units.

     (i) "Plan” means the T. Rowe Price Group, Inc. 2001 Stock Incentive Plan.

     (j) "Service” means your employment with the Company or any of its Affiliates. Your Service
will be considered to have ceased with the Company and its Affiliates 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 an Affiliate of T. Rowe Price Group, Inc.

     (k) "Terms” mean this Statement of Additional Terms and Conditions Regarding the Awards of
Restricted Stock Units.

     (l) "You”; “Your”. You means the recipient of the restricted stock units as reflected in the
Notice. Whenever the word “you” or “your” is used in any provision of this Agreement under
circumstances where the provision should logically be construed, as determined by the Committee, to
apply to the estate, personal representative, or beneficiary to whom the restricted stock units may be transferred by will
or by the laws of descent and distribution, the words “you” and “your” shall be deemed to include
such person.

{end of document}

-4-

 

T. ROWE PRICE GROUP, INC.

[2001] [2004] STOCK INCENTIVE PLAN

STATEMENT OF ADDITIONAL TERMS AND CONDITIONS

REGARDING THE AWARDS OF RESTRICTED STOCK

Effective: September 6, 2007

 

     This Statement of Additional Terms and Conditions Regarding the Awards of Restricted Stock
(the “Terms”) and all of the provisions of the T. Rowe Price Group, Inc. 2001 Stock Incentive Plan
(the “Plan”) are incorporated into your award of restricted stock, the specifics of which are
described on the “Notice of Award of Restricted Stock and Restricted Stock 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 Terms, the Plan, and the Notice, together, constitute a
binding and enforceable contract respecting your award of restricted stock. That contract is
referred to in this document as the “Agreement.”

     1. Terminology. Capitalized words used in this document are defined in the Glossary
at the end of this document.

     2. Vesting.

         (a) All of the Award Shares are nonvested and forfeitable as of the date of award. For
clarity, as used in this Agreement, the term “vest” means the lapse of restrictions on the Award
Shares. So long as your Service is continuous from the date of award through the applicable date
upon which vesting is scheduled to occur, the Award Shares will vest and become nonforfeitable on
the vesting dates set forth in the correlating Notice. Any and all Award Shares that have not
already vested or been previously forfeited will vest and become nonforfeitable upon your death.
With the exception of your Service terminating as a result of your death, none of the Award Shares
will become vested and nonforfeitable after your Service ceases.

         (b) Unless the Committee shall have otherwise determined (within the limits specified in this
paragraph) to revoke or to limit, in its sole and conclusive discretion, the acceleration provided
for herein, the Award Shares will vest in full and become nonforfeitable immediately following the
date on which the Committee no longer may revoke or modify the acceleration contemplated by this
paragraph. The Committee’s discretion to revoke or limit the acceleration contemplated by this
paragraph may be exercised at any time before or within 20 business days after the Effective Date
or the Approval Date, as applicable; provided, however, that such discretion to revoke or limit the
acceleration may not be exercised after the persons who were directors of the Company immediately
before the Transaction (as defined within the definition of Change of Control) shall cease to
constitute a majority of the Board of Directors of the Company or any successor to the Company. In
the event the Approval Date and an Effective Date arise from substantially identical facts and
circumstances (as determined by the Committee in its sole discretion) and unless the Committee
shall have determined to limit the effect of this sentence, such 20-day period referred to in the
immediately preceding sentence shall commence only once and upon the first to occur of the Approval
Date or the Effective Date.

     3. Termination of Service. If your Service ceases for any reason, all Award Shares
that are not then vested and nonforfeitable will be immediately forfeited to the Company upon such
cessation for no consideration. Upon the request of the Committee, you must deliver to the Company
a stock power, endorsed in blank, with respect to any Award Shares that have been forfeited
pursuant to this Agreement.

     4. Restrictions on Transfer.

         (a) Until an Award Share becomes vested and nonforfeitable, it may not be assigned,
transferred, pledged, hypothecated or disposed of in any way (whether by operation of law or
otherwise) and may not be made subject to execution, attachment or similar process.

         (b) The Company shall not be required to (i) transfer on its books any Award Shares that have
been sold or transferred in contravention of this Agreement or (ii) treat as the owner of Award
Shares, or otherwise accord voting, dividend or liquidation rights to, any transferee to whom Award
Shares have been transferred in contravention of this Agreement.

     5. Stock Certificates. You are reflected as the owner of record of the Award Shares
as of the date of award on the Company’s books. The Company will hold the share certificates for
safekeeping, or otherwise retain the Award Shares in uncertificated book entry form, until the
Award Shares become vested and nonforfeitable. Until the Award Shares become vested and
nonforfeitable, any share certificates representing such shares will include a legend to the effect
that you may not sell, assign, transfer, pledge, or hypothecate the Award Shares. Unless you
request the Company to deliver a share certificate to you, or deliver shares electronically or in
certificate form to your designated broker, bank or nominee on your behalf, the Company will retain
the Award Shares in uncertificated book entry form after they become vested. All regular cash
dividends payable on the Award Shares will be paid directly to you on the dividend payment date
regardless of the vested or nonvested status of the Award Shares.

-1-

 

     6. Tax Election and Tax Withholding.

         (a) You hereby agree to make adequate provision for foreign, federal, state and local taxes
required by law to be withheld, if any, which arise in connection with the award or vesting of the
Award Shares. The Company shall have the right to deduct from any compensation or any other
payment of any kind (including withholding the issuance or delivery of shares of T. Rowe Price
Group common stock) due you the amount of any federal, state, local or foreign taxes required by
law to be withheld as a result of the award or vesting of the Award Shares in whole or in part;
provided, however, that the value of the shares of T. Rowe Price Group common stock withheld may
not exceed the statutory minimum withholding amount required by law. In lieu of such deduction,
the Company may require you to make a cash payment to the Company equal to the amount required to
be withheld. If you do not make such payment when requested, the Company may refuse to issue any
stock certificate under this Agreement or otherwise release for transfer any such shares until
arrangements satisfactory to the Company for such payment have been made.

         (b) The Company may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the Award Shares either by electing
to have the Company withhold from the shares to be released upon vesting that number of shares, or
by electing to deliver to the Company already-owned shares, in either case having a fair market
value equal to no more than the amount necessary to satisfy the statutory minimum withholding
amount due.

         (c) You hereby acknowledge that you have been advised by the Company to seek independent tax
advice from your own advisors regarding the availability and advisability of making an election
under Section 83(b) of the Internal Revenue Code of 1986, as amended, and that any such election,
if made, must be made within 30 days of the date of award. You expressly acknowledge that you are
solely responsible for filing any such Section 83(b) election with the appropriate governmental
authorities, irrespective of the fact that such election is also delivered to the Company.

     7. Adjustments for Corporate Transactions and Other Events.

         (a) Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the T. Rowe Price Group common stock, the number of
Award Shares and the number of such Award Shares that are nonvested and forfeitable shall, without
further action of the Committee, be adjusted to reflect such event. The Committee may make
adjustments, in its discretion, to address the treatment of fractional shares with respect to the
Award Shares as a result of the stock dividend, stock split or reverse stock split. Adjustments under this paragraph will be made by the Committee, whose determination as to what
adjustments, if any, will be made and the extent thereof will be final, binding and conclusive. No
fractional Award Shares will result from any such adjustments.

         (b) Binding Nature of Agreement. The terms and conditions of this Agreement shall
apply with equal force to any additional and/or substitute securities received by you in exchange
for, or by virtue of your ownership of, the Award Shares, whether as a result of any spin-off,
stock split-up, stock dividend, stock distribution, other reclassification of the T. Rowe Price
Group common stock, or similar event, except as otherwise determined by the Committee. If the
Award Shares are converted into or exchanged for, or stockholders of the Company receive by reason
of any distribution in total or partial liquidation or pursuant to any merger of the Company or
acquisition of its assets, securities of another entity, or other property (including cash), then
the rights of the Company under this Agreement shall inure to the benefit of the Company’s
successor, and this Agreement shall apply to the securities or other property (including cash)
received upon such conversion, exchange or distribution in the same manner and to the same extent
as the Award Shares.

     8. Non-Guarantee of Employment. Nothing in the Plan or 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 Award Shares or any other adverse effect on your interests under the Plan.

     9. Rights as Stockholder. Except as otherwise provided in this Agreement with respect
to the nonvested and forfeitable Award Shares, you are entitled to all rights of a stockholder of
the Company, including the right to vote the Award Shares and receive dividends and/or other
distributions declared on the Award Shares.

     10. The Company’s Rights. The existence of the Award Shares will 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 the Company’s assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

     11. Notices. 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.

     12. 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 or
the Award Shares, 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.

-2-

 

     13. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the Award Shares awarded 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 Award Shares awarded
hereunder shall be void and ineffective for all purposes.

     14. Amendment. Except as provided below, 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 Plan but only if all agreements awarding
restricted shares of T. Rowe Price Group common stock pursuant to the Plan which are in effect 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 Plan and approved by the Committee.

     15. Conformity with Plan. These Terms are intended to conform in all respects with,
and are subject to all applicable provisions of, the Plan. Except as may be necessary to give
effect to the amendment provisions of Section 14 of these Terms, any inconsistencies between these
Terms and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in these Terms or any matters as to which these Terms are silent, the Plan shall govern.
A copy of the Plan is available at https://www2.troweprice.com/options or in hard copy upon request
to the Payroll and Stock Transaction Group in the CFO-Finance Department at BA-0372 in the
Baltimore office or by telephone, at extension 7716.

     16. 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 agree and submit to the personal jurisdiction and venue thereof.

     17. 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.

     18. No Future Entitlement. By execution of the Notice, you acknowledge and agree
that: (i) the award of Award Shares is a one-time benefit which does not create any contractual or
other right to receive future awards of Award Shares, or compensation in lieu of Award Shares, even
if Award Shares have been awarded repeatedly in the past; (ii) all determinations with respect to
any such future awards, including, but not limited to, the times when Award Shares shall be awarded
or shall become vested and the number of Award Shares subject to each award, will be at the sole
discretion of the Committee; (iii) the value of the Award Shares is an extraordinary item of
compensation which is outside the scope of your employment contract, if any; (iv) the value of the
Award Shares 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 Award Shares 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) the value of the Award Shares will change
over time and the Company does not guarantee any future value; and (vii) no claim or entitlement to
compensation or damages arises if the value of the Award Shares decreases and you irrevocably
release the Company from any such claim that does arise.

     19. Personal Data. For the exclusive purpose of implementing, administering and
managing the award of Award Shares, 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, vested and unvested) may be
transferred to third parties assisting in the implementation, administration and management of the
award of Award Shares 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 award of Award Shares. 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 award of Award Shares.

     20. 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}

-3-

 

GLOSSARY

     (a) "Affiliate” means any entity, whether now or hereafter existing, in which the Company has
a proprietary interest by reason of stock ownership or otherwise (including, but not limited to,
joint ventures, limited liability companies, and partnerships) or any entity that provides services
to the Company or a subsidiary or affiliated entity of the Company.

     (b) "Agreement” means the contract consisting of the Notice, the Terms and the Plan.

     (c) "Approval Date” means the date of the approval of the Company’s Board of Directors of an
agreement providing for an exchange offer, merger, consolidation or other business combination,
sale or disposition of all or substantially all of the assets of the Company, or any combination of
the foregoing transactions as a result of the consummation of which the persons who were directors
of the Company immediately before the transaction shall cease to constitute a majority of the Board
of Directors of the Company or any successor to the Company or the persons who were stockholders of
the Company immediately before the Approval Date will own less than a majority of the outstanding
voting stock of the Company or any successor to the Company.

     (d) "Award Shares” means the shares of T. Rowe Price Group common stock awarded to you as set
forth on the Notice.

     (e) "Change of Control”. A “Change of Control” shall be deemed to have taken place on the
date of the earlier to occur of either of the following events: (i) a third party, including a
“group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the
beneficial owner of 25% or more of the Company’s outstanding common stock, or (ii) as the result
of, or in connection with, any cash tender or exchange offer, merger, consolidation or other
business combination, sale or disposition of all or substantially all of the Company’s assets, or
contested election, or any combination of the foregoing transactions (a “Transaction”), the persons
who were directors of the Company immediately before the Transaction shall cease to constitute a
majority of the Board of Directors of the Company or any successor to the Company or the persons
who were stockholders of the Company immediately before the Transaction shall cease to own at least
a majority of the outstanding voting stock of the Company or any successor to the Company.

     (f) "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.

     (g) "Company” means T. Rowe Price Group, Inc. and its Affiliates, except where the context
otherwise requires. For purposes of determining whether a Change of Control has occurred, Company
shall mean only T. Rowe Price Group, Inc.

     (h) "Effective Date” means the date on which a Change of Control occurs. Anything in this
Agreement to the contrary notwithstanding, if a Change of Control occurs, and if your Service had
terminated prior to the date on which the Change of Control occurred, and if it is reasonably
demonstrated by you that such termination of Service either was at the request of a third party who
had taken steps reasonably calculated to effect the Change of Control or otherwise arose in
connection with or in anticipation of the Change of Control, then, for all purposes of this
Agreement, the term “Effective Date” shall mean the date immediately prior to the date of such
termination of Service.

     (i) "Notice” means the Notice of Award of Restricted Stock and Restricted Stock Agreement
which correlates with these Terms and sets forth the specifics of the applicable restricted stock
award.

     (j) "Plan” means the T. Rowe Price Group, Inc. 2001 Stock Incentive Plan.

     (k) "Service” means your employment with the Company or any of its Affiliates. Your Service
will be considered to have ceased with the Company and its Affiliates 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 an Affiliate of T. Rowe Price Group, Inc.

     (l) "You”; “Your”. You means the recipient of the Award Shares as reflected in the Notice.
Whenever the word “you” or “your” is used in any provision of this Agreement under circumstances
where the provision should logically be construed, as determined by the Committee, to apply to the
estate, personal representative, or beneficiary to whom the Award Shares may be transferred by will
or by the laws of descent and distribution, the words “you” and “your” shall be deemed to include
such person.

{end of document}

-4-exv10w29

 

Exhibit 10.29

Execution

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered
into as of November 1, 2007, among QUEST MIDSTREAM PARTNERS, L.P., a Delaware master limited
partnership (the “MLP”) BLUESTEM PIPELINE,
LLC, a Delaware limited liability company
(“Bluestem”)
the MLP and Bluestem collectively, the
“Borrowers” and individually, a
“Borrower”), the
undersigned Guarantors (collectively, the
“Guarantors”), and ROYAL BANK OF CANADA, as
Administrative Agent and Collateral Agent for the Lenders parties to the hereinafter defined
Credit Agreement (in such capacities, the “Administrative
Agent” and “Collateral Agent,”
respectively) and the undersigned Lenders.

     Reference is made to the Amended and Restated Credit Agreement dated as of November 1, 2007
among Borrowers, the Administrative Agent, the Collateral Agent and the Lenders parties thereto
(as amended, the “Credit Agreement”). Unless otherwise defined in this Amendment, capitalized
terms used herein shall have the meaning set forth in the Credit Agreement; all section, exhibit
and schedule references herein are to sections, exhibits and schedules in the Credit Agreement;
and all paragraph references herein are to paragraphs in this Amendment.

RECITALS

     A. The Borrowers have requested certain amendments to the Credit Agreement and the Lenders
are willing, on the terms and conditions set forth herein to amend the Credit Agreement as
hereinafter set forth.

     Accordingly, for adequate and sufficient consideration, the parties hereto agree, as
follows:

     Paragraph 1. Amendments. Effective as of the First Amendment Effective Date, the
Credit Agreement is amended as follows:

     1.1 Definitions. Section 1.01 of the Credit Agreement is
amended as follows:

     (a) The following definitions are amended in their
entirety to read as follows:

     Adjusted Consolidated EBITDA means, for the period of determination, the sum of (i)
Consolidated EBITDA plus (ii) Material Project Consolidated EBITDA Adjustments plus (iii)
the Distribution Equivalent Amount.”

     Required Lenders means, as of any date of determination, Lenders having more than
66+2/3% of the Aggregate Revolving Commitment or, if the revolving commitment of each
Lender to make Revolving Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate
more than 66+2/3% of the sum of the Outstanding Amount of all Revolving Loans and all L/C
Obligations (with the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations being deemed “held” by such Lender for purposes of this
definition); provided that the Revolving Commitment of, and the portion of the Outstanding
Amount held or deemed held by, any Lender that has (a) failed to fund any portion of the

First Amendment to Quest

Midstream Amended and

Restated Credit Agreement

1

 

Revolving Loans or participations in L/C Obligations required to be funded by it under this
Agreement within one Business Day of the date required to be funded by it under this
Agreement, (b) has otherwise failed to pay over to Administrative Agent or any other Lender
any other amount required to be paid by it under this Agreement within one Business Day of
the date when due, unless the subject of a good faith dispute, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding shall be excluded
for purposes of making a determination of Required Lenders.”

     "Triggering Sale means receipt of any Insurance Payment and any Disposition (including
sales of stock or other equity interests of Subsidiaries) (other than a Disposition
permitted by Section 7.07(a) or (b)) by the MLP, Bluestem or any of their respective
Subsidiaries to any other Person (other than to a Borrower or a Wholly-Owned Subsidiary of
a Borrower) with respect to which the Net Cash Proceeds realized by any Company for such
Disposition and from any Insurance Payments, when aggregated with the Net Cash Proceeds
from all such other Dispositions by all Companies occurring since the Restatement Date and
all Insurance Payments received by all Companies since the Restatement Date less any
amounts that have been Reinvested, equals or exceeds the Threshold Amount. The portion of
the Net Cash Proceeds in excess of the Threshold Amount is herein
called the“Reduction
Amount.”

     (b) The following paragraph is added to the end of the definition of Applicable Rate:

“In the event that any Compliance Certificate delivered hereunder is shown to be inaccurate
(regardless of whether this Agreement or the Aggregate Revolving Commitment is in effect
when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to
the application of a higher Applicable Rate based upon the foregoing pricing grid (the
“Accurate Applicable Rate”) for any period that such Compliance Certificate covered, then
(i) the Borrowers shall immediately deliver to the Administrative Agent a Compliance
Certificate for such period, (ii) the Applicable Rate shall be adjusted such that after
giving effect to the corrected Compliance Certificate the Applicable Rate shall be reset to
the Accurate Applicable Rate based upon the foregoing pricing grid for such period as set
forth in the foregoing pricing grid and (iii) if the Accurate Applicable Rate is higher than
the Applicable Rate based upon the foregoing pricing grid, the Borrowers shall immediately
pay to the Administrative Agent, for the account of the Lenders, the accrued additional
interest owing as a result of such Accurate Applicable Rate for such period.”

     (c) The following definitions are inserted alphabetically into Section 1.01 of the Credit

Agreement:

     “Agreement means this Amended and Restated Credit Agreement as amended by the First
Amendment to Amended and Restated Credit Agreement.”

     “Commercial Operation Date means the date on which a Material Project is substantially
complete and commercially operable.”

     “First Amendment Effective Date means the date the First Amendment to Amended and
Restated Credit Agreement by its terms becomes effective among the parties thereto.”

     “First Amendment to Amended and Restated Credit Agreement means that certain First
Amendment to Amended and Restated Credit Agreement dated as of November 1, 2007, among

First Amendment to Quest

Midstream Amended and

Restated Credit Agreement

2

 

the Borrowers, the Guarantors, Royal Bank of Canada, as Administrative Agent and Collateral
Agent, and the Lenders.”

     “Material Project means the construction or expansion of any capital project of either
Borrower or any of their respective consolidated Subsidiaries, the aggregate capital cost
of which exceeds $20,000,000.”

     “Material Project Consolidated EBITDA Adjustment has the meaning specified in Section
7.15(e) .”

     1.2 Section 6.01. Section 6.01(a) is hereby amended by deleting the introductory
clause thereof and substituting therefor the following:

     “Section 6.01 Financial Statements. Deliver to the Administrative Agent, in form and
detail reasonably satisfactory to the Administrative Agent and the Required Lenders (and
the Administrative Agent shall deliver to the Lenders):”

     1.3 Section 6.12. Section 6.12 is hereby amended by deleting clause (vii) thereof
and substituting therefor the following:

     “(vii) fund during any 12-month period Quarterly MLP Distributions to the extent
permitted by Section 7.08(c) in an amount not to exceed the Maximum Funded Distribution
Amount outstanding at any time, and”

     1.4 Section 6.15. Section 6.15 is hereby amended by deleting the word “the” after
the word “cause” and before the word “each” in the first line thereof.

     1.5 Section 7.01. Section 7.01 of the Credit Agreement is amended by deleting the word
“and” at the end of
Section 7.01(t), deleting the
period at the end of Section 7.01(u) and
substituting
therefor “and;” and adding a new
Section 7.01(v) to read in its entirety as follows:

     “(v) a Lien arising solely by virtue of Bluestem cash collateralizing that certain
$200,000 letter of credit No. NZS564785 issued for the account of Bluestem by Wells Fargo
Bank, N.A. dated February 15, 2006 for the benefit of Victore Insurance Company; Borrowers
agreeing that they will use reasonable efforts to induce Victore Insurance Company to
accept a replacement Letter of Credit issued under this Agreement and thereby eliminate the
requirement for Bluestem to cash collateralize such letter of credit and the Borrowers will
advise the Administrative Agent every 30 days on the status of effecting such replacement
until such letter of credit is replaced, terminated or expires.”

     1.6 Section 7.08. Section 7.08(c) of the Credit Agreement is amended in its entirety
to read
as follows:

     “(c) the MLP may declare, make or incur a liability to make Quarterly MLP Distributions
of Available Cash as defined in the Partnership Agreement (MLP) to the extent such Quarterly
MLP Distributions in any fiscal quarter do not exceed, in the aggregate, the Available Cash
as defined in the Partnership Agreement (MLP) for the immediately preceding fiscal quarter
and are made in accordance with the Partnership Agreement (MLP); provided, that at the time
each such Quarterly MLP Distribution is made no Default or Event of Default exists or would
result therefrom; and.”

First Amendment to Quest

Midstream Amended and

Restated Credit Agreement

3

 

     1.7 Section 7.08. Section 7.08 of the Credit Agreement is amended by adding at the
end
thereof a new subsection (d) to read in its entirety as follows:

     “(d) the MLP may declare, make or incur a liability to make Distribution Equivalent
Amounts; provided, that at the time each such Distribution Equivalent Amount is made no
Default or Event of Default exists or would result therefrom.”

     1.8 Section 7.15. Section 7.15(d)(i) of the Credit Agreement is amended to read in
its
entirety as follows:

     “(i) Consolidated EBITDA shall be calculated after giving effect, on a pro forma basis
(in a manner reasonably acceptable to the Administrative Agent) for the four consecutive
fiscal quarters most recently completed, to any Permitted Acquisition occurring during such
period, as if such Permitted Acquisition occurred on the first day of such period.”

     1.9 Section 7.15. Section 7.15 of the Credit Agreement is amended by adding at the
end
thereof a new subsection (e) to read in its entirety as follows:

     “(e) Adjustments for Material Projects. For purposes of determining compliance with
Sections 7.15(a), (b) and (c) in the event the Borrowers or any of their respective
consolidated Subsidiaries undertakes a Material Project, a Material Project Consolidated
EBITDA Adjustment may be made at Borrowers’ option. As used herein a “Material Project
Consolidated EBITDA Adjustment” means, with respect to each Material Project:

     (i) prior to the Commercial Operation Date of a Material Project (but including the
fiscal quarter in which such Commercial Operation Date occurs), a percentage (equal to the
then-current completion percentage of such Material Project) of an amount to be approved by
the Administrative Agent as the projected Consolidated EBITDA of such Borrower attributable
to such Material Project for the first 12-month period following the scheduled Commercial
Operation Date of such Material Project (such amount to be determined based on contracts
relating to such Material Project, the creditworthiness of the other parties to such
contracts, and projected revenues from such contracts, capital costs and expenses, scheduled
Commercial Operation Date, and other factors reasonably deemed appropriate by the
Administrative Agent), which may, at such Borrower’s option, be added to actual Consolidated
EBITDA for such Borrower for the fiscal quarter in which construction of such Material
Project commences and for each fiscal quarter thereafter until the Commercial Operation Date
of such Material Project (including the fiscal quarter in which such Commercial Operation
Date occurs, but net of any actual Consolidated EBITDA of such Borrower attributable to such
Material Project following such Commercial Operation Date); provided that if the actual
Commercial Operation Date does not occur by the scheduled Commercial Operation Date, then
the foregoing amount shall be reduced, for quarters ending after the scheduled Commercial
Operation Date to (but excluding) the first full quarter after its actual Commercial
Operation Date, by the following percentage amounts depending on the period of delay (based
on the period of actual delay or then-estimated delay, whichever is longer): (i) 90 days or
less, 0%, (ii) longer than 90 days, but not more than 180 days, 25%, (iii) longer than 180
days but not more than 270 days, 50%, and (iv) longer than 270 days, 100%; and

First Amendment to Quest

Midstream Amended and

Restated Credit Agreement

4

 

     (ii) beginning with the first full fiscal quarter following the Commercial Operation
Date of a Material Project and for the two immediately succeeding fiscal quarters, an
amount to be approved by the Administrative Agent as the projected Consolidated EBITDA of
such Borrower attributable to such Material Project (determined in the same manner as set
forth in clause (i) above) for the balance of the four full fiscal quarter period following
such Commercial Operation Date, which may, at such Borrower’s option, be added to actual
Consolidated EBITDA for such Borrower for such fiscal quarters (but net of any actual
Consolidated EBITDA of such Borrower attributable to such Material Project following such
Commercial Operation Date).

     (iii) Notwithstanding the foregoing: (A) no such additions shall be allowed with
respect to any Material Project unless: (y) not later than 30 days prior to the delivery of
any Compliance Certificate required by the terms and provisions of
Section 6.02(a) to the
extent Material Project Consolidated EBITDA Adjustments will be made to Adjusted
Consolidated EBITDA in determining compliance with this
Section 7.15, the Borrowers shall
have delivered to the Administrative Agent written pro forma projections of Consolidated
EBITDA of the Borrower (or its consolidated Subsidiary) attributable to such Material
Project, and (z) prior to the date such Compliance Certificate is required to be delivered,
the Administrative Agent shall have approved (such approval not to be unreasonably
withheld, conditioned or delayed) such projections and shall have received such other
information and documentation as the Administrative Agent may reasonably request, all in
form and substance reasonably satisfactory to the Administrative Agent, and (B) the
aggregate amount of all Material Project Consolidated EBITDA Adjustments during any period
shall be limited to 10% of the total actual Consolidated EBITDA of the Borrowers and their
consolidated Subsidiaries for such period (which total actual Consolidated EBITDA shall be
determined without including any Material Project Consolidated EBITDA Adjustments).

     1.10 Exhibit C-Compliance Certificate. Exhibit C (Form of Compliance Certificate) to
the Credit Agreement is hereby amended in its entirety by Supplemental Exhibit C attached as
Supplemental Exhibit C to this Amendment. Any references in the Credit Agreement to Exhibit C
shall be deemed to refer to Supplemental Exhibit C from and after the First Amendment Effective
Date.

     Paragraph 2. Effective Date. This Amendment shall not become effective until the date
(such date, the “First Amendment Effective
Date”) the Administrative Agent receives all of the
agreements, documents, certificates, instruments, and other items described below:

     (a) this Amendment, executed by the Borrowers, the Guarantors, and each other Lender;

     (b) fees and expenses required to be paid pursuant to Paragraph 5 of this Amendment, to the

extent invoiced prior to the First Amendment Effective Date; and

     (c) such other assurances, certificates, documents and consents as the Administrative Agent
may require.

     Paragraph 3. Acknowledgment and Ratification. As a material inducement to the
Administrative Agent and the Lenders to execute and deliver this Amendment, the Borrowers and the
Guarantors each (i) consent to the agreements in this Amendment, (ii) agree and acknowledge that
the execution, delivery, and performance of this Amendment shall in no way release, diminish,
impair, reduce, or otherwise affect the respective obligations of either Borrower or any Guarantor
under the Loan

First Amendment to Quest

Midstream Amended and

Restated Credit Agreement

5

 

Documents to which it is a party, which Loan Documents shall remain in full force and effect, and
all rights thereunder are hereby ratified and confirmed.

     Paragraph 4. Representations. As a material inducement to the Administrative Agent
and the Lenders to execute and deliver this Amendment, the Borrowers and the Guarantors each
represent and warrant to the Administrative Agent and the Lenders that as of the First Amendment
Effective Date and as of the date of execution of this Amendment, (a) all representations and
warranties in the Loan Documents are true and correct in all material respects as though made on
the date hereof, except to the extent that any of them speak to a different specific date, and (b)
no Default or Event of Default exists.

     Paragraph 5. Expenses, Funding Losses. The Borrowers shall pay on demand all
reasonable costs, fees, and expenses paid or incurred by the Administrative Agent incident to this
Amendment, including, without limitation, Attorney Costs in connection with the negotiation,
preparation, delivery, and execution of this Amendment and any related documents, filing and
recording costs, and the costs of title insurance endorsements, if any.

     Paragraph 6. Miscellaneous.

     (a) This Amendment is a “Loan Document” referred to in the Credit Agreement. The provisions
relating to Loan Documents in Article X of the Credit Agreement are incorporated in this Amendment
by reference. Unless stated otherwise (a) the singular number includes the plural and vice versa
and words of any gender include each other gender, in each case, as appropriate, (b) headings and
captions may not be construed in interpreting provisions, (c) this Amendment must be construed,
and its performance enforced, under New York law and applicable federal law, (d) if any part of
this Amendment is for any reason found to be unenforceable, all other portions of it nevertheless
remain enforceable, and (e) this Amendment may be executed in any number of counterparts with the
same effect as if all signatories had signed the same document, and all of those counterparts must
be construed together to constitute the same document.

     Paragraph 7. ENTIRE AGREEMENT. THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES ABOUT THE SUBJECT MATTER OF THIS AMENDMENT AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

     Paragraph 8. Parties. This Amendment binds and inures to the benefit of the
Borrowers, the Guarantors, the Administrative Agent, the Collateral Agent, the Lenders, and their
respective successors and assigns.

     Paragraph 9. Further Assurances. The parties hereto each agree to execute from time
to time such further documents as may be necessary to implement the terms of this Amendment.

     The parties hereto have executed this Amendment in multiple counterparts to be effective as of
the First Amendment Effective Date.

Remainder of Page Intentionally Blank

Signature Pages to Follow.

First Amendment to Quest

Midstream Amended and

Restated Credit Agreement

6

 

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

	 	 	 	 	 
	 	BORROWERS:

QUEST MIDSTREAM PARTNERS, L.P.,
 a Delaware
limited partnership, as a Borrower

 	 
	 	By:  	QUEST MIDSTREAM GP, LLC, 	 
	 	 	its General Partner 	 
	 	 	 
	 	 	By:  	                                                  /s/ Jerry D. Cash
 	 
	 	 	 	Jerry D. Cash 	 
	 	 	 	Chairman and Chief Executive Officer 	 
	 
	 	BLUESTEM PIPELINE, LLC,

a Delaware limited liability company, as a Borrower

 	 
	 	 	By:  	QUEST MIDSTREAM PARTNERS, L.P.  	 
	 	 	 	its Sole Member 	 
	 
	 	 	 
	 	 	By:  	QUEST MIDSTREAM GP, LLC, 	 
	 	 	 	its General Partner 	 

						
	 	 	 
	 	 	 	By:  	                                               /s/ Jerry D. Cash
 	 
	 	 	 	 	Jerry D. Cash 	 
	 	 	 	 	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	GUARANTORS:

QUEST KANSAS GENERAL PARTNER, L.L.C., a

Delaware limited liability company, as

Guarantor

 	 
	 	 	By:  	Quest Midstream Partners, L.P., 	 
	 	 	 	a Delaware limited partnership,

its Sole Member 	 
	 	 	 
	 	 	By:  	Quest Midstream GP, LLC, 	 
	 	 	 	a Delaware limited liability company,

its General Partner 	 

						
	 	 	 
	 	 	 	By:  	                                               /s/ Jerry D. Cash
 	 
	 	 	 	 	Jerry D. Cash 	 
	 	 	 	 	Chairman and Chief Executive Officer 	 
	 

Signature Page 1

 

 

	 	 	 	 	 	 
	 	 	QUEST KANSAS PIPELINE, L.L.C.,

a Delaware limited liability

company, as Guarantor

 	 
	 	 	By:  	Quest Midstream Partners, L.P., 	 
	 	 	 	a Delaware limited
partnership, 

its Sole Member 	 	 	 
	 
	 	 	 	By:  	Quest Midstream GP, LLC,  	 
	 	 	 	 	a Delaware limited liability
company,

 its General Partner 	 

	 	 	 	 	 	 	 
	 	 	 	By:  	/s/ Jerry D. Cash
 	 
	 	 	 	 	Jerry D. Cash 	 
	 	 	 	 	Chairman and Chief Executive Officer 	 
	 

Signature Page 2

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	QUEST PIPELINE (KPC),

a Kansas general partnership, as Guarantor	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Quest Kansas General Partner, L.L.C.,

a Delaware limited liability company,
a general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Quest Midstream Partners, L.P.,

a Delaware limited partnership, its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Quest Midstream GP, LLC,

a Delaware limited liability

company, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Jerry D. Cash	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Jerry D. Cash	 	 
	 

	 	 	 	 	 	 	 	 	 	Chairman and Chief Executive Officer	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Quest Kansas Pipeline, L.L.C.,

a Delaware limited liability company,
a general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Quest Midstream Partners, L.P.,

a Delaware limited partnership, its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Quest Midstream GP, LLC,

a Delaware limited liability

company, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Jerry D. Cash	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Jerry D. Cash	 	 
	 

	 	 	 	 	 	 	 	 	 	Chairman and Chief Executive Officer	 	 

Signature Page 3

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/  Renuka Gnanaswaran
 	 
	 	Name:  	Renuka Gnanaswaran 	 
	 	Title:  	Manager, Agency 	 
	 
	 	L/C ISSUER AND LENDER:

ROYAL BANK OF CANADA, 

as a Lender and L/C Issuer

 	 
	 	By:  	/s/ Jason S. York
 	 
	 	Name:  	Jason S. York  	 
	 	Title:  	Authorized Signatory 	 
	 

Signature Page 4

 

 

SUPPLEMENTAL EXHIBIT C

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

(Pursuant to Section 6.02 of the Agreement)

Financial Statement Date:                                         ,                     

			
	To:	 	Royal Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of November
1, 2007 (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Agreement;” the terms defined therein being used herein as therein defined), among
Quest Midstream Partners, L.P., a Delaware limited partnership (the
“MLF”), Bluestem Pipeline,
LLC, a Delaware limited liability company (“Bluestem”, collectively the MLP and Bluestem called
the “Borrowers”), the Lenders from time to time party thereto, and Royal Bank of Canada, as
Administrative Agent. Capitalized terms used herein but not defined herein shall have the meaning
set forth in the Agreement.

     The undersigned Responsible Officers hereby certify as of the date hereof that they are the
                                                                                 of the General Partner of the MLP, which is the sole member of
Bluestem, and that, as such, they are authorized to execute and deliver this Certificate to the
Administrative Agent on the behalf of the MLP and Bluestem, and that:

     [Use the following for fiscal year-end financial statements]

     Attached hereto as Schedule 1 are the year-end audited consolidated financial statements of
the MLP and its Subsidiaries required by Section 6.01(a) of the Agreement for the fiscal year of
the MLP ended as of the above date, together with the report and opinion of an independent
certified public accountant required by such section; and

     [Use the following for fiscal quarter-end financial statements]

     Attached hereto as Schedule 1 are, the unaudited consolidated financial statements of the MLP
and its Subsidiaries required by
Section 6.01(b) of the Agreement for the fiscal quarter of the
MLP ended as of the above date and the portion of the MLP’s fiscal year then ended, together with
a certificate of a Responsible Officer of the MLP stating that such financial statements fairly
present in all material respects the financial condition, results of operations and cash flows of
the MLP and its Subsidiaries in accordance with GAAP as at such date and for such period, subject
only to normal year-end audit adjustments and the absence of footnotes.

     [Use the following for both fiscal year-end and quarter-end financial statements]

     1. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the transactions and
condition (financial or otherwise) of the Borrower during the accounting period covered by the
attached financial statements.

Supplemental Schedule C Page 1

 

 

     2. A review of the activities of the MLP and Bluestem during such fiscal period has been
made under the supervision of the undersigned with a view to determining whether during such
fiscal period the MLP and Bluestem performed and observed all their respective Obligations under the
Loan Documents, and no Default or Event of Default has occurred and is continuing except as follows
(list of each such Default or Event of Default and include the information required by Section 6.03 of
the Credit Agreement):

     3. The
covenant analyses and information set forth on Schedule 2 attached hereto are true
and accurate on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned have executed this Certificate as of                                                             ,                     .

	 	 	 	 	 	 	 	 	 	 	 
	BLUESTEM PIPELINE, LLC,	 	QUEST MIDSTREAM
PARTNERS, L.P.,
	a Delaware limited liability company, as Borrower	 	a Delaware limited partnership, as Borrower
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	QUEST MIDSTREAM PARTNERS, L.P.,
	 	By
	 	QUEST MIDSTREAM GP, LLC, its	 	 	 	 
	 

	 	its Sole Member
	 	 	 	General Partner	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	QUEST MIDSTREAM GP, LLC, its
	 	By:	 	 	 	 	 	 
	 

	 	General Partner
	 	Name:	 	 	 	 	 	 
	 

	 	 	 	Title	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

Supplemental Schedule C Page 2

 

 

For the Quarter/Year ended

                                        (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 I. 
	Section 7.15(a) — Interest Coverage Ratio.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	A.

	 	 	Adjusted Consolidated EBITDA for four consecutive fiscal quarters ending
on the Statement Date (“Subject Period”) (see Credit Agreement definition of
“Consolidated EBITDA” and
“Adjusted Consolidated EBITDA”):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated EBITDA for Subject Period (prior to pro forma
adjustments for Permitted Acquisitions pursuant to Section 7.15(d)) and
Material Projects pursuant to Section 7.15(e):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Pro forma adjustments to EBITDA for Permitted Acquisitions
during the Subject Period (Section 7.15(d)), giving effect to such
Permitted Acquisitions on a pro forma basis for the Subject Period as
if such Permitted Acquisitions occurred on the first day of the Subject
Period:
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Pro forma adjustments to EBITDA for Material Projects during the
Subject Period (Section 7.15(e)) giving effect to the Material Project
Consolidated EBITDA Adjustments for the Subject Period:
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Consolidated EBITDA including pro forma adjustments for Permitted
Acquisitions and Material Projects (Lines I.A.1 + I.A.2 + I.A.3):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Distribution Equivalent Amount for Subject Period
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Adjusted Consolidated EBITDA (Lines I.A.4 + I.A.5)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	B.

	 	 	 	 	 	Consolidated Interest Charges for the Subject Period	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated Interest Charges for
the four consecutive fiscal quarters ending on the Statement Date:
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Pro forma adjustment for Consolidated Interest Charges during
the four consecutive fiscal quarters ending on the Statement Date
(Section 7.15(d)):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Consolidated Interest Charges including pro forma adjustments for
Permitted Acquisitions (Lines I.B.1 + I.B.2):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	C.

	 	 	 	 	 	Interest Coverage Ratio	 	 	 	 	 	 
	 

	 	 	 	 	 	Adjusted Consolidated EBITDA adjusted for Permitted Acquisitions and	 	 	 	 	 	 
	 

	 	 	1.	 	 	Material Projects (Line I.A.6):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Consolidated Interest Charges adjusted for Permitted Acquisitions (Line
I.B.3):
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Imputed interest charges on Synthetic Lease Obligations of the MLP and
its Subsidiaries for the Subject Period:
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Interest Coverage Ratio: (Line I.C.1) divided by (Lines I.C.2 + I.C.3):
	 	 	                to 1.0
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Minimum required: 2.50 to 1.00 for any fiscal quarter-end prior to the
earlier of (i) the completion of an MLP Equity Offering and (ii)
	 	 	Yes/No

Supplemental Schedule C Page 3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	September 30, 2008, increasing to 2.75 to 1.00 for each fiscal
quarter-end thereafter occurring after the first to occur of (y)
September 30, 2008 and (z) the first fiscal quarter-end following
the completion of an MLP Equity Offering.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	II.

	Section 7.15(b)— Total Leverage Ratio.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	A.

	 	 	 	 	 	Cash Adjusted Consolidated Funded Debt	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated Funded Debt on Statement Date (borrowed money Indebtedness,
letter of credit reimbursement obligations, Capital Leases, Synthetic Leases,
Guaranty Obligations)
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Cash of MLP and its Subsidiaries deposited with Administrative Agent
(or another approved financial institution) subject to control
agreement or otherwise pledged
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Line II.A.1 minus II.A.2
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	B.

	 	 	 	 	 	Adjusted Consolidated EBITDA	 	 	 	 	 	 
	 

	 	 	1.	 	 	Adjusted Consolidated EBITDA (including pro forma adjustments for
Permitted Acquisitions and Material Projects) (Line I.A.6 above)
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Total Leverage Ratio: (Line II.A.3) divided by (Line II.B.1):

Is the Total Leverage Ratio less than 5.00 to 1.0 decreasing to 4.50 to
1.00 for each fiscal quarter-end thereafter occurring after the
first to occur of (y) September 30, 2008 and (z) the first fiscal
quarter-end following the completion of an MLP Equity Offering; unless such quarter-end occurs during any Acquisition Adjustment
Period, in which case the Total Leverage Ratio cannot be greater
than 5.00 to 1.00; provided, if a Senior Debt Offering occurred
after September 30, 2008, the Total Leverage Ratio as of any
fiscal quarter-end cannot be greater than 5.00 to 1.00 unless if a
Senior Debt Offering occurred after September 30, 2008 and
	 	 	           to 1.0
	 

	 	 	3.	 	 	such quarter-end occurs during any Acquisition Adjustment Period, in
which case the Total Leverage Ratio cannot be greater than 5.50 to 1.00.
	 	 	 	 	 	Yes/No
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	III.

	Section 7.15(c) — Senior Leverage Ratio (only applicable if Senior
Debt Offering occurred after 9/30/08).
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	A.

	 	 	 	 	 	Cash Adjusted Consolidated Senior Debt	 	 	 	 	 	 
	 

	 	 	1.	 	 	Amount of Outstanding Obligations
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Amount of all other secured Indebtedness
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Outstanding amount of Obligations under Lender Hedging Agreements
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Sum of Lines III.A.1 + III.A.2 + III.A.3
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Cash of MLP and its Subsidiaries deposited with Administrative
Agent (or another approved financial institution) subject to
control agreement or otherwise pledged
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Line III.A.4 minus III.A.5
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	B.

	 	 	 	 	 	Adjusted Consolidated EBITDA	 	 	 	 	 	 
	 

	 	 	1.	 	 	Adjusted Consolidated EBITDA (including pro forma adjustments for
Permitted Acquisitions and Material Projects) (Line I.A.6 above)
	 	 	$	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Senior Leverage Ratio: (Line III.A.6) divided by (Line II.B.1):
	 	 	           to 1.0
	 

	 	 	3.	 	 	Is the Senior Leverage Ratio less than 4.0 to 1.0?
	 	 	Yes/No
	 

	 	 	4.	 	 	Is an Acquisition Adjustment Period in effect on Statement Date?
	 	 	Yes/No
	 

	 	 	5.	 	 	If answer to Line III.B.4 is Yes, is the Senior Leverage Ratio less than 4.5
to 1.0?
	 	 	Yes/No

Supplemental Schedule C Page 4

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