Document:

exv10w3

 

Exhibit 10.3

PIPER JAFFRAY COMPANIES

AMENDED AND RESTATED

2003 ANNUAL AND LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

(Annual Grant)

	 	 	 
	Name
of Employee:
	 	 
	
 	 	
 
	No.
of Shares Covered:
 

	 	Date of Issuance:
	
 	 	
 
	Vesting Schedule pursuant to
Section 2:
 
	 	 
	Vesting
Date(s)

	 	No. of Shares Which

Become Vested as of Such Date
	
 

	 	
 
	 
	 
	 
	 

     This is a Restricted Stock Agreement (“Agreement”) between Piper Jaffray
Companies, a Delaware corporation (the “Company”), and the above-named employee
of the Company (the “Employee”).

Recitals

     WHEREAS, the Company maintains the Piper Jaffray Companies Amended and
Restated 2003 Annual and Long-Term Incentive Plan, as amended from time to time
(the “Plan”);

     WHEREAS, the Board of Directors of the Company has appointed the
Compensation Committee (the “Committee”) with the authority to determine the
awards to be granted under the Plan; and

     WHEREAS, the Committee or its delegee has determined that the Employee is
eligible to receive an award under the Plan in the form of restricted stock and
has set the terms thereof;

     NOW, THEREFORE, the Company hereby grants this award to the Employee under
the terms set by the Committee as follows.

 

 

Terms and Conditions*

     1. Grant of Restricted Stock.

     (a) Subject to the terms and conditions of this Agreement, the Company has
granted to the Employee the number of Shares specified at the beginning of this
Agreement. These Shares are subject to the restrictions provided for in this
Agreement and are referred to collectively as the “Restricted Shares” and each
as a “Restricted Share.”

     (b) The Restricted Shares will be evidenced by a book entry made in the
records of the Company’s transfer agent in the name of the Employee (unless the
Employee requests a certificate evidencing the Restricted Shares). All
restrictions provided for in this Agreement will apply to each Restricted Share
and to any other securities distributed with respect to that Restricted Share.
Unless otherwise permitted by the Committee in accordance with the terms of the
Plan, the Restricted Shares may not (until such Restricted Shares have vested
in the Employee in accordance with all terms and conditions of this Agreement)
be assigned or transferred other than by will or the laws of descent and
distribution and shall not be subject to pledge, hypothecation, execution,
attachment or similar process. Each Restricted Share will remain restricted
and subject to forfeiture to the Company unless and until that Restricted Share
has vested in the Employee in accordance with all of the terms and conditions
of this Agreement. Each book entry (or stock certificate if requested by the
Employee) evidencing any Restricted Share may contain such notations or legends
and stock transfer instructions or limitations as may be determined or
authorized by the Company in its sole discretion. If a certificate evidencing
any Restricted Share is requested by the Employee, the Company may, in its sole
discretion, retain custody of any such certificate throughout the period during
which any restrictions are in effect and require, as a condition to issuing any
such certificate, that the Employee tender to the Company a stock power duly
executed in blank relating to such custody.

     2. Vesting.

     (a) If the Employee remains continuously employed (including during the
continuance of any leave of absence approved by the Company or an Affiliate) by
the Company or an Affiliate, then the Restricted Shares will vest in the
numbers and on the dates specified in the Vesting Schedule at the beginning of
this Agreement.

     (b) If the Employee’s employment by the Company or an Affiliate terminates
because of the Employee’s death (or if the Employee dies within 90 days after
termination of employment for any reason other than for Cause (as defined
below)), then the unvested Restricted Shares will immediately vest in full.

     (c) If the Employee’s employment with the Company or an Affiliate
terminates for any reason, other than for Cause (as defined below) or because
of the Employee’s death, then

	 	 	*Unless the context indicates otherwise, terms that are not defined in this
Agreement shall have the meaning set forth in the Plan.

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the Restricted Shares shall continue to vest in accordance with the
Vesting Schedule set forth above; provided, however, that any remaining
Restricted Shares which do not become vested will immediately be forfeited in
accordance with Section 4 of this Agreement if the Employee does any of the
following after such termination:

     (i) uses, discloses or misappropriates any Company-Related
Information (as defined below) unless the Company or an Affiliate
consents otherwise in writing. “Company-Related Information” means any
confidential or secret knowledge or information of the Company or an
Affiliate that the Employee has acquired or become acquainted with during
the Employee’s employment with the Company or an Affiliate, including,
without limitation, any confidential customer list, confidential business
information, confidential materials relating to the practices or
procedures of the Company or an Affiliate, or any other proprietary
information of the Company or an Affiliate; provided, however that
Company-Related Information shall not include any knowledge or
information that is now published or which subsequently becomes generally
publicly known in the form in which it was obtained from the Company or
an Affiliate, other than as a direct or indirect result of the Employee’s
disclosure in contradiction of this Section 2(c);

     (ii) without the prior written consent of the Company or an
Affiliate, directly or indirectly, owns, manages, operates, controls or
participates in the ownership, management, operation or control of, or
becomes connected as an officer, employee, partner, director, consultant,
independent contractor or otherwise with, or has any financial interest
or other pecuniary interest in, any Competing Business (as defined
below). A “Competing Business” means any corporation, partnership,
limited liability company or other business association, organization or
entity or person of any kind whatsoever that (i) competes or plans to
compete with the Company or any Affiliate in any line of business or (ii)
otherwise offers any type of securities, investment or other financial
products or services as a principal part of its business, regardless of
whether such products or services are currently offered, or proposed to
be offered, by the Company or any Affiliate. Notwithstanding the
foregoing, ownership, for passive personal investment purposes only, of
less than 5% of the voting stock of any publicly held corporation shall
not by itself result in forfeiture of the Restricted Shares;

     (iii) without the prior written consent of the Company or an
Affiliate, accepts a position as an officer, employee, partner,
consultant or independent contractor with any corporation, partnership,
limited liability company or other business association, organization or
entity or person of any kind whatsoever (regardless of whether such
position is with a Competing Business) if such position involves duties,
responsibilities or expertise similar to that of the Employee’s position
of employment with the Company or an Affiliate at the time of the
Employee’s termination of such employment;

     (iv) directly or indirectly, on behalf of the Employee or any other
person (including a Competing Business), solicits for employment in a
Competing Business any

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person who was employed by the Company or an Affiliate within three
years prior to the date of the Employee’s termination of employment; or

     (v) directly or indirectly, on behalf of the Employee or any other
person (including a Competing Business), solicits any customers, clients
or accounts of the Company or any Affiliate or otherwise seeks to divert
such customers, clients or accounts away from the Company or any
Affiliate.

     (d) Notwithstanding any other provisions of this Agreement to the
contrary, the Committee may in its sole discretion, declare at any time that
the Restricted Shares, or any portion thereof, shall vest immediately.

     3. Lapse of Restrictions. Upon the vesting of any Restricted Shares, such
vested Restricted Shares will no longer be subject to forfeiture as provided in
Section 4 of this Agreement.

     4. Forfeiture. If (i) the Employee attempts to pledge, encumber, assign,
transfer or otherwise dispose of any of the Restricted Shares (except as
permitted by Section 1(b) of this Agreement) or the Restricted Shares become
subject to attachment or any similar involuntary process in violation of this
Agreement, or (ii) the Employee’s employment with the Company or an Affiliate
(A) is terminated for Cause or (B) terminates under the circumstances covered
by Section 2(c) of this Agreement and the Employee subsequently violates any of
the restrictions contained in such Section, then any Restricted Shares that
have not previously vested shall be forfeited by the Employee to the Company,
the Employee shall thereafter have no right, title or interest whatever in such
Restricted Shares, and, if the Company does not have custody of any and all
certificates representing Restricted Shares so forfeited, the Employee shall
immediately return to the Company any and all certificates representing
Restricted Shares so forfeited. Additionally, the Employee will deliver to the
Company a stock power duly executed in blank relating to any and all
certificates representing Restricted Shares forfeited to the Company in
accordance with the previous sentence or, if such stock power has previously
been tendered to the Company, the Company will be authorized to deem such
previously tendered stock power delivered, and the Company will be authorized
to cancel any and all certificates representing Restricted Shares so forfeited
and to cause a book entry to be made in the records of the Company’s transfer
agent in the name of the Employee (or a new stock certificate to be issued, if
requested by the Employee) evidencing any Shares that vested prior to
forfeiture. If the Restricted Shares are evidenced by a book entry made in the
records of the Company’s transfer agent, then the Company will be authorized to
cause such book entry to be adjusted to reflect the number of Restricted Shares
so forfeited. “Cause” means (i) the Employee’s continued failure to
substantially perform his or her duties with the Company or an Affiliate after
demand for substantial performance is delivered to the Employee, (ii) the
Employee’s conviction of a crime (including misdemeanors) that, in the
Company’s determination, impairs the Employee’s ability to perform his or her
duties with the Company or an Affiliate, (iii) the Employee’s violation of any
policy of the Company or an Affiliate that the Company deems material, (iv) the
Employee’s violation of any securities law, rule or regulation that the Company
deems material, (v) the Employee’s engagement in conduct that, in the Company’s
determination, exposes the Company or an Affiliate to civil or regulatory
liability or injury to their reputations, (vi) the Employee’s engagement in
conduct that would subject the Employee to statutory

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disqualification pursuant to Section 15(b) of the Exchange Act and the
regulations promulgated thereunder, or (vii) the Employee’s gross or willful
misconduct, as determined by the Company.

     5. Stockholder Rights. As of the date of issuance specified at the
beginning of this Agreement, the Employee shall have all of the rights of a
stockholder of the Company with respect to the Restricted Shares, except as
otherwise specifically provided in this Agreement.

     6. Tax Withholding. The parties hereto recognize that the Company or an
Affiliate may be obligated to withhold federal and state taxes or other taxes
upon the vesting of the Restricted Shares, or, in the event that the Employee
elects under Code Section 83(b) to report the receipt of the Restricted Shares
as income in the year of receipt, upon the Employee’s receipt of the Restricted
Shares. The Employee agrees that, at such time, if the Company or an Affiliate
is required to withhold such taxes, the Employee will promptly pay, in cash
upon demand (or in any other manner permitted by the Committee in accordance
with the terms of the Plan), to the Company or an Affiliate such amounts as
shall be necessary to satisfy such obligation. The Employee further
acknowledges that the Company has directed the Employee to seek independent
advice regarding the applicable provisions of the Code, the income tax laws of
any municipality, state or foreign country in which the Employee may reside,
and the tax consequences of the Employee’s death.

     7. Restrictive Legends and Stop-Transfer Orders.

     (a) Legends. The book entry or certificate representing the Restricted
Shares shall contain a notation or bear the following legend (as well as any
notations or legends required by applicable state and federal corporate and
securities laws) noting the existence of the restrictions and the Company’s
rights to reacquire the Restricted Shares set forth in this Agreement:

“THE SHARES REPRESENTED BY THIS [BOOK ENTRY] [CERTIFICATE]
MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A
RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY
OF THE COMPANY.”

     (b) Stop-Transfer Notices. The Employee agrees that, in order to ensure
compliance with the restrictions referred to herein, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

     (c) Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Restricted Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Agreement or (ii) to
treat as owner of the Restricted Shares or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom the Restricted Shares
shall have been so transferred.

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     8. Interpretation of This Agreement. All decisions and interpretations
made by the Committee with regard to any question arising hereunder or under
the Plan shall be binding and conclusive upon the Company and the Employee. If
there is any inconsistency between the provisions of this Agreement and the
Plan, the provisions of the Plan shall govern.

     9. Not Part of Employment Contract; Discontinuance of Employment. The
Employee acknowledges that this Agreement awards restricted stock to the
Employee, but does not impose any obligation on the Company to make any future
grants or issue any future Awards to the Employee or otherwise continue the
participation of the Employee under the Plan. This Agreement shall not give
the Employee a right to continued employment with the Company or any Affiliate,
and the Company or Affiliate employing the Employee may terminate his or her
employment and otherwise deal with the Employee without regard to the effect it
may have upon him or her under this Agreement.

     10. Binding Effect. This Agreement shall be binding in all respects on
the heirs, representatives, successors and assigns of the Employee.

     11. Choice of Law. This Agreement is entered into under the laws of the
State of Delaware and shall be construed and interpreted thereunder (without
regard to its conflict-of-law principles).

     12. Entire Agreement. This Agreement and the Plan set forth the entire
agreement and understanding of the parties hereto with respect to the issuance
and sale of the Restricted Shares and the administration of the Plan and
supersede all prior agreements, arrangements, plans, and understandings
relating to the issuance and sale of the Restricted Shares and the
administration of the Plan.

     13. Amendment and Waiver. Except as provided in the Plan, this Agreement
may be amended, waived, modified, or canceled only by a written instrument
executed by the parties or, in the case of a waiver, by the party waiving
compliance.

     14. Acknowledgment of Receipt of Copy. By execution hereof, the Employee
acknowledges having received a copy of the prospectus related to the Plan and
instructions on how to access a copy of the Plan.

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     IN WITNESS WHEREOF, the Employee and the Company have executed this
Agreement as of the date of issuance specified at the beginning of this
Agreement.

	 	 	 	 	 
	 	EMPLOYEE

PIPER JAFFRAY COMPANIES

By

Its

 	 
	 	 	 
	 	 	 
	 	 	 
	 

7exv10w4

 

Exhibit 10.4

PIPER JAFFRAY COMPANIES

AMENDED AND RESTATED

2003 ANNUAL AND LONG-TERM INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

(Non-Employee Director)

	 	 	 
	Full Name of Optionee:
	 	 
	
 	 	
 
	No.
of Shares Covered:
 

	 	Date of Grant:
	
 	 	
 
	Exercise Price Per Share:

	 	Expiration Date:
 
	 	 	 
	 
	 
	 
	 

This is a Non-Qualified Stock Option Agreement (this “Agreement”) between Piper
Jaffray Companies, a Delaware corporation (the “Company”), and the optionee
identified above (the “Optionee”) effective as of the date of grant specified
above.

Recitals

     WHEREAS, the Company maintains the Piper Jaffray Companies Amended and
Restated 2003 Annual and Long-Term Incentive Plan, as amended from time to time
(the “Plan”);

     WHEREAS, the Board of Directors of the Company has appointed the
Compensation Committee (the “Committee”) with the authority to determine the
awards to be granted under the Plan; and

     WHEREAS, the Committee or its delegee has determined that the Optionee is
eligible to receive an award under the Plan in the form of a Non-Qualified
Stock Option (this “Option”) and has set the terms thereof;

     NOW, THEREFORE, the Company hereby grants this Option to the Optionee
under the terms set by the Committee as follows:

Terms and Conditions*

     1. Grant. Subject to the terms of the Plan, the Optionee is granted this
Option to purchase the number of Shares specified at the beginning of this
Agreement on the terms set forth herein.

	 	 	*Unless the context indicates otherwise, capitalized terms that are not defined
in this Agreement have the meanings set forth in the Plan.

 

 

     2. Exercise Price. The price to the Optionee of each Share subject to
this Option is the exercise price specified at the beginning of this Agreement.

     3. Not an Incentive Stock Option. This Option is not intended to be an
“incentive stock option” within the meaning of Section 422 of the Code.

     4. Exercise Schedule. This Option may be exercised in full or in part at
any time prior to its expiration.

     5. Expiration. This Option shall expire at 4:00 p.m. Central Time on the
expiration date specified at the beginning of this Agreement. No one may
exercise this Option after it has expired, notwithstanding any other provision
of this Agreement.

     6. Procedure to Exercise Option.

     (a) Notice of Exercise. Subject to the terms of this Agreement, this
Option may be exercised by delivering written notice of exercise to the Company
at its headquarters in the form attached to this Agreement or a similar form
containing substantially the same information and addressed or delivered to the
attention of Executive Compensation. The notice shall state the election to
exercise this Option, the number of Shares to be purchased, and shall be signed
by the person exercising this Option. If the person exercising this Option is
not the Optionee, he or she also must submit appropriate proof of his or her
right to exercise this Option.

     (b) Tender of Payment. Any notice of exercise shall be accompanied
by:

     (i) payment (by wire transfer, check, bank draft or money order, or,
if the purchase price is paid from a client account maintained by the
Company’s broker dealer subsidiary, through an internal transfer of the
funds to an account designated by the Company) of the full purchase price
of the Shares being purchased;

     (ii) by delivery to the Company of unencumbered Shares, which have
been held by the person exercising this Option for at least 6 months
prior to the date of exercise, having an aggregate Fair Market Value on
the date of exercise equal to the purchase price of such Shares; or

     (iii) any combination of (i) or (ii) above.

Notwithstanding the other terms of this subparagraph, the Optionee shall not be
permitted to pay any portion of the purchase price of the Shares being
purchased with Shares if the Committee believes that payment in such manner is
undesirable.

     (c) Delivery of Shares. As soon as practicable after the Company receives
a properly executed notice from the person exercising this Option and the
purchase price provided for above, it shall cause a book entry to be made by
the Company’s transfer agent in the name of such person evidencing the Shares
being purchased (unless such person requests a stock certificate evidencing
such Shares). The Company shall pay any original issue or transfer taxes with
respect to the issue or transfer of the Shares and all fees and expenses
incurred by it in connection therewith. All Shares so issued shall be fully
paid and nonassessable. Notwithstanding anything to

 

 

the contrary in this Agreement, the Company shall not be required to issue or
deliver any Shares before the completion of such registration or other
qualification of such Shares under any state law, rule, or regulation as the
Company determines to be necessary or desirable.

     7. Limitation on Transfer. While the Optionee is alive, only the Optionee
(or his or her legal representative) may exercise this Option. Unless
otherwise permitted by the Committee in accordance with the terms of the Plan,
this Option may not be assigned or transferred other than by will or the laws
of descent and distribution and shall not be subject to pledge, hypothecation,
execution, attachment, or similar process. Any attempt to assign, transfer,
pledge, hypothecate, or otherwise dispose of this Option contrary to the
provisions hereof, and the levy of any attachment or similar process upon this
Option, shall be void.

     8. No Stockholder Rights Before Exercise. No person shall have any of the
rights of a stockholder of the Company with respect to any Share subject to
this Option until the Share actually is issued to him or her upon exercise of
this Option.

     9. Discretionary Adjustment. The Committee may make appropriate
adjustments in the number of Shares subject to this Option and in the purchase
price per Share to give effect to any adjustments made in the number of
outstanding Shares through a Change in Control, recapitalization,
reclassification, stock dividend, stock split, reverse stock split, stock
combination or other relevant change; provided that fractional Shares shall be
rounded to the nearest whole Share.

     10. Tax Matters. The Optionee acknowledges that the Company has directed
the Optionee to seek independent advice regarding the applicable provisions of
the Code, the income tax laws of any municipality, state or foreign country in
which the Optionee may reside, and the tax consequences of the Optionee’s
death.

     11. Interpretation of This Agreement. All decisions and interpretations
made by the Committee with regard to any question arising hereunder or under
the Plan shall be binding and conclusive upon the Company and the Optionee. If
there is any inconsistency between the provisions of this Agreement and the
Plan, the provisions of the Plan shall govern.

     12. Discontinuance of Director Status. This Agreement shall not give the
Optionee a right to continue to serve as a director of the Company, and the
Company may deal with the Optionee without regard to the effect it may have
upon him or her under this Agreement.

     13. Obligation to Reserve Sufficient Shares. The Company shall at all
times during the term of this Option reserve and keep available a sufficient
number of Shares to satisfy this Agreement.

     14. Binding Effect. This Agreement shall be binding in all respects on
the heirs, representatives, successors and assigns of the Optionee.

     15. Choice of Law. This Agreement is entered into under the laws of the
State of Delaware and shall be construed and interpreted thereunder (without
regard to its conflict-of-law principles).

 

 

     16. Entire Agreement. This Agreement and the Plan set forth the entire
agreement and understanding of the parties hereto with respect to the grant and
exercise of this Option and the administration of the Plan and supersede all
prior agreements, arrangements, plans, and understandings relating to the grant
and exercise of this Option and the administration of the Plan.

     17. Amendment and Waiver. Except as provided in the Plan, this Agreement
may be amended, waived, modified, or canceled only by a written instrument
executed by the parties or, in the case of a waiver, by the party waiving
compliance.

     18. Acknowledgment of Receipt of Copy. By execution hereof, the Optionee
acknowledges having received a copy of the prospectus related to the Plan and
instructions on how to access a copy of the Plan.

 

 

     IN WITNESS WHEREOF, the Optionee and the Company have executed this
Agreement as of the date of grant specified at the beginning of this Agreement.

	 	 	 	 	 
	 	OPTIONEE

PIPER JAFFRAY COMPANIES

By

Its

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