Document:

exv10w11

 

Exhibit 10.11

PIPER JAFFRAY COMPANIES

AMENDED AND RESTATED

2003 ANNUAL AND LONG-TERM INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

(Employee)

	 	 	 
	Full Name of Optionee:
	 	 
	 
	 	 
	No. of Shares Covered:

	 	Date of Grant:
	 
	 	 
	Exercise Price Per Share:

	 	Expiration Date:
	 
	 	 
	Exercise Schedule pursuant to Section 4:
	 	 
	 
	 	 
	 

	 	No. of Shares as to Which Option
	Date of Vesting

	 	Becomes Exercisable as of Such 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.

     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. Subject to the terms of the Plan and Sections 7 and 8 of this
Agreement, this Option shall become exercisable as to the number of Shares and on the dates
specified in the Exercise Schedule at the beginning of this Agreement. The Exercise Schedule shall
be cumulative; thus, to the extent this Option has not already been exercised and has not expired,
terminated, or been canceled, the Optionee may at any time, and from time to time, purchase any
portion of the Shares then purchasable under the Exercise Schedule.

     This Option may be exercised in full (notwithstanding the Exercise Schedule) under the
circumstances described in Section 8 of this Agreement if it has not expired prior thereto.

     5. Expiration. This Option shall expire at 4:00 p.m. Central Time on the earliest of:

          (a) the expiration date specified at the beginning of this Agreement;

          (b) termination of the Optionee’s employment with the Company or an Affiliate if such
termination is for “Cause” (as defined below), in which event this Option shall immediately expire.
“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 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; or

          (c) the last day of the period as of or following the termination of employment of the
Optionee during which this Option can be exercised, as specified in Section 7 of this Agreement.

 

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

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No one may exercise this Option after it has expired, notwithstanding any other provision of this
Agreement. This Option will continue to vest and be exercisable during the continuance of any
leave of absence approved by the Company or an Affiliate.

     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 a form
provided by the Company 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 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.

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     7. Employment Requirement. This Option may be exercised only while the Optionee
remains employed with the Company or an Affiliate, and only if the Optionee has been continuously
so employed since the date of this Agreement; provided that:

          (a) this Option may be exercised for 90 days after the date the Optionee’s employment by the
Company or an Affiliate ceases if such cessation of employment is for a reason other than death,
Disability (as defined below), Qualifying Retirement (as defined below) or termination for Cause,
but only to the extent that it was exercisable immediately prior to cessation of employment;

          (b) this Option may be exercised within three years after the Optionee’s employment by the
Company or an Affiliate ceases if (i) (A) such cessation of employment is because of the Employee’s
death or (B) the Optionee dies within 90 days after cessation of employment by the Company or an
Affiliate for any reason other than for Cause and (ii) the Optionee’s employment by the Company or
an Affiliate has been continuous between the date of this Option and a date not more than 90 days
prior to death;

          (c) this Option may be exercised within one year after the Optionee’s employment by the
Company or an Affiliate ceases if such cessation of employment is because of the Optionee’s
long-term disability (as defined in the Company’s long-term disability plan, a “Disability”) and
the Optionee’s employment by the Company or an Affiliate has been continuous between the date of
this Option and the date of such cessation. During the one-year exercise period provided by this
Section, this Option may be exercised only to the extent that it was exercisable immediately prior
to the Optionee’s cessation of employment; and

          (d) this Option may be exercised until the expiration date specified at the beginning of this
Agreement, and shall continue to vest in accordance with the Exercise Schedule at the beginning of
this Agreement, if the Optionee’s employment by the Company or an Affiliate ceases in connection
with a Qualifying Retirement. A “Qualifying Retirement” means cessation of the Optionee’s
employment by the Company or an Affiliate (excluding termination for Cause) when (i) such Optionee
is 55 years of age or older and (ii) such Optionee has five (5) or more years of qualifying service
(as defined in the Piper Jaffray Companies Retirement Plan) with the Company or an Affiliate.

Notwithstanding the above, this Option may not be exercised after it has expired.

     8. Acceleration of Option.

          (a) Death. If (i) the Optionee’s employment with the Company or an Affiliate is
terminated because of the Optionee’s death or (ii) the Optionee dies within 90 days after
termination of employment by the Company or an Affiliate for any reason other than for Cause, then
any portion of this Option that was not previously exercisable shall become immediately exercisable
in full.

          (b) Discretionary Acceleration. Notwithstanding any other provisions of this
Agreement to the contrary, the Committee may, in its sole discretion, declare at any time that this
Option shall be immediately exercisable.

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     9. 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.

     10. 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.

     11. 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.
Notwithstanding the foregoing, to the extent that any Option is otherwise considered to be deferred
compensation under Section 409A of the Code, any adjustment to such Option will comply with Section
409A of the Code (including current and future guidance issued by the Department of Treasury and/or
Internal Revenue Service).

     12. Tax Withholding. Delivery of Shares upon exercise of this Option shall be subject
to any required withholding taxes. As a condition precedent to receiving Shares upon exercise of
this Option, the Optionee may be required to pay to the Company, in accordance with the provisions
of the Plan, an amount equal to the amount of any required withholdings. 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.

     13. 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.

     14. Discontinuance of Employment. This Agreement shall not give the Optionee a right
to continued employment with the Company or any Affiliate, and the Company or Affiliate employing
the Optionee may terminate his or her employment and otherwise deal with the Optionee without
regard to the effect it may have upon him or her under this Agreement.

     15. 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.

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

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     17. 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).

     18. 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.

     19. 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.

     20. 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.

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     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	 	 
	 

	 	 	 	 	 	 

7exv10w15

 

Exhibit 10.15

PIPER JAFFRAY COMPANIES

SUMMARY OF NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM

     Directors who are not Piper Jaffray employees receive an annual cash retainer of $50,000 for
service on our Board of Directors and the committees of the Board. No separate meeting fees are
paid. The lead director and the chairperson of the Audit Committee each receives an additional
annual cash retainer of $8,000. The chairperson of each other standing committee of the Board each
receives an additional annual cash retainer of $5,000.

     In addition to the cash retainer, each non-employee director receives a grant of stock options
with a fair market value of $20,000 on the date of the director’s initial election to the Board.
Non-employee directors who will continue their service on the Board following an annual meeting of
shareholders receive a grant of stock options valued at $50,000 on the date of the annual meeting.
In both cases, the number of shares underlying the option is determined using the Black-Scholes
option-pricing model, and the option is exercisable immediately, has a 10-year term and has an
exercise price equal to the closing price of our common stock on the date of grant. The options
are granted under our Amended and Restated 2003 Annual and Long-Term Incentive Plan. These equity
awards are intended to help align the interests of our directors with those of our shareholders.
Non-employee directors who join our Board after the first month of a calendar year are paid pro
rata annual retainers and are awarded pro rata equity awards based on the period in which they
serve as directors during the year.

     Beginning with the 2005 calendar year, non-employee directors became eligible to participate
in the Piper Jaffray Companies Deferred Compensation Plan for Non-Employee Directors, which was
adopted by the Board in December 2004 as a way to facilitate increased equity ownership in the
company. The plan permits our non-employee directors to defer all or a portion of the cash fees
payable to them for their service as a director of Piper Jaffray for any calendar year. Amounts
deferred by a participating director are credited to a recordkeeping account established for the
director and deemed invested in shares of our common stock as of the date the deferred fees
otherwise would have been paid to the director. This deemed investment is measured in phantom
stock, and no shares of common stock are reserved, repurchased or issued pursuant to the plan. The
fair market value of all phantom stock credited to a director’s account will be paid out to the
director (or, in the event of the director’s death, to his or her beneficiary) in a single lump-sum
cash payment following the director’s cessation of service as a non-employee director. The amount
paid out will be determined based on the fair market value of the stock on the last day of the year
in which the director’s service with us terminates. Directors who elect to participate in the plan
are not required to pay income taxes on amounts deferred but will instead pay income taxes on the
amount of the lump-sum cash payment paid to the director (or his or her beneficiary) at the time of
such payment. Our obligations under the plan are unsecured general obligations to pay in the
future the value of the participant’s account pursuant to the terms of the plan.

 

 

     Non-employee directors also may
participate in our charitable gift matching program, pursuant
to which we will match an employee’s or director’s gifts to eligible organizations dollar for
dollar from a minimum of $50 up to an aggregate maximum of $1,000 per year. In addition, our
non-employee directors are reimbursed for reasonable out-of-pocket expenses incurred in connection
with their service on the Board and committees of the Board.

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