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Exhibit 10.1

PIPER JAFFRAY COMPANIES

AMENDED AND RESTATED

2003 ANNUAL AND LONG-TERM INCENTIVE PLAN

SECTION 1. Purpose

     The purpose of the Plan is to promote the interests of the Company and its
stockholders by giving the Company a competitive advantage in attracting,
retaining and motivating employees, officers, consultants and Directors capable
of assuring the future success of the Company, to offer such persons incentives
that are directly linked to the profitability of the Company’s businesses and
increases in stockholder value, and to afford such persons an opportunity to
acquire a proprietary interest in the Company.

SECTION 2. Definitions

     As used in the Plan, the following terms shall have the meanings set forth
below.

     (a) “Affiliate” means any entity that, directly or indirectly through one
or more intermediaries, is controlled by, controlling or under common control
with the Company.

     (b) “Award” means any Stock Option, Stock Appreciation Right, Restricted
Stock, Restricted Stock Unit, Performance Award, Dividend Equivalent, Other
Stock Grant, Other Stock-Based Award or Tax Offset Bonus granted under the
Plan.

     (c) “Award Agreement” means any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan. Each Award
Agreement shall be subject to the applicable terms and conditions of the Plan
and any other terms and conditions (not inconsistent with the Plan) determined
by the Committee.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Code” means the Internal Revenue Code of 1986, as amended from time
to time, and any regulations promulgated thereunder.

     (f) “Change in Control” has the meaning set forth in Section 7.

     (g) “Committee” means a committee of Directors designated by the Board to
administer the Plan, which initially shall be the Compensation Committee of the
Board. The Committee shall be comprised of not less than such number of
Directors as shall be required to permit Awards granted under the Plan to
qualify under Rule 16b-3 and Section 162(m) of the Code, and each member of the
Committee shall be an Outside Director.

     (h) “Company” means Piper Jaffray Companies, a Delaware corporation.

     (i) “Covered Employee” means a Participant designated prior to the grant
of Restricted Stock, Restricted Stock Units or Performance Awards by the
Committee who is or may be a “covered employee” within the meaning of Section
162(m)(3) of the Code in the year in which any such Award is expected to be
taxable to such Participant.

 

 

     (j) “Director” means a member of the Board, including any Outside
Director.

     (k) “Dividend Equivalent” means any right granted under Section 6(e) of
the Plan.

     (l) “Effective Date” has the meaning set forth in Section 11 of the Plan.

     (m) “Eligible Individual” means any employee, officer, Director or
consultant providing services to the Company or any Affiliate, and prospective
employees and consultants who have accepted offers of employment or consultancy
from the Company or any Affiliate, whom the Committee determines to be an
Eligible Individual.

     (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time.

     (o) “Exercise Price” has the meaning set forth in Section 6(a) of the
Plan.

     (p) “Fair Market Value” means, with respect to any property (including,
without limitation, any Shares or other securities), the fair market value of
such property determined by such methods or procedures as shall be established
from time to time by the Committee. Notwithstanding the foregoing and except
as otherwise provided by the Committee, the Fair Market Value of a Share as of
a given date shall be the closing sales price for one Share on the New York
Stock Exchange or such other national securities market or exchange as may at
the time be the principal market for the Shares, or if the Shares were not
traded on such national securities market or exchange on such date, then on the
next preceding date on which the Shares are traded, all as reported by such
source as the Committee may select.

     (q) “Non-Qualified Stock Option” means any Stock Option that is not
designated as, or is not intended to qualify as, an “incentive stock option”
within the meaning of Section 422 of the Code.

     (r) “Outside Director” means any Director who qualifies as an “outside
director” within the meaning of Section 162(m) of the Code and as a
“non-employee director” within the meaning of Rule 16b-3.

     (s) “Participant” means an Eligible Individual designated to be granted an
Award under the Plan.

     (t) “Performance Award” means any right granted under Section 6(d) of the
Plan.

     (u) “Performance Goals” means the performance goals established by the
Committee in connection with the grant of an Award. In the case of Qualified
Performance-Based Awards, (i) such goals shall be based on the attainment of
specified levels of one or more of the following measures with respect to the
Company or such subsidiary, division or department of the Company for or within
which the Participant performances services: revenue growth; earnings before
interest, taxes, depreciation, and amortization; earnings before interest and
taxes; operating income; pre- or after- tax income; earnings per share; cash
flow; cash flow per share; return on equity; return on tangible equity; return
on invested capital; return on assets; economic value added (or an equivalent
metric); share price performance; total shareholder return; improvement in or
attainment of expense levels; improvement in or attainment of working

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capital levels and (ii) such Performance Goals shall be set by the
Committee within the time period prescribed by Section 162(m) of the Code and
related regulations. Such Performance Goals also may be based upon the
attaining of specified levels of Company performance under one or more of the
measures described above relative to the performance of other companies.

     (v) “Plan” means this Piper Jaffray Companies Amended and Restated 2003
Annual and Long-Term Incentive Plan, as set forth herein and as hereinafter
amended from time to time.

     (w) “Qualified Performance-Based Award” means an Award of Restricted
Stock, Restricted Stock Units or Performance Awards designated as such by the
Committee at the time of grant, based upon a determination that (i) the
recipient is or may be a Covered Employee in the year in which the Company
would expect to be able to claim a tax deduction with respect to such
Restricted Stock or Performance Awards and (ii) the Committee wishes such Award
to qualify for the Section 162(m) Exemption.

     (x) “Restricted Stock” means any Share granted under Section 6(c) of the
Plan.

     (y) “Restricted Stock Unit” means any unit granted under Section 6(c) of
the Plan evidencing the right to receive a Share (or a cash payment equal to
the Fair Market Value of a Share) at some future date.

     (z) “Rule 16b-3” means Rule 16b-3, as promulgated by the Securities and
Exchange Commission under Section 16(b) of the Exchange Act, as amended from
time to time.

     (aa) “Section 162(m) Exemption” means the exemption from the limitation on
deductibility imposed by Section 162(m) of the Code that is set forth in
Section 162(m)(4)(C) of the Code.

     (bb) “Share” or “Shares” means a share or shares of common stock, par
value $.01 per share, of the Company.

     (cc) “Stock Appreciation Right” means any right granted under Section 6(b)
of the Plan.

     (dd) “Stock Option” means a Non-Qualified Stock Option granted under
Section 6(a) of the Plan.

SECTION 3. Administration

     (a) Power and Authority of the Committee. The Plan shall be administered
by the Committee. Subject to the terms of the Plan and to applicable law, the
Committee shall have full power and authority to:

     (i) designate Participants;

     (ii) determine whether and to what extent any type (or types) of
Award is to be granted hereunder;

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     (iii) determine the number of Shares to be covered by (or the method
by which payments or other rights are to be determined in connection
with) each Award;

     (iv) determine the terms and conditions of any Award or Award
Agreement;

     (v) subject to Section 9 hereof, amend the terms and conditions of
any Award or Award Agreement and accelerate the vesting and/or
exercisability of any Stock Option or waive any restrictions relating to
any Award; provided, however, that (A) except for adjustments pursuant to
Section 4(c) of the Plan, in no event may any Stock Option granted under
this Plan be (x) amended to decrease the Exercise Price thereof, (y)
cancelled in conjunction with the grant of any new Stock Option with a
lower Exercise Price, or (z) otherwise subject to any action that would
be treated, for accounting purposes, as a “repricing” of such Stock
Option, unless such amendment, cancellation, or action is approved by the
stockholders of the Company to the extent required by applicable law and
stock exchange rules and (B) the Committee may not adjust upwards the
amount payable to a Covered Employee with respect to a Qualified
Performance-Based Award or waive or alter the Performance Goals
associated therewith in a manner that would violate Section 162(m) of the
Code.

     (vi) determine whether, to what extent and under what circumstances
the exercise price of Awards may be paid in cash, Shares, other
securities, other Awards or other property, or canceled, forfeited or
suspended;

     (vii) determine whether, to what extent and under what circumstances
cash, Shares, other securities, other Awards, other property and other
amounts payable with respect to an Award under the Plan shall be deferred
either automatically or at the election of the holder thereof or the
Committee;

     (viii) interpret and administer the Plan and any instrument or
agreement, including an Award Agreement, relating to the Plan;

     (ix) adopt, alter, suspend, waive or repeal such rules, guidelines
and practices and appoint such agents as it shall deem advisable or
appropriate for the proper administration of the Plan; and

     (x) make any other determination and take any other action that the
Committee deems necessary or desirable for the administration of the
Plan.

     Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to
the Plan or any Award or Award Agreement shall be within the sole discretion of
the Committee, may be made at any time and shall be final, conclusive and
binding upon all persons, including without limitation, the Company, its
Affiliates, subsidiaries, shareholders, Eligible Individuals and any holder or
beneficiary of any Award.

     (b) Action by the Committee; Delegation. Except to the extent prohibited
by applicable law or the applicable rules of a stock exchange, the Committee
may delegate all or any part of its duties and powers under the Plan to one or
more persons, including Directors or a

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committee of Directors, subject to such terms, conditions and limitations
as the Committee may establish in its sole discretion; provided, however, that
the Committee shall not delegate its powers and duties under the Plan (i) with
regard to officers or directors of the Company or any Affiliate who are subject
to Section 16 of the Exchange Act or (ii) in a manner that would cause an Award
designated as a Qualified Performance-Based Award not to qualify for, or to
cease to qualify for, the Section 162(m) Exemption; and provided, further, that
any such delegation may be revoked by the Committee at any time.

     (c) Power and Authority of the Board. Notwithstanding anything to the
contrary contained herein, except to the extent that the grant or exercise of
such authority would cause any Award or transaction to become subject to (or
lose an exemption under) the short-swing profit recovery provisions of Section
16 of the Exchange Act or cause an Award designated as a Qualified
Performance-Based Award not to qualify for, or to cease to qualify for, the
Section 162(m) Exemption, the Board may, at any time and from time to time,
without any further action of the Committee, exercise the powers and duties of
the Committee under the Plan. To the extent that any permitted action taken by
the Board conflicts with action taken by the Committee, the Board action shall
control.

SECTION 4. Shares Available for Awards

     (a) Shares Available. Subject to adjustment as provided in Section 4(c)
of the Plan, the aggregate number of Shares that may be issued under the Plan
shall be 4,100,000. Shares that may be issued under the Plan may be authorized
but unissued Shares or Shares re-acquired and held in treasury.
Notwithstanding the foregoing, the number of Shares available for granting
Restricted Stock and Restricted Stock Units shall not exceed 4,100,000, subject
to adjustment as provided in Section 4(c) of the Plan.

     (b) Accounting for Awards. For purposes of this Section 4, if an Award
entitles the holder thereof to receive or purchase Shares, the number of Shares
covered by such Award or to which such Award relates shall be counted on the
date of grant of such Award against the aggregate number of Shares available
for granting Awards under the Plan. Any Shares that are used by a Participant
as full or partial payment to the Company of the purchase price relating to an
Award, including in connection with the satisfaction of tax obligations
relating to an Award, shall again be available for granting Awards under the
Plan. In addition, if any Shares covered by an Award or to which an Award
relates are not purchased or are forfeited, or if an Award otherwise terminates
without delivery of any Shares, then the number of Shares counted against the
aggregate number of Shares available under the Plan with respect to such Award,
to the extent of any such forfeiture or termination, shall again be available
for granting Awards under the Plan.

     (c) Adjustments. In the event of any change in corporate capitalization
(including, but not limited to, a change in the number of Shares outstanding),
such as a stock split or a corporate transaction, such as any merger,
consolidation, separation, including a spin-off, or other distribution of stock
or property of the Company (including any extraordinary cash or stock
dividend), any reorganization (whether or not such reorganization comes within
the definition of such term in Section 368 of the Code) or any partial or
complete liquidation of the Company, the Committee or Board may make such
substitution or adjustments in the aggregate number and kind of shares reserved
for issuance under the Plan, and the maximum limitation upon Stock

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Options and Stock Appreciation Rights and other Awards to be granted to
any Participant, in the number, kind and Exercise Price of shares subject to
outstanding Stock Options and Stock Appreciation Rights, in the number and kind
of shares subject to other outstanding Awards granted under the Plan and/or
such other equitable substitution or adjustments as it may determine to be
appropriate in its sole discretion (including, without limitation, the
provision of an amount in cash in consideration for any such Awards); provided,
however, that the number of shares subject to any Award shall always be a whole
number. Without limiting the generality of the foregoing, in connection with
any Disaffiliation of a subsidiary of the Company, the Committee shall have the
authority to arrange for the assumption or replacement of Awards with new
awards based on shares of the affected subsidiary or by an affiliate of an
entity that controls the subsidiary following the Disaffiliation. For purposes
hereof, “Disaffiliation” of a subsidiary shall mean the subsidiary’s ceasing to
be a subsidiary of the Company for any reason (including, without limitation,
as a result of a public offering, spin-off, sale or other distribution or
transfer by the Company of the stock of the subsidiary).

     (d) Award Limitations. No more than 250,000 shares of Common Stock may be
subject to Qualified Performance-Based Awards granted to any Eligible
Individual in any fiscal year of the Company.

SECTION 5. Eligibility

     Any Eligible Individual shall be eligible to be designated a Participant.
In determining which Eligible Individuals shall receive an Award and the terms
of any Award, the Committee may take into account the nature of the services
rendered by the respective Eligible Individuals, their present and potential
contributions to the success of the Company or such other factors as the
Committee, in its discretion, shall deem relevant.

SECTION 6. Awards

     (a) Stock Options. The Committee is hereby authorized to grant Stock
Options (which may only be Non-Qualified Stock Options) to Eligible Individuals
with the following terms and conditions and with such additional terms and
conditions not inconsistent with the provisions of the Plan as the Committee
shall determine:

     (i) Exercise Price. The purchase price per Share purchasable under
a Stock Option (the “Exercise Price”) shall be determined by the
Committee; provided, however, that, unless otherwise determined by the
Committee, such Exercise Price shall not be less than 100% of the Fair
Market Value of a Share on the date of grant of such Stock Option.

     (ii) Option Term. The term of each Stock Option shall be fixed by
the Committee at the time of grant, but in no event shall be more than 10
years from the date of grant.

     (iii) Time and Method of Exercise. The Committee shall determine
the time or times at which a Stock Option may be exercised in whole or in
part and the method or methods by which, and the form or forms
(including, without limitation, cash, Shares, other securities, other
Awards or other property, or any combination thereof, having a Fair
Market Value on the exercise date equal to the applicable Exercise Price)
in which,

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payment of the Exercise Price with respect thereto may be made or
deemed to have been made.

     (b) Stock Appreciation Rights. The Committee is hereby authorized to
grant Stock Appreciation Rights to Eligible Individuals subject to the terms of
the Plan. Each Stock Appreciation Right granted under the Plan shall confer on
the holder upon exercise the right to receive, as determined by the Committee,
cash or a number of Shares equal to the excess of (A) the Fair Market Value of
one Share on the date of exercise (or, if the Committee shall so determine, at
any time during a specified period before or after the date of exercise) over
(B) the grant price of the Stock Appreciation Right as determined by the
Committee, which grant price shall not be less than 100% of the Fair Market
Value of one Share on the date of grant of the Stock Appreciation Right, unless
otherwise determined by the Committee. Subject to the terms of the Plan, the
grant price, term, methods of exercise, dates of exercise, methods of
settlement and any other terms and conditions (including conditions or
restrictions on the exercise thereof) of any Stock Appreciation Right shall be
as determined by the Committee, provided, that in no event shall the term of a
Stock Appreciation Right be longer than ten years.

     (c) Restricted Stock and Restricted Stock Units. The Committee is hereby
authorized to grant Restricted Stock and Restricted Stock Units to Eligible
Individuals with the following terms and conditions and with such additional
terms and conditions not inconsistent with the provisions of the Plan as the
Committee shall determine:

     (i) Restrictions. Shares of Restricted Stock and Restricted Stock
Units shall be subject to such restrictions as the Committee may impose
(including, without limitation, limitation on transfer, forfeiture
conditions, limitation on the right to vote a Share of Restricted Stock
or the right to receive any dividend or other right or property with
respect thereto), which restrictions may lapse separately or in
combination at such time or times, in such installments or otherwise as
the Committee may deem appropriate. The grant or vesting of Restricted
Stock and Restricted Stock Units may be performance-based or time-based
or both. Restricted Stock and Restricted Stock Units may be Qualified
Performance-Based Awards, in which event the grant or vesting, as
applicable, of such Restricted Stock or Restricted Stock Units shall be
conditioned upon the attainment of Performance Goals.

     (ii) Stock Certificates; Delivery of Shares.

          (A) Any Restricted Stock granted under the Plan shall be
evidenced in such manner as the Committee may deem appropriate,
including book-entry registration or issuance of one or more stock
certificates. Any certificate issued in respect of shares of
Restricted Stock shall be registered in the name of such
Participant and shall bear an appropriate legend referring to the
applicable Award Agreement and possible forfeiture of such shares
of Restricted Stock. The Committee may require that the
certificates evidencing such shares be held in custody by the
Company until the restrictions thereon shall have lapsed and that,
as a condition of any Award of Restricted Stock, the Participant
shall have delivered a stock power, endorsed in blank, relating to
the Shares covered by such Award.

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          (B) In the case of Restricted Stock Units, no Shares or other
property shall be issued at the time such Awards are granted. Upon
the lapse or waiver of restrictions and the restricted period
relating to Restricted Stock Units (or at such later time as may be
determined by the Committee), Shares or other cash or property
shall be issued to the holder of the Restricted Stock Units and
evidenced in such manner as the Committee may deem appropriate,
including book-entry registration or issuance of one or more stock
certificates.

     (iii) Forfeiture. Except as otherwise determined by the Committee,
upon a Participant’s termination of employment (as determined under
criteria established by the Committee) during the applicable restriction
period, all applicable Shares of Restricted Stock and Restricted Stock
Units at such time subject to restriction shall be forfeited and
reacquired by the Company; provided, however, that the Committee may,
when it finds that a waiver would be in the best interest of the Company,
waive in whole or in part any or all remaining restrictions with respect
to Shares of Restricted Stock or Restricted Stock Units.

     (d) Performance Awards. The Committee is hereby authorized to grant
Performance Awards to Eligible Individuals subject to the terms of the Plan. A
Performance Award granted under the Plan (i) may be denominated or payable in
cash, Shares (including, without limitation, Restricted Stock and Restricted
Stock Units), other securities, other Awards or other property and (ii) shall
confer on the holder thereof the right to receive payments, in whole or in
part, upon the achievement of such performance goals during such performance
periods as the Committee shall establish. Subject to the terms of the Plan,
the performance goals to be achieved during any performance period, the length
of any performance period, the amount of any Performance Award granted, the
amount of any payment or transfer to be made pursuant to any Performance Award
and any other terms and conditions of any Performance Award shall be determined
by the Committee. The Committee may, prior to or at the time of the grant,
designate Performance Awards as Qualified Performance-Based Awards, in which
event it shall condition the settlement thereof upon the attainment of
Performance Goals. Performance Awards denominated in cash that are payable to
any individual Participant with respect to any calendar year will be limited to
a maximum of $7,500,000.

     (e) Dividend Equivalents. The Committee is hereby authorized to grant
Dividend Equivalents to Eligible Individuals under which the Participant shall
be entitled to receive payments (in cash, Shares, other securities, other
Awards or other property as determined in the discretion of the Committee)
equivalent to the amount of cash dividends paid by the Company to holders of
Shares with respect to a number of Shares determined by the Committee. Subject
to the terms of the Plan, such Dividend Equivalents may have such terms and
conditions as the Committee shall determine.

     (f) Other Stock Grants. The Committee is hereby authorized, subject to
the terms of the Plan, to grant to Eligible Individuals Shares without
restrictions thereon as are deemed by the Committee to be consistent with the
purpose of the Plan.

     (g) Other Stock-Based Awards. The Committee is hereby authorized to grant
to Eligible Individuals, subject to the terms of the Plan, such other Awards
that are denominated or payable in, valued in whole or in part by reference to,
or otherwise based on or related to, Shares

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(including, without limitation, securities convertible into Shares), as
are deemed by the Committee to be consistent with the purpose of the Plan.
Shares or other securities delivered pursuant to a purchase right granted under
this Section 6(g) shall be purchased for such consideration, which may be paid
by such method or methods and in such form or forms (including, without
limitation, cash, Shares, other securities, other Awards or other property or
any combination thereof), as the Committee shall determine, the value of which
consideration, as established by the Committee, shall not be less than 100% of
the Fair Market Value of such Shares or other securities as of the date such
purchase right is granted, unless otherwise determined by the Committee.

     (h) Tax Offset Bonus. The Committee may grant to a Participant, at the
time of granting an Award or at any time thereafter, the right to receive a
cash payment in an amount specified by the Committee, to be paid at such time
or times (if ever) as the Award results in compensation income to the
Participant, for the purpose of assisting the Participant to pay the resulting
taxes, all as determined by the Committee and on such other terms and
conditions as the Committee shall determine (a “Tax Offset Bonus”).

     (i) General.

          (i) Consideration for Awards. Awards may be granted for no cash
consideration or for any cash or other consideration as determined by the
Committee and required by applicable law.

          (ii) Awards May Be Granted Separately or Together. Awards may, in
the discretion of the Committee, be granted either alone or in addition
to, in tandem with or in substitution for any other Award or any award
granted under any plan of the Company or any Affiliate. Awards granted
in addition to or in tandem with other Awards or in addition to or in
tandem with awards granted under any such other plan of the Company or
any Affiliate may be granted either at the same time as or at a different
time from the grant of such other Awards or awards.

          (iii) Forms of Payment Under Awards. Subject to the terms of the
Plan, payments or transfers to be made by the Company or an Affiliate
upon the grant, exercise or settlement of an Award may be made in such
form or forms as the Committee shall determine (including, without
limitation, cash, Shares, promissory notes (provided, however, that the
acceptance of such notes does not conflict with Section 402 of the
Sarbanes-Oxley Act of 2002), other securities, other Awards or other
property or any combination thereof), and may be made in a single payment
or transfer, in installments or on a deferred basis, in each case in
accordance with rules and procedures established by the Committee. Such
rules and procedures may include, without limitation, provisions for the
payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of Dividend Equivalents with respect
to installment or deferred payments.

          (iv) Limits on Transfer of Awards. No Award (other than Other Stock
Grants) and no right under any such Award shall be transferable by a
Participant otherwise than by will or by the laws of descent and
distribution and the Company shall not be required to recognize any
attempted assignment of such rights by any Participant; provided,

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however, that, if so determined by the Committee, a Participant may,
in the manner established by the Committee, designate a beneficiary or
beneficiaries to exercise the rights of the Participant and receive any
property distributable with respect to any Award upon the death of the
Participant; and provided, further, that, if so determined by the
Committee, a Participant may transfer a Non-Qualified Stock Option to any
Family Member (as such term is defined in the General Instructions to
Form S-8 (or successor to such Instructions or such Form)) at any time
that such Participant holds such Stock Option, whether directly or
indirectly or by means of a trust or partnership or otherwise, provided
that the Participant may not receive any consideration for such transfer,
the Family Member may not make any subsequent transfers other than by
will or by the laws of descent and distribution and the Company receives
written notice of such transfer. Except as otherwise determined by the
Committee, each Award or right under any such Award shall be exercisable
during the Participant’s lifetime only by the Participant or, if
permissible under applicable law, by the Participant’s guardian or legal
representative. Except as otherwise determined by the Committee, no
Award or right under any such Award may be pledged, alienated, attached
or otherwise encumbered, and any purported pledge, alienation, attachment
or other encumbrance thereof shall be void and unenforceable against the
Company or any Affiliate.

          (v) Term of Awards. Subject to Section 6(a)(ii) of the Plan, the
term of each Award shall be for such period as may be determined by the
Committee.

          (vi) Restrictions. All Shares or other securities delivered under
the Plan pursuant to any Award or the exercise thereof shall be subject
to such stop transfer orders and other restrictions as the Committee may
deem advisable under the Plan, applicable federal or state securities
laws and regulatory requirements, and the Committee may direct
appropriate stop transfer orders and cause other legends to be placed on
the certificates for such Shares or other securities to reflect such
restrictions.

SECTION 7. Change in Control

     (a) Impact of Event. Notwithstanding any other provision of the Plan to
the contrary, unless otherwise provided by the Committee in any Award
Agreement, in the event of a Change in Control:

     (i) Any Stock Options and Stock Appreciation Rights outstanding as of the
date of such Change in Control, and which are not then exercisable and vested,
shall become fully exercisable and vested.

     (ii) The restrictions and deferral limitations applicable to any
Restricted Stock and Restricted Stock Units shall lapse, and such Restricted
Stock and Restricted Stock Units shall become free of all restrictions and
become fully vested.

     (iii) All Performance Awards shall be considered to be earned and payable
in full, and any deferral or other restriction shall lapse and such Performance
Awards shall be settled in cash or Shares, as determined by the Committee, as
promptly as is practicable.

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     (iv) All restrictions on other Awards shall lapse and such Awards shall
become free of all restrictions and become fully vested.

     (b) Definition of Change in Control. For purposes of the Plan, a “Change
in Control” shall mean the happening of any of the following events:

     (i) An acquisition by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (1) the then outstanding shares of common stock of the
Company (the “Outstanding Company Common Stock”) or (2) the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting
Securities”); excluding, however, the following: (1) Any acquisition directly
from the Company, other than an acquisition by virtue of the exercise of a
conversion privilege unless the security being so converted was itself acquired
directly from the Company, (2) Any acquisition by the Company, (3) Any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any entity controlled by the Company, or (4) Any
acquisition pursuant to a transaction which complies with clauses (1), (2) and
(3) of subsection (iii) of this Section 7(b); or

     (ii) A change in the composition of the Board such that the individuals
who, as of the Effective Date, constitute the Board (such Board shall be
hereinafter referred to as the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board; provided, however, for purposes of
this Section 7(b), that any individual who becomes a member of the Board
subsequent to the Effective Date, whose election, or nomination for election by
the Company’s shareholders, was approved by a vote of at least a majority of
those individuals who are members of the Board and who were also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be
considered as though such individual were a member of the Incumbent Board; but,
provided, further, that any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board shall
not be so considered as a member of the Incumbent Board; or

     (iii) Consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company
(“Corporate Transaction”); excluding, however, such a Corporate Transaction
pursuant to which (1) all or substantially all of the individuals and entities
who are the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Corporate Transaction will beneficially own, directly or indirectly, more than
50% of, respectively, the outstanding shares of common stock, and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Corporate Transaction (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (2)
no Person (other than the Company, any employee benefit

11

 

plan (or related trust) of the Company or such corporation resulting from
such Corporate Transaction) will beneficially own, directly or indirectly, 20%
or more of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting
power of the outstanding voting securities of such corporation entitled to vote
generally in the election of directors except to the extent that such ownership
existed prior to the Corporate Transaction, and (3) individuals who were
members of the Incumbent Board will constitute at least a majority of the
members of the board of directors of the corporation resulting from such
Corporate Transaction; or

     (iv) The approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

SECTION 8. Income Tax Withholding

     No later than the date as of which an amount first becomes includible in
the gross income of a Participant for federal income tax purposes with respect
to any Award under the Plan, the Participant shall pay to the Company, or make
arrangements satisfactory to the Company regarding the payment of, any federal,
state, local or foreign taxes of any kind required by law to be withheld with
respect to such amount. The obligations of the Company under the Plan shall be
conditional on such payment or arrangements, and the Company and its Affiliates
shall, to the extent permitted by law, be entitled to take such action and
establish such procedures as it deems appropriate to withhold or collect all
applicable payroll, withholding, income or other taxes from such Participant.
In order to assist a Participant in paying all or a portion of the federal,
state, local and foreign taxes to be withheld or collected upon exercise or
receipt of (or the lapse of restrictions relating to) an Award, the Committee,
in its discretion and subject to such additional terms and conditions as it may
adopt, may permit the Participant to satisfy such tax obligation by (i)
electing to have the Company withhold a portion of the Shares or other property
otherwise to be delivered upon exercise or receipt of (or the lapse of
restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes or (ii) delivering to the Company Shares or other property
other than Shares issuable upon exercise or receipt of (or the lapse of
restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes, provided that, in either case, not more than the legally
required minimum withholding may be settled with Shares. Any such election
must be made on or before the date that the amount of tax to be withheld is
determined.

SECTION 9. Amendment and Termination

     (a) Amendments to the Plan. The Board may amend, alter, suspend,
discontinue or terminate the Plan at any time; provided, however, that,
notwithstanding any other provision of the Plan or any Award Agreement, without
the approval of the stockholders of the Company, no amendment, alteration,
suspension, discontinuation or termination shall be made that, absent such
approval:

     (i) requires stockholder approval under the rules or regulations of
the New York Stock Exchange, any other securities exchange or the
National Association of Securities Dealers, Inc. that are applicable to
the Company; or

12

 

     (ii) increases the number of Shares authorized under the Plan as
specified in Section 4(a) of the Plan.

     (b) Amendments to Awards. The Committee may waive any conditions of or
rights of the Company under any outstanding Award, prospectively or
retroactively. Except as otherwise provided herein or in an Award Agreement,
the Committee may not amend, alter, suspend, discontinue or terminate any
outstanding Award, prospectively or retroactively, if such action would
adversely affect the rights of the holder of such Award, without the consent of
the Participant or holder or beneficiary thereof or such amendment would cause
a Qualified Performance-Based Award to cease to qualify for the Section 162(m)
Exemption.

     (c) Correction of Defects, Omissions and Inconsistencies. The Committee
may correct any defect, supply any omission or reconcile any inconsistency in
the Plan or any Award in the manner and to the extent it shall deem desirable
to carry the Plan into effect.

SECTION 10. General Provisions

     (a) No Rights to Awards. No Eligible Individual or other person shall
have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity of treatment of Eligible Individuals or holders or
beneficiaries of Awards under the Plan. The terms and conditions of Awards
need not be the same with respect to any Participant or with respect to
different Participants.

     (b) Award Agreements. No Participant will have rights under an Award
granted to such Participant unless and until an Award Agreement shall have been
duly executed on behalf of the Company and, if requested by the Company, signed
by the Participant. In the event that any provision of an Award Agreement
conflicts with or is inconsistent in any respect with the terms of the Plan as
set forth herein or subsequently amended, the terms of the Plan shall control.

     (c) No Rights of Stockholders. Except with respect to Shares of
Restricted Stock as to which the Participant has been granted the right to
vote, neither a Participant nor the Participant’s legal representative shall
be, or have any of the rights and privileges of, a stockholder of the Company
with respect to any Shares issuable to such Participant upon the exercise or
payment of any Award, in whole or in part, unless and until such Shares have
been issued in the name of such Participant or such Participant’s legal
representative without restrictions thereto.

     (d) No Limit on Other Compensation Plans or Arrangements. Nothing
contained in the Plan shall prevent the Company or any Affiliate from adopting
or continuing in effect other or additional compensation arrangements, and such
arrangements may be either generally applicable or applicable only in specific
cases.

     (e) No Right to Employment. The Plan shall not constitute a contract of
employment, and adoption of the Plan or the grant of an Award shall not be
construed as giving a Participant the right to be retained as an employee of
the Company or an Affiliate, or a non-employee Director to be retained as a
Director, nor shall it affect in any way the right of the Company or an
Affiliate to terminate such employment at any time, with or without cause. In
addition, the Company or an Affiliate may at any time dismiss a Participant
from employment

13

 

free from any liability or any claim under the Plan or any Award, unless
otherwise expressly provided in the Plan or in any Award Agreement.

     (f) Governing Law. The Plan and all Awards granted and actions taken
thereunder shall be governed by and construed in accordance with the laws of
the State of Delaware, without reference to principles of conflict of laws
thereof.

     (g) Severability. If any provision of the Plan or any Award is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or
would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in
the determination of the Committee, materially altering the purpose or intent
of the Plan or the Award, such provision shall be stricken as to such
jurisdiction or Award, and the remainder of the Plan or any such Award shall
remain in full force and effect.

     (h) Application to Participants Outside the United States. In the event
an Award is granted to a Participant who is employed or providing services
outside the United States and who is not compensated from a payroll maintained
in the United States, the Committee may, in its sole discretion, modify the
provisions of the Plan as they pertain to such individual to comply with
applicable foreign law.

     (i) No Trust or Fund Created. Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate and an Eligible Individual or
any other person. To the extent that any person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the
Company or any Affiliate.

     (j) Other Benefits. No compensation or benefit awarded to or realized by
any Participant under the Plan shall be included for the purpose of computing
such Participant’s compensation under any compensation-based retirement,
disability, or similar plan of the Company unless required by law or otherwise
provided by such other plan.

     (k) No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash shall be paid in lieu of any fractional Shares or whether such
fractional Shares or any rights thereto shall be canceled, terminated or
otherwise eliminated.

     (l) Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not
be deemed in any way material or relevant to the construction or interpretation
of the Plan or any provision thereof.

     (m) Section 16 Compliance; Section 162(m) Administration. The Plan is
intended to comply in all respects with Rule 16b-3 or any successor provision,
as in effect from time to time, and in all events the Plan shall be construed
in accordance with the requirements of Rule 16b-3. If any Plan provision does
not comply with Rule 16b-3 as hereafter amended or interpreted, the provision
shall be deemed inoperative. The Board, in its absolute discretion, may
bifurcate the Plan so as to restrict, limit or condition the use of any
provision of the Plan with respect to

14

 

persons who are officers or directors subject to Section 16 of the
Exchange Act without so restricting, limiting or conditioning the Plan with
respect to other Eligible Individuals. The Company intends that all Stock
Options and Stock Appreciation Rights granted under the Plan to individuals who
are or who the Committee believes will be Covered Employees will constitute
“qualified performance-based compensation” within the meaning of Section 162(m)
of the Code.

     (n) Conditions Precedent to Issuance of Shares. Shares shall not be
issued pursuant to the exercise or payment of the Exercise Price or purchase
price relating to an Award unless such exercise or payment and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933,
as amended from time to time, the Exchange Act, the rules and regulations
promulgated thereunder, the requirements of any applicable stock exchange and
the Delaware General Corporation Law. As a condition to the exercise or
payment of the Exercise Price or purchase price relating to such Award, the
Company may require that the person exercising or paying the Exercise Price or
purchase price represent and warrant that the Shares are being purchased only
for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation and
warranty is required by law.

SECTION 11. Effective Date of Plan

     Upon its adoption by the Board, the Plan shall be submitted for approval
by the stockholders of the Company and shall be effective as of the date of
such approval (the “Effective Date”).

SECTION 12. Term of the Plan

     The Plan will terminate on the tenth anniversary of the Effective Date or
any earlier date of discontinuation or termination established pursuant to
Section 9 of the Plan. However, unless otherwise expressly provided in the
Plan or in an applicable Award Agreement, any Award theretofore granted may
extend beyond such date, and the authority of the Committee provided for
hereunder with respect to the Plan and any Awards, and the authority of the
Board to amend the Plan, shall extend beyond the termination of the Plan.

15exv10w2

 

Exhibit 10.2

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:
 
	 	 
	Date of Vesting

	 	No. of Shares as to Which Option

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

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

 

 

     (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.

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.

 

 

     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.

 

 

     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.

     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.

     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.

 

 

     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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