SECOND CENTURY 2000 DEFERRED COMPENSATION PLAN

 

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                                                                   EXHIBIT 10.10

 

                         U.S. BANCORP PIPER JAFFRAY INC.

 

                               SECOND CENTURY 2000

 

                           DEFERRED COMPENSATION PLAN

 

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                          U.S. BANCORP PIPER JAFFRAY INC.

                               SECOND CENTURY 2000

                           DEFERRED COMPENSATION PLAN

 

                                TABLE OF CONTENTS

 

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SECTION 1   INTRODUCTION.........................................................     1

 

   1.1.   ESTABLISHMENT..........................................................     1

   1.2.   PURPOSE................................................................     1

   1.3.   DEFINITIONS............................................................     1

      1.3.1.   Account...........................................................     1

      1.3.2.   Affiliate.........................................................     1

      1.3.3.   Beneficiary.......................................................     1

      1.3.4.   Chief Executive Officer...........................................     1

      1.3.5.   Company...........................................................     1

      1.3.6.   Director of Equity Capital Markets................................     1

      1.3.7.   ECM Investment Committee..........................................     1

      1.3.8.   ECM Operating Committee...........................................     1

      1.3.9.   Effective Date....................................................     1

      1.3.10. Liquidity Event...................................................     2

      1.3.11. Measuring Investment..............................................     2

      1.3.12. Participant.......................................................     2

      1.3.13. Plan..............................................................     2

      1.3.14. Plan Statement....................................................     2

      1.3.15. Plan Year.........................................................     2

   1.4.   RULES OF INTERPRETATION................................................     2

 

SECTION 2   PARTICIPATION........................................................     2

 

   2.1.   ELIGIBILITY AND SELECTION..............................................     2

   2.2.   NOTIFICATION...........................................................     3

 

SECTION 3   ACCOUNTS.............................................................     3

 

   3.1.   ACCOUNTS...............................................................     3

   3.2.   CREDITS TO ACCOUNTS....................................................     3

      3.2.1.   Bonus Credit......................................................     3

      3.2.2.   Interest Credit...................................................     3

       3.2.3.   Investment Credit.................................................     3

   3.3.   MEASURING INVESTMENTS..................................................     3

   3.4.   CHARGES TO ACCOUNTS....................................................     4

       3.4.1.   Investment Charge.................................................     4

      3.4.2.   Benefit Payment Charge............................................     4

      3.4.3.   Debt Set-Off Charge...............................................     4

 

SECTION 4   BENEFITS.............................................................     4

 

   4.1.   BENEFITS PAYABLE TO A PARTICIPANT......................................     4

   4.2.   ONE-YEAR WAITING PERIOD................................................     4

   4.3.   FORFEITURE OF INVESTMENT GAINS UPON COMPETITION........................     4

      4.3.1.   Exception for Certain Terminations................................     5

      4.3.2.   Exception for Change of Control...................................     5

   4.4.   FORFEITURE OF INVESTMENT GAINS UPON TERMINATION FOR CAUSE..............     7

   4.5.   NO REALLOCATION OF FORFEITED AMOUNTS...................................     8

   4.6.   BENEFITS PAYABLE TO A BENEFICIARY......................................     8

      4.6.1.   Death Before Full Payment.........................................     8

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      4.6.2.   Beneficiary Designation...........................................     8

      4.6.3.   Failure of Designation............................................     8

      4.6.4.   Definitions.......................................................     8

       4.6.5.   Special Rules.....................................................     9

 

SECTION 5   ADMINISTRATION.......................................................     9

 

   5.1.   ADMINISTRATION.........................................................     9

    5.2.   ECM INVESTMENT COMMITTEE...............................................     9

      5.2.1.   Appointment.......................................................     9

      5.2.2.   Organization......................................................    10

      5.2.3.   Authority.........................................................    10

      5.2.4.   Exercise of Authority.............................................    10

      5.2.5.   Limitation on Individual's Authority..............................    10

   5.3.   ECM OPERATING COMMITTEE................................................    10

      5.3.1.   Appointment.......................................................    10

      5.3.2.   Organization......................................................    10

      5.3.3.   Authority.........................................................    10

      5.3.4.   Exercise of Authority.............................................    10

      5.3.5.   Limitation on Individual's Authority..............................    11

   5.4.   BINDING EFFECT.........................................................    11

 

SECTION 6   AMENDMENT AND TERMINATION............................................    11

 

   6.1.   AMENDMENT..............................................................    11

   6.2.   TERMINATION............................................................    11

 

SECTION 7   GENERAL PROVISIONS...................................................    11

 

   7.1.   CONTRACTUAL RIGHT TO BENEFITS..........................................    11

   7.2.   BENEFITS NOT TRANSFERABLE..............................................    11

   7.3.   WITHHOLDING TAXES......................................................    11

   7.4.   EFFECT ON EMPLOYMENT RIGHTS AND OTHER BENEFIT PROGRAMS.................    12

   7.5.   BINDING EFFECT OF AGREEMENT............................................    12

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                         U.S. BANCORP PIPER JAFFRAY INC.

                               SECOND CENTURY 2000

                           DEFERRED COMPENSATION PLAN

 

                                    SECTION 1

 

                                  INTRODUCTION

 

1.1. ESTABLISHMENT. The Company hereby establishes this Plan effective February

28, 2000.

 

1.2. PURPOSE. The purpose of the Plan is to help motivate and retain the

employees who are key contributors to the success of the Equity Capital Markets

business of the Company by providing such employees with deferred bonus payments

measured by the performance of certain investments related to the focus of that

business.

 

1.3. DEFINITIONS. When the following terms are used herein with initial capital

letters, they shall have the following meanings:

 

         1.3.1. ACCOUNT -- the separate recordkeeping account (unfunded and

unsecured) maintained for each Participant in connection with his/her

participation in the Plan.

 

         1.3.2. AFFILIATE -- an affiliate of the Company within the meaning set

forth in Rule 405, promulgated pursuant to the Securities Act of 1933, as

amended.

 

         1.3.3. BENEFICIARY -- a person designated by a Participant (or

automatically by operation of this Plan Statement) to receive a benefit equal to

part or all of the balance of the Participant's Account in the event of the

Participant's death prior to full payment thereof.

 

         1.3.4. CHIEF EXECUTIVE OFFICER - the Chief Executive Officer of the

Company, as such officer may be designated from time to time.

 

         1.3.5. COMPANY -- U.S. Bancorp Piper Jaffray Inc., a Delaware

corporation.

 

         1.3.6. DIRECTOR OF EQUITY CAPITAL MARKETS -- the director of the Equity

Capital Markets business of the Company, as such director may be designated from

time to time.

 

         1.3.7. ECM INVESTMENT COMMITTEE -- the committee established under

Section 5.2 of the Plan Statement to make various investment decisions under the

Plan, as such committee may be constituted from time to time.

 

         1.3.8. ECM OPERATING COMMITTEE -- the committee established under

Section 5.3 of the Plan Statement to make various administrative decisions under

the Plan, as such committee may be constituted from time to time.

 

         1.3.9. EFFECTIVE DATE -- the Plan and this Plan Statement are effective

February 28, 2000.

 

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         1.3.10. LIQUIDITY EVENT -- any occurrence with respect to a Measuring

Investment that would provide its investors with liquidity, such as a cash

distribution, an initial public offering, a merger or other transaction in which

investors receive cash or securities.

 

         1.3.11. MEASURING INVESTMENT -- an investment related to the focus of

the Equity Capital Markets business of the Company that is designated by the ECM

Investment Committee as a device for measuring the value of all Participants'

Accounts.

 

          1.3.12. PARTICIPANT -- an employee of the Company who becomes a

Participant in the Plan under the rules of Section 2 of the Plan Statement.

 

         1.3.13. PLAN -- this unfunded deferred compensation plan established

and maintained by the Company for the benefit of the employees who are key

contributors to the success of the Equity Capital Markets business of the

Company. (As used herein, "Plan" refers to the deferred compensation plan

maintained by the Company and not to the document pursuant to which the Plan is

maintained. That document is referred to herein as the "Plan Statement.") The

name of the Plan is "U.S. Bancorp Piper Jaffray Inc. Second Century 2000

Deferred Compensation Plan."

 

         1.3.14. PLAN STATEMENT -- this document entitled "U.S. Bancorp Piper

Jaffray Inc. Second Century 2000 Deferred Compensation Plan, as the same may be

amended from time to time.

 

         1.3.15. PLAN YEAR - The twelve consecutive month period that begins

each February 28 and ends the following February 27. The first Plan Year begins

on the Effective Date.

 

1.4. RULES OF INTERPRETATION. The Plan is not subject to the Employee Retirement

Income Security Act of 1974 because it does not provide welfare benefits or

retirement income to employees and does not systematically defer bonus payments

to the termination of covered employment or beyond. Whenever appropriate, words

used herein in the singular may be read in the plural, or words used herein in

the plural may be read in the singular; and the words "hereof," "herein" or

"hereunder" or other similar compounds of the word "here" shall mean and refer

to the entire Plan Statement and not to any particular paragraph or section of

this Plan Statement unless the context clearly indicates to the contrary. The

titles given to the various sections of this Plan Statement are inserted for

convenience of reference only and are not part of this Plan Statement, and they

shall not be considered in determining the purpose, meaning or intent of any

provision hereof. Any reference in this Plan Statement to a statute shall be

considered also to mean and refer to the applicable regulations for that

statute; and any reference in this Plan Statement to a statute or regulation

shall be considered also to mean and refer to any subsequent amendment or

replacement of that statute or regulation. This Plan Statement has been executed

and delivered in the State of Minnesota and has been drawn in conformity to the

laws of that State and shall, except to the extent that federal law is

controlling, be construed and enforced in accordance with the laws of the State

of Minnesota (without regard to its conflict of law principles).

 

                                    SECTION 2

 

                                  PARTICIPATION

 

2.1. ELIGIBILITY AND SELECTION. On or before the Effective Date, the

Participants shall be selected and their deferred bonus awards shall be

determined as follows:

 

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         (a)       The Chief Executive Officer, in his/her sole discretion, shall

                  determine whether the Director of Equity Capital Markets will

                  participate in the Plan and, if so, the amount of his/her

                  deferred bonus award.

 

         (b)       The ECM Operating Committee, in its sole discretion, shall

                  select the Equity Capital Markets employees who will

                  participate in the Plan and shall determine the amount of the

                  deferred bonus award for each such employee. To be eligible

                  for selection, an employee must be a key contributor to the

                  success of the Equity Capital Markets business of the Company.

 

2.2. NOTIFICATION. The Company shall provide each employee so selected with (i)

written notification of his/her selection as a Participant and the amount of

his/her deferred bonus award under the Plan, and (ii) a copy of the Plan

Statement.

 

                                    SECTION 3

 

                                    ACCOUNTS

 

3.1. ACCOUNTS. The Company shall establish and maintain a separate Account for

each Participant. The Account shall be for recordkeeping purposes only and shall

not represent a trust fund or other segregation of assets for the benefit of the

Participant.

 

3.2. CREDITS TO ACCOUNTS. The Account so established and maintained for each

Participant shall be credited from time to time as provided in this Section 3.2.

 

         3.2.1. BONUS CREDIT. As of the Effective Date, the Account shall be

credited with the amount of the Participant's deferred bonus award, as

determined under Section 2.1 of the Plan Statement.

 

         3.2.2. INTEREST CREDIT. Commencing as of the Effective Date, any

portion of the Account balance that is not allocated to Measuring Investments

under Section 3.3 below shall be credited with interest at the rate applicable

from time to time to investors in the First American Prime Obligations Fund.

 

         3.2.3. INVESTMENT CREDIT. Commencing as of the Effective Date, any

portion of the Account balance that is allocated to Measuring Investments under

Section 3.3 below shall be credited with its share of the income and gains of

such Measuring Investments under such procedures as the ECM Investment

Committee, in its sole discretion, shall determine from time to time.

 

3.3. MEASURING INVESTMENTS. The ECM Investment Committee, in its sole

discretion, shall designate certain investments related to the focus of the

Equity Capital Markets business of the Company to be the Measuring Investments

for determining the value of all Participants' Accounts. For this purpose, it

shall be deemed that the Account balances of all the Participants are combined

and that such portion of the combined amount as the ECM Investment Committee, in

its sole discretion, shall determine is placed in each such designated

investment on the same terms and conditions as would be available to the Company

as an investor. Each Participant shall be deemed to have a pro rata share (based

on the ratio of his/her Account balance to the Account balances of all

Participants) in each such designated investment. The Measuring Investments are

solely a device for computing the amount of benefits to be paid to Participants

under the Plan, and Participants have no claim or right to any actual

investments.

 

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3.4. CHARGES TO ACCOUNTS. The Account so established and maintained for each

Participant shall be charged from time to time as provided in this Section 3.4.

 

         3.4.1. INVESTMENT CHARGE. Commencing as of the Effective Date, any

portion of the Account balance that is allocated to Measuring Investments under

Section 3.3 above shall be charged with its share of the losses and expenses of

such Measuring Investments under such procedures as the ECM Investment

Committee, in its sole discretion, shall determine from time to time.

 

         3.4.2. BENEFIT PAYMENT CHARGE. As of the date any benefit payment is

made to the Participant or to his/her Beneficiary under the Plan, the Account

shall be charged with the amount of such benefit payment.

 

         3.4.3. DEBT SET-OFF CHARGE. As of the date any debt is set-off against

the Account under Section 7.2 of the Plan Statement, the Account shall be

charged with the amount of such debt.

 

                                    SECTION 4

 

                                    BENEFITS

 

4.1. BENEFITS PAYABLE TO A PARTICIPANT. As soon as administratively feasible

after a Liquidity Event for a particular Measuring Investment, the Company shall

pay each Participant a benefit equal to the portion of his/her Account that is

deemed liquid as a result of such Liquidity Event, as the ECM Operating

Committee, in its sole discretion, shall determine. The benefit payment shall be

made in the form of cash or securities of the type received by investors in the

Measuring Investment or in a combination of cash and such securities, as the ECM

Operating Committee, in its sole discretion, shall determine.

 

4.2. ONE-YEAR WAITING PERIOD. Notwithstanding any other pr