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(2)(3)(4)(5)installments of $125,000 on each of March 31, 2004, 2005, 2006 and 2007, so long as Mr. Duffremains employed by Piper Jaffray on each payment date. See ‘‘— Cash Award Agreements inConnection with Our Spin-Off from U.S. Bancorp’’ below.The 2004 amount consists of a one-time distribution of $9,000 relating to a deferred compensationinvestment. The 2003 amount consists of tax reimbursement in connection with an award trip attendedby Mr. Fairman.Consists of amounts paid under the U.S. Bancorp Piper Jaffray Inc. Second Century Growth DeferredCompensation Plan (As Amended and Restated Effective September 30, 1998) and the U.S. BancorpPiper Jaffray Inc. Second Century 2000 Deferred Compensation Plan. Certain key employees wereeligible to participate in these plans. Under the plans, participants were granted a deferred bonusaward, which was deemed invested in certain measuring investments. Following a liquidity event (asdefined in the plans) for a particular measuring investment, the participant receives a benefit paymentbased on the deemed return to the participant with respect to the measuring investment as well aspayment of that portion of the participant’s account that was deemed invested. Participants maycontinue to receive payments under the plans until a liquidity or bankruptcy event has occurred withrespect to each measuring investment in which deferred bonus awards are deemed to be invested.Messrs. Peterson and Schnettler were granted deferred bonus awards under these plans in 1996, 1997,1998 and/or 2000, and received deferred bonus payouts of $19,093 and $48,580, respectively, in 2005.Mr. Schnettler’s 2005 amount also includes a $27,113 distribution from a separate deferredcompensation investment that had a liquidity event in 2005. The liquidity event was a one-time eventthat will result in two payments to Mr. Schnettler with the second payment expected to occur in 2007.The amount of the second payment is not currently determinable.The 2005, 2004 and 2003 awards of restricted stock were granted on February 21, 2006, February 22,2005, and February 12, 2004, respectively, as part of each executive officer’s annual incentivecompensation for the year indicated. The awards will vest in full on February 21, 2009, February 22,2008, and February 12, 2007, respectively. The restricted stock is subject to forfeiture prior to vesting inthe event the officer is terminated for cause or misappropriates confidential company information,participates in a business similar to Piper Jaffray, accepts a similar position with another company orsolicits employees, customers or clients of Piper Jaffray after certain terminations of employment withPiper Jaffray. Recipients have the right to receive dividends (if any) on and to vote the shares of PiperJaffray restricted stock they hold. The number of shares awarded to each executive officer in each yearwas determined by dividing specified dollar amounts representing a percentage of the individual’s totalbonus compensation for that year by (a) for 2005, $47.85, the closing price of our common stock onFebruary 21, 2006; (b) for 2004, $39.62, the closing price of our common stock on February 22, 2005;and (c) for 2003, $47.30, the average closing price of our common stock for the five consecutivetrading days ended February 11, 2004.As required by the rules of the Securities and Exchange Commission, the award value that is reportedin the Summary Compensation Table was determined by multiplying the closing sales price of oneshare of Piper Jaffray common stock on the grant date of the restricted stock by the number of sharesawarded. The value of each officer’s aggregate restricted stock holdings at December 31, 2005 (asdetermined based on a closing price of $40.40 for our common stock on December 30, 2005, the lastbusiness day of our fiscal year, and the number of restricted shares held as of December 31, 2005)were: for Mr. Duff, $1,673,004 and 41,411 shares; for Mr. Fairman, $243,006 and 6,015 shares; forMr. Peterson, $886,740 and 21,949 shares; for Mr. Piper, $289,345 and 7,162 shares; and forMr. Schnettler, $1,663,753 and 41,182 shares.The 2005, 2004 and 2003 entries for the number of securities underlying options reflect stock optionawards granted to the executive officers on February 21, 2006, February 22, 2005 and February 12,2004, respectively. These awards were part of the annual incentive compensation paid to the executiveofficers for 2005, 2004 and 2003 and had a value at the time of grant as follows: for Mr. Duff,$135,010, $202,504 and $542,694, respectively; for Mr. Fairman, $47,269, $24,036 and $79,032,18