Document:

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                                                                    Exhibit 10.1

                                    FORM OF

                           EMPLOYEE BENEFITS AGREEMENT

                                 by and between

                                  U.S. BANCORP

                                       and

                             PIPER JAFFRAY COMPANIES

                                   Dated as of
                                    [ ], 2003

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                                TABLE OF CONTENTS

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<S>         <C>                                                                                         <C>

ARTICLE I   DEFINITIONS...................................................................................1
1.1         Affiliate.....................................................................................1
1.2         Agreement.....................................................................................1
1.3         Ancillary Agreements..........................................................................1
1.4         Approved Leave of Absence.....................................................................1
1.5         Auditing Party................................................................................1
1.6         Award.........................................................................................2
1.7         Benefit Plan..................................................................................2
1.8         Close of the Distribution Date................................................................2
1.9         COBRA.........................................................................................2
1.10        Code..........................................................................................2
1.11        Committee.....................................................................................2
1.12        Covered Employees.............................................................................2
1.13        Distribution..................................................................................2
1.14        Distribution Date.............................................................................2
1.15        Distribution Year.............................................................................2
1.16        ERISA.........................................................................................2
1.17        Former Parent Employee........................................................................3
1.18        Former Piper Jaffray Employee.................................................................3
1.19        Health and Welfare Plans......................................................................3
1.20        HIPAA.........................................................................................3
1.21        Immediately after the Distribution Date.......................................................3
1.22        Independent Third Party.......................................................................3
1.23        Liabilities...................................................................................3
1.24        Match Date....................................................................................3
1.25        Non-parties...................................................................................3
1.26        NYSE..........................................................................................3
1.27        Option........................................................................................3
1.28        Parent........................................................................................3
1.29        Parent Common Stock...........................................................................3
1.30        Parent Employee...............................................................................4
1.31        Parent Entities...............................................................................4
1.32        Parent Executive Benefit Plans................................................................4
1.33        Parent Flexible Benefit Plans.................................................................4
1.34        Parent Long-Term Incentive Plans..............................................................4
1.35        Parent Non-Qualified Retirement Plan..........................................................4
1.36        Parent Non-Qualified Retirement Plan Participant..............................................4
1.37        Parent Opening Stock Value....................................................................4
1.38        Parent Pension Plan...........................................................................4
1.39        Parent Post-Retirement Welfare Benefits Plan..................................................4
1.40        Parent Savings Plan...........................................................................5
1.41        Parent Severance Pay Program..................................................................5
1.42        Parent Stock Value............................................................................5
1.43        Participating Company.........................................................................5

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1.44        Person........................................................................................5
1.45        Piper Jaffray.................................................................................5
1.46        Piper Jaffray Business........................................................................5
1.47        Piper Jaffray Common Stock....................................................................5
1.48        Piper Jaffray Employee........................................................................5
1.49        Piper Jaffray Entities........................................................................5
1.50        Piper Jaffray Executive Benefit Plans.........................................................6
1.51        Piper Jaffray Flexible Benefit Plan...........................................................6
1.52        Piper Jaffray Long-Term Incentive Plan........................................................6
1.53        Piper Jaffray Non-Qualified Retirement Plan...................................................6
1.54        Piper Jaffray Savings Plan....................................................................6
1.55        Piper Jaffray Savings Plan Trust..............................................................6
1.56        Restricted Stock..............................................................................6
1.57        Restricted Stock Unit.........................................................................6
1.58        Separation....................................................................................6
1.59        Separation and Distribution Agreement.........................................................6
1.60        Subsidiaries..................................................................................6
1.61        Tax Sharing Agreement.........................................................................6
1.62        Transferred Account Balances..................................................................7
1.63        Transition Date...............................................................................7
1.64        U.S...........................................................................................7

ARTICLE II  GENERAL PRINCIPLES............................................................................7
2.1         Employment of Piper Jaffray Employees.........................................................7
2.2         Assumption and Retention of Liabilities; Related Assets.......................................7
2.3         Piper Jaffray Participation in Parent Benefit Plans...........................................7
2.4         Service Recognition...........................................................................8
2.5         Approval by Parent as Sole Stockholder........................................................8

ARTICLE III DEFINED CONTRIBUTION AND DEFINED BENEFIT PLANS................................................8
3.1         Savings Plan..................................................................................8
3.2         Company Match.................................................................................8
3.3         Parent Pension Plan...........................................................................9
            (a)    Retention of Parent Pension Plan.......................................................9
            (b)    Commencement of Pension................................................................9
            (c)    Vesting................................................................................9

ARTICLE IV  HEALTH AND WELFARE PLANS.....................................................................10
4.1         General......................................................................................10
            (a)    Establishment of Piper Jaffray Health and Welfare Plans...............................10
            (b)    Retention of Sponsorship and Liabilities..............................................10
            (c)    Certain Specific Claims...............................................................10
4.2         Flexible Benefit Plan........................................................................11
4.3         Workers' Compensation Liabilities............................................................11
4.4         Payroll Taxes and Reporting of Compensation..................................................11
4.5         Parent Post-Retirement Welfare Benefits Plan.................................................12

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            (a)    Retention of Parent Post-Retirement Welfare Benefits Plan.............................12
            (b)    Piper Jaffray Post-Retirement Welfare Benefits Plans..................................12

4.6         COBRA and HIPAA Compliance...................................................................12

ARTICLE V   EXECUTIVE BENEFITS AND OTHER BENEFITS........................................................12
5.1         Assumption of Obligations....................................................................12
5.2         Parent Executive Incentive Plan and the Annual Incentive Plan................................13
            (a)    Piper Jaffray Bonus Awards............................................................13
            (b)    Parent Bonus Awards...................................................................13
5.3         Parent Long-Term Incentive Plans.............................................................13
            (a)    Parent Options........................................................................13
            (b)    Parent Restricted Stock...............................................................14
            (c)    Restricted Stock Units................................................................15
            (d)    Incentive Stock Options; Foreign Grants/Awards........................................16
            (e)    Miscellaneous Option and Other Award Terms............................................14
            (f)    Waiting Period for Exercisability of Options and Grant of Options and
                   Awards................................................................................15
            (g)    Restrictive Covenants.................................................................16
5.4         Registration Requirements....................................................................16
5.5         Parent Non-Qualified Retirement Plans........................................................16
5.6         Severance Plans..............................................................................16
5.7         Employee Cash Awards in Connection with the Distribution.....................................17

ARTICLE VI  GENERAL AND ADMINISTRATIVE...................................................................17
6.1         Sharing of Participant Information...........................................................17
6.2         Reasonable Efforts/Cooperation...............................................................18
6.3         No Third-Party Beneficiaries.................................................................18
6.4         Audit Rights With Respect to Information Provided............................................18
6.5         Fiduciary Matters............................................................................19
6.6         Consent of Third Parties.....................................................................19

ARTICLE VII MISCELLANEOUS................................................................................19
7.1         Effect If Distribution Does Not Occur........................................................19
7.2         Relationship of Parties......................................................................19
7.3         Affiliates...................................................................................20
7.4         Notices......................................................................................20
7.5         Incorporation of Separation and Distribution Agreement Provisions............................20

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SIGNATURES OF THE PARTIES

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                           EMPLOYEE BENEFITS AGREEMENT

         This EMPLOYEE BENEFITS AGREEMENT, dated as of [ ], 2003 is by and
between U.S. Bancorp, a Delaware corporation ("PARENT"), and Piper Jaffray
Companies, a Delaware corporation ("PIPER JAFFRAY"). Capitalized terms used
herein and not otherwise defined shall have the respective meanings assigned to
them in Article I hereof or assigned to them in the Separation and Distribution
Agreement (as defined below), as applicable.

         WHEREAS, the Board of Directors of Parent has determined that it is in
the best interests of Parent and its stockholders to separate Parent's existing
businesses into two independent companies;

         WHEREAS, in furtherance of the foregoing, Parent and Piper Jaffray have
entered into a Separation and Distribution Agreement, dated as of the date
hereof (the "SEPARATION AND DISTRIBUTION AGREEMENT"), and other ancillary
agreements that will govern certain matters relating to the Separation and the
relationship of Parent, Piper Jaffray and their respective Subsidiaries
following the Distribution Date; and

         WHEREAS, pursuant to the Separation and Distribution Agreement, Parent
and Piper Jaffray have agreed to enter into this Agreement for the purpose of
allocating assets, Liabilities and responsibilities with respect to certain
employee compensation and benefit plans and programs between and among them.

         NOW, THEREFORE, the parties hereto, intending to be legally bound,
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         For purposes of this Agreement, the following terms shall have the
following meanings:

          1.1 "AFFILIATE" has the meaning given that term in the Separation and
Distribution Agreement.

          1.2 "AGREEMENT" means this Employee Benefits Agreement, including all
the Schedules hereto.

          1.3 "ANCILLARY AGREEMENTS" has the meaning given that term in the
Separation and Distribution Agreement.

          1.4 "APPROVED LEAVE OF ABSENCE" means an absence from active service
(i) due to an individual's inability to perform his or her regular job duties by
reason of illness or injury and resulting in eligibility to receive benefits
pursuant to the terms of the Parent Short-Term Disability Program or the Parent
Long-Term Disability Program, or (ii) pursuant to an approved leave policy with
a guaranteed right of reinstatement.

          1.5 "AUDITING PARTY" has the meaning set forth in Section 6.4(a).

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          1.6 "AWARD," when immediately preceded by "Parent," means Parent
Restricted Stock and Parent Restricted Stock Units and, when immediately
preceded by "Piper Jaffray," means Piper Jaffray Restricted Stock and Restricted
Stock Units.

          1.7 "BENEFIT PLAN" shall mean, with respect to an entity or any of its
Subsidiaries, (a) each "employee welfare benefit plan" (as defined in Section
3(1) of ERISA) and all other employee benefits arrangements, policies or payroll
practices (including, without limitation, severance pay, sick leave, vacation
pay, salary continuation, disability, retirement, deferred compensation, bonus,
stock option or other equity-based compensation, hospitalization, medical
insurance or life insurance) sponsored or maintained by such entity or by any of
its Subsidiaries (or to which such entity or any of its Subsidiaries contributes
or is required to contribute) and (b) all "employee pension benefit plans" (as
defined in Section 3(2) of ERISA), occupational pension plan or arrangement or
other pension arrangements sponsored, maintained or contributed to by such
entity or any of its Subsidiaries (or to which such entity or any of its
Subsidiaries contributes or is required to contribute). When immediately
preceded by "Parent," Benefit Plan means any Benefit Plan sponsored, maintained
or contributed to by Parent or a Parent Entity. When immediately preceded by
"Piper Jaffray," Benefit Plan means any Benefit Plan sponsored, maintained or
contributed to by Piper Jaffray or any Piper Jaffray Entity. The Piper Jaffray
Benefit Plans in effect prior to the Distribution are listed in Schedule 1.7
hereto.

         1.8 "CLOSE OF THE DISTRIBUTION DATE" means 11:59:59 P.M., Eastern
Standard Time or Eastern Daylight Time (whichever shall then be in effect), on
the Distribution Date.

          1.9 "COBRA" means the continuation coverage requirements for "group
health plans" under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, and as codified in Code ss. 4980B and ERISA ss.ss. 601
through 608.

          1.10 "CODE" means the Internal Revenue Code of 1986, as amended, or
any successor federal income tax law. Reference to a specific Code provision
also includes any proposed, temporary or final regulation in force under that
provision.

          1.11 "COMMITTEE" has the meaning set forth in Section 5.3(a).

          1.12 "COVERED EMPLOYEES" has the meaning set forth in Section 4.2(i).

          1.13 "DISTRIBUTION" has the meaning given that term in the Separation
and Distribution Agreement.

          1.14 "DISTRIBUTION DATE" has the meaning given that term in the
Separation and Distribution Agreement.

          1.15 "DISTRIBUTION YEAR" means the calendar year during which the
Distribution Date occurs.

          1.16 "ERISA" means the Employee Retirement Income Security Act of
1974, as amended. Reference to a specific provision of ERISA also includes any
proposed, temporary or final regulation in force under that provision.

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          1.17 "FORMER PARENT EMPLOYEE" means any individual who is a former
employee of Parent or a Parent Entity as of the Distribution Date.

          1.18 "FORMER PIPER JAFFRAY EMPLOYEE" means any individual who is a
former employee of Piper Jaffray or a Piper Jaffray Entity as of the
Distribution Date.

          1.19 "HEALTH AND WELFARE PLANS" shall mean any plan, fund or program
which was established or is maintained for the purpose of providing for its
participants or their beneficiaries, through the purchase of insurance or
otherwise, medical, dental, surgical or hospital care or benefits, or benefits
in the event of sickness, accident, disability, death or unemployment, or
vacation benefits, apprenticeship or other training programs or day care
centers, scholarship funds, or prepaid legal services, including any such plan,
fund or program as defined in Section 3(1) of ERISA. When immediately preceded
by "Parent," Health and Welfare Plans means each Health and Welfare Plan that is
a Parent Benefit Plan. When immediately preceded by "Piper Jaffray," Health and
Welfare Plans means each Health and Welfare Plan that is a Piper Jaffray Benefit
Plan.

          1.20 "HIPAA" means the health insurance portability and accountability
requirements for "group health plans" under the Health Insurance Portability and
Accountability Act of 1996, as amended.

          1.21 "IMMEDIATELY AFTER THE DISTRIBUTION DATE" means on the first
moment of the day after the Distribution Date.

          1.22 "INDEPENDENT THIRD PARTY" has the meaning set forth in Section
5.3(f)(vi) of this Agreement.

          1.23 "LIABILITIES" has the meaning given that term in the Separation
and Distribution Agreement.

          1.24 "MATCH DATE" has the meaning set forth in Section 3.2.

          1.25 "NON-PARTIES" has the meaning set forth in Section 6.4(b).

          1.26 "NYSE" means the New York Stock Exchange, Inc.

          1.27 "OPTION," when immediately preceded by "Parent," means an option
(either nonqualified or incentive) to purchase shares of Parent Common Stock
pursuant to a Parent Long-Term Incentive Plan. When immediately preceded by
"Piper Jaffray," Option means an option (either nonqualified or incentive) to
purchase shares of Piper Jaffray Common Stock pursuant to the Piper Jaffray
Long-Term Incentive Plan.

          1.28 "PARENT" is defined in the preamble to this Agreement.

          1.29 "PARENT COMMON STOCK" has the meaning set forth in the Separation
and Distribution Agreement.

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          1.30 "PARENT EMPLOYEE" means any individual who, immediately prior to
the Close of the Distribution Date, is either actively employed by, or then on
Approved Leave of Absence from, any Parent Entity.

          1.31 "PARENT ENTITIES" means the members of the Parent Group, as
defined in the Separation and Distribution Agreement, and their respective
Subsidiaries and Affiliates, excluding any business or operations (whether
current or historical, regardless of whether discontinued or sold) that are
included in the Piper Jaffray Business.

          1.32 "PARENT EXECUTIVE BENEFIT PLANS" means the executive benefit and
nonqualified plans, programs, and arrangements established, sponsored,
maintained, or agreed upon, by any Parent Entity for the benefit of employees
and former employees of any Parent Entity before the Close of the Distribution
Date.

          1.33 "PARENT FLEXIBLE BENEFIT PLANS" means the Parent Flexible Benefit
Plan, as in effect as of the time relevant to the applicable provision of this
Agreement.

          1.34 "PARENT LONG-TERM INCENTIVE PLANS" means any of the U.S. Bancorp
2001 Stock Incentive Plan, the U.S. Bancorp 2001 Employee Stock Incentive Plan,
the U.S. Bancorp 1999 Stock Incentive Plan, the Firstar Corporation 1999
Employee Stock Incentive Plan, the Firstar Corporation 1998 Employee Stock
Incentive Plan, the U.S. Bancorp 1998 Executive Stock Incentive Plan, the U.S.
Bancorp 1997 Stock Incentive Plan, the Star Banc Corporation 1996 Starshare
Stock Incentive Plan for Employees, the 1991 Performance and Equity Incentive
Plan of the former U.S. Bancorp, the Piper Jaffray 1993 Omnibus Stock Plan, the
U.S. Bancorp 1991 Executive Stock Incentive Plan and any other stock incentive
plan of Parent, all as in effect as of the time relevant to the applicable
provisions of this Agreement.

          1.35 "PARENT NON-QUALIFIED RETIREMENT PLAN" means the U.S. Bancorp
Non-Qualified Retirement Plan in effect as of the time relevant to the
applicable provision of this Agreement.

          1.36 "PARENT NON-QUALIFIED RETIREMENT PLAN PARTICIPANT" means any
individual who has an accrued balance in the Parent Non-Qualified Retirement
Plan as of the Distribution Date.

          1.37 "PARENT OPENING STOCK VALUE" means the opening per-share price of
Parent Common Stock as listed on the NYSE as of the opening of trading on the
first trading day following the Distribution Date; PROVIDED, HOWEVER, that if
the Distribution occurs at a time when the NYSE is open for trading, Parent
Opening Stock Value shall mean the price at which Parent Common Stock trades as
of the moment immediately after the Distribution; and PROVIDED, FURTHER, that if
the Distribution occurs prior to opening of trading on the NYSE on the
Distribution Date, the Parent Opening Stock Value shall mean the price at which
Parent Common Stock first trades on the Distribution Date.

          1.38 "PARENT PENSION PLAN" means the U.S. Bancorp Pension Plan in
effect as of the time relevant to the applicable provision of this Agreement.

         1.39 "PARENT POST-RETIREMENT WELFARE BENEFITS PLAN" means the Health
and Welfare Plan of Parent providing medical, dental or death benefits for
retirees.

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         1.40 "PARENT SAVINGS PLAN" means the U.S. Bancorp 401(k) Savings Plan
as in effect as of the time relevant to the applicable provision of this
Agreement.

          1.41 "PARENT SEVERANCE PAY PROGRAM" means the U.S. Bancorp Severance
Pay Program and the Parent Severance Pay Excess Plan, including any severance
benefits payable under the U.S. Bancorp Comprehensive Welfare Benefit Plan or
any component Benefit Plans thereof such as the U.S. Bancorp Comprehensive
Welfare Benefit Middle Management Change in Control Excess Plan, each as in
effect as of the time relevant to the applicable provision of this Agreement.

          1.42 "PARENT STOCK VALUE" means the closing per-share price of the
Parent Common Stock trading "regular way with due bills" as listed on the NYSE
as of 4:00 P.M., Eastern Standard Time or Eastern Daylight Time (whichever shall
then be in effect) on the Distribution Date; PROVIDED, HOWEVER, that if the
Distribution occurs at a time when the NYSE is open for trading, Parent Stock
Value shall mean the price at which Parent Common Stock trades "regular way with
due bills" as of the moment immediately prior to the Distribution; and,
PROVIDED, FURTHER, that if the Distribution occurs prior to opening of trading
on the NYSE on the Distribution Date, Parent Stock Value shall mean the closing
per-share price of the Parent Common Stock trading "regular way with due bills"
as listed on the NYSE as of 4:00 P.M., Eastern Standard Time or Eastern Daylight
Time (whichever shall then be in effect) on the trading date immediately
preceding the Distribution Date.

          1.43 "PARTICIPATING COMPANY" means (a) Parent, (b) any Person (other
than an individual) that Parent has approved for participation in, and which is
participating in, a plan sponsored by any Parent Entity, and (c) any Person
(other than an individual) which, by the terms of such a plan, participates in
such plan or any employees of which, by the terms of such plan, participate in
or are covered by such plan.

          1.44 "PERSON" has the meaning given that term in the Separation and
Distribution Agreement.

          1.45 "PIPER JAFFRAY" is defined in the preamble to this Agreement.

          1.46 "PIPER JAFFRAY BUSINESS" has the meaning given to that term in
the Separation and Distribution Agreement.

          1.47 "PIPER JAFFRAY COMMON STOCK" means the Piper Jaffray Common Stock
as defined in the Separation and Distribution Agreement.

          1.48 "PIPER JAFFRAY EMPLOYEE" means any individual who, immediately
prior to the Distribution, is either actively employed by, or then on Approved
Leave of Absence from, a Piper Jaffray Entity.

          1.49 "PIPER JAFFRAY ENTITIES" means the Piper Jaffray Group as defined
in the Separation and Distribution Agreement and any business or operations
(whether current or historical regardless of whether discontinued or sold)
included in the Piper Jaffray Business.

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          1.50 "PIPER JAFFRAY EXECUTIVE BENEFIT PLANS" means the executive
benefit and nonqualified plans, programs, and arrangements established,
sponsored, maintained, or agreed upon, by any Piper Jaffray Entity for the
benefit of employees and former employees of any Piper Jaffray Entity before the
Close of the Distribution Date.

          1.51 "PIPER JAFFRAY FLEXIBLE BENEFIT PLAN" means the flexible benefit
plan to be established by Piper Jaffray pursuant to Section 4.2 of this
Agreement as in effect as of the time relevant to the applicable provision of
this agreement.

          1.52 "PIPER JAFFRAY LONG-TERM INCENTIVE PLAN" means the long-term
incentive plan or program to be established by Piper Jaffray, effective
immediately prior to the Distribution Date, in connection with the treatment of
Awards as described in Article V.

          1.53. "PIPER JAFFRAY NON-QUALIFIED RETIREMENT PLAN" has the meaning
set forth in Section 5.5.

          1.54 "PIPER JAFFRAY SAVINGS PLAN" means the 401(k) and profit sharing
plan to be established by Piper Jaffray pursuant to Section 3.1 of this
Agreement, as in effect as of the time relevant to the applicable provision of
this agreement.

          1.55 "PIPER JAFFRAY SAVINGS PLAN TRUST" means a trust relating to the
Piper Jaffray Savings Plan intended to qualify under Section 401(a) and be
exempt under Section 501(a) of the Code.

          1.56 "RESTRICTED STOCK," when immediately preceded by "Parent," means
shares of Parent Common Stock issued under a Parent Long-Term Incentive Plan
subject to forfeiture in the event that certain terms and conditions are not
satisfied and, when immediately preceded by "Piper Jaffray," means shares of
Piper Jaffray Common Stock issued under the Piper Jaffray Long-Term Incentive
Plan subject to forfeiture in the event that certain terms and conditions are
not satisfied.

          1.57 "RESTRICTED STOCK UNIT" when immediately preceded by "Parent,"
means units representing hypothetical shares of Parent Common Stock issued under
a Parent Benefit Plan and, when immediately preceded by "Piper Jaffray," means
units representing hypothetical shares of Piper Jaffray Common Stock issued
under the Piper Jaffray Long-Term Incentive Plan.

          1.58 "SEPARATION" has the meaning given that term in the Separation
and Distribution Agreement.

          1.59 "SEPARATION AND DISTRIBUTION AGREEMENT" is defined in the
preamble to this Agreement.

          1.60 "SUBSIDIARIES" has the meaning given that term in the Separation
and Distribution Agreement.

          1.61 "TAX SHARING AGREEMENT" means the Tax Sharing Agreement entered
into as of the date hereof between Parent and Piper Jaffray.

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          1.62 "TRANSFERRED ACCOUNT BALANCES" has the meaning set forth in
Section 4.2(i).

          1.63 "TRANSITION DATE" has the meaning set forth in Section 4.1(a).

          1.64 "U.S." means the 50 United States of America and the District of
Columbia.

                                   ARTICLE II
                               GENERAL PRINCIPLES

          2.1 EMPLOYMENT OF PIPER JAFFRAY EMPLOYEES. All Piper Jaffray Employees
shall continue to be employees of Piper Jaffray or another Piper Jaffray Entity,
as the case may be, immediately after the Distribution.

          2.2 ASSUMPTION AND RETENTION OF LIABILITIES; RELATED ASSETS.

             (a) As of the Distribution Date, except as expressly provided in
this Agreement, the Parent Entities shall assume or retain and Parent hereby
agrees to pay, perform, fulfill and discharge, in due course in full (i) all
Liabilities under all Parent Benefit Plans, (ii) all Liabilities with respect to
the employment or termination of employment of all Parent Employees, Former
Parent Employees and their dependents and beneficiaries, and other service
providers (including any individual who is, or was, an independent contractor,
temporary employee, temporary service worker, consultant, freelancer, agency
employee, leased employee, on-call worker, incidental worker, or nonpayroll
worker of any Parent Entity or in any other employment, non-employment, or
retainer arrangement, or relationship with any Parent Entity), in each case to
the extent arising in connection with or as a result of employment with or the
performance of services to any Parent Entity, and (iii) any other Liabilities
expressly assigned to Parent under this Agreement. All assets held in trust to
fund the Parent Benefit Plans and all insurance policies funding the Parent
Benefit Plans shall be Parent Assets (as defined in the Separation and
Distribution Agreement), except to the extent specifically provided otherwise in
this Agreement.

             (b) From and after the Distribution Date, except as expressly
provided in this Agreement, Piper Jaffray and the Piper Jaffray Entities shall
assume or retain, as applicable, and Piper Jaffray hereby agrees to pay,
perform, fulfill and discharge, (i) all Liabilities under all Piper Jaffray
Benefit Plans, (ii) all Liabilities with respect to the employment or
termination of employment of all Piper Jaffray Employees and other service
providers (including any individual who is, or was, an independent contractor,
temporary employee, temporary service worker, consultant, freelancer, agency
employee, leased employee, on-call worker, incidental worker, or nonpayroll
worker of Piper Jaffray or a Piper Jaffray Entity or in any other employment,
non-employment, or retainer arrangement, or relationship with Piper Jaffray or a
Piper Jaffray Entity), and their dependents and beneficiaries, and (iii) all
Liabilities that are expressly assigned to Piper Jaffray or any Piper Jaffray
Entity under this Agreement.

          2.3 PIPER JAFFRAY PARTICIPATION IN PARENT BENEFIT PLANS. Except as
expressly provided in this Agreement, effective as of the Close of the
Distribution Date, Piper Jaffray and each other Piper Jaffray Entity shall cease
to be a Participating Company in any Parent Benefit Plan, and

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Parent and Piper Jaffray shall take all necessary action before the Distribution
Date to effectuate such cessation as a Participating Company.

          2.4 SERVICE RECOGNITION. Piper Jaffray shall cause the Piper Jaffray
Benefit Plans with respect to which service is a relevant factor to credit Piper
Jaffray Employees who are employed by Piper Jaffray immediately following the
Distribution with service before the Distribution Date recognized by Parent
under the terms of Parent Benefit Plans with respect to which service is a
relevant factor, except (a) to the extent duplication of benefits would result
and (b) for purposes of benefit accruals under any defined benefit pension plan.

         2.5 Approval by Parent as Sole Stockholder. Prior to the Distribution,
Parent shall cause Piper Jaffray to adopt the Piper Jaffray 2003 Long-Term
Incentive Plan substantially in the form attached hereto as Exhibit A.

                                   ARTICLE III
                 DEFINED CONTRIBUTION AND DEFINED BENEFIT PLANS

         3.1 SAVINGS PLAN. As soon as practicable (and in no event later than 30
days) after the Distribution Date, Piper Jaffray shall establish the Piper
Jaffray Savings Plan and the Piper Jaffray Savings Trust. As soon as practical
following the establishment of the Piper Jaffray Savings Plan and the Piper
Jaffray Savings Trust, Parent shall cause the accounts (including any
outstanding loan balances) of the Piper Jaffray Employees who elect a transfer
under the Parent Savings Plan to be transferred to the Piper Jaffray Savings
Plan and the Piper Jaffray Savings Trust in cash or such other assets as
mutually agreed by Parent and Piper Jaffray, and Piper Jaffray shall cause the
Piper Jaffray Savings Plan to assume and be solely responsible for all
Liabilities under the Piper Jaffray Savings Plan to or relating to Piper Jaffray
Employees who elect a transfer of their accounts (to the extent assets related
to those accounts are transferred from the Parent Savings Plan). Piper Jaffray
will cause the Piper Jaffray Savings Plan to accept direct and indirect
rollovers from the Parent Savings Plan of any account balances of such Piper
Jaffray Employees in accordance with the applicable provisions of the Code.
Notwithstanding the foregoing, the Piper Jaffray Savings Plan shall not be
required to accept a rollover of any Parent Common Stock that is held in the
accounts of Piper Jaffray Employees. Any outstanding participant loans to Piper
Jaffray Employees who elect a transfer under the Parent Savings Plan of their
account to the Piper Jaffray Savings Plan shall be transferred to the Piper
Jaffray Savings Plan in kind. Parent and Piper Jaffray agree to cooperate in
making all appropriate filings and taking all reasonable actions required to
implement the provisions of this Section 3.1; provided that Piper Jaffray
acknowledges that it will be responsible for complying with any requirements and
applying for any determination letters with respect to the Piper Jaffray Savings
Plan.

         3.2 COMPANY MATCH. Prior to the Distribution, Parent shall amend the
Parent Savings Plan to provide for the making of matching contributions under
the Parent Savings Plan to Piper Jaffray Employees for contributions made to the
Parent Savings Plan by such Piper Jaffray Employees on or prior to the
Distribution Date. As soon as possible following the Distribution Date (the
"MATCH DATE"), Parent shall, to the extent (a) permissible under Treasury
regulations and (b) such contributions are deemed to be qualified contributions,
pursuant to compliance testing of the Parent Savings Plan, contribute to
accounts of Piper Jaffray Employees under the

                                      -8-

<Page>

Parent Savings Plan all matching contributions, if any, due to the Piper Jaffray
Employees who participate in the Parent Savings Plan through the Distribution
Date pursuant to the terms and conditions of the Parent Savings Plan. As soon as
practicable following the end of the year in which the Distribution Date occurs,
Piper Jaffray shall, to the extent (a) permissible under Treasury regulations
and (b) such contributions are deemed to be qualified contributions, pursuant to
compliance testing of the Piper Jaffray Savings Plan, contribute to the Piper
Jaffray Savings Plan all matching contributions, if any, due under the terms and
conditions of the Piper Jaffray Savings Plan to the Piper Jaffray Employees who
participate in the Piper Jaffray Savings Plan from the Distribution Date through
the end of the year in which the Distribution Date occurs.

     3.3    PARENT PENSION PLAN.

            (a)    RETENTION OF PARENT PENSION PLAN. Effective as of the Close
of the Distribution Date, Parent shall retain:

                   (i)    sponsorship of the Parent Pension Plan and its related
trust and any other trust or other funding arrangement established or maintained
with respect to such plan, or any assets held as of the Distribution Date with
respect to such plan; and

                   (ii)   all Liabilities relating to, arising out of or
resulting from claims incurred by or on behalf of any individuals with respect
to benefits under the Parent Pension Plan.

            (b)    COMMENCEMENT OF PENSION. Effective as of the Close of the
Distribution Date, each Piper Jaffray Employee who is a participant in the
Parent Pension Plan shall be deemed to have terminated employment with Parent
and, to the extent vested in his or her benefit under the plan, shall be
eligible to request distribution of his or her pension in accordance with the
terms of such plan.

            (c)    VESTING. Following the Close of the Distribution Date, each
Piper Jaffray Employee who is a participant in the Parent Pension Plan as of
immediately prior to the Distribution Date and not vested in his or her benefit
under the Parent Pension Plan as of the Distribution Date shall continue to vest
in his or her benefit under the Parent Pension Plan for so long as such Piper
Jaffray Employee remains employed with Piper Jaffray or a Piper Jaffray Entity,
but upon termination of such employment such Piper Jaffray Employee's benefit
shall no longer continue to vest. Piper Jaffray shall notify Parent on a
quarterly basis at the end of each quarter following the Distribution Date of
any participant in the Parent Pension Plan who is not vested in his or her
benefit under the Parent Pension Plan who has terminated employment with Piper
Jaffray and the Piper Jaffray Entities.

                                       -9-
<Page>

                                   ARTICLE IV
                            HEALTH AND WELFARE PLANS

     4.1    GENERAL.

            (a)    ESTABLISHMENT OF PIPER JAFFRAY HEALTH AND WELFARE PLANS.
Effective as of January 1, 2004 (the "TRANSITION DATE"), Piper Jaffray shall
adopt Health and Welfare Plans for the benefit of Piper Jaffray Employees, and
Piper Jaffray shall be responsible for all Liabilities relating to, arising out
of or resulting from health and welfare coverage or claims incurred by or on
behalf of Piper Jaffray Employees or their covered dependents under the Piper
Jaffray Health and Welfare Plans on or after the Transition Date.

            (b)    RETENTION OF SPONSORSHIP AND LIABILITIES. As of immediately
prior to the Transition Date, Parent shall retain:

                   (i)    sponsorship of all Parent Health and Welfare Plans and
any trust or other funding arrangement established or maintained with respect to
such plans, including any "voluntary employee's beneficiary association", or any
assets held as of the Transition Date with respect to such plans;

                   (ii)   all Liabilities relating to, arising out of, or
resulting from health and welfare coverage or claims incurred by or on behalf of
Parent Employees, Former Parent Employees, Piper Jaffray Employees and Former
Piper Jaffray Employees, or their covered dependents under the Parent Health and
Welfare Plans on or before the Transition Date; and

                   (iii)  except as provided in Section 4.1(c), all Liabilities
relating to health and welfare coverage or claims incurred by or on behalf of
Parent Employees, Former Parent Employees and Former Piper Jaffray Employees or
their covered dependents on or after the Transition Date under the Parent Health
and Welfare Plans.

Except as provided in Section 4.1(c), Parent shall not assume any Liability
relating to health and welfare claims incurred by or on behalf of Piper Jaffray
Employees or their covered dependents on or after the Transition Date, and such
claims shall be satisfied pursuant to Section 4.1(a). Except as provided in
Section 4.1(c), a claim or Liability (1) for medical, dental, vision and/or
prescription drug benefits shall be deemed to be incurred upon the rendering of
health services giving rise to the obligation to pay such benefits; (2) for life
insurance and accidental death and dismemberment and business travel accident
insurance benefits and workers' compensation benefits shall be deemed to be
incurred upon the occurrence of the event giving rise to the entitlement to such
benefits; (3) for salary continuation or other disability benefits shall be
deemed to be incurred upon the effective date of an individual's disability
giving rise to the entitlement to such benefits; and (4) for a period of
continuous hospitalization shall be deemed to be incurred on the date of
admission to the hospital.

            (c)    CERTAIN SPECIFIC CLAIMS. Parent shall be responsible for all
Liabilities under the applicable Parent Health and Welfare Plan that relate to,
arise out of or result from any period of continuous hospitalization of a Piper
Jaffray Employee or Former Piper Jaffray Employee or his or her covered
dependent that begins before the Transition Date under a Parent Health and
Welfare Plan and continues after the Transition Date; PROVIDED, HOWEVER, that
Parent

                                      -10-
<Page>

shall not be responsible for Liabilities in excess of the benefits otherwise
provided by the terms of the respective plans. Parent also shall be responsible
for all Liabilities under the applicable Parent Health and Welfare Plan that
relate to, arise out of or result from any denture work, bridge work, crown
installation or root canal therapy for a Piper Jaffray Employee, Former Piper
Jaffray Employee or his or her covered dependent for which preparatory dental
services have been rendered under a Parent Health and Welfare Plan on or before
the Transition Date and such dental treatment continues after the Transition
Date, PROVIDED that such dental treatment is concluded within allowable time
limitations under the applicable Parent Health and Welfare Plan. Coverage for
any such hospitalization or dental services shall be provided after the
Transition Date without interruption under the appropriate Parent Health and
Welfare Plan until such hospitalization or treatment for such condition is
concluded or discontinued subject to applicable plan rules and limitations.

     4.2    FLEXIBLE BENEFIT PLAN. Parent shall be responsible for all
Liabilities of the Piper Jaffray Employees who are participants in the Parent
Flexible Benefit Plan (the "COVERED EMPLOYEES") under the health care
reimbursement program, the transit and parking reimbursement program and the
dependent care reimbursement program of the Parent Flexible Benefit Plan for
claims incurred at any time during the 2003 plan year of the Parent Flexible
Benefit Plan and submitted to the Parent in accordance with the terms and
conditions of the Parent Flexible Benefit Plan.

     4.3    WORKERS' COMPENSATION LIABILITIES. Except as provided below, all
workers' compensation Liabilities relating to, arising out of, or resulting from
any claim by a Parent Employee, Former Parent Employee, Piper Jaffray Employee
and Former Piper Jaffray Employee that results from an accident occurring, or
from an occupational disease which becomes manifest, before the Close of the
Distribution Date shall be retained by Parent; provided, however, that all
amounts payable by Parent relating to, arising out of or resulting from any such
claim by a Piper Jaffray Employee shall be deemed to be a Piper Jaffray
Liability for purposes of the Insurance Matters Agreement and shall be paid by
Parent or Piper Jaffray as set forth in the Insurance Matters Agreement. All
workers' compensation Liabilities relating to, arising out of, or resulting from
any claim by a Parent Employee, Former Parent Employee or Former Piper Jaffray
Employee that results from an accident occurring, or from an occupational
disease which becomes manifest, on or after the Distribution Date shall be
retained by Parent. All workers' compensation Liabilities relating to, arising
out of, or resulting from any claim by a Piper Jaffray Employee that results
from an accident occurring, or from an occupational disease which becomes
manifest, on or after the Distribution Date shall be retained by Piper Jaffray.
For purposes of this Agreement, a compensable injury shall be deemed to be
sustained upon the occurrence of the event giving rise to eligibility for
workers' compensation benefits or an occupational disease becomes manifest, as
the case may be. Parent, Piper Jaffray and the other Piper Jaffray Entities
shall cooperate with respect to any notification to appropriate governmental
agencies of the Distribution and the issuance of new, or the transfer of
existing, workers' compensation insurance policies and claims handling
contracts.

     4.4    PAYROLL TAXES AND REPORTING OF COMPENSATION. Parent and Piper
Jaffray shall, and shall cause the other Parent Entities and the other Piper
Jaffray Entities to, respectively, take such action as may be reasonably
necessary or appropriate in order to minimize Liabilities related to payroll
taxes after the Distribution Date. Parent and Piper Jaffray shall, and shall
cause

                                      -11-
<Page>

the other Parent Entities and the other Piper Jaffray Entities to, respectively,
each bear its responsibility for payroll tax obligations and for the proper
reporting to the appropriate governmental authorities of compensation earned by
their respective employees after the Close of the Distribution Date, including
compensation related to the exercise of Options.

     4.5    PARENT POST-RETIREMENT WELFARE BENEFITS PLAN.

            (a)    RETENTION OF PARENT POST-RETIREMENT WELFARE BENEFITS PLAN. As
of the Distribution Date, Parent shall retain (i) sponsorship of all Parent
Post-Retirement Welfare Benefits Plans and any trust or other funding
arrangement established or maintained with respect to such plans, or any assets
held as of the Distribution Date with respect to such plans and (ii) all
Liabilities relating to, arising out of, or resulting from retiree health and
welfare coverage or claims incurred by or on behalf of Parent Employees, Former
Parent Employees, Former Piper Jaffray Employees or their covered dependents
under the Parent Post-Retirement Welfare Benefits Plans. Parent shall not assume
any Liability relating to post-retirement welfare claims incurred by or on
behalf of Piper Jaffray Employees or their covered dependents after the
Distribution Date, and such claims shall be satisfied by Piper Jaffray pursuant
to Section 4.5(b).

            (b)    PIPER JAFFRAY POST-RETIREMENT WELFARE BENEFITS PLANS.
Effective as of the Distribution Date, (i) Piper Jaffray may, in its sole
discretion, adopt Post-Retirement Welfare Benefits Plans for the benefit of
Piper Jaffray Employees, and (ii) Piper Jaffray shall be responsible for all
Liabilities relating to, arising out of or resulting from health and welfare
coverage or claims incurred by or on behalf of Piper Jaffray Employees or their
covered dependents under the Piper Jaffray Post-Retirement Welfare Benefits
Plans.

     4.6    COBRA AND HIPAA COMPLIANCE. Parent shall be responsible for
administering compliance with the health care continuation requirements of
COBRA, the certificate of creditable coverage requirements of HIPAA, and the
corresponding provisions of the Parent Health and Welfare Plans with respect to
Piper Jaffray Employees and their covered dependents who incur a COBRA
qualifying event or loss of coverage under the Parent Health and Welfare Plans
at any time on or before December 31, 2003. Effective on the Transition Date,
Piper Jaffray or another Piper Jaffray Entity shall be responsible for
administering compliance with the health care continuation requirements of
COBRA, the certificate of creditable coverage requirements of HIPAA, and the
corresponding provisions of the Piper Jaffray Health and Welfare Plans with
respect to Piper Jaffray Employees and their covered dependents who incur a
COBRA qualifying event or loss of coverage under the Piper Jaffray Health and
Welfare Plans at any time after December 31, 2003. The parties hereto agree that
the consummation of the transactions contemplated by this Agreement and the
Separation Agreement shall not constitute a COBRA qualifying event for any
purpose of COBRA.

                                    ARTICLE V
                      EXECUTIVE BENEFITS AND OTHER BENEFITS

     5.1    ASSUMPTION OF OBLIGATIONS. Except as provided in this Agreement,
effective as of the Distribution Time, Piper Jaffray shall assume and be solely
responsible for all Liabilities to or relating to Piper Jaffray Employees under
all Parent Executive Benefit Plans and Piper Jaffray

                                      -12-
<Page>

Executive Benefit Plans. None of the transactions contemplated by the Separation
and Distribution Agreement or any of the Ancillary Agreements, including,
without limitation, this Agreement, constitutes a change in control for purposes
of any Employee Benefit Plan.

     5.2    PARENT EXECUTIVE INCENTIVE PLAN AND THE ANNUAL INCENTIVE PLAN.

            (a)    PIPER JAFFRAY BONUS AWARDS. Piper Jaffray shall be
responsible for determining all bonus awards that would otherwise be payable
under the U.S. Bancorp Executive Incentive Plan and the U.S. Bancorp Annual
Incentive Plan to Piper Jaffray Employees for the Distribution Year. Piper
Jaffray shall also determine for Piper Jaffray Employees (i) the extent to which
established performance criteria (as interpreted by Piper Jaffray, in its sole
discretion) have been met, and (ii) the payment level for each Piper Jaffray
Employee. Piper Jaffray shall assume all Liabilities with respect to any such
bonus awards payable to Piper Jaffray Employees for the Distribution Year and
thereafter.

            (b)    PARENT BONUS AWARDS. Parent shall be responsible for
determining all bonus awards that would otherwise be payable under the U.S.
Bancorp Executive Incentive Plan and the U.S. Bancorp Annual Incentive Plan to
Parent Employees for the Distribution Year. Parent shall also determine for
Parent Employees (i) the extent to which established performance criteria have
been met, and (ii) the payment level for each such Parent Employee. Parent shall
retain all Liabilities with respect to any such bonus awards payable to Parent
Employees for the Distribution Year and thereafter.

     5.3    PARENT LONG-TERM INCENTIVE PLANS. Parent and Piper Jaffray shall use
their reasonable best efforts to take all actions necessary or appropriate so
that each outstanding Option and Award granted under any Parent Long-Term
Incentive Plan held by any individual shall be adjusted as set forth in this
Article V.

            (a)    PARENT OPTIONS. As determined by the Compensation Committee
of the Parent Board of Directors (the "COMMITTEE") in its sole discretion
pursuant to its authority under any of the Parent Long-Term Incentive Plans,
each Parent Option shall be subject to the same terms and conditions after the
Distribution as the terms and conditions applicable to such Parent Option
immediately prior to the Distribution; PROVIDED, HOWEVER, that from and after
the Close of the Distribution (i) the number of shares of Parent Common Stock
subject to such Parent Option, rounded to the nearest whole share, shall be
equal to the product of (x) the number of shares of Parent Common Stock subject
to such Parent Option immediately prior to the Distribution Date and (y) the
quotient obtained by dividing the Parent Stock Value by the Parent Opening Stock
Value and (ii) the exercise price of such Parent Option, rounded to the nearest
whole cent, shall be equal to the quotient obtained by dividing (x) the exercise
price of such Parent Option immediately prior to the Distribution by (y) the
quotient obtained by dividing the Parent Stock Value by the Parent Opening Stock
Value; PROVIDED, HOWEVER, that, in the case of any Parent Option to which
Section 421 of the Code applies by reason of its qualification under Section 422
of the Code as of the Distribution, the exercise price, the number of shares of
Parent Common Stock subject to such option and the terms and conditions of
exercise of such option shall be determined in a manner consistent with the
requirements of Section 424(a) of the Code.

                                      -13-

<Page>

            (b)    PARENT RESTRICTED STOCK. As determined by the Committee in
its sole discretion pursuant to its authority under any of the Parent Long-Term
Incentive Plans, each share of Parent Restricted Stock shall be subject to the
same terms and conditions after the Distribution as the terms and conditions
applicable to such Parent Restricted Stock immediately prior to the
Distribution; PROVIDED, HOWEVER, that on the Close of the Distribution, the
holder of the Parent Restricted Stock (including any Piper Jaffray Employee who
held Parent Restricted Stock as of immediately prior to the Distribution) shall
receive a number of shares of Piper Jaffray Common Stock determined in the
manner set forth in Section 3.1 of the Separation and Distribution Agreement.
Notwithstanding anything in any award agreement evidencing the grant of such
Parent Restricted Stock to the contrary, in no event shall the Piper Jaffray
Common Stock received with respect to such Parent Restricted Stock be subject to
any restriction.

            (c)    PARENT RESTRICTED STOCK UNITS. As determined by the Committee
in its sole discretion pursuant to its authority under any of the Parent
Long-Term Incentive Plans, each Parent Restricted Stock Unit shall be subject to
the same terms and conditions after the Distribution as the terms and conditions
applicable to such Parent Restricted Stock Unit immediately prior to the
Distribution; PROVIDED, HOWEVER, that from and after the Close of the
Distribution the number of shares of Parent Common Stock subject to such Parent
Restricted Stock Unit, rounded to the nearest whole share, shall be equal to the
product of (x) the number of shares of Parent Common Stock subject to such
Parent Restricted Stock Unit immediately prior to the Distribution Date and (y)
the quotient obtained by dividing the Parent Stock Value by the Parent Opening
Stock Value.

            (d)    INCENTIVE STOCK OPTIONS; FOREIGN GRANTS/AWARDS. To the extent
that the Parent Awards or any of the Parent Options are granted to non-U.S.
employees under any domestic or foreign equity-based incentive program sponsored
by a Parent Entity, subject to the provisions of Sections 5.3(a), 5.3(b), 5.3(c)
and 5.3(d), Parent and Piper Jaffray shall use their commercially reasonable
efforts to preserve, at and after the Distribution, the value and tax treatment
accorded to such Parent Options and such Parent Awards granted to non-U.S.
employees under any domestic or foreign equity-based incentive program sponsored
by a Parent Entity. The parties hereby delegate to the Parent Executive Vice
President-Human Resources, for periods before the Distribution Date, the
authority to determine an appropriate methodology for adjusting such grants or
awards in a manner that is, to the extent possible, consistent with the
treatment of such awards and grants for U.S. employees.

            (e)    MISCELLANEOUS OPTION AND OTHER AWARD TERMS.

                   (i)    After the Distribution Date, Parent Options and Parent
Awards adjusted pursuant to Section 5.3, regardless of by whom held, shall be
settled by Parent pursuant to the terms of the Parent Long-Term Incentive Plan,
and Piper Jaffray Options and Piper Jaffray Awards, regardless of by whom held,
shall be settled by Piper Jaffray pursuant to the terms of the Piper Jaffray
Long-Term Incentive Plan. The Distribution shall constitute a termination of
employment for all Piper Jaffray Employees for purposes of any Parent Option or
Parent Award.

                   (ii)   Parent or a Parent Entity shall claim the benefit of
federal, state, and local tax deductions related to the exercise of all adjusted
Parent Options and the vesting or settlement, as applicable, of Parent Awards
after the Distribution Date and none of Piper Jaffray

                                      -14-
<Page>

or any Piper Jaffray Entity shall claim any such tax deductions. After the
Distribution Date, Parent and the Parent Entities shall be responsible for the
proper payroll tax treatment and the proper reporting to the appropriate
governmental authorities of compensation relating to all option exercises of
Parent Options and vesting or settlement, as applicable, of Parent Awards.

                   (iii)  Piper Jaffray or a Piper Jaffray Entity shall claim
the benefit of federal, state and local tax deductions related to the exercise
of Piper Jaffray Options and the vesting or settlement, as applicable, of Piper
Jaffray Awards after the Distribution Date and neither Parent nor any Parent
Entity shall claim any such tax deductions. After the Distribution Date, Piper
Jaffray and the Piper Jaffray Entities shall be responsible for the proper
payroll tax treatment and the proper reporting to the appropriate governmental
authorities of compensation relating to all option exercises of Piper Jaffray
Options and vesting or settlement, as applicable, of Piper Jaffray Awards.

                   (iv)   Parent and Piper Jaffray agree to act (or to take such
action) with respect to such federal, state, or local tax deductions, and with
respect to fulfilling the payroll tax and reporting obligations on compensation
as are reasonably necessary or appropriate to achieve, maintain and/or preserve
such tax results.

                   (v)    If (A) as a result of a determination (as defined in
Section 1313 of the Code) or (B) in the opinion of nationally recognized tax
counsel to Parent or Piper Jaffray, which opinion and tax counsel are reasonably
acceptable to the other party hereto, as a result of final or pending Treasury
Regulations, Internal Revenue Service announcement or otherwise, in each case,
there is a substantial likelihood that the tax deductions related to the
exercise of Options or Awards under this Agreement and/or the payroll tax and
reporting obligations related to the exercise of Options or vesting or
settlement of Awards, will be inconsistent with all or any part of Section 5.3
above, the parties shall negotiate in good faith to restructure the arrangements
set forth herein so that (I) if, pursuant to the determination or opinion, a
party gets a tax deduction it was not entitled to claim under the terms of this
Agreement, that party shall pay over to the party entitled to claim the
deduction under the terms of this Agreement, as if and for the tax year(s)
recognized through a reduction in taxes due and/or the receipt of a refund in an
amount equal to the lesser of (X) its tax benefit and (Y) the benefit otherwise
available to the party entitled to such deduction under the terms of this
Agreement, as if and for the tax year(s) when such deduction would have resulted
in a reduction in taxes due and/or the receipt of a refund and (II) the
reporting and financial burden of the payroll taxes are, to the extent
practicable, as described above. Any such amounts shall be payable within 30
days of the filing of the return in which the benefit described in (X) or (Y) of
the preceding sentence, whichever is later, is reflected. If the parties are
unable to reach an agreement on how to restructure the arrangements set forth
herein within 90 days of such determination or the receipt of the opinion of
counsel described in the first sentence of this subparagraph (vi) such
disagreement shall be resolved by a nationally recognized law firm or accounting
firm ("INDEPENDENT THIRD PARTY"), selected in a manner similar to the procedure
set forth in Section 3(b)(iii) of the Tax Sharing Agreement, whose judgment
shall be conclusive and binding upon the parties. The cost of any Independent
Third Party shall be shared equally between the parties.

            (f)    WAITING PERIOD FOR EXERCISABILITY OF OPTIONS AND GRANT OF
OPTIONS AND AWARDS. The Parent Options and Piper Jaffray Options shall not be
exercisable during a period

                                      -15-
<Page>

beginning on a date prior to the Distribution Date determined by Parent in its
sole discretion, and continuing until the Parent Opening Stock Value and the
Parent Stock Value are determined immediately after the Distribution, or such
longer period as Parent determines necessary to implement the provisions of this
Section 5.3. In addition, Piper Jaffray shall not grant any Piper Jaffray Option
or Piper Jaffray Award under the Piper Jaffray Long-Term Incentive Plan during
the period commencing on the Distribution Date and ending on the date that is
[90] days after the Distribution Date.

            (g)    RESTRICTIVE COVENANTS. Following the Distribution Date, Piper
Jaffray shall use its reasonable best efforts to monitor the Piper Jaffray
Employees and Former Piper Jaffray Employees to determine whether any such Piper
Jaffray Employees or Former Piper Jaffray Employees have breached any of the
restrictive covenants in the agreements evidencing the terms of their Parent
Options and Parent Awards. As soon as practicable following Piper Jaffray's
reasonable belief that a Piper Jaffray Employee or Former Piper Jaffray Employee
has breached any such covenant, Piper Jaffray shall provide Parent in writing
with the name and address of such employee or former employee and the name and
address of the enterprise in which such employee or former employee is believed
to have been engaged. Notwithstanding the foregoing or anything in any agreement
evidencing the terms of any Parent Options and Parent Awards to the contrary, it
shall not be a violation of any non-competition or non-solicitation of clients
or customers covenant for a holder of a Parent Option or Parent Award to engage
in acts on behalf of Piper Jaffray or a Piper Jaffray Entity that are otherwise
prohibited by the terms of such non-competition or non-solicitation of clients
or customers covenants.

     5.4    REGISTRATION REQUIREMENTS. As soon as possible following the time as
of which the Registration Statement (as defined in the Separation and
Distribution Agreement) is declared effective by the Securities and Exchange
Commission but in any case before the Distribution Date and before the date of
issuance or grant of any Piper Jaffray Option and/or shares of Piper Jaffray
Common Stock pursuant to this Article V, Piper Jaffray agrees that it shall file
a Form S-8 Registration Statement with respect to and cause to be registered
pursuant to the Securities Act of 1933, as amended, the shares of Piper Jaffray
Common Stock authorized for issuance under the Piper Jaffray Long-Term Incentive
Plan as required pursuant to such Act and any applicable rules or regulations
thereunder, with such registration to be effective prior to the Distribution
Date.

     5.5    PARENT NON-QUALIFIED RETIREMENT PLANS. Effective as of the
Distribution Date, Piper Jaffray shall establish a non-qualified pension plan
(the "PIPER JAFFRAY NON-QUALIFIED RETIREMENT PLAN") that is substantially
identical to the Parent Non-Qualified Retirement Plan to provide benefits to
Piper Jaffray Employees and Former Piper Jaffray Employees from and after the
Distribution Date who were participants in the Parent Non-Qualified Retirement
Plan as of immediately prior to the Distribution Date. Effective as of the
Distribution Date, Piper Jaffray shall assume and be solely responsible for all
Liabilities of Parent for, or relating to, benefits accrued through the
Distribution Date by or with respect to Piper Jaffray Employees and Former Piper
Jaffray Employees under the Parent Non-Qualified Retirement Plan and the Piper
Jaffray Non-Qualified Retirement Plan.

     5.6    SEVERANCE PLANS. The Parent Severance Pay Program provides for the
payment of certain compensation and benefits in the event of the termination of
employment of the

                                      -16-
<Page>

individual covered by the terms of such plans. As of the Close of the
Distribution Date, Parent shall retain all Liabilities relating to the Parent
Severance Pay Program and all Liabilities relating to, arising out of, or
resulting from claims incurred by or on behalf of any individual under such
plans. A Piper Jaffray Employee shall not be deemed to have terminated
employment for purposes of determining eligibility for benefits under the
Severance Pay Plan or other similar plans and programs in connection with or in
anticipation of the consummation of the transactions contemplated by the
Separation and Distribution Agreement, and shall cease to be covered thereby as
of the Close of the Distribution Date. Piper Jaffray shall be solely responsible
for all Liabilities in respect of all costs arising out of payments and benefits
relating to the termination or alleged termination of any Piper Jaffray
Employee's employment that occurs as a result of or in connection with or
following the consummation of the transactions contemplated by the Separation
and Distribution Agreement, including any amounts required to be paid (including
any payroll or other taxes), and the costs of providing benefits, under any
applicable severance, separation, redundancy, termination or similar plan,
program, practice, contract, agreement, law or regulation (such benefits to
include any medical or other welfare benefits, outplacement benefits, accrued
vacation, and taxes). The Parent shall retain all Liabilities with respect to
the termination of any Piper Jaffray Employee or Former Piper Jaffray employee
prior to the Distribution Date.

     5.7 EMPLOYEE CASH AWARDS IN CONNECTION WITH THE DISTRIBUTION.  Piper
Jaffray shall use the Capital Contribution contributed pursuant to clause (1)
of Section 2.6 of the Separation and Distribution Agreement as well as an
additional $23,500,000 (the "Employee Cash Award Pool") for the sole purpose
of providing each Piper Jaffray Employee selected by the Compensation
Committee of the Board of Directors of Piper Jaffray (the "Piper Jaffray
Compensation Committee") with a cash award (an "Employee Cash Award") in an
amount determined by the Piper Jaffray Compensation Committee, which shall
generally be payable as on the terms and conditions not inconsistent herewith
as are approved by the Committee and the Piper Jaffray Compensation Committee
and as are set forth in the agreements evidencing the grant of the Employee
Cash Awards substantially in the forms attached hereto on Exhibit A, provided
that in no event shall Piper Jaffray allocate any amount of the Employee Cash
Award Pool or pay or provide any other bonus or amount or other compensation
or consideration at any time with respect to any Parent Options or Parent
Awards granted to Piper Jaffray Employees under the U.S. Bancorp 2001
Employee Stock Incentive Plan or the U.S. Bancorp 1998 Executive Stock
Incentive Plan, and, notwithstanding the provisions of this Agreement or any
other agreement to the contrary, Piper Jaffray shall be responsible for and
shall indemnify Parent against all Liabilities arising under or in connection
with the Employee Cash Award Pool.

                                   ARTICLE VI
                           GENERAL AND ADMINISTRATIVE

     6.1 SHARING OF PARTICIPANT INFORMATION. Parent and Piper Jaffray shall
share, and Parent shall cause each other Parent Entity to share, and Piper
Jaffray shall cause each other Piper Jaffray Entity to share with each other and
their respective agents and vendors (without obtaining releases) all participant
information necessary for the efficient and accurate administration of each of
the Piper Jaffray Benefit Plans and the Parent Benefit Plans. Parent and Piper
Jaffray and their respective authorized agents shall, subject to applicable
laws, be

                                      -17-
<Page>

given reasonable and timely access to, and may make copies of, all information
relating to the subjects of this Agreement in the custody of the other party, to
the extent necessary for such administration. Until the Close of the
Distribution Date, all participant information shall be provided in the manner
and medium applicable to Participating Companies in Benefit Plans of Parent
generally, and thereafter until December 31, 2003, all participant information
shall be provided in a manner and medium as may be mutually agreed to by Parent
and Piper Jaffray.

     6.2    REASONABLE EFFORTS/COOPERATION. Each of the parties hereto will use
its commercially reasonable efforts to promptly take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary, proper or
advisable under applicable laws and regulations to consummate the transactions
contemplated by this Agreement. Each of the parties hereto shall cooperate fully
on any issue relating to the transactions contemplated by this Agreement for
which the other party seeks a determination letter or private letter ruling from
the Internal Revenue Service, an advisory opinion from the Department of Labor
or any other filing, consent or approval with respect to or by a governmental
agency.

     6.3    NO THIRD-PARTY BENEFICIARIES. This Agreement is solely for the
benefit of the Parties and is not intended to confer upon any other Persons any
rights or remedies hereunder. Except as expressly provided in this Agreement,
nothing in this Agreement shall preclude Parent or any other Parent Entity, at
any time after the Close of the Distribution Date, from amending, merging,
modifying, terminating, eliminating, reducing, or otherwise altering in any
respect any Parent Benefit Plan, any benefit under any Benefit Plan or any
trust, insurance policy or funding vehicle related to any Parent Benefit Plan.
Except as expressly provided in this Agreement, nothing in this Agreement shall
preclude Piper Jaffray or any other Piper Jaffray Entity, at any time after the
Close of the Distribution Date, from amending, merging, modifying, terminating,
eliminating, reducing, or otherwise altering in any respect any Piper Jaffray
Benefit Plan, any benefit under any Benefit Plan or any trust, insurance policy
or funding vehicle related to any Piper Jaffray Benefit Plan.

     6.4    AUDIT RIGHTS WITH RESPECT TO INFORMATION PROVIDED.

            (a)    Each of Parent and Piper Jaffray, and their duly authorized
representatives, shall have the right to conduct reasonable audits with respect
to all information required to be provided to it by the other party under this
Agreement. The party conducting the audit (the "AUDITING PARTY") may adopt
reasonable procedures and guidelines for conducting audits and the selection of
audit representatives under this Section 6.4. The Auditing Party shall have the
right to make copies of any records at its expense, subject to any restrictions
imposed by applicable laws and to any confidentiality provisions set forth in
the Separation and Distribution Agreement, which are incorporated by reference
herein. The party being audited shall provide the Auditing Party's
representatives with reasonable access during normal business hours to its
operations, computer systems and paper and electronic files, and provide
workspace to its representatives. After any audit is completed, the party being
audited shall have the right to review a draft of the audit findings and to
comment on those findings in writing within ten business days after receiving
such draft.

            (b)    The Auditing Party's audit rights under this Section 6.4
shall include the right to audit, or participate in an audit facilitated by the
party being audited, of any Subsidiaries

                                      -18-
<Page>

and Affiliates of the party being audited and to require the other party to
request any benefit providers and third parties with whom the party being
audited has a relationship, or agents of such party, to agree to such an audit
to the extent any such persons are affected by or addressed in this Agreement
(collectively, the "NON-PARTIES"). The party being audited shall, upon written
request from the Auditing Party, provide an individual (at the Auditing Party's
expense) to supervise any audit of a Non-party. The Auditing Party shall be
responsible for supplying, at the Auditing Party's expense, additional personnel
sufficient to complete the audit in a reasonably timely manner. The
responsibility of the party being audited shall be limited to providing, at the
Auditing Party's expense, a single individual at each audited site for purposes
of facilitating the audit.

     6.5    FIDUCIARY MATTERS. It is acknowledged that actions required to be
taken pursuant to this Agreement may be subject to fiduciary duties or standards
of conduct under ERISA or other applicable law, and no party shall be deemed to
be in violation of this Agreement if it fails to comply with any provisions
hereof based upon its good faith determination that to do so would violate such
a fiduciary duty or standard. Each party shall be responsible for taking such
actions as are deemed necessary and appropriate to comply with its own fiduciary
responsibilities and shall fully release and indemnify the other party for any
Liabilities caused by the failure to satisfy any such responsibility.

     6.6    CONSENT OF THIRD PARTIES. If any provision of this Agreement is
dependent on the consent of any third party (such as a vendor) and such consent
is withheld, the parties hereto shall use their reasonable best efforts to
implement the applicable provisions of this Agreement to the full extent
practicable. If any provision of this Agreement cannot be implemented due to the
failure of such third party to consent, the parties hereto shall negotiate in
good faith to implement the provision in a mutually satisfactory manner. The
phrase "reasonable best efforts" as used herein shall not be construed to
require any party to incur any non-routine or unreasonable expense or Liability
or to waive any right.

                                   ARTICLE VII
                                  MISCELLANEOUS

     7.1    EFFECT IF DISTRIBUTION DOES NOT OCCUR. If the Separation and
Distribution Agreement is terminated prior to the Distribution Date, then all
actions and events that are, under this Agreement, to be taken or occur
effective immediately prior to or as of the Close of the Distribution Date, or
Immediately after the Distribution Date, or otherwise in connection with the
Separation Transactions shall not be taken or occur except to the extent
specifically agreed by Parent and Piper Jaffray.

     7.2    RELATIONSHIP OF PARTIES. Nothing in this Agreement shall be deemed
or construed by the parties or any third party as creating the relationship of
principal and agent, partnership or joint venture between the parties, it being
understood and agreed that no provision contained herein, and no act of the
parties, shall be deemed to create any relationship between the parties other
than the relationship set forth herein.

                                      -19-
<Page>

     7.3    AFFILIATES. Each of Parent and Piper Jaffray shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by another Parent Entity
or a Piper Jaffray Entity, respectively.

     7.4    NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed given to a
party when (a) delivered to the appropriate address by hand or by nationally
recognized overnight courier service (costs prepaid); (b) sent by facsimile with
confirmation of transmission by the transmitting equipment; or (c) received or
rejected by the addressee, if sent by certified mail, return receipt requested,
in each case to the following addresses and facsimile numbers and marked to the
attention of the person (by name or title) designated below (or to such other
address, facsimile number or person as a party may designate by notice to the
other parties):

            (a)    if to Parent:

                   U.S. Bancorp
                   800 Nicollet Mall
                   Minneapolis, Minnesota 55402
                   Attention: General Counsel
                   Fax: (612) 303-0898

     with copies to:

                   Wachtell, Lipton, Rosen & Katz
                   51 West 52nd Street
                   New York, NY 10019
                   Attention: Adam D. Chinn
                   Facsimile No.: (212) 403-2209

            (b)    if to Piper Jaffray:

                   Piper Jaffray Companies
                   800 Nicollet Mall
                   Minneapolis, Minnesota 55402
                   Attention: General Counsel
                   Fax: (612) 303-1772

     7.5    INCORPORATION OF SEPARATION AND DISTRIBUTION AGREEMENT PROVISIONS.
The following provisions of the Separation and Distribution Agreement are hereby
incorporated herein by reference, and unless otherwise expressly specified
herein, such provisions shall apply as if fully set forth herein (references in
this Section 7.5 to an "Article" or "Section" shall mean Articles or Sections of
the Separation and Distribution Agreement, and references in the material
incorporated herein by reference shall be references to the Separation and
Distribution Agreement): Article IV (relating to Survival and Indemnification);
Article V (relating to Certain Additional Covenants); Article VI (relating to
Access to Information); Article VII (relating to No Representations or
Warranties); Article VIII (relating to Terminations); Article IX (relating to
Miscellaneous).

                                      -20-
<Page>

     IN WITNESS WHEREOF, the parties have caused this Employee Benefits
Agreement to be duly executed as of the day and year first above written.

                                      U.S. BANCORP

                                      By:
                                         --------------------------------
                                      Name:
                                      Title:

                                      PIPER JAFFRAY COMPANIES

                                      By:
                                         --------------------------------
                                      Name:
                                      Title:

                                      -21-<Page>

                                                                    EXHIBIT 10.3

                                     FORM OF

                           INSURANCE MATTERS AGREEMENT

                                 by and between

                                  U.S. Bancorp

                                       and

                             Piper Jaffray Companies

                           Dated as of _________, 2003

<Page>

         This INSURANCE MATTERS AGREEMENT, dated as of [ ], 2003, by and between
U.S. Bancorp, a Delaware corporation ("Parent"), and Piper Jaffray Companies, a
Delaware corporation and an indirect, wholly owned subsidiary of Parent ("Piper
Jaffray", and together with Parent, the "Parties" and each a "Party").

         WHEREAS, the Board of Directors of Parent has determined that it is in
the best interests of Parent and its stockholders to separate Parent's existing
businesses into two independent companies;

         WHEREAS, in furtherance of the foregoing, Parent and Piper Jaffray have
entered into a Separation and Distribution Agreement, dated as of the date
hereof (the "Separation and Distribution Agreement"), and other ancillary
agreements that will govern certain matters relating to the Separation and the
relationship of Parent, Piper Jaffray and their respective Subsidiaries
following the Distribution Date; and

         WHEREAS, pursuant to the Separation and Distribution Agreement, the
Parties have agreed to enter into this Agreement for the purpose of setting
forth certain agreements regarding insurance matters.

         NOW, THEREFORE, in consideration of the premises, and of the
representations, warranties, covenants and agreements set forth herein, and
intending to be legally bound hereby, the Parties hereby agree as follows:

                            ARTICLE I -- Definitions

         Capitalized terms used in this Agreement that are not defined in
Article I or other provisions of this Agreement shall have the meanings assigned
to them in the Separation and Distribution Agreement.

         1.1. "Agreement" means this Insurance Matters Agreement, including all
the Schedules hereto.

         1.2. "Current Parent Policies" means Property and Casualty insurance
policies that insure Parent and one or more of its Subsidiaries or Affiliates
and that have policy periods that begin before and end after the Distribution
Date.

         1.3. "Other Policies" means Property and Casualty insurance policies
with policy periods that begin and end before the Distribution Date and that
provide insurance coverage to Parent or one or more of its Subsidiaries or
Affiliates as a result of the acquisition of assets or shares of, or mergers or
consolidations with, other Persons that had previously purchased such policies
or that had succeeded to rights to obtain coverage from such policies prior to
the time of the acquisition, merger or consolidation by or with Parent or one or
more of its Subsidiaries or Affiliates.

         1.4. "Prior Parent Policies" means Property and Casualty insurance
policies with policy periods that begin and end before the Distribution Date
that provide insurance coverage to Parent or one or more of its Subsidiaries or
Affiliates and that are neither Current Parent Policies nor Other Policies.

<Page>

                                       2

         1.5. "Property and Casualty" means property and casualty as that term
is commonly used in the insurance business and includes but is not limited to
liability policies (such as directors and officers liability policies,
employment practices liability policies, errors and omissions liability
policies, general liability policies), first party property policies, crime and
bond policies, mail policies, Excess SIPIC policies, excess securities policies,
and workers compensation policies.

                      ARTICLE II -- Current Parent Policies

         2.1. With respect to the Current Parent Policies listed in Schedule A
to this Agreement, which were issued for the period from August 1, 2003 to
August 1, 2004, Parent hereby agrees, to the extent permitted by the insurance
policy or insurance contract and upon request by Piper Jaffray, to provide the
Piper Jaffray Group such insurance with respect to the Piper Jaffray Liabilities
as is afforded by those policies to the extent that Parent has the right to do
so without paying or incurring any additional premium or costs under those
policies. Prior to the currently scheduled expiration date of those policies,
August 1, 2004, unless earlier terminated by the applicable insurer, Parent
shall not cancel, terminate or amend those policies in a manner that materially
and adversely affects coverage for Piper Jaffray or the Piper Jaffray Group.
Prior to the Distribution Date, Piper Jaffray shall use its commercially
reasonable efforts to obtain written confirmation from the insurers that issued
those policies that Piper Jaffray and the Piper Jaffray Group shall continue to
be "Insured(s)" under those policies (as the term "Insured(s)" is defined in
those policies) from the Distribution Date to August 1, 2004. In the event that
Parent does not have the right to make Piper Jaffray and the Piper Jaffray Group
"Insureds" under those policies (or the insurers refuse to provide confirmation
of Parent's right to do so), Piper Jaffray shall at its own expense obtain
replacement coverage (or bear the risk that such coverage is not available under
the Current Parent Policies) and Parent shall not be directly or indirectly
liable for any failure on the part of Piper Jaffray to obtain coverage or
receive reimbursement under such policies from the insurers.

         2.2. With respect to the Current Parent Policies listed in Schedule B
to this Agreement, the period of such policies shall be deemed to end as of the
Distribution Date insofar as Piper Jaffray and the Piper Jaffray Group are
concerned, and Piper Jaffray and the Piper Jaffray Group shall have no right to
extend the period for reporting claims, circumstances or occurrences under such
policies. Piper Jaffray shall use commercially reasonable efforts to obtain, for
the period commencing with the Distribution Date, replacement insurance policies
for risks that would otherwise have been covered by such policies, or shall
self-insure such risks and Parent shall not be directly or indirectly liable for
any failure on the part of Piper Jaffray to insure for such risks.

         2.3. With respect to the coverage of the type provided by Current
Parent Policies, Piper Jaffray shall use commercially reasonable efforts to
obtain its own separate replacement policies that provide substantially
equivalent coverage with commercially appropriate limits for the period
commencing with the Distribution Date. Piper Jaffray shall inform Parent about
the replacement policies that it plans to obtain, and, with respect solely to
the first set of replacement policies obtained for the period

<Page>

                                       3

commencing with the Distribution Date, obtain the consent of Parent to the
type of coverage and the limits obtained by Piper Jaffray, provided that
Parent may not unreasonably withhold such consent.

             ARTICLE III -- Rights in Policies with Inception Dates
                         Prior to the Distribution Date

         3.1. As of the Distribution Date, Parent and the Parent Group assign to
Piper Jaffray and the Piper Jaffray Group all rights to insurance coverage
provided for Piper Jaffray Liabilities under the Current Parent Policies, Prior
Parent Policies and Other Policies in accordance with the terms of such policies
and applicable principles of law and equity, subject to the applicable limits of
such policies.

         3.2. As of the Distribution Date, Parent and the Parent Group retain
all rights to insurance coverage provided for Parent Liabilities under the
Current Parent Policies, Prior Parent Policies and Other Policies in accordance
with the terms of such policies and applicable principles of law and equity,
subject to the applicable limits of such policies.

         3.3. For purposes of the exhaustion of any limits that apply to
coverage available under Current Parent Policies, Prior Parent Policies or Other
Policies, amounts shall be allocated to the policies on a first come/first
served basis. That means that amounts covered by such policies shall be
allocated to such policies in the order in which such amounts were paid by or on
behalf of Parent or the Parent Group, or Piper Jaffray or the Piper Jaffray
Group, with respect to the Parent Liabilities or the Piper Jaffray Liabilities,
respectively. Where the policies provide coverage with respect to the Parent
Liabilities or the Piper Jaffray Liabilities for amounts that are not paid by or
on behalf of Parent or the Parent Group, or Piper Jaffray or the Piper Jaffray
Group, such as for example in the case of first party coverage for the value of
property that is destroyed but not replaced, amounts shall be allocated to
policies in the order in which the relevant losses occurred.

            ARTICLE IV -- Self-Insured Retentions and Related Matters

         4.1. With respect to Parent Liabilities, Parent shall pay or cause to
be paid any self-insured retentions, deductibles, retrospective premiums or
other amounts payable by an insured that apply under Current Parent Policies,
Prior Parent Policies or Other Policies. With respect to such liabilities,
Parent shall also pay amounts that are not otherwise covered by the Current
Parent Policies, Prior Parent Policies or Other Parent Policies. In addition, to
the extent that there is any obligation after the Distribution Date to provide
or continue to provide security or collateral to any insurer with respect to
Parent Liabilities, Parent shall provide or cause to be provided such security
or collateral and pay or cause to be paid the cost of doing so.

         4.2. With respect to Piper Jaffray Liabilities, Piper Jaffray shall pay
or cause to be paid any self-insured retentions, deductibles, retrospective
premiums or other amounts payable by an insured that apply under Current Parent
Policies, Prior Parent Policies or Other Policies. With respect to such
liabilities, Piper Jaffray shall also pay

<Page>

                                       4

amounts that are not otherwise covered by the Current Parent Policies, Prior
Parent Policies or Other Parent Policies. In addition, to the extent that there
is any obligation after the Distribution Date to provide or continue to provide
security or collateral to any insurer with respect to Piper Jaffray Liabilities,
Piper Jaffray shall provide or cause to be provided such security or collateral
and pay or cause to be paid the cost of doing so.

         4.3. To the extent that Parent continues after the Distribution Date to
make any payments or incur any costs that Piper Jaffray is obligated to make or
incur under Section 4.2, for any reason, including as a result of contractual
obligations or for the purpose of ensuring a smooth transition, Piper Jaffray
shall promptly reimburse Parent for the amount of such payments or costs.
Similarly, to the extent that Piper Jaffray continues after the Distribution
Date to make any payments or incur any costs that Parent is obligated to make or
incur under Section 4.1, for any reason, including as a result of contractual
obligations or for the purpose of ensuring a smooth transition, Parent shall
promptly reimburse Piper Jaffray for such payments or costs.

         4.4. To the extent that Parent continues after the Distribution Date to
provide security or collateral to any insurer with respect to Piper Jaffray
Liabilities, Piper Jaffray shall: (a) use commercially reasonable efforts, in
cooperation with Parent, to persuade the insurer to release Parent from such
obligation and to substitute security or collateral from Piper Jaffray; (b) to
the extent requested to do so by Parent, until Parent is released from such
obligations, provide Parent at the expense of Piper Jaffray with equivalent
security or collateral; (c) reimburse Parent for the cost of continuing to
provide such security or collateral; and (d) to the extent not satisfied by the
security or collateral contemplated by subsection (b), at Parent's option either
pay on behalf of Parent any collateral or security amounts that become due with
respect to Piper Jaffray Liabilities or promptly reimburse Parent for security
or collateral amounts paid by Parent with respect to such liabilities.

         4.5. For purposes of the exhaustion of any limits that apply to
self-insured retentions, deductibles, retrospective premiums or other amounts
payable by an insured that apply under Current Parent Policies, Prior Parent
Policies or Other Policies, amounts shall be allocated to such limits on a first
come/first served basis. That means that amounts shall be allocated to such
limits in the order in which such amounts were paid by or on behalf of Parent or
the Parent Group, or Piper Jaffray or the Piper Jaffray Group, with respect to
the Parent Liabilities or the Piper Jaffray Liabilities, respectively. Where the
limits with respect to the Parent Liabilities or the Piper Jaffray Liabilities
apply to amounts that are not paid by or on behalf of Parent or the Parent
Group, or Piper Jaffray or the Piper Jaffray Group, such as for example in the
case of first party coverage for the value of property that is destroyed but not
replaced, amounts shall be allocated to such limits in the order in which the
relevant losses occurred.

         4.6. Piper Jaffray, on its own behalf and on behalf of the Piper
Jaffray Group, and their directors, officers and employees, hereby agrees that
insurance policies issued by Midwest Indemnity Inc. do not provide any insurance
coverage to Piper Jaffray or any member of the Piper Jaffray Group or any of the
directors, officers or employees of the foregoing in their capacity as such.

<Page>

                                       5

         4.7. With respect to Piper Jaffray Liabilities that are insured under
Current Parent Policies, Other Policies, and Prior Parent Policies issued by
commercial insurers who are entitled to reinsurance or indemnification for such
liabilities in whole or in part from Parent or a member of the Parent Group,
Piper Jaffray shall: (a) use commercially reasonable efforts, in cooperation
with Parent, to persuade the insurer to release Parent and the Parent Group from
such reinsurance or indemnification obligation and substitute a reinsurance or
indemnification obligation from Piper Jaffray or one of the Piper Jaffray
Subsidiaries; (b) until Parent and the Parent Group are released from such
obligations, provide Parent at the expense of Piper Jaffray with commercially
reasonable security or collateral; and (c) to the extent not satisfied by the
security or collateral contemplated by subsection (b), at Parent's option either
pay on behalf of Parent any reinsurance or indemnification amounts that become
due with respect to Piper Jaffray Liabilities or promptly reimburse Parent for
reinsurance or indemnification amounts paid by Parent or the Parent Group with
respect to such liabilities.

      ARTICLE V - Cooperation With Respect to Claims and Insurance Matters

         5.1. With respect to Parent Liabilities, Parent shall have the right
and the responsibility to provide appropriate notice to insurers, administer
claims to the extent necessary or appropriate, submit claims to insurers for
payment, negotiate coverage questions that may arise, and to arbitrate, litigate
and/or compromise coverage disputes and Parent shall not incur any liability for
the failure to do any of the above.

         5.2. With respect to Piper Jaffray Liabilities, with respect only to
Current Parent Policies and Prior Parent Policies, Parent shall have the right
but not the obligation to provide appropriate notice to insurers, submit claims
to insurers for payment, negotiate coverage questions that may arise, and to
arbitrate, litigate and/or compromise coverage disputes. Piper Jaffray shall
give prompt written notice to Parent of all claims or losses that are
potentially eligible for coverage under Current Parent Policies and Prior Parent
Policies or that have the potential to reduce deductibles or self-insured
retentions applicable to such policies. Piper Jaffray shall reimburse Parent for
out-of-pocket costs, expenses and fees, including attorneys fees, reasonably
incurred by Parent for services performed by Parent pursuant to this section in
connection with Piper Jaffray Liabilities. In the event that Parent elects not
to exercise its rights under this section with respect to particular claims or
losses after having received notice of such claims or losses from Piper Jaffray,
Parent shall promptly notify Piper Jaffray of that election so that Piper
Jaffray may exercise its rights and responsibilities with respect to such claims
or losses under section 5.3, below.

         5.3. With respect to Other Policies, and to the extent that Parent
chooses not to do so under Current Parent Policies and Prior Parent Policies,
Piper Jaffray shall have the right and the responsibility with respect to Piper
Jaffray Liabilities to provide appropriate notice to insurers, administer claims
to the extent necessary or appropriate, submit claims to insurers for payment,
negotiate coverage questions that may arise, and to arbitrate, litigate and/or
compromise coverage disputes.

<Page>

                                       6

         5.4. (a) Parent and Piper Jaffray shall cooperate with each other, and
use commercially reasonable efforts to take or cause to be taken all appropriate
actions required of such Party, and to do or cause to be done all things
necessary or appropriate to effectuate the provisions and purposes of this
Agreement and the transactions contemplated hereby, including the execution of
any additional documents or instruments of any kind, the obtaining of consents
which may be reasonably necessary or appropriate to carry out any of the
provisions hereof, and the taking of all such other actions as such Party may
reasonably be requested to take by the other Party from time to time consistent
with the terms of this Agreement; provided however, that nothing herein shall
require Parent to incur any additional premiums or costs with respect to the
Current Parent Policies, Prior Parent Policies or Other Policies.

         (b) By way of enumeration of and not of limitation:

                  (i) each Party shall provide copies of insurance policies (to
the extent that copies are available) or evidence of the existence of insurance
(where actual copies of the policies are not available), to the other to the
extent reasonably required to effectuate the provisions and purposes of this
Agreement;

                  (ii) each Party shall provide the other with information
reasonably necessary or helpful to either Party in connection with its efforts
to obtain insurance coverage pursuant to and in accordance with the terms of
this Agreement or to purchase new insurance policies, including information
about the relevant portions of prior underwriting submissions, past and current
claims and losses, subject to any confidentiality restrictions regarding such
information, claims and losses;

                  (iii) each Party shall provide information to the other about
exhaustion of policy limits and amounts applied to the limits of policies or
self-insured retentions or other limits which are discussed in this Agreement
that are potentially applicable to both, and the basis for the application of
such amounts to such limits, so that each Party can monitor the exhaustion of
such limits; and

                  (iv) subject to Sections 5.2 and 5.3, each Party shall execute
further assignments or allow the other to pursue claims in its name (subject to
appropriate written notice of the fact that it is doing so and a description of
the reasons why it is doing so), including by means of arbitration or
litigation, to the extent necessary or helpful to the other Party's efforts to
obtain insurance coverage to which it is entitled under this Agreement.

         5.5. Parent and Piper Jaffray shall reimburse each other for
out-of-pocket costs, expenses and fees, including but not limited to attorneys'
fees, reasonably incurred in connection with providing cooperation and
assistance to the other pursuant to Section 5.4. Where particular costs, expense
or fees are expected to exceed $10,000, Parent and Piper Jaffray shall use
commercially reasonable efforts to provide estimates of such costs, expenses or
fees to each other prior to the time that they are incurred.

<Page>

                                        7

         5.6. In the event of any arbitration or litigation with any insurers
concerning any Current Parent Policy, Prior Parent Policy or Other Policy that
potentially provides coverage for both Parent Liabilities and Piper Jaffray
Liabilities (as determined in good faith by the Party which is initiating or the
subject to such arbitration or litigation), Parent and Piper Jaffray shall
provide prompt written notice to each other of the initiation of such
arbitration or litigation. In the event that such an arbitration or litigation
is initiated by Parent or Piper Jaffray, each Party shall notify the other in
writing at least 60 days prior to the initiation of such proceeding (unless it
is not reasonably possible to do so without prejudicing the effort of such Party
to obtain coverage). The Party receiving any such notice pursuant to this
Section 5.6 shall preserve the confidentiality of that information and use it
for no purpose other than conferring with the other Party and, subject to
Section 5.2, considering whether or not it should join that proceeding as a
party or an amicus, or institute another proceeding against one or more insurers
in the same or some different forum at some time after the first proceeding has
been initiated.

         5.7. With respect to the application of the first come/first served
principles set forth in Sections 3.3 and 4.5, Parent and the Parent Group, and
Piper Jaffray and the Piper Jaffray Group, shall act in good faith and avoid
taking any actions for the purpose or with the intention of accelerating or
delaying claims payments or losses in order to obtain some advantage with
respect to the exhaustion of applicable limits. In addition, Piper Jaffray and
the Piper Jaffray Group shall not enter into any written settlement agreement
with any insurer that has the effect of reducing limits that would otherwise be
potentially available under this Agreement to Parent or the Parent Group without
first giving Parent at least 60 days advance written notice of its intention to
enter into such settlement accompanied by a copy of the proposed settlement so
that the Parent may have an opportunity to consider the impact of such proposed
settlement on its interests. Parent and Piper Jaffray agree to consult with each
other and negotiate in good faith about any such impact.

         5.8. Notwithstanding anything in this Agreement to the contrary
(including Section 5.7), neither Parent nor any member of the Parent Group shall
have any right to provide any release under a Current Parent Policy, a Prior
Parent Policy or any Other Policy with respect to any rights that Piper Jaffray
or any member of the Piper Jaffray Group may have under that policy under this
Agreement, without the prior written consent of Piper Jaffray.

         5.9. Notwithstanding anything in this Agreement to the contrary
(including Section 5.7), neither Piper Jaffray nor any member of the Piper
Jaffray Group shall have any right to provide any release under a Current Parent
Policy, a Prior Parent Policy or an Other Policy with respect to any rights that
Parent or any member of the Parent Group may have under that policy under this
Agreement, without the prior written consent of Parent.

         5.10. Parent and Piper Jaffray agree to preserve the confidentiality of
any information relating to claims and losses, and efforts to recover insurance
therefore in

<Page>

                                       8

accordance with the provisions of Section 6.8 of the Separation and Distribution
Agreement.

                   ARTICLE VI -- Certain Specified Liabilities

         6.1. Piper Jaffray has entered into a settlement agreement (the "Global
Settlement") with certain federal and state regulators relating to alleged
conflicts of interest or other allegedly wrongful acts involving relationships
between securities analysis and investment banking services. In the event that
the Global Settlement is approved, Piper Jaffray will become obligated to pay
(a) fines and penalties in the amount of $12.5 million; (b) a restitution
payment in the amount of $12.5 million; and (c) $7.5 million for the cost of
independent market research. Piper Jaffray has established a reserve on its
books in the amount of $32.5 million to pay these amounts. In connection with
the Contribution, Parent has contributed capital to Piper Jaffray to enable it
to establish this reserve. In the event that any insurer provides coverage to
Parent, any Parent Subsidiary, Piper Jaffray or any Piper Jaffray Subsidiary for
all or any part of this $32.5 million amount or any defense costs paid in
connection with the investigation conducted by the regulators or the negotiation
of a settlement with the regulators, the amount of such insurance proceeds, net
of the costs, expenses and fees (including attorneys' fees) actually incurred in
connection with the recovery of such proceeds, shall be allocated as specified
in Sections 6.3 and 6.4.

         6.2. In addition to the claims described in Section 6.1, the Parties
have agreed that in the event insurance recoveries are received or paid out in
respect of any Specified Liabilities (as defined in the Separation and
Distribution Agreement), the Parties shall allocate such recoveries (net of the
costs, expenses and fees (including attorneys' fees) actually incurred in
connection with the recovery of such proceeds) in accordance with Section 6.3.

         6.3. Except as provided in Section 6.4, the insurance proceeds received
with respect to (1) the Global Settlement, (2) any defense costs paid in
connection with the investigation conducted by the regulators or the negotiation
of a settlement with the regulators, or (3) any Specified Liabilities, in each
case, net of any costs, expenses and fees (including attorneys' fees) actually
incurred in connection with the recovery of such proceeds, shall be allocated as
follows:

         (a) Parent and Piper Jaffray shall first be reimbursed for any
out-of-pocket defense costs that each actually incurred in connection with such
Specified Liabilities (if the insurance recoveries with respect to Global
Settlement and Specified Liabilities are not sufficient to reimburse each for
the full amount of its out-of-pocket defense costs, the recoveries shall be
shared in proportion to the amount of out-of-pocket defense costs actually paid
by each with respect to the Specified Liabilities);

         (b) to the extent that there are any remaining insurance recoveries
after Parent and Piper Jaffray have been reimbursed for their defense costs
pursuant to subsection (a), such amounts shall next be used to reimburse Piper
Jaffray for any settlement or judgment amounts that it has paid in connection
with Specified Liabilities

<Page>

                                       9

that were not indemnified by Parent as a result of exhaustion of the $17.5
million maximum limit on Parent's indemnification obligation for such
liabilities; and

         (c) to the extent that there are any remaining insurance recoveries
after allocations have been made pursuant to subsections (a) and (b) above, such
remainder shall be allocated and belong to Parent. Piper Jaffray shall, promptly
upon the receipt of any payment of all or any portion of such remainder, pay
such amount over to Parent. Until making such payment to Parent, Piper Jaffray
shall hold such amounts in trust for Parent and not for its own account.

         6.4. In the event of a Change in Control of Piper Jaffray, any net
insurance proceeds received with respect to the Global Settlement that have not
already been paid to or on behalf Piper Jaffray pursuant to section 6.3 as of
the effective date of such Change in Control shall belong to Parent, and Piper
Jaffray shall have no right to receive or benefit from any portion of such
proceeds, including as an element in the calculations set forth in Section 6.3.
Piper Jaffray shall, promptly upon the receipt of any payment of or receipt of
the benefit of any payment on its behalf of all or any portion of such net
insurance proceeds, pay such amount over to Parent. Until making such payment to
Parent, Piper Jaffray shall hold such amounts in trust for Parent and not for
its own account.

                          ARTICLE VII- Other Provisions

         7.1. NOTICES. All notices, requests and other communications to any
Party hereunder shall be in writing (including facsimile transmission) and shall
be given (i) by personal delivery to the appropriate address as set forth below
(or at such other address for the Party as shall have been previously specified
in writing to the other Party), (ii) by reliable overnight courier service (with
confirmation) to the appropriate address as set forth below (or at such other
address for the Party as shall have been previously specified in writing to the
other Party), or (iii) by facsimile transmission (with confirmation) to the
appropriate facsimile number set forth below (or at such other facsimile number
for the Party as shall have been previously specified in writing to the other
Party) with follow-up copy by reliable overnight courier service the next
Business Day:

         (a)   if to Piper Jaffray, to:

               Piper Jaffray Companies
               800 Nicollet Mall
               Minneapolis, Minnesota 55402
               Attention:  General Counsel
               Fax:  (612) 303-1772

         (b)   if to Parent, to:

<Page>

                                       10

               U.S. Bancorp
               800 Nicollet Mall
               Minneapolis, Minnesota 55402
               Attention:  General Counsel
               Fax: (612) 303-0898

All such notices, requests and other communications shall be deemed received on
the date of receipt by the recipient thereof if received prior to 5 p.m.
(Minneapolis, Minnesota time) and such day is a Business Day in the place of
receipt. Otherwise, any such notice, request or communication shall be deemed
not to have been received until the next succeeding Business Day in the place of
receipt.

         7.2. AMENDMENTS AND WAIVERS. This Agreement may not be modified or
amended except by an instrument or instruments in writing signed by the Parties.
Except as otherwise provided in this Agreement, any failure of any of the
parties to comply with any obligation, covenant, agreement or condition herein
may be waived by the Party entitled to the benefits thereof only by a written
instrument signed by the Party granting such waiver, but such waiver or the
failure to insist upon strict compliance with such obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure. This Agreement shall not be
considered as an attempted assignment of any policy of insurance or as a
contract of insurance and shall not be construed to waive any right or remedy of
any member of the Parent Group in respect of any insurance policy or any other
contract or policy of insurance.

         7.3. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement.

         7.4. ENTIRE AGREEMENT. The Separation and Distribution Agreement, this
Agreement, the other Ancillary Agreement and the Schedules hereto constitute the
entire agreement between the parties hereto with respect to the subject matter
hereof, and supersede and cancel all prior agreements, negotiations,
correspondence, undertakings, understandings and communications of the parties,
oral and written, with respect to the subject matter hereof.

         7.5. ASSIGNMENT. This Agreement may not be assigned by either Party
without the written consent of the other Party and any attempted assignment
shall be null and void.

         7.6. BINDING NATURE; THIRD-PARTY BENEFICIARIES. This Agreement shall be
binding upon and inure solely to the benefit of the parties hereto and their
respective successors and permitted assigns. Nothing in this Agreement, express
or implied, is intended to or shall confer upon any other Person or Persons any
rights, benefits or remedies of any nature whatsoever under or by reason of this
Agreement.

<Page>

                                       11

         7.7. SEVERABILITY. This Agreement shall be deemed severable; the
invalidity or unenforceability of any term or provision of this Agreement shall
not affect the validity or enforceability of this Agreement or of any other term
hereof, which shall remain in full force and effect, for so long as the economic
or legal substance of the transactions contemplated by this Agreement is not
affected in any manner materially adverse to any Party. If it is ever held that
any restriction hereunder is too broad to permit enforcement of such restriction
to its fullest extent, each Party agrees that such restriction may be enforced
to the maximum extent permitted by applicable law, and each Party hereby
consents and agrees that such scope may be judicially modified accordingly in
any proceeding brought to enforce such restriction. The Parties acknowledge that
they intend to allocate financial obligations without violating any laws
regarding insurance, self-insurance or other financial responsibility, or
breaching any terms, conditions or provisions of any insurance policies. If it
is determined that any action undertaken pursuant to the Separation and
Distribution Agreement, this Agreement or any other Ancillary Agreement is
violative of any insurance, self-insurance or related financial responsibility
law or regulation or any term, condition or provision of any insurance policy,
the parties agree to work together to do whatever is necessary to comply with
such law or regulation or insurance policy term condition or provision while
trying to accomplish, as much as possible, the allocation of financial
obligations as intended in the Separation and Distribution Agreement, this
Agreement and any other Ancillary Agreement.

         7.8. CHOICE OF LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware, without regard to
principles of conflicts or choice of laws, or any other law that would make the
laws of any jurisdiction other than Delaware applicable.

         7.9. REIMBURSEMENT. In order to obtain reimbursement of amounts due
under this Agreement, Parent or Piper Jaffray, as the case may be, shall send a
written request for such reimbursement in accordance with Section 7.1, together
with such information as is reasonably required to support its request for
reimbursement; provided, however, that to the extent this Agreement contemplates
the automatic reimbursement of or payment with respect to certain matters, no
notice shall be required. Payment shall be due 30 days after receipt of such
request and supporting information or promptly if no notice is required. If
there are questions or disputes about certain amounts for which reimbursement is
requested, payment should be made on a timely basis with respect to other
amounts. With respect to all amounts that are ultimately determined to be owed
under this Agreement -- either by agreement or through litigation -- but that
were not paid in full within 30 days after the date of receipt of the original
request for reimbursement and supporting information or promptly if no notice is
required, interest at the prime rate published by Citibank N.A. from time to
time, compounded monthly, shall be owed for the period beginning from 30 days
after the date of receipt of the original request for reimbursement and
supporting information, or [10] days if no notice is required until the date of
payment.

         7.10. RIGHT OF SETOFF. With respect only to amounts that may become due
pursuant to and in accordance with the terms of this Agreement, Parent and the

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                                       12

Parent Subsidiaries may deduct from, set off, hold back or otherwise reduce in
any manner whatsoever against any such amounts Parent or the Parent Subsidiaries
or their Affiliates may owe to or hold for the benefit of Piper Jaffray, the
Piper Jaffray Subsidiaries, or their respective Affiliates any such amounts owed
by Piper Jaffray or the Piper Jaffray Subsidiaries or their respective
Affiliates to Parent or the Parent Subsidiaries or their respective Affiliates.
In no event shall Parent and the Parent Subsidiaries deduct from, set off, hold
back or otherwise reduce any such amounts from accounts of, or funds on deposit,
of Piper Jaffray, the Piper Jaffray Subsidiaries, or their respective Affiliates
with Parent and the Parent Subsidiaries.

         7.11. REPRESENTATIONS. Parent represents on behalf of itself and each
other member of the Parent Group and Piper Jaffray represents on behalf of
itself and each other member of the Piper Jaffray Group as follows:

         (a) each such Person has the requisite corporate or other power and
     authority and has taken all corporate or other action necessary in order to
     execute, deliver and perform this Agreement; and

         (b) this Agreement has been duly executed and delivered by such Person
     and constitutes a valid and binding agreement of it enforceable in
     accordance with the terms thereof (assuming the due execution and delivery
     thereof by the other Party).

         7.12. NO LIABILITY. Piper Jaffray does hereby, for itself and as agent
for each other member of the Piper Jaffray Group, agree that no member of the
Parent Group or any Parent Indemnitee shall have any Liability whatsoever as a
result of the insurance policies and practices of Parent and its Subsidiaries as
in effect at any time prior to the Distribution Time, including as a result of
the level or scope of any such insurance, the creditworthiness of any insurance
carrier, the terms and conditions of any policy, the adequacy or timeliness of
any notice to any insurance carrier with respect to any claim or potential claim
or otherwise.

         7.13. HEADINGS. The table of contents, and the article and other
headings contained in this Agreement are inserted for convenience of reference
only and shall not affect in any way the meaning or interpretation of this
Agreement.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the day and year first above written.

                                  U.S. Bancorp
                                  By:
                                       -----------------------------------
                                       Name:
                                       Title:

                                  Piper Jaffray Companies
                                  By:
                                       -----------------------------------
                                       Name:
                                       Title:

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