Document:

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                                                                    Exhibit 10.1

                                     FORM OF

                           EMPLOYEE BENEFITS AGREEMENT

                                 BY AND BETWEEN

                                  U.S. BANCORP

                                       AND

                          PIPER JAFFRAY COMPANIES INC.

                                   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   Convertible High Performance Option...........................................................2
         1.13   Convertible Parent Option.....................................................................2
         1.14   Convertible Restricted Stock..................................................................3
         1.15   Covered Employees.............................................................................3
         1.16   Distribution..................................................................................3
         1.17   Distribution Date.............................................................................3
         1.18   Distribution Year.............................................................................3
         1.19   ERISA.........................................................................................3
         1.20   Former Parent Employee........................................................................3
         1.21   Former Piper Jaffray Employee.................................................................3
         1.22   Health and Welfare Plans......................................................................3
         1.23   High Performance Option.......................................................................3
         1.24   HIPAA.........................................................................................3
         1.25   Immediately after the Distribution Date.......................................................3
         1.26   Independent Third Party.......................................................................3
         1.27   Liabilities...................................................................................4
         1.28   Match Date....................................................................................4
         1.29   Non-Convertible High Performance Option.......................................................4
         1.30   Non-Convertible Parent Option.................................................................4
         1.31   Non-parties...................................................................................4
         1.32   NYSE..........................................................................................4
         1.33   Option........................................................................................4
         1.34   Parent........................................................................................4
         1.35   Parent Common Stock...........................................................................4
         1.36   Parent Employee...............................................................................4
         1.37   Parent Entities...............................................................................4
         1.38   Parent Executive Benefit Plans................................................................4
         1.39   Parent Flexible Benefit Plans.................................................................4
         1.40   Parent Long-Term Incentive Plans..............................................................4
         1.41   Parent Non-Qualified Retirement Plan..........................................................5
         1.42   Parent Non-Qualified Retirement Plan Participant..............................................5
         1.43   Parent Opening Stock Value....................................................................5

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         1.44   Parent Pension Plan...........................................................................5
         1.45   Parent Post-Retirement Welfare Benefits Plan..................................................5
         1.46   Parent Savings Plan...........................................................................5
         1.47   Parent Severance Pay Program..................................................................5
         1.48   Parent Stock Value............................................................................5
         1.49   Participating Company.........................................................................6
         1.50   Person........................................................................................6
         1.51   Piper Jaffray.................................................................................6
         1.52   Piper Jaffray Business........................................................................6
         1.53   Piper Jaffray Common Stock....................................................................6
         1.54   Piper Jaffray Common Stock Value..............................................................6
         1.55   Piper Jaffray Employee........................................................................6
         1.56   Piper Jaffray Entities........................................................................6
         1.57   Piper Jaffray Executive Benefit Plans.........................................................6
         1.58   Piper Jaffray Flexible Benefit Plan...........................................................6
         1.59   Piper Jaffray Long-Term Incentive Plan........................................................7
         1.60   Piper Jaffray Non-Qualified Retirement Plan...................................................7
         1.61   Piper Jaffray Savings Plan....................................................................7
         1.62   Piper Jaffray Savings Plan Trust..............................................................7
         1.63   Restricted Stock..............................................................................7
         1.64   Restricted Stock Unit.........................................................................7
         1.65   Separation....................................................................................7
         1.66   Separation and Distribution Agreement.........................................................7
         1.67   Subsidiaries..................................................................................7
         1.68   Tax Sharing Agreement.........................................................................7
         1.69   Transferred Account Balances..................................................................7
         1.70   Transition Date...............................................................................7
         1.71   U.S. .........................................................................................7

ARTICLE II      GENERAL PRINCIPLES............................................................................8
         2.1    Employment of Piper Jaffray Employees.........................................................8
         2.2    Assumption and Retention of Liabilities; Related Assets.......................................8
         2.3    Piper Jaffray Participation in Parent Benefit Plans...........................................8
         2.4    Service Recognition...........................................................................8
         2.5    Approval by Parent as Sole Stockholder........................................................9

ARTICLE III     DEFINED CONTRIBUTION AND DEFINED BENEFIT PLANS................................................9
         3.1    Savings Plan..................................................................................9
         3.2    Company Match.................................................................................9
         3.3    Parent Pension Plan..........................................................................10
                (a)    Retention of Parent Pension Plan......................................................10
                (b)    Commencement of Pension...............................................................10
                (c)    Vesting...............................................................................10

ARTICLE IV      HEALTH AND WELFARE PLANS.....................................................................10
         4.1    General......................................................................................10

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                (a)    Establishment of Piper Jaffray Health and Welfare Plans...............................10
                (b)    Retention of Sponsorship and Liabilities..............................................11
                (c)    Certain Specific Claims...............................................................11
         4.2    Flexible Benefit Plan........................................................................12
         4.3    Workers' Compensation Liabilities............................................................12
         4.4    Payroll Taxes and Reporting of Compensation..................................................12
         4.5    Parent Post-Retirement Welfare Benefits Plan.................................................12
                (a)    Retention of Parent Post-Retirement Welfare Benefits Plan.............................12
                (b)    Piper Jaffray Post-Retirement Welfare Benefits Plans..................................13
         4.6    COBRA and HIPAA Compliance...................................................................13

ARTICLE V       EXECUTIVE BENEFITS AND OTHER BENEFITS........................................................13
         5.1    Assumption of Obligations....................................................................13
         5.2    Parent Executive Incentive Plan and the Annual Incentive Plan................................13
                (a)    Piper Jaffray Bonus Awards............................................................13
                (b)    Parent Bonus Awards...................................................................14
         5.3    Parent Long-Term Incentive Plans.............................................................14
                (a)    Non-Convertible Parent Options........................................................14
                (b)    Convertible Parent Options............................................................14
                (c)    Incentive Stock Options; Foreign Grants/Awards........................................15
                (d)    Other Awards..........................................................................15
                       (i)   Convertible Parent Restricted Stock.............................................15
                       (ii)  Non-Convertible Parent Restricted Stock.........................................15
                       (iii) Restricted Stock Units..........................................................15
                (e)    Aggregate Limit.......................................................................16
                (f)    Miscellaneous Option and Other Award Terms............................................16
                (g)    Waiting Period for Exercisability of Options..........................................17
                (h)    Restrictive Covenants.................................................................17
         5.4    Registration Requirements....................................................................18
         5.5    Parent Non-Qualified Retirement Plans........................................................18
         5.6    Severance Plans..............................................................................18

ARTICLE VI      GENERAL AND ADMINISTRATIVE...................................................................19
         6.1    Sharing of Participant Information...........................................................19
         6.2    Reasonable Efforts/Cooperation...............................................................19
         6.3    No Third-Party Beneficiaries.................................................................19
         6.4    Audit Rights With Respect to Information Provided............................................20
         6.5    Fiduciary Matters............................................................................20
         6.6    Consent of Third Parties.....................................................................20

ARTICLE VII     MISCELLANEOUS................................................................................21
         7.1    Effect If Distribution Does Not Occur........................................................21
         7.2    Relationship of Parties......................................................................21
         7.3    Affiliates...................................................................................21
         7.4    Notices......................................................................................21
         7.5    Incorporation of Separation and Distribution Agreement Provisions............................22

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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 "CONVERTIBLE HIGH PERFORMANCE OPTION" means each portion of a High
Performance Option, on a grant by grant basis, which is not a Non-Convertible
High Performance Option.

     1.13 "CONVERTIBLE PARENT OPTION" means a Parent Option that, as of the
Distribution Date, (i) is not a High Performance Option, (A) is outstanding
under any Parent Long-Term Incentive Plan, (B) is vested, (C) is held by a
person who is a Piper Jaffray Employee, and (D) would by its terms continue to
vest and would remain exercisable for the remainder of its term following such
employee's termination of employment (x) by Parent other than for "cause" or
"misconduct" or (y) by the optionee, (ii) is not a High Performance Option,
(A) is outstanding under any Parent Long-Term Incentive Plan, (B) is held by a
person who is a Piper Jaffray Employee, and (C) would terminate within 90 days
following a termination of the optionee's employment other than for "gross and
willful misconduct" or "cause" or (iii) is a Convertible High Performance
Option.

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     1.14 "CONVERTIBLE RESTRICTED STOCK" has the meaning set forth in Section
5.3(d)(i).

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

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

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

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

     1.19 "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.

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

     1.21 "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.

     1.22 "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.

     1.23 "HIGH PERFORMANCE OPTION" means a Parent Option that, as of the
Distribution Date, (i) is outstanding under any Parent Long-Term Incentive Plan,
(ii) is held by a person who is a Piper Jaffray Employee, (iii) is unvested,
(iv) was granted on January 19, 1999 or February 16, 1999 and (v) were not
granted pursuant to plan UC83 or UM80.

     1.24 "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.

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

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

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

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

     1.29 "NON-CONVERTIBLE HIGH PERFORMANCE OPTION" means fifty percent, on a
grant by grant basis, of the shares of Parent Common Stock subject to a High
Performance Option.

     1.30 "NON-CONVERTIBLE PARENT OPTION" means a Parent Option outstanding
under any Parent Long-Term Incentive Plan as of the Distribution Date other than
a Convertible Parent Option.

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

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

     1.33 "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.

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

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

     1.36 "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.

     1.37 "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.

     1.38 "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.

     1.39 "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.

     1.40 "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

                                      -4-
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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.

     1.41 "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.

     1.42 "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.

     1.43 "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.

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

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

     1.46 "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.

     1.47 "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.

     1.48 "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 trading date immediately preceding
the Distribution Date.

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     1.49 "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.

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

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

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

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

     1.54 "PIPER JAFFRAY COMMON STOCK VALUE" means the excess of the Parent
Stock Value over the Parent Ex-Dividend Closing Stock Value. For purposes of
this Section 1.54, the "Parent Ex-Dividend Closing Stock Value" means the
closing per-share price of the Parent Common Stock trading "ex-dividend" 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 Dividend Date; PROVIDED,
HOWEVER, that if the Dividend occurs at a time when the NYSE is open for
trading, Parent Ex-Dividend Closing Stock Value shall mean the price at which
Parent Common Stock trading "ex-dividend last trades immediately before the
Dividend; PROVIDED, FURTHER, that if the Dividend occurs prior to the first
trade on the Dividend Date, the Parent Ex-Dividend Closing Stock Value shall
mean the price at which Parent Common Stock trading "ex-distribution" or "when
issued (to give effect to the Dividend)" last trades on the trading day
immediately preceding the Distribution Date.

     1.55 "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.

     1.56 "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.

     1.57 "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.

     1.58 "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.

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     1.59 "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.

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

     1.61 "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.

     1.62 "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.

     1.63 "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.

     1.64 "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.

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

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

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

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

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

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

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

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                                   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 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

                                      -8-
<PAGE>

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 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

                                      -9-
<PAGE>

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.

                                   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.

                                      -10-
<PAGE>

     (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 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

                                      -11-
<PAGE>

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 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

                                      -12-
<PAGE>
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 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

                                      -13-
<PAGE>

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) NON-CONVERTIBLE 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 Non-Convertible Parent Option shall be subject to the same terms and
conditions after the Distribution as the terms and conditions applicable to such
Non-Convertible 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 Non-Convertible 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 Non-Convertible 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 Non-Convertible Parent Option, rounded to the nearest
whole cent, shall be equal to the quotient obtained by dividing (x) the exercise
price of such Non-Convertible 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
Non-Convertible 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.

     (b) CONVERTIBLE PARENT OPTIONS. As determined by the Committee in its sole
discretion pursuant to its authority under any of the Parent Long-Term Incentive
Plans, each Convertible Parent Option shall be converted at the time of the
Distribution into a Piper Jaffray Option, which shall be granted pursuant to the
Piper Jaffray Long-Term Incentive Plan and shall have a Black-Scholes value
equal to the Black-Scholes value of the Convertible Parent Option as of the last
trading date prior to the Distribution Date (as such values are determined in
the sole discretion of the Committee, whose determination, notwithstanding
anything herein to the contrary, shall be final, binding and conclusive for all
purposes under the applicable Parent Long-Term Incentive Plan), assuming for
this purpose that the remaining life of the Convertible

                                      -14-
<PAGE>

Parent Option is the remaining contractual life of such option and subject
to such other terms and conditions as the Committee may specify.

     (c) INCENTIVE STOCK OPTIONS; FOREIGN GRANTS/AWARDS. To the extent that any
of the Parent Options described in Section 5.3(a) are "incentive stock options,"
Parent shall use its commercially reasonable efforts to preserve, at and after
the Distribution, the value and tax treatment accorded to such incentive stock
options, and, to the extent that the Parent Awards described in Section 5.3(d)
below or any of the Parent Options described in Section 5.3(a) or 5.3(b) 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
such Sections 5.3(a), 5.3(b) 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.

     (d) OTHER AWARDS.

     (i) CONVERTIBLE 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 held by a Piper Jaffray
Employee ("CONVERTIBLE RESTRICTED STOCK") shall be converted at the Distribution
into a number of shares of Piper Jaffray Restricted Stock, rounded to the
nearest whole share, required to be granted to the holder of such Parent
Restricted Stock in order that the fair value of such Piper Jaffray Restricted
Stock (as determined by the Committee in its sole discretion following methods
and assumptions consistent with SFAS 123) as of immediately following the
Distribution Date shall equal the fair value of the Parent Restricted Stock
immediately prior to the Distribution Date.

     (ii) NON-CONVERTIBLE 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 that is
not Convertible 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 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.

     (iii) 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

                                      -15-
<PAGE>

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.

     (e) AGGREGATE LIMIT. Notwithstanding any provision of this Section 5.3 to
the contrary, if the aggregate number of shares of Piper Jaffray Common Stock
subject to Piper Jaffray Options and the number of shares of Piper Jaffray
Restricted Stock issuable pursuant to Sections 5.3(b) and 5.3(d)(i) would exceed
8,000,000 in the aggregate, then the number of shares of Piper Jaffray Common
Stock subject to Piper Jaffray Options and shares of Piper Jaffray Restricted
Stock issuable under Sections 5.3(b) and 5.3(d)(i) shall be reduced on an
individual pro rata grant-by-grant basis such that 8,000,000 shares of Piper
Jaffray Common Stock shall be subject to Piper Jaffray Options and Piper Jaffray
Awards issuable pursuant to Sections 5.3(b) and 5.3(d)(i).

     (f) MISCELLANEOUS OPTION AND OTHER AWARD TERMS.

     (i) Parent and Piper Jaffray acknowledge that, in the context of the
Separation, the adjustment to Parent Options and the Parent Awards as set forth
in this Section 5.3 will be implemented, in part, by the issuance of Piper
Jaffray Options and Piper Jaffray Awards under the terms of the Piper Jaffray
Long-Term Incentive Plan. Accordingly, it is intended that, to the extent of the
issuance of such Piper Jaffray Options and Piper Jaffray Awards in connection
with the adjustments set forth in this Section 5.3, the Piper Jaffray Long-Term
Incentive Plan shall be considered a successor to the Parent Long-Term Incentive
Plan and to have assumed the obligation of the Parent Long-Term Incentive Plan
to make the adjustment of Parent Options and Parent Awards as set forth in this
Section 5.3.

     (ii) 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.

     (iii) 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 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.

     (iv) 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

                                      -16-
<PAGE>

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.

     (v) 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.

     (vi) 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.

     (g) WAITING PERIOD FOR EXERCISABILITY OF OPTIONS. The Parent Options and
Piper Jaffray Options shall not be exercisable during a period 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 Piper Jaffray Common
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.

     (h) 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

                                      -17-
<PAGE>

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 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

                                      -18-
<PAGE>

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.

                                   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 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.

                                      -19-
<PAGE>

     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 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.

                                      -20-
<PAGE>

                                  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.

     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

                                      -21-
<PAGE>

                   (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).

                                      -22-
<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:

                                      -23-<Page>

                                                                  EXHIBIT 10.4

                                      FORM

                                       OF

                           BUSINESS ALLIANCE AGREEMENT

                                 by and between

                                  U.S. BANCORP

                                       and

                             PIPER JAFFRAY COMPANIES

                          Dated as of ________ __, 2003

<Page>

                                TABLE OF CONTENTS
<Table>
<Caption>

                                                                                                                PAGE
                                                                                                                ----
<S>              <C>                                                                                            <C>
ARTICLE I.        SCOPE OF AGREEMENT..............................................................................2
     1.1          Scope...........................................................................................2

ARTICLE II.       BUSINESS AGREEMENTS.............................................................................2
     2.1          General.........................................................................................2
     2.2          Investment Funds................................................................................2
     2.3          Capital Market Services Collaboration...........................................................3
     2.4          Joint Products and Services.....................................................................4
     2.5          Settlement, Safekeeping and Other Banking Services..............................................5
     2.6          Customer Information Sharing and Access.........................................................6
     2.7          Securities Dealer Services......................................................................6
     2.8          Transition Matters..............................................................................6

ARTICLE III.      ALLIANCE MANAGEMENT.............................................................................7
     3.1          Alliance Managers...............................................................................7
     3.2          Meetings........................................................................................8
     3.3          Responsibilities................................................................................8

ARTICLE IV.       TERM AND TERMINATION............................................................................8
     4.1          Term............................................................................................8
     4.2          Termination.....................................................................................8
     4.3          Effect of Termination..........................................................................10

ARTICLE V.        GENERAL TERMS AND CONDITIONS...................................................................10
     5.1          Complete Agreement.............................................................................10
     5.2          Expenses.......................................................................................10
     5.3          Governing Law..................................................................................10
     5.4          Notices........................................................................................11
     5.5          Amendment, Modification or Waiver..............................................................11
     5.6          Successors and Assigns; No Third Party Beneficiaries...........................................11
     5.7          Counterparts...................................................................................11
     5.8          Dispute Resolution.............................................................................12
     5.9          Interpretation.................................................................................12
     5.10         Severability...................................................................................12
     5.11         No Joint Venture...............................................................................12
     5.12         No Individual Authority........................................................................12
     5.13         Non-Exclusivity................................................................................12
     5.14         Basis of Bargain...............................................................................12
     5.15         Force Majeure..................................................................................13
     5.16         Priority.......................................................................................13
</Table>

Exhibit A -- Alliance Managers

                                       -i-

<Page>

                           BUSINESS ALLIANCE AGREEMENT

                  THIS BUSINESS ALLIANCE AGREEMENT (this "AGREEMENT"), dated as
of _______ __, 2003, is made and entered into 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"). Parent and Piper Jaffray are sometimes referred to herein
individually as a "PARTY" and collectively as the "PARTIES". Capitalized terms
used in this Agreement that are not otherwise defined herein shall have the
meanings ascribed to them in the Separation Agreement (as defined herein).

                                    RECITALS

                  WHEREAS, Parent and Piper Jaffray have entered into a certain
Separation and Distribution Agreement dated as of the date hereof (as it may be
amended from time to time, the "SEPARATION AGREEMENT"), which sets forth the
principal corporate transactions required to effect the separation of Parent's
businesses into two independent public companies;

                  WHEREAS, pursuant to the provisions of the Separation
Agreement, from and after the consummation of the Merger and the Contribution,
(i) the Piper Jaffray Group will be engaged in the Piper Jaffray Business, (ii)
the Parent Group will be engaged in the Parent Business, (iii) the Piper Jaffray
Group will own and control the Piper Jaffray Assets and assume and be
responsible for the Piper Jaffray Liabilities, and (iv) the Parent Group will
own and control the Parent Assets and assume and be responsible for the Parent
Liabilities;

                  WHEREAS, Section 3.2(c) of the Separation Agreement provides
that prior to the Distribution, each of Parent and Piper Jaffray shall enter
into this Agreement, which is the Business Alliance Agreement referred to in the
Separation Agreement;

                  WHEREAS, Section 2.4 of the Separation Agreement provides,
among other things, that on or before the Contribution Effective Time, each of
Parent and Piper Jaffray shall enter into, or cause appropriate members of the
Group of which it is a member to enter into, such other agreements, certificates
and other documents as may be deemed to be advisable by Parent in connection
with the Separation; and

                  WHEREAS, the Parties desire to enter into this Agreement to
set forth the terms of their agreement regarding certain business alliances,
arrangements, understandings and relationships between and among them and the
other members of each of their respective Groups following the completion of the
Separation (the "ALLIANCE"), including without limitation, the following: (i)
the referral of selected business between the Groups; (ii) the marketing and
distribution of certain financial products and services of the Groups; (iii) the
continued joint provision of certain services by certain members of each Group;
and (iv) certain other matters intended to facilitate the transition of the
Piper Jaffray Business to the Piper Jaffray Group set forth below in this
Agreement.

                                      -1-
<Page>

                  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

                               SCOPE OF AGREEMENT

                  SECTION 1.1 SCOPE. In furtherance of, and in order to document
in its entirety, the Alliance between the Parties, each of Parent and Piper
Jaffray agrees to comply, and to cause the appropriate members of the Group of
which it is a member to comply, with all of the terms and conditions of this
Agreement and the Business Agreements (as defined below) contemplated hereby to
which it, or the applicable member of its Group, is a party.

                                   ARTICLE II

                               BUSINESS AGREEMENTS

                  SECTION 2.1 GENERAL. Subject to the immediately following
sentence, the Parties currently desire to enter into the agreements provided for
in this Article II below (the "BUSINESS AGREEMENTS") on the terms set forth
below and otherwise on such other terms and conditions as are customary for
similar business arrangements, but the Parties agree that the identity and
description of the terms of the Business Agreements hereunder may be modified
from time to time by mutual agreement of the Parties. Notwithstanding anything
herein to the contrary, neither Party shall have any obligation to enter into
any such Business Agreement if the Parties are unable to reach agreement on the
terms thereof on or prior to the date that is six months after the Distribution
Date after negotiating in good faith. Each Business Agreement shall, subject to
Section 5.16 hereof, constitute a separate and complete agreement between the
Parties with respect to the subject matter thereof but may reference or
incorporate the terms and conditions of this Agreement, any other Business
Agreement and/or the Separation Agreement if and when appropriate.

                  SECTION 2.2 INVESTMENT FUNDS. The Parties and/or the
appropriate members of each of their respective Groups shall negotiate in good
faith to enter into Business Agreements pursuant to which Piper Jaffray shall
offer customers of the Piper Jaffray Group various investment fund products
currently managed by Parent's asset management subsidiary on behalf of First
American Funds ("FAF"). The Parties currently contemplate the following specific
Business Agreements that shall be negotiated in good faith and entered into by
and between Piper Jaffray and U.S. Bancorp Asset Management, Inc., a wholly
owned subsidiary of U.S. Bank ("USBAM"):

                  (a) MONEY MARKET FUNDS FOR PIPER JAFFRAY CLIENTS. Under an
         agreement to be entered into between Piper Jaffray and USBAM, money
         market balances held in various Piper Jaffray Group client accounts
         shall be invested in one or more classes of money market funds of FAF
         managed by USBAM. Such money market funds shall be the exclusive
         non-state specific retail sweep money market funds offered by the Piper
         Jaffray Group during the term of the agreement except as required by
         applicable law and regulations including Piper Jaffray's obligation to
         offer suitable investments to its clients.

                                      -2-
<Page>

         This agreement shall provide that shares and/or one or more classes of
         FAF will be named or renamed so as to relate to Piper Jaffray and that
         such shares and/or classes shall have distinct pricing and fee
         arrangements designed for the Piper Jaffray Group. The Piper Jaffray
         Group shall provide omnibus shareholder account record keeping such
         that transactions for its clients shall be made through a single
         account for each money market fund or class of FAF. USBAM and Piper
         Jaffray also shall enter into other service arrangements related to
         operational and compliance matters in connection with the investments
         in FAF by Piper Jaffray Group clients. The agreement shall provide for
         agreed-upon payments to Piper Jaffray for making FAF available to Piper
         Jaffray Group clients under this arrangement and shall have an initial
         term of two years and be renewable annually.

                  (b) LONG-TERM MUTUAL FUNDS FOR PIPER JAFFRAY CLIENTS. Piper
         Jaffray shall include the long-term (non-money market) mutual funds of
         FAF on its preferred list of mutual fund families provided that Piper
         Jaffray continues to maintain such a list or any similar program
         created in future and that such FAF funds meet the criteria Piper
         Jaffray applies equally to all long-term mutual funds considered for
         inclusion on such list or in such program. Pursuant to an existing
         agreement between Piper Jaffray and Quasar Distributors, Piper Jaffray
         shall continue to receive commissions and trailer fees based upon the
         investments of Piper Jaffray Group clients in long-term funds of FAF.
         This agreement shall be renewable annually.

                  (c) REFERRALS BY PIPER JAFFRAY TO USBAM INSTITUTIONAL ADVISORY
         GROUP. Under an agreement to be entered into between Piper Jaffray and
         USBAM, Piper Jaffray may solicit clients for the Institutional Advisory
         Group of USBAM, which manages separate accounts for corporations,
         governmental entities, endowments, foundations, unions and other
         entities. USBAM shall pay a referral fee to Piper Jaffray for
         introductions or leads that result in new clients for this USBAM
         advisory activity. The agreement shall conform to the applicable
         requirements under the Investment Advisers Act of 1940 with respect to
         cash payments for client solicitations and all other legal or
         regulatory requirements.

                  (d) PIPER PRIVATE EQUITY FUND. If the USBAM Institutional
         Advisory Group determines that it would like to make available
         interests in Private Equity Partners II, LP, a private equity fund
         sponsored by Piper Jaffray, or a similar fund, to clients of the
         Institutional Advisory Group through its affiliate U.S. Bancorp
         Investments, Inc. ("USBII"), USBAM, Piper Jaffray and USBII shall enter
         into an agreement that will address the specific obligations on the
         part of Piper Jaffray Private Capital Group, USBAM Institutional
         Advisory Group and USBII as part of this process and shall provide for
         the payment of amounts to the appropriate parties for their appropriate
         services.

                  SECTION 2.3 CAPITAL MARKET SERVICES COLLABORATION. The Parties
and/or the appropriate members of each of their respective Groups shall
negotiate in good faith to enter into Business Agreements pursuant to which
Parent and/or members of the Parent Group shall recommend the Piper Jaffray
Group as a preferred provider of capital market services to clients of the
Parent Group. Such services shall include both (i) investment banking services
and (ii) investment account services. The investment banking services shall
consist of both (A) debt

                                      -3-
<Page>

capital market transactions including senior secured, senior unsecured,
subordinated notes, medium term note programs, brokered CD programs, trust
preferred securities, non-convertible preferred securities and commercial paper
programs (but excluding any municipal finance transactions), and (B) equity
capital market transactions including public equity offerings, public or private
convertible securities, merger and acquisition transactions and private equity
transactions. The investment account services shall include services provided by
Piper Jaffray's fixed income capital markets sales force and corporation cash
management programs. Such agreement or agreements shall provide for the payment
by the Piper Jaffray Group of referral fees to the Parent Group if a Parent
Group client uses any of such preferred provider services of the Piper Jaffray
Group and the same results in a net profit to the Piper Jaffray Group.

                  SECTION 2.4 JOINT PRODUCTS AND SERVICES. The Parties and/or
the appropriate members of each of the respective Groups shall negotiate in good
faith to enter into Business Agreements pursuant to which the Parties shall
jointly provide certain financial products and services of certain members of
each Group to shared customers of the Groups. The Parties currently contemplate
that such agreements will include, without limitation, the following specific
agreements:

                  (a) RETIREMENT SOLUTION PLAN PRODUCT. Under an agreement to be
         entered into between Piper Jaffray and U.S. Bank National Association,
         a national banking association and a wholly owned subsidiary of Parent
         ("U.S. BANK"), Piper Jaffray and U.S. Bank shall continue to market and
         manage the bundled retirement plan product known as "Retirement
         Solution." Specifically, pursuant to the provisions of this agreement,
         Retirement Solution shall continue to be managed by the Institutional
         Trust and Custody group of U.S. Bank ("IT&C"), and USBAM and IT&C shall
         continue to support the Piper Jaffray Group in its sales activities
         relating to Retirement Solution. IT&C and the Piper Jaffray Group shall
         agree upon new procedures and pricing for new clients, including
         procedures for the payment of commissions, and communication processes
         determined to be desirable or necessary in light of the post-Separation
         structure in order to continue to provide high service levels to shared
         clients and to retain this business. Pricing on retirement plan
         customers as of the Merger and the Contribution, shall remain unchanged
         for one year.

                  (b) SOLUTION ONLINE RETIREMENT PLAN PRODUCT. Under an
         agreement to be entered into between Piper Jaffray and U.S. Bank, Piper
         Jaffray's financial advisors shall continue to market and IT&C shall
         continue to manage the online bundled retirement plan product known as
         "Solution Online." Neither the management and distribution of Solution
         Online nor the process by which the Piper Jaffray Group receives
         payments for the distribution of Solution Online shall be fundamentally
         affected by the Separation. IT&C and Piper Jaffray shall agree upon any
         modifications that may be necessary or desirable regarding how the
         product is marketed and distributed.

                  (c) PREMIER PORTFOLIO TRUST PRODUCT (PIPER JAFFRAY MANAGED
         FIDUCIARY TRUST ACCOUNTS AT PARENT). Under an agreement to be entered
         into between U.S. Bank and Piper Jaffray, U.S. Bank and Piper Jaffray
         shall continue to provide in partnership a Premier Portfolio Trust
         product, pursuant to which certain of the investment assets of the
         Piper Jaffray Group clients are held in fiduciary trust accounts at
         U.S. Bank while managed by

                                      -4-
<Page>

         Piper Jaffray Group financial advisors. This agreement shall set forth
         the framework and requirements respecting the Premier Portfolio Trust
         partnership, including the new technology, information access and
         communication processes that will be necessary to continue to jointly
         offer this product following the completion of the Separation.

                  (d) MORTGAGE JOINT VENTURE. Piper Jaffray and U.S. Bank have
         formed a joint venture for the purpose of satisfying the mortgage
         product needs of Piper Jaffray Group clients.

                  SECTION 2.5 SETTLEMENT, SAFEKEEPING AND OTHER BANKING
SERVICES. The Parties and/or the appropriate members of each of their respective
Groups shall negotiate in good faith to enter into Business Agreements pursuant
to which U.S. Bank shall provide to the Piper Jaffray Group's corporate cash
management clients settlement, safekeeping and other banking services. The
Parties expect that the use of such settlement services by such clients of the
Piper Jaffray Group will decline over the term of this Agreement as the Piper
Jaffray Group transitions its customers to alternative settlement services. The
Parties currently contemplate that such agreements will include, without
limitation, the following specific agreements:

                  (a) BASIS POINT CDS, COMMERCIAL PAPER, BANKERS ACCEPTANCES.
         U.S. Bank shall provide certain operational support to the Piper
         Jaffray Group in connection with the Basis Point CD product, including,
         for example, providing the Piper Jaffray Group with credit advice,
         statements of position and confirmations regarding daily remittance
         amounts. Such support shall further provide that the Piper Jaffray
         Group shall promptly provide U.S. Bank with certain information and
         documentation to enable U.S. Bank to provide such operational
         assistance, and the Piper Jaffray Group shall be responsible for late
         fees, penalties and other fees that may arise in connection with the
         provision of this operational assistance.

                  (b) SAFEKEEPING AND BOND ACCOUNTING SERVICES. U.S. Bank shall
         provide safekeeping and bond accounting services to its customers who
         purchase from or sell to the Piper Jaffray Group fixed income products.
         These services shall be substantially identical to the services U.S.
         Bank provides to its customers that transact with other independent,
         third party broker-dealers, and these services shall be governed by
         agreements that are substantially identical to the agreements between
         U.S. Bank and its customers that transact with other independent, third
         party broker-dealers. Such agreements shall further provide that the
         Piper Jaffray Group shall promptly provide U.S. Bank with certain
         information and documentation to enable U.S. Bank to provide such
         operational assistance, and the Piper Jaffray Group shall be
         responsible for late fees, penalties and other fees that may arise in
         connection with the provision of this operational assistance.

                 (c) AUTOMATED CLEARING HOUSE CASH SETTLEMENT SERVICES. Pursuant
         to an existing agreement, U.S. Bank shall continue to accept Automated
         Clearing House ("ACH") files from members of the Piper Jaffray Group to
         facilitate same-day and/or next day debits and credits to the demand
         deposit accounts maintained at U.S. Bank and other financial
         institutions by Piper Jaffray Group customers. The Piper Jaffray
         Group's ability to add new accounts to such ACH files and the gradually
         declining ACH credit exposure

                                      -5-
<Page>

         shall be consistent with the limits mutually agreed upon by U.S. Bank
         and the Piper Jaffray Group which shall be documented in a separate
         agreement. ACH services shall be offered at the aforementioned agreed
         upon credit limits subject to no material adverse change in the
         financial condition of the Piper Jaffray Group. Standard fee
         arrangements and other terms and conditions shall apply to such ACH
         activity.

                  (d) CREDIT LINES. U.S. Bank shall provide the Piper Jaffray
         Group demand lines of credit, which shall be collateralized by
         marketable securities. Additionally, U.S. Bank shall provide the Piper
         Jaffray Group a daylight overdraft line and a day loan line in the
         amounts mutually agreed upon by U.S. Bank and the Piper Jaffray Group
         which shall be documented in a separate agreement and also be subject
         to no material adverse change in the financial condition of Piper
         Jaffray.

                  SECTION 2.6 CUSTOMER INFORMATION SHARING AND ACCESS. The
Parties and/or the appropriate members of each of their respective Groups shall
negotiate in good faith and enter into Business Agreements pursuant to which the
Parent Group shall share with the Piper Jaffray Group certain information
regarding certain shared customers to the extent permitted by applicable law and
such customers. The Parties currently contemplate that such agreements will
include, without limitation, the following specific agreements:

                  (a) PARENT GROUP SERVICES (INFORMATION SHARING). Under an
         agreement to be entered into between U.S. Bank and Piper Jaffray,
         subject to prior, written customer consent, U.S. Bank shall provide
         Piper Jaffray on a regular basis, information regarding the accounting,
         activity and status of the demand deposit and safekeeping accounts of
         their shared customers. Such information shall be provided under terms
         and conditions that are substantially similar to the terms and
         conditions that govern U.S. Bank's provision of such information to
         other independent, third party broker-dealers or recipients of this
         information.

                  (b) SAR ACCESS. Under an agreement to be entered into between
         U.S. Bank and Piper Jaffray, subject to any necessary consents, U.S.
         Bank shall provide Piper Jaffray with access to information on U.S.
         Bank's SAR (Sysout Archival and Retrieval) system until the conversion
         of the information to a new system is complete.

                  SECTION 2.7 SECURITIES DEALER SERVICES. U.S. Bancorp Piper
Jaffray, Inc., a wholly owned subsidiary of Piper Jaffray, has entered into a
certain Dealer Agreement with USBII dated as of April 21, 2003, which agreement
shall continue in full force and effect following completion of the Separation
in accordance with it terms. Such agreement provides that Piper Jaffray's fixed
income trading desk shall provide certain services to USBII relating to the
purchase and sale of fixed income securities products to USBII's customers.

                  SECTION 2.8 TRANSITION MATTERS. The Parties and/or the
appropriate members of each of their respective Groups shall negotiate in good
faith and enter into such agreements relating to the transition of the Piper
Jaffray Business, Piper Jaffray Assets and Piper Jaffray Liabilities to the
Piper Jaffray Group as may be jointly determined by the Parties to be necessary
or

                                      -6-
<Page>

desirable. The Parties currently contemplate that such agreements will
include, without limitation, the following specific agreements:

                  (a) STRUCTURED NOTES PROGRAM MODIFICATIONS. USBII has two
         series of structured notes issued and outstanding, consisting of (i)
         USBI Trust, Series 2002, and (ii) USBI Trust, Series 1998D. The Piper
         Jaffray Group will remain responsible for remarketing and
         administrative services for the structured notes and the Parent Group
         will continue to act as guarantor and trustor. The Parties shall cause
         all necessary amendments to existing agreements reflecting such duties
         to be executed and delivered at or prior to the Contribution Effective
         Time.

                  (b) THIRD PARTY VENDOR CONTRACTS. The Parties and/or the
         appropriate members of each of their respective Groups shall enter into
         an agreement or agreements on or prior to the Contribution Effective
         Time that allocate the use of, and payment responsibility for, products
         and services under various third party contracts including
         telecommunications, data communications, network and market data. In
         situations where a contract is currently in the name of one or more
         members of only one Group and none of the members of the other Group
         are parties thereto, but members of both Groups are sharing the
         applicable products or services, such agreement or agreements shall (i)
         specify a method for notifying third party vendors which Party shall
         continue to use the products or services and become solely responsible
         for payments therefor and (ii) obligate such responsible Party to
         indemnify the other Party from and against any further liability under
         the related third party contract.

                  (c) PRIME ACCOUNT PROCESSING. U.S. Bank shall continue to
         process Piper Jaffray prime accounts until conversion to new system can
         be completed.

                  (d) DAILY CONFIRMS FORMATTED, PRINTED AND MAILED. U.S. Bank
         shall continue to format, print and mail Piper Jaffray's daily confirms
         until this function is outsourced to a third party vendor, which shall
         not exceed four weeks from the date of the Merger and Contribution.

                  (e) NETWORK EQUIPMENT ROOM ENGINEERING SERVICES. U.S. Bancorp
         shall provide engineering services to support Piper Jaffray's portion
         of the network equipment room on the 8th floor of the 800 Nicollet
         Mall, Minneapolis, MN location from the date of the Merger and
         Contribution until the earlier of February 29, 2004 or a third party
         service provider engaged by Piper Jaffray takes over such
         responsibilities.

                                   ARTICLE III

                               ALLIANCE MANAGEMENT

                  SECTION 3.1 ALLIANCE MANAGERS. Each Party shall name one or
more representatives to be its alliance manager for this Agreement and each
other Business Agreement contemplated hereunder (collectively, the "ALLIANCE
MANAGERS"). The initial Alliance Managers

                                      -7-
<Page>

for each Party are listed in attached EXHIBIT A hereto. Either Party may
replace any of its Alliance Managers at any time upon reasonable advance notice
 to the other.

                  SECTION 3.2 MEETINGS. Meetings of the Alliance Managers for
each Business Agreement shall be held from time to time as agreed by the
Alliance Managers, but not less than once every calendar quarter. Such meetings
may be conducted either in person or by telephone.

                  SECTION 3.3 RESPONSIBILITIES. The Alliance Managers shall be
responsible for understanding the full scope of the Alliance. The Alliance
Managers shall further be responsible for engaging the appropriate
representatives of their respective companies to allow the Parties to meet their
obligations hereunder. The responsibilities of the Alliance Managers shall
include, but shall not be limited to, the following:

                  (a) Overall management of the collaborative Alliance of the
         Parties as contemplated by this Agreement, the other Business
         Agreements and the Separation Agreement; and

                  (b) The responsibility to attempt to resolve expeditiously any
         conflict between or among the Parties and/or other members of each
         Group related to this Agreement and/or the other Business Agreements.

                                   ARTICLE IV

                              TERM AND TERMINATION

                  SECTION 4.1 TERM. This Agreement shall commence at the
Contribution Effective Time and shall continue for two (2) years thereafter (the
"TERM") unless earlier terminated by either Party as permitted under the
provisions of this Agreement.

                  SECTION 4.2 TERMINATION. (a) This Agreement may be terminated
for cause by either Party if the other Party is in breach of any of its material
obligations under this Agreement and fails to remedy such breach within thirty
(30) days of receipt of a written notice by the other Party that specifies the
material breach.

                  (b) Either Party may terminate this Agreement, which
termination shall occur immediately, if:

                  (i) the other Party or any significant Subsidiary of such
         Party shall make an assignment for the benefit of creditors;

                  (ii) the other Party or any significant Subsidiary of
         such Party shall petition or apply to any tribunal for the
         appointment of a trustee or receiver of it, or of any
         substantial part of its assets, or commence any proceeding
         relating to it under any bankruptcy, reorganization,
         arrangement, insolvency, readjustment of debt, dissolution or
         liquidation law of any jurisdiction whether now or hereafter
         in effect;

                                      -8-
<Page>

                  (iii) any bankruptcy, insolvency, receivership or
         similar petition or application is filed, or any proceedings
         are commenced against the other Party or any significant
         Subsidiary of such Party and the other Party or any
         significant Subsidiary of such Party by any act indicates its
         approval thereof, consent thereto, or acquiescence therein, or
         any order is entered appointing a trustee or receiver,
         adjudicating the other Party bankrupt or insolvent, or
         approving the petition in any such proceedings and such order
         remains unstayed or undischarged for more than sixty (60)
         days; or

                  (iv) any order is entered in any proceedings against
         the other Party or any significant Subsidiary of such Party
         decreeing the dissolution of the other Party or such
         significant Subsidiary and such order remains unstayed or
         undischarged for more than sixty (60) days.

                  (c) Either Party may terminate this Agreement upon written
notice in the event of a Change of Control (defined below), provided that the
Party undergoing the Change of Control shall use its reasonable best efforts to
notify the other Party of such event at the earliest time that it is legally
permitted and practically able to do so. As used herein, "CHANGE OF CONTROL"
means, with respect to either Party: (1) the acquisition by any Person (it being
understood that the use of the term "Person" in this definition shall be deemed
to include any group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder (the "EXCHANGE ACT")) of Persons) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act for the
purposes of this definition) of securities of such Party where such acquisition
causes such Person, directly or indirectly, to beneficially own more than 50% of
either (i) the then outstanding shares of common stock of such Party
("OUTSTANDING COMMON STOCK") or (ii) the combined voting power of the then
outstanding voting securities of such Party entitled to vote generally in the
election of directors ("OUTSTANDING VOTING SECURITIES"); PROVIDED, HOWEVER, that
for purposes of this subsection (a), any acquisition by (A) any employee benefit
plan (or related trust) sponsored or maintained by such Party or any corporation
controlled by such Party or (B) any corporation, limited liability company or
other entity pursuant to a transaction which complies with clauses (i) and (ii)
of subsection (2) below, shall not be deemed to result in a Change of Control;
or (2) the consummation of, a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of such Party (a
"BUSINESS COMBINATION"), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Common Stock and
Outstanding Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns such Party or all or substantially all of such Party's
assets either directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business
Combination, of the Outstanding Common Stock and Outstanding Voting Securities,
as the case may be, and (ii) no Person beneficially owns, directly or
indirectly, more than 50% of, respectively, the then outstanding shares of
common stock of such corporation resulting from such Business

                                      -9-
<Page>

Combination or the combined voting power of the then outstanding voting
securities of such corporation.

                  SECTION 4.3 EFFECT OF TERMINATION. Upon any expiration or
earlier termination of this Agreement, the rights and obligations of the Parties
hereunder shall terminate, excluding those provisions that by their terms extend
beyond such termination. For the avoidance of doubt, nothing herein shall
terminate any on-going payment or other obligation under any other Business
Agreement, which obligations shall be governed solely by the terms of such
Business Agreement (except to the extent, if any, set forth therein).

                                    ARTICLE V

                          GENERAL TERMS AND CONDITIONS

                  SECTION 5.1 COMPLETE AGREEMENT. (a) This Agreement and the
Exhibits hereto, the Business Agreements and the Separation Agreement shall
constitute the entire agreement between the Parties with respect to the subject
matter hereof and shall supersede all previous negotiations, commitments and
writings with respect to such subject matter.

                  (b) 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:

                  (i) 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 each of this
         Agreement and each other Business Agreement that shall be agreed to and
         finalized in accordance with this Agreement (including Section 2.1
         hereof) (collectively, the "TRANSACTION AGREEMENTS") in each case to
         which it is a party and to consummate the transactions contemplated by
         the Transaction Agreements to which it is a party; and

                  (ii) this Agreement has been duly executed and delivered by
         such Person (if such Person is a party) and constitutes a valid and
         binding agreement of it enforceable in accordance with the terms hereof
         (assuming the due execution and delivery hereof by the other party),
         and each of the other Transaction Agreements to which it will be a
         party will be duly executed and delivered by it and will constitute 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 or parties to such Transaction Agreement).

                  SECTION 5.2 EXPENSES. Except as expressly set forth in this
Agreement or in any other Business Agreement or the Separation Agreement, and
regardless of whether or not the Separation or the Distribution is consummated,
all third party fees, costs and expenses paid or incurred in connection with the
transactions contemplated by this Agreement and the Business Agreements shall be
paid by the Party incurring such fees, costs or expenses.

                  SECTION 5.3 GOVERNING LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware (other than
the laws regarding

                                      -10-
<Page>

choice of laws and conflicts of laws that would apply the substantive laws of
any other jurisdiction) as to all matters, including matters of validity,
construction, effect, performance and remedies.

                  SECTION 5.4 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):

                  If to Parent or any member of the Parent Group:

                           U.S. Bancorp
                           800 Nicollet Mall
                           BC-MN-H23I
                           Minneapolis, Minnesota  55402
                           Attention:  Lee R. Mitau
                           Fax:  (612) 303-0898

                  If to Piper Jaffray or any member of the Piper Jaffray Group:

                           Piper Jaffray Companies
                           800 Nicollet Mall, Suite 800
                           Minneapolis, Minnesota  55402
                           Attention:  James L. Chosy
                           Fax:  (612) 303-1772

                  SECTION 5.5 AMENDMENT, MODIFICATION OR WAIVER. This Agreement
may be amended, modified, waived or supplemented, in whole or in part, only by a
written agreement signed by each of the Parties. The waiver by the Parties of
any breach of this Agreement shall not be construed as a waiver of any
subsequent breach.

                  SECTION 5.6 SUCCESSORS AND ASSIGNS; NO THIRD PARTY
BENEFICIARIES. (a) This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the Parties and their successors and
permitted assigns, but neither this Agreement nor any of the rights, interests
and obligations hereunder shall be assigned or otherwise transferred, in whole
or in part, by any Party without the prior written consent of the other Party.

                  (b) 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.

                  SECTION 5.7 COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                      -11-
<Page>

                  SECTION 5.8 DISPUTE RESOLUTION. Any controversy, claim or
question of interpretation arising out of or relating to this Agreement
(including without limitation a claimed breach of any of the provisions hereof)
that is not resolved by the Parties shall be resolved in accordance with the
provisions of Section 9.9 of the Separation Agreement.

                  SECTION 5.9 INTERPRETATION. Article and Section headings
contained in this Agreement are solely for the purpose of reference, are not
part of the agreement of the Parties and shall not in any way affect the meaning
or interpretation of this Agreement.

                  SECTION 5.10 SEVERABILITY. If any provision of this Agreement
or the application thereof to any Person or circumstance is determined by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions hereof, or the application of such provision to Persons or
circumstances other than those as to which it has been held invalid or
unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any Party.

                  SECTION 5.11 NO JOINT VENTURE. Notwithstanding any provision
hereof, this Agreement does not create, and is not intended to create, a joint
venture, partnership or agency relationship between the Parties. For all
purposes of this Agreement, each Party shall be and act as an independent
contractor and not as partner, joint venturer or agent of the other and shall
not bind nor attempt to bind the other to any contract. Each Party shall be free
to manage and control its business as it sees fit, without the management,
control or assistance of the other Party, except as otherwise prescribed herein
or in any other Business Agreement or the Separation Agreement.

                  SECTION 5.12 NO INDIVIDUAL AUTHORITY. Neither Party shall,
without the express, prior written consent of the other Party, take any action
for or on behalf of or in the name of the other Party, assume, undertake or
enter into any commitment, debt, duty or obligation binding upon any other
Party, except for actions expressly provided for in this Agreement or pursuant
to any other Business Agreements entered into between the Parties.

                  SECTION 5.13 NON-EXCLUSIVITY. Unless otherwise expressly set
forth herein or in any other agreement between the Parties or other members of
their respective Groups, the undertaking referenced herein and the relationship
between the Parties, and all aspects thereof are and shall be non-exclusive.
Provided that such activities do not otherwise constitute a breach of the
Separation Agreement or any Business Agreement, each Party may develop itself,
or purchase or otherwise acquire from third parties, any products or services,
and each Party may engage in any business, even if such business is competitive
with the business of the other Party.

                  SECTION 5.14 BASIS OF BARGAIN. Parent and Piper Jaffray
acknowledge that each Party has entered into this Agreement in reliance upon the
disclaimers of warranties and limitations of liability and damages as set forth
in this Agreement and the Separation Agreement, and that such provisions form an
essential basis of the bargain between the Parties and do not cause this
Agreement, or the remedies available hereunder, to fail of its or their
essential purpose.

                                      -12-
<Page>

                  SECTION 5.15 FORCE MAJEURE. Excluding the obligation to make
payment when due, in the event that either Party is prevented from performing,
or is unable to perform, any of its obligations under this Agreement due to any
cause beyond the reasonable control of the Party invoking this provision, the
affected Party's performance will be excused and the time for performance will
be extended for the period of delay or inability to perform due to such
occurrence.

                  SECTION 5.16 PRIORITY. Should there be a conflict between any
other Business Agreement and this Agreement or should this Agreement be silent
on a matter addressed in any other Business Agreement (and not in the Separation
Agreement), such other Business Agreement shall prevail as to the subject matter
thereof. Should there be a conflict between this Agreement and the Separation
Agreement or should this Agreement be silent on a matter addressed in the
Separation Agreement, the Separation Agreement shall prevail as to the subject
matter thereof.

                                      -13-

<Page>

                  IN WITNESS WHEREOF, each of the Parties has caused this
Agreement to be executed by its duly authorized representative.

                                  U.S. BANCORP

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

                                  PIPER JAFFRAY COMPANIES

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

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