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Compensation Table on February 22, 2005. The table does not include options granted onFebruary 21, 2006, that were included in the Summary Compensation Table for 2005.Percent ofNumber of Total OptionsSecurities Granted to Exercise Price Grant DateUnderlying Employees in per Share Present ValueName Options Granted Fiscal Year ($) Expiration Date ($)Andrew S. Duff*************** 11,719 2.98 (1) 39.62 (2) February 22, 2015 202,504 (3)Francis E. Fairman ************ 1,391 0.35 (1) 39.62 (2) February 22, 2015 24,036 (3)Robert W. Peterson *********** 6,250 1.59 (1) 39.62 (2) February 22, 2015 108,000 (3)Addison L. Piper ************* 2,171 0.55 (1) 39.62 (2) February 22, 2015 37,515 (3)Thomas P. Schnettler ********* 12,696 3.22 (1) 39.62 (2) February 22, 2015 219,387 (3)(1)(2)(3)Based on options granted to employees during 2005 to purchase a total of 393,786 shares of ourcommon stock.The exercise price is the closing price of our common stock on February 22, 2005.The options granted on February 22, 2005, were valued using a Black-Scholes option pricing methodthat assumed a risk-free interest rate of 3.76%, a dividend yield of zero, a stock volatility factor of38.57% and an expected life of the options of six years, resulting in an option value of $17.28.Year-End Option ValuesThe following table provides information about unexercised options to purchase shares of ourcommon stock held by our chief executive officer and the other executive officers named in theSummary Compensation Table as of December 31, 2005. In 2005, options were granted onFebruary 22, 2005. The options included in the Summary Compensation Table for 2005 were grantedon February 21, 2006, and therefore are not included in the following table. Neither our chiefexecutive officer nor any other officer named in the Summary Compensation Table held options topurchase shares of Piper Jaffray Companies common stock that were exercisable as of December 31,2005, and, as a result, no options had been exercised as of December 31, 2005.Number of SecuritiesValue of UnexercisedUnderlying Unexercised In-the-Money OptionsOptions at Fiscal Year-End at Fiscal Year-End (1)Name Exercisable Unexercisable Exercisable Unexercisable(1)Andrew S. Duff ************************* — 36,659 — $9,141Francis E. Fairman*********************** — 5,023 — $1,085Robert W. Peterson ********************** — 8,188 — $4,875Addison L. Piper ************************ — 9,920 — $1,693Thomas P. Schnettler ******************** — 14,634 — $9,902The value of unexercised in-the-money options at fiscal year-end was calculated based on the differencebetween the closing price of our common stock on December 30, 2005 (the last business day of our2005 fiscal year) and the option exercise price, multiplied by the number of shares underlying eachoption.Cash Award Agreements in Connection with Our Spin-Off from U.S. BancorpIn connection with our spin-off from U.S. Bancorp on December 31, 2003, we established a cashaward program pursuant to which we granted cash awards to more than 2,300 of our employees,including all of our executive officers, who were employees of our business on December 15, 2003.These cash awards were designed to aid in retaining highly skilled and motivated employees and toprovide fair treatment to our employees whose U.S. Bancorp stock option and restricted stock awardsexpired or were forfeited as a result of the spin-off. The cash awards are not a part of our regular20