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 <p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">As filed with the Securities and Exchange Commission on August&nbsp;12, 2005</font></b></p> <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p align="right" style="border:none;font-weight:bold;margin:0pt 0pt .0001pt;padding:0pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p> <p align="right" style="border:none;font-weight:bold;margin:0pt 0pt .0001pt;padding:0pt;page-break-after:avoid;text-align:right;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p> </div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:auto;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br></font></b><font size="2" style="font-size:10.0pt;">WASHINGTON,
D.C. 20549</font></p>

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<p style="font-size:18.0pt;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:auto;text-align:center;">FORM&nbsp;S-8</p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:auto;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">REGISTRATION STATEMENT<br>
UNDER<br>
THE SECURITIES ACT OF 1933</font></b></p>

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<p style="font-size:18.0pt;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;">Refco
Inc.</p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact Name of Registrant
as Specified in its Charter)</font></p>

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 <tr>
  <td width="304" valign="top" style="padding:0pt .7pt 0pt 0pt;width:227.9pt;">
  <p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:auto;text-align:center;">Delaware</p>
  </td>
  <td width="304" valign="top" style="padding:0pt .7pt 0pt 0pt;width:227.9pt;">
  <p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">20-2537426</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="304" valign="top" style="padding:0pt .7pt 0pt 0pt;width:227.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or Other
  Jurisdiction of<br>
  Incorporation or Organization)</font></p>
  </td>
  <td width="304" valign="top" style="padding:0pt .7pt 0pt 0pt;width:227.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>
  Identification No.)</font></p>
  </td>
 </tr>
</table>

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<p style="line-height:1.0pt;margin:0pt 0pt 5.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">One World Financial Center<br>
200 Liberty Street, Tower A<br>
New York, New York 10281<br>
(212) 693-7000</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal Executive Offices)</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REFCO INC.<br>
2005 STOCK INCENTIVE PLAN</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Full Title of Plan)</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dennis A. Klejna<br>
Refco Inc.<br>
One World Financial Center<br>
200 Liberty Street, Tower A<br>
New York, New York 10281<br>
(212) 693-7000</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Name, Address, and Telephone Number,<br>
Including Area Code, of Agent For Service)</font></p>

<p style="font-weight:bold;margin:18.0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CALCULATION OF REGISTRATION FEE</font></b></p>

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<table border="1" cellspacing="0" cellpadding="0" style="border:none;border-collapse:collapse;">
 <tr>
  <td width="286" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:214.4pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;">Title&nbsp;of&nbsp;Each&nbsp;Class&nbsp;of&nbsp;Securities&nbsp;to&nbsp;be&nbsp;Registered&nbsp;</p>
  </td>
  <td width="13" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:10.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="64" colspan="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:48.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount&nbsp;to&nbsp;be<br>
  Registered(1)</font></b></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="95" colspan="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed&nbsp;Maximum<br>
  Offering&nbsp;Price&nbsp;Per<br>
  Share(2)</font></b></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="95" colspan="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:71.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed&nbsp;Maximum<br>
  Aggregate&nbsp;Offering<br>
  Price(2)</font></b></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="78" colspan="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:58.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount&nbsp;of<br>
  Registration&nbsp;Fee</font></b></p>
  </td>
  <td width="2" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="286" valign="top" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:214.4pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock,
  $0.001 par value</font></p>
  </td>
  <td width="13" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:10.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:3.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="55" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:41.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,650,000</font></p>
  </td>
  <td width="5" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:3.45pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:21.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:29.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;27.09</font></p>
  </td>
  <td width="28" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:21.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:7.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="75" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:56.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;207,238,500&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width="10" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:7.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:5.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="62" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:46.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;24,391.97&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width="8" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:5.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="286" style="border:none;"></td>
  <td width="13" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="55" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
  <td width="28" style="border:none;"></td>
  <td width="39" style="border:none;"></td>
  <td width="28" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
  <td width="10" style="border:none;"></td>
  <td width="75" style="border:none;"></td>
  <td width="10" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="62" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
 </tr>
</table>

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<p style="line-height:1.0pt;margin:0pt 0pt 5.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The securities to be
registered are issuable under the Refco Inc. 2005 Stock Incentive Plan. Pursuant
to Rule&nbsp;416(a)&nbsp;under the Securities Act of 1933, this Registration
Statement shall cover such additional securities as may be offered or issued to
prevent dilution resulting from stock splits, stock dividends or similar
transactions.</p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Estimated
pursuant to Rule&nbsp;457(h)&nbsp;and 457(c)&nbsp;solely for purposes of
calculating the registration fee based on the average of the high and low sale
prices of the common stock on August&nbsp;11, 2005 as reported by the New York
Stock Exchange.</p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="ExplanatoryNote_125813"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXPLANATORY NOTE</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This registration
statement on Form&nbsp;S-8 of Refco Inc. (this &#147;Registration Statement&#148;)
has been prepared in accordance with the requirements of Form&nbsp;S-8
under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), to
register up to 7,650,000 shares of our common stock, par value $0.001 per
share, issued and to be issued to participants in the Refco Inc. 2005 Stock
Incentive Plan (the &#147;Plan&#148;), which includes the registration for reoffer and
resale of</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>up
to 4,015,860 restricted shares of our common stock issued prior to the filing
of this Registration Statement to employees, officers and directors in exchange
for contributions to us at the time of our formation of restricted Class&nbsp;B
member interests of our predecessor New Refco Group Ltd., LLC originally
granted by our predecessor to such employees, officers and directors under
written compensation contracts, which shares constitute &#147;restricted securities&#148;
as such term is defined in Rule&nbsp;144(a)(3)&nbsp;under the Securities Act, and</p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>up
to 3,634,140 shares of our common stock that may be acquired in the future
under this Registration Statement by participants in the Plan who are our &#147;affiliates&#148;
as such term is defined in Rule&nbsp;405 under the Securities Act of 1933,
which shares constitute &#147;control securities&#148; as such term is defined in General
Instruction C.1(a)&nbsp;of Form&nbsp;S-8 under the Securities Act.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The materials that follow Part&nbsp;I
and precede Part&nbsp;II of this Registration Statement constitute a reoffer
prospectus, prepared in accordance with the requirements of Part&nbsp;I of Form&nbsp;S-3,
in accordance with General Instruction C of Form&nbsp;S-8. As specified
in General Instruction C of Form&nbsp;S-8, the amount of securities to be
reoffered or resold under the reoffer prospectus by each selling stockholder
and any other person with whom he or she is acting in concert for the purpose
of selling our securities, may not exceed, during any three-month period, the
amount specified in Rule&nbsp;144(e).</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Parti_131012"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PART&nbsp;I</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Section10aprospectus_131013"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECTION&nbsp;10(a)&nbsp;PROSPECTUS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The documents containing the information specified in Part&nbsp;I
of this Registration Statement will be sent or given to participants in the
Plan as specified by Rule&nbsp;428(b)(i)&nbsp;under the Securities Act. Such
documents are not required to be, and are not being, filed by Refco Inc. with
the Securities and Exchange Commission (the &#147;SEC&#148;), either as part of this
Registration Statement or as prospectuses or prospectus supplements pursuant to
Rule&nbsp;424 under the Securities Act. Such documents, together with the
documents incorporated by reference herein pursuant to Item 3 of Part&nbsp;II
of this Registration Statement, constitute a prospectus that meets the
requirements of Section&nbsp;10(a)&nbsp;of the Securities Act.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Throughout this Registration Statement, the words &#147;Refco,&#148;
&#147;we,&#148; &#147;us,&#148; the &#147;Company,&#148; the &#147;Registrant,&#148; and &#147;our&#148; refer to Refco Inc. and
its consolidated subsidiaries.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I-</font><font face="Times New Roman">1</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="ReofferProspectus_130133"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REOFFER PROSPECTUS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,650,000 Shares</font></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Refco Inc.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock&#160;&#160; </font></p>

<p style="line-height:9.0pt;margin:0pt 0pt 6.0pt;text-align:center;"></p>

<div style="line-height:9.0pt;margin:0pt 0pt 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;">This prospectus covers the
reoffer and resale by the selling stockholders of up to 7,650,000 shares of our
common stock that we have issued or that we may issue in the future to
participants in the Refco Inc. 2005 Stock Incentive Plan (the &#147;Plan&#148;),
including</p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>up
to 4,015,860 restricted shares of our common stock issued prior to the filing
of the registration statement of which this reoffer prospectus is a part to
employees, officers and directors in exchange for contributions to us at the
time of our formation of restricted Class&nbsp;B member interests of our
predecessor New Refco Ltd., LLC originally granted by our predecessor to such
employees, officers and directors under written compensation contracts, which
shares constitute &#147;restricted securities&#148; as such term is defined in Rule&nbsp;144(a)(3)&nbsp;under
the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), and</p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>up
to 3,634,140 shares of our common stock that we may issue in the future to
participants in the Plan who are our &#147;affiliates&#148; as such term is defined in Rule&nbsp;405
under the Securities Act of 1933, which shares constitute &#147;control securities&#148;
as such term is defined in General Instruction C.1(a)&nbsp;of Form&nbsp;S-8
under the Securities Act.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock is listed on the New York Stock
Exchange under the symbol &#147;RFX.&#148;</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares may be offered by the selling stockholders
from time to time through or to brokers on the New York Stock Exchange, in the
over-the-counter market or otherwise at prices acceptable to the selling
stockholders. The amount of securities to be offered or resold under this
prospectus by each selling stockholder or other person with whom he or she is
acting in concert for the purpose of selling our securities, may not exceed,
during any three month period, the amount specified in Rule&nbsp;144(e)&nbsp;under
the Securities Act.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 30.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investing in our
common stock involves risks. See &#147;Risk Factors&#148; on page&nbsp;4.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither the Securities and Exchange Commission nor any
state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to
the contrary is a criminal offense.</font></p>


 <p style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The date of this prospectus is&nbsp;August&nbsp;12, 2005.</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><a name="TableOfContents_130104"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TABLE OF CONTENTS</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:5.12%;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Page</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#WhereYouCanFindMoreInformation_175723">WHERE YOU CAN FIND MORE
  INFORMATION</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#IncorporationOfCertainDocumentsBy_183101">INCORPORATION OF CERTAIN
  DOCUMENTS BY REFERENCE</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ProspectusSummary_130101">PROSPECTUS SUMMARY</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RiskFactors_130406">RISK FACTORS</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ForwardlookingStatements_131315">FORWARD-LOOKING STATEMENTS</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#UseOfProceeds_131344">USE OF PROCEEDS</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#SellingStockholders_131552">SELLING STOCKHOLDERS</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#PlanOfDistribution_180512">PLAN OF DISTRIBUTION</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#LegalMatters_131422">LEGAL MATTERS</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.88%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Experts_131425">EXPERTS</a></font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.82%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 11.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="line-height:9.0pt;margin:0pt 0pt 12.0pt;text-align:center;"></p>

<div style="line-height:9.0pt;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><b><font style="font-weight:bold;">You should
rely only on the information contained in or incorporated by reference into
this document or to which we have referred you. We have not authorized anyone
to provide you with information that is different. This document may only be
used where it is legal to sell these securities. The information in this
document may only be accurate on the date of this document.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;REFCO&#148; and the Refco logo are our trademarks. Other
service marks, trademarks and trade names referred to in this prospectus are
the property of their respective owners. As indicated in this prospectus, we
have included market data and industry forecasts that were obtained from
industry publications.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">1</font></p>
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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="WhereYouCanFindMoreInformation_175723"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHERE YOU CAN FIND MORE INFORMATION</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;letter-spacing:-.1pt;">We are subject to the
informational requirements of the</font> Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;), and under those requirements we file reports and
other information with the Securities and Exchange Commission (the &#147;SEC&#148;). The
SEC maintains a website on the Internet that contains reports, proxy and
information statements and other information regarding registrants, including
our company, that file electronically with the SEC. The SEC&#146;s website address
is <i><font style="font-style:italic;">www.sec.gov.</font></i> In addition, our filings
with the SEC may be inspected and copied at the public reference facilities of
the SEC located at Room&nbsp;1024, Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, DC 20549; and at the SEC&#146;s regional offices at Citicorp Center, 500
West Madison Street, Room&nbsp;1400, Chicago, IL 60661, and at 233 Broadway,
New York, NY 10279. Copies of our filings may also be obtained upon request and
payment of the appropriate fee from the Public Reference Section&nbsp;of the
SEC located at Room&nbsp;1024, Judiciary Plaza, 450&nbsp;Fifth Street, N.W.,
Washington, DC 20549. &#160;The public may
obtain information on the operation of the SEC&#146;s public reference facilities by
calling the SEC at 1-800-SEC-0330.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You may also obtain
a copy of any of our filings from us, at no cost, by writing or telephoning us
at:</font></p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="608" valign="top" style="padding:0pt .7pt 0pt 0pt;width:455.9pt;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;">Refco Inc.</p>
  </td>
 </tr>
 <tr>
  <td width="608" valign="top" style="padding:0pt .7pt 0pt 0pt;width:455.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One World
  Financial Center</font></p>
  </td>
 </tr>
 <tr>
  <td width="608" valign="top" style="padding:0pt .7pt 0pt 0pt;width:455.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">200 Liberty
  Street, Tower A</font></p>
  </td>
 </tr>
 <tr>
  <td width="608" valign="top" style="padding:0pt .7pt 0pt 0pt;width:455.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New
  York 10281</font></p>
  </td>
 </tr>
 <tr>
  <td width="608" valign="top" style="padding:0pt .7pt 0pt 0pt;width:455.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: Investor
  Relations</font></p>
  </td>
 </tr>
 <tr>
  <td width="608" valign="top" style="padding:0pt .7pt 0pt 0pt;width:455.9pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(212)&nbsp;693-7000</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 11.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="IncorporationOfCertainDocumentsBy_183101"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We hereby
incorporate by reference into this reoffer prospectus the following documents
filed with the SEC:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
prospectus filed with the SEC on August 11, 2005 pursuant to Rule&nbsp;424(b)&nbsp;under
the Securities Act; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>The
description of our common stock contained in our Registration Statement on Form&nbsp;S-1
under the Securities Act (Reg. No.&nbsp;333-123969), which description is
incorporated by reference into the Form&nbsp;8-A filed with the SEC on August
11, 2005, pursuant to the Exchange Act, and any amendment or report filed for
the purpose of further updating such description.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All documents subsequently
filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d)&nbsp;of the
Exchange Act, prior to the filing of a post-effective amendment to the
registration statement including this reoffer prospectus which indicates that
all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall also be incorporated by reference
herein and to be a part hereof from the date of the filing of such documents.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="ProspectusSummary_130101"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROSPECTUS SUMMARY</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">This summary highlights key
information contained elsewhere in, or incorporated by reference into,&#160; this prospectus. It may not contain all of
the information that is important to you. You should read the entire&#160; prospectus, including &#147;Risk Factors,&#148; our
consolidated financial statements and the related notes thereto incorporated by
reference into this&#160; prospectus and the other
documents incorporated by reference into this&#160;
prospectus or to which this prospectus refers, before making an
investment decision. In this prospectus, the terms &#147;Refco,&#148; &#147;we,&#148; &#147;our&#148; and &#147;us&#148;
refer to Refco Inc. and its subsidiaries. The terms &#147;fiscal year&#148; and &#147;FY&#148;
refer to the 52 or 53 weeks ended on the final day in February, while the terms
&#147;calendar year&#148; and &#147;year&#148; refer to the year ended December&nbsp;31 of the year
referenced.</font></i></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="OurCompany_130112"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Company</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a leading
independent provider of execution and clearing services for exchange-traded
derivatives and a major provider of prime brokerage services in the fixed
income and foreign exchange markets. We offer our customers rapid, low-cost
trade execution and clearing services on a broad spectrum of derivatives exchanges
and over-the-counter markets. We serve over 200,000 customer accounts from our
23 locations in 14 countries with a focus on delivering superior customer
service. Our customers include corporations, government agencies, hedge funds,
managed futures funds, pension funds, financial institutions, retail clients
and professional traders.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="OurBusinesses_130116"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Businesses</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are organized into two
operating business segments for financial reporting purposes: Derivatives
Brokerage&nbsp;&amp; Clearing and Prime Brokerage/Capital Markets.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Derivatives Brokerage&nbsp;&amp; Clearing</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We provide our customers
with access to trading in a wide range of derivatives products, including
interest rate, equity index, energy, agriculture, foreign currency and metals
contracts, across virtually all of the major derivatives exchanges. Customers
use our Derivatives Brokerage&nbsp;&amp; Clearing platform to place buy and
sell orders for exchange-traded derivatives contracts, which we direct to
the appropriate exchange for matching. We also facilitate confirmation and settlement
of our customers&#146; derivatives transactions and ensure that our customers have
the appropriate collateral in their accounts to support their derivatives
positions. We conduct these activities in our capacity as a regulated Futures
Commission Merchant.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prime Brokerage/Capital Markets</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We offer prime brokerage
services, including execution, clearing, securities financing, securities
lending, custody and trade processing. We provide these prime brokerage
services primarily in the U.S. Treasury securities, non-dollar fixed income and
foreign exchange markets. To the extent the products for which we provide
brokerage services do not trade on regulated exchanges, we broker these
transactions as a principal. Our customers include hedge funds and other financial
institutions.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="OurExecutiveOffices_130121"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Executive Offices</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a Delaware corporation. Our principal executive
offices are located at One World Financial Center, 200 Liberty Street, Tower A,
New York, New York 10281, and our telephone number is (212)&nbsp;693-7000.
We also have a website located at <i><font style="font-style:italic;">www.refco.com</font></i>.
The information that appears on our website is not a part of, and is not
incorporated into, this prospectus.</font></p>


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<div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RiskFactors_130406"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RISK FACTORS</font></b></p>

<p style="font-style:italic;margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">An investment in our common stock involves a high
degree of risk. Presented below are all the risks that management deems
material to an investment in our common stock. You should carefully consider
the risks described below, together with the other information contained in
this prospectus, before making an investment decision. As a result of any of
these risks our business, results of operations or financial condition may be
adversely affected, and you may lose all or part of your investment in our
common stock.</font></i></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RisksRelatingToOurCompany_130409"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Risks Relating to Our Company</font></b></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Changes in domestic
and international market factors that reduce trading volumes or interest rates
could significantly harm our business.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We generate
revenues primarily from transaction fees we earn from executing and clearing
customer orders and from interest income we earn on cash balances in our
customers&#146; accounts and from providing secured financing through repurchase
transactions. These revenue sources are substantially dependent on customer
trading volumes and interest rates. We are, in particular, affected by our
customers&#146; trading volumes and their demand for particular derivatives
products, such as foreign exchange, interest rate, equity and fixed income
futures and options. The volume of transactions our customers conduct with us
and interest rates are directly affected by domestic and international market
factors that are beyond our control, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>economic,
political and market conditions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>broad
trends in industry and finance;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in levels of trading activity in the broader marketplace;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>price
levels and price volatility in the derivatives, fixed income, equity, foreign
exchange and commodity markets;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>legislative
and regulatory changes;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
actions of our competitors;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in government monetary policies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>foreign
exchange rates; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>inflation.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any one or more of these
factors, or others, may contribute to reduced trading volumes or changes in
interest rates. Any material decrease in trading volume in the securities markets
in general, or the derivatives, fixed income and foreign exchange markets in
particular, or any decline in prevailing interest rates would have a material
adverse effect on our business, financial condition and operating results. By
way of example, during the second quarter of fiscal year 2005, the seasonal
decrease in exchange-traded derivative volumes in Europe (Eurex) and
Chicago (the Chicago Mercantile Exchange), exacerbated by historically low
levels of volatility in underlying equity and fixed income markets, resulted in
a decrease of 5.0% in our transaction volume and a decrease of 7.3% in
Derivatives Brokerage&nbsp;&amp; Clearing revenues for the quarter ended August&nbsp;31,
2004 as compared with the quarter ended May&nbsp;31, 2004.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We face intense
competition from other companies, and if we are not able to successfully
compete with them, our business may be harmed.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The derivatives,
securities and financial services industries are highly competitive, and we
expect that competition will intensify in the future. We have numerous current
and prospective competitors, both domestically and internationally. Our primary
competitors include both large, diversified financial </font></p>


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<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">institutions,
such as major commercial and investment banks and independent Futures
Commission Merchants, foreign broker-dealers and other specialty broker-dealers.
Many of our competitors and potential competitors have larger customer bases,
more established name recognition and greater financial, marketing,
technological and personnel resources than we do. These resources may enable
them to, among other things:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>develop
services similar to ours or new services that are preferred by our customers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>provide
access to trading in products or a range of products that we do not offer;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>provide
better execution and clearing and lower transaction costs;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>offer
better, faster and more reliable technology;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>take
greater advantage of new or existing acquisitions, alliances and other
opportunities;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>more
effectively market, promote and sell their services; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>better
leverage their relationships with their customers.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, new or
existing competitors could gain access to trading markets in which we currently
enjoy a competitive advantage. For example, if additional competitors gained
access to the interdealer broker market, it could adversely affect our
advantage in providing trading access to the U.S. Treasury securities market.
Other market participants, such as the exchanges, may expand their services and
begin competing with us more directly. Even if new or existing competitors do
not significantly erode our market share, they may offer their services at
lower prices, and we may be required to reduce our fees significantly to remain
competitive, which could have a material adverse effect on our profitability.
If we fail to compete effectively, our business, financial condition and
operating results could be materially harmed.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business could
be adversely affected if we are unable to retain our existing customers or
attract new customers.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The success of our
business depends, in part, on our ability to maintain and increase our customer
base. Customers in our market are sensitive to, among other things, the costs
of using our services, the quality of the services we offer, the speed and
reliability of order execution and the breadth of our service offerings and the
products and markets to which we offer access. We may not be able to continue
to offer the pricing, service, speed and reliability of order execution or the
service, product and market breadth that customers desire. In addition, our
existing customers are not obligated to use our services and can switch
providers of execution and clearing services or decrease their trading activity
conducted through us at any time. As a result, we may fail to retain existing
customers or be unable to attract new customers. Our failure to maintain or
attract customers could have a material adverse effect on our business,
financial condition and operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We rely on
relationships with our introducing brokers for obtaining some of our customers.
The failure to maintain these relationships could adversely affect our
business.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have relationships with
introducing brokers who assist us in establishing new customer relationships
and provide marketing and customer service functions for some of our customers.
These introducing brokers receive compensation for introducing customers to us.
Many of our relationships with introducing brokers are non-exclusive or may be
cancelled on relatively short notice. In addition, our introducing brokers have
no obligation to provide new customer relationships or minimum levels of
transaction volume. Our failure to maintain these relationships with these
introducing brokers or the failure of these introducing brokers to establish
and maintain customer relationships would result in a loss of revenues, which
could adversely affect our business.</font></p>


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<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business
operations could be significantly disrupted if we lost the services of our
President and Chief Executive Officer.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our future success depends
to a significant degree upon the continued contributions of our management
team, particularly our President and Chief Executive Officer, Phillip Bennett. Mr.&nbsp;Bennett
may voluntarily terminate his employment with us at any time. The loss of the
services of Mr.&nbsp;Bennett could adversely affect our ability to manage our
business effectively or execute our business strategy. None of our agreements
governing our debt instruments or other contracts includes a provision
requiring the continued service of any key employee, and we do not maintain key
man life insurance policies on any of our executive officers, including Mr.&nbsp;Bennett.
See &#147;Management&#151;Directors and Executive Officers.&#148;</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may not be able
to attract and retain the highly skilled employees we need to support our
business.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our future success also
depends upon the efforts of our qualified and highly trained sales personnel
and upon our ability to recruit and retain highly skilled and often specialized
personnel, particularly in light of the rapid pace of technological advances.
The level of competition in our industry for individuals with this level of
experience or these skills is intense. If we are not able to attract and retain
highly skilled employees, it could have a material adverse effect on our
business, financial condition and operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may not
effectively manage our growth, which could materially harm our business.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The growth of our business has placed and may continue
to place a significant strain on our management, personnel, systems and
resources. We must continue to improve our operational and financial systems
and managerial controls and procedures, and we will need to continue to expand,
train and manage our technology workforce. We must also maintain close
coordination among our technology, compliance, risk management, accounting,
finance, marketing and sales organizations. We may not manage our growth
effectively. If we fail to do so, our business could be materially harmed.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we continue to grow, we
may be required to increase our investment in facilities, personnel and
financial and management systems and controls. Continued growth may also
require expansion of our procedures for monitoring and assuring our compliance
with applicable regulations and that we recruit, integrate, train and manage a
growing employee base. The expansion of our existing businesses, our expansion
into new businesses and the resulting growth of our employee base increase our
need for internal audit and monitoring processes that are more extensive and
broader in scope than those we have historically required. We may not be
successful in implementing all of the processes that are necessary. Further,
unless our growth results in an increase in our revenues that is proportionate
to the increase in our costs associated with this growth, our operating margins
and profitability will be adversely affected.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our operations
expose us to significant customer and counterparty credit risks.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Customers and
counterparties that owe us money, securities or other assets may default on
their obligations to us due to bankruptcy, lack of liquidity, operational
failure or other reasons. As a clearing broker, we act on behalf of our
customers for all trades consummated both on exchanges and in over-the-counter
markets. Accordingly, we are responsible for our customers&#146; obligations with
respect to these transactions, which exposes us to significant credit risk. A
substantial part of our working capital is at risk if customers default on
their obligations to us and their account balances and security deposits are
insufficient to meet all of their obligations. As of May&nbsp;31, 2005, February&nbsp;28,
2005 and February&nbsp;29, 2004, our reserve against receivables from customers
was $62.1 million, $61.2&nbsp;million and $65.2&nbsp;million, respectively.
Although we regularly review credit exposures to specific customers and
counterparties to address present credit concerns, default risk may arise from
events or circumstances that are difficult to detect or foresee. In addition,
concerns about, or a default by, one institution could lead to significant </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">liquidity
problems, losses or defaults by other institutions, which in turn could
adversely affect us. We may be materially and adversely affected in the event
of a significant default by our customers and counterparties.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to
an SEC investigation, which could adversely affect our business.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;16, 2005 we announced that our subsidiary,
Refco Securities, LLC (&#147;Refco Securities&#148;), had received a &#147;Wells Notice&#148; from
the SEC arising out of an investigation into short sales of the stock of Sedona
Corporation. The Wells Notice stated that the SEC staff intends to recommend
that a civil enforcement action be brought against Refco Securities, alleging
violations of Section&nbsp;17(a)&nbsp;of the Securities Act of 1933, as
amended, Sections&nbsp;10(b)&nbsp;and 17(a)&nbsp;of the Exchange Act of 1934,
as amended, and Rules&nbsp;l0b-5, l7a-3 and 17a-4 thereunder,
Section&nbsp;220.8 of Regulation&nbsp;T, Conduct Rule&nbsp;3370 of the National
Association of Securities Dealers,&nbsp;Inc., aiding and abetting violations of
Section&nbsp;15(a)&nbsp;of the Exchange Act of 1934, as amended, and failure to
comply with a prior SEC cease and desist order and the Section&nbsp;21(a)&nbsp;order
from the SEC. We are in active discussions with the SEC to resolve the matters
raised in the investigation and believe that we are near a resolution on all
material issues. This settlement likely will involve an injunction against
future violations of certain provisions, including anti-fraud provisions, of
the federal securities laws, an order to comply with the prior cease and desist
order and the Section&nbsp;21(a)&nbsp;order, an administrative censure, payment
of a substantial civil penalty and retention of an independent consultant to
review and make recommendations with respect to various business practices and
procedures. We have recorded a reserve of $5.0&nbsp;million for this potential
settlement.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Santo C. Maggio, the President and Chief Executive
Officer of Refco Securities, also has been in negotiations with the SEC staff,
and likewise is near a resolution of certain supervisory matters raised in the
investigation. Mr.&nbsp;Maggio, as part of such resolution, is prepared to
accept the entry of an administrative order suspending him for a year from any
supervisory duties. While complying with the restrictions of such supervisory
suspension, Mr.&nbsp;Maggio would continue to work for us and Refco Securities
in his current capacities.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we are working to finalize the terms of these
settlements in a formal offer of settlement, we believe that the settlements as
described above are highly likely and that the SEC staff would recommend such
settlements to the SEC Commissioners, whose approval is required. However, we
may not reach such settlements with the SEC staff on these terms, or at all or,
even if we do, the SEC Commissioners may not approve such settlements. The
terms of any final settlements approved by the SEC Commissioners, or any
resolution of these matters if we or Mr.&nbsp;Maggio are unable to reach a
settlement with the SEC, may be materially less favorable than the settlements
described above and could have a material adverse effect on our business.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In October&nbsp;2003, we
received a subpoena from the U.S. Attorney&#146;s Office for the Southern District
of New York, which called for the production of documents we had produced to
the SEC. In addition to producing documents in response to the foregoing
subpoenas, we have made our employees available to testify before the SEC and
to be interviewed by the U.S. Attorneys&#146; office. Refco Securities, LLC has been
advised orally that neither it nor Mr.&nbsp;Maggio is currently the subject of
the U.S. Attorneys&#146; investigation.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our compliance and
risk management methods might not be effective, which could increase the risk
that we are subject to regulatory action or litigation or otherwise negatively
impact our business.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our ability to comply with applicable laws, rules&nbsp;and
regulations is largely dependent on our establishment and maintenance of
compliance, audit and reporting systems, as well as our ability to attract and
retain qualified compliance and other risk management personnel. If we fail to
effectively establish and maintain such compliance and reporting systems or
fail to attract and retain personnel who are </font></p>


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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">capable of designing and
operating such systems, it will increase the likelihood that we will become
subject to legal and regulatory infractions, including civil litigation and
investigations by regulatory agencies.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For us to avoid a number
of risks inherent in our business, it is necessary for us to have polices and procedures
that identify, monitor and manage our risk exposure. Management of operational,
legal and regulatory risk requires, among other things, policies and procedures
to record properly and verify a large number of transactions and events. Such
policies may not be fully effective. Some of our risk management policies and
procedures depend upon evaluation of information regarding markets, customers
or other matters that are publicly available or otherwise accessible by us.
That information may not in all cases be accurate, complete, up-to-date or
properly evaluated. Further, our risk management policies and procedures rely
on a combination of technical and human controls and supervision, which are
subject to error and failure. Some of our risk management policies and
procedures are based on internally developed controls and observed historical
market behavior and also involve reliance on industry standard practices. These
policies and procedures may not adequately prevent future losses, particularly
as they relate to extreme market movements, which may be significantly greater
than comparable historical movements. While we have no reason to believe that
our policies and procedures will not continue to be effective, they may not
always be effective in the future, and we may not always be successful in
monitoring or evaluating the risks to which we are or may be exposed. If our
risk management efforts are ineffective, we could suffer losses that could have
a material adverse effect on our financial condition or operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Failure to timely
complete the acquisition of Cargill Investor Services&#146; global brokerage
operations could require us to revise our business plan.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we expect to
complete our acquisition of Cargill Investor Services&#146; global brokerage
operations in the next two months, the acquisition is subject to receipt of
regulatory approvals and other closing conditions, including the receipt of
audited financial statements for the acquired business that are consistent with
the preliminary financial statements for the acquired business provided to us
by the seller. Our failure to complete the acquisition on the expected
schedule, or at all, could require us to revise our business plan and could
otherwise have a material adverse effect on our business and on the trading
price of our common stock.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our acquisition,
joint venture and investment strategies and any other new business initiatives
we undertake involve risks, and if we are unable to manage these risks
effectively, our business will be materially harmed.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the past, we
have expanded our business through acquisitions, and to achieve our strategic
objectives in the future, we may seek to acquire other companies, businesses or
technologies. Acquisitions entail numerous risks, including the following:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>difficulties
in the integration of acquired operations, personnel or technologies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>diversion
of management&#146;s attention from other business concerns;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>assumption
of unknown material liabilities or regulatory non-compliance issues;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>failure
to achieve financial or operating objectives with respect to an acquired
company, business or technology;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>amortization
of acquired intangible assets, which would reduce future reported earnings; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>potential
loss of customers or key employees of acquired companies.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Failure to manage our
acquisitions to avoid these risks could have a material adverse effect on our
business, financial condition and operating results. We have completed 16
acquisitions since 1999. If we continue to undertake acquisitions with a
similar or greater frequency, these risks could be magnified and our personnel
and other resources could become subject to additional strain.</font></p>


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<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We also may seek to expand
or enhance our operations by forming joint ventures, making other investments
or undertaking other business initiatives and entering new lines of businesses.
Entering into joint ventures also entails risks, including difficulties in
developing and expanding the business of newly formed joint ventures,
exercising influence over the activities of joint ventures in which we do not
have a controlling interest and potential conflicts with our joint venture
partners. Other investments and business initiatives may also involve risks,
including but not limited to loss of investment. Any acquisition, joint
venture, investment or other business initiative that we have or may enter into
may not be successful. Unsuccessful joint ventures, investments and other
business initiatives could harm our business, financial condition and operating
results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our international operations involve special
challenges that we may not be able to meet, which could adversely affect our
financial results.</font></i></b></p>

<p style="margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
currently conduct international operations and plan to expand those operations.
There are a number of risks inherent in doing business in international
markets, particularly in the derivatives, fixed income and foreign exchange
markets, which are heavily regulated in many jurisdictions outside the United
States. These risks include:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>less
developed technological infrastructures and generally higher costs, which could
result in lower customer acceptance of our services or customers having
difficulty accessing our products and services;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
inability to manage and coordinate the various regulatory requirements of multiple
jurisdictions that are constantly evolving and subject to unexpected change;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>difficulties
in staffing and managing foreign operations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>fluctuations
in currency exchange rates; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>potentially
adverse tax consequences.</p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our operations in some
less developed countries are also subject to the political, legal and economic
risks associated with politically unstable and less developed regions of the
world, including the risk of war and other international conflicts and actions
by governmental authorities, insurgent groups, terrorists and others.
Specifically, we conduct business in countries whose currencies may be
unstable. Future instability in such currencies or the imposition of
governmental or regulatory restrictions on such currencies could impede our
foreign exchange business and our ability to collect on collateral held in such
currencies.</font></p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although our revenues are
denominated predominantly in U.S. dollars, we generally invest in assets that
match the currency in which we expect the related liabilities to be paid.
Members&#146; equity held in local business units is kept primarily in local
currencies to the extent that members&#146; equity is required to satisfy regulatory
and self-imposed capital requirements. This may adversely affect our reported
combined members&#146; equity when translated into U.S. dollars at the applicable
exchange rate. The volatility of currency exchange rates may materially
adversely affect our operating results.</font></p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, we are
required to comply with the laws and regulations of foreign governmental and
regulatory authorities of each country in which we conduct business. These may
include laws, rules&nbsp;and regulations, including registration requirements
relating to many aspects of the derivatives, fixed income and foreign exchange
markets. Our compliance with these laws and regulations may be difficult and
time consuming and may require significant expenditures and personnel
requirements, and our failure to be in compliance would subject us to legal and
regulatory liabilities. We have customers in numerous countries around the
world in which we are not registered. As a result, we may become subject to the
regulatory requirements of those countries. We may also experience difficulty
in managing our international operations because of, among other things,
competitive conditions overseas, management of foreign exchange risk,
established domestic markets, language and cultural differences and economic or
political </font></p>


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<p style="margin:0pt 0pt 11.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">instability.
Any of these factors could have a material adverse effect on the success of our
international operations or limit our ability to grow our international
operations and, consequently, on our business, financial condition and
operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our operating results are subject to significant
fluctuations due to seasonality. As a result, you should not rely on our
operating results in any particular period as an indication of our future
performance.</font></i></b></p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business experiences
seasonal fluctuations. Financial markets often experience reduced trading
activity during summer months and in the last fiscal quarter as a result of
holidays. Traditional commodity derivatives, such as energy, will reflect
changing supply/demand factors related to heating/cooling seasons. As a result
of these factors, we may experience relatively higher trading volume and thus
revenue during our first and third fiscal quarters and lower trading volume in
our second fiscal quarter.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we experience systems failures or capacity
constraints, our ability to conduct our operations would be materially harmed.</font></i></b></p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are heavily dependent
on the capacity and reliability of the computer and communications systems
supporting our operations, whether owned and operated internally or by third
parties. We receive and process a large portion of our trade orders through electronic
means, such as through public and private communications networks. These
computer and communications systems and networks are subject to performance
degradation or failure from any number of reasons, including loss of power,
acts of war or terrorism, human error, natural disasters, fire, sabotage,
hardware or software malfunctions or defects, computer viruses, intentional
acts of vandalism, customer error or misuse, lack of proper maintenance or
monitoring and similar events. During the terrorist attacks on the World Trade
Center on September&nbsp;11, 2001, we lost access to a significant portion of
our communications and computer networks. Although the disruption of our
operations as a result of this event was not material, future occurrences of
any of the events listed above, or of any other events, could result in the
material degradation or failure of our computer and communications systems and
networks.</font></p>

<p style="margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
such a degradation or failure were to occur, it could cause any number of
results, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>unanticipated
disruptions in service to our customers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>slower
response times;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>delays
in our customers&#146; trade execution;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>failed
settlement of trades; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 5.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>incomplete
or inaccurate accounting, recording or processing of trades.</p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further, any of our redundant
systems or disaster recovery plans may not have been implemented properly, and
these systems and plans or our personnel may not be adequate to correct or
mitigate any of the above events. In addition, any redundant systems, disaster
recovery plans or personnel of our third-party service providers may not
be adequate to correct or mitigate any of the above events or be implemented
properly. The occurrence of degradation or failure of the communications and
computer systems on which we rely may lead to financial losses, litigation or
arbitration claims filed by or on behalf of our customers and regulatory
investigations and sanctions, including by the Securities and Exchange
Commission and the Commodity Futures Trading Commission, which require that our
trade execution and communications systems be able to handle anticipated
present and future peak trading volumes. Any such degradation or failure could
also have a negative effect on our reputation, which in turn could cause us to
lose existing customers to our competitors or make it more difficult for us to
attract new customers in the future. Further, any financial loss that we suffer
as a result of such degradations or failures could be magnified by price
movements of contracts involved in transactions impacted by the degradation or
failure, and we may be unable to take corrective action to mitigate any losses
we suffer.</font></p>


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<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we fail to maintain our computer and communications
systems and networks properly or to upgrade and expand such systems and
networks in response to technological change, our business will be materially
harmed.</font></i></b></p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We need to properly
maintain the computer and communications systems and networks that we currently
own and operate. We internally support and maintain many of our existing systems
and networks, including those that are critical to our derivatives clearing
operations. Our failure to adequately maintain these systems and networks could
have a material effect on the performance and reliability of such systems and
networks, which in turn could materially harm our business.</font></p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further, the markets in
which we compete are characterized by rapidly changing technology, evolving
customer demand and uses of our services and the emergence of new industry
standards and practices that could render our existing technology and systems
obsolete. Our future success will depend in part on our ability to anticipate
and adapt to technological advancements, evolving customer demands and changing
standards in a timely, cost-efficient and competitive manner and to upgrade and
expand our systems accordingly. Any upgrades or expansions may require
significant expenditures of funds and may also increase the probability that we
will suffer system degradations and failures. We may not have sufficient funds
to adequately update and expand our networks, and any upgrade or expansion
attempts may not be successful and accepted by the marketplace and our
customers. Our failure to adequately update and expand our systems and networks
or to adapt our systems and technology to evolving customer demands or emerging
industry standards would have a material adverse effect on our business.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We depend on third-party suppliers for a number
of services, which are important to our business.</font></i></b></p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We depend on a number of
suppliers, such as banking, clearing and settlement organizations, telephone
companies, online service providers, data processors and software and hardware
vendors for elements of our trading, clearing and other systems, as well as
communications and networking equipment, computer hardware and software and
related support and maintenance. These providers may not be able to continue to
provide these services in an efficient, cost-effective manner or be able to
adequately expand their services to meet our needs. In addition, our agreements
with these providers come up for renewal or may be terminated from time to
time. In such an event, we may be required to renegotiate the terms of an
agreement on terms that are not as favorable as under the existing agreement,
or we may be required to find a replacement supplier. An interruption in or the
cessation of service by any service provider and our inability to make
alternative arrangements on favorable terms, in a timely manner or at all,
could have a material adverse effect on our business, financial condition and
operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our networks and those of our third-party
service providers may be vulnerable to security risks, including our
inadvertent dissemination of non-public information, which could result
in the wrongful use of our or our customers&#146; information, interruptions or
malfunctions in our operations or damage to our reputation.</font></i></b></p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The secure transmission of
confidential information over public networks is a critical element of our
operations. Our networks, including our online trading platforms, and those of
our third-party service providers, the exchanges and counterparties with
whom we trade and our customers may be vulnerable to unauthorized access,
computer viruses and other security problems, including our inadvertent
dissemination of non-public information. Persons who circumvent security
measures or gain access to customer information could wrongfully use our or our
customers&#146; information or cause interruptions or malfunctions in our
operations, any of which could have a material adverse effect on our business,
financial condition and operating results. Additionally, our reputation could
be damaged. If an actual, threatened or perceived breach of our or our security
providers&#146; security were to occur, or if we were to inadvertently release
confidential customer information, the market perception of the effectiveness
of our security measures could be harmed and could cause customers to reduce or
stop their use of our services, including our online trading platforms. We or
our service providers may be required to expend significant resources to
protect against the threat of any such security breaches or to alleviate
problems, including reputational </font></p>


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<p style="margin:0pt 0pt 11.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">harm and
litigation, caused by any breaches. Any security measures implemented by us or
our service providers may prove to be inadequate and could result in incidental
system failures and delays that could lower trading volumes and have an adverse
effect on our business, financial condition and operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may be unable to protect our intellectual property
rights or technology effectively, which would allow competitors to duplicate or
replicate our technology and could adversely affect our ability to compete.</font></i></b></p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Intellectual property is
important to our success and ability to compete, and if we fail to protect our
intellectual property rights adequately, our competitors might gain access to
our technology. We rely primarily on a combination of copyright, trademark and
trade secret laws in the United States and other jurisdictions, as well as
license agreements, third-party nondisclosure and other agreements and
other contractual provisions and technical measures to protect our intellectual
property rights. We attempt to negotiate beneficial intellectual property
ownership provisions in our contracts and also require employees, consultants,
advisors and collaborators to enter into confidentiality agreements in an
effort to protect the confidentiality of our proprietary information. However,
laws and our actual contractual terms may not be sufficient to protect our
technology from use or theft by third parties. For instance, a third party
might reverse engineer or otherwise obtain and use our technology without our
permission and without our knowledge, thereby infringing our rights and
allowing competitors to duplicate or replicate our products. Furthermore, these
protections may not be adequate to prevent our competitors from independently
developing technologies that are substantially equivalent or superior to our
technology.</font></p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may have legal or
contractual rights that we could assert against illegal use of our intellectual
property rights, but lawsuits claiming infringement or misappropriation are
complex and expensive, and the outcome would not be certain. In addition, the laws
of some countries in which we now or may in the future operate may not protect
intellectual property rights to the same extent as the laws of the United
States.</font></p>

<p style="margin:0pt 0pt 11.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Defending against
intellectual property infringement and related claims could be expensive and
disruptive to our business. If we are found to infringe the proprietary rights
of others, we could be required to redesign our services, pay royalties or
enter into license agreements with third parties.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 5.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Claims that we misuse the intellectual property of
others could subject us to litigation and significant liability and disrupt our
business.</font></i></b></p>

<p style="margin:0pt 0pt 5.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There is frequent
litigation based on allegations of infringement or other violations of
intellectual property rights related to the development or use of technology,
including suits in our industry. As the number of participants in our market
increases and the number of patents and other intellectual property
registrations increase, the possibility of an intellectual property claim
against us grows. We have been sued on intellectual property grounds in the
past and are currently the subject of a patent infringement lawsuit by Trading
Technologies International,&nbsp;Inc. A third party may assert in the future
that our technology or the manner in which we operate our business violates its
intellectual property rights. From time to time, in the ordinary course of
business, we may become subject to legal proceedings and claims relating to the
intellectual property rights of others, and we expect that third parties may
assert intellectual property claims against us, particularly as we expand the
complexity and scope of our business, the number of electronic trading
platforms increases and the functionality of these platforms further overlap.
For example, third parties may assert infringement claims against us in the
future with respect to our electronic trading platforms or any of our other
current or future services. Any claims, whether with or without merit, could:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>be
expensive and time consuming to defend;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>prevent
us from operating our business, or portions of our business;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>cause
us to cease developing, licensing or using all or any part of our electronic
trading platform that incorporate the challenged intellectual property;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>require
us to redesign our products or services, which may not be feasible;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>result
in significant monetary liability;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>divert
management&#146;s attention and resources; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>require
us to pay royalties or enter into licensing agreements in order to obtain the
right to use necessary technologies, which may not be possible on commercially
reasonable terms.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any of these events could
have a material adverse effect on our business, financial condition and
operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We operate in a
heavily regulated environment that imposes significant costs and compliance
requirements on us. The failure to comply with the regulations to which we are
subject could subject us to sanctions.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are extensively regulated by the Commodity Futures
Trading Commission; the SEC; the National Association of Securities Dealers,
our designated self-regulatory organization with respect to our registration as
a broker-dealer; the Chicago Mercantile Exchange, our designated
self-regulatory organization with respect to our registration as a Futures
Commission Merchant; the National Futures Association; other exchanges of which
we are a member; state regulatory agencies; and other domestic and foreign
clearing organizations. If we fail to comply with applicable laws, rules&nbsp;or
regulations, we may be subject to criminal conviction, increased reporting
requirements, censure, fines, cease-and-desist orders, suspension of our
business, removal of personnel, civil litigation or other sanctions, including
revocation of our operating licenses.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The organizations and
agencies that regulate us have broad powers to investigate and enforce
compliance and punish non-compliance with their rules&nbsp;and regulations.
Neither we nor our managers, officers and employees may be able to fully comply
with these rules&nbsp;and regulations, and we may be subject to claims or
actions by these organizations and agencies, which could adversely affect our
business.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Changes in
legislation or regulations may affect our ability to conduct our business or
reduce our profitability.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The legislative and regulatory environment in which we
operate has undergone significant change in the past and may undergo
significant change again in the future. The federal government, the Commodity
Futures Trading Commission, the SEC, the National Association of Securities
Dealers, the Chicago Mercantile Exchange, the National Futures Association or
other U.S. or foreign governmental authorities continuously review legislative
and regulatory initiatives and may adopt new or revised laws and regulations.
These legislative and regulatory initiatives may affect the way in which we
conduct our business and may make our business less profitable. Changes in the
interpretation or enforcement of existing laws and regulations by those
entities may also adversely affect our business.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, we use the Internet as the distribution
channel to provide services to our customers. A number of regulatory agencies
have recently adopted regulations regarding customer privacy and the use of
customer information by service providers. Additional laws and regulations
relating to the Internet may be adopted in the future, including regulations
regarding the pricing, taxation, content and quality of products and services
delivered over the Internet. Complying with these laws and regulations is
expensive and time consuming and could limit our ability to use the Internet as
a distribution channel, which could adversely affect our business.</font></p>


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<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our auditors
reported to us that, at February&nbsp;28, 2005, there were two significant
deficiencies in our internal controls over financial reporting.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with their
audit of our most recently audited financial statements, our independent
auditors reported to us that we had two significant deficiencies in our
internal controls over financial reporting. Under standards established by the
Public Company Accounting Oversight Board, a &#147;significant deficiency&#148; is
defined as a deficiency that results in more than a remote likelihood that a
misstatement of the financial statements that is more than inconsequential will
not be prevented or detected. One significant deficiency was determined to
exist based on the need to increase our existing finance department resources
to be able to prepare financial statements that are fully compliant with all
SEC&nbsp;reporting guidelines on a timely basis. The second significant
deficiency was determined to exist based on our lack of formalized procedures
for closing our books. Currently we utilize the services of an outside service
provider to assist in our financial reporting process. We are in the process of
enhancing our financial reporting capability by hiring additional internal
audit and finance personnel and developing formalized closing procedures,
including through the implementation of software upgrades throughout our
operations. Although these measures are designed to address the issues raised
by our independent auditors, these and any future measures may not enable us to
remedy these significant deficiencies or avoid other significant deficiencies
in the future. In addition, these and any other significant deficiencies will
need to be addressed as part of the evaluation of our internal controls over
financial reporting pursuant to Section&nbsp;404 of the Sarbanes-Oxley
Act of&nbsp;2002 and may impair our ability to comply with Section&nbsp;404.
See&nbsp;&#147;&#151;We will be exposed to risks relating to the evaluation of our
internal controls over financial reporting as required by Section&nbsp;404 of the
Sarbanes-Oxley Act of&nbsp;2002.&#148;</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will become
subject to additional financial and other reporting and corporate governance
requirements that may be difficult for us to satisfy. Evolving regulation of
corporate governance and public disclosure may result in additional expenses
and continuing uncertainty.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have
historically operated our business as a private company. Following the
effectiveness of our registration statement filed with the SEC regarding our
senior subordinated notes, we became obligated to file with the SEC annual and
quarterly information and other reports that are specified in Sections 13 and
15(d)&nbsp;of the Exchange Act, and we are required to ensure that we have the
ability to prepare financial statements that are fully compliant with all SEC
reporting requirements on a timely basis. Following completion of our initial
public offering, we also became a subject to other new financial and other
reporting and corporate governance requirements, including the requirements of
the New York Stock Exchange and certain provisions of the Sarbanes-Oxley
Act of 2002 and the regulations promulgated thereunder, which impose
significant compliance obligations upon us. In particular, we are required to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>create
or expand the roles and duties of our board of directors, our board committees
and management;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>institute
a more comprehensive compliance function;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>supplement
our internal accounting function, including hiring a chief accounting officer,
additional controllers and other staff with expertise in accounting and
financial reporting for a public company, as well as enhance and formalize
closing procedures at the end of our accounting periods;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>prepare
and distribute periodic public reports in compliance with our obligations under
the federal securities laws;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>involve
and retain to a greater degree outside counsel and accountants in the
activities listed above;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>establish
an internal audit function;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>enhance
our investor relations function; and</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>establish
new internal policies, such as those relating to disclosure controls and
procedures and insider trading.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These obligations require a significant commitment of
additional resources. We may not be successful in implementing these
requirements and implementing them could adversely affect our business or operating
results. In addition, if we fail to implement the requirements with respect to
our internal accounting and audit functions, our ability to report our
operating results on a timely and accurate basis could be impaired.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Changing laws, regulations
and standards relating to corporate governance and public disclosure, including
the Sarbanes-Oxley Act of 2002, new SEC regulations and NYSE rules&nbsp;are
creating uncertainty for public companies. We are presently evaluating and
monitoring developments with respect to new rules&nbsp;and cannot predict or
estimate the amount of the additional costs we may incur or the timing of those
costs. These new or changed laws, regulations and standards are subject to
varying interpretations, in many cases due to their lack of specificity, and as
a result, their application in practice may evolve over time as new guidance is
provided by regulatory and governing bodies. This could result in continuing
uncertainty regarding compliance matters and higher costs necessitated by ongoing
revisions to disclosure and governance practices. If our efforts to comply with
new or changed laws, regulations and standards differ from the activities
intended by regulatory or governing bodies due to ambiguities related to
practice, regulatory authorities may initiate legal proceedings against us,
which could adversely affect our business.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a &#147;controlled
company&#148; within the meaning of the NYSE rules&nbsp;and, as a result, qualify
for, and intend to rely on, exemptions from certain corporate governance
requirements.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas H. Lee Partners,
L.P. and Phillip Bennett, our President and Chief Executive Officer, control a
majority of our outstanding common stock. As a result, we are a &#147;controlled
company&#148; within the meaning of the NYSE corporate governance standards. Under
the NYSE rules, a company of which more than 50% of the voting power is held by
an individual, a group, or another company is a &#147;controlled company&#148; and may
elect not to comply with certain NYSE corporate governance requirements, as
applicable, including (1)&nbsp;the requirement that a majority of our board of
directors consist of independent directors, (2)&nbsp;the requirement that we
have a nominating/corporate governance committee that is composed entirely of
independent directors with a written charter addressing the committee&#146;s purpose
and responsibilities and (3)&nbsp;the requirement that we have a compensation
committee that is composed entirely of independent directors with a written
charter addressing the committee&#146;s purpose and responsibilities. We avail
ourselves of these exemptions. As a result, we do not have a majority of
independent directors and our nominating and corporate governance committee and
our compensation committee do not consist entirely of independent directors.
Accordingly, you will not have the same protections afforded to stockholders of
companies that are subject to all of the NYSE corporate governance
requirements.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will be exposed
to risks relating to the evaluation of our internal controls over financial
reporting as required by Section&nbsp;404 of the Sarbanes-Oxley Act of
2002.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are in the process of
evaluating, testing and implementing internal controls over financial reporting
to enable management to report on, and our independent registered accounting
firm to attest to, such internal controls as required by Section&nbsp;404 of
the Sarbanes-Oxley Act of 2002. While we anticipate being compliant with
the requirements of Section&nbsp;404 by our February&nbsp;28, 2007 deadline, we
cannot be certain as to the timing of the completion of our evaluation, testing
and remediation actions or the impact of the same on our operations. As a
public company, we will be required to report, among other things, control
deficiencies that constitute a &#147;material weakness&#148; or changes in internal
controls that will, or are reasonably likely to, materially affect internal
controls over financial reporting. A &#147;material weakness&#148; is a significant
deficiency, or combination of significant deficiencies that results in more
than a remote likelihood that a material misstatement of the annual or interim
financial statements will not be prevented </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or
detected. If we are not able to implement the requirements of Section&nbsp;404
in a timely manner or with adequate compliance, we may be subject to
investigation and sanctions by regulatory authorities, such as the SEC and the
NYSE. As a result, there could be a negative reaction in the financial markets
due to a loss of confidence in the reliability of our financial statements. In
addition, we may be required to incur costs in improving our internal controls
and hiring additional personnel. Any such actions could negatively affect our
results of operations.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to
significant litigation risk, which could adversely affect our business.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Many aspects of our
business involve substantial liability risks, and we could be exposed to
substantial liability under federal and state laws and court decisions, as well
as regulatory action by the SEC, the Commodity Futures Trading Commission and
other regulatory organizations. These risks include, among others, potential
civil litigation triggered by regulatory investigations, potential liability
from disputes over terms of a trade, the claim that a system failure or delay
caused monetary losses to a customer, that we entered into an unauthorized
transaction or that we provided materially false or misleading statements in
connection with a transaction. The volume of claims and the amount of damages
claimed in litigation and regulatory proceedings against financial
intermediaries have been increasing. Dissatisfied customers frequently make
claims against their service providers regarding quality of trade execution,
improperly settled trades, mismanagement or even fraud. These risks also
include potential liability from disputes over the exercise of our rights with
respect to customer accounts and collateral. Although our customer agreements
generally provide that we may exercise such rights with respect to customer
accounts and collateral as we deem reasonably necessary for our protection, our
exercise of these rights has at times led to claims by customers that we have
exercised these rights improperly. For example, we are currently the subject of
a lawsuit brought by a customer who has alleged that we improperly liquidated
its position in connection with a margin call. See &#147;Business&#151;Legal
Proceedings&#151;Tradewinds.&#148; Even if we prevail in this or other cases or claims,
we could incur significant legal expenses defending the cases or claims, even
those without merit. An adverse resolution of any future cases or claims
against us could have a material adverse effect on our reputation, financial
condition or operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We could be harmed
by employee or introducing broker misconduct or errors that are difficult to
detect and deter.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There have been a number
of highly publicized cases involving fraud or other misconduct by employees of
financial services firms in recent years. Misconduct by our employees or
introducing brokers could include hiding unauthorized activities from us,
improper or unauthorized activities on behalf of customers, improper use of
confidential information or use of improper marketing materials. For example,
during the mid-1990s, one of our brokers engaged in conduct that was
violative of regulations of the Commodity Futures Trading Commission and the
Chicago Board of Trade. This conduct resulted in awards and settlements of
private arbitrations in 2001 of approximately $42&nbsp;million and the payment
by us of an aggregate $7.0&nbsp;million in fines to the Commodity Futures
Trading Commission and the Chicago Board of Trade in 1999. Employee or
introducing broker misconduct could subject us to financial losses or
regulatory sanctions and seriously harm our reputation. It is not always
possible to deter employee or introducing broker misconduct, and the
precautions we take to prevent and detect this activity may not be effective in
all cases. Our employees or introducing brokers also may commit errors that
could subject us to financial claims for negligence or otherwise, as well as
regulatory actions. We have been subject to claims by our customers relating to
errors committed by our employees. Employee, broker or introducing broker
misconduct or errors could subject us to financial losses or regulatory
sanctions and seriously harm our reputation and could adversely affect our
business, financial condition and operating results.</font></p>


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<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business may be
adversely affected if our reputation is harmed.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our ability to attract and
retain customers and employees may be adversely affected to the extent our
reputation is damaged. If we fail, or appear to fail, to deal with various
issues that may give rise to reputational risk, our reputation may be harmed,
which could harm our business prospects. These issues include, but are not
limited to, appropriately dealing with potential conflicts of interest, legal
and regulatory requirements, ethical issues, money-laundering, privacy,
record-keeping, sales and trading practices, and the proper
identification of the legal, reputational, credit, liquidity and market risks
inherent in our business. Failure to appropriately address these issues could
also give rise to additional legal risk to us, which could, in turn, increase
the size and number of claims and damages asserted against us or subject us to
regulatory enforcement actions, fines and penalties.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Procedures and
requirements of the PATRIOT Act may expose us to significant costs or
penalties.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As participants in the
financial services industry, our subsidiaries are subject to laws and
regulations, including the PATRIOT Act of 2001, which require that they know
certain information about their customers and monitor transactions for
suspicious financial activities. The cost of complying with the PATRIOT Act and
related laws and regulations is significant. As an online broker with customers
worldwide, we may face particular difficulties in identifying our international
customers, gathering the required information about them and monitoring their
activities. We face risks that our policies, procedures, technology and
personnel directed toward complying with the PATRIOT Act are insufficient and
that we could be subject to significant criminal and civil penalties due to
noncompliance. Such penalties could have a material adverse effect on our
business, financial condition and operating results.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we do not
maintain the capital levels required by regulations, we may be fined or barred
from conducting business.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The SEC, National
Association of Securities Dealers, Commodity Futures Trading Commission and
various other regulatory agencies have stringent rules&nbsp;with respect to the
maintenance of specific levels of net capital by securities broker-dealers
and Futures Commission Merchants. Our failure to maintain the required net
capital could result in suspension or revocation of our registration by the SEC
or the Commodity Futures Trading Commission and our suspension or expulsion by
the National Association of Securities Dealers or other U.S. and international
regulatory bodies and could ultimately lead to our liquidation or the
liquidation of one of our subsidiaries. If net capital rules&nbsp;are changed
or expanded, or if we incur an unusually large charge against net capital, our
operations that require an intensive use of capital could be limited. Such
operations may include dealing activities, marketing and the financing of
customer account balances. See &#147;Business&#151;Regulation&#148; for more information on
the minimum net capital requirements for our domestic broker-dealer and
Futures Commission Merchant subsidiaries.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We require a significant
amount of liquidity.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ready access to cash is
essential to our business. Our liquidity could be impaired by an inability to
access lines of credit, an inability to access funds from our subsidiaries or
an inability to liquidate customer positions or otherwise sell assets. This
situation may arise due to circumstances that we may be unable to control, such
as a general market disruption or an operational problem that affects third
parties or us. Further, our ability to liquidate customer positions or
otherwise sell assets may be impaired if other market participants are seeking
to sell similar assets at the same time. Our credit ratings are important to
our liquidity. A reduction in our credit ratings could adversely affect our
liquidity and competitive position, increase our borrowing costs, limit our
access to the capital markets or trigger our obligations under certain
bilateral provisions in some of our trading and collateralized financing
contracts. Under such contracts, counterparties could terminate contracts with
us or require us to post additional collateral. Termination of our trading and
collateralized financing contracts could cause us to sustain losses and </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">impair
our liquidity by requiring us to find other sources of financing or to make significant
cash payments or securities movements. The occurrence of any of the foregoing
events could have a material adverse effect on our financial condition or
results of operations.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have recorded a
significant amount of intangible assets, which may never generate the returns
we expect.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our acquisitions and the THL Transactions have
resulted in significant amounts of goodwill and identifiable intangible assets.
Goodwill relates to the excess of cost over the fair value of the net assets of
the businesses acquired by us. As of May&nbsp;31, 2005, we had approximately
$744.1&nbsp;million of goodwill and approximately $595.9&nbsp;million of
identifiable intangible assets.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Goodwill and identifiable
intangible assets are recorded at fair value on the date of acquisition, and
under Financial Accounting Standards Board Statement No.&nbsp;142, <i><font style="font-style:italic;">Goodwill and Other Intangible Assets,</font></i>
goodwill and indefinite lived intangibles are reviewed at least annually for
impairment. Finite lived intangibles are reviewed for impairment whenever events
or changes in circumstances indicate carrying amounts may not be recoverable.
Impairment may result from, among other things, deterioration in the
performance of the acquired business, adverse market conditions, adverse
changes in applicable laws or regulations, including changes that restrict the
activities of the acquired business, and a variety of other circumstances. The
amount of any impairment must be written off. We may never realize the full
value of our intangible assets. Any future determination requiring the
write-off of a significant portion of intangible assets would have an adverse
effect on our financial condition and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RisksRelatedToOurSubstantialIndeb_130642"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Risks Related to Our Substantial Indebtedness</font></b></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our substantial
indebtedness could adversely affect our financial health, harm our ability to
react to changes to our business and prevent us from fulfilling our obligations
under our indebtedness.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have a significant amount of indebtedness. As of May&nbsp;31,
2005, after giving effect to the completion of our initial public offering and
application of the net proceeds therefrom, we would have had total debt of
approximately $1,034.0&nbsp;million outstanding. Based on that level of
indebtedness and interest rates applicable at May&nbsp;31, 2005, our annual
interest expense would have been $67.9&nbsp;million. As a financial
institution, our cash flows are complex and interrelated and highly dependent
upon our operating performance, levels of customer activity and secured
financing activities. Our cash flows used in operating activities were
$96.4&nbsp;million and $265.2&nbsp;million for the three months ended May&nbsp;31,
2005 and May&nbsp;31, 2004, respectively. Our cash flows from operations were
$528.9&nbsp;million and $391.2&nbsp;million for the period from March&nbsp;1,
2004 through August&nbsp;5, 2004 and the period from August&nbsp;6, 2004
through February&nbsp;28, 2005, respectively, as compared to
$727.9&nbsp;million for the year ended February&nbsp;29, 2004, as earnings and
operating assets and liabilities exceeded cash and cash equivalents utilized in
investing and financing activities. Although we believe that our current cash
flows are sufficient to cover our annual interest expense for the foreseeable
future, any increase in the amount of our debt or any decline in the amount of
cash available to make interest payments could require us to divert funds
identified for other purposes for debt service and impair our liquidity
position.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our substantial
level of indebtedness increases the possibility that we may be unable to
generate cash sufficient to pay, when due, the principal of, interest on or
other amounts due in respect of our indebtedness. Our substantial debt could
also have other significant consequences. For example, it could:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>increase
our vulnerability to general economic downturns and adverse competitive and
industry conditions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>require
us to dedicate a substantial portion, if not all, of our cash flow from
operations to payments on our indebtedness, thereby reducing the availability
of our cash flow to pay dividends or fund working capital, capital expenditures
and other general corporate expenditures;</p>


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<div>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>limit
our flexibility in planning for, or reacting to, changes in our business and
the industry in which we operate;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>place
us at a competitive disadvantage compared to competitors that have less debt;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>limit
our ability to raise additional financing on satisfactory terms or at all; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>adversely
impact our ability to comply with the financial and other restrictive covenants
in the agreements governing our debt instruments, which could result in an
event of default under such agreements.</p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Increases in interest
rates could increase interest payable under our variable rate indebtedness.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to interest
rate risk in connection with our variable rate indebtedness. Interest rate
changes could increase the amount of our interest payments and thus negatively
impact our future earnings and cash flows. We currently estimate that our
annual interest expense on our floating rate indebtedness would increase by
$6.4&nbsp;million for each increase in interest rates of 1%. If we do not have
sufficient earnings, we may be required to refinance all or part of our
existing debt, sell assets, borrow more money or sell more securities, none of
which we can guarantee we will be able to do.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Despite current
indebtedness levels, we and our subsidiaries may still be able to incur
substantially more debt. This could further exacerbate the risks associated
with our substantial leverage.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We and our subsidiaries
may be able to incur substantial additional indebtedness in the future.
Although the agreements governing our debt instruments contain restrictions on
the incurrence of additional indebtedness, these restrictions are subject to a
number of qualifications and exceptions, and the indebtedness incurred in
compliance with these restrictions could be substantial. For example, we have
up to $75.0&nbsp;million of borrowings available under our revolving credit
facility and have the ability to increase the aggregate amount of our term loan
under our senior credit facilities by up to $200.0&nbsp;million without the
consent of any person other than the institutions agreeing to provide all or
any portion of such increase. If we incur additional debt above the levels
currently in effect, the risks associated with our substantial leverage would
increase.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">To service our
indebtedness, we will require a significant amount of cash. Our ability to
generate cash depends on many factors beyond our control.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our ability to make payments on and to refinance our
indebtedness and to fund our operations will depend on our ability to generate
cash in the future, which, to a certain extent, is subject to general economic,
financial, competitive, legislative, regulatory and other factors that are
beyond our control. Specific events that might adversely affect our cash flow
include: a default by a customer in the payment of a large margin call; losses
incurred by the clearing houses of which we are a member, which could result in
a capital call against us; a loss by us of any of the registrations or licenses
required for us to conduct business; or a permanent decline in the level of
customer business activity.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business may not
generate sufficient cash flow from operations, and we may be unable to make
future borrowings under our senior credit facilities or otherwise in amounts
sufficient to enable us to service our indebtedness or to fund our other
liquidity needs. If we cannot service our debt, we will have to take actions
such as reducing or delaying capital investments, selling assets, restructuring
or refinancing our debt or seeking additional equity capital. We may not be
able to effect any of these alternatives on commercially reasonable terms, or
at all. In addition, the agreements governing our debt instruments may restrict
us from adopting any of these alternatives. The implementation of these
alternatives may adversely impact our business, financial condition and
operating results.</font></p>


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<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a holding
company with no business operations of our own and depend on our subsidiaries
for cash.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a holding company
with no significant business operations of our own. Our business operations are
conducted through our subsidiaries. Dividends from, and cash generated by, our
subsidiaries will be our principal sources of cash to repay indebtedness, fund
operations and pay dividends. Accordingly, our ability to repay our
indebtedness, fund operations and pay dividends to our stockholders is
dependent on the earnings and the distributions of funds from our subsidiaries.
The agreements governing our debt instruments significantly restrict our
subsidiaries from paying dividends and otherwise transferring cash or other
assets to us. In addition, some of our subsidiaries are subject to minimum
regulatory capital requirements, which may limit their ability to pay dividends
or distributions or make loans to us. Furthermore, our subsidiaries are
permitted under the agreements governing our debt instruments to incur
additional indebtedness that may severely restrict or prohibit the making of
distributions, the payment of dividends or the making of loans by our
subsidiaries to us.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restrictive
covenants in the agreements governing our debt instruments may restrict our
ability to pursue our business strategies.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The agreements
governing our debt instruments contain a number of restrictive covenants that
impose significant operating and financial restrictions on us and may limit our
ability to pursue our business strategies or engage in acts that may be in our
best interests. Our senior credit facilities include covenants restricting,
among other things, our ability to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>incur
or guarantee additional debt;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>incur
liens;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>make
loans and investments;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>make
capital expenditures;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>declare
or pay dividends or redeem or repurchase capital stock;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>engage
in mergers, acquisitions and other business combinations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>prepay,
redeem or purchase subordinated debt;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>amend
or otherwise alter terms of subordinated debt;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>sell
assets and engage in sale leaseback transactions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>transact
with affiliates; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>alter
the business that we conduct.</p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The indenture
relating to our senior subordinated notes also contains numerous covenants
including, among other things, restrictions on our ability to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>incur
or guarantee additional indebtedness;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>sell
assets;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>declare
or pay dividends or make other equity distributions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>purchase
or redeem capital stock;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>make
investments;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>consolidate
or merge with or into other companies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>engage
in transactions with affiliates; and</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>alter
the business that we conduct.</p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our senior credit
facilities also include financial covenants, including requirements that we maintain:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>a
minimum interest coverage ratio; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>a
maximum leverage ratio.</p>

<p style="margin:0pt 0pt 6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These financial covenants will become more restrictive
over time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A breach of any covenant
or the inability to comply with any required financial ratio contained in
either of the agreements governing our debt instruments could result in a
default under that agreement. If any such default occurs, the lenders under our
senior credit facilities or the holders of our senior subordinated notes, as
the case may be, may elect to declare all outstanding borrowings, together with
accrued and unpaid interest and other amounts payable thereunder, to be
immediately due and payable. In addition, a default under the indenture
governing our senior subordinated notes would cause a default under our senior
credit facilities, and the acceleration of debt under our senior credit
facilities or the failure to pay that debt when due would cause a default under
the indenture governing our senior subordinated notes. The lenders under our
senior credit facilities also have the right upon an event of default
thereunder to terminate any commitments they have to provide further
borrowings. Further, following an event of default under our senior credit
facilities, the lenders under these facilities will have the right to proceed
against the collateral granted to them to secure that debt, which includes the
available cash of our subsidiaries that guarantee our senior credit facilities,
and they will also have the right to prevent us from making debt service payments
on our senior subordinated notes. If the debt under our senior credit
facilities or our senior subordinated notes were to be accelerated, our assets
may not be sufficient to repay in full that debt or any other debt that may
become due as a result of that acceleration, which could have a material
adverse effect on the value of our common stock.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RisksRelatingToOurCommonStock_130645"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Risks Relating to Our Common Stock</font></b></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our quarterly
revenues and operating results can fluctuate substantially and be difficult to
forecast, and we may not be able to maintain historic growth rates.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our quarterly
revenues and operating results are difficult to forecast. We may experience
substantial fluctuations in revenues and operating results from quarter to
quarter. The reasons for these fluctuations may include, but are not limited
to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>domestic
and international market factors that impact trading volumes or market
liquidity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>competition;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>seasonal
fluctuations in our business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>costs
of compliance with regulatory requirements;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
relationships with our significant customers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
relationships with introducing brokers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in personnel and management;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>credit
risk;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>costs
associated with protecting our intellectual property and proprietary rights;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
timing of acquisitions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in prevailing interest rates;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>systems
failures, capacity constraints or network problems;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>general
changes to the U.S. and global economies; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>political
conditions or events.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Period-to-period comparisons of our operating results
are not necessarily meaningful and should not be relied upon as indications of
future performance.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our business, revenue and
net income have grown significantly over the last several years. From fiscal
year 2000 through fiscal year 2005 our net revenue increased from
$461.0&nbsp;million to $1,331.9&nbsp;million and our net income grew from
$45.0&nbsp;million to $176.3&nbsp;million. We may not be able to maintain these
historic growth rates in future periods. In addition, our revenues may not
increase or be sustained in future periods, and we may not be profitable in any
future period. Any shortfalls in revenues or net income, or decline in growth
rates of revenues and net income, in any given period from levels expected by
securities or industry analysts could have an immediate and significant adverse
effect on the trading price of our common stock.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We expect that our
stock price will fluctuate significantly, and you may not be able to resell
your shares at or above the initial public offering price.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The trading price
of our common stock is likely to be volatile and subject to wide price
fluctuations in response to various factors, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>market
conditions in the broader stock market in general, or in the financial services
industry in particular;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>actual
or anticipated fluctuations in our quarterly financial and operating results;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>developments
or disputes concerning our intellectual property or proprietary rights;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>introduction
of new services by us or our competitors;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>issuance
of new or changed securities analysts&#146; reports or recommendations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>additions
or departures of key personnel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>regulatory
developments;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>litigation
and governmental investigations; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>economic
and political conditions or events.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These and other factors
may cause the market price and demand for our common stock to fluctuate
substantially, which may limit or prevent investors from readily selling their
shares of common stock and may otherwise negatively affect the liquidity of our
common stock. In addition, in the past, when the market price of a stock has
been volatile, holders of that stock have instituted securities class action
litigation against the company that issued the stock. If any of our
stockholders brought a lawsuit against us, we could incur substantial costs
defending the lawsuit. Such a lawsuit could also divert the time and attention
of our management from our business.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the ownership of
our common stock continues to be highly concentrated, it may prevent you and
other stockholders from influencing significant corporate decisions and may
result in conflicts of interest that could cause our stock price to decline.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are controlled by
affiliates of Thomas H. Lee Partners, L.P. and Phillip Bennett, our President
and Chief Executive Officer. Thomas H. Lee Partners, L.P. and its affiliates
and co-investors and Phillip Bennett beneficially own or control
approximately 42.7% and 33.8%, respectively, of our common stock as </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of
August 11, 2005. Accordingly, Thomas H. Lee Partners, L.P. and its affiliates
and co-investors and Phillip Bennett, acting as a group, will be able to
control matters that require stockholder approval, including the election of
directors, any merger, consolidation or sale of all or substantially all of our
assets or other significant corporate transactions. Our controlling
stockholders may have interests that differ from your interests and may vote in
a way with which you may disagree and which may be adverse to your interests.
Corporate action may be taken even if other stockholders, including those who
purchase shares in this offering, oppose them. These stockholders may also
delay or prevent a change of control of us, even if that a change of control
would benefit our other stockholders, which could deprive our stockholders of
the opportunity to receive a premium for their common stock. The significant
concentration of stock ownership may adversely affect the trading price of our
common stock due to investors&#146; perception that conflicts of interest may exist
or arise.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">If securities or
industry analysts do not publish research or reports about our business, if
they change their recommendations regarding our stock adversely or if our
operating results do not meet their expectations, our stock price and trading
volume could decline.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The trading market for our
common stock will be influenced by the research and reports that industry or
securities analysts publish about us or our business. If one or more of these
analysts cease coverage of our company or fail to publish reports on us
regularly, we could lose visibility in the financial markets, which in turn
could cause our stock price or trading volume to decline. Moreover, if one or
more of the analysts who cover us downgrade our stock or if our operating
results do not meet their expectations, our stock price could decline.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Future sales of
common stock may cause our stock price to fall.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After giving effect to our
initial public offering, we have 127,500,000 shares of common stock
outstanding, assuming no exercise of the underwriters&#146; over-allotment
option in the initial public offering. Of these shares of common stock, the 26,500,000
shares of common stock sold in the initial public offering, plus any shares
issued upon exercise of the underwriters&#146; over-allotment option, are freely
tradeable without restriction under the Securities Act, except for any such
shares that may be held or acquired by an &#147;affiliate&#148; of ours, as that term is
defined in Rule&nbsp;144 promulgated under the Securities Act, which shares
will be subject to the volume limitations and other restrictions of Rule&nbsp;144.
The remaining shares of common stock held by our existing stockholders upon
completion of our initial public offering, other than those subject to the
underwriters&#146; over-allotment option to the extent it is exercised, will
be &#147;restricted securities,&#148; as that phrase is defined in Rule&nbsp;144, and may
not be resold, in the absence of registration under the Securities Act, except
pursuant to an exemption from such registration. In addition, following the
offering, stockholders that collectively own 101,000,000&nbsp;shares of our
common stock will have registration rights with respect to their shares. After
the lock-up agreements delivered to the underwriters by our executive officers,
directors and substantially all of our stockholders expire or are terminated,
all of our additional shares may be sold in the public market, subject to legal
restrictions on transfer. At various times beginning approximately
180&nbsp;days after the date of the prospectus for our initial public offering
approximately 101,000,000&nbsp;million shares will become available for sale
pursuant to various exemptions from registration. Additionally, the
underwriters may release all or a portion of these shares subject to lock-up
agreements at any time prior to this 180th day. Furthermore, we may sell
additional shares of common stock in subsequent public offerings. The market
price of our common stock could decline as a result of any such sales or the
perception that these sales could occur. These sales might also make it more
difficult for us to sell equity securities at a time and price that we deem
appropriate.</font></p>


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<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provisions of our
charter documents could delay or prevent an acquisition of our company, even if
the acquisition would be beneficial to our stockholders, and could make it more
difficult for you to change management.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our certificate of
incorporation and by-laws contain provisions that could depress the
trading price of our common stock by acting to discourage, delay or prevent a
change of control of our company or changes in management that our stockholders
might deem advantageous. Specific provisions in our certificate of
incorporation includes:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to issue preferred stock with terms that the board of directors may
determine, without stockholder approval;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>advance
notice requirements for stockholder proposals and nominations; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>limitations
on convening stockholder meetings.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a result of the
provisions in our certificate of incorporation, the price investors may be
willing to pay in the future for shares of our common stock may be limited. In
addition, although we havel initially elected not to be subject to the
provisions of Section&nbsp;203 of the Delaware General Corporation Law, which
is intended to prohibit or delay mergers or other takeover or change in control
events, we could elect to be subject to Section&nbsp;203 in the future.</font></p>

<p style="font-style:italic;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">We do not
anticipate paying any cash dividends in the foreseeable future.</font></i></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We currently intend to retain our future earnings, if
any, for the foreseeable future, to repay indebtedness and to fund the
development and growth of our business. We do not intend to pay any dividends
to holders of our common stock (other than the dividend to be paid to our
stockholders of record prior to our initial public offering with the proceeds
from the issuance of shares following any exercise of the underwriters&#146; over-allotment
option in the initial public offering). In addition, the terms of our existing
debt agreements restrict our ability to pay dividends to our stockholders. As a
result, capital appreciation in the price of our common stock, if any, will be
your only source of gain on an investment in our common stock.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="ForwardlookingStatements_131315"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">FORWARD-LOOKING STATEMENTS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus contains forward-looking
statements that are subject to risks and uncertainties. All statements other
than statements of historical fact included in this prospectus are forward-looking
statements. Forward-looking statements give our current expectations and
projections relating to our financial condition, results of operations, plans,
objectives, future performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to historical or
current facts. These statements may include words such as &#147;anticipate,&#148; &#147;estimate,&#148;
&#147;expect,&#148; &#147;project,&#148; &#147;plan,&#148; &#147;intend,&#148; &#147;believe&#148; and other words and terms of
similar meaning in connection with any discussion of the timing or nature of
future operating or financial performance or other events.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These forward-looking
statements are based on assumptions that we have made in light of our industry
experience and on our perceptions of historical trends, current conditions,
expected future developments and other factors we believe are appropriate under
the circumstances. As you read and consider this prospectus, you should
understand that these statements are not guarantees of performance or results.
They involve risks, uncertainties (some of which are beyond our control) and
assumptions. Although we believe that these forward-looking statements
are based on reasonable assumptions, you should be aware that many factors
could affect our actual financial results and cause them to differ materially
from those anticipated in the forward-looking statements. These factors
include, among others:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in domestic and international market conditions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>competition;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to attract and retain customers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
relationships with introducing brokers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>retention
of our management team;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to manage our growth or integrate future acquisitions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
exposure to significant credit risks with respect to our customers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>international
operations and expansion;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>system
failures;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
performance of third-party suppliers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in regulations or exchange membership requirements;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
effectiveness of compliance and risk management methods;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>potential
litigation or investigations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>employee
or introducing broker misconduct or errors;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>reputational
harm;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>changes
in capital requirements; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
other factors described under &#147;Risk Factors.&#148;</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There may be other factors that may cause our actual
results to differ materially from the forward-looking statements.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Because of these factors,
we caution that you should not place undue reliance on any of our forward-looking
statements. Further, any forward-looking statement speaks only as of the
date on which it is made. New risks and uncertainties arise from time to time,
and it is impossible for us to predict those </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">events
or how they may affect us. Except as required by law, we have no duty to, and
do not intend to, update or revise the forward-looking statements in this
prospectus after the date of this prospectus.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="UseOfProceeds_131344"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">USE OF PROCEEDS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will not receive any of
the proceeds from the sale of shares covered by this reoffer prospectus. The
selling stockholders will pay any underwriting discounts, commissions and
expenses for brokerage, or any other expenses they incur in disposing of the
shares. We will bear all other costs, fees and expenses incurred in effecting
the registration of the shares covered by this reoffer prospectus.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="SellingStockholders_131552"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SELLING STOCKHOLDERS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling stockholders currently own 4,015,860 of
the 7,650,000 shares of our common stock registered under the registration
statement of which this prospectus is a part. Offers and sales by the selling
stockholders of these currently owned shares are covered by this prospectus. In
addition, up to 3,634,140 shares of our common stock that we may issue in the
future to participants in the Plan are being registered under the registration
statement of which this prospectus is a part. Offers and sales by selling
stockholders of any such shares issued in the future to participants in the Plan
who are our &#147;affiliates&#148; (as such term is defined in Rule&nbsp;405 under the
Securities Act) are also covered by this prospectus.</font></p>


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<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
selling stockholders are our current and future officers, directors, employees
and consultants who have received or will in the future receive shares of our
common stock under the Plan. The selling stockholders may from time to time
resell all, a portion, or none of the shares of our common stock covered by
this prospectus. The following table sets forth information as of August 11,
2005 with respect to the beneficial ownership of our common stock by each
selling stockholder whose identity is known as of the date of this prospectus
and the number of shares of our common stock held by such selling stockholder
as of the date of this prospectus that are covered by this prospectus. The
address for each executive officer, director and employee listed below is c/o
Refco Inc., One World Financial Center, 200 Liberty Street, Tower A, New York,
New York 10281.</font></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="29" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Name</font></b></p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="184" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:137.8pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="66" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:49.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of<br>
  Shares<br>
  &nbsp;Owned&nbsp;Prior&nbsp;<br>
  to&nbsp;Sales<br>
  Under&nbsp;this<br>
  Prospectus</font></b></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="100" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:74.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of&nbsp;Shares<br>
  Owned&nbsp;as&nbsp;of&nbsp;the&nbsp;Date<br>
  of&nbsp;this&nbsp;Prospectus<br>
  that&nbsp;May&nbsp;be&nbsp;Offered<br>
  Under&nbsp;this<br>
  Prospectus</font></b></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="53" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.65pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of<br>
  Shares<br>
  Covered&nbsp;by<br>
  This<br>
  Prospectus</font></b></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="108" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:81.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Percentage&nbsp;of&nbsp;Common<br>
  Stock&nbsp;Beneficially<br>
  Owned&nbsp;After&nbsp;All<br>
  Currently&nbsp;Owned<br>
  Shares&nbsp;Covered&nbsp;by&nbsp;this<br>
  Prospectus&nbsp;Are&nbsp;Resold</font></b></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Executive Officers and Directors:</font></b></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Phillip R.
  Bennett(1)<br>
  President, Chief Executive Officer and&nbsp;Chairman</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">43,052,157</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">808,363</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">33.13</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">%</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Gerald M. Sherer<br>
  Executive Vice President and Chief Financial Officer</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">463,509</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">463,509</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">William M. Sexton<br>
  Executive Vice President and Chief Operating Officer</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">596,036</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">471,545</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Joseph J. Murphy<br>
  Executive Vice President; President and&nbsp;Chief Executive Officer of
  Refco&nbsp;Global Futures, LLC</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">533,791</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">471,545</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="font-size:10.0pt;line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Santo C. Maggio<br>
  Executive Vice President; President and</font>&nbsp;<font size="1" style="font-size:9.0pt;">Chief Executive Officer of Refco Securities, LLC</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">502,668</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">471,545</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Dennis A. Klejna<br>
  Executive Vice President and General&nbsp;Counsel</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">260,670</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">235,772</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Leo R. Breitman<br>
  Director</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,435</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,435</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Nathan Gantcher<br>
  Director</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,435</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,435</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Ronald L. O&#146;Kelley<br>
  Director</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,435</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,435</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Employees:</font></b></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Stephen Grady</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">168,409</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">168,409</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:4.0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Joe Mazurek</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">101,045</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">101,045</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tan Hup Tye</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">107,782</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">107,782</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Mark Slade</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">141,275</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">141,275</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Mike Mallahan</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">134,727</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">134,727</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Peter McCarthy</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">101,045</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">101,045</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Steve Dispenza</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">67,364</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">67,364</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Vera Kraker</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40,418</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40,418</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Mark Sachs</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40,418</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40,418</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tom Mitchell</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40,418</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40,418</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Gavin Prentice</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">76,693</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">76,693</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="220" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:164.8pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt 9.0pt;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Ang Peng Leong</font></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.6pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="56" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">33,682</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.85pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:30.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">33,682</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:22.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.45pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2</font></p>
  </td>
  <td width="20" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.1pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:21.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">*</font></p>
  </td>
  <td width="40" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:29.75pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.0pt;">
  <p style="line-height:10.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;">

</font></div>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" style="font-size:9.0pt;">*</font><font size="1" face="Times New Roman" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">Less than one percent.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">27</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">

<div>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(1)</font><font size="1" face="Times New Roman" style="font-size:9.0pt;">&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">Represents
shares held by Phillip Bennett directly and indirectly through each of Refco
Group Holdings,&nbsp;Inc. and The Phillip R. Bennett Three Year Annuity Trust.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2)</font><font size="1" face="Times New Roman" style="font-size:9.0pt;">&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">In addition to shares owned as of the date of this
prospectus that are covered by this prospectus set forth in the second column
opposite the names of selling stockholders in the table above, up to an
additional 3,634,140 shares of our common stock that we may issue in the future
to participants in the Plan who are our &#147;affiliates&#148; (as such term is defined
in Rule&nbsp;405 under the Securities Act ) are covered by this prospectus. The
number of additional shares to be issued under the Plan in the future, the
identity of the recipients of such additional shares and the determination of
whether any such recipient is an affiliate of ours are subject a number of
factors that are not yet determinable.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="PlanOfDistribution_180512"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PLAN OF DISTRIBUTION</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of common stock covered by this prospectus
are being registered by us for the account of the selling stockholders.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of common stock offered by this prospectus
may be sold from time to time directly by or on behalf of the selling
stockholders in one or more transactions on the NYSE or on any stock exchange
on which the common stock may be listed at the time of sale, in privately
negotiated transactions, or through a combination of these methods. The selling
stockholders may sell shares through one or more agents, brokers or dealers or
directly to purchasers. These brokers or dealers may receive compensation in
the form of commissions, discounts or concessions from the selling stockholders
and/or purchasers of the shares, or both. Compensation as to a particular
broker or dealer may be in excess of customary commissions. The selling
stockholders will act independently of us in making decisions with respect to
the timing, manner and size of each sale or non-sale related transfer. If a
selling stockholder is an employee, officer or director of the Company, he or
she will be subject to the Company&#146;s policies concerning trading and other
transactions in the Company&#146;s securities.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The number of shares to be offered or resold under
this prospectus by each selling stockholder or other person with whom he or she
is acting in concert for the purpose of selling our shares, may not exceed,
during any three month period, the amount specified in Rule&nbsp;144(e)&nbsp;under
the Securities Act.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of
common stock may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at prices related to the
prevailing market prices, at varying prices determined at the time of sale or
at negotiated prices. These sales may be effected in one or more transactions,
which may involve crosses or block transactions, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>on
the NYSE;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>in
the over-the-counter market;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>in
transactions otherwise than on the NYSE or in the over-the-counter market;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>through
the writing of options (including the issuance by the selling stockholders of
derivative securities), whether the options or these other derivative
securities are listed on an options or other exchange or otherwise;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>through
the settlement of short sales; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>any
combination of the foregoing.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with the sale of shares, the selling
stockholders may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the shares
in the course of hedging the positions they assume. The selling stockholders
may also sell the shares short and deliver these shares to close out short positions,
or loan or pledge the shares to broker-dealers or other financial institutions
that in turn may sell these shares. The selling stockholders may also enter
into option or other transactions with broker-dealers or other financial
institutions that require the delivery to the </font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">28</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='28',FILE='C:\FC1\223134634700_OTANTWS149_538118\14370-3-do.htm',USER='msarangapani',CD='Aug 11 13:46 2005' -->
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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">broker-dealer or other
financial institution of the shares, which the broker-dealer or other financial
institution may resell pursuant to this prospectus, or enter into transactions
in which a broker-dealer makes purchases as a principal for resale for its own
account or through other types of transactions.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with their sales, a selling stockholder
and any participating broker or dealer may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act, and any commissions they receive and
the proceeds of any sale of shares may be deemed to be underwriting discounts
or commissions under the Securities Act. A selling stockholder who is deemed to
be an &#147;underwriter&#148; within the meaning of Section&nbsp;2(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities
Act. The selling stockholders and any other person participating in such
distribution will be subject to applicable provisions of the Exchange Act and
the rules&nbsp;and regulations thereunder, including, without limitation,
Regulation&nbsp;M. Regulation M may limit the timing of purchases and sales of
shares of our common stock by the selling stockholders and any other person.
Furthermore, Regulation&nbsp;M may restrict, for a period of up to five
business days prior to the commencement of the distribution, the ability of any
person engaged in a distribution of shares of our common stock to engage in
market-making activities with respect to these shares. All of the foregoing may
affect the marketability of shares of our common stock and the ability of any
person or entity to engage in market-making activities with respect to shares
of our common stock.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the extent required, the shares to be sold, the
names of the persons selling the shares, the respective purchase prices and
public offering prices, the names of any agent, dealer or underwriter and any
applicable commissions or discounts with respect to a particular offer will be
set forth in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement of which this prospectus
is a part.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are bearing all of the fees and expenses relating
to the registration of the shares of common stock. Any underwriting discounts,
commissions or other fees payable to broker-dealers or agents in connection
with any sale of the shares will be borne by the selling stockholders. In order
to comply with certain states&#146; securities laws, if applicable, the shares may
be sold in such jurisdictions only through registered or licensed brokers or
dealers. In certain states, the shares may not be sold unless the shares have
been registered or qualified for sale in such state, or unless an exemption
from registration or qualification is available and is obtained and complied
with. Sales of the shares must also be made by the selling stockholders in
compliance with all other applicable state securities laws and regulations.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to any shares sold hereunder, selling
stockholders may sell shares of common stock in compliance with Rule&nbsp;144.
There is no assurance that the selling stockholders will sell all or a portion
of the stock being offered hereby.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The selling stockholders may agree to indemnify any
broker-dealer or agent that participates in transactions involving sales of the
shares against certain liabilities in connection with the offering of the
shares arising under the Securities Act.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have notified the
selling stockholders of the need to deliver a copy of this prospectus in
connection with any sale of the shares.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="LegalMatters_131422"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">LEGAL MATTERS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Weil, Gotshal&nbsp;&amp;
Manges LLP, New York, New York will pass upon the validity of the common stock
offered hereby. Certain partners of Weil, Gotshal&nbsp;&amp; Manges LLP have
indirect ownership interests, totaling less than 0.01% in us.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">29</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Experts_131425"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXPERTS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The New Refco Group&nbsp;Ltd., LLC (the Successor)
consolidated balance sheet as of February&nbsp;28, 2005 and the related
consolidated statements of income, changes in members&#146; equity and cash flows
for the period from August&nbsp;6, 2004 through February&nbsp;28, 2005 and
Refco Group Ltd., LLC (the Predecessor) consolidated balance sheet as of February&nbsp;29,
2004 and the related consolidated statements of income, changes in members&#146;
equity and cash flows for the period from March&nbsp;1, 2004 through August&nbsp;5,
2004 and for the years ended February&nbsp;29, 2004 and February&nbsp;28, 2003
and schedules incorporated by reference into this registration statement have
been audited by Grant Thornton LLP, independent registered public accountants,
as stated in their reports with respect thereto, and is incorporated by
reference herein in reliance upon the authority of said firm as experts in
accounting and auditing.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">30</font></p>
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<div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Partii_131956"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PART&nbsp;II</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="InformationRequiredInTheRegistrat_131959"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item3_IncorporationOfDocumentsByR_132007"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 3.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Incorporation
of Documents by Reference.</p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company hereby
incorporates by reference into this Registration Statement the following
documents previously filed with the SEC:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s prospectus filed with the SEC on&nbsp;August 11, 2005 pursuant to Rule&nbsp;424(b)&nbsp;under
the Securities Act; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>The
description of the Company&#146;s Common Stock contained in the Company&#146;s
Registration Statement on Form&nbsp;S-1 under the Securities Act (Reg. No.&nbsp;333-123969),
which description is incorporated by reference into the Form&nbsp;8-A
filed with the SEC on August 11, 2005 pursuant to the Exchange Act, and any
amendment or report filed for the purpose of further updating such description.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All documents subsequently
filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d)&nbsp;of
the Exchange Act, prior to the filing of a post-effective amendment which
indicates that all securities offered hereby have been sold or which
deregisters all securities then remaining unsold, shall be deemed to be
incorporated by reference herein and to be a part hereof from the date of the
filing of such documents.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item4_DescriptionOfSecurities__132132"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 4.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Description
of Securities.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not applicable.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item5_InterestsOfNamedExpertsAndC_132141"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 5.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interests
of Named Experts and Counsel.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain partners of Weil,
Gotshal&nbsp;&amp; Manges LLP have indirect ownership interests, totaling less
than 0.01%, in us.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item6_IndemnificationOfDirectorsA_132149"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 6.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indemnification
of Directors and Officers.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;145 of the Delaware General Corporation
Law (&#147;Section&nbsp;145&#148;) permits indemnification of our officers and directors
under certain conditions and subject to certain limitations. Section&nbsp;145
also provides that a corporation has the power to maintain insurance on behalf
of its officers and directors against any liability asserted against such
person and incurred by him or her in such capacity, or arising out of his or
her status as such, whether or not the corporation would have the power to
indemnify him or her against such liability under the provisions of Section&nbsp;145.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article&nbsp;Sixth of the Registrant&#146;s Certificate of
Incorporation provides for mandatory indemnification of its directors and
officers and permissible indemnification of employees and other agents to the
maximum extent not prohibited by the Delaware General Corporation Law. The
rights to indemnity thereunder continue as to a person who has ceased to be a
director, officer, employee or agent and inure to the benefit of the heirs,
executors and administrators of the person. In addition, expenses incurred by a
director or executive officer in defending any civil, criminal, administrative
or investigative action, suit or proceeding by reason of the fact that he or
she is or was a director or officer of the Registrant (or was serving at the
Registrant&#146;s request as a director or officer of another corporation) shall be
paid by the Registrant in advance of the final disposition of such action, suit
or proceeding upon receipt of an undertaking by or on behalf of such director
or officer to repay such amount if it shall ultimately be determined that he or
she is not entitled to be indemnified by the Registrant as authorized by the
relevant section of the Delaware General Corporation Law.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As permitted by Section&nbsp;102(b)(7)&nbsp;of the
Delaware General Corporation Law, the Registrant&#146;s Certificate of Incorporation
provides that, pursuant to Delaware law, its directors shall not be personally
liable for monetary damages for breach of the directors&#146; fiduciary duty as
directors to the Registrant and its stockholders. This provision in the
Certificate of Incorporation does not eliminate the directors&#146; fiduciary duty,
and in appropriate circumstances equitable remedies such as injunctive or other
forms of non-monetary relief will remain available under Delaware law. In
addition, pursuant to Section&nbsp;102(b)(7)&nbsp;of the Delaware General
Corporation Law each director will continue to be subject to liability for
breach of the director&#146;s duty of loyalty to the Registrant for acts or omission
not in good faith or involving international misconduct, for knowing violations
of law, for actions leading to improper personal benefit to the director, and
for payment of dividends or approval of Stock repurchases or redemptions that
are unlawful under Section&nbsp;174 of the Delaware General Corporation Law.
The provision also does not affect a director&#146;s responsibilities under any
other law, such as the federal securities laws or state or federal
environmental laws.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Registrant has entered into indemnification
agreements with each of its directors and executive officers. Generally, the
indemnification agreements attempt to provide the maximum protection permitted
by Delaware law as it may be amended from time to time. Moreover, the
indemnification agreements provide for certain additional indemnification.
Under such additional indemnification provisions, however, an individual will
not receive indemnification for judgments, settlements or expenses if he or she
is found liable to the Registrant (except to the extent the court determines he
or she is fairly and reasonably entitled to indemnity for expenses), for
settlements not approved by the Registrant or for settlements and expenses if
the settlement is not approved by the court. The indemnification agreements
provide for the Registrant to advance to the individual any and all reasonable
expenses (including legal fees and expenses) incurred in investigating or
defending any such action, suit or proceeding. In order to receive an advance
of expenses, the individual must submit to the Registrant copies of invoices
presented to him or her for such expenses. Also, the individual must repay such
advances upon a final judicial decision that he or she is not entitled to
indemnification.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Registrant intends to enter into additional
indemnification agreements with each of its directors and executive officers to
effectuate these indemnity provisions and to purchase directors&#146; and officers&#146;
liability insurance.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At present, there is no pending litigation or
proceeding involving a director, officer, employee or other agent of the
Registrant in which indemnification is being sought, nor is the Registrant
aware of any threatened litigation that may result in a claim for
indemnification by any director, officer, employee or other agent of the
Registrant.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;102 of the Delaware General Corporation
Law, or DGCL, as amended, allows a corporation to eliminate the personal
liability of directors of a corporation to the corporation or its stockholders
for monetary damages for breach of fiduciary duty as a director, except where
the director breached the duty of loyalty, failed to act in good faith, engaged
in intentional misconduct or knowingly violated a law, authorized the payment
of a dividend or approved a stock repurchase in violation of the DGCL or
obtained an improper personal benefit.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Generally, Section&nbsp;145 of the General Corporation
Law of the State of Delaware permits a corporation to indemnify certain persons
made a party to an action, by reason of the fact that such person is or was a
director, officer, employee or agent of the corporation or is or was serving at
the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise. In
the case of an action by or in the right of the corporation, no indemnification
may be made in respect of any matter as to which that person was adjudged
liable to the corporation unless the Delaware Court of Chancery or the court in
which the action was brought determines that despite the adjudication of
liability that person is fairly and reasonably entitled to indemnity for proper
expenses. To </font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the extent that person has
been successful in the defense of any matter, that person shall be indemnified
against expenses actually and reasonably incurred by him.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Registrant maintains
insurance policies insuring each of its directors and officers against certain
civil liabilities, including liabilities under the Securities Act.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item7_ExemptionFromRegistrationCl_132201"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 7.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exemption
from Registration Claimed.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 4,015,860 restricted
shares of our common stock issued prior to the filing of this Registration
Statement that are &#147;restricted securities&#148; (as such term is defined in Rule&nbsp;144(a)(3)&nbsp;under
the Securities Act) that are being registered for reoffer and resale under this
Registration Statement were issued pursuant to written compensation contracts
in transactions exempt from registration under Rule&nbsp;701 under the
Securities Act.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item8_Exhibits__132212"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 8.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exhibits.</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr>
  <td width="55" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:41.55pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;">Exhibit&nbsp;No.</p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.05pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:1.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="20" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="525" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:393.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="62" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.6pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
  </td>
  <td width="22" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="525" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:393.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Refco Inc. 2005 Stock
  Incentive Plan (incorporated by reference to Exhibit&nbsp;10.29 to Amendment No.&nbsp;3
  to the Registrant&#146;s Registration Statement (Registration No.&nbsp;333-123969)
  on Form&nbsp;S-1, filed on July&nbsp;20, 2005).</font></p>
  </td>
 </tr>
 <tr>
  <td width="62" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.6pt;">
  <p align="center" style="margin:6.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="22" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="525" valign="top" style="padding:0pt .7pt 0pt 0pt;width:393.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal
  Opinion of Weil, Gotshal&nbsp;&amp; Manges LLP (filed herewith).</font></p>
  </td>
 </tr>
 <tr>
  <td width="62" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.6pt;">
  <p align="center" style="margin:6.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="22" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="525" valign="top" style="padding:0pt .7pt 0pt 0pt;width:393.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent
  of Weil, Gotshal&nbsp;&amp; Manges LLP (included in Exhibit&nbsp;No.&nbsp;5.1).</font></p>
  </td>
 </tr>
 <tr>
  <td width="62" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.6pt;">
  <p align="center" style="margin:6.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="22" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="525" valign="top" style="padding:0pt .7pt 0pt 0pt;width:393.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent
  of Independent Registered Public Accounting Firm (Grant Thornton LLP) (filed
  herewith).</font></p>
  </td>
 </tr>
 <tr>
  <td width="62" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.6pt;">
  <p align="center" style="margin:6.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font></p>
  </td>
  <td width="22" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="525" valign="top" style="padding:0pt .7pt 0pt 0pt;width:393.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power
  of Attorney (included as part of the signature page&nbsp;to this Registration
  Statement and incorporated herein by reference).</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 11.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Undertakings.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; The
undersigned Registrant hereby undertakes:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 60.0pt;page-break-after:avoid;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement;</p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;margin-left:57.0pt;">
 <tr>
  <td width="24" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.0pt;">
  <p align="right" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:right;">(i)</p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="500" valign="top" style="padding:0pt .7pt 0pt 0pt;width:375.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to include any prospectus required by
  Section&nbsp;10(a)(3)&nbsp;of the Securities Act of 1933;</font></p>
  </td>
 </tr>
 <tr>
  <td width="24" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font></p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.4pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="500" valign="top" style="padding:0pt .7pt 0pt 0pt;width:375.3pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to reflect in the
  prospectus any facts or events arising after the effective date of the
  Registration Statement (or the most recent post-effective amendment thereof)
  which, individually or in the aggregate, represent a fundamental change in
  the information set forth in the Registration Statement; and</font></p>
  </td>
 </tr>
 <tr>
  <td width="24" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font></p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.4pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="500" valign="top" style="padding:0pt .7pt 0pt 0pt;width:375.3pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to include any material
  information with respect to the plan of distribution not previously disclosed
  in the Registration Statement or any material change to such information in
  the Registration Statement;</font></p>
  </td>
 </tr>
</table>

<p style="margin:6.0pt 0pt 6.0pt 40.0pt;page-break-after:avoid;text-indent:0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;</font></i></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:6.0pt 0pt 6.0pt 40.0pt;page-break-after:avoid;text-indent:0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">provided</font></i>, <i><font style="font-style:italic;">however</font></i>,
that paragraphs (a)(1)(i)&nbsp;and (a)(1)(ii)&nbsp;do not apply if the
information required to be included in a post-effective amendment by the
foregoing paragraphs is contained in periodic reports filed with or furnished
to the Securities and Exchange Commission by the Registrant pursuant to Section&nbsp;13
or Section&nbsp;15(d)&nbsp;of the Securities Exchange Act of 1934 that are
incorporated by reference in the Registration Statement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 60.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>That, for the purpose of
determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new Registration Statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial <i><font style="font-style:italic;">bona</font></i>
<i><font style="font-style:italic;">fide</font></i> offering thereof.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 60.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To remove from
registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.</p>

<p style="margin:0pt 0pt 6.0pt 40.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; The undersigned Registrant hereby undertakes
that, for purposes of determining any liability under the Securities Act of
1933, each filing of the Registrant&#146;s annual report pursuant to Section&nbsp;13(a)&nbsp;or
Section&nbsp;15(d)&nbsp;of the Securities Exchange Act of 1934 that is
incorporated by reference in the Registration Statement shall be deemed to be a
new Registration Statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial <i><font style="font-style:italic;">bona</font></i>  <i><font style="font-style:italic;">fide</font></i> offering
thereof.</font></p>

<p style="margin:0pt 0pt 6.0pt 40.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160; Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against
public policy as expressed in the Securities Act of 1933 and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in the successful
defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act of 1933 and will be
governed by the final adjudication of such issue.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">4</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>


<p style="font-weight:bold;margin:0pt 0pt 4.0pt;page-break-after:avoid;text-align:center;"><a name="Signatures_131550"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></b></p>

<p style="margin:0pt 0pt 8.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form&nbsp;S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the city of New York, state of New York, on this 12th day of
August, 2005.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold;">REFCO INC</font>.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p align="right" style="margin:18.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.38%;">
  <p style="margin:18.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:45.62%;">
  <p style="margin:18.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PHILLIP R. BENNETT</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:45.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phillip Bennett</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.62%;">
  <p style="margin:0pt 0pt .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">President, Chief Executive Officer and Chairman</font></i></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 7.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt 3.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">POWER
OF ATTORNEY</font></b></p>

<p style="margin:0pt 0pt 4.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned directors
and officers hereby constitute and appoint Phillip R. Bennett and Gerald&nbsp;M.
Sherer and each of them with full power to act and with full power of
substitution and resubstitution, our true and lawful attorney-in-fact with full
power to execute in our name and behalf in the capacities indicated below this
Registration Statement on Form&nbsp;S-8 and any and all amendments thereto,
including post-effective amendments to this Registration Statement on Form&nbsp;S-8,
and to sign any and all additional registration statements relating to the same
offering of securities as this Registration Statement on Form&nbsp;S-8 that are
filed pursuant to the requirements of the Securities Act of 1933, and to file
the same, with all exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission and hereby ratify and
confirm that such attorney-in fact or his substitute shall lawfully do or cause
to be done by virtue thereof.</font></p>

<p style="margin:0pt 0pt 8.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
indicated.</font></p>

<table border="1" cellspacing="0" cellpadding="0" style="border:none;border-collapse:collapse;">
 <tr>
  <td width="92" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:69.0pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"></p>
  </td>
  <td width="47" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:35.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Signature</font></b></p>
  </td>
  <td width="92" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:69.05pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="13" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="114" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:85.35pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"></p>
  </td>
  <td width="24" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Title</font></b></p>
  </td>
  <td width="114" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:85.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="15" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="37" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:27.45pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"></p>
  </td>
  <td width="24" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.95pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Date</font></b></p>
  </td>
  <td width="37" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:27.45pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ PHILLIP R. BENNETT</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President, Chief Executive Officer and</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phillip R.
  Bennett</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman<i><font style="font-style:italic;"><br>
  (Principal Executive Officer)</font></i></font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  GERALD M. SHERER</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gerald M. Sherer</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">(Principal Financial and Accounting Officer)</font></i></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  LEO R. BREITMAN</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leo R. Breitman</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  NATHAN GRANTCHER</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nathan Grantcher</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  DAVID V. HARKINS</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">David V. Harkins</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  SCOTT L. JAECKEL</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Scott L. Jaeckel</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  THOMAS H. LEE</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas H. Lee</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  RONALD O&#146;KELLEY</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ronald O&#146;Kelley</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  SCOTT A. SCHOEN</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;12, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="231" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:173.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Scott A. Schoen</font></p>
  </td>
  <td width="13" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="97" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:72.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 7.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-</font><font face="Times New Roman">1</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">

<div style="font-family:Times New Roman;">

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><a name="ExhibitIndex_133326"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;width:96.66%;">
 <tr>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:9.4%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;">Exhibit No.</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.06%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="85%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:85.0%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.4%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Refco Inc. 2005 Stock Incentive Plan (incorporated
  by reference to Exhibit&nbsp;10.29 to Amendment No.&nbsp;3 to the Registrant&#146;s
  Registration No. 333-123969 on Form S-1, filed on July 20, 2005).</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.4%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.06%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.0%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal Opinion of Weil,
  Gotshal &amp; Manges LLP (filed herewith).</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.4%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.06%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.0%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Weil, Gotshal
  &amp; Manges LLP (included in Exhibit&nbsp;No.&nbsp;5.1).</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.4%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.06%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.0%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Independent
  Registered Public Accounting Firm (Grant Thornton LLP) (filed herewith).</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:9.4%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p align="center" style="margin:4.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.06%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.0%;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power of Attorney
  (included as part of the signature page to this Registration Statement and
  incorporated herein by reference).</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 11.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

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{"company-data": {"conformed-name": "Refco Inc.", "cik": "0001321746", "assigned-sic": "6200", "irs-number": "202537426"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-127508", "film-number": "051022325"}, "business-address": {"street1": "ONE WORLD FINANCIAL CENTER", "street2": "200 LIBERTY STREET, TOWER A", "city": "NEW YORK", "state": "NY", "zip": "10281", "phone": "212-693-7000"}, "mail-address": {"street1": "ONE WORLD FINANCIAL CENTER", "street2": "200 LIBERTY STREET, TOWER A", "city": "NEW YORK", "state": "NY", "zip": "10281"}}
As filed with the Securities and Exchange Commission on August 12, 2005
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Refco
Inc.
(Exact Name of Registrant
as Specified in its Charter)
Delaware
20-2537426
(State or Other
  Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
One World Financial Center
200 Liberty Street, Tower A
New York, New York 10281
(212) 693-7000
(Address of Principal Executive Offices)
REFCO INC.
2005 STOCK INCENTIVE PLAN
(Full Title of Plan)
Dennis A. Klejna
Refco Inc.
One World Financial Center
200 Liberty Street, Tower A
New York, New York 10281
(212) 693-7000
(Name, Address, and Telephone Number,
Including Area Code, of Agent For Service)
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be Registered
Amount to be
Registered(1)
Proposed Maximum
Offering Price Per
Share(2)
Proposed Maximum
Aggregate Offering
Price(2)
Amount of
Registration Fee
Common Stock,
  $0.001 par value
7,650,000
$ 27.09
$ 207,238,500
$ 24,391.97
(1)
The securities to be
registered are issuable under the Refco Inc. 2005 Stock Incentive Plan. Pursuant
to Rule 416(a) under the Securities Act of 1933, this Registration
Statement shall cover such additional securities as may be offered or issued to
prevent dilution resulting from stock splits, stock dividends or similar
transactions.
(2)
Estimated
pursuant to Rule 457(h) and 457(c) solely for purposes of
calculating the registration fee based on the average of the high and low sale
prices of the common stock on August 11, 2005 as reported by the New York
Stock Exchange.
EXPLANATORY NOTE
This registration
statement on Form S-8 of Refco Inc. (this "Registration Statement")
has been prepared in accordance with the requirements of Form S-8
under the Securities Act of 1933, as amended (the "Securities Act"), to
register up to 7,650,000 shares of our common stock, par value $0.001 per
share, issued and to be issued to participants in the Refco Inc. 2005 Stock
Incentive Plan (the "Plan"), which includes the registration for reoffer and
resale of
·
up
to 4,015,860 restricted shares of our common stock issued prior to the filing
of this Registration Statement to employees, officers and directors in exchange
for contributions to us at the time of our formation of restricted Class B
member interests of our predecessor New Refco Group Ltd., LLC originally
granted by our predecessor to such employees, officers and directors under
written compensation contracts, which shares constitute "restricted securities"
as such term is defined in Rule 144(a)(3) under the Securities Act, and
·
up
to 3,634,140 shares of our common stock that may be acquired in the future
under this Registration Statement by participants in the Plan who are our "affiliates"
as such term is defined in Rule 405 under the Securities Act of 1933,
which shares constitute "control securities" as such term is defined in General
Instruction C.1(a) of Form S-8 under the Securities Act.
The materials that follow Part I
and precede Part II of this Registration Statement constitute a reoffer
prospectus, prepared in accordance with the requirements of Part I of Form S-3,
in accordance with General Instruction C of Form S-8. As specified
in General Instruction C of Form S-8, the amount of securities to be
reoffered or resold under the reoffer prospectus by each selling stockholder
and any other person with whom he or she is acting in concert for the purpose
of selling our securities, may not exceed, during any three-month period, the
amount specified in Rule 144(e).
PART I
SECTION 10(a) PROSPECTUS
The documents containing the information specified in Part I
of this Registration Statement will be sent or given to participants in the
Plan as specified by Rule 428(b)(i) under the Securities Act. Such
documents are not required to be, and are not being, filed by Refco Inc. with
the Securities and Exchange Commission (the "SEC"), either as part of this
Registration Statement or as prospectuses or prospectus supplements pursuant to
Rule 424 under the Securities Act. Such documents, together with the
documents incorporated by reference herein pursuant to Item 3 of Part II
of this Registration Statement, constitute a prospectus that meets the
requirements of Section 10(a) of the Securities Act.
Throughout this Registration Statement, the words "Refco,"
"we," "us," the "Company," the "Registrant," and "our" refer to Refco Inc. and
its consolidated subsidiaries.
I-
1
REOFFER PROSPECTUS
7,650,000 Shares
Refco Inc.
Common Stock
This prospectus covers the
reoffer and resale by the selling stockholders of up to 7,650,000 shares of our
common stock that we have issued or that we may issue in the future to
participants in the Refco Inc. 2005 Stock Incentive Plan (the "Plan"),
including
·
up
to 4,015,860 restricted shares of our common stock issued prior to the filing
of the registration statement of which this reoffer prospectus is a part to
employees, officers and directors in exchange for contributions to us at the
time of our formation of restricted Class B member interests of our
predecessor New Refco Ltd., LLC originally granted by our predecessor to such
employees, officers and directors under written compensation contracts, which
shares constitute "restricted securities" as such term is defined in Rule 144(a)(3) under
the Securities Act of 1933, as amended (the "Securities Act"), and
·
up
to 3,634,140 shares of our common stock that we may issue in the future to
participants in the Plan who are our "affiliates" as such term is defined in Rule 405
under the Securities Act of 1933, which shares constitute "control securities"
as such term is defined in General Instruction C.1(a) of Form S-8
under the Securities Act.
Our common stock is listed on the New York Stock
Exchange under the symbol "RFX."
The shares may be offered by the selling stockholders
from time to time through or to brokers on the New York Stock Exchange, in the
over-the-counter market or otherwise at prices acceptable to the selling
stockholders. The amount of securities to be offered or resold under this
prospectus by each selling stockholder or other person with whom he or she is
acting in concert for the purpose of selling our securities, may not exceed,
during any three month period, the amount specified in Rule 144(e) under
the Securities Act.
Investing in our
common stock involves risks. See "Risk Factors" on page 4.
Neither the Securities and Exchange Commission nor any
state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to
the contrary is a criminal offense.
The date of this prospectus is August 12, 2005.
TABLE OF CONTENTS
Page
WHERE YOU CAN FIND MORE
  INFORMATION
2
INCORPORATION OF CERTAIN
  DOCUMENTS BY REFERENCE
2
PROSPECTUS SUMMARY
3
RISK FACTORS
4
FORWARD-LOOKING STATEMENTS
25
USE OF PROCEEDS
26
SELLING STOCKHOLDERS
26
PLAN OF DISTRIBUTION
28
LEGAL MATTERS
29
EXPERTS
30
You should
rely only on the information contained in or incorporated by reference into
this document or to which we have referred you. We have not authorized anyone
to provide you with information that is different. This document may only be
used where it is legal to sell these securities. The information in this
document may only be accurate on the date of this document.
"REFCO" and the Refco logo are our trademarks. Other
service marks, trademarks and trade names referred to in this prospectus are
the property of their respective owners. As indicated in this prospectus, we
have included market data and industry forecasts that were obtained from
industry publications.
1
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the
informational requirements of the
Securities Exchange Act of 1934, as
amended (the "Exchange Act"), and under those requirements we file reports and
other information with the Securities and Exchange Commission (the "SEC"). The
SEC maintains a website on the Internet that contains reports, proxy and
information statements and other information regarding registrants, including
our company, that file electronically with the SEC. The SEC's website address
is
www.sec.gov.
In addition, our filings
with the SEC may be inspected and copied at the public reference facilities of
the SEC located at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, DC 20549; and at the SEC's regional offices at Citicorp Center, 500
West Madison Street, Room 1400, Chicago, IL 60661, and at 233 Broadway,
New York, NY 10279. Copies of our filings may also be obtained upon request and
payment of the appropriate fee from the Public Reference Section of the
SEC located at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, DC 20549.  The public may
obtain information on the operation of the SEC's public reference facilities by
calling the SEC at 1-800-SEC-0330.
You may also obtain
a copy of any of our filings from us, at no cost, by writing or telephoning us
at:
Refco Inc.
One World
  Financial Center
200 Liberty
  Street, Tower A
New York, New
  York 10281
Attn: Investor
  Relations
(212) 693-7000
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
We hereby
incorporate by reference into this reoffer prospectus the following documents
filed with the SEC:
·
Our
prospectus filed with the SEC on August 11, 2005 pursuant to Rule 424(b) under
the Securities Act; and
·
The
description of our common stock contained in our Registration Statement on Form S-1
under the Securities Act (Reg. No. 333-123969), which description is
incorporated by reference into the Form 8-A filed with the SEC on August
11, 2005, pursuant to the Exchange Act, and any amendment or report filed for
the purpose of further updating such description.
All documents subsequently
filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the filing of a post-effective amendment to the
registration statement including this reoffer prospectus which indicates that
all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall also be incorporated by reference
herein and to be a part hereof from the date of the filing of such documents.
2
PROSPECTUS SUMMARY
This summary highlights key
information contained elsewhere in, or incorporated by reference into,  this prospectus. It may not contain all of
the information that is important to you. You should read the entire  prospectus, including "Risk Factors," our
consolidated financial statements and the related notes thereto incorporated by
reference into this  prospectus and the other
documents incorporated by reference into this 
prospectus or to which this prospectus refers, before making an
investment decision. In this prospectus, the terms "Refco," "we," "our" and "us"
refer to Refco Inc. and its subsidiaries. The terms "fiscal year" and "FY"
refer to the 52 or 53 weeks ended on the final day in February, while the terms
"calendar year" and "year" refer to the year ended December 31 of the year
referenced.
Our Company
We are a leading
independent provider of execution and clearing services for exchange-traded
derivatives and a major provider of prime brokerage services in the fixed
income and foreign exchange markets. We offer our customers rapid, low-cost
trade execution and clearing services on a broad spectrum of derivatives exchanges
and over-the-counter markets. We serve over 200,000 customer accounts from our
23 locations in 14 countries with a focus on delivering superior customer
service. Our customers include corporations, government agencies, hedge funds,
managed futures funds, pension funds, financial institutions, retail clients
and professional traders.
Our Businesses
We are organized into two
operating business segments for financial reporting purposes: Derivatives
Brokerage & Clearing and Prime Brokerage/Capital Markets.
Derivatives Brokerage & Clearing
We provide our customers
with access to trading in a wide range of derivatives products, including
interest rate, equity index, energy, agriculture, foreign currency and metals
contracts, across virtually all of the major derivatives exchanges. Customers
use our Derivatives Brokerage & Clearing platform to place buy and
sell orders for exchange-traded derivatives contracts, which we direct to
the appropriate exchange for matching. We also facilitate confirmation and settlement
of our customers' derivatives transactions and ensure that our customers have
the appropriate collateral in their accounts to support their derivatives
positions. We conduct these activities in our capacity as a regulated Futures
Commission Merchant.
Prime Brokerage/Capital Markets
We offer prime brokerage
services, including execution, clearing, securities financing, securities
lending, custody and trade processing. We provide these prime brokerage
services primarily in the U.S. Treasury securities, non-dollar fixed income and
foreign exchange markets. To the extent the products for which we provide
brokerage services do not trade on regulated exchanges, we broker these
transactions as a principal. Our customers include hedge funds and other financial
institutions.
Our Executive Offices
We are a Delaware corporation. Our principal executive
offices are located at One World Financial Center, 200 Liberty Street, Tower A,
New York, New York 10281, and our telephone number is (212) 693-7000.
We also have a website located at
www.refco.com
.
The information that appears on our website is not a part of, and is not
incorporated into, this prospectus.
3
RISK FACTORS
An investment in our common stock involves a high
degree of risk. Presented below are all the risks that management deems
material to an investment in our common stock. You should carefully consider
the risks described below, together with the other information contained in
this prospectus, before making an investment decision. As a result of any of
these risks our business, results of operations or financial condition may be
adversely affected, and you may lose all or part of your investment in our
common stock.
Risks Relating to Our Company
Changes in domestic
and international market factors that reduce trading volumes or interest rates
could significantly harm our business.
We generate
revenues primarily from transaction fees we earn from executing and clearing
customer orders and from interest income we earn on cash balances in our
customers' accounts and from providing secured financing through repurchase
transactions. These revenue sources are substantially dependent on customer
trading volumes and interest rates. We are, in particular, affected by our
customers' trading volumes and their demand for particular derivatives
products, such as foreign exchange, interest rate, equity and fixed income
futures and options. The volume of transactions our customers conduct with us
and interest rates are directly affected by domestic and international market
factors that are beyond our control, including:
·
economic,
political and market conditions;
·
broad
trends in industry and finance;
·
changes
in levels of trading activity in the broader marketplace;
·
price
levels and price volatility in the derivatives, fixed income, equity, foreign
exchange and commodity markets;
·
legislative
and regulatory changes;
·
the
actions of our competitors;
·
changes
in government monetary policies;
·
foreign
exchange rates; and
·
inflation.
Any one or more of these
factors, or others, may contribute to reduced trading volumes or changes in
interest rates. Any material decrease in trading volume in the securities markets
in general, or the derivatives, fixed income and foreign exchange markets in
particular, or any decline in prevailing interest rates would have a material
adverse effect on our business, financial condition and operating results. By
way of example, during the second quarter of fiscal year 2005, the seasonal
decrease in exchange-traded derivative volumes in Europe (Eurex) and
Chicago (the Chicago Mercantile Exchange), exacerbated by historically low
levels of volatility in underlying equity and fixed income markets, resulted in
a decrease of 5.0% in our transaction volume and a decrease of 7.3% in
Derivatives Brokerage & Clearing revenues for the quarter ended August 31,
2004 as compared with the quarter ended May 31, 2004.
We face intense
competition from other companies, and if we are not able to successfully
compete with them, our business may be harmed.
The derivatives,
securities and financial services industries are highly competitive, and we
expect that competition will intensify in the future. We have numerous current
and prospective competitors, both domestically and internationally. Our primary
competitors include both large, diversified financial
4
institutions,
such as major commercial and investment banks and independent Futures
Commission Merchants, foreign broker-dealers and other specialty broker-dealers.
Many of our competitors and potential competitors have larger customer bases,
more established name recognition and greater financial, marketing,
technological and personnel resources than we do. These resources may enable
them to, among other things:
·
develop
services similar to ours or new services that are preferred by our customers;
·
provide
access to trading in products or a range of products that we do not offer;
·
provide
better execution and clearing and lower transaction costs;
·
offer
better, faster and more reliable technology;
·
take
greater advantage of new or existing acquisitions, alliances and other
opportunities;
·
more
effectively market, promote and sell their services; and
·
better
leverage their relationships with their customers.
In addition, new or
existing competitors could gain access to trading markets in which we currently
enjoy a competitive advantage. For example, if additional competitors gained
access to the interdealer broker market, it could adversely affect our
advantage in providing trading access to the U.S. Treasury securities market.
Other market participants, such as the exchanges, may expand their services and
begin competing with us more directly. Even if new or existing competitors do
not significantly erode our market share, they may offer their services at
lower prices, and we may be required to reduce our fees significantly to remain
competitive, which could have a material adverse effect on our profitability.
If we fail to compete effectively, our business, financial condition and
operating results could be materially harmed.
Our business could
be adversely affected if we are unable to retain our existing customers or
attract new customers.
The success of our
business depends, in part, on our ability to maintain and increase our customer
base. Customers in our market are sensitive to, among other things, the costs
of using our services, the quality of the services we offer, the speed and
reliability of order execution and the breadth of our service offerings and the
products and markets to which we offer access. We may not be able to continue
to offer the pricing, service, speed and reliability of order execution or the
service, product and market breadth that customers desire. In addition, our
existing customers are not obligated to use our services and can switch
providers of execution and clearing services or decrease their trading activity
conducted through us at any time. As a result, we may fail to retain existing
customers or be unable to attract new customers. Our failure to maintain or
attract customers could have a material adverse effect on our business,
financial condition and operating results.
We rely on
relationships with our introducing brokers for obtaining some of our customers.
The failure to maintain these relationships could adversely affect our
business.
We have relationships with
introducing brokers who assist us in establishing new customer relationships
and provide marketing and customer service functions for some of our customers.
These introducing brokers receive compensation for introducing customers to us.
Many of our relationships with introducing brokers are non-exclusive or may be
cancelled on relatively short notice. In addition, our introducing brokers have
no obligation to provide new customer relationships or minimum levels of
transaction volume. Our failure to maintain these relationships with these
introducing brokers or the failure of these introducing brokers to establish
and maintain customer relationships would result in a loss of revenues, which
could adversely affect our business.
5
Our business
operations could be significantly disrupted if we lost the services of our
President and Chief Executive Officer.
Our future success depends
to a significant degree upon the continued contributions of our management
team, particularly our President and Chief Executive Officer, Phillip Bennett. Mr. Bennett
may voluntarily terminate his employment with us at any time. The loss of the
services of Mr. Bennett could adversely affect our ability to manage our
business effectively or execute our business strategy. None of our agreements
governing our debt instruments or other contracts includes a provision
requiring the continued service of any key employee, and we do not maintain key
man life insurance policies on any of our executive officers, including Mr. Bennett.
See "Management—Directors and Executive Officers."
We may not be able
to attract and retain the highly skilled employees we need to support our
business.
Our future success also
depends upon the efforts of our qualified and highly trained sales personnel
and upon our ability to recruit and retain highly skilled and often specialized
personnel, particularly in light of the rapid pace of technological advances.
The level of competition in our industry for individuals with this level of
experience or these skills is intense. If we are not able to attract and retain
highly skilled employees, it could have a material adverse effect on our
business, financial condition and operating results.
We may not
effectively manage our growth, which could materially harm our business.
The growth of our business has placed and may continue
to place a significant strain on our management, personnel, systems and
resources. We must continue to improve our operational and financial systems
and managerial controls and procedures, and we will need to continue to expand,
train and manage our technology workforce. We must also maintain close
coordination among our technology, compliance, risk management, accounting,
finance, marketing and sales organizations. We may not manage our growth
effectively. If we fail to do so, our business could be materially harmed.
If we continue to grow, we
may be required to increase our investment in facilities, personnel and
financial and management systems and controls. Continued growth may also
require expansion of our procedures for monitoring and assuring our compliance
with applicable regulations and that we recruit, integrate, train and manage a
growing employee base. The expansion of our existing businesses, our expansion
into new businesses and the resulting growth of our employee base increase our
need for internal audit and monitoring processes that are more extensive and
broader in scope than those we have historically required. We may not be
successful in implementing all of the processes that are necessary. Further,
unless our growth results in an increase in our revenues that is proportionate
to the increase in our costs associated with this growth, our operating margins
and profitability will be adversely affected.
Our operations
expose us to significant customer and counterparty credit risks.
Customers and
counterparties that owe us money, securities or other assets may default on
their obligations to us due to bankruptcy, lack of liquidity, operational
failure or other reasons. As a clearing broker, we act on behalf of our
customers for all trades consummated both on exchanges and in over-the-counter
markets. Accordingly, we are responsible for our customers' obligations with
respect to these transactions, which exposes us to significant credit risk. A
substantial part of our working capital is at risk if customers default on
their obligations to us and their account balances and security deposits are
insufficient to meet all of their obligations. As of May 31, 2005, February 28,
2005 and February 29, 2004, our reserve against receivables from customers
was $62.1 million, $61.2 million and $65.2 million, respectively.
Although we regularly review credit exposures to specific customers and
counterparties to address present credit concerns, default risk may arise from
events or circumstances that are difficult to detect or foresee. In addition,
concerns about, or a default by, one institution could lead to significant
6
liquidity
problems, losses or defaults by other institutions, which in turn could
adversely affect us. We may be materially and adversely affected in the event
of a significant default by our customers and counterparties.
We are subject to
an SEC investigation, which could adversely affect our business.
On May 16, 2005 we announced that our subsidiary,
Refco Securities, LLC ("Refco Securities"), had received a "Wells Notice" from
the SEC arising out of an investigation into short sales of the stock of Sedona
Corporation. The Wells Notice stated that the SEC staff intends to recommend
that a civil enforcement action be brought against Refco Securities, alleging
violations of Section 17(a) of the Securities Act of 1933, as
amended, Sections 10(b) and 17(a) of the Exchange Act of 1934,
as amended, and Rules l0b-5, l7a-3 and 17a-4 thereunder,
Section 220.8 of Regulation T, Conduct Rule 3370 of the National
Association of Securities Dealers, Inc., aiding and abetting violations of
Section 15(a) of the Exchange Act of 1934, as amended, and failure to
comply with a prior SEC cease and desist order and the Section 21(a) order
from the SEC. We are in active discussions with the SEC to resolve the matters
raised in the investigation and believe that we are near a resolution on all
material issues. This settlement likely will involve an injunction against
future violations of certain provisions, including anti-fraud provisions, of
the federal securities laws, an order to comply with the prior cease and desist
order and the Section 21(a) order, an administrative censure, payment
of a substantial civil penalty and retention of an independent consultant to
review and make recommendations with respect to various business practices and
procedures. We have recorded a reserve of $5.0 million for this potential
settlement.
Santo C. Maggio, the President and Chief Executive
Officer of Refco Securities, also has been in negotiations with the SEC staff,
and likewise is near a resolution of certain supervisory matters raised in the
investigation. Mr. Maggio, as part of such resolution, is prepared to
accept the entry of an administrative order suspending him for a year from any
supervisory duties. While complying with the restrictions of such supervisory
suspension, Mr. Maggio would continue to work for us and Refco Securities
in his current capacities.
Although we are working to finalize the terms of these
settlements in a formal offer of settlement, we believe that the settlements as
described above are highly likely and that the SEC staff would recommend such
settlements to the SEC Commissioners, whose approval is required. However, we
may not reach such settlements with the SEC staff on these terms, or at all or,
even if we do, the SEC Commissioners may not approve such settlements. The
terms of any final settlements approved by the SEC Commissioners, or any
resolution of these matters if we or Mr. Maggio are unable to reach a
settlement with the SEC, may be materially less favorable than the settlements
described above and could have a material adverse effect on our business.
In October 2003, we
received a subpoena from the U.S. Attorney's Office for the Southern District
of New York, which called for the production of documents we had produced to
the SEC. In addition to producing documents in response to the foregoing
subpoenas, we have made our employees available to testify before the SEC and
to be interviewed by the U.S. Attorneys' office. Refco Securities, LLC has been
advised orally that neither it nor Mr. Maggio is currently the subject of
the U.S. Attorneys' investigation.
Our compliance and
risk management methods might not be effective, which could increase the risk
that we are subject to regulatory action or litigation or otherwise negatively
impact our business.
Our ability to comply with applicable laws, rules and
regulations is largely dependent on our establishment and maintenance of
compliance, audit and reporting systems, as well as our ability to attract and
retain qualified compliance and other risk management personnel. If we fail to
effectively establish and maintain such compliance and reporting systems or
fail to attract and retain personnel who are
7
capable of designing and
operating such systems, it will increase the likelihood that we will become
subject to legal and regulatory infractions, including civil litigation and
investigations by regulatory agencies.
For us to avoid a number
of risks inherent in our business, it is necessary for us to have polices and procedures
that identify, monitor and manage our risk exposure. Management of operational,
legal and regulatory risk requires, among other things, policies and procedures
to record properly and verify a large number of transactions and events. Such
policies may not be fully effective. Some of our risk management policies and
procedures depend upon evaluation of information regarding markets, customers
or other matters that are publicly available or otherwise accessible by us.
That information may not in all cases be accurate, complete, up-to-date or
properly evaluated. Further, our risk management policies and procedures rely
on a combination of technical and human controls and supervision, which are
subject to error and failure. Some of our risk management policies and
procedures are based on internally developed controls and observed historical
market behavior and also involve reliance on industry standard practices. These
policies and procedures may not adequately prevent future losses, particularly
as they relate to extreme market movements, which may be significantly greater
than comparable historical movements. While we have no reason to believe that
our policies and procedures will not continue to be effective, they may not
always be effective in the future, and we may not always be successful in
monitoring or evaluating the risks to which we are or may be exposed. If our
risk management efforts are ineffective, we could suffer losses that could have
a material adverse effect on our financial condition or operating results.
Failure to timely
complete the acquisition of Cargill Investor Services' global brokerage
operations could require us to revise our business plan.
Although we expect to
complete our acquisition of Cargill Investor Services' global brokerage
operations in the next two months, the acquisition is subject to receipt of
regulatory approvals and other closing conditions, including the receipt of
audited financial statements for the acquired business that are consistent with
the preliminary financial statements for the acquired business provided to us
by the seller. Our failure to complete the acquisition on the expected
schedule, or at all, could require us to revise our business plan and could
otherwise have a material adverse effect on our business and on the trading
price of our common stock.
Our acquisition,
joint venture and investment strategies and any other new business initiatives
we undertake involve risks, and if we are unable to manage these risks
effectively, our business will be materially harmed.
In the past, we
have expanded our business through acquisitions, and to achieve our strategic
objectives in the future, we may seek to acquire other companies, businesses or
technologies. Acquisitions entail numerous risks, including the following:
·
difficulties
in the integration of acquired operations, personnel or technologies;
·
diversion
of management's attention from other business concerns;
·
assumption
of unknown material liabilities or regulatory non-compliance issues;
·
failure
to achieve financial or operating objectives with respect to an acquired
company, business or technology;
·
amortization
of acquired intangible assets, which would reduce future reported earnings; and
·
potential
loss of customers or key employees of acquired companies.
Failure to manage our
acquisitions to avoid these risks could have a material adverse effect on our
business, financial condition and operating results. We have completed 16
acquisitions since 1999. If we continue to undertake acquisitions with a
similar or greater frequency, these risks could be magnified and our personnel
and other resources could become subject to additional strain.
8
We also may seek to expand
or enhance our operations by forming joint ventures, making other investments
or undertaking other business initiatives and entering new lines of businesses.
Entering into joint ventures also entails risks, including difficulties in
developing and expanding the business of newly formed joint ventures,
exercising influence over the activities of joint ventures in which we do not
have a controlling interest and potential conflicts with our joint venture
partners. Other investments and business initiatives may also involve risks,
including but not limited to loss of investment. Any acquisition, joint
venture, investment or other business initiative that we have or may enter into
may not be successful. Unsuccessful joint ventures, investments and other
business initiatives could harm our business, financial condition and operating
results.
Our international operations involve special
challenges that we may not be able to meet, which could adversely affect our
financial results.
We
currently conduct international operations and plan to expand those operations.
There are a number of risks inherent in doing business in international
markets, particularly in the derivatives, fixed income and foreign exchange
markets, which are heavily regulated in many jurisdictions outside the United
States. These risks include:
·
less
developed technological infrastructures and generally higher costs, which could
result in lower customer acceptance of our services or customers having
difficulty accessing our products and services;
·
the
inability to manage and coordinate the various regulatory requirements of multiple
jurisdictions that are constantly evolving and subject to unexpected change;
·
difficulties
in staffing and managing foreign operations;
·
fluctuations
in currency exchange rates; and
·
potentially
adverse tax consequences.
Our operations in some
less developed countries are also subject to the political, legal and economic
risks associated with politically unstable and less developed regions of the
world, including the risk of war and other international conflicts and actions
by governmental authorities, insurgent groups, terrorists and others.
Specifically, we conduct business in countries whose currencies may be
unstable. Future instability in such currencies or the imposition of
governmental or regulatory restrictions on such currencies could impede our
foreign exchange business and our ability to collect on collateral held in such
currencies.
Although our revenues are
denominated predominantly in U.S. dollars, we generally invest in assets that
match the currency in which we expect the related liabilities to be paid.
Members' equity held in local business units is kept primarily in local
currencies to the extent that members' equity is required to satisfy regulatory
and self-imposed capital requirements. This may adversely affect our reported
combined members' equity when translated into U.S. dollars at the applicable
exchange rate. The volatility of currency exchange rates may materially
adversely affect our operating results.
In addition, we are
required to comply with the laws and regulations of foreign governmental and
regulatory authorities of each country in which we conduct business. These may
include laws, rules and regulations, including registration requirements
relating to many aspects of the derivatives, fixed income and foreign exchange
markets. Our compliance with these laws and regulations may be difficult and
time consuming and may require significant expenditures and personnel
requirements, and our failure to be in compliance would subject us to legal and
regulatory liabilities. We have customers in numerous countries around the
world in which we are not registered. As a result, we may become subject to the
regulatory requirements of those countries. We may also experience difficulty
in managing our international operations because of, among other things,
competitive conditions overseas, management of foreign exchange risk,
established domestic markets, language and cultural differences and economic or
political
9
instability.
Any of these factors could have a material adverse effect on the success of our
international operations or limit our ability to grow our international
operations and, consequently, on our business, financial condition and
operating results.
Our operating results are subject to significant
fluctuations due to seasonality. As a result, you should not rely on our
operating results in any particular period as an indication of our future
performance.
Our business experiences
seasonal fluctuations. Financial markets often experience reduced trading
activity during summer months and in the last fiscal quarter as a result of
holidays. Traditional commodity derivatives, such as energy, will reflect
changing supply/demand factors related to heating/cooling seasons. As a result
of these factors, we may experience relatively higher trading volume and thus
revenue during our first and third fiscal quarters and lower trading volume in
our second fiscal quarter.
If we experience systems failures or capacity
constraints, our ability to conduct our operations would be materially harmed.
We are heavily dependent
on the capacity and reliability of the computer and communications systems
supporting our operations, whether owned and operated internally or by third
parties. We receive and process a large portion of our trade orders through electronic
means, such as through public and private communications networks. These
computer and communications systems and networks are subject to performance
degradation or failure from any number of reasons, including loss of power,
acts of war or terrorism, human error, natural disasters, fire, sabotage,
hardware or software malfunctions or defects, computer viruses, intentional
acts of vandalism, customer error or misuse, lack of proper maintenance or
monitoring and similar events. During the terrorist attacks on the World Trade
Center on September 11, 2001, we lost access to a significant portion of
our communications and computer networks. Although the disruption of our
operations as a result of this event was not material, future occurrences of
any of the events listed above, or of any other events, could result in the
material degradation or failure of our computer and communications systems and
networks.
If
such a degradation or failure were to occur, it could cause any number of
results, including:
·
unanticipated
disruptions in service to our customers;
·
slower
response times;
·
delays
in our customers' trade execution;
·
failed
settlement of trades; and
·
incomplete
or inaccurate accounting, recording or processing of trades.
Further, any of our redundant
systems or disaster recovery plans may not have been implemented properly, and
these systems and plans or our personnel may not be adequate to correct or
mitigate any of the above events. In addition, any redundant systems, disaster
recovery plans or personnel of our third-party service providers may not
be adequate to correct or mitigate any of the above events or be implemented
properly. The occurrence of degradation or failure of the communications and
computer systems on which we rely may lead to financial losses, litigation or
arbitration claims filed by or on behalf of our customers and regulatory
investigations and sanctions, including by the Securities and Exchange
Commission and the Commodity Futures Trading Commission, which require that our
trade execution and communications systems be able to handle anticipated
present and future peak trading volumes. Any such degradation or failure could
also have a negative effect on our reputation, which in turn could cause us to
lose existing customers to our competitors or make it more difficult for us to
attract new customers in the future. Further, any financial loss that we suffer
as a result of such degradations or failures could be magnified by price
movements of contracts involved in transactions impacted by the degradation or
failure, and we may be unable to take corrective action to mitigate any losses
we suffer.
10
If we fail to maintain our computer and communications
systems and networks properly or to upgrade and expand such systems and
networks in response to technological change, our business will be materially
harmed.
We need to properly
maintain the computer and communications systems and networks that we currently
own and operate. We internally support and maintain many of our existing systems
and networks, including those that are critical to our derivatives clearing
operations. Our failure to adequately maintain these systems and networks could
have a material effect on the performance and reliability of such systems and
networks, which in turn could materially harm our business.
Further, the markets in
which we compete are characterized by rapidly changing technology, evolving
customer demand and uses of our services and the emergence of new industry
standards and practices that could render our existing technology and systems
obsolete. Our future success will depend in part on our ability to anticipate
and adapt to technological advancements, evolving customer demands and changing
standards in a timely, cost-efficient and competitive manner and to upgrade and
expand our systems accordingly. Any upgrades or expansions may require
significant expenditures of funds and may also increase the probability that we
will suffer system degradations and failures. We may not have sufficient funds
to adequately update and expand our networks, and any upgrade or expansion
attempts may not be successful and accepted by the marketplace and our
customers. Our failure to adequately update and expand our systems and networks
or to adapt our systems and technology to evolving customer demands or emerging
industry standards would have a material adverse effect on our business.
We depend on third-party suppliers for a number
of services, which are important to our business.
We depend on a number of
suppliers, such as banking, clearing and settlement organizations, telephone
companies, online service providers, data processors and software and hardware
vendors for elements of our trading, clearing and other systems, as well as
communications and networking equipment, computer hardware and software and
related support and maintenance. These providers may not be able to continue to
provide these services in an efficient, cost-effective manner or be able to
adequately expand their services to meet our needs. In addition, our agreements
with these providers come up for renewal or may be terminated from time to
time. In such an event, we may be required to renegotiate the terms of an
agreement on terms that are not as favorable as under the existing agreement,
or we may be required to find a replacement supplier. An interruption in or the
cessation of service by any service provider and our inability to make
alternative arrangements on favorable terms, in a timely manner or at all,
could have a material adverse effect on our business, financial condition and
operating results.
Our networks and those of our third-party
service providers may be vulnerable to security risks, including our
inadvertent dissemination of non-public information, which could result
in the wrongful use of our or our customers' information, interruptions or
malfunctions in our operations or damage to our reputation.
The secure transmission of
confidential information over public networks is a critical element of our
operations. Our networks, including our online trading platforms, and those of
our third-party service providers, the exchanges and counterparties with
whom we trade and our customers may be vulnerable to unauthorized access,
computer viruses and other security problems, including our inadvertent
dissemination of non-public information. Persons who circumvent security
measures or gain access to customer information could wrongfully use our or our
customers' information or cause interruptions or malfunctions in our
operations, any of which could have a material adverse effect on our business,
financial condition and operating results. Additionally, our reputation could
be damaged. If an actual, threatened or perceived breach of our or our security
providers' security were to occur, or if we were to inadvertently release
confidential customer information, the market perception of the effectiveness
of our security measures could be harmed and could cause customers to reduce or
stop their use of our services, including our online trading platforms. We or
our service providers may be required to expend significant resources to
protect against the threat of any such security breaches or to alleviate
problems, including reputational
11
harm and
litigation, caused by any breaches. Any security measures implemented by us or
our service providers may prove to be inadequate and could result in incidental
system failures and delays that could lower trading volumes and have an adverse
effect on our business, financial condition and operating results.
We may be unable to protect our intellectual property
rights or technology effectively, which would allow competitors to duplicate or
replicate our technology and could adversely affect our ability to compete.
Intellectual property is
important to our success and ability to compete, and if we fail to protect our
intellectual property rights adequately, our competitors might gain access to
our technology. We rely primarily on a combination of copyright, trademark and
trade secret laws in the United States and other jurisdictions, as well as
license agreements, third-party nondisclosure and other agreements and
other contractual provisions and technical measures to protect our intellectual
property rights. We attempt to negotiate beneficial intellectual property
ownership provisions in our contracts and also require employees, consultants,
advisors and collaborators to enter into confidentiality agreements in an
effort to protect the confidentiality of our proprietary information. However,
laws and our actual contractual terms may not be sufficient to protect our
technology from use or theft by third parties. For instance, a third party
might reverse engineer or otherwise obtain and use our technology without our
permission and without our knowledge, thereby infringing our rights and
allowing competitors to duplicate or replicate our products. Furthermore, these
protections may not be adequate to prevent our competitors from independently
developing technologies that are substantially equivalent or superior to our
technology.
We may have legal or
contractual rights that we could assert against illegal use of our intellectual
property rights, but lawsuits claiming infringement or misappropriation are
complex and expensive, and the outcome would not be certain. In addition, the laws
of some countries in which we now or may in the future operate may not protect
intellectual property rights to the same extent as the laws of the United
States.
Defending against
intellectual property infringement and related claims could be expensive and
disruptive to our business. If we are found to infringe the proprietary rights
of others, we could be required to redesign our services, pay royalties or
enter into license agreements with third parties.
Claims that we misuse the intellectual property of
others could subject us to litigation and significant liability and disrupt our
business.
There is frequent
litigation based on allegations of infringement or other violations of
intellectual property rights related to the development or use of technology,
including suits in our industry. As the number of participants in our market
increases and the number of patents and other intellectual property
registrations increase, the possibility of an intellectual property claim
against us grows. We have been sued on intellectual property grounds in the
past and are currently the subject of a patent infringement lawsuit by Trading
Technologies International, Inc. A third party may assert in the future
that our technology or the manner in which we operate our business violates its
intellectual property rights. From time to time, in the ordinary course of
business, we may become subject to legal proceedings and claims relating to the
intellectual property rights of others, and we expect that third parties may
assert intellectual property claims against us, particularly as we expand the
complexity and scope of our business, the number of electronic trading
platforms increases and the functionality of these platforms further overlap.
For example, third parties may assert infringement claims against us in the
future with respect to our electronic trading platforms or any of our other
current or future services. Any claims, whether with or without merit, could:
·
be
expensive and time consuming to defend;
·
prevent
us from operating our business, or portions of our business;
12
·
cause
us to cease developing, licensing or using all or any part of our electronic
trading platform that incorporate the challenged intellectual property;
·
require
us to redesign our products or services, which may not be feasible;
·
result
in significant monetary liability;
·
divert
management's attention and resources; and
·
require
us to pay royalties or enter into licensing agreements in order to obtain the
right to use necessary technologies, which may not be possible on commercially
reasonable terms.
Any of these events could
have a material adverse effect on our business, financial condition and
operating results.
We operate in a
heavily regulated environment that imposes significant costs and compliance
requirements on us. The failure to comply with the regulations to which we are
subject could subject us to sanctions.
We are extensively regulated by the Commodity Futures
Trading Commission; the SEC; the National Association of Securities Dealers,
our designated self-regulatory organization with respect to our registration as
a broker-dealer; the Chicago Mercantile Exchange, our designated
self-regulatory organization with respect to our registration as a Futures
Commission Merchant; the National Futures Association; other exchanges of which
we are a member; state regulatory agencies; and other domestic and foreign
clearing organizations. If we fail to comply with applicable laws, rules or
regulations, we may be subject to criminal conviction, increased reporting
requirements, censure, fines, cease-and-desist orders, suspension of our
business, removal of personnel, civil litigation or other sanctions, including
revocation of our operating licenses.
The organizations and
agencies that regulate us have broad powers to investigate and enforce
compliance and punish non-compliance with their rules and regulations.
Neither we nor our managers, officers and employees may be able to fully comply
with these rules and regulations, and we may be subject to claims or
actions by these organizations and agencies, which could adversely affect our
business.
Changes in
legislation or regulations may affect our ability to conduct our business or
reduce our profitability.
The legislative and regulatory environment in which we
operate has undergone significant change in the past and may undergo
significant change again in the future. The federal government, the Commodity
Futures Trading Commission, the SEC, the National Association of Securities
Dealers, the Chicago Mercantile Exchange, the National Futures Association or
other U.S. or foreign governmental authorities continuously review legislative
and regulatory initiatives and may adopt new or revised laws and regulations.
These legislative and regulatory initiatives may affect the way in which we
conduct our business and may make our business less profitable. Changes in the
interpretation or enforcement of existing laws and regulations by those
entities may also adversely affect our business.
In addition, we use the Internet as the distribution
channel to provide services to our customers. A number of regulatory agencies
have recently adopted regulations regarding customer privacy and the use of
customer information by service providers. Additional laws and regulations
relating to the Internet may be adopted in the future, including regulations
regarding the pricing, taxation, content and quality of products and services
delivered over the Internet. Complying with these laws and regulations is
expensive and time consuming and could limit our ability to use the Internet as
a distribution channel, which could adversely affect our business.
13
Our auditors
reported to us that, at February 28, 2005, there were two significant
deficiencies in our internal controls over financial reporting.
In connection with their
audit of our most recently audited financial statements, our independent
auditors reported to us that we had two significant deficiencies in our
internal controls over financial reporting. Under standards established by the
Public Company Accounting Oversight Board, a "significant deficiency" is
defined as a deficiency that results in more than a remote likelihood that a
misstatement of the financial statements that is more than inconsequential will
not be prevented or detected. One significant deficiency was determined to
exist based on the need to increase our existing finance department resources
to be able to prepare financial statements that are fully compliant with all
SEC reporting guidelines on a timely basis. The second significant
deficiency was determined to exist based on our lack of formalized procedures
for closing our books. Currently we utilize the services of an outside service
provider to assist in our financial reporting process. We are in the process of
enhancing our financial reporting capability by hiring additional internal
audit and finance personnel and developing formalized closing procedures,
including through the implementation of software upgrades throughout our
operations. Although these measures are designed to address the issues raised
by our independent auditors, these and any future measures may not enable us to
remedy these significant deficiencies or avoid other significant deficiencies
in the future. In addition, these and any other significant deficiencies will
need to be addressed as part of the evaluation of our internal controls over
financial reporting pursuant to Section 404 of the Sarbanes-Oxley
Act of 2002 and may impair our ability to comply with Section 404.
See "—We will be exposed to risks relating to the evaluation of our
internal controls over financial reporting as required by Section 404 of the
Sarbanes-Oxley Act of 2002."
We will become
subject to additional financial and other reporting and corporate governance
requirements that may be difficult for us to satisfy. Evolving regulation of
corporate governance and public disclosure may result in additional expenses
and continuing uncertainty.
We have
historically operated our business as a private company. Following the
effectiveness of our registration statement filed with the SEC regarding our
senior subordinated notes, we became obligated to file with the SEC annual and
quarterly information and other reports that are specified in Sections 13 and
15(d) of the Exchange Act, and we are required to ensure that we have the
ability to prepare financial statements that are fully compliant with all SEC
reporting requirements on a timely basis. Following completion of our initial
public offering, we also became a subject to other new financial and other
reporting and corporate governance requirements, including the requirements of
the New York Stock Exchange and certain provisions of the Sarbanes-Oxley
Act of 2002 and the regulations promulgated thereunder, which impose
significant compliance obligations upon us. In particular, we are required to:
·
create
or expand the roles and duties of our board of directors, our board committees
and management;
·
institute
a more comprehensive compliance function;
·
supplement
our internal accounting function, including hiring a chief accounting officer,
additional controllers and other staff with expertise in accounting and
financial reporting for a public company, as well as enhance and formalize
closing procedures at the end of our accounting periods;
·
prepare
and distribute periodic public reports in compliance with our obligations under
the federal securities laws;
·
involve
and retain to a greater degree outside counsel and accountants in the
activities listed above;
·
establish
an internal audit function;
·
enhance
our investor relations function; and
14
·
establish
new internal policies, such as those relating to disclosure controls and
procedures and insider trading.
These obligations require a significant commitment of
additional resources. We may not be successful in implementing these
requirements and implementing them could adversely affect our business or operating
results. In addition, if we fail to implement the requirements with respect to
our internal accounting and audit functions, our ability to report our
operating results on a timely and accurate basis could be impaired.
Changing laws, regulations
and standards relating to corporate governance and public disclosure, including
the Sarbanes-Oxley Act of 2002, new SEC regulations and NYSE rules are
creating uncertainty for public companies. We are presently evaluating and
monitoring developments with respect to new rules and cannot predict or
estimate the amount of the additional costs we may incur or the timing of those
costs. These new or changed laws, regulations and standards are subject to
varying interpretations, in many cases due to their lack of specificity, and as
a result, their application in practice may evolve over time as new guidance is
provided by regulatory and governing bodies. This could result in continuing
uncertainty regarding compliance matters and higher costs necessitated by ongoing
revisions to disclosure and governance practices. If our efforts to comply with
new or changed laws, regulations and standards differ from the activities
intended by regulatory or governing bodies due to ambiguities related to
practice, regulatory authorities may initiate legal proceedings against us,
which could adversely affect our business.
We are a "controlled
company" within the meaning of the NYSE rules and, as a result, qualify
for, and intend to rely on, exemptions from certain corporate governance
requirements.
Thomas H. Lee Partners,
L.P. and Phillip Bennett, our President and Chief Executive Officer, control a
majority of our outstanding common stock. As a result, we are a "controlled
company" within the meaning of the NYSE corporate governance standards. Under
the NYSE rules, a company of which more than 50% of the voting power is held by
an individual, a group, or another company is a "controlled company" and may
elect not to comply with certain NYSE corporate governance requirements, as
applicable, including (1) the requirement that a majority of our board of
directors consist of independent directors, (2) the requirement that we
have a nominating/corporate governance committee that is composed entirely of
independent directors with a written charter addressing the committee's purpose
and responsibilities and (3) the requirement that we have a compensation
committee that is composed entirely of independent directors with a written
charter addressing the committee's purpose and responsibilities. We avail
ourselves of these exemptions. As a result, we do not have a majority of
independent directors and our nominating and corporate governance committee and
our compensation committee do not consist entirely of independent directors.
Accordingly, you will not have the same protections afforded to stockholders of
companies that are subject to all of the NYSE corporate governance
requirements.
We will be exposed
to risks relating to the evaluation of our internal controls over financial
reporting as required by Section 404 of the Sarbanes-Oxley Act of
2002.
We are in the process of
evaluating, testing and implementing internal controls over financial reporting
to enable management to report on, and our independent registered accounting
firm to attest to, such internal controls as required by Section 404 of
the Sarbanes-Oxley Act of 2002. While we anticipate being compliant with
the requirements of Section 404 by our February 28, 2007 deadline, we
cannot be certain as to the timing of the completion of our evaluation, testing
and remediation actions or the impact of the same on our operations. As a
public company, we will be required to report, among other things, control
deficiencies that constitute a "material weakness" or changes in internal
controls that will, or are reasonably likely to, materially affect internal
controls over financial reporting. A "material weakness" is a significant
deficiency, or combination of significant deficiencies that results in more
than a remote likelihood that a material misstatement of the annual or interim
financial statements will not be prevented
15
or
detected. If we are not able to implement the requirements of Section 404
in a timely manner or with adequate compliance, we may be subject to
investigation and sanctions by regulatory authorities, such as the SEC and the
NYSE. As a result, there could be a negative reaction in the financial markets
due to a loss of confidence in the reliability of our financial statements. In
addition, we may be required to incur costs in improving our internal controls
and hiring additional personnel. Any such actions could negatively affect our
results of operations.
We are subject to
significant litigation risk, which could adversely affect our business.
Many aspects of our
business involve substantial liability risks, and we could be exposed to
substantial liability under federal and state laws and court decisions, as well
as regulatory action by the SEC, the Commodity Futures Trading Commission and
other regulatory organizations. These risks include, among others, potential
civil litigation triggered by regulatory investigations, potential liability
from disputes over terms of a trade, the claim that a system failure or delay
caused monetary losses to a customer, that we entered into an unauthorized
transaction or that we provided materially false or misleading statements in
connection with a transaction. The volume of claims and the amount of damages
claimed in litigation and regulatory proceedings against financial
intermediaries have been increasing. Dissatisfied customers frequently make
claims against their service providers regarding quality of trade execution,
improperly settled trades, mismanagement or even fraud. These risks also
include potential liability from disputes over the exercise of our rights with
respect to customer accounts and collateral. Although our customer agreements
generally provide that we may exercise such rights with respect to customer
accounts and collateral as we deem reasonably necessary for our protection, our
exercise of these rights has at times led to claims by customers that we have
exercised these rights improperly. For example, we are currently the subject of
a lawsuit brought by a customer who has alleged that we improperly liquidated
its position in connection with a margin call. See "Business—Legal
Proceedings—Tradewinds." Even if we prevail in this or other cases or claims,
we could incur significant legal expenses defending the cases or claims, even
those without merit. An adverse resolution of any future cases or claims
against us could have a material adverse effect on our reputation, financial
condition or operating results.
We could be harmed
by employee or introducing broker misconduct or errors that are difficult to
detect and deter.
There have been a number
of highly publicized cases involving fraud or other misconduct by employees of
financial services firms in recent years. Misconduct by our employees or
introducing brokers could include hiding unauthorized activities from us,
improper or unauthorized activities on behalf of customers, improper use of
confidential information or use of improper marketing materials. For example,
during the mid-1990s, one of our brokers engaged in conduct that was
violative of regulations of the Commodity Futures Trading Commission and the
Chicago Board of Trade. This conduct resulted in awards and settlements of
private arbitrations in 2001 of approximately $42 million and the payment
by us of an aggregate $7.0 million in fines to the Commodity Futures
Trading Commission and the Chicago Board of Trade in 1999. Employee or
introducing broker misconduct could subject us to financial losses or
regulatory sanctions and seriously harm our reputation. It is not always
possible to deter employee or introducing broker misconduct, and the
precautions we take to prevent and detect this activity may not be effective in
all cases. Our employees or introducing brokers also may commit errors that
could subject us to financial claims for negligence or otherwise, as well as
regulatory actions. We have been subject to claims by our customers relating to
errors committed by our employees. Employee, broker or introducing broker
misconduct or errors could subject us to financial losses or regulatory
sanctions and seriously harm our reputation and could adversely affect our
business, financial condition and operating results.
16
Our business may be
adversely affected if our reputation is harmed.
Our ability to attract and
retain customers and employees may be adversely affected to the extent our
reputation is damaged. If we fail, or appear to fail, to deal with various
issues that may give rise to reputational risk, our reputation may be harmed,
which could harm our business prospects. These issues include, but are not
limited to, appropriately dealing with potential conflicts of interest, legal
and regulatory requirements, ethical issues, money-laundering, privacy,
record-keeping, sales and trading practices, and the proper
identification of the legal, reputational, credit, liquidity and market risks
inherent in our business. Failure to appropriately address these issues could
also give rise to additional legal risk to us, which could, in turn, increase
the size and number of claims and damages asserted against us or subject us to
regulatory enforcement actions, fines and penalties.
Procedures and
requirements of the PATRIOT Act may expose us to significant costs or
penalties.
As participants in the
financial services industry, our subsidiaries are subject to laws and
regulations, including the PATRIOT Act of 2001, which require that they know
certain information about their customers and monitor transactions for
suspicious financial activities. The cost of complying with the PATRIOT Act and
related laws and regulations is significant. As an online broker with customers
worldwide, we may face particular difficulties in identifying our international
customers, gathering the required information about them and monitoring their
activities. We face risks that our policies, procedures, technology and
personnel directed toward complying with the PATRIOT Act are insufficient and
that we could be subject to significant criminal and civil penalties due to
noncompliance. Such penalties could have a material adverse effect on our
business, financial condition and operating results.
If we do not
maintain the capital levels required by regulations, we may be fined or barred
from conducting business.
The SEC, National
Association of Securities Dealers, Commodity Futures Trading Commission and
various other regulatory agencies have stringent rules with respect to the
maintenance of specific levels of net capital by securities broker-dealers
and Futures Commission Merchants. Our failure to maintain the required net
capital could result in suspension or revocation of our registration by the SEC
or the Commodity Futures Trading Commission and our suspension or expulsion by
the National Association of Securities Dealers or other U.S. and international
regulatory bodies and could ultimately lead to our liquidation or the
liquidation of one of our subsidiaries. If net capital rules are changed
or expanded, or if we incur an unusually large charge against net capital, our
operations that require an intensive use of capital could be limited. Such
operations may include dealing activities, marketing and the financing of
customer account balances. See "Business—Regulation" for more information on
the minimum net capital requirements for our domestic broker-dealer and
Futures Commission Merchant subsidiaries.
We require a significant
amount of liquidity.
Ready access to cash is
essential to our business. Our liquidity could be impaired by an inability to
access lines of credit, an inability to access funds from our subsidiaries or
an inability to liquidate customer positions or otherwise sell assets. This
situation may arise due to circumstances that we may be unable to control, such
as a general market disruption or an operational problem that affects third
parties or us. Further, our ability to liquidate customer positions or
otherwise sell assets may be impaired if other market participants are seeking
to sell similar assets at the same time. Our credit ratings are important to
our liquidity. A reduction in our credit ratings could adversely affect our
liquidity and competitive position, increase our borrowing costs, limit our
access to the capital markets or trigger our obligations under certain
bilateral provisions in some of our trading and collateralized financing
contracts. Under such contracts, counterparties could terminate contracts with
us or require us to post additional collateral. Termination of our trading and
collateralized financing contracts could cause us to sustain losses and
17
impair
our liquidity by requiring us to find other sources of financing or to make significant
cash payments or securities movements. The occurrence of any of the foregoing
events could have a material adverse effect on our financial condition or
results of operations.
We have recorded a
significant amount of intangible assets, which may never generate the returns
we expect.
Our acquisitions and the THL Transactions have
resulted in significant amounts of goodwill and identifiable intangible assets.
Goodwill relates to the excess of cost over the fair value of the net assets of
the businesses acquired by us. As of May 31, 2005, we had approximately
$744.1 million of goodwill and approximately $595.9 million of
identifiable intangible assets.
Goodwill and identifiable
intangible assets are recorded at fair value on the date of acquisition, and
under Financial Accounting Standards Board Statement No. 142,
Goodwill and Other Intangible Assets,
goodwill and indefinite lived intangibles are reviewed at least annually for
impairment. Finite lived intangibles are reviewed for impairment whenever events
or changes in circumstances indicate carrying amounts may not be recoverable.
Impairment may result from, among other things, deterioration in the
performance of the acquired business, adverse market conditions, adverse
changes in applicable laws or regulations, including changes that restrict the
activities of the acquired business, and a variety of other circumstances. The
amount of any impairment must be written off. We may never realize the full
value of our intangible assets. Any future determination requiring the
write-off of a significant portion of intangible assets would have an adverse
effect on our financial condition and results of operations.
Risks Related to Our Substantial Indebtedness
Our substantial
indebtedness could adversely affect our financial health, harm our ability to
react to changes to our business and prevent us from fulfilling our obligations
under our indebtedness.
We have a significant amount of indebtedness. As of May 31,
2005, after giving effect to the completion of our initial public offering and
application of the net proceeds therefrom, we would have had total debt of
approximately $1,034.0 million outstanding. Based on that level of
indebtedness and interest rates applicable at May 31, 2005, our annual
interest expense would have been $67.9 million. As a financial
institution, our cash flows are complex and interrelated and highly dependent
upon our operating performance, levels of customer activity and secured
financing activities. Our cash flows used in operating activities were
$96.4 million and $265.2 million for the three months ended May 31,
2005 and May 31, 2004, respectively. Our cash flows from operations were
$528.9 million and $391.2 million for the period from March 1,
2004 through August 5, 2004 and the period from August 6, 2004
through February 28, 2005, respectively, as compared to
$727.9 million for the year ended February 29, 2004, as earnings and
operating assets and liabilities exceeded cash and cash equivalents utilized in
investing and financing activities. Although we believe that our current cash
flows are sufficient to cover our annual interest expense for the foreseeable
future, any increase in the amount of our debt or any decline in the amount of
cash available to make interest payments could require us to divert funds
identified for other purposes for debt service and impair our liquidity
position.
Our substantial
level of indebtedness increases the possibility that we may be unable to
generate cash sufficient to pay, when due, the principal of, interest on or
other amounts due in respect of our indebtedness. Our substantial debt could
also have other significant consequences. For example, it could:
·
increase
our vulnerability to general economic downturns and adverse competitive and
industry conditions;
·
require
us to dedicate a substantial portion, if not all, of our cash flow from
operations to payments on our indebtedness, thereby reducing the availability
of our cash flow to pay dividends or fund working capital, capital expenditures
and other general corporate expenditures;
18
·
limit
our flexibility in planning for, or reacting to, changes in our business and
the industry in which we operate;
·
place
us at a competitive disadvantage compared to competitors that have less debt;
·
limit
our ability to raise additional financing on satisfactory terms or at all; and
·
adversely
impact our ability to comply with the financial and other restrictive covenants
in the agreements governing our debt instruments, which could result in an
event of default under such agreements.
Increases in interest
rates could increase interest payable under our variable rate indebtedness.
We are subject to interest
rate risk in connection with our variable rate indebtedness. Interest rate
changes could increase the amount of our interest payments and thus negatively
impact our future earnings and cash flows. We currently estimate that our
annual interest expense on our floating rate indebtedness would increase by
$6.4 million for each increase in interest rates of 1%. If we do not have
sufficient earnings, we may be required to refinance all or part of our
existing debt, sell assets, borrow more money or sell more securities, none of
which we can guarantee we will be able to do.
Despite current
indebtedness levels, we and our subsidiaries may still be able to incur
substantially more debt. This could further exacerbate the risks associated
with our substantial leverage.
We and our subsidiaries
may be able to incur substantial additional indebtedness in the future.
Although the agreements governing our debt instruments contain restrictions on
the incurrence of additional indebtedness, these restrictions are subject to a
number of qualifications and exceptions, and the indebtedness incurred in
compliance with these restrictions could be substantial. For example, we have
up to $75.0 million of borrowings available under our revolving credit
facility and have the ability to increase the aggregate amount of our term loan
under our senior credit facilities by up to $200.0 million without the
consent of any person other than the institutions agreeing to provide all or
any portion of such increase. If we incur additional debt above the levels
currently in effect, the risks associated with our substantial leverage would
increase.
To service our
indebtedness, we will require a significant amount of cash. Our ability to
generate cash depends on many factors beyond our control.
Our ability to make payments on and to refinance our
indebtedness and to fund our operations will depend on our ability to generate
cash in the future, which, to a certain extent, is subject to general economic,
financial, competitive, legislative, regulatory and other factors that are
beyond our control. Specific events that might adversely affect our cash flow
include: a default by a customer in the payment of a large margin call; losses
incurred by the clearing houses of which we are a member, which could result in
a capital call against us; a loss by us of any of the registrations or licenses
required for us to conduct business; or a permanent decline in the level of
customer business activity.
Our business may not
generate sufficient cash flow from operations, and we may be unable to make
future borrowings under our senior credit facilities or otherwise in amounts
sufficient to enable us to service our indebtedness or to fund our other
liquidity needs. If we cannot service our debt, we will have to take actions
such as reducing or delaying capital investments, selling assets, restructuring
or refinancing our debt or seeking additional equity capital. We may not be
able to effect any of these alternatives on commercially reasonable terms, or
at all. In addition, the agreements governing our debt instruments may restrict
us from adopting any of these alternatives. The implementation of these
alternatives may adversely impact our business, financial condition and
operating results.
19
We are a holding
company with no business operations of our own and depend on our subsidiaries
for cash.
We are a holding company
with no significant business operations of our own. Our business operations are
conducted through our subsidiaries. Dividends from, and cash generated by, our
subsidiaries will be our principal sources of cash to repay indebtedness, fund
operations and pay dividends. Accordingly, our ability to repay our
indebtedness, fund operations and pay dividends to our stockholders is
dependent on the earnings and the distributions of funds from our subsidiaries.
The agreements governing our debt instruments significantly restrict our
subsidiaries from paying dividends and otherwise transferring cash or other
assets to us. In addition, some of our subsidiaries are subject to minimum
regulatory capital requirements, which may limit their ability to pay dividends
or distributions or make loans to us. Furthermore, our subsidiaries are
permitted under the agreements governing our debt instruments to incur
additional indebtedness that may severely restrict or prohibit the making of
distributions, the payment of dividends or the making of loans by our
subsidiaries to us.
Restrictive
covenants in the agreements governing our debt instruments may restrict our
ability to pursue our business strategies.
The agreements
governing our debt instruments contain a number of restrictive covenants that
impose significant operating and financial restrictions on us and may limit our
ability to pursue our business strategies or engage in acts that may be in our
best interests. Our senior credit facilities include covenants restricting,
among other things, our ability to:
·
incur
or guarantee additional debt;
·
incur
liens;
·
make
loans and investments;
·
make
capital expenditures;
·
declare
or pay dividends or redeem or repurchase capital stock;
·
engage
in mergers, acquisitions and other business combinations;
·
prepay,
redeem or purchase subordinated debt;
·
amend
or otherwise alter terms of subordinated debt;
·
sell
assets and engage in sale leaseback transactions;
·
transact
with affiliates; and
·
alter
the business that we conduct.
The indenture
relating to our senior subordinated notes also contains numerous covenants
including, among other things, restrictions on our ability to:
·
incur
or guarantee additional indebtedness;
·
sell
assets;
·
declare
or pay dividends or make other equity distributions;
·
purchase
or redeem capital stock;
·
make
investments;
·
consolidate
or merge with or into other companies;
·
engage
in transactions with affiliates; and
20
·
alter
the business that we conduct.
Our senior credit
facilities also include financial covenants, including requirements that we maintain:
·
a
minimum interest coverage ratio; and
·
a
maximum leverage ratio.
These financial covenants will become more restrictive
over time.
A breach of any covenant
or the inability to comply with any required financial ratio contained in
either of the agreements governing our debt instruments could result in a
default under that agreement. If any such default occurs, the lenders under our
senior credit facilities or the holders of our senior subordinated notes, as
the case may be, may elect to declare all outstanding borrowings, together with
accrued and unpaid interest and other amounts payable thereunder, to be
immediately due and payable. In addition, a default under the indenture
governing our senior subordinated notes would cause a default under our senior
credit facilities, and the acceleration of debt under our senior credit
facilities or the failure to pay that debt when due would cause a default under
the indenture governing our senior subordinated notes. The lenders under our
senior credit facilities also have the right upon an event of default
thereunder to terminate any commitments they have to provide further
borrowings. Further, following an event of default under our senior credit
facilities, the lenders under these facilities will have the right to proceed
against the collateral granted to them to secure that debt, which includes the
available cash of our subsidiaries that guarantee our senior credit facilities,
and they will also have the right to prevent us from making debt service payments
on our senior subordinated notes. If the debt under our senior credit
facilities or our senior subordinated notes were to be accelerated, our assets
may not be sufficient to repay in full that debt or any other debt that may
become due as a result of that acceleration, which could have a material
adverse effect on the value of our common stock.
Risks Relating to Our Common Stock
Our quarterly
revenues and operating results can fluctuate substantially and be difficult to
forecast, and we may not be able to maintain historic growth rates.
Our quarterly
revenues and operating results are difficult to forecast. We may experience
substantial fluctuations in revenues and operating results from quarter to
quarter. The reasons for these fluctuations may include, but are not limited
to:
·
domestic
and international market factors that impact trading volumes or market
liquidity;
·
competition;
·
seasonal
fluctuations in our business;
·
costs
of compliance with regulatory requirements;
·
our
relationships with our significant customers;
·
our
relationships with introducing brokers;
·
changes
in personnel and management;
·
credit
risk;
·
costs
associated with protecting our intellectual property and proprietary rights;
·
the
timing of acquisitions;
·
changes
in prevailing interest rates;
21
·
systems
failures, capacity constraints or network problems;
·
general
changes to the U.S. and global economies; and
·
political
conditions or events.
Period-to-period comparisons of our operating results
are not necessarily meaningful and should not be relied upon as indications of
future performance.
Our business, revenue and
net income have grown significantly over the last several years. From fiscal
year 2000 through fiscal year 2005 our net revenue increased from
$461.0 million to $1,331.9 million and our net income grew from
$45.0 million to $176.3 million. We may not be able to maintain these
historic growth rates in future periods. In addition, our revenues may not
increase or be sustained in future periods, and we may not be profitable in any
future period. Any shortfalls in revenues or net income, or decline in growth
rates of revenues and net income, in any given period from levels expected by
securities or industry analysts could have an immediate and significant adverse
effect on the trading price of our common stock.
We expect that our
stock price will fluctuate significantly, and you may not be able to resell
your shares at or above the initial public offering price.
The trading price
of our common stock is likely to be volatile and subject to wide price
fluctuations in response to various factors, including:
·
market
conditions in the broader stock market in general, or in the financial services
industry in particular;
·
actual
or anticipated fluctuations in our quarterly financial and operating results;
·
developments
or disputes concerning our intellectual property or proprietary rights;
·
introduction
of new services by us or our competitors;
·
issuance
of new or changed securities analysts' reports or recommendations;
·
additions
or departures of key personnel;
·
regulatory
developments;
·
litigation
and governmental investigations; and
·
economic
and political conditions or events.
These and other factors
may cause the market price and demand for our common stock to fluctuate
substantially, which may limit or prevent investors from readily selling their
shares of common stock and may otherwise negatively affect the liquidity of our
common stock. In addition, in the past, when the market price of a stock has
been volatile, holders of that stock have instituted securities class action
litigation against the company that issued the stock. If any of our
stockholders brought a lawsuit against us, we could incur substantial costs
defending the lawsuit. Such a lawsuit could also divert the time and attention
of our management from our business.
If the ownership of
our common stock continues to be highly concentrated, it may prevent you and
other stockholders from influencing significant corporate decisions and may
result in conflicts of interest that could cause our stock price to decline.
We are controlled by
affiliates of Thomas H. Lee Partners, L.P. and Phillip Bennett, our President
and Chief Executive Officer. Thomas H. Lee Partners, L.P. and its affiliates
and co-investors and Phillip Bennett beneficially own or control
approximately 42.7% and 33.8%, respectively, of our common stock as
22
of
August 11, 2005. Accordingly, Thomas H. Lee Partners, L.P. and its affiliates
and co-investors and Phillip Bennett, acting as a group, will be able to
control matters that require stockholder approval, including the election of
directors, any merger, consolidation or sale of all or substantially all of our
assets or other significant corporate transactions. Our controlling
stockholders may have interests that differ from your interests and may vote in
a way with which you may disagree and which may be adverse to your interests.
Corporate action may be taken even if other stockholders, including those who
purchase shares in this offering, oppose them. These stockholders may also
delay or prevent a change of control of us, even if that a change of control
would benefit our other stockholders, which could deprive our stockholders of
the opportunity to receive a premium for their common stock. The significant
concentration of stock ownership may adversely affect the trading price of our
common stock due to investors' perception that conflicts of interest may exist
or arise.
If securities or
industry analysts do not publish research or reports about our business, if
they change their recommendations regarding our stock adversely or if our
operating results do not meet their expectations, our stock price and trading
volume could decline.
The trading market for our
common stock will be influenced by the research and reports that industry or
securities analysts publish about us or our business. If one or more of these
analysts cease coverage of our company or fail to publish reports on us
regularly, we could lose visibility in the financial markets, which in turn
could cause our stock price or trading volume to decline. Moreover, if one or
more of the analysts who cover us downgrade our stock or if our operating
results do not meet their expectations, our stock price could decline.
Future sales of
common stock may cause our stock price to fall.
After giving effect to our
initial public offering, we have 127,500,000 shares of common stock
outstanding, assuming no exercise of the underwriters' over-allotment
option in the initial public offering. Of these shares of common stock, the 26,500,000
shares of common stock sold in the initial public offering, plus any shares
issued upon exercise of the underwriters' over-allotment option, are freely
tradeable without restriction under the Securities Act, except for any such
shares that may be held or acquired by an "affiliate" of ours, as that term is
defined in Rule 144 promulgated under the Securities Act, which shares
will be subject to the volume limitations and other restrictions of Rule 144.
The remaining shares of common stock held by our existing stockholders upon
completion of our initial public offering, other than those subject to the
underwriters' over-allotment option to the extent it is exercised, will
be "restricted securities," as that phrase is defined in Rule 144, and may
not be resold, in the absence of registration under the Securities Act, except
pursuant to an exemption from such registration. In addition, following the
offering, stockholders that collectively own 101,000,000 shares of our
common stock will have registration rights with respect to their shares. After
the lock-up agreements delivered to the underwriters by our executive officers,
directors and substantially all of our stockholders expire or are terminated,
all of our additional shares may be sold in the public market, subject to legal
restrictions on transfer. At various times beginning approximately
180 days after the date of the prospectus for our initial public offering
approximately 101,000,000 million shares will become available for sale
pursuant to various exemptions from registration. Additionally, the
underwriters may release all or a portion of these shares subject to lock-up
agreements at any time prior to this 180th day. Furthermore, we may sell
additional shares of common stock in subsequent public offerings. The market
price of our common stock could decline as a result of any such sales or the
perception that these sales could occur. These sales might also make it more
difficult for us to sell equity securities at a time and price that we deem
appropriate.
23
Provisions of our
charter documents could delay or prevent an acquisition of our company, even if
the acquisition would be beneficial to our stockholders, and could make it more
difficult for you to change management.
Our certificate of
incorporation and by-laws contain provisions that could depress the
trading price of our common stock by acting to discourage, delay or prevent a
change of control of our company or changes in management that our stockholders
might deem advantageous. Specific provisions in our certificate of
incorporation includes:
·
our
ability to issue preferred stock with terms that the board of directors may
determine, without stockholder approval;
·
advance
notice requirements for stockholder proposals and nominations; and
·
limitations
on convening stockholder meetings.
As a result of the
provisions in our certificate of incorporation, the price investors may be
willing to pay in the future for shares of our common stock may be limited. In
addition, although we havel initially elected not to be subject to the
provisions of Section 203 of the Delaware General Corporation Law, which
is intended to prohibit or delay mergers or other takeover or change in control
events, we could elect to be subject to Section 203 in the future.
We do not
anticipate paying any cash dividends in the foreseeable future.
We currently intend to retain our future earnings, if
any, for the foreseeable future, to repay indebtedness and to fund the
development and growth of our business. We do not intend to pay any dividends
to holders of our common stock (other than the dividend to be paid to our
stockholders of record prior to our initial public offering with the proceeds
from the issuance of shares following any exercise of the underwriters' over-allotment
option in the initial public offering). In addition, the terms of our existing
debt agreements restrict our ability to pay dividends to our stockholders. As a
result, capital appreciation in the price of our common stock, if any, will be
your only source of gain on an investment in our common stock.
24
FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking
statements that are subject to risks and uncertainties. All statements other
than statements of historical fact included in this prospectus are forward-looking
statements. Forward-looking statements give our current expectations and
projections relating to our financial condition, results of operations, plans,
objectives, future performance and business. You can identify forward-looking
statements by the fact that they do not relate strictly to historical or
current facts. These statements may include words such as "anticipate," "estimate,"
"expect," "project," "plan," "intend," "believe" and other words and terms of
similar meaning in connection with any discussion of the timing or nature of
future operating or financial performance or other events.
These forward-looking
statements are based on assumptions that we have made in light of our industry
experience and on our perceptions of historical trends, current conditions,
expected future developments and other factors we believe are appropriate under
the circumstances. As you read and consider this prospectus, you should
understand that these statements are not guarantees of performance or results.
They involve risks, uncertainties (some of which are beyond our control) and
assumptions. Although we believe that these forward-looking statements
are based on reasonable assumptions, you should be aware that many factors
could affect our actual financial results and cause them to differ materially
from those anticipated in the forward-looking statements. These factors
include, among others:
·
changes
in domestic and international market conditions;
·
competition;
·
our
ability to attract and retain customers;
·
our
relationships with introducing brokers;
·
retention
of our management team;
·
our
ability to manage our growth or integrate future acquisitions;
·
our
exposure to significant credit risks with respect to our customers;
·
international
operations and expansion;
·
system
failures;
·
the
performance of third-party suppliers;
·
changes
in regulations or exchange membership requirements;
·
the
effectiveness of compliance and risk management methods;
·
potential
litigation or investigations;
·
employee
or introducing broker misconduct or errors;
·
reputational
harm;
·
changes
in capital requirements; and
·
the
other factors described under "Risk Factors."
There may be other factors that may cause our actual
results to differ materially from the forward-looking statements.
Because of these factors,
we caution that you should not place undue reliance on any of our forward-looking
statements. Further, any forward-looking statement speaks only as of the
date on which it is made. New risks and uncertainties arise from time to time,
and it is impossible for us to predict those
25
events
or how they may affect us. Except as required by law, we have no duty to, and
do not intend to, update or revise the forward-looking statements in this
prospectus after the date of this prospectus.
USE OF PROCEEDS
We will not receive any of
the proceeds from the sale of shares covered by this reoffer prospectus. The
selling stockholders will pay any underwriting discounts, commissions and
expenses for brokerage, or any other expenses they incur in disposing of the
shares. We will bear all other costs, fees and expenses incurred in effecting
the registration of the shares covered by this reoffer prospectus.
SELLING STOCKHOLDERS
The selling stockholders currently own 4,015,860 of
the 7,650,000 shares of our common stock registered under the registration
statement of which this prospectus is a part. Offers and sales by the selling
stockholders of these currently owned shares are covered by this prospectus. In
addition, up to 3,634,140 shares of our common stock that we may issue in the
future to participants in the Plan are being registered under the registration
statement of which this prospectus is a part. Offers and sales by selling
stockholders of any such shares issued in the future to participants in the Plan
who are our "affiliates" (as such term is defined in Rule 405 under the
Securities Act) are also covered by this prospectus.
26
The
selling stockholders are our current and future officers, directors, employees
and consultants who have received or will in the future receive shares of our
common stock under the Plan. The selling stockholders may from time to time
resell all, a portion, or none of the shares of our common stock covered by
this prospectus. The following table sets forth information as of August 11,
2005 with respect to the beneficial ownership of our common stock by each
selling stockholder whose identity is known as of the date of this prospectus
and the number of shares of our common stock held by such selling stockholder
as of the date of this prospectus that are covered by this prospectus. The
address for each executive officer, director and employee listed below is c/o
Refco Inc., One World Financial Center, 200 Liberty Street, Tower A, New York,
New York 10281.
Name
Number of
Shares
Owned Prior
to Sales
Under this
Prospectus
Number of Shares
Owned as of the Date
of this Prospectus
that May be Offered
Under this
Prospectus
Number of
Shares
Covered by
This
Prospectus
Percentage of Common
Stock Beneficially
Owned After All
Currently Owned
Shares Covered by this
Prospectus Are Resold
Executive Officers and Directors:
Phillip R.
  Bennett(1)
President, Chief Executive Officer and Chairman
43,052,157
808,363
(2
)
33.13
%
Gerald M. Sherer
Executive Vice President and Chief Financial Officer
463,509
463,509
(2
)
*
William M. Sexton
Executive Vice President and Chief Operating Officer
596,036
471,545
(2
)
*
Joseph J. Murphy
Executive Vice President; President and Chief Executive Officer of
  Refco Global Futures, LLC
533,791
471,545
(2
)
*
Santo C. Maggio
Executive Vice President; President and
Chief Executive Officer of Refco Securities, LLC
502,668
471,545
(2
)
*
Dennis A. Klejna
Executive Vice President and General Counsel
260,670
235,772
(2
)
*
Leo R. Breitman
Director
13,435
13,435
(2
)
*
Nathan Gantcher
Director
13,435
13,435
(2
)
*
Ronald L. O'Kelley
Director
13,435
13,435
(2
)
*
Employees:
Stephen Grady
168,409
168,409
(2
)
*
Joe Mazurek
101,045
101,045
(2
)
*
Tan Hup Tye
107,782
107,782
(2
)
*
Mark Slade
141,275
141,275
(2
)
*
Mike Mallahan
134,727
134,727
(2
)
*
Peter McCarthy
101,045
101,045
(2
)
*
Steve Dispenza
67,364
67,364
(2
)
*
Vera Kraker
40,418
40,418
(2
)
*
Mark Sachs
40,418
40,418
(2
)
*
Tom Mitchell
40,418
40,418
(2
)
*
Gavin Prentice
76,693
76,693
(2
)
*
Ang Peng Leong
33,682
33,682
(2
)
*
*
Less than one percent.
27
(1)
Represents
shares held by Phillip Bennett directly and indirectly through each of Refco
Group Holdings, Inc. and The Phillip R. Bennett Three Year Annuity Trust.
(2)
In addition to shares owned as of the date of this
prospectus that are covered by this prospectus set forth in the second column
opposite the names of selling stockholders in the table above, up to an
additional 3,634,140 shares of our common stock that we may issue in the future
to participants in the Plan who are our "affiliates" (as such term is defined
in Rule 405 under the Securities Act ) are covered by this prospectus. The
number of additional shares to be issued under the Plan in the future, the
identity of the recipients of such additional shares and the determination of
whether any such recipient is an affiliate of ours are subject a number of
factors that are not yet determinable.
PLAN OF DISTRIBUTION
The shares of common stock covered by this prospectus
are being registered by us for the account of the selling stockholders.
The shares of common stock offered by this prospectus
may be sold from time to time directly by or on behalf of the selling
stockholders in one or more transactions on the NYSE or on any stock exchange
on which the common stock may be listed at the time of sale, in privately
negotiated transactions, or through a combination of these methods. The selling
stockholders may sell shares through one or more agents, brokers or dealers or
directly to purchasers. These brokers or dealers may receive compensation in
the form of commissions, discounts or concessions from the selling stockholders
and/or purchasers of the shares, or both. Compensation as to a particular
broker or dealer may be in excess of customary commissions. The selling
stockholders will act independently of us in making decisions with respect to
the timing, manner and size of each sale or non-sale related transfer. If a
selling stockholder is an employee, officer or director of the Company, he or
she will be subject to the Company's policies concerning trading and other
transactions in the Company's securities.
The number of shares to be offered or resold under
this prospectus by each selling stockholder or other person with whom he or she
is acting in concert for the purpose of selling our shares, may not exceed,
during any three month period, the amount specified in Rule 144(e) under
the Securities Act.
The shares of
common stock may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at prices related to the
prevailing market prices, at varying prices determined at the time of sale or
at negotiated prices. These sales may be effected in one or more transactions,
which may involve crosses or block transactions, including:
·
on
the NYSE;
·
in
the over-the-counter market;
·
in
transactions otherwise than on the NYSE or in the over-the-counter market;
·
through
the writing of options (including the issuance by the selling stockholders of
derivative securities), whether the options or these other derivative
securities are listed on an options or other exchange or otherwise;
·
through
the settlement of short sales; or
·
any
combination of the foregoing.
In connection with the sale of shares, the selling
stockholders may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the shares
in the course of hedging the positions they assume. The selling stockholders
may also sell the shares short and deliver these shares to close out short positions,
or loan or pledge the shares to broker-dealers or other financial institutions
that in turn may sell these shares. The selling stockholders may also enter
into option or other transactions with broker-dealers or other financial
institutions that require the delivery to the
28
broker-dealer or other
financial institution of the shares, which the broker-dealer or other financial
institution may resell pursuant to this prospectus, or enter into transactions
in which a broker-dealer makes purchases as a principal for resale for its own
account or through other types of transactions.
In connection with their sales, a selling stockholder
and any participating broker or dealer may be deemed to be "underwriters"
within the meaning of the Securities Act, and any commissions they receive and
the proceeds of any sale of shares may be deemed to be underwriting discounts
or commissions under the Securities Act. A selling stockholder who is deemed to
be an "underwriter" within the meaning of Section 2(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities
Act. The selling stockholders and any other person participating in such
distribution will be subject to applicable provisions of the Exchange Act and
the rules and regulations thereunder, including, without limitation,
Regulation M. Regulation M may limit the timing of purchases and sales of
shares of our common stock by the selling stockholders and any other person.
Furthermore, Regulation M may restrict, for a period of up to five
business days prior to the commencement of the distribution, the ability of any
person engaged in a distribution of shares of our common stock to engage in
market-making activities with respect to these shares. All of the foregoing may
affect the marketability of shares of our common stock and the ability of any
person or entity to engage in market-making activities with respect to shares
of our common stock.
To the extent required, the shares to be sold, the
names of the persons selling the shares, the respective purchase prices and
public offering prices, the names of any agent, dealer or underwriter and any
applicable commissions or discounts with respect to a particular offer will be
set forth in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement of which this prospectus
is a part.
We are bearing all of the fees and expenses relating
to the registration of the shares of common stock. Any underwriting discounts,
commissions or other fees payable to broker-dealers or agents in connection
with any sale of the shares will be borne by the selling stockholders. In order
to comply with certain states' securities laws, if applicable, the shares may
be sold in such jurisdictions only through registered or licensed brokers or
dealers. In certain states, the shares may not be sold unless the shares have
been registered or qualified for sale in such state, or unless an exemption
from registration or qualification is available and is obtained and complied
with. Sales of the shares must also be made by the selling stockholders in
compliance with all other applicable state securities laws and regulations.
In addition to any shares sold hereunder, selling
stockholders may sell shares of common stock in compliance with Rule 144.
There is no assurance that the selling stockholders will sell all or a portion
of the stock being offered hereby.
The selling stockholders may agree to indemnify any
broker-dealer or agent that participates in transactions involving sales of the
shares against certain liabilities in connection with the offering of the
shares arising under the Securities Act.
We have notified the
selling stockholders of the need to deliver a copy of this prospectus in
connection with any sale of the shares.
LEGAL MATTERS
Weil, Gotshal &
Manges LLP, New York, New York will pass upon the validity of the common stock
offered hereby. Certain partners of Weil, Gotshal & Manges LLP have
indirect ownership interests, totaling less than 0.01% in us.
29
EXPERTS
The New Refco Group Ltd., LLC (the Successor)
consolidated balance sheet as of February 28, 2005 and the related
consolidated statements of income, changes in members' equity and cash flows
for the period from August 6, 2004 through February 28, 2005 and
Refco Group Ltd., LLC (the Predecessor) consolidated balance sheet as of February 29,
2004 and the related consolidated statements of income, changes in members'
equity and cash flows for the period from March 1, 2004 through August 5,
2004 and for the years ended February 29, 2004 and February 28, 2003
and schedules incorporated by reference into this registration statement have
been audited by Grant Thornton LLP, independent registered public accountants,
as stated in their reports with respect thereto, and is incorporated by
reference herein in reliance upon the authority of said firm as experts in
accounting and auditing.
30
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.
Incorporation
of Documents by Reference.
The Company hereby
incorporates by reference into this Registration Statement the following
documents previously filed with the SEC:
·
The
Company's prospectus filed with the SEC on August 11, 2005 pursuant to Rule 424(b) under
the Securities Act; and
·
The
description of the Company's Common Stock contained in the Company's
Registration Statement on Form S-1 under the Securities Act (Reg. No. 333-123969),
which description is incorporated by reference into the Form 8-A
filed with the SEC on August 11, 2005 pursuant to the Exchange Act, and any
amendment or report filed for the purpose of further updating such description.
All documents subsequently
filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of
the Exchange Act, prior to the filing of a post-effective amendment which
indicates that all securities offered hereby have been sold or which
deregisters all securities then remaining unsold, shall be deemed to be
incorporated by reference herein and to be a part hereof from the date of the
filing of such documents.
Item 4.
Description
of Securities.
Not applicable.
Item 5.
Interests
of Named Experts and Counsel.
Certain partners of Weil,
Gotshal & Manges LLP have indirect ownership interests, totaling less
than 0.01%, in us.
Item 6.
Indemnification
of Directors and Officers.
Section 145 of the Delaware General Corporation
Law ("Section 145") permits indemnification of our officers and directors
under certain conditions and subject to certain limitations. Section 145
also provides that a corporation has the power to maintain insurance on behalf
of its officers and directors against any liability asserted against such
person and incurred by him or her in such capacity, or arising out of his or
her status as such, whether or not the corporation would have the power to
indemnify him or her against such liability under the provisions of Section 145.
Article Sixth of the Registrant's Certificate of
Incorporation provides for mandatory indemnification of its directors and
officers and permissible indemnification of employees and other agents to the
maximum extent not prohibited by the Delaware General Corporation Law. The
rights to indemnity thereunder continue as to a person who has ceased to be a
director, officer, employee or agent and inure to the benefit of the heirs,
executors and administrators of the person. In addition, expenses incurred by a
director or executive officer in defending any civil, criminal, administrative
or investigative action, suit or proceeding by reason of the fact that he or
she is or was a director or officer of the Registrant (or was serving at the
Registrant's request as a director or officer of another corporation) shall be
paid by the Registrant in advance of the final disposition of such action, suit
or proceeding upon receipt of an undertaking by or on behalf of such director
or officer to repay such amount if it shall ultimately be determined that he or
she is not entitled to be indemnified by the Registrant as authorized by the
relevant section of the Delaware General Corporation Law.
II-
1
As permitted by Section 102(b)(7) of the
Delaware General Corporation Law, the Registrant's Certificate of Incorporation
provides that, pursuant to Delaware law, its directors shall not be personally
liable for monetary damages for breach of the directors' fiduciary duty as
directors to the Registrant and its stockholders. This provision in the
Certificate of Incorporation does not eliminate the directors' fiduciary duty,
and in appropriate circumstances equitable remedies such as injunctive or other
forms of non-monetary relief will remain available under Delaware law. In
addition, pursuant to Section 102(b)(7) of the Delaware General
Corporation Law each director will continue to be subject to liability for
breach of the director's duty of loyalty to the Registrant for acts or omission
not in good faith or involving international misconduct, for knowing violations
of law, for actions leading to improper personal benefit to the director, and
for payment of dividends or approval of Stock repurchases or redemptions that
are unlawful under Section 174 of the Delaware General Corporation Law.
The provision also does not affect a director's responsibilities under any
other law, such as the federal securities laws or state or federal
environmental laws.
The Registrant has entered into indemnification
agreements with each of its directors and executive officers. Generally, the
indemnification agreements attempt to provide the maximum protection permitted
by Delaware law as it may be amended from time to time. Moreover, the
indemnification agreements provide for certain additional indemnification.
Under such additional indemnification provisions, however, an individual will
not receive indemnification for judgments, settlements or expenses if he or she
is found liable to the Registrant (except to the extent the court determines he
or she is fairly and reasonably entitled to indemnity for expenses), for
settlements not approved by the Registrant or for settlements and expenses if
the settlement is not approved by the court. The indemnification agreements
provide for the Registrant to advance to the individual any and all reasonable
expenses (including legal fees and expenses) incurred in investigating or
defending any such action, suit or proceeding. In order to receive an advance
of expenses, the individual must submit to the Registrant copies of invoices
presented to him or her for such expenses. Also, the individual must repay such
advances upon a final judicial decision that he or she is not entitled to
indemnification.
The Registrant intends to enter into additional
indemnification agreements with each of its directors and executive officers to
effectuate these indemnity provisions and to purchase directors' and officers'
liability insurance.
At present, there is no pending litigation or
proceeding involving a director, officer, employee or other agent of the
Registrant in which indemnification is being sought, nor is the Registrant
aware of any threatened litigation that may result in a claim for
indemnification by any director, officer, employee or other agent of the
Registrant.
Section 102 of the Delaware General Corporation
Law, or DGCL, as amended, allows a corporation to eliminate the personal
liability of directors of a corporation to the corporation or its stockholders
for monetary damages for breach of fiduciary duty as a director, except where
the director breached the duty of loyalty, failed to act in good faith, engaged
in intentional misconduct or knowingly violated a law, authorized the payment
of a dividend or approved a stock repurchase in violation of the DGCL or
obtained an improper personal benefit.
Generally, Section 145 of the General Corporation
Law of the State of Delaware permits a corporation to indemnify certain persons
made a party to an action, by reason of the fact that such person is or was a
director, officer, employee or agent of the corporation or is or was serving at
the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise. In
the case of an action by or in the right of the corporation, no indemnification
may be made in respect of any matter as to which that person was adjudged
liable to the corporation unless the Delaware Court of Chancery or the court in
which the action was brought determines that despite the adjudication of
liability that person is fairly and reasonably entitled to indemnity for proper
expenses. To
II-
2
the extent that person has
been successful in the defense of any matter, that person shall be indemnified
against expenses actually and reasonably incurred by him.
The Registrant maintains
insurance policies insuring each of its directors and officers against certain
civil liabilities, including liabilities under the Securities Act.
Item 7.
Exemption
from Registration Claimed.
The 4,015,860 restricted
shares of our common stock issued prior to the filing of this Registration
Statement that are "restricted securities" (as such term is defined in Rule 144(a)(3) under
the Securities Act) that are being registered for reoffer and resale under this
Registration Statement were issued pursuant to written compensation contracts
in transactions exempt from registration under Rule 701 under the
Securities Act.
Item 8.
Exhibits.
Exhibit No.
Description
4.1
—
Refco Inc. 2005 Stock
  Incentive Plan (incorporated by reference to Exhibit 10.29 to Amendment No. 3
  to the Registrant's Registration Statement (Registration No. 333-123969)
  on Form S-1, filed on July 20, 2005).
5.1
—
Legal
  Opinion of Weil, Gotshal & Manges LLP (filed herewith).
23.1
—
Consent
  of Weil, Gotshal & Manges LLP (included in Exhibit No. 5.1).
23.2
—
Consent
  of Independent Registered Public Accounting Firm (Grant Thornton LLP) (filed
  herewith).
24.1
—
Power
  of Attorney (included as part of the signature page to this Registration
  Statement and incorporated herein by reference).
Item 9.
Undertakings.
(a)   The
undersigned Registrant hereby undertakes:
(1)
to
file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement;
(i)
to include any prospectus required by
  Section 10(a)(3) of the Securities Act of 1933;
(ii)
to reflect in the
  prospectus any facts or events arising after the effective date of the
  Registration Statement (or the most recent post-effective amendment thereof)
  which, individually or in the aggregate, represent a fundamental change in
  the information set forth in the Registration Statement; and
(iii)
to include any material
  information with respect to the plan of distribution not previously disclosed
  in the Registration Statement or any material change to such information in
  the Registration Statement;
II-
3
provided
,
however
,
that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the
information required to be included in a post-effective amendment by the
foregoing paragraphs is contained in periodic reports filed with or furnished
to the Securities and Exchange Commission by the Registrant pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the Registration Statement.
(2)
That, for the purpose of
determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new Registration Statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial
bona
fide
offering thereof.
(3)
To remove from
registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.
(b)   The undersigned Registrant hereby undertakes
that, for purposes of determining any liability under the Securities Act of
1933, each filing of the Registrant's annual report pursuant to Section 13(a) or
Section 15(d) of the Securities Exchange Act of 1934 that is
incorporated by reference in the Registration Statement shall be deemed to be a
new Registration Statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona
fide
offering
thereof.
(c)   Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against
public policy as expressed in the Securities Act of 1933 and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in the successful
defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act of 1933 and will be
governed by the final adjudication of such issue.
II-
4
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the city of New York, state of New York, on this 12th day of
August, 2005.
REFCO INC
.
By:
/s/ PHILLIP R. BENNETT
Phillip Bennett
President, Chief Executive Officer and Chairman
POWER
OF ATTORNEY
The undersigned directors
and officers hereby constitute and appoint Phillip R. Bennett and Gerald M.
Sherer and each of them with full power to act and with full power of
substitution and resubstitution, our true and lawful attorney-in-fact with full
power to execute in our name and behalf in the capacities indicated below this
Registration Statement on Form S-8 and any and all amendments thereto,
including post-effective amendments to this Registration Statement on Form S-8,
and to sign any and all additional registration statements relating to the same
offering of securities as this Registration Statement on Form S-8 that are
filed pursuant to the requirements of the Securities Act of 1933, and to file
the same, with all exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission and hereby ratify and
confirm that such attorney-in fact or his substitute shall lawfully do or cause
to be done by virtue thereof.
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
indicated.
Signature
Title
Date
/s/ PHILLIP R. BENNETT
President, Chief Executive Officer and
August 12, 2005
Phillip R.
  Bennett
Chairman
(Principal Executive Officer)
/s/
  GERALD M. SHERER
Chief Financial Officer
August 12, 2005
Gerald M. Sherer
(Principal Financial and Accounting Officer)
/s/
  LEO R. BREITMAN
Director
August 12, 2005
Leo R. Breitman
/s/
  NATHAN GRANTCHER
Director
August 12, 2005
Nathan Grantcher
/s/
  DAVID V. HARKINS
Director
August 12, 2005
David V. Harkins
/s/
  SCOTT L. JAECKEL
Director
August 12, 2005
Scott L. Jaeckel
/s/
  THOMAS H. LEE
Director
August 12, 2005
Thomas H. Lee
/s/
  RONALD O'KELLEY
Director
August 12, 2005
Ronald O'Kelley
/s/
  SCOTT A. SCHOEN
Director
August 12, 2005
Scott A. Schoen
S-
1
EXHIBIT INDEX
Exhibit No.
Description
4.1
—
Form of Refco Inc. 2005 Stock Incentive Plan (incorporated
  by reference to Exhibit 10.29 to Amendment No. 3 to the Registrant's
  Registration No. 333-123969 on Form S-1, filed on July 20, 2005).
5.1
—
Legal Opinion of Weil,
  Gotshal & Manges LLP (filed herewith).
23.1
—
Consent of Weil, Gotshal
  & Manges LLP (included in Exhibit No. 5.1).
23.2
—
Consent of Independent
  Registered Public Accounting Firm (Grant Thornton LLP) (filed herewith).
24.1
—
Power of Attorney
  (included as part of the signature page to this Registration Statement and
  incorporated herein by reference).