Global Tudor Client Book

LEHMAN BROTHERS Equity Account Management

Customer Account Profile Report

TUDOR INVMNT CORP USA M006133

General Information

Client Overview

Client Brief Description Founded in 1980 by Paul Tudor Jones II - 9 Funds investing in Global Equity, Currency, Fixed Income and Commodities

OVERVIEW OF CLIENT

Location US (Greenwich, Boston) and UK (London / Epsom)

AUM - EquitiesII Vote / Weight Yes

Key Investment Strategies Multi-Strategy (Global Eq/ Fundamental; EMG / Commodities / Event-Driven)

AUM - Global $11.7 bn - $3.8bn Tudor BVI; $6bn Raptor

Tiering Information

Capital Markets SRM Steve Lessing / Xavier Rolet US SRM -

European SRM Mark Rutherford Execution Services Team John Candillier / Bernie Blaney

Global Prime

Global Prime

Franchise Futures

Product $ Opportunity

Opportunity Summary

Rational/Investment RequiredConnectivity $250K LMX/DTM in the US and Europe

Listed Options TBD Need to re-establish relationship in Europe

Stat Arb $500K Business continues to grow nicely. Opportunity to win EU business

Relative Value $200K Chris Gate has been awarded mandate to increase his capital 2 - 3 times

ETFs TBD Continue to provide information around ETF and Program flows

Cash PB $250K Continue to build balances in the US and Europe

AS Execution Services TBD Tudor pushing into Asia

Volatility $1.0 million We were in the penalty box for two months - goal to still meet initial budget

US Execution Services $250K Small Cap business (Listed and NASDAQ) from Witches Rock

Confidential - For internal use only Review Date 17 May 2005

TUDOR INVMNT CORP USA M006133II Vote / Weight Yes

Commission PoolKey Brokers / Counterparties Morgan Stanley

Client Ranking of Lehman Top 3

CEO Paul Tudor Jones

KEY PERSONNEL + RELATIONSHIP RANKING (1=New, 5=Outstanding)

CIO Paul Tudor Jones (BVI) / Jim Pallotta (Raptor)

Head of Equities Tom Bannatyne (Head of European Equities)

Head of Trading Mark Forziati / Colin Rogers

CFO John Torrell

President Mark Dalton

Head of Research Rob Marsh

Head PM's Paul Tudor Jones II (Founder / Chairman) / Steve Evens (CIO - Head of Quant Strategies) / Jim Palotta (Raptor/Witches Rock) / Chris Gate (Risk Arb)

Head of Technology

5

RANK

5

5

4

5

5

4

5

5

Lehman Ranking of Client Top 3

Other Key Relationships Peter Drittel (Head of EMG Mrkts) / John McFarland (COO) / Harry Nudelman (Raptor) / Bill Flaherty (CFO - Raptor) / Mike Stansky (Raptor) 5

Business Overview

General Comments1. Founded in 1980 by Paul Tudor Jones II – the firm currently manages $11.7bn (as of May 1st 2005) and is involved in active trading, investing and research in Global Equity, Currency, Fixed Income and Commodity Markets.2. Tudor has approx 316 employees in 8 office locations (including trading offices in Greenwich and Boston in the US; Epsom and London in the UK and Singapore in Asia). 3. Tudor continued its Asian expansion with the opening of an office in Singapore and plans for an Australian office in early 2005. 4. Tudor hired Julian Reis and Ian Emmett as Co-Heads of Tudor Capital Singapore. The primary focus for the firms expansion in Asia will be on Fixed Income and Foreign Exchange, but its goal is to build a multi-strategy and multi-asset platform that will compliment its operations in the US and UK. It has just hired a long-short equity trading specialist from Oaktree, who will be moving to Singapore in June 2005. Tudor hope to hire 50-75 people in its Singapore office in three years and another 10-25 each in satellite offices in Mumbai, Shanghai and perhaps Hong Kong.4. Tudor manages 3 funds:- BVI Global Fund run by Paul Tudor Jones out of Greenwich (inc Global Macro, Equities, EMG, Currency, Indes Futures etc) – Tom Bannatyne runs the European Equities element (Chairman of Tudor Europe).- Raptor Global fund run by Jim Pallotta out of Boston (Equities)- Witches Rock fund (Small-Cap Equities) also run by Palotta and launched at the end of 2004 with $500mn AUM- We also deal with TPT (Tudor Proprietary Trading) which runs along-side the funds.5. Since inception in 1985, Tudor’s flagship fund, Tudor BVI, has generated annualised returns of just over 25% and has never had a year of negative return, according to investors. Last year, it generated more than 10% for its clients.6. In May 2004 - Lehman won the PB mandate for the Raptor fund after a 2 year effort. Previously MSDW had been Raptors sole PB7. In general Lehman is well aligned within the Equities Division across Tudor's various businesses and geographies and continues to maintain top 3 counterparty. Steve Lessing and Xavier Rolet also have solid relationships with Tudor management.Tudor are likely to move to a cross product commission payout structure. Top 3 brokers are paid approx the same. It is expected they will cut the tail further – which will create further upside.



McLagan

$13,897,553 $637,332 $1,824,990 13.13% 2 $14,526,885 $1,662,912US OTC /NASDAQ TOTAL$31,894,319 $1,372,912 $3,298,297 10.34% 2 $39,203,148 $3,666,037US LISTED COMMS (SOFT) + OTC/NASDAQ

$0 $0 $3,450 .00% 0 $0 $0US AGENCY PROGRAM TRADING

$17,996,766 $744,865 $1,473,307 8.19% 2 $24,676,263 $1,473,307US LISTED COMMISSIONS (SOFT)

$32,723,203 $1,372,912 $3,301,747 10.09% 3 $39,205,929 $3,666,037US LISTED COMMS(SOFT)+OTC+PROGRAMS$4,148,768 $396,354 $170,801 4.12% 10 $7,067,042 $450,869 NEW ISSUES - ORDS, ADRs/GDRs, CVs

$0 $0 $0 .00% 0 $149,083 $5,000CONVERTIBLES RELATED - SECONDARY$1,516,488 $138,090 $138,090 9.11% 5 $1,895,269 $77,200

12M04 Total

12M04 Firm #5

12M04 Lehman

12M04 Mkt Shr.

12M04 Rank

12M03 Total

12M03 Lehman PRODUCT

11.45% 1

9.35% 2

0.00% 0

8.12% 2

9.35% 2

6.38% 6

3.35% 6

4.07% 8

12M03 Mkt Shr.

12M03 Rank

ADRs / GDRs - COMMS CREDITS

$0 $0 $0 .0% 0 $0 $0NON-US AGENCY PROGRAM TRADING$9,325,432 $1,180,956 $64,647 .69% 14 $8,882,942 $56,313NON-US ORDINARY SHARES(SOFT)+PROGRAMS$1,873,625 $0 $615,088 32.83% 2 $0 $62,733LISTED EQUITY INDEX FUTURES

$9,318,658 $1,180,956 $64,647 .63% 14 $8,881,282 $56,313NON-US ORDINARY SHARES (SOFT)

$2,401,853 $154,924 $103,894 4.3% 6 $6,885,772 $498,042LISTED OPTIONS RELATED $12,267,113 $1,521,972 $2,251,588 18.35% 2 $6,721,033 $699,850ETFs$60,111,206 $3,790,605 $6,475,054 10.77% 2 $65,487,551 $5,065,175TOTAL EXCLUDING NEW ISSUES$64,259,974 $4,200,302 $6,645,855 10.34% 2 $72,554,593 $5,516,044

0.00% 0

0.63% 14

0.00% 0

0.63% 14

7.23% 6

10.41% 5

7.73% 5

7.60% 4TOTAL ABOVE EQUITY BUSINESS

YTD Production as of: Monday, May 16, 2005

Global Equity Production

517YTDAnn'dFY04

1,290

2,778

390

973

1,390

0

0

10

218

544

1,485

0

0

2

90

225

1,100

50

124

4

340

848

2,460

3

7

274

909

2,268

2,046

1,032

2,574

648

0

0

0

3,808

9,500

13,151

US Cash Europe Cash

Asia CashProgs

Convertibles

Relative Value Stat Arb ETFs

Listed Options

Other Derivs

Prime Broker

Yield Enhan't

Second. Total $

647

1,613

796

NI Total

% Var -54% -30% -63% -80% 3066% -66% -97% 11% 297% -28% 103%

4,454

11,114

13,947

Equities Total

-20%

228

570

696

Futures

-18%

23% YTD PY Gross-53% NetUS Cash Loss Ratio Margins

31

77

256

Soft $

-70%

Commission DriversResearch 20 Sales 20 Execution 40Mgmt Contact 20

6,017 13,967 15,106 58 -8%

Total FID Product 2005 YTD Ann Total FID Rank 2005 YTD Ann Total FID Product 2004 YTD Total FID Rank 2004 FY Percentage Change

Global FID Production



Vote Results

Resource Allocation

4 0

0

0 0 125 0 0 0 Analyst Visits

SECTOR

0 0 3 012 0 1

Period Total Aero +Defence Autos Banks Biotech

Pharma

Chemicals ConsumerStaples

HealthcareServices

4 1 0 0 1

0 1

1 Analyst Visits

SECTOR

1 0 0 0 0

0

0

3

1

Period

Insurance

TechSoftware

Macro

Media MedicalSupplies Oils Retail Semis +

Hardware Telecoms TelecomsEquipment OtherUtilities

BusinessServices

20042005

00

Leisure

00

Transport

20042005

11

PLEASE NOTE: ALL Analyst Visits include Conference Calls

0

4

0

0

Basic +Industrials

Reits

0

11

6

0

1--

0 0 0 0 336 0 0 0 Company Contact

2 2 0 022 0 20 00 1

10

20042005

70 00

1 5 3 3 2 13 Company Contact

2 4 3 3 10020042005

01

30

00

30

11

--

YTD Analyst and Company Contact

Account Contact - US Resources Only

CASH COMMISSION ALLOCATION VOTEOverall

No Formal Vote

Vote Month Sales Research TradingUS OtherPeriodCurrent

Previous

22 0 22 142 57 5 62 126

9 15 24 44 27 55 45

15 0 15 119 34 0 34 79

0 5 5 99 0 1 1 426

Analyst Visists

Company Marketing

Conference 1:1's

Industry Events

1:1's Group Total Rank 1:1's Group Total RankYear to Date 2005 Full Year 2004

Total

Meeting Type

426

49 21 70 91 129 44 173 73

3 1 4 0 10 11 21 0Deal Roadshows



Product Matrix

RANK TIER

Global Prime

Global Prime

Global Prime

PRODUCTS TRADED

PROGRAMSSTAT ARBTRANSITION MGMTCONVERTIBLES

PAN EUROPE CASH

US CASH

JAPAN CASHASIA CASH

LB

OTHER DERIVATIVES

LISTED OPTIONS

ETFs

RELATIVE VALUEYIELD ENHANCEMENTEQUITY FINANCE

SYNTHETIC PBCASH PB

CONNECTIVITY

FID / FX

Tier 3

Tiered

Super League

Prime

SNR COVERAGE

M. Towend / A. Bowden / John Candillier

Tom Kurtz / Jared Demark / Arjan Kraan / Chip Levroni

Keith PageRon Gold / Paul MeyerChip Leveroni / Adam Toms / Emad MorrarChip Leveroni / Bevin Okay / Jeff Zorek

M. Coakley / Dave SpositoDave Schlageter / Chip Leveroni / Daniel Goldstein / David Bromley

Dave Schlageter / Chip Leveroni / John CandillierDave Schlageter / Chip Leveroni / Daniel Goldstein / David BromleyIan Davey / Chip Leveroni

Alan Pace / Bevin Okay / Anthony Demonte / Katie Gillham

Alan Pace / Bevin Okay / Jeff ZorekAlan Pace / Anthony Demonte / Katie Gillham / Brian Bisesi / Matthew PinnockAri Gellman / Sally Cockett

Canice Hogan / Grant Whiteside

CLIENT CONTACT

T. Bannatyne / G. Boyle / Colin Rogers

Jim Palotta, Harry Nudelman, Mike Stansky, Bill Flaherty, Mark Forziati, Steve Evans, Alex Zecca, Sofie Kimball, Josh McInerney

Bruce BoltonAshwin Ranganathan / Shayon Chatterdee / Susan DewhurstColin Rogers / Steve EvansSteve Evans / Ulrike Hoffman / Laurens Leerink

Steve DrewMark Forziati, Alex Zecca, Sofie Kimball, Josh McInerney, Colin Rogers

Colin Rogers / Kevin Cook / Allison AikmanMark Forziati, Alex Zecca, Sofie Kimball, Josh McInerney

C. Gate / L. Lynch / M. Ali

C. Otto / G. Thompson / I Colquhoun / S. Easten / D. McCrossenSteve Evans / Chris Gate

C. Rogers

Various

FUTURES Tiered Dave Schlageter / Chip Leveroni / Tom Small C. Rogers / P.T. Jones / P. Drittel / Rob Marsh

SOFT $ Jon Giblin Bill FlahertyPRIVATE EQUITY Michael Carter / Jamie Fagan Robert Forlenza / Rick Ganong

Date Lehman Attendee Client Attendee

Recent Management Meetings

Subject1/18/2005 Steve Lessing, Dick Fuld Mark Dalton, John MacFarlane - Tudor Senior Management Meeting

12/1/2004 Fitzgerald, McMahon, Lessing, Brill, Canton John Torell, John MacFarlane, Wade Schwartz Senior Management Meeting

9/28/2004 Steve Lessing Mark Dalton Senior Management Meeting

9/13/2004 Jim Rosenthal, Steve Lessing John MacFarlane - Tudor Senior Management Meeting

6/9/2004 Steve Lessing John MacFarlane - Tudor Senior Management Meeting

5/11/2004 Alan Pace, Steve Lessing Tudor Senior Management Meeting



X

Action Items Product Action Item Owner Due DateConnectivity Monitor further connectivity opportunities around Execution Services John Lowrey Jun-04

Futures Explore Futures opportunity with Clive Stevens / Mark Hilary / Other PMs Adrian Valenzuela Jun-04

Programs / Quant Monitor Programs / DMA opportunity with Steve Evans Quant Group in the US Morrar Oct-04

Convertibles Monitor Convertibles Opportunity amid rumours they may be starting a CB fund Coakley / Cunningham Nov-04


Opportunity Matrix

RELATIONSHIP STATUS OPPORTUNITY ISSUES/ACTIONPRODUCT


EUR EXECUTION SERVICES

US EXECUTION SERVICES

Europe Research Sales - Mike Townend is the Account Manager and covers Tom Bannatyne (Chairman of Tudor Europe – Partner) and Gavin Boyle. Lehman ranked as Top 1 or 2 broker with an excellent relationship – no formal voting system. Tudor votes in II. We also have a good ECM relationship with the account – they have contact with Duncan Smith and are active in Primary. Europe PMs are allocated capital to run. They can employ a lot of leverage. We expect they are running $1-2bn. The number of PMs in Europe has grown (Jim Mills and David Ball are new analysts/PMs that running pools of money). Alex Bowden has been introduced to them in order to widen out coverage.

Europe Cash Sales Trading -

John Candillier covers Colin Rogers (Head of Trading in Europe - Partner). Risk Usage 20% and Loss Ratio -18% as of March 2005. They pay 20bps and are Tier 2 for IOIs. Tudor is also set up for Auto-fill. The traders at Tudor have met with our Consumer traders in London to further solidify the general consumer sector relationship.

Jim Palotta runs the Raptor Fund and the Witches Rock Fund out of Boston, and has two partners under him, Mike Stansky and Harry Nudelman. They have a team of analysts working under them, who are sectorized. They have appx. $5 billion in AUM, and have been growing organically through performance gains.

Chip Leveroni and Arjan Kraan cover the traders in Boston. Mark Forziati is the head trader along with Alex Zecca, Sofie Kimball, and Josh McInerney. The traders do not have any sector or cap responsibility.

They are not as active trading as they have been in the past. They are up to $5 bn, and have focused on taking more concentrated, longer term positions to drive performance

The new ($500m) Witches Rock fund focuses on mid and small cap names, and has provided some incremental Small Cap (Listed & NASDAQ) opportunity.

Tudor are also looking for access to consultants/proprietary relationships.

They would like to develop relationships with strategy.

In addition show them cost efficient ways to execute and model the trade list.

Mainly maintenance strategy.

Oppty is to continue to recover the business we lost.

The new Witches Rock fund should provide some incremental Small Cap (Listed & NASDAQ) opportunity

Lehman was in the penalty box for two months earlier this year.

Opportunity Matrix



PROGRAMS

STAT ARB

JAPAN EXECUTION SERV

ASIA EXECUTION SERV

Adam Toms and Emad Morrar covering Colin Rogers (UK) and Steve Evans (US) – strong relationship.

Colin Rogers uses Programs for exit strategies and we appear to be their preferred partner. They have access to and use WebBench. All Agency business.

The stat arb team trades programs into LPS in the US market and recently re-engaged Tudor in the Japanese market

Introducing them to our Banks traders.

Chip Leveroni, Jeff Zorek and Bevin Okay cover the quant team under Steve Evans in Connecticut. They are currently trading US and Japan from Greenwich via guaranteed VWAP programs into LPS

Europe – Emad Morrar discussed opportunity with Steve Evans (US). We re-priced the European business and pricing proposal was accepted – these programs orders are from Tudor US but routed via Tudor Europe. They

Keith Page covers Tudor from Tokyo, and we currently get very little business. He speaks to their night trader (Bruce Bolton) who gives almost all of his business to UBS.

Keith occasionally speas to Rob Marsh who runs their flow model for Japan

Tudor has recently opened an office in Singapore and has plans for an office in Australia

Tudor hired Julian Reis and Ian Emmett as Co-Heads of Tudor Capital Singapore. The primary focus for the firms expansion in Asia will be on Fixed Income and Foreign Exchange, but its goal is to build a multi-strategy and multi-asset platform that will compliment its operations in the US and UK. It has just hired a long-short equity trading specialist from Oaktree, who will be moving to Singapore in June 2005. Tudor hope to hire 50-75 people in its Singapore office in three years and another 10-25 each in satellite offices in Mumbai, Shanghai and perhaps Hong Kong.

We have yet to see any business from Tudor Asia.

They are growing in size very nicely, and Lehman is well positioned.

European trading forthcoming in the future

Tudor is pushing heavily into Asia having recently opened a Singapore office and planning an Australian office.

Opportunity Matrix



LISTED OPTIONS

CONVERTIBLES

TRANSITION MGMT

ETFs

OTHER DERIVS

Europe - Adrian Valenzuela and Andrew Caplan were covering the account – they have now left and Daniel Goldstein and David Bromley have taken over coverage (Transition stage)

Covering Colin Rogers, Paul Tudor Jones, Peter Drittel (Head of EMG) and Rob Marsh (Head of Research – Europe). In 2004 we won their European Sector trading business out of the US (Flow of Funds Macro team). Adrian and Andrew had a good relationship across Greenwich office – PMs including flow of funds team and Paul Tudor Jones’s desk.Trading (mainly listed) Options and Futures and sector swaps with Colin Rogers – Daniel Goldstein and David Bromley are planning to meet Colin to establish their street pools, frequency of their trading and their requirements from Lehman. Business currently has been infrequent and sporadic.

Europe - Mike Coakley’s contact is Steve Drew. Tudor are not very active in Convertibles. Occasional NI allocations

are now trading US and Japan regularly (Gtd VWAP) and will initiate European trading shortly – they are currently conducting European research before commencing trading.

Jeff Mann covers Kevin Cook and Allison Aikman in Greenwich. They trade a lot of ETF’s, some OTC Swaps ($50K), and a few futures.

The Boston team covered by Dave Schlageter trades an occasional ETF

The Boston traders are covered by Dave Schlageter and the Greenwich team is split between Chip Leveroni and Jeff Mann

Europe - Need to re-establish relationship.

There have been rumours that they may be starting a hedge fund.

They utilize intelligence around our flows, which we send them daily. They have told us they will pay for this insight. We are still not quite where they want around the level detail

Opportunity to get more business by building more personal relationships with the guys in Boston.

FUTURES US - The Boston team trades a lot of index futures. The Greenwich team is starting to trade e-mini's more actively in the US.

Europe - Trade a small amount of listed futures with Peter Drittel (once every couple of weeks). Business has been lighter since Adrian’s departure. (Tom Small at Lehman executing business).

Want to try and win Futures Execution business in the UK (Clive Stevens / Mark Hilary), however they are very loyal to their current preferred brokers.

Opportunity Matrix



EQUITY FINANCE

RELATIVE VALUE

SYNTHETIC PB

CASH PB

YIELD ENHANCEMENT

Ian Davey and Chip Leveroni cover Christopher Gate, Luke Lynch and new hire Modassir (Mo) Ali. Christopher Gate is based in the UK and runs a pool of money – Event-Driven Strategy (BVI and TPT). Priority account and relationship is good. They currently trade RV Cash, Options and Sector Swaps on Special Situations/Risk Arb with us. Lehman and UBS are Tudor’s number 1 and 2 counterparties for Chris Gate’s execution when using options, he finds other brokers option prices are very poor. We need to ensure we stay as competitive as possible with Option pricing with a relative value view.

Boston - They trade a lot of OTC options on Index and single names.

We were in the box for part of Q1 and Q2. We have them budgeted at $5 million, but due to the penalty box, need to take $1.5 m off the budget to $3.5m. Despite that, belief is we can hit the $5m as we are doing a ton of business right now.

The majority of their balances are in the BVI fund ($353m) and the prop fund ($190m), but they have balances in the employee fund, and the futures fund as well. The overall total of balances is roughly $550 million

Lehman is Prime Broker for the Raptor fund as of September 2004.

Big upside with the PB piece for Raptor if they move more balances to us from MS. This is slowly happening, but there is a lot of business here.

Europe - Katie Gillham covers Sharon Easton and Don McCrossen.

In Europe Tudor (BVI and TPT) are a priority account but don’t use us as their main PB. They mainly use us for Stock Loan business (put thrus to Bar Cap) and Yield Enhancement. We have agreed to book trades out as Total Return Swaps. ISDA’s are already in place. They are also using LPS product for some high volume global long/short business.Don McCrossen has moved over from the US

PB Mandate was necessary to get more trades put to us rather than give-ups. Similarly with swap balances, all but exceptionals have historically been given-up to UBS and BarCap. Now that we have won PB for the Event-Driven fund – we should see more execution business aswell as financing business see notes under prime broker).Christopher Gate has been awarded mandate to increase capital 2 to 3 times.

Continue to accumulate balances in the US

Bar Cap are Tudor’s main PB in Europe. Matthew Pinnock and Brian Bisesi have been involved in recent negotiations for Lehman to be allocated a share of Tudor’s European Prime Broker business. As a result, Tudor has recently awarded Lehman Brothers the PB mandate for their Event Driven business run by Christopher Gate out of Europe. All of the Event-Driven Cash balances from Bar Cap and Synthetic balances from UBS will be moved to Lehman. Tudor felt it was incumbent for them to diversify their exposure and allocate their balances in Europe as BarCap have historically been their sole PB. Tudor’s decision to diversify their balances has been made in preparation of confirmed increases in capital allocated to European strategies. Specifically there is an increased allocation of capital to

General Challenge - Tudor are a very admin orientated account, bureaucratic – sign-off on documents can get delayed and take time

Opportunity Matrix



CONNECTIVITY

FID / FX

Use Eze Castle as their OMS

The use MS Passport now for 1 penny per share.

We had a meeting setup in September for LMX/DTM for Porcelli and Cushing to present to Forziatti. However, a bad rain storm in NY caused the meeting to be cancelled, and then we were in the penalty box.

Europe - Tudor is now routing worked orders to us via Bloomberg Order Router (set up for Cash and Programs with Colin Rogers). Also sold DTC product – working t get that live. Discussions around utilising Trading Screen. Tudor do not have a consolidated approach to connectivity. We met with them recently to discuss their plans and suggested that we showcase them vendors and assist their technical team in getting a centralised execution system across the board in Europe.

to work on the Financing desk. Sharon Easton is now moving to the Sydney office to become COO of the Tudor operation there. They are looking to hire someone to replace her in London.

LMX/DTM remain opportunities with Tudor

Steve Evans (US – Quant) has expressed an interest in pursuing trading via connectivity in the future as they plan to introduce new “faster” trading strategies to compliment current ones.

Event-Driven and a planned spin-off of Event-Trading from BVI and TPT.

SOFT $ The majority of the Tudor soft business comes via Boston, but there is some business from Greenwich.

Tudor Boston soft budget is ~$750 million in gross. Their ratio is 1:4

The Greenwich office may start trading a handfull of ETF's with Jeff Mann as soft.

PRIVATE EQUITY

Documents

Global Tudor Client Book