Document:

Exhibit 10.24

 

RESTRICTED UNIT AGREEMENT

 

This Restricted Unit Agreement (this “Agreement”)
is made as of the 19th day of November, 2004 (the “Effective Date”)
between New Refco Group Ltd., LLC, a Delaware limited liability company (the “Company”),
and the undersigned manager (the “Grantee”).  Certain capitalized terms used herein are
defined in Section 7 hereof.

 

WHEREAS, the Company believes it to be in the best
interests of the Company and its unitholders to attract and retain persons of
exceptional ability to serve as outside members of the Board of Managers and to
solidify the common interests of unitholders and the Company’s outside managers
in enhancing the value of the Company’s units;

 

WHEREAS, accordingly the Company has determined to
issue restricted units in accordance with the provisions of this Agreement; and

 

WHEREAS, the Company desires to be assured that the
confidential information and goodwill of the Company will be preserved for the
exclusive benefit of the Company.

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Issuance of Grantee Units.

 

(a)                                  Upon execution of this Agreement, the
Company will issue to the Grantee that number of Class B Common Units of the
Company (the “Class B Common Units”) set forth below such Grantee’s
name on the signature page attached hereto. 
All of such Class B Common Units issued to the Grantee hereby are
referred to herein as “Grantee Units.” 
To secure the Company’s rights under the Repurchase Option in Section 3,
the Company will retain possession of the certificates representing the Grantee
Units and will provide the Grantee with copies thereof.

 

(b)                                 In connection with the acquisition of the
Grantee Units hereunder, the Grantee represents and warrants to the Company
that:

 

(i)                                     the Grantee Units to be acquired by the Grantee
pursuant to this Agreement will be acquired for the Grantee’s own account, for
investment only and not with a view to, or intention of, distribution thereof
in violation of the Securities Act, or any applicable state securities laws,
and the Grantee Units will not be disposed of in contravention of the
Securities Act or any applicable state securities laws or this Agreement or the
Securityholders’ Agreement;

 

(ii)                                  the Grantee has such knowledge and
experience in business and financial matters and with respect to investments in
securities of privately held

 

 

companies
so as to enable the Grantee to understand and evaluate the risks and benefits
of his or her investment in the Grantee Units;

 

(iii)                               the Grantee has no need for liquidity in
his or her investment in the Grantee Units and is able to bear the economic
risk of his or her investment in the Grantee Units for an indefinite period of
time and understands that the Grantee Units have not been registered or
qualified under the Securities Act or any applicable state securities laws, by
reason of the issuance of the Grantee Units in a transaction exempt from the
registration and qualification requirements of the Securities Act or such state
securities laws and, therefore, cannot be sold unless subsequently registered
or qualified under the Securities Act or such state securities laws or an
exemption from such registration or qualification is available;

 

(iv)                              the Grantee acknowledges that he or she
is aware that the Grantee Units may not be sold pursuant to Rule 144
promulgated under the Securities Act unless all of the conditions of that Rule
are met.  Among the current conditions
for use of Rule 144 by certain holders is the availability to the public of
current information about the Company. 
Such information is not now available, and the Company has no current
plans to make such information available; and

 

(v)                                 the Grantee has had an opportunity to ask
questions and receive answers concerning the terms and conditions of the
offering of the Grantee Units and has had full access to or been provided with
such other information concerning the Company as the Grantee has requested.

 

(c)                                  Grantee further represents and warrants
that this Agreement constitutes the legal, valid and binding obligation of the Grantee,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by the Grantee does not and will not conflict
with, violate or cause a breach of any agreement, contract or instrument to
which the Grantee is a party or any judgment, order or decree to which the Grantee
is subject.

 

(d)                                 As an inducement to the Company to issue
the Grantee Units to the Grantee and as a condition thereto, the Grantee
acknowledges and agrees that neither the issuance of the Grantee Units to the Grantee
nor any provision contained herein shall entitle the Grantee to remain on the
Board of the Company or affect the right of the Company or its members to remove
the Grantee from the Board at any time for any reason.

 

(e)                                  In connection with
the issuance and sale by the Company to the Grantee of the Grantee Units, the
Company represents and warrants that:

 

(i)                                     the Company is a
limited liability company validly existing under the laws of the jurisdiction
of its formation and has all requisite limited liability company power and
authority to own, lease and operate the assets used in its business, to carry
on its business as presently conducted, to enter into this

 

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Agreement, to perform its obligations hereunder, and to
consummate the transactions contemplated hereby;

 

(ii)                                  the Company has
taken all limited liability company action necessary to authorize its execution
and delivery of this Agreement, its performance of its obligations thereunder,
and its consummation of the transactions contemplated thereby; and

 

(iii)                               this Agreement
constitutes a valid and binding obligation of the Company, enforceable in
accordance with its terms.

 

2.                                       Vesting of Grantee Units.

 

(a)                                  General.

 

(i)                                     Vesting. 
The Grantee Units granted hereunder (the “Units”) will be deemed “vested”
(the “Vested Units”) in accordance with this Section 2.  The Units will vest 25% on each of February
28, 2005, February 28, 2006, February 28, 2007 and February 29, 2008 (each, a “Measurement
Year”), subject to the provisions of Section 2(b).

 

(ii)                                  Change of
Control.  All Units that have not previously vested
will vest in full upon a Change of Control.

 

(b)                                 In the event the Grantee ceases to be a
member of the Board of Managers, then (i) all Grantee Units shall cease vesting
effective as of the date upon which the Grantee ceases to be a member of the
Board of Managers (the “Termination Date”) and (ii) a fraction of the
Units that otherwise would become Vested Units at the end of the Measurement
Year in which such termination occurs will become Vested Units, the numerator
of which fraction shall equal the number of whole months during such year (or,
in the case of such termination prior to February 28, 2005, the number of
whole months since November 19, 2004) that the Grantee was a member of the
Board of Managers and the denominator of which shall be twelve (12).

 

3.                                       Repurchase or Forfeiture of Units.

 

(a)                                  In the event that the Grantee ceases to
be a member of the Board of Managers, then all Grantee Units (whether held by
the Grantee or by one or more of the Grantee’s transferees) which as of the
date of termination:

 

(i)                                     have not vested pursuant to Section 2
hereof, will be forfeited and returned to the Company;

 

(ii)                                  have vested pursuant to Section 2
hereof, will be subject to repurchase by the Company, at its option (the “Repurchase
Option”), for Fair Market Value.

 

(b)                                 [Intentionally omitted.]

 

3

 

(c)                                  The Repurchase Option shall be exercised
by the Company, or its designee, from time to time, by delivering to the Grantee
a written notice of exercise and a check in the amount of the Fair Market
Value.  Upon delivery of such notice and
payment of the purchase price as described above (or automatically upon any
forfeiture of units pursuant to Section 3(a)(i)), the Company, or its
designee, shall become the legal and beneficial owner of the Grantee Units
being repurchased and all rights and interest therein or related thereto, and
the Company, or its designee, shall have the right to transfer to its own name
the number of Grantee Units being repurchased without further action by the Grantee
or any of his or her transferees.  If the
Company or its designee elect to exercise the Repurchase Option pursuant to
this Section 3 and the Grantee or his or her transferee fails to
deliver the Grantee Units in accordance with the terms hereof, the Company, or
its designee, may, at its option, in addition to all other remedies it may
have, deposit the purchase price in an escrow account administered by an
independent third party (to be held for the benefit of and payment over to the Grantee
or his or her transferee in accordance herewith), whereupon (or, in any case,
upon any forfeiture of units pursuant to Section 3(a)(i)) the Company
shall by written notice to the Grantee cancel on its books the certificates(s)
representing such Grantee Units registered in the name of the Grantee and all
of the Grantee’s or his or her transferee’s right, title, and interest in and
to such Grantee Units shall terminate in all respects.

 

(d)                                 Notwithstanding the
foregoing, if at any time the Company elects to repurchase any Class B
Common Units pursuant to the Repurchase Option, the Company shall pay the
purchase price for the Class B Common Units it purchases (i) first,
by offsetting indebtedness, if any, owing from such Grantee to the Company and
(ii) then, by the Company’s delivery of cash for the remainder of the purchase
price, if any, against delivery of the certificates or other instruments
representing the Class B Common Units so purchased, duly endorsed; provided
that, (x) if any such cash payment at the time such payment is required
to be made would result (A) in a violation of any law, statute, rule,
regulation, policy, order, writ, injunction, decree or judgment promulgated or
entered by any federal, state, local or foreign court or governmental authority
applicable to the Company or any of its subsidiaries or any of its or their
property or (B) after giving effect thereto, in a Financing Default, or
(y) if the Board determines in good faith that immediately prior to such
purchase there shall exist a Financing Default which prohibits such purchase
((x) and (y) collectively the “Cash Deferral Conditions”), the portion
of the cash payment so affected may be made by the Company’s delivery of a
promissory note or senior preferred units of the Company with a liquidation
preference equal to the balance of the purchase price.  The promissory note or senior preferred units
shall accrue interest or yield, as the case may be, annually at the “prime rate”
published in The Wall Street Journal on the date of issuance, which interest or
yield, as the case may be, shall be payable at maturity.  The value of each such senior preferred unit
shall as of its issuance be deemed to equal (A) the portion of the cash
payment paid by the issuance of such preferred units divided by (B) the
number of senior preferred units so issued. 
Any senior preferred units or the promissory
note shall be redeemed or payable when and to the extent the Cash Deferral
Condition which prompted their issuance no longer exists.

 

4

 

(e)                                  In the event that Grantee Units are
repurchased or forfeited pursuant to this Section 3, the Grantee
and his or her successors, assigns or Representatives shall take (at the
Company’s expense) all steps necessary and desirable to obtain all required
third-party, governmental and regulatory consents and approvals and take
all other actions necessary and desirable to facilitate consummation of such
repurchase in a timely manner.

 

4.                                       Legend.

 

The certificates representing the Grantee Units will
bear the following legend:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO FORFEITURE, REPURCHASE RIGHTS AND CERTAIN OTHER AGREEMENTS SET FORTH
IN A RESTRICTED UNIT AGREEMENT DATED NOVEMBER 19, 2004, BETWEEN THE COMPANY AND
THE OTHER SIGNATORY THERETO.  A COPY OF
SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL
PLACE OF BUSINESS WITHOUT CHARGE.

 

THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, OR ENCUMBRANCE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF THE HOLDER
OF SUCH SECURITIES IN RESPECT OF THE ELECTION OF DIRECTORS ARE SUBJECT TO A
SECURITYHOLDERS’ AGREEMENT DATED AUGUST 5, 2004 AMONG THE COMPANY AND CERTAIN
HOLDERS OF ITS EQUITY INTERESTS.  COPIES
OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE
HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES OR BLUE SKY LAWS.  THESE SECURITIES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
SAID ACT OR LAWS.”

 

5.                                       Restrictions on Transfer, Conversion and
Voting.

 

(a)                                  The Company and the Grantee acknowledge
and agree that the Grantee Units are subject to and restricted by the
Securityholders’ Agreement. 
Notwithstanding anything to the contrary contained in the Securityholders’
Agreement, no Grantee Units that have not become Vested Units pursuant to Section 2
hereof may be transferred to any Person and no Grantee Units that are Vested
Units may be transferred to any Person who is not an Affiliate of the Grantee.  The Vested Units may be transferred by will
or the laws of descent and distribution.

 

5

 

(b)                                 Prior to any Transfer, the transferee
shall agree, by execution of a Joinder Agreement, to be bound by this Agreement
as holder of Grantee Units and by the Securityholders’ Agreement.  Any Transfer or attempted Transfer of any Grantee
Units in violation of the preceding sentence shall be void, and the Company
shall not record such Transfer on its books or treat any purported transferee
of such Grantee Units as the owner of such units for any purpose.

 

(c)                                  The
Grantee agrees that so long as the Grantee owns Grantee Units which have not
become Vested Units pursuant to Section 2 hereof, the Grantee shall be
obligated to vote all of his, her or its Grantee Units which have not become
Vested Units pursuant to Section 2 hereof in the same manner and
proportions as the votes cast by the holders of a majority of the Company’s
voting equity interests not subject to such repurchase rights.  If the Grantee fails or refuses to vote his,
her or its Grantee Units which have not become Vested Units pursuant to Section
2 hereof as required by, or votes his, her or its Grantee Units which have
not become Vested Units pursuant to Section 2 hereof in contravention of
this Section 5(c), then the Grantee hereby grants to each of the
President and Treasurer of the Company, acting solely in his or her capacity as
such, an irrevocable proxy, coupled with an interest, to vote such units in
accordance with this Section 5(c).

 

6.                                       Restricted Activities.

 

6.1                                 Proprietary Information.

 

(a)                                  In the course of service to the Company, the Grantee
will have access to confidential information regarding the organization,
business and finances of the Company and its Affiliates, including products,
services, designs, methods,
techniques, systems, specifications, know-how, strategic or technical data,
marketing research data, product research and development data, sales
techniques, confidential customer lists and information, sources of supply and
trade secrets, all of which are confidential and may be proprietary and are
owned or used by the Company, or any of its Affiliates.  Such information shall hereinafter be called “Proprietary
Information” and shall include any and all items enumerated in the
preceding sentence and coming within the scope of the business of the Company
or any of its Affiliates as to which the Grantee may have access, whether
conceived or developed by others or by the Grantee alone or with others during
the period of service to the Company, whether or not conceived or developed
during regular working hours. 
Proprietary Information shall not include any records, data or
information which are (i) in the public domain during or after the Grantee’s service
to the Company as a member of the Board provided the same are not in the public
domain as a consequence of disclosure directly or indirectly by the Grantee in
violation of this Agreement, (ii) required to be disclosed by law, or (iii)
reasonably required to be disclosed in defending any suit, proceeding or
investigation to which the Grantee is a party.

 

(b)                                 The Grantee agrees that Proprietary
Information is of critical importance to the Company and a violation of this Section
6 would

 

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seriously and irreparably impair and damage the Company’s
business.  The Grantee agrees that he
shall keep all Proprietary Information in a fiduciary capacity for the sole
benefit of the Company.

 

(c)                                  The Grantee shall not during the Grantee’s service
to the Company as a member of the Board or at any time thereafter:  (i) disclose, directly or indirectly, any
Proprietary Information to any person, other than any person who, in the
reasonable judgment of the Grantee, needs to know such Proprietary Information
or such other persons to whom the Grantee has been specifically instructed to
make disclosure by the Board of Managers and in all such cases only to the
extent required in the course of the Grantee’s service to the Company; or (ii)
use any Proprietary Information, directly or indirectly, for the Grantee’s own
benefit or for the benefit of any person or entity other than the Company.

 

6.2                                 Protection of Documents.  All
(i) notes, memoranda, reports, lists, letters, documents, records,
specifications, software programs, software code, data, tapes and other media
of every kind, form and description relating to or within the scope of the
business of the Company or any of its Affiliates and any copies, in whole or in
part, thereof (collectively, the “Documents”), whether or not prepared
by the Grantee, and (ii) all computers, cellular telephones, pagers, credit
and/or calling cards, keys, access cards or other personal property of or
relating to the Company or any of its Affiliates (collectively, the “Property”)
shall be the sole and exclusive property of the Company.  The Grantee shall safeguard all Documents and
Property and shall surrender to the Company within five (5) days of the date of
termination of the service of Grantee, or at such earlier time or times as the
Board of Managers or its designee may specify, all Documents and Property then
in the Grantee’s possession or control; provided, however, that
the Grantee may retain a copy of any personnel-related materials relating to
his or her service to the Company as a member of the Board, including, but not
limited to, this Agreement, any compensation or benefit plan or program, or any
awards or evidence of participation in such plans or programs, or any other
communications to or from the Company related to Grantee’s service to the
Company as a member of the Board.  During
the Grantee’s service to the Company as a member of the Board, the Grantee
shall not make, use or permit to be used any Documents or Property otherwise
than for the benefit of the Company. 
After the Grantee’s termination of service to the Company, the Grantee
shall not use or permit others to use any Documents or Property.  This Section 6 shall not be construed
to unreasonably restrict the Grantee’s ability to disclose Proprietary
Information in an arbitration or court proceeding regarding the assertion of,
or defense against, any claim of breach of this Agreement.

 

7.                                       Definitions.

 

The following terms shall have the meanings ascribed
below:

 

“Affiliate” of any particular Person means
any other Person controlling, controlled by or under common control with such
particular Person or, with respect to any individual, such individual’s spouse
and descendants (whether natural or adopted) and any trust, partnership,
limited liability company or similar vehicle established and

 

7

 

maintained solely for the
benefit of (or the sole members or partners of which are) such individual, such
individual’s spouse and/or such individual’s descendants.

 

“Board” means the Board of Managers of the
Company.

 

“Change of Control” shall mean the
consummation of a transaction, whether in a single transaction or in a series
of related transactions that are consummated contemporaneously (or consummated
pursuant to contemporaneous agreements), with any other party or parties, other
than an Affiliate of THL or an Affiliate of Phillip Bennett, on an arm’s-length
basis, pursuant to which (a) a party or group (as defined under Rule 13d under the Securities Exchange Act of 1934,
as amended) who is not a unitholder of the Company on the Effective Date,
acquires, directly or indirectly (whether by merger, stock purchase,
recapitalization, reorganization, redemption, issuance of capital stock or otherwise),
more than 50% of the voting power of the Company or otherwise becomes entitled
to designate a majority of the members of the Company’s Board of Managers, or
(b) such party or parties, directly or indirectly, acquire assets constituting
all or substantially all of the assets of the Company and its subsidiaries on a
consolidated basis.

 

“Class A Common Units” means the Company’s
Class A Common Units.

 

“Class B Common Units” has the meaning set
forth in Section 1(a) hereof.

 

“Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

“Credit Agreement” shall mean the Credit
Agreement made as of August 5, 2004, between Refco Finance Holdings LLC, a
Delaware limited liability company, Refco Group Ltd., LLC, a Delaware limited
liability company, each lender from time to time party thereto, Banc of America
Securities LLC, Credit Suisse First Boston, acting through its Cayman Islands
Branch, and Deutsche Bank Securities Inc., as co-lead arrangers and joint
book running managers, Credit Suisse First Boston, acting through its Cayman
Islands Branch, as Syndication Agent, Deutsche Bank Securities Inc., as
Documentation Agent, and Bank of America, N.A., as Administrative Agent, Swing
Line Lender and L/C Issuer, as may be amended, supplemented or otherwise modified
in accordance with its terms.

 

“EBITDA” has the meaning set forth in the
Securityholders’ Agreement.

 

“Grantee Units” has the meaning set forth in Section 1(a)
hereof.  The Grantee Units will continue
to be Grantee Units in the hands of any holder other than the Grantee (except
for the Company and except for transferees in a public sale) and, except as
otherwise provided herein, each such other holder of the Grantee Units will
succeed to all rights and obligations attributable to the Grantee as a holder
of the Grantee Units hereunder.  The Grantee
Units will also include equity interests of the Company issued with respect to
the Grantee Units by way of an equity split, dividend of equity or other
recapitalization.

 

8

 

“Fair Market Value” shall be determined by
the Board based on methods consistently applied in good faith.  Upon such determination, the Company shall
promptly provide the Grantee with notice of the Fair Market Value so determined
(the “Board Notice”).

 

“Financing Default”
means any event of default or breach under the Credit Agreement.

 

“Measurement Date” shall mean, for any
Measurement Year, the date following the end of such Measurement Year upon
which the Company shall have received its audited financial statements for such
Measurement Year, beginning with the Measurement Year ending February 28,
2005.

 

“Person” shall be construed broadly and shall
include, without limitation, an individual, a partnership, an investment fund,
a limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

 

“Representative” means, with respect to the deceased
Grantee, the duly appointed, qualified and acting personal representative (or
personal representatives collectively) of the estate of the deceased Grantee
(or portion of such estate that includes Grantee Units), whether such personal
representative holds the position of executor, administrator or other similar
position qualified to act on behalf of such estate.

 

“Securities Act” means the Securities Act of
1933, as amended, or any successor federal law then in force.

 

“Securityholders’ Agreement” means the
Securityholders’ Agreement dated August 5, 2004 between the Company and certain
securityholders of the Company, as amended, modified or supplemented from time
to time.

 

“THL” means Thomas H. Lee Equity Fund V,
L.P., a Delaware limited partnership, and its Affiliates.

 

“Transfer” means the sale, transfer,
assignment, pledge or other disposal (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law) of any Grantee
Units.

 

8.                                       General Provisions.

 

(a)                                  Severability. 
The parties agree that each provision herein shall be treated as a
separate and independent clause, and the unenforceability of any one clause
shall in no way impair the enforceability of any other clauses of this
Agreement.  If any one or more provisions
of this Agreement is held to be invalid or unenforceable for any reason,
including due to being overbroad in scope activity, subject or otherwise: (i)
this Agreement shall be considered divisible; (ii) such provision shall be
deemed inoperative

 

9

 

to the extent it is deemed invalid or unenforceable;
and (iii) in all other respects this Agreement shall remain full force and
effect; provided, however, that if any such provision maybe made valid or enforceable
by limitation thereof, then such provision shall be deemed to be so limited and
shall be valid and/or enforceable to the maximum extent permitted by applicable
law.

 

(b)                                 Entire Agreement. 
This Agreement and the Securityholders’ Agreement constitute
the entire agreement and understanding of the parties hereto concerning the
subject matter hereof and from and after the date of this Agreement, this
Agreement shall supersede any other prior negotiations, discussions, writings,
agreements or understandings, both written and oral, between the parties with
respect to such subject matter.

 

(c)                                  Counterparts. 
This Agreement may be executed in separate counterparts, each of which
is deemed to be an original and all of which taken together constitute one and
the same agreement.

 

(d)                                 Successors and Assigns.

 

(i)                                     This Agreement is personal to the Grantee
and without the prior written consent of the Company shall not be assignable by
the Grantee.  This Agreement shall inure
to the benefit of and shall be enforceable by the Grantee and the Grantee’s
legal representatives.

 

(ii)                                  This Agreement shall inure to the benefit
of and be binding upon the Company and its successors and assigns.

 

(iii)                               Nothing in this Agreement, express or
implied, is intended to or shall confer upon any person other than the parties
hereto, and their respective heirs, legal representatives, successors, and
permitted assigns, any rights, benefits, or remedies of any nature whatsoever
under or by reason of this Agreement.

 

(e)                                  Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of the law of any
jurisdiction other than the State of New York.

 

(f)                                    Remedies.  Each of the
parties to this Agreement and any such Person granted rights hereunder whether
or not such Person is a signatory hereto shall be entitled to enforce its
rights under this Agreement specifically to recover damages and costs
(including reasonable attorney’s fees) for any breach of any provision of this
Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party and any such Person granted rights hereunder
whether or not such Person is a signatory hereto may in its sole discretion apply
to any court of law or equity of competent jurisdiction for specific
performance

 

10

 

and/or other injunctive relief (without posting any
bond or deposit) in order to enforce or prevent any violations of the
provisions of this Agreement.

 

(g)                                 Amendment and Waiver. 
The provisions of this Agreement may be amended and waived only with the
prior written consent of the Company and the Grantee and no course of conduct
or failure or delay in enforcing the provisions of this Agreement shall be
construed as a waiver of such provisions or affect the validity, binding effect
or enforceability of this Agreement or any provision hereof.

 

(h)                                 Notices.  Any notice
provided for in this Agreement must be in writing and must be either personally
delivered, transmitted via facsimile, mailed by first class mail (postage
prepaid and return receipt requested) or sent by reputable overnight courier
service (charges prepaid) to the recipient at the address below indicated or at
such other address or to the attention of such other person as the recipient
party has specified by prior written notice to the sending party.  Notices will be deemed to have been given
hereunder and received when delivered personally, when received if transmitted
via facsimile, five (5) days after deposit in the U.S. mail and one (1) day
after deposit with a reputable overnight courier service.

 

If to the Company, to:

 

New
Refco Group Ltd., LLC

c/o
Refco Group Ltd., LLC

One
World Financial Center

200
Liberty Street

New
York, NY 10281

Attention:  General Counsel

 

With a copy to:

 

Thomas H. Lee Partners, L.P.

100 Federal Street, 35th
Floor

Boston, MA 02110

	
  Attention:

  	
  Scott
  A. Schoen

  
	
   

  	
  Scott
  Jaeckel

  
	
   

  	
  George
  Taylor

  

 

If to the Grantee, to the
address set forth underneath the Grantee’s name on the signature pages hereto.

 

(i)                                     Business Days. 
If any time period for giving notice or taking action hereunder expires
on a day which is a Saturday, Sunday or holiday in the state in which the
Company’s chief executive office is located, the time period for giving notice
or taking action shall be automatically extended to the business day
immediately following such Saturday, Sunday or holiday.

 

11

 

(j)                                     Survival of Representations, Warranties
and Agreements.  All representations, warranties and
agreements contained herein shall survive the consummation of the transactions
contemplated hereby and the termination of this Agreement indefinitely.

 

(k)                                  Descriptive Headings. 
The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a part of this Agreement.

 

(l)                                     Construction. 
Where specific language is used to clarify by example a general
statement contained herein, such specific language shall not be deemed to
modify, limit or restrict in any manner the construction of the general
statement to which it relates.  The
language used in this Agreement shall be deemed to be the language chosen by
the parties to express their mutual intent, and no rule of strict construction
shall be applied against any party.

 

(m)                               WAIVER OF JURY TRIAL. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT.

 

(n)                                 Nouns and Pronouns. 
Whenever the context may require, any pronouns used herein shall include
the corresponding masculine, feminine or neuter forms, and the singular form of
nouns and pronouns shall include the plural and vice versa.

 

 

[SIGNATURE
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IN WITNESS WHEREOF, the
parties hereto have executed this Restricted Unit Agreement as of the date
first written above.

 

	
   

  	
  NEW
  REFCO GROUP LTD, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  PHILLIP BENNETT

  	
   

  
	
   

  	
   

  	
  Phillip
  Bennett

  
	
   

  	
   

  	
  President

  

 

 

SIGNATURE PAGE TO
RESTRICTED UNIT AGREEMENT

 

 

	
   

  	
  GRANTEE:

  
	
   

  	
   

  
	
   

  	
  Nathan
  Gantcher

  	
   

  
	
   

  	
  Print
  Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  NATHAN GANTCHER

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Safra
  Asset Management

  	
   

  
	
   

  	
   

  	
  546
  Fifth Avenue, 5th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10036

  	
   

  
	
   

  	
   

  
	
   

  	
  Number
  of Grantee Units Received

  
	
   

  	
   

  
	
   

  	
  Twenty
  Thousand (20,000)QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.25    
    

 
 

EXECUTIVE EMPLOYMENT AND NON-COMPETITION
  AGREEMENT
  
    BY AND BETWEEN
  
    REFCO GROUP LTD., LLC
  
    AND
  
    GERALD M. SHERER
  
    DECEMBER 6, 2004    

 
EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT  

        This EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT (this "Agreement"), dated as of
December 6, 2004, by and between REFCO GROUP LTD., LLC, a Delaware limited liability company (the "Company"), and Gerald M. Sherer (the
"Executive"), shall become effective upon the Effective Date (as defined below). 

WITNESSETH:  

        WHEREAS, the Company desires to employ Executive as Chief Financial Officer of the Company, and Executive desires to be employed by the Company in said capacity,
under the terms and pursuant to the conditions set forth herein; 

        WHEREAS,
in connection with his employment, the Executive will receive the opportunity to receive awards of Class B Common Units of New Refco Group Ltd., LLC (the
"Class B Common Units"); 

        WHEREAS,
the Company desires to be assured that the confidential information and goodwill of the Company will be preserved for the exclusive benefit of the Company; and 

        WHEREAS,
in consideration for (i) the employment of the Executive by the Company, (ii) the ability of the Executive to receive awards of Class B Common Units,
(iii) the mutual covenants and promises contained herein and intending to be legally bound thereby and (iv) for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged; 

        NOW,
THEREFORE, the Company and the Executive hereby agree as follows: 

        1.     EMPLOYMENT.    The Company agrees to employ the Executive, and the Executive agrees to be employed by the
Company, for the period set forth in Section 2, in the positions and with the duties and responsibilities set forth in  Section 3, and upon the
other terms and conditions provided herein. 

        2.     EMPLOYMENT TERM.    The employment of the Executive by the Company pursuant to this Agreement shall be for the
period commencing on December    , 2004 (such date, the "Effective Date") through and ending on February 28, 2007 unless earlier
terminated pursuant to the provisions of Section 5 hereof (as such period may be extended pursuant to the immediately following sentence, the
"Employment Term"). Beginning on February 28, 2007 and on the last day of each fiscal year of the Company thereafter (each a
"Reset Date"), the Employment Term shall be automatically extended so as to terminate one year after such Reset Date, unless earlier terminated pursuant
to the terms of this Agreement. 

        3.     POSITIONS AND DUTIES.

        (a)   During
the Employment Term, the Executive's position shall be Chief Financial Officer, or such other position of equivalent seniority as may be determined by the
Company's Board of Managers (the "Board"). The Executive's responsibilities shall be carried out with the advice and counsel of the Board, and the Chief
Executive Officer of the Company. 

        (b)   During
the Employment Term, the Executive shall devote his full business time and attention to the business and affairs of the Company and its affiliated companies (as
defined below), and shall utilize the Executive's best efforts to discharge faithfully and efficiently the duties and responsibilities delegated and assigned to the Executive, except for usual,
ordinary, and customary periods of vacation and absence due to illness; provided, however, that the Executive may (i) serve on
non-profit industry-related, civic or charitable boards or committees, (ii) deliver lectures and fulfill speaking engagements and (iii) manage the Executive's personal
investments, so long as such activities do not significantly interfere with the performance and fulfillment of the Executive's duties and responsibilities as an employee of the Company in accordance
with this 

2

 

Agreement;  provided, however, that such activities will not, in the reasonable judgment of the Board, constitute an actual or potential conflict of
interest with the Company or an affiliated company. As used in this Agreement, the term "affiliated company," "affiliated
companies" or "affiliate" shall include any entity or person controlled by, controlling, or under common control with the
Company; provided, however, that such term shall not include any entity that is affiliated with the Company solely because such entity is controlled by
Thomas H. Lee Partners or any of its affiliates. 

        (c)   All
services that the Executive may render to the Company or any of its affiliated companies in any capacity during the Employment Term shall be deemed to be services
required by this Agreement and in consideration for the compensation provided for herein. 

        4.     COMPENSATION AND RELATED MATTERS.

        (a)   Base Salary.    During the Employment Term, the Executive shall receive an annual base salary
("Base Salary") of One Million Dollars ($1,000,000). The Base Salary shall be payable in installments in accordance with the Company's general payroll
practices for executives in effect at the time such payment is made, and shall be subject to all necessary withholding taxes, FICA contributions and similar deductions. During the Employment Term, the
Executive's Base Salary shall be subject to such increases (but not decreases) as may be determined from time to time by the Board in its sole discretion; provided,
however, that the Executive's Base Salary shall be reviewed by the Board at least annually, with a view to making such upward adjustment, if any, as the Board deems
appropriate. Any increased Base Salary shall become the new "Base Salary" for purposes of this Agreement. Payments of Base Salary to the Executive shall not be deemed exclusive and shall not prevent
the Executive from participating in any employee benefit plans, programs, or arrangements of the Company in which the Executive is entitled to participate. Payments of Base Salary to the Executive
shall not in any way limit or reduce any other obligation of the Company hereunder, and no other compensation, benefit, or
payment to the Executive hereunder shall in any way limit or reduce the obligation of the Company regarding the Executive's Base Salary hereunder. 

        (b)   Annual Bonus.    During the Employment Term, the Executive shall be eligible to receive an annual performance
bonus for each fiscal year of the Company, payable in cash (each an "Annual Bonus"), which shall be determined in accordance with the Management Bonus
Pool Plan, as amended, modified or supplemented from time to time. 

        (c)   Incentive Compensation Awards.    The Executive shall be eligible as of the Effective Date to participate in
equity-based compensation plans, including option plans, restricted or phantom membership interest plans and other equity incentive plans as shall be determined by the Board from time to time during
the Employment Term. It is acknowledged that on the Effective Date the Executive shall receive awards of Class B Common Units pursuant to a Restricted Unit Agreement in the form attached hereto
as Exhibit A. 

        (d)   Employee Benefits. 

        (i)    Incentive, Savings, and Retirement Plans.    During the Employment Term, the Executive shall be entitled to
participate in all incentive, savings, and retirement plans, programs, and arrangements applicable generally to other senior executives at the Company. 

        (ii)   Welfare Benefit Plans.    During the Employment Term, the Executive and/or the Executive's family, as the case
may be, shall be eligible to participate in and shall receive all benefits under all welfare benefits plans, programs, and arrangements provided by the Company (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group life, accidental death, and travel accident insurance plans, programs, and arrangements) to the extent applicable generally
to other senior executives at 

3

 

the
Company. The Company may, at its election and for its benefit, obtain insurance against the disability, accidental loss or death of the Executive (e.g. "Key Man Insurance") and the Executive shall
submit to such physical examinations and supply such information as may be reasonably required in connection with the obtainment thereof. 

        (e)   Expenses.    During the Employment Term, the Executive shall be entitled to receive prompt reimbursement for
all reasonable expenses incurred by the Executive in performing the Executive's duties and responsibilities hereunder. The Executive shall comply with such reasonable limitations and reporting
requirements with respect to such expenses as the Board may establish from time to time. 

        (f)    Vacation.    During the Employment Term, the Executive shall be entitled to twenty (20) business days
paid vacation in each calendar year, which shall be taken at such times as are consistent with the Executive's responsibilities hereunder. Any vacation days unused at the end of any calendar year
shall be forfeited. 

        (g)   Additional Compensation.    If, immediately following February 28, 2006 (the
"Look-Back Date"), the aggregate value of the Class B Common Units, and any other incentive equity of the Company or New Refco
Group Ltd., LLC ("New Refco") issued to the Executive, in each case which has vested as of the Look-Back Date, net of any amounts
that the Executive paid to the Company for such equity (the "Value of Vested Company Equity"), is less than Three Million Five Hundred Thousand Dollars
($3,500,000) then as soon as practicable after the Look-Back Date, but in no event later than March 15, 2006, the Company shall pay to the Executive additional cash compensation
equal in amount to the difference between the Value of Vested Company Equity and $3,500,000. In the event that the Executive is terminated by the Company other than for Cause prior to
February 28, 2006, and the aggregate value of the Class B Common Units, and any other incentive equity of the Company or New Refco issued to the Executive, in each case which has vested
as of the Date of Termination (as defined below), net of any amounts that the Executive paid to the Company for such equity (the "Value of Vested Company Equity Upon
Termination") is less than $3,500,000, then as soon as practicable after the Date of Termination, the Company shall make a cash payment to the Executive in an amount equal to
the difference between the Value of Vested Company Equity Upon Termination and $3,500,000. All determinations of value that are relevant for purposes of this Section 4(g) shall be made in good
faith by the Board of Managers of New Refco as soon as practicable following the Look-Back Date or the Date of Termination, as applicable. For purposes of this Section 4(g),
"Company" shall include any successor entity to the Company, "Board of Managers" shall include any
successor Board of Directors or other governing body of New Refco and "Class B Common Units" will include any equity of any successor entity of
New Refco. 

        (h)   Compensation for Partial Periods.    Except as otherwise noted herein, any payments payable to the Executive
pursuant to this Agreement shall be pro-rated for any partial period of service applicable to such payment. 

        5.     TERMINATION OF EMPLOYMENT.

        (a)   Death.    The Executive's employment shall terminate automatically upon the Executive's death during the
Employment Term. 

        (b)   Disability.    If the Board determines in good faith that the Disability (as defined below) of the Executive
has occurred during the Employment Term, the Company may give the Executive notice of its intention to terminate the Executive's employment (a "Disability Notice of
Termination"). In such event, the Executive's employment hereunder shall terminate effective on the 30th day after receipt of such Disability Notice of Termination by the
Executive (the "Disability Effective Date"), provided that, within the 30-day period after such receipt, the 

4

 

Executive
shall not have returned to full-time performance of the Executive's duties. For purposes of this Agreement, "Disability" shall
mean the absence of the Executive or the inability of the Executive to perform his duties hereunder for an aggregate of one hundred eighty (180) days within any given period of three hundred
sixty (360) consecutive days, as a result of incapacity of the Executive, due to bodily injury or disease or any other mental or physical illness, which may be permanent with regard to the
Executive's ability to return to work in his full capacity; provided, however, that the Executive's return to work after receipt of a Disability Notice
of Termination shall not require or cause the resetting of the one hundred eighty (180) day measurement period set forth above for determining a Disability. Any determination of Disability
shall be made by the Board or the Chief Executive Officer of the Company in consultation with a qualified physician or physicians selected by the Board and/or the Company's insurers and reasonably
acceptable to the Executive (or, if applicable, his legal representative). During any period (not to exceed 360 days) in which the Board believes that the Executive's incapacity could
reasonably be expected to result in a Disability, the Board shall be entitled to appoint an interim Chief Financial Officer of the Company, without such appointment in and of itself triggering the
"Good Reason" termination provisions set forth herein. 

        (c)   Termination by the Company for Cause.    The Company may terminate the Executive's employment hereunder at any
time during the Employment Term for Cause (as defined below). 

        For
purposes of this Agreement, "Cause" shall mean only any of the following: 

        (i)    the
willful failure or refusal of the Executive to perform substantially the Executive's duties hereunder (other than any such failure resulting from the Executive being
disabled) that is not cured within thirty (30) days after a written demand for substantial performance is delivered to the Executive by the Board which specifically identifies the manner in
which the Board believes the Executive has not substantially performed the Executive's duties; provided, however, that the Board's dissatisfaction with
the quality of the Executive's performance hereunder shall not constitute the failure of the Executive to substantially perform his duties within the meaning of this  Section 5(c)(i);

        (ii)   the
engaging by the Executive in illegal conduct or willful misconduct that, in either case, is materially detrimental to the Company, monetarily or reputationally; 

        (iii)  the
commitment by the Executive of any act of fraud, embezzlement or misappropriation of funds; 

        (iv)  the
conviction by the Executive of, or the plea by the Executive of nolo contendere to, any felony;  provided, however, that after indictment of the Executive,
the Company may place the Executive on paid leave of absence until resolution or dismissal of
such indictment; or 

        (v)   the
material breach by the Executive of Section 7 or  Section 8 hereof that is not cured by the Executive within thirty (30) days of written
notice of such breach by the Board. 

Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done,
or omitted to be done, by the Executive in good faith and in the best interests of the Company, and no act or failure to act, on the Executive's part, shall be deemed "willful" unless done by the
Executive not in good faith and without a reasonable belief that the Executive's actions or omissions were in the best interest of the Company. 

        (d)   Termination by the Company without Cause.    The Company may terminate the Executive's employment hereunder at
any time during the Employment Term without Cause. 

5

 

        (e)   Termination by the Executive for Good Reason.    The Executive may terminate the Executive's employment
hereunder at any time during the Employment Term for Good Reason (as defined below). 

For
purposes of this Agreement, "Good Reason" shall mean only any of the following (without the Executive's written consent): 

        (i)    any
material diminution in the Executive's Base Salary or bonus opportunity, as contemplated by Sections 4(a) and  4(b) of this Agreement (other than as
provided in Section 5(b)), excluding for this purpose any
isolated, insubstantial, and inadvertent actions not taken in bad faith and which are remedied by the Company promptly after receipt of written notice thereof given by the Executive; 

        (ii)   any
failure by the Company to comply with any of its obligations under this Agreement, other than any isolated, insubstantial, and inadvertent actions not taken in bad
faith and which are remedied by the company promptly after receipt of written notice thereof given by the Executive: or 

        (iii)  the
Company's requiring the Executive to reside in or be based at any office or location other than the greater metropolitan areas of New York, New York. 

        (f)    Termination by the Executive Voluntarily.    The Executive may terminate the Executive's employment hereunder
at any time during the Employment Term for any reason other than Good Reason, or for no reason. 

        (g)   Notice of Termination.    Any termination of the Executive's employment hereunder by the Company or by the
Executive (other than a termination due to the Executive's death) shall be communicated by a Notice of Termination (as defined below) to the other party hereto. For purposes of this Agreement, a
"Notice of Termination" shall mean a notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) in
the case of a termination for Disability, Cause, or Good Reason, sets forth the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so
indicated, and (iii) specifies the Date of Termination (as defined below); provided, however, that, notwithstanding any provision of this
Agreement to the contrary, a Notice of Termination given in connection with a termination for Good Reason shall be given by the Executive within a reasonable period of time, not to exceed sixty
(60) days, following the occurrence of the event giving rise to such right of termination. The failure by the Company or the Executive to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Disability, Cause, or Good Reason shall not waive any right of the Company or the Executive hereunder or preclude the Company or the Executive from
asserting such fact or circumstance in enforcing the Company's or the Executive's rights hereunder. 

        (h)   Date of Termination.    For purposes of this Agreement, the "Date of
Termination" shall mean the effective date of termination of the Executive's employment hereunder, which date shall be: (i) if the Executive's employment is terminated
by the Executive's death, the date of the Executive's death; (ii) if the Executive's employment is terminated because of the Executive's Disability, the Disability Effective Date or such later
date (up to thirty (30) days) specified in the Disability Notice of Termination; (iii) if the Executive's employment is terminated by the Company for Cause or by the Executive for Good
Reason, the date on which the Notice of Termination is given; and (iv) if the Executive's employment is terminated by either party for any other reason, the date specified in the Notice of
Termination, which date shall in no event be earlier than the 30th day after the date such notice is given (such thirty (30) day period, the "Notice
Period"); provided, however, that in lieu of a thirty (30) day Notice Period, the Company may accept or give 

6

 

a
shorter notice period (or no notice period) and place the Executive on paid leave during the Notice Period. 

        6.     OBLIGATIONS OF THE COMPANY UPON TERMINATION.

        (a)   Termination by the Company Without Cause or by the Executive for Good Reason.    If, during the Employment
Term, the Company shall terminate the Executive's employment hereunder without Cause, or the Executive shall terminate the Executive's employment for Good Reason, the Executive shall be entitled to
receive, as his exclusive right and remedy in respect of such termination: (i) the payment of (A) all Accrued Obligations plus
(B) at the time the Company pays its executives bonuses in accordance with its general payroll policies, the Pro Rata Bonus, plus
(C) severance pay equal to one-twelfth (1/12) of the Executive's Base Salary and Annual Bonus as of the Date of Termination for each of the first eighteen
(18) months from and following the Date of Termination, payable in accordance with the Company's regular pay schedule and policies and (ii) the provision of the Welfare Benefit
Continuation. 

         For
purposes of this Agreement, "Accrued Obligations" shall mean, (1) all Base Salary earned by the Executive but
unpaid as of the Date of Termination, (2) reimbursement for any and all monies advanced in connection with the Executive's employment for reasonable and necessary expenses incurred by the
Executive through the Date of Termination and (3) all other payments and benefits to which the Executive may be entitled under the terms of any applicable compensation arrangement or benefit
plan or program of the Company. For purposes of this Agreement, "Pro Rata Bonus" shall mean, as to any fiscal year of the Company in which the
Executive's employment with the Company is terminated, an amount equal to that pro rata portion of the Executive's Annual Bonus which, but for the Executive's termination of employment, would have
been earned by the Executive during such year. Such pro rata portion shall be determined based upon a formula, the denominator of which shall be 365 and the numerator of which shall be the number of
days during the Company's fiscal year in question which the Executive was employed by the Company on active status (including any period of paid leave in lieu of a notice period, as contemplated by  Section 5(h)
 of this Agreement). For purposes of this Agreement, "Welfare Benefit Continuation"
shall mean provision of welfare benefits such that the Executive shall continue to be covered, upon the same terms and conditions described in  Section 4(d)(ii) hereof, by the same or
equivalent medical, dental and life insurance coverage as in effect for the Executive and the
Executive's family immediately prior to the Date of Termination until the earlier of (x) the expiration of the period for which the Executive receives severance pay pursuant to this Agreement
and (y) the date the Executive has commenced new employment and has thereby become eligible for other benefits coverage, subject to the Executive's rights under the Consolidated Omnibus Budget
Reconciliation Act (COBRA). 

7

  

        (b)   Death.    If the Executive's employment is terminated by reason of the Executive's death during the Employment
Term, this Agreement shall terminate without further obligations to the Executive's heirs, executors, administrators or other legal representatives under this Agreement, other than for payment of all
Accrued Obligations. 

        (c)   Disability.    If the Executive's employment is terminated by reason of the Executive's Disability during the
Employment Term, this Agreement shall terminate without further obligations to the Executive, other than for payment of all Accrued Obligations;  provided, however, that any amounts payable by the Company to the Executive pursuant to this  Section 6(c) shall be reduced by the amount of any disability insurance payments or benefits paid to the Executive
pursuant to insurance, if any
provided under Section 4(d) above. 

        (d)   Termination by the Company for Cause.    If the Executive's employment is terminated for Cause during the
Employment Term, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay to the Executive his Accrued Obligations through the Date of Termination,
to the extent theretofore unpaid. 

        (e)   Termination by the Executive.    If the Executive voluntarily terminates the Executive's employment during the
Employment Term, excluding a termination for Good Reason, this Agreement shall terminate without further obligations to the Executive, other than for Accrued Obligations. 

        (f)    Accrued Benefits.    Notwithstanding anything else herein to the contrary, all Accrued Obligations to which the
Executive (or his estate or beneficiary) is entitled shall be payable in cash promptly upon termination of his employment, except as otherwise specifically provided herein, or under the terms of any
applicable policy, plan or program. 

        (g)   Complete Payment.    The payments and other benefits to be made or to be extended to the Executive under the
provisions of this Section 6 upon termination of the Executive's employment shall be in complete satisfaction of any and all payments that would
otherwise be due the Executive had he remained employed by the Company during the remainder of the Employment Term and the Company shall have no further obligation to make any payment or extend any
benefit to the Executive pursuant to this Agreement or otherwise upon or after such termination. Except as specifically provided in this  Section 6, the Executive shall not be entitled to any
compensation, severance or other benefits from the Company or any of its subsidiaries or
affiliates upon the termination of this Agreement for any reason whatsoever. Acceptance by the Executive of performance by the Company shall constitute full settlement of any claims that the Executive
might otherwise assert against the Company, its affiliates or
any of their respective equityholders, partners, directors, officers, employees or agents relating to such termination. The Executive shall not be entitled to any severance or other payments upon
termination of employment except pursuant to this Agreement. 

        7.     PROPRIETARY
INFORMATION; INVENTIONS IN THE FIELD. 

        (a)   Proprietary Information.    In the course of service to the Company, the Executive will have access to
confidential information regarding the organization, business and finances of the Company and its affiliated companies, including products, services, designs, methods, techniques, systems,
specifications, know-how, strategic or technical data, marketing research data, product research and development data, sales techniques, confidential customer lists and information,
sources of supply and trade secrets, all of which are confidential and may be proprietary and are owned or used by the Company, or any of its affiliates. Such information shall hereinafter be called
"Proprietary Information" and shall include any and all items enumerated in the preceding sentence and coming within the scope of the business of the
Company or any of its affiliated companies as to which the Executive may have access, whether conceived or developed by others 

8

 

or
by the Executive alone or with others during the period of service to the Company, whether or not conceived or developed during regular working hours. Proprietary Information shall not include any
records, data or information which are (i) in the public domain during or after the Employment Term provided the same are not in the public domain as a consequence of disclosure directly or
indirectly by the Executive in violation of this Agreement, (ii) required to be disclosed by law, or (iii) reasonably required to be disclosed in defending any suit, proceeding or
investigation to which the Executive is a party. 

        (b)   Fiduciary Obligations.    The Executive agrees that Proprietary Information is of critical importance to the
Company and a violation of this Section 7 would seriously and irreparably impair and damage the Company's business. The Executive agrees that he
shall keep all Proprietary Information in a fiduciary capacity for the sole benefit of the Company. 

        (c)   Non-Use and Non-Disclosure.    The Executive shall not during the Employment Term or at
any time thereafter: (i) disclose, directly or indirectly, any Proprietary Information to any person, other than any person who, in the reasonable judgment of the Executive, needs to know such
Proprietary Information or such other persons to whom the Executive has been specifically instructed to make disclosure by the Board and in all such cases only to the extent required in the course of
the Executive's service to the Company; or (ii) use any Proprietary Information, directly or indirectly, for the Executive's own benefit or for the benefit of any person or entity other than
the Company. 

        (d)   Assignment of Inventions.    The Executive agrees to assign and transfer to the Company or its designee,
without any separate remuneration or compensation, his entire right, title and interest in and to all Inventions in the Field (as defined below), together with all United States and foreign rights
with respect thereto, and, at the Company's expense, to execute and deliver all appropriate patent and copyright applications for securing United States and foreign patents and copyrights on
Inventions in the Field and to perform all lawful acts, including giving testimony, and to execute and deliver all such instruments that may be necessary or proper to vest all such Inventions in the
Field and patents and copyrights with respect thereto in the Company, and to assist the Company in the prosecution or defense of any interference which may be declared involving any of said patent
applications, patents, copyright applications or copyrights. For the purposes of this Agreement, the words "Inventions in the Field" shall include any
discovery, process, design, development, improvement, application, technique, or invention, whether patentable or copyrightable or not and whether reduced to practice or not, conceived, created,
discovered, invented or made by the Executive, individually or jointly with others (whether on or off the Company's premises or during or after normal working hours), while in the employ of the
Company or any of its affiliated companies, and which was or is directly or indirectly related to the business of the Company or any of its affiliated companies or suppliers or customers, or which
resulted or results from any work performed by, or use of any Documents, Property or other personal property of the Company (whether tangible or intangible and whether owned, leased or contracted for)
by, any executive, employee or agent of the Company or any of its affiliated companies. 

        (e)   Return of Documents.    All (i) notes, memoranda, reports, lists, letters, documents, records,
specifications, software programs, software code, data, tapes and other media of every kind, form and description relating to or within the scope of the business of the Company or any of its
affiliated companies and any copies, in whole or in part, thereof (collectively, the "Documents"), whether or not prepared by the Executive, and
(ii) all computers, cellular telephones, pagers, credit and/or calling cards, keys, access cards or other personal property of or relating to the Company or any of its affiliated companies
(collectively, the "Property") shall be the sole and exclusive property of the Company. The Executive shall safeguard all Documents and Property and
shall surrender to the Company within five (5) days of any Date of Termination, or 

9

 

at
such earlier time or times as the Board or its designee may specify, all Documents and Property then in the Executive's possession or control;  provided, however, that the Executive may retain a copy of any personnel-related materials relating to
his employment with the Company, including, but not limited to, this Agreement, any compensation or benefit plan or program, or any awards or evidence of participation in such plans or programs, or
any other communications to or from the Company related to Executive's employment. During the Employment Term, the Executive shall not make, use or permit to be used any Documents or Property
otherwise than for the benefit of the Company. After the Employment Term, the Executive shall not use or permit others to use any Documents or Property. 

        (f)    Acknowledgement.    This Section 7 shall not be
construed to unreasonably restrict the Executive's ability to disclose Proprietary Information in an arbitration or court proceeding regarding the assertion of, or defense against, any claim of breach
of this Agreement. 

        8.     RESTRICTIONS
ON ACTIVITIES OF THE EXECUTIVE. 

        (a)   Acknowledgments.    The Executive and Company acknowledge and agree that the Executive is being employed
hereunder in a key capacity with the Company and that the Company is engaged in a highly competitive business and that the success of the Company's business in the marketplace depends upon its
goodwill and reputation for quality and dependability. The Executive and the Company further acknowledge and agree that (i) reasonable limits may be placed on the Executive's ability to compete
against the Company and its affiliated companies as provided herein to the extent that they protect and preserve the legitimate business interests and goodwill of the Company and/or its affiliated
companies and (ii) such limits are (A) in consideration for and as an inducement for, among other things, the Executive's ability to receive awards of Class B Common Units, and
the continued employment of the Executive by the Company, (B) the result of arms-length negotiations between the parties, (C) reasonable in scope and duration, and
(D) necessary to protect the legitimate business interests of the Company and its affiliated companies. In addition, the Executive acknowledges (1) that the business of the Company and
its affiliated companies is international in scope and without geographical limitation and (2) notwithstanding the state of incorporation or formation or principal office or location of the
Company or any of its affiliated companies, or any of their respective executives or employees (including the Executive), it is expected that the Company will have business activities and have
valuable business relationships within its industry throughout the United States and the world. The Executive acknowledges that he has carefully read this Agreement and has given careful consideration
to the restraints imposed upon the Executive by this Agreement, and is in full accord as to their necessity for the reasonable and proper protection of the Proprietary Information, whether now
existing or to be developed in the future. The Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time
period and geographical area. 

        (b)   Non-Competition Restrictions.    During the Non-Competition Period (as defined below),
the Executive will not and will not permit any of his Affiliates (as defined below) to anywhere in the Territory (as defined below) engage or participate in, directly or indirectly, alone or as
principal, agent, employee, employer, consultant, investor or partner of, or assist in the management of, or provide advisory or other services to, or own any stock or any other ownership interest in,
or make any financial investment in, any business or entity which is Competitive with the Company (as defined below); provided,  however, that the ownership
of not more than two percent (2%) of the outstanding securities of any class of securities listed on a national exchange or
inter-dealer quotation system shall not constitute a violation of this Section 8(b). For purposes of this Agreement, a business or entity shall
be considered "Competitive with the Company" as of any point in time during the Non-Competition Period if it competes with (A) the
products then marketed or sold by the Company and/or any of its affiliated companies and as such products may 

10

 

be
improved and/or modified, (B) the services then marketed, sold or provided by the Company and/or any of its affiliated companies and as such services may be improved and/or modified or
(C) the products and/or services that the Company and/or any of its affiliated companies is then actively developing, designing, marketing, producing or supplying in the future including,
without limitation, the business of providing financial products or services, including those involving or related to exchange-traded derivatives, managed futures, prime brokerage services, fixed
income securities, foreign exchange, equities, over-the-counter derivatives and asset management of structured products related to the Company's core business. For purposes of
this Agreement, the "Non-Competition Period" shall mean the period commencing on the Effective Date and ending eighteen (18) months
after the date of termination of the Executive's employment with the Company, whether such termination is pursuant to this Agreement or otherwise. For purposes of this  Section 8(b), "Affiliates" shall mean, with respect to any person, any other person who directly
or indirectly controls, is controlled by or is under common control with such person. For purposes of this Agreement, "Territory" shall mean the States
of New York and Illinois and every other State or foreign country where the Company and/or any of its affiliated companies maintains employees, owns or leases property or otherwise conducts business
during the Non-Competition Period. 

        (c)   Non-Solicitation and No-Hire Restrictions.    During the Non-Competition
Period, the Executive will not and will not permit any of his Affiliates to (i) solicit, or attempt to solicit any officer, director, consultant or executive of the Company or any of its
affiliated companies (each such individual, a "Company Affiliate") to leave his or her engagement with the Company or such affiliated company,
(ii) hire any Company Affiliate or (iii) call upon, solicit, divert or attempt to solicit or divert from the Company or any of its affiliated companies any of their customers or
suppliers or potential or prospective customers or suppliers of whom the Executive was aware were potential customers prior to or during the Employment Term in any manner that harms or interferes with
such person's relationship with the Company; provided, however, that nothing in this  Section 8(c) shall
be deemed to prohibit the Executive from calling upon or soliciting a customer or supplier of the Company or any affiliated
company during the Non-Competition Period if such action relates solely to a business which is not Competitive with the Company; provided,  further, that
nothing in this Section 8(c) shall be deemed to prohibit the Executive from
(A) soliciting or hiring any Company Affiliate if such Company Affiliate is a member of the Executive's immediate family; (B) placing advertisements in newspapers or other media of
general circulation advertising employment opportunities; and (C) hiring any Company Affiliate who responds to such advertisements without any prior notice thereof by the Executive or any of
his Affiliates; provided that such Company Affiliate was not otherwise solicited by the Executive or any of his Affiliates in violation of this Agreement. 

        (d)   Non-Disparagement Restrictions.    Each of the Executive and the Company covenants and agrees that
during the Non-Competition Period, such party will not, directly or indirectly, either in writing or by any other medium, make any disparaging, derogatory or negative statement, comment or
remark about the other party or any of its affiliated companies, or Thomas H. Lee Partners or any of its affiliates, or any of their respective officers, directors, employees, affiliates,
subsidiaries, successors and assigns, as the case may be; provided, however, that either party may make
such statements, comments or remarks as are necessary to comply with law. 

        (e)   The Executive's Skills and Abilities.    THE EXECUTIVE REPRESENTS AND WARRANTS THAT THE KNOWLEDGE, SKILLS AND
ABILITIES HE POSSESSES AT THE TIME OF COMMENCEMENT OF EMPLOYMENT HEREUNDER ARE SUFFICIENT TO PERMIT HIM, IN THE EVENT OF TERMINATION OF HIS EMPLOYMENT HEREUNDER, TO EARN A LIVELIHOOD SATISFACTORY TO
HIMSELF WITHOUT VIOLATING ANY PROVISION OF SECTION 7 OR SECTION 8 HEREOF, FOR EXAMPLE, BY
USING SUCH 

11

 

KNOWLEDGE,
SKILLS AND ABILITIES, OR SOME OF THEM, IN THE SERVICE OF A BUSINESS THAT IS NOT COMPETITIVE WITH THE COMPANY. 

        (f)    The
Executive will not circumvent the purpose of any restriction contained in this Section 8 by engaging in
business outside the Territory through remote means such as telephone, correspondence or computerized communication. 

        9.     REPRESENTATIONS
AND WARRANTIES. 

        (a)   The
Company represents and warrants to the Executive that the execution, delivery, and performance by the Company of this Agreement have been duly authorized by all
necessary limited liability company action of the Company and do not and will not conflict with or result in a violation of any provision of, or constitute a default under, any material contract,
agreement, instrument, or obligation to which the Company is a party or by which it is bound. 

        (b)   The
Executive represents and warrants to the Company that the execution, delivery, and performance by the Executive of this Agreement do not and will not conflict with
or result in a violation of any provision of, or constitute a default under, any material contract, agreement, instrument, or obligation to which the Executive is a party or by which the Executive is
bound. 

        10.   INDEMNIFICATION;
DIRECTORS AND OFFICERS INSURANCE.    The Company agrees that in connection with the Executive's service to the Company pursuant hereto, the
Executive shall be entitled to the benefit of any indemnification provisions in the Company's Limited Liability Company Agreement and/or any of its affiliated companies and any director and officer
liability insurance coverage carried by the Company and/or any of its affiliated companies, if any. 

        11.   INJUNCTIVE
RELIEF.    In recognition of the fact that a breach by the Executive of any of the provisions of  Section 7 or Section 8
hereof will cause irreparable damage to the Company for which
monetary damages alone will not constitute an adequate remedy, the Company shall be entitled as a matter of right (without being required to prove damages or furnish any bond or other security) to
obtain a restraining order, an injunction, an order of specific performance, or other equitable or extraordinary relief from any court of competent jurisdiction restraining any further violation of
such provisions by the Executive or requiring the Executive to perform the Executive's obligations hereunder. Such right to equitable or extraordinary relief shall not be exclusive but shall be in
addition to all other rights and remedies to which the Company may be entitled at law or in equity, including without limitation the right to recover monetary damages for the breach by the Executive
of any of the provisions of this Agreement. 

        12.   GOVERNING
LAW.    This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New
York. 

12

   
        13.   NOTICES.    All notices, requests and demands to or upon the parties hereto to be effective shall be in writing, by facsimile, by overnight courier or by
registered or certified mail, postage prepaid and return receipt requested, and shall be deemed to have been duly given or made upon: (a) delivery by hand, (b) one business day after
being sent by nationally recognized overnight courier; or (c) in the case of transmission by facsimile, when confirmation of receipt is obtained. Such communications shall be addressed and
directed to the parties as follows (or to such other address as either party shall designate by giving like notice of such change to the other party): 

        (i)    if
to the Company: 

Refco
Group Ltd., LLC

One World Financial Center

200 Liberty Street

New York, NY 10281

Attention: Board of Managers 

with
a copy (which shall not constitute notice to the Company) to: 

Weil,
Gotshal & Manges LLP

100 Federal Street

Boston, MA 02110

Attention: James Westra 

        (ii)   if
to the Executive: 

with
a copy (which shall not constitute notice to the Executive) to: 

or
to such other address as the party to whom notice is given may have previously furnished to the other in writing in the manner set forth above. 

        14.   BINDING
EFFECT; NO THIRD PARTY BENEFIT. 

        (a)   This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive. This Agreement shall inure to
the benefit of and shall be enforceable by the Executive and the Executive's legal representatives. 

        (b)   This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

        (c)   The
Company shall require any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all the business
and/or assets of the Company, by agreement in writing, expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it
if no such succession or assignment had taken place. As used in this Agreement, the "Company" shall mean the Company as hereinabove defined and any successor or assign to its business and/or assets as
aforesaid which executes and delivers this Agreement provided for in this Section 14(c) or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law. 

13

 

        (d)   Nothing
in this Agreement, express or implied, is intended to or shall confer upon any person other than the parties hereto, and their respective heirs, legal
representatives, successors, and permitted
assigns, any rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement. 

        15.   MISCELLANEOUS.

        (a)   Amendment.    This Agreement may not be modified or amended in any respect except by an instrument in writing
signed by each of the Company and the Executive. No person, other than pursuant to a resolution of the Board or a committee thereof, shall have authority on behalf of the Company to agree to modify,
amend, or waive any provision of this Agreement or anything in reference thereto. 

        (b)   Waiver.    Any term or condition of this Agreement may be waived at any time by the party hereto which is
entitled to have the benefit thereof, but such waiver shall only be effective if evidenced by a writing signed by such party, and a waiver on one occasion shall not be deemed to be a waiver of the
same or any other type of breach on a future occasion. No failure or delay by a party hereto in exercising any right or power hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right or power. 

        (c)   Withholding Taxes.    The Company may withhold from any amounts payable under this Agreement such federal,
state, local, or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 

        (d)   Nonalienation of Benefits.    The Executive shall not have any right to pledge, hypothecate, anticipate, or in
any way create a lien upon any payments or other benefits provided under this Agreement; and no benefits payable hereunder shall be assignable in anticipation of payment either by voluntary or
involuntary acts, or by operation of law, except by will or pursuant to the laws of descent and distribution. 

        (e)   Attorneys' Fees.    The Executive and the Company agree that in any court, arbitration or other dispute
resolution proceedings arising out of this Agreement, the prevailing party shall be entitled to its or his reasonable attorneys' fees and costs incurred by it or him in connection with resolution of
the dispute in question in addition to any other relief granted thereby. 

        (f)    Severability.    The parties agree that each provision herein shall be treated as a separate and independent
clause, and the unenforceability of any one clause shall in no way impair the enforceability of any other clauses of this Agreement. If any one or more provisions of this Agreement is held to be
invalid or unenforceable for any reason, including due to being overbroad in scope activity, subject or otherwise: (i) this Agreement shall be considered divisible; (ii) such provision
shall be deemed inoperative to the extent it is deemed invalid or unenforceable; and (iii) in all other respects this
Agreement shall remain full force and effect; provided, however, that if any such provision maybe made
valid or enforceable by limitation thereof, then such provision shall be deemed to be so limited and shall be valid and/or enforceable to the maximum extent permitted by applicable law. 

        (g)   Entire Agreement.    All of (i) this Agreement, (ii) the Company's Limited Liability Company
Agreement, (iii) that certain Securityholders' Agreement, dated as of the Effective Date, by and among the Company and certain of its securityholders, as amended, modified or supplemented from
time to time, and (iv) that certain Restricted Unit Agreement, to be dated as of the Effective Date and executed by the Executive and the Company in connection with an award of any
Class B Units to the Executive, constitute the entire agreement and understanding of the parties hereto concerning the Executive's employment with the Company and from and after the Effective
Date, this Agreement shall supersede any other prior negotiations, discussions, 

14

 

writings,
agreements or understandings, both written and oral, between the parties with respect to such subject matter. 

        (h)   Captions.    The captions herein are inserted for convenience of reference only, do not constitute a part of
this Agreement, and shall not affect in any manner the meaning or interpretation of this Agreement. 

        (i)    References.    All references in this Agreement to Sections, subsections and other subdivisions refer to the
Sections, subsections and other subdivisions of this Agreement unless expressly provided otherwise. The words "this Agreement," "herein," "hereof'," "hereunder," and words of similar import refer to
this Agreement as a whole and not to any particular subdivision unless expressly so limited. Whenever the words "include," "includes," and "including" are used in this Agreement, such words shall be
deemed to be followed by the words "without limitation." Words in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires. 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer, and the Executive has executed this Agreement, as of the date first
above set forth. 

	EXECUTIVE	 	REFCO GROUP LTD., LLC
	
 /s/  GERALD M. SHERER      
 Gerald M. Sherer	
 	

By:	

/s/  PHILLIP BENNETT      
 Name: Phillip Bennett

Title: President and CEO

15

QuickLinks

Exhibit 10.25

EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT BY AND BETWEEN REFCO GROUP LTD., LLC AND GERALD M. SHERER DECEMBER 6, 2004

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