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The following is an excerpt from a 10-K SEC Filing, filed by TUDOR FUND FOR EMPLOYEES LP on 3/30/2001.
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TUDOR FUND FOR EMPLOYEES LP - 10-K - 20010330 - FINANCIAL_STATEMENTS

ITEM 8. Financial Statements and Supplementary Data.

See attached financial statements for:

Statements of Financial Condition as of December 31, 2000 and 1999

Statements of Operations for the years ended December 31, 2000, 1999 and 1998

Statements of Changes in Partners' Capital for the years ended December 31, 2000, 1999 and 1998

Notes to Financial Statements, December 31, 2000, 1999 and 1998

The financial statements presented have been prepared pursuant to rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management of the General Partner, includes all adjustments necessary for a fair statement of each year presented.

12

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None

PART III.

ITEM 10. Directors and Executive Officers of the Registrant.

Second Management LLC, a Delaware limited liability company (the "General Partner"), is the general partner of the Partnership. The General Partner's principal office is located at 1275 King Street, Greenwich, Connecticut 06831; Telephone No. 203-863-6700; and Facsimile No. 203-863-8600. The General Partner is registered with the CFTC as a CPO and CTA and is a member of the NFA in such capacities.

Tudor Investment Corporation, a Delaware corporation ("TIC"), is the Trading Advisor to the Partnership. TIC's principal office is located at 1275 King Street, Greenwich, Connecticut 06831; Telephone No. 203-863-6700; and Facsimile No. 203-863-8600. TIC is registered with the CFTC as a CPO and CTA and is a member of the NFA in such capacities.

TIC and its United Kingdom affiliate, Tudor Capital (U.K.), L.P., act as general partner and/or trading advisor or sub-advisor to other United States and non-United States investment funds that invest in global (including emerging market) fixed income and equity securities, currencies, commodities, and derivatives.

The Board of Directors of the Trading Advisor consists of the following people:

Paul Tudor Jones, II
Mark F. Dalton
John G. Macfarlane, III
James J. Pallotta
Andrew S. Paul
Mark Pickard
Mark V. Houghton-Berry
Robert P. Forlenza
Richard L. Fisher

With the exception of Mr. Fisher, all of the Directors are senior officers of the Trading Advisor and/or its affiliates.

Paul Tudor Jones, II, age 46, is the Chairman and Chief Executive Officer and the controlling stockholder of the Trading Advisor, which is a trading advisor and pool operator for several commodity pools and investment funds. Mr. Jones has traded commodity interests for his proprietary accounts since September 1977 and for customer accounts since January 1981. Mr. Jones is a member of the Commodity Exchange, Inc., the New York Board of Trade, Inc., the Chicago Board of Trade, and the Chicago Mercantile Exchange. In addition, Mr. Jones is a member of the Board of Directors of the Cantor Fitzgerald Futures Exchange. Mr. Jones served as Chairman of the New York Cotton Exchange (which is now a division of the New York Board of Trade) from August 1992 through June 1995. Mr. Jones is the Founder and a Director of The Robin Hood Foundation, a charitable foundation, and is a Director of the National Fish and Wildlife Foundation and the Everglades Foundation Inc.

Mark F. Dalton, age 50, has been the President of the Trading Advisor since September 1988. Mr. Dalton is also a director of Progenics Pharmaceuticals, Inc., Cathay Investment Fund Limited and certain not-for-profit educational and charitable organizations. Mr. Dalton does not participate in the trading of commodity interest contracts for customer accounts of the Trading Advisor or its affiliates.

John G. Macfarlane, III, age 46, is the Chief Operating Officer and a Managing Director of the Trading Advisor. Prior to joining the Trading Advisor in January 1998, Mr. Macfarlane was employed by Salomon

13

Brothers and its affiliates where he served in various senior positions, including Managing Director and head of United States and Asian Fixed Income Derivatives and Treasurer. Mr. Macfarlane is a Director of the Futures Industry Association. Mr. Macfarlane does not participate in the trading of customer accounts of the Trading Advisor or its affiliates.

James J. Pallotta, age 43, is a Managing Director and the Director--U.S. Equities Group of the Trading Advisor. Mr. Pallotta was previously a principal portfolio manager at Essex Investment Management, Inc. ("Essex"). He joined Essex in 1983 as a Vice President, became a Senior Vice President and the Director of Research in 1989, and commenced actively directing the management of client funds in January 1989. He became a member of the Board of Directors of Essex in 1990. Mr. Pallotta joined the Trading Advisor in August 1993.

Andrew S. Paul, age 48, is a Managing Director, the General Counsel and the Secretary of the Trading Advisor. Mr. Paul joined the Trading Advisor in July 1989. Mr. Paul does not participate in the trading of customer accounts for the Trading Advisor or its affiliates.

Mark Pickard, age 45, is a Managing Director and the Chief Financial Officer of the Trading Advisor. From May 1995 until June 1996, Mr. Pickard was a Managing Director of Tudor Software, L.L.C. Mr. Pickard does not participate in the trading of customer accounts for the Trading Advisor or its affiliates.

Mark V. Houghton-Berry, age 42, is a Managing Director of the affiliates of the Trading Advisor that maintain offices in Surrey, England. Prior to joining Tudor in July 1995, Mr. Houghton-Berry was an Executive Director and Head of Proprietary Trading in London with Goldman Sachs International.

Robert P. Forlenza, age 45, is a Managing Director of the Trading Advisor. Mr. Forlenza joined the Trading Advisor in January 1995. From 1989 until January 1995, Mr. Forlenza was a Vice President of Carlisle Capital Corporation, a private leveraged buyout firm. Mr. Forlenza does not participate in the trading of commodity interest contracts for customer accounts of the Trading Advisor or its affiliates.

Richard L. Fisher, age 47, is an outside Director of the Trading Advisor. Since September 1983, Mr. Fisher has been a Managing Director of Dunavant Enterprises, Inc. Mr. Fisher has been a Director of the Trading Advisor since June 1991. Mr. Fisher does not participate in the trading or day-to-day management of the Trading Advisor or its affiliates.

There have been no material administrative, civil or criminal actions against the General Partner, TIC or any of their executive officers or directors within the last five years, except as follows.

On September 12, 1996, TIC settled a proceeding with the SEC related to alleged violations of the "uptick rule" in connection with certain sales of stock over a two-day period in March 1994. Without admitting or denying the SEC's findings, TIC paid a civil penalty of $800,000 and agreed not to violate the uptick rule in the future. This settlement did not have a material adverse effect on the business, financial condition or results of operations of TIC, the General Partner or the Partnership.

ITEM 11. Executive Compensation.

The Partnership has no officers or directors. The General Partner administers the business and affairs of the Partnership. Mr. Jones, the Chairman, Chief Executive Officer and controlling shareholder of the General Partner receives no compensation from the Partnership. TIC earned $656,067, $357,955, and $641,936 in incentive and management fees from the Partnership during 2000, 1999 and 1998.

14

ITEM 12. Security Ownership of Certain Beneficial Owners and Management.

(a) Security Ownership of Certain Beneficial Owners. As of March 1, 2001, the only Unit holders who owned more than five percent (5%) of the total Units outstanding were:

                                                              No.
Name                     Address                             Units    Percent
----                     -------                            -------   -------
Tudor 401K Savings and   1275 King Street                   707.499    18.1%
Profit-Sharing Plan      Greenwich, CT 06831

Robert P. Forlenza (1)   c/o Tudor Investment Corporation   229.498     5.9%
                         1275 King Street
                         Greenwich, CT 06831

Mark Pickard (2)         c/o Tudor Investment Corporation   223.004     5.7%
                         1275 King Street
                         Greenwich, CT 06831

Second Management LLC    1275 King Street                   196.580     5.0%
                         Greenwich, CT 06831


(1) Robert P. Forlenza is a Managing Director and Director of TIC.
(2) Mark Pickard is a Managing Director and the Chief Financial Officer of the General Partner and TIC and a Director of TIC.

(b) Security Ownership of Management. As of January 1, 2001, the General Partner and the executive officers of the General Partner collectively owned 16.47% of the outstanding interests in the Partnership. As of January 1, 2001, in addition to the persons identified in the table above, Mark Dalton and Andrew Paul, each of whom is a principal of both the General Partner and the Trading Advisor, owned 118.8156 Units (3.04%) and 105.6967 Units (2.70%), respectively.

(c) Changes in Control. There have been no changes in control of the Partnership.

ITEM 13. Certain Relationships and Related Transactions.

(a) Transactions with Management and Others.

See Item 1(a), General Development of Business, Management; Item 1(c)
(1)(x), Narrative Description of Business, Competition; Item 11, Executive Compensation; and Note 6--"Related Party Transactions" of "Notes To Financial Statements" in the accompanying Financial Statements.

(b) Certain Business Relationships.

(1) None.

(2) The Partnership incurred incentive and management fees payable to TIC of $656,067, $357,955 and $641,936 for the years ended December 31, 2000, 1999, and 1998, which were in excess of 10% of the Partnership's total revenue of $5,538,110, $1,981,370, and $5,159,521 for the respective periods referred to above.

(3) None.

(4) Not applicable.

(5) Not applicable.

15

PART IV.

ITEM 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.

(a) 1. Financial Statements.

The following financial statements and report of independent public accountants are set forth in the annexed financial statements:

Report of Independent Public Accountants Statements of Financial Condition as of December 31, 2000 and 1999 For the years ended December 31, 2000, 1999 and 1998:
Statements of Operations
Statements of Changes in Partners' Capital Notes to Financial Statements, December 31, 2000, 1999 and 1998

The Partnership meets all the provisions of SFAS No. 102, Paragraph 7, "Statement of Cash Flows--Exemption of Certain Enterprises and Classification of Cash Flows from Certain Securities Required for Resale." Therefore, statements of cash flows have not been provided.

2. No financial statement schedules are required to be filed.

3. Exhibits. (unless otherwise indicated, each Exhibit was previously filed and has not been amended in any material respect).

1.01 Form of Selling Agreement among Cargill Investor Services, Inc., Second Management LLC, and the Partnership.

3.01 Form of Second Amended and Restated Limited Partnership Agreement of the Partnership.

3.02(a) Certificate of Limited Partnership of the Partnership.

3.02(b) Amendment to the Certificate of Limited Partnership of the Partnership.

10.01(a) Form of Amended and Restated Customer Foreign Exchange Agreement between the Partnership and Bellwether Partners LLC.

10.02(a) Form of Management Agreement among the Partnership, Second Management Company, Inc. (succeeded by Second Management LLC), and Tudor Investment Corporation.

10.02(b) Form of Amendment to Management Agreement among the Partnership, Second Management Company, Inc., and Tudor Investment Corporation.

10.03(a) Form of Subscription Agreement and Power of Attorney to be executed by purchasers of Units who are individuals.

10.03(b) Form of Subscription Agreement and Power of Attorney to be executed by a Trustee of the Tudor Investment Corporation
401(k) Savings and Profit-Sharing Plan.

10.03(c) Form of Representations to be made by participants in the Tudor Investment Corporation 401(k) Savings and Profit Sharing Plan.

10.03(d)Form of Subscription Agreement for use in making additions to existing accounts.

10.04(a) Form of Escrow Agreement among the Partnership, Seventh Management, Inc., and United States Trust Company of New York.

10.04(b) Form of Amendment to Escrow Agreement among the Partnership, Cargill Investor Services, Inc., and United States Trust Company of New York.

(b) Reports on Form 8-K.

No reports on Form 8-K were filed during the year ended December 31, 2000.

16

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Tudor Fund For Employees L.P.

By: Second Management LLC,
General Partner

By: _________________________________
Mark F. Dalton President

Date: March 30, 2001

Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SECOND MANAGEMENT LLC

March 30, 2001

By: _________________________________ Paul T. Jones, II, Chairman and Chief Executive Officer

March 30, 2001

By: _________________________________ Mark F. Dalton, President

March 30, 2001

By: _________________________________ John Macfarlane, Managing Director and Chief Operating Officer

March 30, 2001

By: _________________________________ Mark Pickard, Managing Director and Chief Financial Officer

March 30, 2001

By: _________________________________ Andrew S. Paul, Managing Director, General Counsel and Secretary

17

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Tudor Fund For Employees L.P.

By: Second Management LLC,
General Partner

                                                    /s/ Mark F. Dalton
                                          By: _________________________________
                                                Mark F. Dalton President

Date: March 30, 2001

Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SECOND MANAGEMENT LLC

              /s/ Paul T. Jones, II               March 30, 2001
By: _________________________________
         Paul T. Jones, II, Chairman and
             Chief Executive Officer

               /s/ Mark F. Dalton                 March 30, 2001
By: _________________________________
            Mark F. Dalton, President

               /s/ John Macfarlane                March 30, 2001
By: _________________________________
       John Macfarlane, Managing Director
           and Chief Operating Officer

                /s/ Mark Pickard                  March 30, 2001
By: _________________________________
         Mark Pickard, Managing Director
           and Chief Financial Officer

               /s/ Andrew S. Paul                 March 30, 2001
By: _________________________________
       Andrew S. Paul, Managing Director,
          General Counsel and Secretary

18

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Partners of
Tudor Fund For Employees L.P.:

We have audited the accompanying statements of financial condition of Tudor Fund For Employees L.P. (a Delaware limited partnership) as of December 31, 2000 and 1999, and the related statements of operations and changes in partners' capital for each of the three years in the period ended December 31, 2000. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tudor Fund For Employees L.P. as of December 31, 2000 and 1999, and the results of its operations for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States.

                                        /s/ Arthur Andersen LLP

New York, New York
March 8, 2001

19

TUDOR FUND FOR EMPLOYEES L.P.

STATEMENTS OF FINANCIAL CONDITION

December 31, 2000 and 1999

                                                         2000        1999
                                                      ----------- -----------
                      ASSETS

Cash and cash equivalents............................ $25,307,514 $19,825,187
Due from brokers.....................................   2,610,863   2,416,977
                                                      ----------- -----------
  Total assets....................................... $27,918,377 $22,242,164
                                                      =========== ===========

           LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
  Pending partner additions............................ $ 4,931,369 $ 3,067,980
  Redemptions payable..................................     369,794   2,654,830
  Incentive fee payable................................     339,869      62,184
  Management fee payable...............................      29,661      51,617
  Accrued professional fees and other..................      86,612      73,338
                                                        ----------- -----------
    Total liabilities..................................   5,757,305   5,909,949
                                                        ----------- -----------

PARTNERS' CAPITAL:
  Limited Partners, 20,000 units authorized and
   2,926.555
   and 2,650.276 units outstanding as of December 31,
   2000 and 1999....................................... $20,766,179 $15,204,445
  General Partner, 196.580 units outstanding as of
   December 31, 2000 and 1999..........................   1,394,893   1,127,770
                                                        ----------- -----------
    Total partners' capital............................  22,161,072  16,332,215
                                                        ----------- -----------
    Total liabilities and partners' capital............ $27,918,377 $22,242,164
                                                        =========== ===========

The accompanying notes are an integral part of these statements.

20

TUDOR FUND FOR EMPLOYEES L.P.

STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2000, 1999 and 1998

                                                 2000        1999       1998
                                              ----------  ---------- ----------
Revenues:
  Net realized trading gain.................. $4,697,983  $1,048,971 $3,978,084
  Change in net unrealized trading gain
   (loss)....................................   (373,658)     84,556    519,794
  Interest income............................  1,213,785     847,843    661,643
                                              ----------  ---------- ----------
    Total revenues...........................  5,538,110   1,981,370  5,159,521
                                              ----------  ---------- ----------
Expenses:
  Brokerage commissions and fees.............    206,690     209,689    194,098
  Management fee.............................    316,198     295,771    239,867
  Incentive fee..............................    339,869      62,184    402,069
  Professional fees and other................    162,807     111,279    120,599
  Interest expense...........................      9,907       5,087      5,754
                                              ----------  ---------- ----------
    Total expenses...........................  1,035,471     684,010    962,387
                                              ----------  ---------- ----------
    Net income............................... $4,502,639  $1,297,360 $4,197,134
                                              ==========  ========== ==========

Limited Partners' Net Income................. $4,235,516  $1,220,159 $3,929,937
General Partner's Net Income.................    267,123      77,201    267,197
                                              ----------  ---------- ----------
  Net income................................. $4,502,639  $1,297,360 $4,197,134
                                              ==========  ========== ==========
  Change in Net Asset Value Per Unit......... $ 1,358.85  $   392.72 $ 1,359.22
                                              ----------  ---------- ----------
  Net Income Per Unit........................ $ 1,337.56  $   378.91 $ 1,327.46
                                              ----------  ---------- ----------

The accompanying notes are an integral part of these statements.

21

TUDOR FUND FOR EMPLOYEES L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

For the Years Ended December 31, 2000, 1999 and 1998

                            Limited Partners       General Partner                Net Asset
                         -----------------------  ------------------    Total       Value
                           Units       Capital     Units   Capital     Capital    Per Unit
                         ----------  -----------  ------- ---------- -----------  ---------
PARTNERS' CAPITAL,
 January 1, 1998........  2,186.284  $ 8,712,315  196.580 $  783,372 $ 9,495,687  $3,984.99

 Net income.............        --     3,929,937      --     267,197   4,197,134
 TIC 401(k) Plan unit
  adjustment (Note 3)...     24.416          --       --         --          --
 Capital contributions..  1,303.556    5,270,917      --         --    5,270,917
 Redemptions............   (924.435)  (4,072,626)     --         --   (4,072,626)
                         ----------  -----------  ------- ---------- -----------
PARTNERS' CAPITAL,
 December 31, 1998......  2,589.821   13,840,543  196.580  1,050,569  14,891,112  $5,344.21
 Net income.............        --     1,220,159      --      77,201   1,297,360
 TIC 401(k) Plan unit
  adjustment (Note 3)...     14.141          --       --         --          --
 Capital contributions..  1,051.500    5,489,765      --         --    5,489,765
 Redemptions............ (1,005.186)  (5,346,022)     --         --   (5,346,022)
                         ----------  -----------  ------- ---------- -----------
PARTNERS' CAPITAL,
 December 31, 1999......  2,650.276   15,204,445  196.580  1,127,770  16,332,215  $5,736.93

 Net income.............        --     4,235,516             267,123   4,502,639
 TIC 401(k) Plan unit
  adjustment (Note 3)...     27.169          --       --         --          --
 Capital contributions..    959.408    5,416,452      --         --    5,416,452
 Redemptions............   (710.298)  (4,090,234)     --         --   (4,090,234)
                         ----------  -----------  ------- ---------- -----------
PARTNERS' CAPITAL,
 December 31, 2000......  2,926.555  $20,766,179  196.580 $1,394,893 $22,161,072  $7,095.78
                         ==========  ===========  ======= ========== ===========  =========

The accompanying notes are an integral part of these statements.

22

TUDOR FUND FOR EMPLOYEES L.P.

NOTES TO FINANCIAL STATEMENTS

December 31, 2000, 1999 and 1998

1. Organization and Business

Tudor Fund For Employees L.P. (the "Partnership") was organized under the Delaware Revised Uniform Limited Partnership Act (the "Act") on November 22, 1989, and commenced trading operations on July 2, 1990. Second Management LLC (the "General Partner") is the general partner of the Partnership. Tudor Investment Corporation ("TIC"), an affiliate of the General Partner, acts as the trading advisor of the Partnership. The General Partner is registered with the Commodity Futures Trading Commission as a Commodity Pool Operator and a Commodity Trading Advisor and is a member of the National Futures Association in such capacities. Ownership of limited partnership units is restricted to either employees of TIC and its principals or its affiliates.

The objective of the Partnership is to realize capital appreciation through speculative trading of futures, forwards, option contracts and other derivative instruments, including commodity interests (collectively, "derivative instruments"). The Partnership will terminate on December 31, 2010 or at an earlier date if certain conditions occur as outlined in the Second Amended and Restated Partnership Agreement dated as of May 22, 1996 ("the Limited Partnership Agreement").

Duties of the General Partner

The General Partner acts as the commodity pool operator of the Partnership and is responsible for the selection and monitoring of the commodity trading advisors and the commodity brokers used by the Partnership. The General Partner is also responsible for the performance of all administrative services necessary to the Partnership's operations.

2. Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents include cash held at banks and overnight time deposits.

Revenue Recognition and Valuation Methodologies

Trading activities, including related revenues and expenses, are recorded on a trade date basis. Interest income and expense are recorded on the accrual basis.

Derivative instruments are valued at independent market values when available from major exchanges or, if none is available, at independent broker quotations or fair value as determined by management. In determining fair value, management utilizes pricing models with market quoted inputs and also considers closing exchange prices of related instruments, time value of money, volatility factors of the underlying instruments, and other market conditions. The valuations are comparable to those obtained from the counterparties to the contracts.

Brokerage Commissions and Fees

These expenses represent all brokerage commissions, exchange, National Futures Association and other fees incurred in connection with the execution and clearing of commodity interests trades. Commissions and fees associated with open commodity interests at the end of the period are accrued.

23

TUDOR FUND FOR EMPLOYEES L.P.

NOTES TO FINANCIAL STATEMENTS--(Continued)

December 31, 2000, 1999 and 1998

Incentive Fee

The Partnership pays TIC, as trading advisor, an incentive fee equal to 12% of the Net Trading Profits (as defined in the Limited Partnership Agreement), earned as of the end of each fiscal quarter of the Partnership. Since inception of the TIC 401(k) Savings and Profit-Sharing Plan (the "TIC 401(k) Plan"), TIC has waived its right to receive an incentive fee attributable to units held at the beginning of each month by the TIC 401(k) Plan.

Management Fee

The Partnership also pays TIC, for the performance of its duties, a monthly management fee equal to 1/12 of 2% (2% per annum) of the Partnership's net assets (as defined in the Limited Partnership Agreement). Since inception of the TIC 401(k) Plan, TIC has waived its right to receive a management fee attributable to units held at the beginning of each month by the TIC 401(k) Plan.

Foreign Currency Translation

Assets and liabilities denominated in foreign currencies are translated at year-end exchange rates. Gains and losses resulting from foreign currency transactions are calculated using daily exchange rates and are included in the accompanying statements of operations.

Due From Brokers

Due from brokers primarily consists of foreign currencies and cash balances carried as margin deposits with clearing brokers for the purpose of trading in commodity interests, futures contracts and other derivative instruments. Also included in due from brokers is the unrealized gains and losses on open commodity interests, futures contracts and other derivative instruments. As of December 31, 2000 and 1999, due from broker was comprised of $2,212,410 and $1,622,633 in cash balances and foreign currencies and $401,008 and $794,344 in unrealized gains on commodity interests, open futures contracts and other derivative instruments.

Pending Partner Additions

Pending partner additions is comprised of cash received prior to year-end for which units were issued on January 1 of the subsequent year. Pending partner additions did not participate in the earnings of the Partnership until the related units were issued.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management believes that the estimates utilized in preparing the financial statements are reasonable and prudent; however, actual results could differ from these estimates.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with current year presentation.

24

TUDOR FUND FOR EMPLOYEES L.P.

NOTES TO FINANCIAL STATEMENTS--(Continued)

December 31, 2000, 1999 and 1998

Recent Accounting Pronouncements

In September of 2000, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities--a replacement of FASB Statement No. 125" ("SFAS 140"). SFAS 140 amends the recognition and reclassification of collateral and disclosures related to securitization transactions and collateral. These changes are effective for fiscal years ending after December 15, 2000. SFAS 140 also amends the accounting for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001. The impact of the SFAS 140 provisions as of December 31, 2000 and effective subsequent to March 31, 2001 are not anticipated to have a material impact on the Partnership's financial statements.

3. Capital Accounts

The minimum subscription amount is $1,000 for new Limited Partners. Additional contributions may be made in increments of $1,000. Both subscriptions and contributions may be made quarterly, at the beginning of the respective month.

Each partner, including the General Partner, has a capital account with an initial balance equal to the amount such partner paid for its units. The Partnership's net assets are determined monthly, and any increase or decrease from the end of the preceding month is added to or subtracted from the capital accounts of the partners based on the ratio that the balance of each capital account bears in relation to the balance of all capital accounts as of the beginning of the month. The number of units held by the TIC 401(k) Plan will be restated as necessary for management and incentive fees attributable to units held at the beginning of each month by the TIC 401(k) Plan to equate the per unit value of the TIC 401(k) Plan's capital account with the Partnership's per unit value.

4. Redemption of Units

At each quarter-end, units are redeemable at the discretion of each limited partner. Redemption of units in $1,000 increments and full redemption of all units are made at 100% of the net asset value per unit effective as of the last business day of any quarter as defined in the Limited Partnership Agreement. Partial redemptions of units which would reduce the net asset value of a limited partner's unredeemed units to less than the minimum investment then required of new limited partners or such limited partner's initial investment, whichever is less, will be honored only to the extent of such limitation.

5. Income Taxes

No provision for income taxes has been made in the accompanying financial statements. Partners are responsible for reporting income or loss based upon their respective share of revenue and expenses of the Partnership.

6. Related Party Transactions

The General Partner, due to its relationship with its affiliates and certain other parties, may enter into certain related party transactions.

25

TUDOR FUND FOR EMPLOYEES L.P.

NOTES TO FINANCIAL STATEMENTS--(Continued)

December 31, 2000, 1999 and 1998

Bellwether Partners LLC ("BPL"), a Delaware limited liability company and an affiliate of the General Partner, is the Partnership's primary forward contract counterparty. Effective August 1, 1995, BPL ceased charging commissions for transacting the Partnership's foreign exchange and commodity forward contracts. The Partnership typically has on deposit with BPL, as collateral for forward contracts, up to 5% of the Partnership's net assets. During 2000, 1999 and 1998, the Partnership earned interest income of $37,163, $30,518 and $60,264, respectively, from deposits of collateral with BPL. At December 31, 2000, 1999 and 1998, the amounts on deposit with BPL were $1,128,484, $540,796, and $657,501 (including ($2,428), $74,335 and $82,643 in unrealized trading gains (losses)) as of December 31, 2000, 1999 and 1998, respectively.

Bellwether Futures LLC ("BFL"), a Delaware limited liability company, is an affiliate of the General Partner and is qualified to do business in Illinois. Effective January 1, 1996, BFL ceased collecting give-up fees from the Partnership as compensation for assisting in the execution of treasury bond futures by floor brokers on the Chicago Board of Trade.

TIC receives incentive and management fees as compensation for acting as trading advisor (Note 2).

7. Financial Instruments with Off-Balance Sheet Market Risk and Concentration of Credit Risk

In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities". The statement requires the Partnership to recognize all derivatives on the statements of financial condition at fair value. SFAS No. 137 "Accounting for Derivative Instruments and Hedging Activities-Deferral of Effective Date of SFAS No. 133," amended SFAS No. 133 to be effective for fiscal years beginning after June 15, 2000 (January 1, 2001, for all companies with calendar-year fiscal year). The Partnership has elected early adoption of SFAS No. 133 and, accordingly, its standards are applied in the accompanying financial statements. The Partnership has always maintained a policy of valuing its securities positions and derivative instruments at market or estimated fair values and of including any unrealized gains and losses in results of operations. Accordingly, the adoption of SFAS No. 133 has not resulted in a valuation or an accounting change in the accompanying financial statements.

In the normal course of business, the Partnership is a party to a variety of off-balance sheet financial instruments in connection with its trading activities. These activities include the trading of futures, forwards, options, swaps and other derivative instruments. For futures, forwards, swaps and forward rate agreements the unrealized gain or loss, rather than the contract or notional amounts, represents the approximate future cash requirements.

The Partnership is subject to market and credit risk associated with changes in the value of the underlying financial instruments, as well as the loss of appreciation on certain instruments, if its counterparties fail to perform, which amount may be in excess of the amounts recognized in the statements of financial condition. As a writer of options, the Partnership bears the risk of unfavorable changes in the price of the underlying instrument which may be in excess of the premium received.

TIC takes an active role in managing and controlling the Partnership's market and credit risk and has established formal control procedures which are reviewed on an ongoing basis.

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TUDOR FUND FOR EMPLOYEES L.P.

NOTES TO FINANCIAL STATEMENTS--(Continued)

December 31, 2000, 1999 and 1998

In order to control the Partnership's market exposure, TIC applies risk management guidelines and policies designed to protect the Partnership's capital. These guidelines and policies include quantitative and qualitative criteria for evaluating the appropriate risk levels for the Partnership. TIC's risk management committee, comprised of senior personnel from different disciplines, regularly assesses and evaluates the Partnership's potential exposures to market risk based on analyses performed by the Risk Management Department. The Risk Management Department's responsibilities include:
focusing on the positions taken in various instruments and markets globally; ascertaining that all such positions are accurately reflected on the Partnership's position reports; and evaluating the risk exposure associated with all of those positions. The Risk Management Department uses a statistical technique known as Value at Risk ("VaR") to assist the Partnership in measuring its exposure to market risk related to its trading positions. The VaR model is a proprietary system and is one of the many analytical tools used by the Risk Management Department to monitor and review the market risk exposure of the Partnership's trading portfolios. The VaR model projects potential losses of the portfolio and is based on a methodology which uses a one-year observation period of hypothetical daily changes in trading portfolio value, a one-day holding period and a one standard deviation level. These figures can be scaled up to indicate risk at the 95% or 99% confidence level.

TIC attempts to minimize credit risk exposure to trading counterparties and brokers through formal credit policies and monitoring procedures. TIC has established a formal Credit Committee, comprised of senior managers from different disciplines, that meets regularly to analyze the credit risks associated with the Partnership's counterparties, intermediaries and service providers. A significant portion of the Partnership's positions, including cash and cash equivalents, are invested with or held at institutions of high credit standing. The Credit Committee establishes counterparty exposure limits and specifically designates which product types are approved for trading.

The Partnership also reduces its credit risk by entering into master agreements with certain counterparties that include netting provisions that incorporate the right of "offset" (assets less liabilities) across OTC contracts with such counterparties. Accordingly, cash collateral received is net against the contractual commitment asset and a liability is recorded to the counterparty for the cash collateral pledged.

The Partnership has bi-lateral collateral agreements ("Collateral Agreements") with its counterparties whereby the Partnership is required to monitor the fair value of its derivative transactions on a daily basis and will pledge or pull back additional collateral as necessary. As of December 31, 2000, the Partnership has pledged $351,000 and received $60,000 of cash collateral, respectively, under these Collateral Agreements. The Partnership records cash collateral posted as a receivable from the counterparty. The Partnership nets this cash received against the contractual commitment asset, when legal right of off-set exists and records a liability to the counterparty for this cash collateral. As of December 31, 2000, the Partnership has no securities collateral pledged or received under these Collateral Agreements.

Counterparties' creditworthiness is monitored in the context of the Partnership's overall exposure to such counterparties. BPL is the Partnership's primary forward contract counterparty (Note 6). Notwithstanding the risk monitoring and credit review performed by TIC with respect to its counterparties, including BPL, there always is a risk of nonperformance.

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TUDOR FUND FOR EMPLOYEES L.P.

NOTES TO FINANCIAL STATEMENTS--(Continued)

December 31, 2000, 1999 and 1998

The following table summarizes the Partnership's year-end assets and liabilities at December 31, 2000 and 1999, resulting from unrealized gains and losses on derivative instruments included in the statements of financial condition (000's omitted):

                                               2000               1999
                                        ------------------ ------------------
                                        Assets Liabilities Assets Liabilities
                                        ------ ----------- ------ -----------
Exchange traded contracts:
  Interest rate contracts.............   $182      $--      $244      $12
  Foreign exchange contracts..........     --        6        64       --
  Equity index contracts..............    124       --        56        3

Over-the-counter contracts:
  Commodity swaps.....................     94       --        27       --
  Equity swaps........................     --       --        --        1
  Interest rate swaps.................      7       --       236       --

Non-financial instruments.............     --       --       183       --
                                         ----      ---      ----      ---
                                         $407      $ 6      $810      $16
                                         ====      ===      ====      ===

28
BROKERAGE PARTNERS