Document:

EX-10.1

 Exhibit 10.1 

EXECUTION COPY 
 MORGAN
STANLEY & CO. LLC 
 LISTED DERIVATIVES 

U.S. TREASURY SECURITIES PURCHASE AUTHORIZATION AGREEMENT 

This Agreement governs the service (“Service”) made available to each Fund set forth in Annex A hereto (each such Fund,
the “Customer”) by Morgan Stanley & Co. LLC (“MS&Co.”) and is effective as of June 1, 2015. This Agreement is in addition to and supplements Customer’s Commodity Futures Customer
Agreement (the “Futures Agreement”). Unless otherwise specified in this Agreement, all capitalized terms used herein shall have the meanings set forth in the Futures Agreement and references herein and in the Futures
Agreement to the “Agreement” shall be construed to mean the Futures Agreement as amended and supplemented by this Agreement. Except as otherwise modified by this Agreement, the terms and conditions of the Futures Agreement remain in full
force and effect. 
 1.    The Service. The Service consists of: (i) the purchase of U.S. Treasury
securities with Available Cash from Customer’s Account; and (ii) actions taken from time to time with respect to such U.S. Treasury securities by MS&Co., each as instructed and authorized by Customer in accordance with the terms of
this Agreement, as further set forth below. The term “Available Cash” means the amount of any excess equity in the form of cash in the Account, which would, consistent with Applicable Law, be available on demand for
withdrawal or transfer in accordance with Customer’s instructions. 
 2.    Authorizations. MS&Co.
is hereby authorized and instructed to: (a) purchase with Available Cash U.S. Treasury securities in accordance with a written purchase order substantially in the form of Annex B hereto; provided, however, that at no time shall the Available
Cash be debited from the Customer’s Account unless the U.S. Treasuries are simultaneously credited to the Segregated Account (as defined below); (b) transfer proceeds from the sale or disposition (whether at maturity or obtained via
automatic redemption, sale or otherwise) of U.S. Treasury securities to the Futures Account to, (i) satisfy debits and margin calls in the Account, (ii) fund settlement of transactions Customer or Advisor or Customer’s designated and
duly authorized Account controller has executed for the Account, in the case of (i) and (ii), only if the Withholding Amount is insufficient and (iii) in the absence of Customer instructions to the contrary, redeem proceeds from the
maturity of U.S. Treasury securities and use such proceeds to purchase U.S. Treasury securities in the next available tenor of the same or substantially comparable maturities as the U.S. Treasury securities just redeemed; (c) discharge
Customer’s instructions as set forth in this Agreement without any further authorizations or consents; and (d) present this Agreement to any regulator, governmental authority or self-regulatory authority or in any administrative or
judicial proceeding as verification that MS&Co. has authority to take action with respect to such U.S. Treasury securities on behalf of Customer as instructed herein. 

3.    Relationship to MS&Co. Customer understands and agrees as follows: 

 

	(a)	 U.S. Treasury securities purchased pursuant to this Agreement will at all times be held by MS&Co. for the benefit of Customer in segregation in
an omnibus customer account (each, as applicable, a “Segregated Account”) in accordance with the provisions of Section 4d(a) of the Commodity Exchange Act (“Act”) and Regulation 1.20 or Regulation
30.7, as applicable, of the regulations of the Commodity Futures Trading Commission (“CFTC”) promulgated thereunder, and will at all times be reflected on MS&Co.’s books and records as customer segregated assets, in
accordance with the applicable requirements of the Act and the CFTC’s regulations thereunder. MS&Co. will mark its books and records to indicate the amount of U.S. Treasury securities held for each Fund in the Segregated Account.

  

	(b)	 U.S. Treasury securities purchased pursuant to this Agreement will, so long as they are custodied in a Segregated Account, be eligible to satisfy
Customer’s margin requirements for its Futures Account with MS&Co., subject to the relevant provisions of the Futures Agreement; 

  

	(c)	 MS&Co. shall have no duties or responsibilities to Customer in connection with the Service except those duties and responsibilities expressly
set forth herein and as may exist under Applicable Law; 

  
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	(d)	 MS&Co. is not in any way acting as Customer’s fiduciary in connection with the Service or the authorizations and instructions set forth
herein, and Customer is not relying on any communications or statements (written or oral) of MS&Co. as investment advice or as a recommendation from MS&Co. or its employees to purchase or sell U.S. Treasury securities; 

 

	(e)	 U.S. Treasury securities custodied in a Segregated Account will be reflected on MS&Co.’s statements of Customer’s collateral held in
segregation pursuant to Section 4d(a)(2) of the Act or as 30.7 customer funds pursuant to CFTC Regulation 30.7, as applicable; 

  

	(f)	 Customer bears the sole risk of any decline in the value of the U.S. Treasury securities and understands that any such decline in value may, to the
extent that such U.S. Treasury securities are being held as Collateral under the Futures Agreement, give rise to a shortfall in its margin requirement under the Futures Agreement; and 

 

	(g)	 This Agreement and the Service is not an offer to buy or sell or a solicitation of an offer to buy or sell U.S. Treasury securities or to
participate in any particular trading strategy. 

 4.    Revocation of Authorizations.
The authorizations and instructions set forth herein shall remain in full force and effect until MS&Co. receives a written notice of revocation from Customer and MS&Co. acknowledges such revocation to Customer in writing within two
(2) business days of MS&Co.’s receipt of such written notice. 
 5.    Termination of the
Service. MS&Co. may terminate the Service at any time and for any reason upon notice to Customer. Customer shall remain responsible for all authorized charges that arise prior to such termination. Notwithstanding any such termination,
MS&Co shall provide the Service until the maturity date of the U.S. Treasuries held in the Customer’s Account at the time the notice to terminate was received by the Customer. 

6.    U.S. Treasury Securities as Collateral. Customer agrees that all U.S. Treasury securities purchased
through the Service will be deemed “Collateral” (as that term is used in the Futures Agreement) held in and for the Account. 

7.    Liens and Other Secured Interests. Customer hereby (i) assigns, pledges and transfers to
MS&Co. all of Customer’s right, title and interest in the U.S. Treasury securities purchased pursuant to this Agreement and (ii) understands and agrees that MS&Co. may use any U.S. Treasury securities held in a Segregated Account
for the purpose of collateralizing Customer’s obligations under the Futures Agreement (in accordance with the terms thereof). MS&Co. shall, at all times when U.S. Treasury securities are custodied in a Segregated Account, retain a security
interest and right of setoff, to the extent set forth in the Futures Agreement with respect to “Collateral” as defined therein, in and with respect to such U.S. Treasury securities. For the avoidance of doubt, the parties hereto
acknowledge and agree that the purchase of U.S. Treasury securities with Available Cash from Customer’s Futures Account as part of the Service shall not constitute a “permitted investment” as defined in CFTC Regulation 1.25.

 8.    Certain Procedures. MS&Co. is hereby authorized and instructed to calculate Available Cash
through the following procedures. MS&Co. shall first calculate Customer’s excess equity in the form of available USD cash balances held on Customer’s behalf by MS&Co. in the Account subject to and in accordance with the provisions
of the Futures Agreement (the “Excess Equity”). For the avoidance of doubt, Excess Equity may, at the discretion of MS&Co., be determined after taking into account any rights of set-off, netting and any other application
of Customer’s cash balances to its obligations owed to MS&Co. (or, if applicable, its affiliates) to the extent permitted under the Futures Agreement. MS&Co. shall then subtract the Withholding Amount from the Excess Equity. ( The
resulting amount is then available for the purchase of U.S. Treasury Securities in connection with MS&Co.’s provision of the Service pursuant to the terms of this Agreement. 

MS&Co. is hereby authorized and instructed to withhold from inclusion in its computation of Excess Equity a percentage of available cash,
as determined by Customer in its discretion (the “Withholding Amount”), for the purpose of (i) satisfying Customer’s obligations in respect of the Futures Account for that day; (ii) satisfying Customer’s
margin requirements in respect of the Futures Account for that day and (iii) protecting against the possibility of adverse market moves causing Customer to incur a debit balance in the Futures Account. 

9.    ERISA. Except as disclosed to MS&Co. in writing, Customer continuously represents that it is not
(a) an employee benefit plan (hereinafter an “ERISA Plan”), as defined in Section 3 (3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), subject to Title I
of ERISA or Section 4975 of the Internal Revenue Code of 

  
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1986, as amended (“Code”), or subject to any other statute, regulation, procedure or restriction that is materially similar to Section 406 of ERISA or
Section 4975 of the Code or which contain any prohibition against entering into any transaction under this Agreement (together with ERISA Plans, “Plans”), (b) a person acting on behalf of a Plan or (c) a person
the assets of whom constitute assets of a Plan. Customer will provide notice to MS&Co. in the event that it is aware that it is in breach of any aspect of this representation or is aware that with the passing of time, giving of notice or expiry
of any applicable grace period, it will breach this representation.  
 10.    Miscellaneous Provisions.
Those provisions in Customer’s Futures Agreement with MS&Co. regarding matters not otherwise expressly addressed in this Agreement shall have the same meaning and effect as if the provisions were part of this Agreement. 

Customer represents that it is authorized to enter into this Agreement and utilize the Service and has obtained any consents and made any
disclosures necessary regarding its investment in U.S. Treasury securities and the fees and expenses associated with such investment. 
 In
witness whereof, Customer has caused this Agreement to be executed by its officer or duly authorized representative as of the date first above written. 

CUSTOMER-: Each fund set forth on Annex A (which may be amended from time to time in accordance with the provisions of the Futures
Agreement), attached hereto, in their individual capacity. 
 Signature: /s/ Patrick T.
Egan             
 Title: President and Director – Ceres Managed
Futures LLC 
 Date: October 29,
2015                       

Acknowledged and agreed by: 

MORGAN STANLEY & CO. LLC 

Signature: /s/ Craig T. Abruzzo         

Title: Managing Director                   

Date: October 29,
2015                     
  

  
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 Annex A 

List of Funds 
 Meritage Futures Fund L.P. 

  

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 ANNEX B 

U.S. Treasury Securities Specifications 
  

			
	Characteristic	  	Specification
	Type:	  	 
	Denomination:	  	 
	Tenor/Maturity Date:Exhibit

Exhibit 10.1

PDL BIOPHARMA, INC.

Amended and Restated 2015 Annual Bonus Plan

This Amended and Restated 2015 Annual Bonus Plan (the “Plan”) is intended to enhance stockholder value by promoting a connection between the performance of PDL BioPharma, Inc. (the “Company”) and the compensation of personnel of the Company and to promote retention of high performing personnel.  The Plan is being implemented under the Company’s 2005 Equity Incentive Plan (as amended, the “2005 Equity Plan”), which was approved by the Company’s stockholders.  The annual bonuses will be granted as a Cash-Based Award pursuant to the 2005 Equity Plan. 
 
1.All employees of the Company working 30 hours per week or more (each, a “Participant”) are eligible to receive annual bonuses for 2015 according to this Plan. The Plan will be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”).  The Committee shall have all powers and discretion necessary to administer the Plan and to control its operation and may delegate responsibilities to Company officers as it deems appropriate. Participants are eligible to receive bonuses upon the achievement of the threshold goal specified in Section 2. A Participant who does not demonstrate satisfactory individual performance (50% or higher), however, will not be eligible for any portion of his or her bonus, including the portion based on Company performance.    
2.For the purpose of payments under the Plan qualifying as Performance-Based Compensation under the 2005 Equity Plan, the threshold goal shall be the consummation of corporate transactions resulting in the acquisition of income generating assets with an aggregate value of not less than $100 million on or prior to December 31, 2015. 
3.The determination of the amount of payments under the plan shall be based on the performance of the 2015 Corporate Goals and the 2015 Individual Goals as well as the other factors set forth in this Section 3.  Company performance shall be determined by the Committee based on the Company’s ability to meet or exceed corporate goals (“2015 Corporate Goals”) as approved by the Board of Directors and set forth in Exhibit A. Additionally, the Committee may adjust or modify the 2015 Corporate Goals to reflect changed Company objectives.  Individual performance of the Company’s officers shall be reviewed and recommended to the Committee by the Chief Executive Officer, except for the performance of the Chief Executive Officer, which shall be determined by the Committee based on the Company’s achievement of established Corporate Goals. Individual performance of employees shall be reviewed by the appropriate manager and approved by the Chief Executive Officer.  In all cases, individual performance shall be based on the 2015 Individual Goals that have been approved by the Chief Executive Officer and set forth as Exhibit B (the “2015 Individual Goals”).
The Committee shall have the sole discretion on the basis of individual or corporate performance metrics to determine that the actual amount paid with respect to a Participant’s award will be equal to or less than (but not greater than) the 

maximum payout calculated.  For clarification, the Committee may determine, in its sole discretion on the basis of individual or corporate performance metrics, that a reduced bonus, or no bonus, shall be paid to individual, regardless of achievement of the 2015 Corporate Goals or the 2015 Individual Goals.  
4.To be eligible for a bonus, a Participant must be on payroll prior to October 1, 2015, and must be employed by the Company as of the date of payment of the bonus. A Participant hired after April 1, 2015, shall be eligible for a pro-rated bonus.  
5.A Participant who has taken an approved leave of absence pursuant to the Company’s policies during 2015 shall receive a pro-rated bonus, at the Compensation Committee's discretion. 
6.The amount of a Participant’s bonus is based on a target percentage of such Participant’s annual average base salary throughout the 2015 calendar year.  The target percentage for executives has been determined by the Committee and for employees has been determined by the manager at the beginning of the Plan Year.  The target percentage shall then be adjusted based on the attainment of 2015 Corporate Goals and Individual Goals over the course of the Plan Year to arrive at a final performance percentage.  For each person, the target percentage and ratio of attainment of 2015 Corporate Goals and 2015 Individual Goals is set forth as Exhibit C.
7.The Company performance percentage and/or the individual performance percentage may exceed 100% in the event the Company or the individual Participant exceeds expected goals, provided that neither percentage may exceed 200%. For example, assuming the Company has met 100% of its 2015 Corporate Goals, a Participant, who has met 150% of his or her 2015 Individual Goals, has a target percentage of 25%, has a corporate-to-individual goal ratio of 50%/50% and a base pay rate of $100,000 will receive a bonus of $31,250 (100% x 0.5 + 150% x 0.5 = 125%; and 125% x 25% = 31.25%; and 31.25% of Participant’s base pay rate of $100,000 = $31,250).  All determinations and decisions made by the Committee shall be final, conclusive and binding on all persons and shall be given the maximum deference permitted by law.
8.This Plan is effective for the Company’s 2015 calendar year beginning January 1, 2015, through December 31, 2015 (the “Plan Year”), and will expire automatically on December 31, 2015.  Bonus payments will be made no later than February 15th, 2016.
9.The Company shall withhold all applicable taxes from any bonus payment, including any federal, state and local taxes.
10.Nothing in this Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. Nothing in these guidelines should be construed as an employment agreement or an entitlement to any Participant for any incentive payment hereunder. 

11.This Plan and all awards shall be construed in accordance with and governed by the laws of the State of Nevada, without regard to its conflict of law provisions.
12.Payments under this Plan shall be unsecured, unfunded obligations of the Company.  To the extent a Participant has any rights under this Plan, the Participant’s rights shall be those of a general unsecured creditor of the Company. 
13.It is the intent of the Company that the Plan, and all payments made hereunder, satisfy and be interpreted in a manner that, in the case of Participants who are persons whose compensation is subject to Section 162(m), qualify as Performance-Based Compensation under Section 162(m).  Any provision, application or interpretation of the Plan inconsistent with this intent to satisfy the requirements of Section 162(m) shall be disregarded.  However, notwithstanding anything to the contrary in the Plan, the provisions of the Plan may at any time be bifurcated by the Committee in any manner so that certain provisions of the Plan or any payment intended (or required in order) to satisfy the applicable requirements of Section 162(m) are only applicable to persons whose compensation is subject to the limitations on deductibility of compensation provided under Section 162(m).

	
				
	Name
	Title
	Target Bonus
	Ratio of 2015 Corporate Goals/2015 Individual Goals

	John McLaughlin
	President & CEO
	100%
	100%/0%

	Peter Garcia
	VP & CFO
	75%
	75%/25%

	Christopher Stone
	VP, General Counsel & Secretary
	75%
	75%/25%

	Danny Hart
	Vice President, Business Development
	75%
	75%/25%

	Steffen Pietzke
	Controller and Chief Accounting Officer
	45%
	75%/25%

	Nathan Kryszak
	Senior Counsel & Assistant Secretary
	45%
	75%/25%

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