Document:

polaris1018.htm

AMENDMENT TO THE ADVISORY AGREEMENT

 

This AMENDMENT dated as of March 1, 2012 to the ADVISORY AGREEMENT made as of the 30th day of April, 2007, among CERES MANAGED FUTURES LLC (formerly Demeter Management Corporation), a Delaware limited liability company (the “Trading Manager”), MORGAN STANLEY SMITH BARNEY KAISER I, LLC (formerly Morgan Stanley Managed Futures Kaiser I, LLC), a Delaware limited liability company (the “Trading Company”) and KAISER TRADING GROUP PTY. LTD., a private company organized under the laws of Australia (the “Trading Advisor”).

 

W I T N E S S E T H:

 

WHEREAS, the Trading Manager, the Trading Company and the Trading Advisor wish to amend the Advisory Agreement dated as of April 30, 2007 to reflect certain changes in the futures interests traded by the Trading Advisor.

 

NOW, therefore, the parties agree as follows:

 

1. The first sentence of Section 5(a)(i) shall be deleted and replaced by the following:

 

The Trading Company shall pay the Trading Advisor a monthly management fee equal to 1/12 of 1.5% (a 1.5% annual rate) of the Net Assets (as defined in Section 5(c) hereof) as of the first day of each month (the “Management Fee”).

 

2. Exhibit C to the Agreement shall be deleted and replaced by the following:

 

EXHIBIT C

FUTURES INTERESTS TRADED

	
Market

	
Exchange

Bonds

	
Treasury Notes (5 Year)

	
CBOT

	
Treasury Notes (10 Year)

	
CBOT

	
BOBL

	
EUREX

	
Bunds

	
EUREX

	
Long Gilt

	
LIFFE

	
Treasury Bonds (30 Year)

	
CBOT

	
Japanese Govt Bonds (10 Year)

	
TSE

	
  

	
Energies

	
Crude Oil

	
NYMEX & ACCESS

	
Natural Gas

	
NYMEX

	
Heating Oil

	
NYMEX

  

  

  

	
  

	
Foreign Exchange (Cash)

	
USD/AUD

	
N/A - OTC

	
USD/GBP

	
N/A - OTC

	
EUR/USD

	
N/A - OTC

	
USD/CAD

	
N/A - OTC

	
USD/JPY

	
N/A - OTC

	
USD/CHF

	
N/A – OTC

	
NZD/USD

	
N/A – OTC

	
USD/MXN

	
N/A – OTC

	
USD/ZAR

	
N/A - OTC

	
  

	
Share Indexes

	
Hang Seng

	
HKFE

	
FTSE 100

	
LIFFE

	
Dax

	
EUREX

	
CAC 40 Index

	
EURONEXT

	
Nikkei 225 Index (Osaka)

	
OSE

	
E-Mini Nasdaq

	
CME

	
DJ Euro 50 Index

	
EUREX

	
E-Mini S&P

	
CME

	
Mini Dow Jones (Day)

	
CBOT

	
Amsterdam Index AEX

	
EOE

	
  

	
Soft & Agricultural Commodities

	
Wheat

	
CBOT & ACCESS

	
Corn

	
CBOT & ACCESS

	
Soybeans

	
CBOT

	
Coffee

	
ICE-NYBOT

	
Cotton

	
ICE-NYBOT

	
Soybean Meal

	
CBOT

	
Soybean Oil

	
CBOT

	
Sugar

	
ICE-NYBOT

	
Lean Hogs

	
CME

	
Live Cattle

	
CME

	
  

	
Metals

	
Gold

	
COMEX

	
Copper

	
COMEX

 

3. In all other respects the Advisory Agreement remains unchanged and of full force and effect.

 

                                                                                              - 2 -

  

  

  

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of the day and year first above written.

 

CERES MANAGED FUTURES LLC

By /s/ Walter Davis                                                                           

Walter Davis

President

MORGAN STANLEY SMITH BARNEY KAISER I, LLC 

By:  Ceres Managed Futures LLC

(Trading Manager)

By   /s/ Walter Davis                                                                           

Walter Davis

President

KAISER TRADING GROUP PTY. LTD.

By   /s/ Karl O’Shaughnessy                                                                                     

Karl O’Shaughnessy

Director

 

                                                                         - 3 -polaris1019.htm

AMENDMENT NO. 2 TO THE ADVISORY AGREEMENT

 

This AMENDMENT NO. 2 dated as of the 1st day of January 2013 to the ADVISORY AGREEMENT made as of the 30th day of April, 2007, among CERES MANAGED FUTURES LLC (formerly Demeter Management Corporation), a Delaware limited liability company (the “Trading Manager”), MORGAN STANLEY SMITH BARNEY KAISER I, LLC (formerly Morgan Stanley Managed Futures Kaiser I, LLC), a Delaware limited liability company (the “Trading Company”) and KAISER TRADING GROUP PTY. LTD., a private company organized under the laws of Australia (the “Trading Advisor”), as previously amended by an Amendment to the Advisory Agreement dated as of March 1, 2012 (together the “Agreement”).

 

 

W I T N E S S E T H:

 

WHEREAS, the Trading Manager, the Trading Company and the Trading Advisor wish to amend the Advisory Agreement to increase the amount of leverage used to manage the Trading Company’s assets.

 

NOW, therefore, the parties agree as follows:

 

1. The first sentence of Section 2(f) shall be deleted and replaced by the following:

 

In performing services to the Trading Company, the Trading Advisor shall utilize its Global Diversified Program (the “Trading Program”), as described in the Disclosure Document, and as modified from time to time; provided, however, that the Trading Manager and the Trading Company agree that amount of leverage applied to the assets of the Trading Company allocated to the Trading Advisor by the Trading Manager shall be 2.0 times the assets of the Trading Company allocated to the Trading Advisor by the Trading Manager (the “Trading Level”), unless otherwise agreed by the parties hereto in writing.  The Trading Advisor shall trade the Trading Company’s assets on the basis of the Trading Level.

 

2. The first sentence of Section 5(a)(i) shall be deleted and replaced by the following:

 

The Trading Company shall pay the Trading Advisor a monthly management fee equal to 1/12 of 2% (a 2% annual rate) of the Net Assets (as defined in Section 5(c) hereof) as of the first day of each month (the “Management Fee”).

 

3. In all other respects the Advisory Agreement remains unchanged and of full force and effect.

 

 

  

  

  

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of the day and year first above written.

 

CERES MANAGED FUTURES LLC

By   /s/ Walter Davis                                                                           

Walter Davis

President

MORGAN STANLEY SMITH BARNEY KAISER I, LLC 

By:  Ceres Managed Futures LLC

(Trading Manager)

By   /s/ Walter Davis                                                                           

Walter Davis

President

KAISER TRADING GROUP PTY. LTD.

By   /s/ Karl O’Shaughnessy                                                                                     

Karl O’Shaughnessy

Director

                                                                       - 2-exhiobit109.htm

AMENDMENT AGREEMENT

The amendment agreement (this “Amendment Agreement”) is made and entered into effective as of May 5, 2011, by and among Morgan Stanley Smith Barney TT II LLC, a Delaware limited liability company (the “Trading Company”), Ceres Managed Futures LLC, a Delaware limited liability company (the “Trading Manager”), and Transtrend B.V., a Dutch limited liability company (the “Trading Advisor”).

WITNESSETH:

WHEREAS, the Trading Company, Demeter Management Corporation and the Trading Advisor entered into an advisory agreement effective as of April 30, 2007 (the “Agreement”); and

WHEREAS, Demeter Management Corporation was merged into Demeter Management LLC, a Delaware limited liability company with Demeter Management LLC as the surviving entity;

WHEREAS, pursuant to the establishment of the Morgan Stanley Smith Barney Holdings LLC joint venture, Demeter Management LLC and Ceres Managed Futures LLC were each contributed to such joint venture;

WHEREAS, subsequent to the establishment of the joint venture, Demeter Management LLC was merged into Ceres Managed Futures LLC whereby Ceres Managed Futures LLC became the Trading Manager;

WHEREAS, the parties hereto desire to enter into this Amendment Agreement in order to amend the Agreement to reflect the above mergers and to amend the Agreement in certain respects.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby confirmed, the parties hereto do hereby agree as follows:

1.           Defined Terms.

Capitalized terms not otherwise defined in this Amendment Agreement shall have the same respective meanings as set forth in the Agreement.

2.           Amendments to the Agreement.

(a)           Section 5(a)(i) of the Agreement is hereby deleted in its entirety and the following new section 5(a)(i) is hereby inserted in place thereof:

 

  

  

  

 

“(i)(A)                    The Trading Company shall pay the Trading Advisor a monthly management fee based upon a percentage of the Assets as of the first day of each month (the “Management Fee”) at the applicable rate set forth below;

 

(B) From and after the effective date of this Amendment Agreement through May 31, 2011, the rate of the Management Fee shall equal 1/12th of 2%;

 

(C) On and after June 1, 2011, if the Assets as of the first day of a month are:  (i) less than $400,000,000, then the rate of the Management Fee shall equal 1/12th of 2% for such month; and (ii) equal to or greater than $400,000,000, then the rate of the Management Fee shall equal 1/12th of 1.75% for such month; and

 

(D)  The Management Fee is payable in arrears within 30 Business Days of the end of the month for which it was calculated.  For purposes of this Agreement, “Business Day” shall mean any day on which the securities markets are open in the United States; and”

 

(b)           Section 10(a)(iv) of the Agreement is hereby deleted in its entirety and the following new Section 10(a)(iv) is inserted in place thereof:

 

“(iv) The Trading Manager is duly organized and validly existing and in good standing as a limited liability company under the laws of the State of Delaware and is qualified to do business and is in good standing as a foreign entity in each jurisdiction in which the nature or conduct of its business requires such qualification and where the failure to be so qualified could materially adversely affect the Trading Manager’s ability to perform its obligations hereunder;”

 

(c)           Section 10(a) of the Agreement is hereby amended by deleting the word “and” at the end of Section 10(a)(xii), by inserting a new Section 10(a)(xiii) as set forth below and by re-designating existing Section 10(a)(xiii) as Section 10(a)(xiv):

 

“(xiii)  The assets of the Trading Company do not and shall not constitute “plan assets” for purposes of the U.S. Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the U.S. Internal Revenue Code of 1986, as amended; and”

 

3.           Representations and Warranties.

Each party represents to the other parties that this Amendment Agreement has been duly and validly executed, delivered and entered into by it and that this Amendment Agreement constitutes a valid and binding agreement of it enforceable against it in accordance with its terms.

 

  

  

  

4.           Entire Agreement.

Except as expressly amended by this Amendment Agreement, the Agreement remains in full force and effect.

5.           Counterparts.

This Amendment Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and the signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterparts.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment Agreement effective as of the date set forth above.

MORGAN STANLEY SMITH BARNEY TT II, LLC

By:  Ceres Managed Futures LLC

Its:  Trading Manager

By: _/s/ Walter Davis___                                                      

      Walter Davis, Chairman and President

CERES MANAGED FUTURES LLC

By:  Ceres Managed Futures LLC

Its:  Trading Manager

By: _/s/ Walter Davis___                                                      

      Walter Davis, Chairman and President

TRANSTREND B.V.

By: _/s/ J.P. A. van den Broek                                                      

      J.P. A. van den Broek, Managing Director

 

By: _/s/ A.P. Honig___                                                      

      A.P. Honig, Executive Director

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