Document:

<PAGE>
                                                                   Exhibit 10.28

                           WAIVER AND AMENDMENT NO. 1

                                       TO

                           LOAN AND SECURITY AGREEMENT

            THIS WAIVER AND AMENDMENT NO. 1 ("Amendment") is entered into as of
October 30, 2001, by and among TransAct Technologies Incorporated, a Delaware
corporation having its principal place of business at 7 Laser Lane, Wallingford,
Connecticut 06492 ("Borrower"), LaSalle Business Credit, Inc. having its
principal place of business at 135 South LaSalle Street, Chicago, Illinois 60603
with an office located at 565 Fifth Avenue, New York, New York 10017
("LaSalle"), the undersigned financial institutions (each individually a
"Lender" and, collectively, "Lenders") and LaSalle as agent for the Lenders
(LaSalle, in such capacity, "Agent").

                                   BACKGROUND

            Pursuant to a Loan and Security Agreement dated as of May 25, 2001,
(as may be amended, restated, supplemented or otherwise modified from time to
time, the "Loan Agreement") by and among Borrower, Agent and Lenders, Agent and
Lenders provide Borrower with certain financial accommodations.

            Borrower has requested that, among other things, Agent and Lenders
(i) waive an existing Event of Default with respect to Minimum EBITDA contained
in the Loan Agreement, (ii) amend certain financial covenants contained in the
Loan Agreement and (iii) amend certain other provisions of the Loan Agreement
and Agent and Lenders are willing to do so on the terms and conditions hereafter
set forth.

            NOW, THEREFORE, in consideration of any loan or advance or grant of
credit heretofore or hereafter made to or for the account of Borrower by Agent
and Lenders, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

            1. Definitions. All capitalized terms not otherwise defined herein
shall have the meanings given to them in the Loan Agreement.

            2. Amendment to Loan Agreement. Subject to satisfaction of the
conditions precedent set forth in Section 5 below, the Loan Agreement is hereby
amended as follows:

            (a) Article 1 is hereby amended as follows:

            (i) the following defined terms are hereby added in their
appropriate alphabetical order:

            "Amendment No. 1" shall mean the Waiver and Amendment No. 1 to this
Agreement dated as of October 30, 2001.
<PAGE>
            "Amendment No. 1 Effective Date" shall mean the date on which all of
the conditions precedent contained in Section 5 of Amendment No. 1 shall have
been satisfied.

            (ii) the following defined term is hereby amended in its entirety to
provide as follows:

            "APPLICABLE MARGIN" shall mean the percentage set forth below for
the applicable Type and Kind of Loan calculated based on Borrower achieving the
financial test set forth below:

<TABLE>
<CAPTION>
                  APPLICABLE MARGIN
          Revolving Loans       Term Loans       Equipment Loans
Level     Prime     LIBOR     Prime    LIBOR     Prime     LIBOR
<S>      <C>       <C>       <C>      <C>       <C>       <C>
   1     1.00%     3.50%     1.50%    4.00%     1.50%     4.00%
   2      .75%     3.25%     1.25%    3.75%     1.25%     3.75%
</TABLE>

            The Applicable Margin shall be set at Level 1 on the Closing Date
and shall not be subject to decrease prior to the receipt by Agent of the annual
financial statements of Borrower as required under paragraph 12(d) hereof for
the Fiscal Year ending December 31, 2001 (the "2001 Annual Financial
Statements"). If (a) Borrower's EBITDA for the Fiscal Year ending December 31,
2001 as calculated using the financial information from the 2001 Annual
Financial Statements, is equal to or greater than $2,650,000, (b) the 2001
Annual Financial Statements have been delivered in accordance with the
requirements set forth in paragraph 12(d) hereof and (c) no Default or Event of
Default has occurred and is continuing on the date the 2001 Annual Financial
Statements are delivered, the Applicable Margin shall be adjusted to Level 2. If
any of the foregoing conditions are not satisfied, the Applicable Margin shall
permanently remain at Level 1. If the Applicable Margin is adjusted to Level 2
in accordance with this paragraph, such change shall be effective thirty (30)
days after Agent receives the 2001 Annual Financial Statements.

            (b) Paragraph 12(e) is hereby amended in its entirety as follows:

                  "(e) As soon as practicable and in any event not later than
(i) November 30, 2001 with respect to the Fiscal Year commencing January 1, 2002
and (ii) thirty (30) days after the beginning of each Fiscal Year thereafter,
projected balance sheets, statements of income and cash flow for Borrower on a
consolidated basis and a consolidating basis, for each of the twelve (12) months
during such Fiscal Year, which shall include the assumptions used therein,
together with appropriate supporting details as requested by Agent (hereinafter
referred to as "Projections")."

            (c) Paragraph 15(p) is hereby amended in its entirety to provide as
follows:

            "(p) Borrower on a consolidated basis shall maintain and keep in
full force and effect each of the financial covenants set forth below. The
calculation and determination of each such financial covenant, and all
accounting terms contained therein, shall be so calculated and construed in
accordance with GAAP, applied on a basis consistent with the financial
statements of Borrower delivered on or before the Closing Date:

                                      -2-
<PAGE>
            (i) Tangible Net Worth. Borrower on a consolidated basis shall
maintain as of the end of each month a Tangible Net Worth of not less than the
amount set forth below shown opposite such month:

<TABLE>
<CAPTION>
               MONTH ENDED                          TANGIBLE NET WORTH
<S>                                                 <C>
          November 30, 2001                             $10,200,000
          December 31, 2001                             $9,340,000
          January 31, 2002                              $10,100,000
          February 28, 2002                             $10,100,000
          March 31, 2002                                $10,100,000
          April 30, 2002                                $10,200,000
          May 31, 2002                                  $10,200,000
          June 30, 2002                                 $10,200,000
          July 31, 2002                                 $10,900,000
          August 31, 2002                               $10,900,000
          September 30, 2002                            $10,900,000
          October 31, 2002                              $11,100,000
          November 30, 2002                             $11,100,000
          December 31, 2002                             $11,100,000
          March 31, 2003 and each month               The sum of (A) $11,100,000
          thereafter (each such month,    plus (B) an aggregate amount equal to
          the "current month")            eighty five percent (85%) of the
                                          cumulative net income after taxes of
                                          Borrower on a consolidated basis for
                                          the period commencing on January 1,
                                          2003 through and including the last
                                          day of the current month, provided,
                                          however, that such cumulative amount
                                          shall not be reduced by the amount of
                                          any net loss before taxes of Borrower
                                          on a consolidated basis for any
                                          preceding month.
</TABLE>

            (ii) Fixed Charge Coverage Ratio. Borrower on a consolidated basis
shall maintain as of the end of each month a Fixed Charge Coverage Ratio of not
less than the ratio set forth below shown opposite such month with respect to
the twelve (12) months then ended.

<TABLE>
<CAPTION>
               MONTH ENDED                      FIXED CHARGE COVERAGE RATIO
<S>                                             <C>
          January 31, 2002 through and                  1.0 to 1.0
          including March 31, 2002
          June 30, 2002 and each month                  1.15 to 1.0
          thereafter
</TABLE>

                                      -3-
<PAGE>
            (iii) Capital Expenditures. Borrower on a consolidated basis shall
not make Capital Expenditures of an aggregate amount of more than (x) two
million two hundred thousand dollars ($2,200,000) during the Fiscal Year ending
December 31, 2001 and (y) two million five hundred thousand dollars ($2,500,000)
during any Fiscal Year thereafter.

            (iv) Minimum Consolidated EBITDA. Borrower on a consolidated basis
shall maintain EBITDA of not less than the amounts set forth below shown
opposite such month with respect to the twelve (12) months then ended, provided
that the applicable period being tested on the fiscal quarter ending November
30, 2001 will be the eleven (11) months then ended:

<TABLE>
<CAPTION>
          FISCAL QUARTER ENDED                 MINIMUM CONSOLIDATED EBITDA
<S>                                            <C>
          November 30, 2001                           ($250,000)
          December 31, 2001                           ($350,000)
          January 31, 2002                         $  2,500,000
          February 28, 2002                        $  2,500,000
          March 31, 2002                           $  2,500,000
          April 30, 2002                           $  2,800,000
          May 31, 2002                             $  2,800,000
          June 30, 2002                            $  2,800,000
          July 31, 2002                            $  3,100,000
          August 31, 2002                          $  3,100,000
          September 30, 2002 and each
          month thereafter                         $  3,100,000
</TABLE>

            (v) Adjustment of Financial Covenants. Within thirty (30) days of
the date on which Agent receives the Projections for the Fiscal Year commencing
January 1, 2002, the parties shall enter into an amendment to this Agreement to
reset the financial covenants set forth on this Paragraph 15(p) to give effect
to such Projections, provided, however, if the parties fail to enter into such
amendment within thirty (30) days of the date on which Agent receives the
Projections for the Fiscal Year commencing January 1, 2002, then Agent shall
have the right to reset the financial covenants to such levels as determined in
its reasonable discretion."

            3. Waiver. Subject to satisfaction of the conditions precedent set
forth in Section 5 below, Agent and Lenders hereby waive, solely with respect to
the fiscal quarter ending September 30, 2001, compliance by Borrower with the
Minimum EBITDA financial covenant set forth in paragraph 15(p)(iv) of the Loan
Agreement pursuant to which Borrower was required to maintain Minimum
Consolidated EBITDA of not less than $475,000 for the three (3) fiscal quarters
ended September 30, 2001.

            4.    Amendment and Waiver Fee.  On the Amendment No. 1 Effective
Date, Borrower shall pay Agent for the benefit of Lenders an amendment and
waiver fee of $20,000 (the "Amendment and Waiver Fee").  The Amendment and
Waiver Fee shall be deemed fully earned on the Amendment No. 1 Effective Date
and shall not be subject to reduction, rebate or

                                      -4-
<PAGE>
proration whatsoever. Borrower hereby authorizes Agent to automatically charge
Borrower's loan account with Agent for the Amendment and Waiver Fee on the
Amendment No. 1 Effective Date.

            5. Conditions of Effectiveness. This Amendment shall become
effective October 30, 2001, when and only when Agent shall have received in form
and substance satisfactory to Agent and its counsel (i) four (4) copies of this
Amendment executed by Borrower and consented and agreed to by TransAct.com,
TransAct UK and TransAct Barbados as Guarantors and (ii) such other
certificates, instruments, documents, agreements and opinions of counsel as may
be required by Agent or its counsel, each of which shall be in form and
substance satisfactory to Agent and its counsel.

            6. Representations and Warranties. Borrower hereby represents and
warrants as follows:

                  (a) This Amendment and the Loan Agreement, as amended hereby,
            constitute legal, valid and binding obligations of Borrower and are
            enforceable against Borrower in accordance with their respective
            terms.

                  (b) Upon the effectiveness of this Amendment, Borrower hereby
            reaffirms all covenants, representations and warranties made in the
            Loan Agreement to the extent the same are not amended hereby and
            agree that all such covenants, representations and warranties shall
            be deemed to have been remade as of the effective date of this
            Amendment.

                  (c) After giving effect to this Amendment, no Event of Default
            or Default has occurred and is continuing or would exist .

                  (d) Borrower has no defense, counterclaim or offset with
            respect to the Loan Agreement.

            7.    Effect on the Loan Agreement.

                  (a) Upon the effectiveness of Section 2 hereof, each reference
in the Loan Agreement to "this Agreement," "hereunder," "hereof," "herein" or
words of like import shall mean and be a reference to the Loan Agreement as
amended hereby.

                  (b) Except as specifically amended herein, the Loan Agreement,
and all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.

                  (c) The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided in Section 3, operate as a
waiver of any right, power or remedy of Agent or Lenders, nor constitute a
waiver of any provision of the Loan Agreement, or any other documents,
instruments or agreements executed and/or delivered under or in connection
therewith.

                                      -5-
<PAGE>
            8. Governing Law. This Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
and shall be governed by and construed in accordance with the laws of the State
of New York.

            9. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -6-
<PAGE>
            10. Counterparts; Facsimile. This Amendment may be executed by the
parties hereto in one or more counterparts, each of which shall be deemed an
original and all of which taken together shall be deemed to constitute one and
the same agreement. Any signature delivered by a party hereto by facsimile shall
be deemed to be an original signature hereto.

            IN WITNESS WHEREOF, this Amendment has been duly executed as of the
day and year first written above.

                                     TRANSACT TECHNOLOGIES INCORPORATED, as
                                        Borrower

                                    By: __/s/ Richard L. Cote
                                    Name:  Richard L. Cote
                                    Title:   Exec. VP & CFO

                                    LASALLE BUSINESS CREDIT, INC., as Agent and
                                        Lender

                                    By:   /s/ Daniel Maresca
                                    Name:   Daniel Maresca
                                    Title:   First Vice President

CONSENTED AND AGREED TO:

TRANSACT.COM, INC., as Guarantor

By:   /s/ Bart C. Shuldman
Name:   Bart C. Shuldman
Title:   President

TRANSACT TECHNOLOGIES LIMITED, as Guarantor

By:   /s/ Bart C. Shuldman
Name:   Bart C. Shuldman
Title:   President

TRANSACT TECHNOLOGIES INTERNATIONAL LTD., as Guarantor

By:   /s/ Richard L. Cote
Name:   Richard L. Cote
Title:   President

                                      -7-EXHIBIT 10.01

                     AMENDED AND RESTATED CUSTOMER AGREEMENT

            THIS AMENDED AND RESTATED CUSTOMER AGREEMENT (this "Agreement"),
made as of the 22nd day of June, 2000, by and between DEAN WITTER CORNERSTONE
FUND II L.P., a New York limited partnership (the "Customer"), and DEAN WITTER
REYNOLDS INC., a Delaware corporation ("DWR");

                              W I T N E S S E T H :
                              - - - - - - - - - -

            WHEREAS, the Customer was organized pursuant to a Certificate of
Limited Partnership filed in the office of the County Clerk of New York on
December 7, 1983, as amended, and a Limited Partnership Agreement dated as of
December 7, 1983, as amended, between Demeter Management Corporation, a Delaware
corporation ("Demeter"), acting as general partner (in such capacity, the
"General Partner"), and the limited partners of the Customer ("Limited
Partners") to trade, buy, sell, or otherwise acquire, hold, or dispose of
commodities (including, but not limited, to foreign currencies, mortgage-backed
securities, money market instruments, and any other securities or items which
are, or may become, the subject of futures contract trading), commodity futures
contracts, commodity forward contracts, commodity options, and any rights
pertaining thereto (hereinafter referred to collectively as "commodity
interests");

            WHEREAS, the Customer (which is a commodity pool) and the General
Partner (which is a registered commodity pool operator) have entered into
management agreements (the "Management Agreements") with certain trading
managers (each, a "Trading Manager" and collectively, the "Trading Managers"),
which provide that the Trading Managers have authority and responsibility,
except in certain limited situations, to direct the investment and reinvestment
of the assets of the Customer in commodity interests under the terms set forth
in the Management Agreements;

            WHEREAS, the Customer and DWR entered into that certain Amended and
Restated Customer Agreement, dated as of December 1, 1997 (the "Customer
Agreement"), whereby DWR agreed to perform non-clearing commodity interests
brokerage and certain other services for the Customer; and

            WHEREAS, the Customer and DWR wish to amend and restate the Customer
Agreement to set forth the terms and conditions upon which DWR will continue to
perform certain non-clearing commodity interests brokerage and certain other
services for the Customer;

            NOW, THEREFORE, the parties hereto hereby agree as follows:

            1. Definitions. All capitalized terms not defined herein shall have
the meaning given to them in the Customer's most recent prospectus as filed with
the Securities and Exchange Commission (the "Prospectus") relating to the
offering of units of limited partnership interest of the Customer (the "Units")
and in any amendment or supplement to the Prospectus.

            2. Duties of DWR. DWR agrees to act as a non-clearing commodity
broker for the Customer and introduce the Customer's account to Morgan Stanley &
Co. Incorporated ("MS & Co.") and Morgan Stanley & Co. International Limited
("MSIL") for execution and clearing of commodity interests transactions on
behalf of the Customer in accordance with instructions provided by the Trading
Managers, and the Customer agrees to retain DWR as a non-clearing commodity
broker for the term of this Agreement.

            DWR agrees to furnish to the Customer as soon as practicable all of
the information from time to time in its possession which Demeter, as the
general partner of the Customer, is required to furnish to the Limited Partners
pursuant to the Limited Partnership Agreement as from time to time in effect and
as required by applicable law, rules, or regulations and to perform such other
services for the Customer as are set forth herein and in the Prospectus.

            3. Obligations and Expenses. Except as otherwise set forth herein
and in the Prospectus, the Customer, and not DWR, shall be responsible for all
taxes, management and incentive fees to the Trading Managers, brokerage fees to
DWR, fees and expenses specified in the Exchange Agreement among the Customer,
Dean Witter Cornerstone Fund III, Dean Witter Cornerstone Fund IV and the
General Partner, dated as of May 31, 1984, and as amended, and all extraordinary
expenses incurred by it. In addition, the Customer, and not DWR, shall pay the
charges of MS & Co. and MSIL for executing and clearing its commodity interests
trades (as described in paragraph 5(b) below).

            4. Agreement Nonexclusive. DWR shall be free to render services of
the nature to be rendered to the Customer hereunder to other persons or entities
in addition to the Customer, and the parties acknowledge that DWR may render
such services to additional entities similar in nature to the Customer,
including other partnerships organized with Demeter as their general partner. It
is expressly understood and agreed that this Agreement is nonexclusive and that
the Customer has no obligation to execute any or all of its trades for commodity
interests through DWR. The parties acknowledge that the Customer may utilize
such other broker or brokers as Demeter may direct from time to time. The
Customer's utilization of an additional commodity broker shall neither terminate
this Agreement nor modify in any regard the respective rights and obligations of
the Customer and DWR hereunder.

            5. (a) Compensation of DWR. The Customer will pay brokerage
commissions to DWR at a roundturn rate (but charged on a half-turn basis) of 80%
of DWR's published non-member rates for speculative accounts (which covers both
the taking and liquidation of a position), and substantially equivalent rates
for currency forward contract transactions in the forward contract and interbank
markets.

            The Customer will pay DWR brokerage commissions for currency forward
contract transactions at rates established with reference to the brokerage
commission rate charged on exchange-traded currency futures contracts. DWR may
from time to time adjust the United States dollar size of currency forward
contracts so that the brokerage commission rate charged on such contracts will
approximate the rate charged on exchange-traded currency futures contracts of
similar United States dollar value. DWR shall also charge the Partnership
brokerage commissions for rollovers of forward contract positions.

               (b) Compensation of MS & Co. and MSIL. The Customer will pay
certain charges of MS & Co. and MSIL for executing and clearing trades for the
Customer pursuant to those certain Customer Agreements dated as of May 1, 2000,
among the Customer, MS & Co. and DWR, and between the Customer and MSIL. In
addition, DWR shall pay MS & Co. certain charges with respect to the execution
and clearance of trades for the Customer as agreed from time to time between DWR
and MS & Co. For purposes of clarity, the mark-up, spread, or other profit of MS
& Co. included as a part of the transaction price on each foreign currency
forward contract trade executed with MS & Co. pursuant to the Foreign Exchange
and Options Master Agreement between MS & Co. and the Customer is separate from
the fees paid to DWR or MS & Co. pursuant to either this Agreement or the
Customer Agreement among the Customer, MS & Co. and DWR.

               (c) Notwithstanding the foregoing, brokerage commissions,
together with transaction fees and costs including those paid by the Customer to
MS & Co. and MSIL, with respect to each Trading Manager's allocated Net Assets
will be capped at 13/20 of 1% per month (in the case of Trading Managers that
employ multiple trading systems in trading on behalf of the Customer, the
foregoing cap is applied on a per trading system basis) of the Customer's Net
Assets allocated to such Trading Manager or trading system as of the last day of
each month (a maximum 7.8% annual rate). In addition, the aggregate of (i)
brokerage commissions and transaction fees and costs payable by the Customer,
and (ii) net excess interest and compensating balance benefits to DWR (after
crediting the Customer with interest) shall not exceed 14% annually of the
Customer's average month-end Net Assets during each calendar year.

               (d) From time to time, DWR may increase or decrease brokerage
fees to be charged to the Customer; provided, however, that: (i) notice of such
increase is mailed to each Limited Partner at least five business days prior to
the last date on which a "Request for Redemption" must be received by the
General Partner with respect to the applicable Redemption Date; and (ii) such
notice shall describe the redemption and voting rights of Limited Partners.

            6. Investment Discretion. The parties recognize that DWR shall have
no authority to direct the commodity interests investments to be made for the
Customer's account. However, the parties agree that DWR, and not the Trading
Managers, shall have the authority and responsibility with regard to the
investment, maintenance, and management of the Customer's assets that are held
in segregated or secured accounts, as provided in Section 7 hereof.

            7. Investment of Customer Funds. The Customer shall deposit its
assets in accounts with DWR. The Customer's assets deposited with DWR will be
segregated or secured in accordance with the Commodity Exchange Act and CFTC
regulations. The Customer's assets deposited with DWR will be held in
non-interest bearing accounts or invested in securities approved for investment
by the CFTC for investment of customer funds. In any event, DWR will credit the
Customer with interest income at month-end in an amount equal to 80% of the
Customer's average daily Net Assets at a rate equal to the average yield on
13-week U.S. Treasury Bills issued during such month. All of such funds will be
available for margin for the Customer's trading. The Customer understands that
it will not receive any other interest income on its assets and that DWR will
receive interest income from MS & Co. and MSIL, as agreed from time to time by
DWR, MS & Co. and MSIL, on the Customer's assets deposited as margin with MS &
Co. and MSIL. The Customer's assets held by DWR may be used solely as margin for
the Customer's trading.

            Ownership of the right to receive interest on the Customer's assets
pursuant to the preceding paragraph shall be reflected and maintained and may be
transferred only on the books and records of DWR. Any purported transfer of such
ownership shall not be effective or recognized until such transfer shall have
been recorded on the books and records of DWR.

            8. Standard of Liability and Indemnity. DWR and its stockholder,
directors, officers, employees, and its or their respective successors or
assigns shall not be liable to the Customer, the General Partner or the Limited
Partners, or any of its or their respective successors or assigns, except by
reason of acts, or omissions due to, bad faith, misconduct, or negligence, or
for not having acted in good faith in the reasonable belief that such acts or
omissions were in, or not opposed to, the best interests of the Customer, or by
reason of any material breach of this Agreement.

            The Customer shall indemnify and hold harmless DWR and its
stockholder, directors, officers, employees, and its or their respective
successors or assigns from and against any loss, liability, damage, cost or
expense (including attorneys' and accountants' fees and expenses incurred in the
defense of any demands, claims, or lawsuits) actually and reasonably incurred
arising from any act, omission or conduct undertaken by DWR on behalf of the
Customer pursuant to this Agreement, including, without limitation, any demands,
claims or lawsuits initiated by a Limited Partner (or assignee thereof),
provided that a court of competent jurisdiction upon entry of final judgment
shall find (or, if no final judgment is entered, an opinion is rendered to the
Customer by independent counsel who shall be other than counsel to the Customer,
the General Partner or DWR) to the effect that the conduct that was the basis
for such liability was not the result of bad faith, misconduct, or negligence,
and was done in a good faith belief that it was in, or not opposed to, the best
interests of the Customer. Furthermore, in any action or proceeding brought by a
Limited Partner in the right of the Customer to which DWR is a party defendant,
DWR shall be indemnified only to the extent and subject to the conditions
specified in the New York Uniform Limited Partnership Act, as amended and in
effect on the date of the formation of the Customer.

            DWR shall indemnify and hold harmless the Customer, the General
Partner and the Limited Partners, and its or their respective successors or
assigns from and against any loss, liability, damage, cost or expense (including
attorneys' and accountants' fees and expenses incurred in the defense of any
demands, claims, or lawsuits) actually and reasonably incurred arising from any
act, omission or conduct undertaken by DWR on behalf of the Customer pursuant to
this Agreement, provided that a court of competent jurisdiction upon entry of
final judgment shall find (or, if no final judgment is entered, by an opinion
rendered to the Customer by independent counsel who shall be other than counsel
to the Customer, the General Partner or DWR) to the effect that the conduct that
was the basis for such liability was the result of bad faith, misconduct, or
negligence, or was not done in a good faith belief that it was in, or not
opposed to, the best interests of the Customer, or was by reason of any material
breach of this Agreement by DWR.

            The indemnities provided in this Section 8 by the Customer to DWR
and its stockholder, directors, officers, employees, and its or their respective
successors and assigns shall be inapplicable in the event of any liability
arising out of, or based upon, any material breach of any warranty, covenant, or
agreement of DWR contained in this Agreement to the extent caused by such event.
Likewise, the indemnities provided in this Section 8 by DWR to the Customer, the
General Partner and the Limited Partners, and any of its or their respective
successors and assigns shall be inapplicable in the event of any liability
arising out of, or based upon, any material breach of any warranty, covenant, or
agreement of the Customer contained in this Agreement to the extent caused by
such event.

            9. Term. This Agreement shall continue in effect until terminated by
either party giving not less than 60 days' prior written notice of termination
to the other party. Any such termination by either party shall be without
penalty.

            10. Complete Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the matters referred to herein,
and no other agreement, verbal or otherwise, shall be binding as between the
parties unless in writing and signed by the party against whom enforcement is
sought.

            11. Assignment. This Agreement may not be assigned by either party
without the express written consent of the other party.

            12. Amendment. This Agreement may not be amended except by the
written consent of the parties.

            13. Notices. All notices required or desired to be delivered under
this Agreement shall be in writing and shall be effective when delivered
personally on the day delivered, or when given by registered or certified mail,
postage prepaid, return receipt requested, on the day of receipt, addressed as
follows (or to such other address as the party entitled to notice shall
hereafter designate in accordance with the terms hereof):

            if to the Customer:

                  DEAN WITTER CORNERSTONE FUND II L.P.
                  c/o Demeter Management Corporation
                  Two World Trade Center, 62nd Floor
                  New York, New York  10048
                  Attn: Robert E. Murray
                        President

            if to DWR:

                  DEAN WITTER REYNOLDS INC.
                  Two World Trade Center, 62nd Floor
                  New York, New York  10048
                  Attn: Robert E. Murray
                        Senior Vice President

            14. Survival. The provisions of this Agreement shall survive the
termination of this Agreement with respect to any matter arising while this
Agreement was in effect.

            15. Headings. Headings of Sections herein are for the convenience of
the parties only and are not intended to be a part of or to affect the meaning
or interpretation of this Agreement.

            16. Incorporation by Reference. The Futures Customer Agreement
annexed hereto is hereby incorporated by reference herein and made a part hereof
to the same extent as if such document were set forth in full herein. If any
provision of this Agreement is or at any time becomes inconsistent with the
annexed document, the terms of this Agreement shall control.

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

                                    DEAN WITTER CORNERSTONE FUND II L.P.

                                    By: Demeter Management Corporation,
                                        General Partner

                                        By: /s/ Robert E. Murray
                                           -------------------------------------
                                           Robert E. Murray
                                           President

                                    DEAN WITTER REYNOLDS INC.

                                    By: /s/ Robert E. Murray
                                       ---------------------------------------
                                       Robert E. Murray
                                       Senior Vice President

<PAGE>

FUTURES CUSTOMER AGREEMENT

In consideration of the acceptance by Dean Witter Reynolds Inc. ("DWR") of one
or more accounts of the undersigned ("Customer") (if more than one account is
carried by DWR, all are covered by this Agreement and are referred to
collectively as the "Account") and DWR's agreement to act as Customer's broker
for the execution, clearance and/or carrying of transactions for the purchase
and sale of commodity interests, including commodities, commodity futures
contracts and commodity options, Customer agrees as follows:

1.    APPLICABLE RULES AND REGULATIONS - The Account and each transaction
      therein shall be subject to the terms of this Agreement and to (a) all
      applicable laws and the regulations, rules and orders (collectively
      "regulations") of all regulatory and self-regulatory organizations having
      jurisdiction and (b) the constitution, by-laws, rules, regulations,
      orders, resolutions, interpretations and customs and usages (collectively
      "rules") of the market and any associated clearing organization (each an
      "exchange") on or subject to the rules of which such transaction is
      executed and/or cleared. The reference in the preceding sentence to
      exchange rules is solely for DWR's protection and DWR's failure to comply
      therewith shall not constitute a breach of this Agreement or relieve
      Customer of any obligation or responsibility under this Agreement. DWR
      shall not be liable to Customer as a result of any action by DWR, its
      officers, directors, employees or agents to comply with any rule or
      regulation.

2.    PAYMENTS TO DWR - Customer agrees to pay to DWR immediately on request (a)
      commissions, fees and service charges as are in effect from time to time
      together with all applicable regulatory and self-regulatory organization
      and exchange fees, charges and taxes; (b) the amount of any debit balance
      or any other liability that may result from transactions executed for the
      account; and (c) interest on such debit balance or liability at the
      prevailing rate charged by DWR at the time such debit balance or liability
      arises and service charges on any such debit balance or liability together
      with any reasonable costs and attorney's fees incurred in collecting any
      such debit balance or liability. Customer acknowledges that DWR may charge
      commissions at other rates to other customers.

3.    CUSTOMER'S DUTY TO MAINTAIN ADEQUATE MARGIN - Customer shall at all times
      and without prior notice or demand from DWR maintain adequate margins in
      the account so as continually to meet the original and maintenance margin
      requirements established by DWR for Customer. DWR may change such
      requirements from time to time at DWR's discretion. Such margin
      requirements may exceed the margin requirements set by any exchange or
      other regulatory authority and may vary from DWR's requirements for other
      customers. Customer agrees, when so requested, immediately to wire
      transfer margin funds and to furnish DWR with names of bank officers for
      immediate verification of such transfers. Customer acknowledges and agrees
      that DWR may receive and retain as its own any interest, increment,
      profit, gain or benefit directly or indirectly, accruing from any of the
      funds DWR receives from Customer.

4.    DELIVERY; OPTION EXERCISE

      (a)   Customer acknowledges that the making or accepting of delivery
            pursuant to a futures contract may involve a much higher degree of
            risk than liquidating a position by offset. DWR has no control over
            and makes no warranty with respect to grade, quality or tolerances
            of any commodity delivered in fulfillment of a contract.

      (b)   Customer agrees to give DWR timely notice and immediately on request
            to inform DWR if Customer intends to make or take delivery under a
            futures contract or to exercise an option contract. If so requested,
            Customer shall provide DWR with satisfactory assurances that
            Customer can fulfill Customer's obligation to make or take delivery
            under any contract. Customer shall furnish DWR with property
            deliverable by it under any contract in accordance with DWR's
            instructions.

      (c)   DWR shall not have any obligation to exercise any long option
            contract unless Customer has furnished DWR with timely exercise
            instructions and sufficient initial margin with respect to each
            underlying futures contract.

5.    FOREIGN CURRENCY - If DWR enters into any transaction for Customer
      effected in a currency other than U.S. dollars: (a) any profit or loss
      caused by changes in the rate of exchange for such currency shall be for
      Customer's account and risk and (b) unless another currency is designated
      in DWR's confirmation of such transaction, all margin for such transaction
      and the profit or loss on the liquidation of such transaction shall be in
      U.S. dollars at a rate of exchange determined by DWR in its discretion on
      the basis of then prevailing market rates of exchange for such foreign
      currency.

6.    DWR MAY LIMIT POSITIONS HELD - Customer agrees that DWR, at its
      discretion, may limit the number of open positions (net or gross) which
      Customer may execute, clear and/or carry with or acquire through it.
      Customer agrees (a) not to make any trade which would have the effect of
      exceeding such limits, (b) that DWR may require Customer to reduce open
      positions carried with DWR and (c) that DWR may refuse to accept orders to
      establish new positions. DWR may impose and enforce such limits, reduction
      or refusal whether or not they are required by applicable law, regulations
      or rules. Customer shall comply with all position limits established by
      any regulatory or self-regulatory organization or any exchange. In
      addition, Customer agrees to notify DWR promptly if customer is required
      to file position reports with any regulatory or self-regulatory
      organization or with any exchange.

7.    NO WARRANTY AS TO INFORMATION OR RECOMMENDATION - Customer acknowledges
      that:

      (a)   Any market recommendations and information DWR may communicate to
            Customer, although based upon information obtained from sources
            believed by DWR to be reliable, may be incomplete and not subject to
            verification;

      (b)   DWR makes no representation, warranty or guarantee as to, and shall
            not be responsible for, the accuracy or completeness of any
            information or trading recommendation furnished to Customer;

      (c)   recommendations to Customer as to any particular transaction at any
            given time may differ among DWR's personnel due to diversity in
            analysis of fundamental and technical factors and may vary from any
            standard recommendation made by DWR in its market letters or
            otherwise; and

      (d)   DWR has no obligation or responsibility to update any market
            recommendations or information it communicates to Customer.

            Customer understands that DWR and its officers, directors,
affiliates, stockholders, representatives or associated persons may have
positions in and may intend to buy or sell commodity interests which are the
subject of market recommendations furnished to Customer, and that the market
positions of DWR or any such officer, director, affiliate, stockholder,
representative or associated person may or may not be consistent with the
recommendations furnished to Customer by DWR.

8.    LIMITS ON DWR DUTIES; LIABILITY - Customer agrees:

      (a)   that DWR has no duty to apprise Customer of news or of the value of
            any commodity interests or collateral pledged or in any way to
            advise Customer with respect to the market;

      (b)   that the commissions which DWR receives are consideration solely for
            the execution, reporting and carrying of Customer's trades;

      (c)   that if Customer has authorized any third party or parties to place
            orders or effect transactions on behalf of Customer in any Account,
            each such party has been selected by Customer based on its own
            evaluation and assessment of such party and that such party is
            solely the agent of Customer, and if any such party allocates
            commodity interests among its customers, Customer has reviewed each
            such party's commodity interest allocation system, has satisfied
            itself that such allocation system is fair and will seek recovery
            solely from such party to recover any damages sustained by Customer
            as the result of any allocation made by such party; and

      (d)   to waive any and all claims, rights or causes of action which
            Customer has or may have against DWR or its officers, employees and
            agents (i) arising in whole or in part, directly or indirectly, out
            of any act or omission of any person, whether or not legally deemed
            an agent of DWR, who refers or introduces Customer to DWR or places
            orders for Customer and (ii) for any punitive damages and to limit
            any claims arising out of this Agreement or the Account to
            Customer's direct out-of-pocket damages.

9.    EXTRAORDINARY EVENTS - Customer shall have no claim against DWR for any
      loss, damage, liability, cost, charge, expense, penalty, fine or tax
      caused directly or indirectly by (a) governmental, court, exchange,
      regulatory or self-regulatory organization restrictions, regulations,
      rules, decisions or orders, (b) suspension or termination of trading, (c)
      war or civil or labor disturbance, (d) delay or inaccuracy in the
      transmission or reporting of orders due to a breakdown or failure of
      computer services, transmission or communication facilities, (e) the
      failure or delay by any exchange to enforce its rules or to pay to DWR any
      margin due in respect of Customer's Account, (f) the failure or delay by
      any bank, trust company, clearing organization or other person which,
      pursuant to applicable exchange rules, is holding Customer funds,
      securities or other property to pay or deliver the same to DWR or (g) any
      other cause or causes beyond DWR's control.

10.   INDEMNIFICATION OF DWR - Customer agrees to indemnify, defend and hold
      harmless DWR and its officers, employees and agents from and against any
      loss, cost, claim, damage (including any consequential cost, loss or
      damage), liability or expense (including reasonable attorneys' fees) and
      any fine, sanction or penalty made or imposed by any regulatory or
      self-regulatory authority or any exchange as the result, directly or
      indirectly, of:

      (a)   Customer's failure or refusal to comply with any provision of this
            Agreement or perform any obligation on its part to be performed
            pursuant to this Agreement; and

      (b)   Customer's failure to timely deliver any security, commodity or
            other property previously sold by DWR on Customer's behalf.

11    NOTICES; TRANSMITTALS - DWR shall transmit all communications to Customer
      at Customer's address, telefax or telephone number set forth in the
      accompanying Futures Account Application or to such other address as
      Customer may hereafter direct in writing. Customer shall transmit all
      communications to DWR (except routine inquiries concerning the Account) to
      130 Liberty Street, New York, NY 10006, Attention: Futures Compliance
      Officer. All payments and deliveries to DWR shall be made as instructed by
      DWR from time to time and shall be deemed received only when actually
      received by DWR.

12.   CONFIRMATION CONCLUSIVE - Confirmation of trades and any other notices
      sent to Customer shall be conclusive and binding on Customer unless
      Customer or Customer's agent notifies DWR to the contrary (a) in the case
      of an oral report, orally at the time received by Customer or its agent or
      (b) in the case of a written report or notice, in writing prior to opening
      of trading on the business day next following receipt of the report. In
      addition, if Customer has not received a written confirmation that a
      commodity interest transaction has been executed within three business
      days after Customer has placed an order with DWR to effect such
      transaction, and has been informed or believes that such order has been or
      should have been executed, then Customer immediately shall notify DWR
      thereof. Absent such notice, Customer conclusively shall be deemed
      estopped to object and to have waived any such objection to the failure to
      execute or cause to be executed such transaction. Anything in this Section
      12 withstanding, neither Customer nor DWR shall be bound by any
      transaction or price reported in error.

13.   SECURITY INTEREST - All money and property ("collateral") now or at any
      future time held in Customer's Account, or otherwise held by DWR for
      Customer, is subject to a security interest in DWR's favor to secure any
      indebtedness at any time owing to it by Customer. DWR, in its discretion,
      may liquidate any collateral to satisfy any margin or Account deficiencies
      or to transfer the collateral to the general ledger account of DWR.

14.   TRANSFER OF FUNDS - At any time and from time to time and without prior
      notice to Customer, DWR may transfer from one account to another account
      in which Customer has any interest, such excess funds, equities,
      securities or other property as in DWR's judgment may be required for
      margin, or to reduce any debit balance or to reduce or satisfy any
      deficits in such other accounts except that no such transfer may be made
      from a segregated account subject to the Commodity Exchange Act to another
      account maintained by Customer unless either Customer has authorized such
      transfer in writing or DWR is effecting such transfer to enforce DWR's
      security interest pursuant to Section 13. DWR promptly shall confirm all
      transfers of funds made pursuant hereto to Customer in writing.

15.   DWR'S RIGHT TO LIQUIDATE CUSTOMER POSITIONS - In addition to all other
      rights of DWR set forth in this Agreement:

      (a)   when directed or required by a regulatory or self-regulatory
            organization or exchange having jurisdiction over DWR or the
            Account;

      (b)   whenever, in its discretion, DWR considers it necessary for its
            protection because of margin requirements or otherwise;

      (c)   if Customer or any affiliate of Customer repudiates, violates,
            breaches or fails to perform on a timely basis any term, covenant or
            condition on its part to be performed under this Agreement or
            another agreement with DWR;

      (d)   if a case in bankruptcy is commenced or if a proceeding under any
            insolvency or other law for the protection of creditors or for the
            appointment of a receiver, liquidator, trustee, conservator,
            custodian or similar officer is filed by or against Customer or any
            affiliate of Customer, or if Customer or any affiliate of Customer
            makes or proposes to make any arrangement or composition for the
            benefit of its creditors, or if Customer (or any such affiliate) or
            any or all of its property is subject to any agreement, order,
            judgment or decree providing for Customer's dissolution, winding-up,
            liquidation, merger, consolidation, reorganization or for the
            appointment of a receiver, liquidator, trustee, conservator,
            custodian or similar officer of Customer, such affiliate or such
            property;

      (e)   DWR is informed of Customer's death or mental incapacity; or

      (f)   if an attachment or similar order is levied against the Account or
            any other account maintained by Customer or any affiliate of
            Customer with DWR;

      DWR shall have the right to (i) satisfy any obligations due DWR out of any
      Customer's property in DWR's custody or control, (ii) liquidate any or all
      of Customer's commodity interest positions, (iii) cancel any or all of
      Customer's outstanding orders, (iv) treat any or all of Customer's
      obligations due DWR as immediately due and payable, (v) sell any or all of
      Customer's property in DWR's custody or control in such manner as DWR
      determines to be commercially reasonable, and/or (vi) terminate any or all
      of DWR's obligations for future performance to Customer, all without any
      notice to or demand on Customer. Any sale hereunder may be made in any
      commercially reasonable manner. Customer agrees that a prior demand, call
      or notice shall not be considered a waiver of DWR's right to act without
      demand or notice as herein provided, that Customer shall at all times be
      liable for the payment of any debit balance owing in each account upon
      demand whether occurring upon a liquidation as provided under this Section
      15 or otherwise under this Agreement, and that in all cases Customer shall
      be liable for any deficiency remaining in each Account in the event of
      liquidation thereof in whole or in part together with interest thereon and
      all costs relating to liquidation and collection (including reasonable
      attorneys' fees).

16.   CUSTOMER REPRESENTATIONS, WARRANTIES AND AGREEMENTS - Customer represents
      and warrants to and agrees with DWR that:

      (a)   Customer has full power and authority to enter into this Agreement
            and to engage in the transactions and perform its obligations
            hereunder and contemplated hereby and (i) if a corporation or a
            limited liability company, is duly organized under the laws of the
            jurisdiction set forth in the accompanying Futures Account
            Application, or (ii) if a partnership, is duly organized pursuant to
            a written partnership agreement and the general partner executing
            this Agreement is duly authorized to do so under the partnership
            agreement;

      (b)   Neither Customer nor any partner, director, officer, member, manager
            or employee of Customer nor any affiliate of Customer is a partner,
            director, officer, member, manager or employee of a futures
            commission merchant introducing broker, exchange or self-regulatory
            organization or an employee or commissioner of the Commodity Futures
            Trading Commission (the "CFTC"), except as previously disclosed in
            writing to DWR;

      (c)   The accompanying Futures Account Application and Personal Financial
            Statements, if applicable, (including any financial statements
            furnished in connection therewith) are true, correct and complete.
            Except as disclosed on the accompanying Futures Account Application
            or otherwise provided in writing, (i) Customer is not a commodity
            pool or is exempt from registration under the rules of the
            Commission, and (ii) Customer is acting solely as principal and no
            one other than Customer has any interest in any Account of Customer.
            Customer hereby authorizes DWR to contact such banks, financial
            institutions and credit agencies as DWR shall deem appropriate for
            verification of the information contained herein.

      (d)   Customer has determined that trading in commodity interests is
            appropriate for Customer, is prudent in all respects and does not
            and will not violate Customer's charter or by-laws (or other
            comparable governing document) or any law, rule, regulation,
            judgment, decree, order or agreement to which Customer or its
            property is subject or bound;

      (e)   As required by CFTC regulations, Customer shall create, retain and
            produce upon request of the applicable contract market, the CFTC or
            the United States Department of Justice documents (such as
            contracts, confirmations, telex printouts, invoices and documents of
            title) with respect to cash transactions underlying exchanges of
            futures for cash commodities or exchange of futures in connection
            with cash commodity transactions;

      (f)   Customer consents to the electronic recording, at DWR's discretion,
            of any or all telephone conversations with DWR (without automatic
            tone warning device), the use of same as evidence by either party in
            any action or proceeding arising out of the Agreement and in DWR's
            erasure, at its discretion, of any recording as part of its regular
            procedure for handling of recordings;

      (g)   Absent a separate written agreement between Customer and DWR with
            respect to give-ups, DWR, in its discretion, may, but shall have no
            obligation to, accept from other brokers commodity interest
            transactions executed by such brokers on an exchange for Customer
            and proposed to be "given-up" to DWR for clearance and/or carrying
            in the Account;

      (h)   DWR, for and on behalf of Customer, is authorized and empowered to
            place orders for commodity interest transactions through one or more
            electronic or automated trading systems maintained or operated by or
            under the auspices of an exchange, that DWR shall not be liable or
            obligated to Customer for any loss, damage, liability, cost or
            expense (including but not limited to loss of profits, loss of use,
            incidental or consequential damages) incurred or sustained by
            Customer and arising in whole or in part, directly or indirectly,
            from any fault, delay, omission, inaccuracy or termination of a
            system or DWR's inability to enter, cancel or modify an order on
            behalf of Customer on or through a system. The provisions of this
            Section 16(h) shall apply regardless of whether any customer claim
            arises in contract, negligence, tort, strict liability, breach of
            fiduciary obligations or otherwise; and

      (i)   If Customer is subject to the Financial Institution Reform, Recovery
            and Enforcement Act of 1989, the certified resolutions set forth
            following this Agreement have been caused to be reflected in the
            minutes of Customer's Board of Directors (or other comparable
            governing body) and this Agreement is and shall be, continuously
            from the date hereof, an official record of Customer.

      Customer agrees to promptly notify DWR in writing if any of the warranties
      and representations contained in this Section 16 becomes inaccurate or in
      any way ceases to be true, complete and correct.

17.   SUCCESSORS AND ASSIGNS - This Agreement shall inure to the benefit of DWR,
      its successors and assigns, and shall be binding upon Customer and
      Customer's executors, trustees, administrators, successors and assigns,
      provided, however, that this Agreement is not assignable by Customer
      without the prior written consent of DWR.

18.   MODIFICATION OF AGREEMENT BY DWR; NON-WAIVER PROVISION - This Agreement
      may only be altered, modified or amended by mutual written consent of the
      parties, except that if DWR notifies Customer of a change in this
      Agreement and Customer thereafter effects a commodity interest transaction
      in an account, Customer agrees that such action by Customer will
      constitute consent by Customer to such change. No employee of DWR other
      than DWR's General Counsel or his or her designee, has any authority to
      alter, modify, amend or waive in any respect any of the terms of this
      Agreement. The rights and remedies conferred upon DWR shall be cumulative,
      and its forbearance to take any remedial action available to it under this
      Agreement shall not waive its right at any time or from time to time
      thereafter to take such action.

19.   SEVERABILITY - If any term or provision hereof or the application thereof
      to any persons or circumstances shall to any extent be contrary to any
      exchange, government or self-regulatory regulation or contrary to any
      federal, state or local law or otherwise be invalid or unenforceable, the
      remainder of this Agreement or the application of such term or provision
      to persons or circumstances other than those as to which it is contrary,
      invalid or unenforceable, shall not be affected thereby.

20.   CAPTIONS - All captions used herein are for convenience only, are not a
      part of this Agreement, and are not to be used in construing or
      interpreting any aspect of this Agreement.

21.   TERMINATION - This Agreement shall continue in force until written notice
      of termination is given by Customer or DWR. Termination shall not relieve
      either party of any liability or obligation incurred prior to such notice.
      Upon giving or receiving notice of termination, Customer will promptly
      take all action necessary to transfer all open positions in each account
      to another futures commission merchant.

22.   ENTIRE AGREEMENT - This Agreement constitutes the entire agreement between
      Customer and DWR with respect to the subject matter hereof and supersedes
      any prior agreements between the parties with respect to such subject
      matter.

23.   GOVERNING LAW; CONSENT TO JURISDICTION -

      (a)   In case of a dispute between Customer and DWR arising out of or
            relating to the making or performance of this Agreement or any
            transaction pursuant to this Agreement (i) this Agreement and its
            enforcement shall be governed by the laws of the State of New York
            without regard to principles of conflicts of laws, and (ii) Customer
            will bring any legal proceeding against DWR in, and Customer hereby
            consents in any legal proceeding by DWR to the jurisdiction of, any
            state or federal court located within the State and City of New York
            in connection with all legal proceedings arising directly,
            indirectly or otherwise in connection with, out of, related to or
            from Customer's Account, transactions contemplated by this Agreement
            or the breach thereof. Customer hereby waives all objections
            Customer, at any time, may have as to the propriety of the court in
            which any such legal proceedings may be commenced. Customer also
            agrees that any service of process mailed to Customer at any address
            specified to DWR shall be deemed a proper service of process on the
            undersigned.

      (b)   Notwithstanding the provisions of Section 23 (a)(ii), Customer may
            elect at this time to have all disputes described in this Section
            resolved by arbitration. To make such election, Customer must sign
            the Arbitration Agreement set forth in Section 24. Notwithstanding
            such election, any question relating to whether Customer or DWR has
            commenced an arbitration proceeding in a timely manner, whether a
            dispute is within the scope of the Arbitration Agreement or whether
            a party (other than Customer or DWR) has consented to arbitration
            and all proceedings to compel arbitration shall be determined by a
            court as specified in Section 23 (a)(ii).

24.   ARBITRATION AGREEMENT (OPTIONAL) - Every dispute between Customer and DWR
      arising out of or relating to the making or performance of this Agreement
      or any transaction pursuant to this Agreement, shall be settled by
      arbitration in accordance with the rules, then in effect, of the National
      Futures Association, the contract market upon which the transaction giving
      rise to the claim was executed, or the National Association of Securities
      Dealers as Customer may elect. If Customer does not make such election by
      registered mail addressed to DWR at 130 Liberty Street, 29th Floor, New
      York, NY 10006; Attention: Deputy General Counsel, within 45 days after
      demand by DWR that the Customer make such election, then DWR may make such
      election. DWR agrees to pay any incremental fees which may be assessed by
      a qualified forum for making available a "mixed panel" of arbitrators,
      unless the arbitrators determine that Customer has acted in bad faith in
      initiating or conducting the proceedings. Judgment upon any award rendered
      by the arbitrators may be entered in any court having jurisdiction
      thereof.

      IN ADDITION TO FOREIGN FORUMS, THREE FORUMS EXIST FOR THE RESOLUTION OF
      COMMODITY DISPUTES: CIVIL COURT LITIGATION, REPARATIONS AT THE COMMODITY
      FUTURES TRADING COMMISSION ("CFTC") AND ARBITRATION CONDUCTED BY A
      SELF-REGULATORY OR OTHER PRIVATE ORGANIZATION.

      THE CFTC RECOGNIZES THAT THE OPPORTUNITY TO SETTLE DISPUTES BY ARBITRATION
      MAY IN SOME CASES PROVIDE MANY BENEFITS TO CUSTOMERS, INCLUDING THE
      ABILITY TO OBTAIN AN EXPEDITIOUS AND FINAL RESOLUTION OF DISPUTES WITHOUT
      INCURRING SUBSTANTIAL COSTS. THE CFTC REQUIRES, HOWEVER, THAT EACH
      CUSTOMER INDIVIDUALLY EXAMINE THE RELATIVE MERITS OF ARBITRATION AND THAT
      YOUR CONSENT TO THIS ARBITRATION AGREEMENT BE VOLUNTARY.

      BY SIGNING THIS AGREEMENT, YOU (1) MAY BE WAIVING YOUR RIGHT TO SUE IN A
      COURT OF LAW AND (2) ARE AGREEING TO BE BOUND BY ARBITRATION OF ANY CLAIMS
      OR COUNTERCLAIMS WHICH YOU OR DWR MAY SUBMIT TO ARBITRATION UNDER THIS
      AGREEMENT. YOU ARE NOT, HOWEVER, WAIVING YOUR RIGHT TO ELECT INSTEAD TO
      PETITION THE CFTC TO INSTITUTE REPARATIONS PROCEEDINGS UNDER SECTION 14 OF
      THE COMMODITY EXCHANGE ACT WITH RESPECT TO ANY DISPUTE WHICH MAY BE
      ARBITRATED PURSUANT TO THIS AGREEMENT. IN THE EVENT A DISPUTE ARISES, YOU
      WILL BE NOTIFIED IF DWR INTENDS TO SUBMIT THE DISPUTE TO ARBITRATION. IF
      YOU BELIEVE A VIOLATION OF THE COMMODITY EXCHANGE ACT IS INVOLVED AND IF
      YOU PREFER TO REQUEST A SECTION 14 "REPARATIONS" PROCEEDINGS BEFORE THE
      CFTC, YOU WILL HAVE 45 DAYS FROM THE DATE OF SUCH NOTICE IN WHICH TO MAKE
      THAT ELECTION.

      YOU NEED NOT AGREE TO THIS ARBITRATION AGREEMENT TO OPEN AN ACCOUNT WITH
      DWR. See 17 CFR 180.1-180.5. ACCEPTANCE OF THIS ARBITRATION AGREEMENT
      REQUIRES A SEPARATE SIGNATURE ON PAGE 8.

25.   CONSENT TO TAKE THE OTHER SIDE OF ORDERS (OPTIONAL) - Without its prior
      notice, Customer agrees that when DWR executes sell or buy orders on
      Customer's behalf, DWR, its directors, officers, employees, agents,
      affiliates, and any floor broker may take the other side of Customer's
      transaction through any account of such person subject to its being
      executed at prevailing prices in accordance with and subject to the
      limitations and conditions, if any, contained in applicable rules and
      regulations.

26.   AUTHORIZATION TO TRANSFER FUNDS (OPTIONAL) - Without limiting other
      provisions herein, DWR is authorized to transfer from any segregated
      account subject to the Commodity Exchange Act carried by DWR for the
      Customer to any other account carried by DWR for the Customer such amount
      of excess funds as in DWR's judgment may be necessary at any time to avoid
      a margin call or to reduce a debit balance in said account. It is
      understood that DWR will confirm in writing each such transfer of funds
      made pursuant to this authorization within a reasonable time after such
      transfer.

27.   SUBORDINATION AGREEMENT (APPLIES ONLY TO ACCOUNTS WITH FUNDS HELD IN
      FOREIGN COUNTRIES) - Funds of customers trading on United States contract
      markets may be held in accounts denominated in a foreign currency with
      depositories located outside the United States or its territories if the
      customer is domiciled in a foreign country or if the funds are held in
      connection with contracts priced and settled in a foreign currency. Such
      accounts are subject to the risk that events could occur which hinder or
      prevent the availability of these funds for distribution to customers.
      Such accounts also may be subject to foreign currency exchange rate risks.

      If authorized below, Customer authorizes the deposit of funds into such
      foreign depositories. For customers domiciled in the United States, this
      authorization permits the holding of funds in regulated accounts offshore
      only if such funds are used to margin, guarantee, or secure positions in
      such contracts or accrue as a result of such positions. In order to avoid
      the possible dilution of other customer funds, a customer who has funds
      held outside the United States agrees by accepting this subordination
      agreement that his claims based on such funds will be subordinated as
      described below in the unlikely event both of the following conditions are
      met: (1) DWR is placed in receivership or bankruptcy, and (2) there are
      insufficient funds available for distribution denominated in the foreign
      currency as to which the customer has a claim to satisfy all claims
      against those funds.

      By initialing the Subordination Agreement below, Customer agrees that if
      both of the conditions listed above occur, its claim against DWR's assets
      attributable to funds held overseas in a particular foreign currency may
      be satisfied out of segregated customer funds held in accounts denominated
      in dollars or other foreign currencies only after each customer whose
      funds are held in dollars or in such other foreign currencies receives its
      pro-rata portion of such funds. It is further agreed that in no event may
      a customer whose funds are held overseas receive more than its pro-rata
      share of the aggregate pool consisting of funds held in dollars, funds
      held in the particular foreign currency, and non-segregated assets of DWR.

<PAGE>

OPTIONAL ELECTIONS

The following provisions, which are set forth in this agreement, need not be
entered into to open the Account. Customer agrees that its optional elections
are as follows:

<TABLE>
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<S>                                                 <C>
                                                    SIGNATURE REQUIRED FOR EACH ELECTION
ARBITRATION AGREEMENT:
(Agreement Paragraph 24)
                                                    -----------------------------------------

CONSENT TO TAKE THE OTHER SIDE OF ORDERS:
(Agreement Paragraph 25)                            X     /s/ Robert E. Murray
                                                    -----------------------------------------

AUTHORIZATION TO TRANSFER FUNDS:
(Agreement Paragraph 26)                            X     /s/ Robert E. Murray
                                                    -----------------------------------------

ACKNOWLEDGEMENT TO SUBORDINATION AGREEMENT
(Agreement Paragraph 27)                            X     /s/ Robert E. Murray
                                                    -----------------------------------------
                                                    (Required for accounts holding non-U.S.
                                                    currency)
=============================================================================================

HEDGE ELECTION

      Customer confirms that all transactions in the Account will            [ ]
      represent bona fide hedging transactions, as defined by the
      Commodity Futures Trading Commission, unless DWR is notified
      otherwise not later than the time an order is placed for the
      Account [check box if applicable]:

Pursuant to CFTC Regulation 190.06(d), Customer specifies and agrees, with respect to hedging
transactions in the Account, that in the unlikely event of DWR's bankruptcy, it prefers that
the bankruptcy trustee [check appropriate box]:

   A.   Liquidate all open contracts without first seeking instructions      [ ]
        either from or on behalf of Customer.

   B.   Attempt to obtain instructions with respect to the disposition of    [ ]
        all open contracts.
        (IF NEITHER BOX IS CHECKED, CUSTOMER SHALL BE DEEMED TO ELECT A)

=============================================================================================

ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENTS

The undersigned each hereby acknowledges its separate receipt from DWR, and its understanding
of each of the following documents prior to the opening of the account:

o Risk Disclosure Statement for Futures          o Project ATM Customer Information
  and Options (in the form prescribed by           Statement
  CFTC Regulation 1.55(c))

o LME Risk Warning Notice                        o Questions & Answers on Flexible
                                                   Options Trading at the CBOT
o Dean Witter Order Presumption for After
  Hours Electronic Markets                       o CME Average Pricing System Disclosure
                                                   Statement
o NYMEX ACCESSSM Risk Disclosure Statement       o Special Notice to Foreign Brokers and
                                                   Foreign Traders
o Globex(R) Customer Information and Risk
  Disclosure Statement
=============================================================================================

REQUIRED SIGNATURES

The undersigned has received, read, understands and agrees to all the provisions of this
Agreement and the separate risk disclosure statements enumerated above and agrees to promptly
notify DWR in writing if any of the warranties and representations contained herein become
inaccurate or in any way cease to be true, complete and correct.

DEAN WITTER CORNERSTONE FUND II L.P.
---------------------------------------------------------------------------------------------
CUSTOMER NAME(S)
By: DEMETER MANAGEMENT CORPORATION

By: /s/ Robert E. Murray                           June 22, 2000
-----------------------------------------------    ------------------------------------------
AUTHORIZED SIGNATURE(S)                            DATE

Robert E. Murray, President and Chairman
---------------------------------------------------------------------------------------------
(If applicable, print name and title of signatory)

</TABLE>

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