Document:

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                          FOREIGN EXCHANGE AND OPTIONS
                                MASTER AGREEMENT
                                     (FEOMA)

         MASTER AGREEMENT dated as of APRIL 30, 2000 by and between MORGAN
STANLEY & CO. INCORPORATED, a Delaware corporation, and MORGAN STANLEY DEAN
WITTER SPECTRUM SELECT L.P., A Delaware Limited Partnership.

SECTION 1.     DEFINITIONS

         Unless otherwise required by the context, the following terms shall
have the following meanings in the Agreement:

         "AGREEMENT" has the meaning given to it in Section 2.2.

         "AMERICAN STYLE OPTION" means an Option which may be exercised on any
Business Day up to and including the Expiration Time.

         "BASE CURRENCY", as to a Party, means the Currency agreed to as such in
relation to it in Part VII of the Schedule.

         "BUSINESS DAY" means for purposes of: (i) Section 3.2, a day which is a
Local Banking Day for the applicable Designated Office of the Buyer; (ii)
Section 5.1 and the definition of American Style Option, a day which is a Local
Banking Day for the applicable Designated Office of the Seller; (iii) clauses
(i), (viii) and (xii) of the definition of Event of Default, a day which is a
Local Banking Day for the Non-Defaulting Party; (iv) solely in relation to
delivery of a Currency, a day which is a Local Banking Day in relation to that
Currency; and (v) any other provision of the Agreement, a day which is a Local
Banking Day for the applicable Designated Offices of both Parties; PROVIDED,
HOWEVER, that neither Saturday nor Sunday shall be considered a Business Day for
any purpose.

         "BUYER" means the owner of an Option.

         "CALL" means an Option entitling, but not obligating (except upon
exercise), the Buyer to purchase from the Seller at the Strike Price a specified
quantity of the Call Currency.

         "CALL CURRENCY" means the Currency agreed to as such at the time an
Option is entered into, as evidenced in a Confirmation.

         "CLOSE-OUT AMOUNT" has the meaning given to it in Section 8.1.

         "CLOSE-OUT DATE" means a day on which, pursuant to the provisions of
Section 8.1, the Non-Defaulting Party closes out Currency Obligations and/or
Options or such close-out occurs automatically.

         "CLOSING GAIN", as to the Non-Defaulting Party, means the difference
described as such in relation to a particular Value Date under the provisions of
Section 8.1.

         "CLOSING LOSS", as to the Non-Defaulting Party, means the difference
described as such in relation to a particular Value Date under the provisions of
Section 8.1.

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         "CONFIRMATION" means a writing (including telex, facsimile or other
electronic means from which it is possible to produce a hard copy) evidencing an
FX Transaction or an Option, and specifying:

         (A) in the case of an FX Transaction, the following information:

               (i) the Parties thereto and the Designated Offices through which
they are respectively acting,

               (ii) the amounts of the Currencies being bought or sold and by
which Party,

               (iii) the Value Date, and

               (iv) any other term generally included in such a writing in
accordance with the practice of the relevant foreign exchange market; and

         (B) in the case of an Option, the following information:

               (i) the Parties thereto and the Designated Offices through which
they are respectively acting,

               (ii) whether the Option is a Call or a Put,

               (iii) the Call Currency and the Put Currency that are the subject
of the Option and their respective quantities,

               (iv) which Party is the Seller and which is the Buyer,

               (v) the Strike Price,

               (vi) the Premium and the Premium Payment Date,

               (vii) the Expiration Date,

               (viii) the Expiration Time,

               (ix) whether the Option is an American Style Option or a European
Style Option, and

               (x) such other matters, if any, as the Parties may agree.

         "CREDIT SUPPORT" has the meaning given to it in Section 8.2.

         "CREDIT SUPPORT DOCUMENT", as to a Party (the "first Party"), means a
guaranty, hypothecation agreement, margin or security agreement or document, or
any other document containing an obligation of a third party ("Credit Support
Provider") or of the first Party in favor of the other Party supporting any
obligations of the first Party under the Agreement.

         "CREDIT SUPPORT PROVIDER" has the meaning given to it in the definition
of Credit Support Document.

         "CURRENCY" means money denominated in the lawful currency of any
country or the Ecu.

         "CURRENCY OBLIGATION" means any obligation of a Party to deliver a
Currency pursuant to an FX Transaction, the application of Section 6.3(a) or
(b), or an exercised Option (except, for the purposes of Section 8.1 only, one
that is to be settled at its In-the-Money Amount under Section 5.5).

         "CURRENCY PAIR" means the two Currencies which potentially may be
exchanged in connection with an FX Transaction or upon the exercise of an
Option, one of which shall be the Put Currency and the other the Call Currency.

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         "CUSTODIAN" has the meaning given to it in the definition of Insolvency
Proceeding.

         "DEFAULTING PARTY" has the meaning given to it in the definition of
Event of Default.

         "DESIGNATED OFFICE(S)", as to a Party, means the office or offices
specified in Part II of the Schedule.

         "EFFECTIVE DATE" means the date of this Master Agreement.

         "EUROPEAN STYLE OPTION" means an Option for which Notice of Exercise
may be given only on the Option's Expiration Date up to and including the
Expiration Time, unless otherwise agreed.

         "EVENT OF DEFAULT" means the occurrence of any of the following with
respect to a Party (the "Defaulting Party", the other Party being the
"Non-Defaulting Party"):

         (i) the Defaulting Party shall (A) default in any payment when due
under the Agreement (including, but not limited to, a Premium payment) to the
Non-Defaulting Party with respect to any Currency Obligation or Option and such
failure shall continue for two (2) Business Days after the Non-Defaulting Party
has given the Defaulting Party written notice of non-payment, or (B) fail to
perform or comply with any other obligation assumed by it under the Agreement
and such failure is continuing thirty (30) days after the Non-Defaulting Party
has given the Defaulting Party written notice thereof;

         (ii) the Defaulting Party shall commence a voluntary Insolvency
Proceeding or shall take any corporate action to authorize any such Insolvency
Proceeding;

         (iii) a governmental authority or self-regulatory organization having
jurisdiction over either the Defaulting Party or its assets in the country of
its organization or principal office (A) shall commence an Insolvency Proceeding
with respect to the Defaulting Party or its assets or (B) shall take any action
under any bankruptcy, insolvency or other similar law or any banking, insurance
or similar law or regulation governing the operation of the Defaulting Party
which may prevent the Defaulting Party from performing its obligations under the
Agreement as and when due;

         (iv) an involuntary Insolvency Proceeding shall be commenced with
respect to the Defaulting Party or its assets by a person other than a
governmental authority or self-regulatory organization having jurisdiction over
either the Defaulting Party or its assets in the country of its organization or
principal office and such Insolvency Proceeding (A) results in the appointment
of a Custodian or a judgment of insolvency or bankruptcy or the entry of an
order for winding-up, liquidation, reorganization or other similar relief, or
(B) is not dismissed within five (5) days of its institution or presentation;

         (v) the Defaulting Party is bankrupt or insolvent, as defined under any
bankruptcy or insolvency law applicable to it;

         (vi) the Defaulting Party fails, or shall otherwise be unable, to pay
its debts as they become due;

         (vii) the Defaulting Party or any Custodian acting on behalf of the
Defaulting Party shall disaffirm, disclaim or repudiate any Currency Obligation
or Option;

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         (viii) any representation or warranty made or given or deemed made or
given by the Defaulting Party pursuant to the Agreement or any Credit Support
Document shall prove to have been false or misleading in any material respect as
at the time it was made or given or deemed made or given and one (1) Business
Day has elapsed after the Non-Defaulting Party has given the Defaulting Party
written notice thereof;

         (ix) the Defaulting Party consolidates or amalgamates with or merges
into or transfers all or substantially all its assets to another entity and (A)
the creditworthiness of the resulting, surviving or transferee entity is
materially weaker than that of the Defaulting Party prior to such action, or (B)
at the time of such consolidation, amalgamation, merger or transfer the
resulting, surviving or transferee entity fails to assume all the obligations of
the Defaulting Party under the Agreement by operation of law or pursuant to an
agreement satisfactory to the Non-Defaulting Party;

         (x) by reason of any default, or event of default or other similar
condition or event, any Specified Indebtedness (being Specified Indebtedness of
an amount which, when expressed in the Currency of the Threshold Amount, is in
aggregate equal to or in excess of the Threshold Amount) of the Defaulting Party
or any Credit Support Provider in relation to it: (A) is not paid on the due
date therefor and remains unpaid after any applicable grace period has elapsed,
or (B) becomes, or becomes capable at any time of being declared, due and
payable under agreements or instruments evidencing such Specified Indebtedness
before it would otherwise have been due and payable;

         (xi) the Defaulting Party is in breach of or default under any
Specified Transaction and any applicable grace period has elapsed, and there
occurs any liquidation or early termination of, or acceleration of obligations
under, that Specified Transaction or the Defaulting Party (or any Custodian on
its behalf) disaffirms, disclaims or repudiates the whole or any part of a
Specified Transaction;

         (xii) (A) any Credit Support Provider of the Defaulting Party or the
Defaulting Party itself fails to comply with or perform any agreement or
obligation to be complied with or performed by it in accordance with the
applicable Credit Support Document and such failure is continuing after any
applicable grace period has elapsed; (B) any Credit Support Document relating to
the Defaulting Party expires or ceases to be in full force and effect prior to
the satisfaction of all obligations of the Defaulting Party under the Agreement,
unless otherwise agreed in writing by the Non-Defaulting Party; (C) the
Defaulting Party or any Credit Support Provider of the Defaulting Party (or, in
either case, any Custodian acting on its behalf) disaffirms, disclaims or
repudiates, in whole or in part, or challenges the validity of, any Credit
Support Document; (D) any representation or warranty made or given or deemed
made or given by any Credit Support Provider of the Defaulting Party pursuant to
any Credit Support Document shall prove to have been false or misleading in any
material respect as at the time it was made or given or deemed made or given and
one (1) Business Day has elapsed after the Non-Defaulting Party has given the
Defaulting Party written notice thereof; or (E) any event set out in (ii) to
(vii) or (ix) to (xi) above occurs in respect of any Credit Support Provider of
the Defaulting Party; or

         (xiii) any other condition or event specified in Part IX of the
Schedule or in Section 11.14 if made applicable to the Agreement in Part XI of
the Schedule.

         "EXERCISE DATE", in respect of any Option, means the day on which a
Notice of Exercise received by the applicable Designated Office of the Seller
becomes effective pursuant to Section 5.1.

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         "EXPIRATION DATE", in respect of any Option, means the date agreed to
as such at the time the Option is entered into, as evidenced in a Confirmation.

         "EXPIRATION TIME", in respect of any Option, means the latest time on
the Expiration Date on which the Seller must accept a Notice of Exercise as
agreed to at the time the Option is entered into, as evidenced in a
Confirmation.

         "FX TRANSACTION" means any transaction between the Parties for the
purchase by one Party of an agreed amount in one Currency against the sale by it
to the other of an agreed amount in another Currency, both such amounts either
being deliverable on the same Value Date or, if the Parties have so agreed in
Part VI of the Schedule, being cash-settled in a single Currency, which is or
shall become subject to the Agreement and in respect of which transaction the
Parties have agreed (whether orally, electronically or in writing): the
Currencies involved, the amounts of such Currencies to be purchased and sold,
which Party will purchase which Currency and the Value Date.

         "IN-THE-MONEY AMOUNT" means (i) in the case of a Call, the excess of
the Spot Price over the Strike Price, multiplied by the aggregate amount of the
Call Currency to be purchased under the Call, where both prices are quoted in
terms of the amount of the Put Currency to be paid for one unit of the Call
Currency; and (ii) in the case of a Put, the excess of the Strike Price over the
Spot Price, multiplied by the aggregate amount of the Put Currency to be sold
under the Put, where both prices are quoted in terms of the amount of the Call
Currency to be paid for one unit of the Put Currency.

         "INSOLVENCY PROCEEDING" means a case or proceeding seeking a judgment
of or arrangement for insolvency, bankruptcy, composition, rehabilitation,
reorganization, administration, winding-up, liquidation or other similar relief
with respect to the Defaulting Party or its debts or assets, or seeking the
appointment of a trustee, receiver, liquidator, conservator, administrator,
custodian or other similar official (each, a "Custodian") of the Defaulting
Party or any substantial part of its assets, under any bankruptcy, insolvency or
other similar law or any banking, insurance or similar law governing the
operation of the Defaulting Party.

         "LIBOR", with respect to any Currency and date, means the average rate
at which deposits in the Currency for the relevant amount and time period are
offered by major banks in the London interbank market as of 11:00 a.m. (London
time) on such date, or, if major banks do not offer deposits in such Currency in
the London interbank market on such date, the average rate at which deposits in
the Currency for the relevant amount and time period are offered by major banks
in the relevant foreign exchange market at such time on such date as may be
determined by the Party making the determination.

         "LOCAL BANKING DAY" means (i) for any Currency, a day on which
commercial banks effect deliveries of that Currency in accordance with the
market practice of the relevant foreign exchange market, and (ii) for any Party,
a day in the location of the applicable Designated Office of such Party on which
commercial banks in that location are not authorized or required by law to
close.

         "MASTER AGREEMENT" means the terms and conditions set forth in this
Master Agreement, including the Schedule.

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         "MATCHED PAIR NOVATION NETTING OFFICE(S)", in respect of a Party, means
the Designated Office(s) specified in Part V of the Schedule.

         "NON-DEFAULTING PARTY" has the meaning given to it in the definition of
Event of Default.

         "NOTICE OF EXERCISE" means telex, telephonic or other electronic
notification (excluding facsimile transmission) providing assurance of receipt,
given by the Buyer prior to or at the Expiration Time, of the exercise of an
Option, which notification shall be irrevocable.

         "NOVATION NETTING OFFICE(S)", in respect of a Party, means the
Designated Office(s) specified in Part V of the Schedule.

         "OPTION" means a currency option which is or shall become subject to
the Agreement.

         "PARTIES" means the parties to the Agreement, including their
successors and permitted assigns (but without prejudice to the application of
clause (ix) of the definition of Event of Default); and the term "Party" shall
mean whichever of the Parties is appropriate in the context in which such
expression may be used.

         "PREMIUM", in respect of any Option, means the purchase price of the
Option as agreed upon by the Parties, and payable by the Buyer to the Seller
thereof.

         "PREMIUM PAYMENT DATE", in respect of any Option, means the date on
which the Premium is due and payable, as agreed to at the time the Option is
entered into, as evidenced in a Confirmation.

         "PROCEEDINGS" means any suit, action or other proceedings relating to
the Agreement, any FX Transaction or any Option.

         "PUT" means an Option entitling, but not obligating (except upon
exercise), the Buyer to sell to the Seller at the Strike Price a specified
quantity of the Put Currency.

         "PUT CURRENCY" means the Currency agreed to as such at the time an
Option is entered into, as evidenced in a Confirmation.

         "SCHEDULE" means the Schedule attached to and part of this Master
Agreement, as it may be amended from time to time by agreement of the Parties.

         "SELLER" means the Party granting an Option.

         "SETTLEMENT DATE" means, in respect of: (i) an American Style Option,
the Spot Date of the Currency Pair on the Exercise Date of such Option, and (ii)
a European Style Option, the Spot Date of the Currency Pair on the Expiration
Date of such Option; and, where market practice in the relevant foreign exchange
market in relation to the two Currencies involved provides for delivery of one
Currency on one date which is a Local Banking Day in relation to that Currency
but not to the other Currency and for delivery of the other Currency on the next
Local Banking Day in relation to that other Currency, "Settlement Date" means
such two (2) Local Banking Days.

         "SETTLEMENT NETTING OFFICE(S)", in respect of a Party, means the
Designated Office(s) specified in Part V of the Schedule.

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         "SPECIFIED INDEBTEDNESS" means any obligation (whether present or
future, contingent or otherwise, as principal or surety or otherwise) in respect
of borrowed money, other than in respect of deposits received.

         "SPECIFIED TRANSACTION" means any transaction (including an agreement
with respect thereto) between one Party to the Agreement (or any Credit Support
Provider of such Party) and the other Party to the Agreement (or any Credit
Support Provider of such Party) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity
linked swap, equity or equity index option, bond option, interest rate option,
foreign exchange transaction, cap transaction, floor transaction, collar
transaction, currency swap transaction, cross-currency rate swap transaction,
currency option or any other similar transaction (including any option with
respect to any of these transactions) or any combination of any of the
foregoing.

         "SPOT DATE" means the spot delivery day for the relevant Currency Pair
as generally used by the relevant foreign exchange market.

         "SPOT PRICE" means the rate of exchange at the time at which such price
is to be determined for foreign exchange transactions in the relevant Currency
Pair for value on the Spot Date, as determined in good faith: (i) by the Seller,
for purposes of Section 5, and (ii) by the Non-Defaulting Party, for purposes of
Section 8.

         "STRIKE PRICE", in respect of any Option, means the price at which the
Currency Pair may be exchanged, as agreed to at the time the Option is entered
into, as evidenced in a Confirmation.

         "THRESHOLD AMOUNT" means the amount specified as such for each Party in
Part VIII of the Schedule.

         "VALUE DATE" means, with respect to any FX Transaction, the Business
Day (or where market practice in the relevant foreign exchange market in
relation to the two Currencies involved provides for delivery of one Currency on
one date which is a Local Banking Day in relation to that Currency but not to
the other Currency and for delivery of the other Currency on the next Local
Banking Day in relation to that other Currency ("Split Settlement") the two (2)
Local Banking Days in accordance with that market practice) agreed by the
Parties for delivery of the Currencies to be purchased and sold pursuant to such
FX Transaction, and, with respect to any Currency Obligation, the Business Day
(or, in the case of Split Settlement, Local Banking Day) upon which the
obligation to deliver Currency pursuant to such Currency Obligation is to be
performed.

SECTION 2. FX TRANSACTIONS AND OPTIONS

         2.1 SCOPE OF THE AGREEMENT. The Parties (through their respective
Designated Offices) may enter into (i) FX Transactions, for such quantities of
such Currencies, as may be agreed subject to the terms of the Agreement, and
(ii) Options, for such Premiums, with such Expiration Dates, at such Strike
Prices and for the purchase or sale of such quantities of such Currencies, as
may be agreed subject to the terms of the Agreement; PROVIDED that neither Party
shall be required to enter into any FX Transaction or Option with the other
Party (other than in connection with an exercised Option). Unless otherwise
agreed in writing by the Parties, each FX Transaction and Option entered into
between Designated Offices of the Parties on or after the Effective Date shall
be governed by the Agreement. Each FX Transaction and Option between any two

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Designated Offices of the Parties outstanding on the Effective Date which is
identified in Part I of the Schedule shall also be governed by the Agreement.

         2.2 SINGLE AGREEMENT. This Master Agreement, the terms agreed between
the Parties with respect to each FX Transaction and Option (and, to the extent
recorded in a Confirmation, each such Confirmation), and all amendments to any
of such items shall together form the agreement between the Parties (the
"Agreement") and shall together constitute a single agreement between the
Parties. The Parties acknowledge that all FX Transactions and Options are
entered into in reliance upon such fact, it being understood that the Parties
would not otherwise enter into any FX Transaction or Option.

         2.3 CONFIRMATIONS. FX Transactions and Options shall be promptly
confirmed by the Parties by Confirmations exchanged by mail, telex, facsimile or
other electronic means from which it is possible to produce a hard copy. The
failure by a Party to issue a Confirmation shall not prejudice or invalidate the
terms of any FX Transaction or Option.

         2.4 INCONSISTENCIES. In the event of any inconsistency between the
provisions of the Schedule and the other provisions of the Agreement, the
Schedule will prevail. In the event of any inconsistency between the terms of a
Confirmation and the other provisions of the Agreement, (i) in the case of an FX
Transaction, the other provisions of the Agreement shall prevail, and the
Confirmation shall not modify the other terms of the Agreement and (ii) in the
case of an Option, the terms of the Confirmation shall prevail, and the other
terms of the Agreement shall be deemed modified with respect to such Option,
except for the manner of confirmation under Section 2.3 and, if applicable,
discharge of Options under Section 4.

SECTION 3. OPTION PREMIUM

         3.1 PAYMENT OF PREMIUM. Unless otherwise agreed in writing by the
Parties, the Buyer shall be obligated to pay the Premium related to an Option no
later than its Premium Payment Date.

         3.2 LATE PAYMENT OR NON-PAYMENT OF PREMIUM. If any Premium is not
received on or before the Premium Payment Date, the Seller may elect: (i) to
accept a late payment of such Premium; (ii) to give written notice of such
non-payment and, if such payment shall not be received within two (2) Business
Days of such notice, treat the related Option as void; or (iii) to give written
notice of such non-payment and, if such payment shall not be received within two
(2) Business Days of such notice, treat such non-payment as an Event of Default
under clause (i) of the definition of Event of Default. If the Seller elects to
act under either clause (i) or (ii) of the preceding sentence, the Buyer shall
pay all out-of-pocket costs and actual damages incurred in connection with such
unpaid or late Premium or void Option, including, without limitation, interest
on such Premium from and including the Premium Payment Date to but excluding the
late payment date in the same Currency as such Premium at overnight LIBOR and
any other losses, costs or expenses incurred by the Seller in connection with
such terminated Option, for the loss of its bargain, its cost of funding, or the
loss incurred as a result of terminating, liquidating, obtaining or
re-establishing a delta hedge or related trading position with respect to such
Option.

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SECTION 4.     DISCHARGE AND TERMINATION OF OPTIONS; NETTING OF OPTION PREMIUMS

         4.1 DISCHARGE AND TERMINATION. If agreed in Part V of the Schedule, any
Call or any Put written by a Party will automatically be discharged and
terminated, in whole or in part, as applicable, against a Call or a Put,
respectively, written by the other Party, such discharge and termination to
occur automatically upon the payment in full of the last Premium payable in
respect of such Options; PROVIDED that such discharge and termination may only
occur in respect of Options:

         (i) each being with respect to the same Put Currency and the same Call
Currency;

         (ii) each having the same Expiration Date and Expiration Time;

         (iii) each being of the same style, i.e. either both being American
Style Options or both being European Style Options;

         (iv) each having the same Strike Price;

         (v) each being transacted by the same pair of Designated Offices of
Buyer and Seller; and

         (vi) neither of which shall have been exercised by delivery of a Notice
of Exercise;

and, upon the occurrence of such discharge and termination, neither Party shall
have any further obligation to the other Party in respect of the relevant
Options or, as the case may be, parts thereof so discharged and terminated. Such
discharge and termination shall be effective notwithstanding that either Party
may fail to record such discharge and termination in its books. In the case of a
partial discharge and termination (i.e., where the relevant Options are for
different amounts of the Currency Pair), the remaining portion of the Option
which is partially discharged and terminated shall continue to be an Option for
all purposes of the Agreement, including this Section 4.1.

         4.2 NETTING OF OPTION PREMIUMS. If agreed in Part V of the Schedule and
if, on any date, Premiums would otherwise be payable under the Agreement in the
same Currency between the same respective Designated Offices of the Parties,
then, on such date, each Party's obligation to make payment of any such Premium
will be automatically satisfied and discharged and, if the aggregate Premium(s)
that would otherwise have been payable by such Designated Office of one Party
exceeds the aggregate Premium(s) that would otherwise have been payable by such
Designated Office of the other Party, replaced by an obligation upon the Party
by whom the larger aggregate Premium(s) would have been payable to pay the other
Party the excess of the larger aggregate Premium(s) over the smaller aggregate
Premium(s) and, if the aggregate Premiums are equal, no payment shall be made.

SECTION 5. EXERCISE AND SETTLEMENT OF OPTIONS

         5.1 EXERCISE OF OPTIONS. The Buyer may exercise an Option by delivery
to the Seller of a Notice of Exercise. Subject to Section 5.3, if a Notice of
Exercise with respect to an Option has not been received by the Seller prior to
or at the Expiration Time, the Option shall expire and become void and of no
effect. Any Notice of Exercise shall (unless otherwise agreed):

         (i) in respect of an American Style Option, (A) if received at or prior
to 3:00 p.m. on a Business Day, be effective upon receipt thereof by the Seller,
and (B) if received after 3:00 p.m. on a Business Day, be effective only as of
the opening of business of the Seller on the first Business Day subsequent to
its receipt; and

         (ii) in respect of a European Style Option, if received on or, if the
parties have so agreed, before the Expiration Date, prior to or at the
Expiration Time, be effective upon receipt thereof by the Seller.

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         5.2 NO PARTIAL EXERCISE. Unless otherwise agreed by the Parties, an
Option may be exercised only in whole.

         5.3 AUTOMATIC EXERCISE. Unless otherwise agreed in Part VI of the
Schedule or unless the Seller is otherwise instructed by the Buyer, if an Option
has an In-the-Money Amount at its Expiration Time that equals or exceeds the
product of (x) 1% of the Strike Price (or such other percentage or amount as may
have been agreed by the Parties) and (y) the amount of the Call Currency or Put
Currency, as appropriate, then the Option shall be deemed automatically
exercised. In such case, the Seller may elect to settle such Option either in
accordance with Section 5.4 or by payment to the Buyer on the Settlement Date
for such Option of the In-the-Money Amount, as determined at the Expiration Time
or as soon thereafter as practicable. In the latter case, the sole obligations
of the Parties with respect to settlement of such Option shall be to deliver or
receive the In-the-Money Amount of such Option on the Settlement Date. The
Seller shall notify the Buyer of its election of the method of settlement of an
automatically exercised Option as soon as practicable after the Expiration Time.

         5.4 SETTLEMENT OF EXERCISED OPTIONS. An exercised Option shall settle
on its Settlement Date. Subject to Section 5.3 and 5.5, on the Settlement Date,
the Buyer shall pay the Put Currency to the Seller for value on the Settlement
Date and the Seller shall pay the Call Currency to the Buyer for value on the
Settlement Date. An exercised Option shall be treated as an FX Transaction and a
Currency Obligation (except, for the purposes of Section 8.1 only, if it is to
be settled at its In-the-Money Amount), and for this purpose the relevant
Settlement Date shall be treated as the Value Date of the FX Transaction.

         5.5 SETTLEMENT AT IN-THE-MONEY AMOUNT. An Option shall be settled at
its In-the-Money Amount if so agreed by the Parties at the time such Option is
entered into. In such case, the In-the-Money Amount shall be determined based
upon the Spot Price at the time of exercise or as soon thereafter as
practicable. The sole obligations of the Parties with respect to settlement of
such Option shall be to deliver or receive the In-the-Money Amount of such
Option on the Settlement Date.

SECTION 6. SETTLEMENT AND NETTING OF FX TRANSACTIONS

         6.1 SETTLEMENT OF FX TRANSACTIONS. Subject to Sections 6.2 and 6.3,
each Party shall deliver to the other Party the amount of the Currency to be
delivered by it under each Currency Obligation on the Value Date for such
Currency Obligation.

         6.2 SETTLEMENT NETTING. If, on any date, more than one delivery of a
particular Currency under Currency Obligations is to be made between a pair of
Settlement Netting Offices, then each Party shall aggregate the amounts of such
Currency deliverable by it and only the difference between these aggregate
amounts shall be delivered by the Party owing the larger aggregate amount to the
other Party, and, if the aggregate amounts are equal, no delivery of the
Currency shall be made.

         6.3 NOVATION NETTING. (a) BY CURRENCY. If the Parties enter into an FX
Transaction through a pair of Novation Netting Offices giving rise to a Currency
Obligation for the same Value Date and in the same Currency as a then existing
Currency Obligation between the same pair of Novation Netting Offices, then
immediately upon entering into such FX Transaction, each such Currency
Obligation shall automatically and without further action be individually
canceled and simultaneously replaced by a new

                                       10
<PAGE>

Currency Obligation for such Value Date determined as follows: the amounts of
such Currency that would otherwise have been deliverable by each Party on such
Value Date shall be aggregated and the Party with the larger aggregate amount
shall have a new Currency Obligation to deliver to the other Party the amount of
such Currency by which its aggregate amount exceeds the other Party's aggregate
amount, PROVIDED that if the aggregate amounts are equal, no new Currency
Obligation shall arise. This Section 6.3 shall not affect any other Currency
Obligation of a Party to deliver any different Currency on the same Value Date.

         (b) BY MATCHED PAIR. If the Parties enter into an FX Transaction
between a pair of Matched Pair Novation Netting Offices then the provisions of
Section 6.3(a) shall apply only in respect of Currency Obligations arising by
virtue of FX Transactions entered into between such pair of Matched Pair
Novation Netting Offices and involving the same pair of Currencies and the same
Value Date.

         6.4 GENERAL (a) INAPPLICABILITY OF SECTIONS 6.2 AND 6.3. The provisions
of Sections 6.2 and 6.3 shall not apply if a Close-Out Date has occurred or a
voluntary or involuntary Insolvency Proceeding or action of the kind described
in clause (ii), (iii) or (iv) of the definition of Event of Default has occurred
without being dismissed in relation to either Party.

         (b) FAILURE TO RECORD. The provisions of Section 6.3 shall apply
notwithstanding that either Party may fail to record the new Currency Obligation
in its books.

         (c) CUT-OFF DATE AND TIME. The provisions of Section 6.3 are subject to
any cut-off date and cut-off time agreed between the applicable Novation Netting
Offices and Matched Pair Novation Netting Offices of the Parties.

SECTION 7. REPRESENTATIONS, WARRANTIES AND COVENANTS

         7.1 REPRESENTATIONS AND WARRANTIES. Each Party represents and warrants
to the other Party as of the Effective Date and as of the date of each FX
Transaction and each Option that: (i) it has authority to enter into the
Agreement (including such FX Transaction or Option, as the case may be); (ii)
the persons entering into the Agreement (including such FX Transaction or
Option, as the case may be) on its behalf have been duly authorized to do so;
(iii) the Agreement (including such FX Transaction or Option, as the case may
be) is binding upon it and enforceable against it in accordance with its terms
(subject to applicable bankruptcy, reorganization, insolvency, moratorium or
similar laws affecting creditors' rights generally and applicable principles of
equity) and does not and will not violate the terms of any agreements to which
such Party is bound; (iv) no Event of Default, or event which, with notice or
lapse of time or both, would constitute an Event of Default, has occurred and is
continuing with respect to it; (v) it acts as principal in entering into each FX
Transaction and Option and exercising each and every Option; and (vi) if the
Parties have so specified in Part XV of the Schedule, it makes the
representations and warranties set forth in such Part XV.

         7.2 COVENANTS. Each Party covenants to the other Party that: (i) it
will at all times obtain and comply with the terms of and do all that is
necessary to maintain in full force and effect all authorizations, approvals,
licenses and consents required to enable it lawfully to perform its obligations
under the Agreement; (ii) it will promptly notify the other Party of the
occurrence of any Event of Default with respect to itself or any Credit Support
Provider in relation to it; and (iii) if the Parties have set forth additional
covenants in Part XVI of the Schedule, it makes the covenants set forth in such
Part XVI.

                                       11
<PAGE>

SECTION 8. CLOSE-OUT AND LIQUIDATION

         8.1 MANNER OF CLOSE-OUT AND LIQUIDATION. (a) CLOSE-OUT. If an Event of
Default has occurred and is continuing, then the Non-Defaulting Party shall have
the right to close out all, but not less than all, outstanding Currency
Obligations (including any Currency Obligation which has not been performed and
in respect of which the Value Date is on or precedes the Close-Out Date) and
Options, except to the extent that in the good faith opinion of the
Non-Defaulting Party certain of such Currency Obligations or Options may not be
closed out under applicable law. Such close-out shall be effective upon receipt
by the Defaulting Party of notice that the Non-Defaulting Party is terminating
such Currency Obligations and Options. Notwithstanding the foregoing, unless
otherwise agreed by the Parties in Part X of the Schedule, in the case of an
Event of Default in clause (ii), (iii) or (iv) of the definition thereof with
respect to a Party and, if agreed by the Parties in Part IX of the Schedule, in
the case of any other Event of Default specified and so agreed in Part IX with
respect to a Party, close-out shall be automatic as to all outstanding Currency
Obligations and Options, as of the time immediately preceding the institution of
the relevant Insolvency Proceeding or action. The Non-Defaulting Party shall
have the right to liquidate such closed-out Currency Obligations and Options as
provided below.

         (b) LIQUIDATION OF CURRENCY OBLIGATIONS. Liquidation of Currency
Obligations terminated by close-out shall be effected as follows:

         (i) CALCULATING CLOSING GAIN OR LOSS. The Non-Defaulting Party shall
calculate in good faith, with respect to each such terminated Currency
Obligation, except to the extent that in the good faith opinion of the
Non-Defaulting Party certain of such Currency Obligations may not be liquidated
as provided herein under applicable law, as of the Close-Out Date or as soon
thereafter as reasonably practicable, the Closing Gain, or, as appropriate, the
Closing Loss, as follows:

               (A) for each Currency Obligation calculate a "Close-Out Amount"
as follows:

                    (1) in the case of a Currency Obligation whose Value Date is
the same as or is later than the Close-Out Date, the amount of such Currency
Obligation; or

                    (2) in the case of a Currency Obligation whose Value Date
precedes the Close-Out Date, the amount of such Currency Obligation increased,
to the extent permitted by applicable law, by adding interest thereto from and
including the Value Date to but excluding the Close-Out Date at overnight LIBOR;
and

                    (3) for each such amount in a Currency other than the
Non-Defaulting Party's Base Currency, convert such amount into the
Non-Defaulting Party's Base Currency at the rate of exchange at which, at the
time of the calculation, the Non-Defaulting Party can buy such Base Currency
with or against the Currency of the relevant Currency Obligation for delivery
(x) if the Value Date of such Currency Obligation is on or after the Spot Date
as of such time of calculation for the Base Currency, on the Value Date of that
Currency Obligation or (y) if such Value Date precedes such Spot Date, for
delivery on such Spot Date (or, in either case, if such rate of exchange is not
available, conversion shall be accomplished by the Non-Defaulting Party using
any commercially reasonable method); and

                                       12
<PAGE>

               (B) determine in relation to each Value Date: (1) the sum of all
Close-Out Amounts relating to Currency Obligations under which the
Non-Defaulting Party would otherwise have been entitled to receive the relevant
amount on that Value Date; and (2) the sum of all Close-Out Amounts relating to
Currency Obligations under which the Non-Defaulting Party would otherwise have
been obliged to deliver the relevant amount to the Defaulting Party on that
Value Date; and

               (C) if the sum determined under (B)(1) is greater than the sum
determined under (B)(2), the difference shall be the Closing Gain for such Value
Date; if the sum determined under (B)(1) is less than the sum determined under
(B)(2), the difference shall be the Closing Loss for such Value Date.

         (ii) DETERMINING PRESENT VALUE. To the extent permitted by applicable
law, the Non-Defaulting Party shall adjust the Closing Gain or Closing Loss for
each Value Date falling after the Close-Out Date to present value by discounting
the Closing Gain or Closing Loss from and including the Value Date to but
excluding the Close-Out Date, at LIBOR with respect to the Non-Defaulting
Party's Base Currency as at the Close-Out Date or at such other rate as may be
prescribed by applicable law.

         (iii) NETTING. The Non-Defaulting Party shall aggregate the following
amounts so that all such amounts are netted into a single liquidated amount
payable to or by the Non-Defaulting Party: (x) the sum of the Closing Gains for
all Value Dates (discounted to present value, where appropriate, in accordance
with the provisions of Section 8.1(b)(ii)) (which for the purposes of the
aggregation shall be a positive figure); and (y) the sum of the Closing Losses
for all Value Dates (discounted to present value, where appropriate, in
accordance with the provisions of Section 8.1(b)(ii)) (which for the purposes of
the aggregation shall be a negative figure).

         (c) LIQUIDATION OF OPTIONS. To liquidate unexercised Options and
exercised Options to be settled at their In-the-Money Amounts that have been
terminated by close-out, the Non-Defaulting Party shall:

         (i) CALCULATING SETTLEMENT AMOUNT. Calculate in good faith with respect
to each such terminated Option, except to the extent that in the good faith
opinion of the Non-Defaulting Party certain of such Options may not be
liquidated as provided herein under applicable law, as of the Close-Out Date or
as soon as reasonably practicable thereafter a settlement amount for each Party
equal to the aggregate of:

               (A) with respect to each Option purchased by such Party, and
which the other Party has not elected to treat as void pursuant to Section
3.2(ii) for lack of payment of the Premium, the current market premium for such
Option;

               (B) with respect to each Option sold by such Party and which such
Party has not elected to treat as void pursuant to Section 3.2(ii) for lack of
payment of the Premium, any unpaid Premium, PROVIDED that, if the Close-Out Date
occurs before the Premium Payment Date, such amount shall be discounted from and
including the Premium Payment Date to but excluding the Close-Out Date at a rate
equal to LIBOR on the Close-Out Date and, if the Close-Out Date occurs after the
Premium Payment Date, to the extent permitted by applicable law, the settlement
amount shall include interest on any unpaid Premium from and including the
Premium Payment Date to but excluding the Close-Out Date in the same Currency as
such Premium at overnight LIBOR;

                                       13
<PAGE>

               (C) with respect to any exercised Option to be settled at its
In-the-Money Amount (whether or not the Close-Out Date occurs before the
Settlement Date for such Option), any unpaid amount due to such Party in
settlement of such Option and, if the Close-Out Date occurs after the Settlement
Date for such Option, to the extent permitted by applicable law, interest
thereon from and including the applicable Settlement Date to but excluding the
Close-Out Date at overnight LIBOR; and

               (D) without duplication, the amount that the Non-Defaulting Party
reasonably determines in good faith, as of the Close-Out Date or as of the
earliest date thereafter that is reasonably practicable, to be its additional
losses, costs and expenses in connection with such terminated Option, for the
loss of its bargain, its cost of funding, or the loss incurred as a result of
terminating, liquidating, obtaining or re-establishing a delta hedge or related
trading position with respect to such Option;

         (ii) CONVERTING TO BASE CURRENCY. Convert any settlement amount
calculated in accordance with clause (i) above in a Currency other than the
Non-Defaulting Party's Base Currency into such Base Currency at the Spot Price
at which, at the time of the calculation, the Non-Defaulting Party could enter
into a contract in the foreign exchange market to buy the Non-Defaulting Party's
Base Currency in exchange for such Currency (or, if such Spot Price is not
available, conversion shall be accomplished by the Non-Defaulting Party using
any commercially reasonable method); and

         (iii) NETTING. Net such settlement amounts with respect to each Party
so that all such amounts are netted to a single liquidated amount payable by one
Party to the other Party.

         (d) FINAL NETTING. The Non-Defaulting Party shall net (or, if both are
payable by one Party, add) the liquidated amounts payable under Sections 8.1(b)
and 8.1(c) with respect to each Party so that such amounts are netted (or added)
to a single liquidated amount payable by one Party to the other Party as a
settlement payment.

         8.2 SET-OFF AGAINST CREDIT SUPPORT. Where close-out and liquidation
occurs in accordance with Section 8.1, the Non-Defaulting Party shall also be
entitled (i) to set off the net payment calculated in accordance with Section
8.1(d) which the Non-Defaulting Party owes to the Defaulting Party, if any,
against any credit support or other collateral ("Credit Support") held by the
Defaulting Party pursuant to a Credit Support Document or otherwise (including
the liquidated value of any non-cash Credit Support) in respect of the
Non-Defaulting Party's obligations under the Agreement or (ii) to set off the
net payment calculated in accordance with Section 8.1(d) which the Defaulting
Party owes to the Non-Defaulting Party, if any, against any Credit Support held
by the Non-Defaulting Party (including the liquidated value of any non-cash
Credit Support) in respect of the Defaulting Party's obligations under the
Agreement; PROVIDED that, for purposes of either such set-off, any Credit
Support denominated in a Currency other than the Non-Defaulting Party's Base
Currency shall be converted into such Base Currency at the rate specified in
Section 8.1(c)(ii).

         8.3 OTHER FOREIGN EXCHANGE TRANSACTIONS AND CURRENCY OPTIONS. Where
close-out and liquidation occurs in accordance with Section 8.1, the
Non-Defaulting Party shall also be entitled to close-out and liquidate, to the
extent permitted by applicable law, any other foreign exchange transaction or
currency option entered into between the Parties which is then outstanding in
accordance with the provisions of Section 8.1, with each obligation of a Party
to deliver a Currency under such a foreign exchange transaction being treated as
if it were a Currency Obligation (including exercised options, provided that
cash-settled options shall be treated analogously to Options to be settled at
their In-the-Money Amount) and each unexercised option being treated as if it
were an Option under the Agreement.

                                       14
<PAGE>

         8.4 PAYMENT AND LATE INTEREST. The net amount payable by one Party to
the other Party pursuant to the provisions of Sections 8.1 and 8.3 above shall
be paid by the close of business on the Business Day following the receipt by
the Defaulting Party of notice of the Non-Defaulting Party's settlement
calculation, with interest at overnight LIBOR from and including the Close-Out
Date to but excluding such Business Day (and converted as required by applicable
law into any other Currency, any costs of conversion to be borne by, and
deducted from any payment to, the Defaulting Party). To the extent permitted by
applicable law, any amounts owed but not paid when due under this Section 8
shall bear interest at overnight LIBOR (or, if conversion is required by
applicable law into some other Currency, either overnight LIBOR with respect to
such other Currency or such other rate as may be prescribed by such applicable
law) for each day for which such amount remains unpaid. Any addition of interest
or discounting required under this Section 8 shall be calculated on the basis of
a year of such number of days as is customary for transactions involving the
relevant Currency in the relevant foreign exchange market.

         8.5 SUSPENSION OF OBLIGATIONS. Without prejudice to the foregoing, so
long as a Party shall be in default in payment or performance to the other Party
under the Agreement and the other Party has not exercised its rights under this
Section 8, or, if "Adequate Assurances" is specified as applying to the
Agreement in Part XI of the Schedule, during the pendency of a reasonable
request to a Party for adequate assurances of its ability to perform its
obligations under the Agreement, the other Party may, at its election and
without penalty, suspend its obligation to perform under the Agreement.

         8.6 EXPENSES. The Defaulting Party shall reimburse the Non-Defaulting
Party in respect of all out-of-pocket expenses incurred by the Non-Defaulting
Party (including fees and disbursements of counsel, including attorneys who may
be employees of the Non-Defaulting Party) in connection with any reasonable
collection or other enforcement proceedings related to the payments required
under the Agreement.

         8.7 REASONABLE PRE-ESTIMATE. The Parties agree that the amounts
recoverable under this Section 8 are a reasonable pre-estimate of loss and not a
penalty. Such amounts are payable for the loss of bargain and the loss of
protection against future risks and, except as otherwise provided in the
Agreement, neither Party will be entitled to recover any additional damages as a
consequence of such losses.

         8.8 NO LIMITATION OF OTHER RIGHTS; SET-OFF. The Non-Defaulting Party's
rights under this Section 8 shall be in addition to, and not in limitation or
exclusion of, any other rights which the Non-Defaulting Party may have (whether
by agreement, operation of law or otherwise), and, to the extent not prohibited
by law, the Non-Defaulting Party shall have a general right of set-off with
respect to all amounts owed by each Party to the other Party, whether due and
payable or not due and payable (provided that any amount not due and payable at
the time of such set-off shall, if appropriate, be discounted to present value
in a commercially reasonable manner by the Non-Defaulting Party). The
Non-Defaulting Party's rights under this Section 8.8 are subject to Section 8.7.

SECTION 9. FORCE MAJEURE, ACT OF STATE, ILLEGALITY AND IMPOSSIBILITY

         9.1 FORCE MAJEURE, ACT OF STATE, ILLEGALITY AND IMPOSSIBILITY. If
either Party is prevented from or hindered or delayed by reason of force majeure
or act of state in the delivery or receipt of any Currency in respect of a
Currency Obligation or Option or if it becomes or, in the good faith judgment of
one of the Parties, may become unlawful or impossible for either Party to make
or receive any payment in respect of

                                       15
<PAGE>

a Currency Obligation or Option, then the Party for whom such performance has
been prevented, hindered or delayed or has become illegal or impossible shall
promptly give notice thereof to the other Party and either Party may, by notice
to the other Party, require the close-out and liquidation of each affected
Currency Obligation and Option in accordance with the provisions of Section 8.1
and, for such purposes, the Party unaffected by such force majeure, act of
state, illegality or impossibility (or, if both Parties are so affected,
whichever Party gave the relevant notice) shall perform the calculation required
under Section 8.1 as if it were the Non-Defaulting Party. Nothing in this
Section 9.1 shall be taken as indicating that the Party treated as the
Defaulting Party for the purpose of calculations required by Section 8.1 has
committed any breach or default.

         9.2 TRANSFER TO AVOID FORCE MAJEURE, ACT OF STATE, ILLEGALITY OR
IMPOSSIBILITY. If Section 9.1 becomes applicable, unless prohibited by law, the
Party which has been prevented, hindered or delayed from performing shall, as a
condition to its right to designate a close-out and liquidation of any affected
Currency Obligation or Option, use all reasonable efforts (which will not
require such Party to incur a loss, excluding immaterial, incidental expenses)
to transfer as soon as practicable, and in any event before the earlier to occur
of the expiration date of the affected Options or twenty (20) days after it
gives notice under Section 9.1, all its rights and obligations under the
Agreement in respect of the affected Currency Obligations and Options to another
of its Designated Offices so that such force majeure, act of state, illegality
or impossibility ceases to exist. Any such transfer will be subject to the prior
written consent of the other Party, which consent will not be withheld if such
other Party's policies in effect at such time would permit it to enter into
transactions with the transferee Designated Office on the terms proposed, unless
such transfer would cause the other Party to incur a material tax or other cost.

SECTION 10. PARTIES TO RELY ON THEIR OWN EXPERTISE

         Each Party will be deemed to represent to the other Party on the date
on which it enters into an FX Transaction or Option that (absent a written
agreement between the Parties that expressly imposes affirmative obligations to
the contrary for that FX Transaction or Option): (i)(A) it is acting for its own
account, and it has made its own independent decisions to enter into that FX
Transaction or Option and as to whether that FX Transaction or Option is
appropriate or proper for it based upon its own judgment and upon advice from
such advisors as it has deemed necessary; (B) it is not relying on any
communication (written or oral) of the other Party as investment advice or as a
recommendation to enter into that FX Transaction or Option, it being understood
that information and explanations related to the terms and conditions of an FX
Transaction or Option shall not be considered investment advice or a
recommendation to enter into that FX Transaction or Option; and (C) it has not
received from the other Party any assurance or guarantee as to the expected
results of that FX Transaction or Option; (ii) it is capable of evaluating and
understanding (on its own behalf or through independent professional advice),
and understands and accepts, the terms, conditions and risks of that FX
Transaction or Option; and (iii) the other Party is not acting as a fiduciary or
an advisor for it in respect of that FX Transaction or Option.

SECTION 11. MISCELLANEOUS

         11.1 CURRENCY INDEMNITY. The receipt or recovery by either Party (the
"first Party") of any amount in respect of an obligation of the other Party (the
"second Party") in a Currency other than that in

                                       16
<PAGE>

which such amount was due, whether pursuant to a judgment of any court or
pursuant to Section 8 or 9, shall discharge such obligation only to the extent
that, on the first day on which the first Party is open for business immediately
following such receipt or recovery, the first Party shall be able, in accordance
with normal banking practice, to purchase the Currency in which such amount was
due with the Currency received or recovered. If the amount so purchasable shall
be less than the original amount of the Currency in which such amount was due,
the second Party shall, as a separate obligation and notwithstanding any
judgment of any court, indemnify the first Party against any loss sustained by
it. The second Party shall in any event indemnify the first Party against any
costs incurred by it in making any such purchase of Currency.

         11.2 ASSIGNMENT. Neither Party may assign, transfer or charge or
purport to assign, transfer or charge its rights or obligations under the
Agreement to a third party without the prior written consent of the other Party
and any purported assignment, transfer or charge in violation of this Section
11.2 shall be void.

         11.3 TELEPHONIC RECORDING. The Parties agree that each may
electronically record all telephonic conversations between them and that any
such recordings may be submitted in evidence to any court or in any Proceedings
for the purpose of establishing any matters pertinent to the Agreement.

         11.4 NOTICES. Unless otherwise agreed, all notices, instructions and
other communications to be given to a Party under the Agreement shall be given
to the address, telex (if confirmed by the appropriate answerback), facsimile
(confirmed if requested) or telephone number and to the individual or department
specified by such Party in Part III of the Schedule. Unless otherwise specified,
any notice, instruction or other communication given in accordance with this
Section 11.4 shall be effective upon receipt.

         11.5 TERMINATION. Each of the Parties may terminate the Agreement at
any time by seven (7) days' prior written notice to the other Party delivered as
prescribed in Section 11.4, and termination shall be effective at the end of
such seventh day; PROVIDED, HOWEVER, that any such termination shall not affect
any outstanding Currency Obligations or Options, and the provisions of the
Agreement shall continue to apply until all the obligations of each Party to the
other under the Agreement have been fully performed.

         11.6 SEVERABILITY. In the event any one or more of the provisions
contained in the Agreement should be held invalid, illegal or unenforceable in
any respect under the law of any jurisdiction, the validity, legality and
enforceability of the remaining provisions contained in the Agreement under the
law of such jurisdiction, and the validity, legality and enforceability of such
and any other provisions under the law of any other jurisdiction shall not in
any way be affected or impaired thereby. The Parties shall endeavor in good
faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

         11.7 NO WAIVER. No indulgence or concession granted by a Party and no
omission or delay on the part of a Party in exercising any right, power or
privilege under the Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.

         11.8 MASTER AGREEMENT. Where one of the Parties to the Agreement is
domiciled inthe United States, the Parties intend that the Agreement shall be a
master agreement, as referred to in 11 U.S.C. Section 101(53B)(C) and 12 U.S.C.
Section 1821(e)(8)(D)(vii).

                                       17
<PAGE>

         11.9 TIME OF ESSENCE, ETC. Time shall be of the essence in the
Agreement. Unless otherwise agreed, the times referred to in the Agreement with
respect to Options shall in each case refer to the local time of the relevant
Designated Office of the Seller of the relevant Option.

         11.10 HEADINGS. Headings in the Agreement are for ease of reference
only.

         11.11 PAYMENTS GENERALLY. All payments to be made under the Agreement
shall be made in same day (or immediately available) and freely transferable
funds and, unless otherwise specified, shall be delivered to such office of such
bank, and in favor of such account as shall be specified by the Party entitled
to receive such payment in Part IV of the Schedule or in a notice given in
accordance with Section 11.4.

         11.12 AMENDMENTS. No amendment, modification or waiver of the Agreement
will be effective unless in writing executed by each of the Parties; PROVIDED
that the Parties may agree in a Confirmation that complies with Section 2.3 to
amend the Agreement solely with respect to the Option that is the subject of the
Confirmation.

         11.13 CREDIT SUPPORT. A Credit Support Document between the Parties may
apply to obligations governed by the Agreement. If the Parties have executed a
Credit Support Document, such Credit Support Document shall be subject to the
terms of the Agreement and is hereby incorporated by reference in the Agreement.
In the event of any conflict between a Credit Support Document and the
Agreement, the Agreement shall prevail, except for any provision in such Credit
Support Document in respect of governing law.

         11.14 ADEQUATE ASSURANCES. If the Parties have so agreed in Part XI of
the Schedule, the failure by a Party to give adequate assurances of its ability
to perform any of its obligations under the Agreement within two (2) Business
Days of a written request to do so when the other Party has reasonable grounds
for insecurity shall be an Event of Default under the Agreement.

         11.15 CORRECTION OF CONFIRMATIONS. Unless either Party objects to the
terms contained in any Confirmation sent by the other Party or sends a corrected
Confirmation within three (3) Business Days of receipt of such Confirmation, or
such shorter time as may be appropriate given the Value Date of an FX
Transaction, the terms of such Confirmation shall be deemed correct and accepted
absent manifest error. If the Party receiving a Confirmation sends a corrected
Confirmation within such three (3) Business Days, or shorter period, as
appropriate, then the Party receiving such corrected Confirmation shall have
three (3) Business Days, or shorter period, as appropriate, after receipt
thereof to object to the terms contained in such corrected Confirmation.

SECTION 12. LAW AND JURISDICTION

         12.1 GOVERNING LAW. The Agreement shall be governed by, and construed
in accordance with, the laws of the jurisdiction set forth in Part XII of the
Schedule without giving effect to conflict of laws principles.

         12.2 CONSENT TO JURISDICTION. (a) With respect to any Proceedings, each
Party irrevocably (i) submits to the non-exclusive jurisdiction of the courts of
the jurisdiction set forth in Part XIII of the Schedule and (ii) waives any
objection which it may have at any time to the laying of venue of any

                                       18
<PAGE>

Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have
jurisdiction over such Party. Nothing in the Agreement precludes either Party
from bringing Proceedings in any other jurisdiction nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

         (b) Each Party irrevocably appoints the agent for service of process
(if any) specified with respect to it in Part XIV of the Schedule. If for any
reason any Party's process agent is unable to act as such, such Party will
promptly notify the other Party and within thirty (30) days will appoint a
substitute process agent acceptable to the other Party.

         12.3 WAIVER OF JURY TRIAL. Each Party irrevocably waives any and all
right to trial by jury in any Proceedings.

         12.4 WAIVER OF IMMUNITIES. Each Party irrevocably waives, to the
fullest extent permitted by applicable law, with respect to itself and its
revenues and assets (irrespective of their use or intended use), all immunity on
the grounds of sovereignty or other similar grounds from (i) suit, (ii)
jurisdiction of any court, (iii) relief by way of injunction, order for specific
performance or for recovery of property, (iv) attachment of its assets (whether
before or after judgment) and (v) execution or enforcement of any judgment to
which it or its revenues or assets might otherwise be entitled in any
Proceedings in the courts of any jurisdiction and irrevocably agrees, to the
extent permitted by applicable law, that it will not claim any such immunity in
any Proceedings.

                                            MORGAN STANLEY & CO. INCORPORATED

                                            By /S/ ZOE CRUZ
                                               ---------------------------------
                                            Name: Zoe Cruz
                                            Title: Managing Director

                                            MORGAN STANLEY DEAN WITTER
                                            SPECTRUM SELECT L.P.

                                            By:  DEMETER MANAGEMENT CORPORATION

                                                   /S/ ROBERT E. MURRAY
                                            ------------------------------------
                                            Name:  Robert E. Murray
                                            Title:  President and Chairman

                                       19

<PAGE>

                                    SCHEDULE

   Schedule to the International Foreign Exchange and Options Master Agreement
                  dated as of APRIL 30, 2000 (the "Agreement")
              between MORGAN STANLEY & CO. INCORPORATED ("Party A")
                                       and
                 MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.
                                  ("Party B").

Part I.    SCOPE OF THE AGREEMENT

           The Agreement shall apply to all FX Transactions outstanding between
any two Designated Offices of the Parties on the Effective Date.

           The Agreement shall apply to all Currency Options outstanding between
any two Designated Offices of the Parties on the Effective Date.

Part II.   DESIGNATED OFFICES

           Each of the following shall be a Designated Office:

           Party A: New York

           Party A is not a multibranch party.

           Party B:  New York

           Party B is not a multibranch party.

           Each Party (the "first Party") that enters into an FX Transaction or
Option through an agency, branch, or office other than its head or home office
represents to the other Party (the "second Party") that, notwithstanding the
place of booking office or jurisdiction of incorporation or organization of the
first Party, the obligations of the first Party are the same as if it had
entered into the FX Transaction or Option through its head or home office. This
representation will be deemed to be repeated by the first Party on each date on
which it enters into an FX Transaction or Option.

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Part III.  NOTICES

           If sent to Party A:

           Address:                 Morgan Stanley & Co. Incorporated
                                    1585 Broadway, 4th floor
                                    New York, New York 10036
           Telephone Number:        (212) 761-2700
           Telex Number:            6801048 (Answerback:   FXMS)
           Facsimile Number:        (212) 761-0296
           SWIFT Number:            MSNYUS33

           Name of Individual or Department to whom Notices are to be sent:
           Foreign Exchange Trading Department

           If sent to Party B:

           Address:   PARTY B C/O
                      Morgan Stanley Dean Witter & Co.
                      2 World Trade Center
                      62nd Floor
                      New York, NY 10048
           Telephone Number: 212-392-3270
           Telex Number:
           Facsimile Number: 212-392-1306
           SWIFT Number:

           Name of Individual or Department to whom Notices are to be sent:
           Managed Futures

Part IV.   PAYMENT INSTRUCTIONS

           [X] Name of Bank and Office, Account Number and Reference with
respect to relevant Currencies:

           In the case of Party A, U.S. dollar payments shall be made to the
following account:

                 Bank of New York, New York
                 ABA#: 021000018
                 For: Morgan Stanley & Co., New York
                 Acct. #: 8900010932
                 Ref: Chips UID 23-65-84

           In the case of Party B, U.S. dollar payments shall be made to the
following account:

                 Citibank N.A.
                 ABA#: 021-000089
                 For: Dean Witter Reynolds Inc.
                 Acct.#: 40611164

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<PAGE>

           For Further Credit to Managed Futures Fund Margin Transfer
779-000999-4

           |X| With respect to each Party, as may be set forth in such Standard
Settlement Instructions as may be specified by such Party in a notice given in
accordance with Section 11.4.

Part V.    NETTING

A.         DISCHARGE OF OPTIONS

           Section 4.1 shall apply to Options other than Barrier Options.

B.         NETTING OF PREMIUMS

           Section 4.2 shall apply to Premium payments for Options other than
Barrier Options.

C.         SETTLEMENT NETTING OFFICES

           Each of the following shall be a Settlement Netting Office:

           Party A:  Same as Part II.

           Party B:  Same as Part II

           Party A and Party B agree that, notwithstanding Section 6.2 of the
Agreement, obligations to make payments pursuant to FX Transactions shall only
be netted, satisfied and discharged against obligations to make payments arising
out of the same or other FX Transactions between a pair of Settlement Netting
Offices and obligations to make payments pursuant to Options (including
exercised Options) shall only be netted, satisfied and discharged against
obligations to make payments arising out of the same or other Options (including
exercised Options) between a pair of Settlement Netting Offices.

D.         NOVATION NETTING OFFICES

           Each of the following shall be a Novation Netting Office:

           Party A: Same as Part II

           Party B: Same as Part II

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E.         MATCHED PAIR NOVATION NETTING OFFICES

           Each of the following shall be a Matched Pair Novation Netting
           Office:

           Not applicable.

Part VI.   AUTOMATIC EXERCISE OF OPTIONS; CASH SETTLEMENT OF FX TRANSACTIONS

A.         AUTOMATIC EXERCISE OF OPTIONS

           Automatic Exercise of certain In-the-money Options pursuant to
Section 5.3 shall apply to Party A as Buyer.

           Automatic Exercise of certain In-the-money Options pursuant to
Section 5.3 shall apply to Party B as Buyer.

B.         CASH SETTLEMENT OF FX TRANSACTIONS

           The following provision shall apply:

           The definition of FX Transaction in Section 1 shall include foreign
exchange transactions for the purchase and sale of one Currency against another
but which shall be settled by the delivery of only one Currency based on the
difference between exchange rates as agreed by the Parties as evidenced in a
Confirmation. Section 6.1 is modified so that only one Currency shall be
delivered for any such FX Transaction in accordance with the formula agreed by
the Parties. Section 8.1(b)(i)(A) is modified so that the Close-Out Amount for
any such FX Transaction for which the cash settlement amount has been fixed on
or before the Close-Out Date pursuant to the terms of such FX Transaction shall
be equal to the Currency Obligation arising therefrom (increased by adding
interest in the manner provided in clause (A)(2) if the Value Date precedes the
Close-Out Date) and for any such FX Transaction for which the cash settlement
amount has not yet been fixed on the Close-Out Date pursuant to the terms of
such FX Transaction, the Close-Out Amount shall be as reasonably determined by
Party A in accordance with market practice.

Part VII.  BASE CURRENCY

           Party A's Base Currency is U.S. Dollars.

           Party B's Base Currency is U.S. Dollars.

Part VIII. THRESHOLD AMOUNT

           For purposes of clause (x) of the definition of Event of Default:

           Party A's Threshold Amount is U.S.D. $10,000,000.

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           Party B's Threshold Amount is U.S.D. $10,000,000.

Part IX.   ADDITIONAL EVENTS OF DEFAULT

           Clause (x) of the definition of Event of Default shall be modified by
deleting the words ", or becomes capable at any time of being declared," after
the words "and remains unpaid after any applicable grace period has elapsed, or
(B) becomes".

           The following provisions which are checked shall constitute Events of
Default:

           [X] (a) occurrence of garnishment or provisional garnishment against
a claim against the Defaulting Party acquired by the Non-Defaulting Party. The
automatic termination provision of Section 8.1 shall not apply to either Party
that is a Defaulting Party in respect of this Event of Default.

           [X] (b) suspension of payment by the Defaulting Party or any Credit
Support Provider in accordance with the Bankruptcy Law or the Corporate
Reorganization Law in Japan. The automatic termination provision of Section 8.1
shall not apply to either Party that is a Defaulting Party in respect of this
Event of Default.

           [X] (c) disqualification of the Defaulting Party or any Credit
Support Provider by any relevant bill clearing house located in Japan. The
automatic termination provision of Section 8.1 shall not apply to either Party
that is a Defaulting Party in respect of this Event of Default.

Part X.    AUTOMATIC TERMINATION

           The Automatic Termination provision of Section 8.1 shall not apply to
Party A as Defaulting Party in respect of clause (ii), (iii) or (iv) of the
definition of Event of Default.

           The Automatic Termination provision of Section 8.1 shall not apply to
Party B as Defaulting Party in respect of clause (ii), (iii) or (iv) of the
definition of Event of Default.

Part XI.   ADEQUATE ASSURANCES

           Adequate Assurances under Section 11.14 shall not apply to the
Agreement.

Part XII.  GOVERNING LAW

           In accordance with Section 12.1 of the Agreement, the Agreement shall
be governed by the laws of:

           |X|     the State of New York.

           |_|  England and Wales.

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<PAGE>

           |_|  Japan.

Part XIII. CONSENT TO JURISDICTION

           In accordance with Section 12.2 of the Agreement, each Party
irrevocably submits to the non-exclusive jurisdiction of:

           |X| the courts of the State of New York and the United States
District Court located in the Borough of Manhattan in New York City.

           |_|  the courts of England.

           |_|  the Tokyo District Court.

Part XIV.  AGENT FOR SERVICE OF PROCESS

           Party A appoints the following as its agent for service of process in
any Proceedings in the State of New York: Not applicable.

           Party B appoints the following as its agent for service of process in
any Proceedings in the State of New York: Not applicable.

Part XV.   CERTAIN REGULATORY REPRESENTATIONS

A.         The following FDICIA representation shall apply:

           1. Party A represents and warrants that it qualifies as a "financial
institution" within the meaning of the Federal Deposit Insurance Corporation
Improvement Act of 1991 ("FDICIA") by virtue of being a:

               |X|  broker or dealer within the meaning of FDICIA;

               |_|  depository institution within the meaning of FDICIA;

               |X|  futures commission merchant within the meaning of FDICIA;

               |_| "financial institution" within the meaning of Regulation EE
(see below).

         2. Party B hereby represents and warrants that it qualifies as a
"financial institution" by virtue of being a:

               |_|  broker or dealer within the meaning of FDICIA;

               |_|  depository institution within the meaning of FDICIA;

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<PAGE>

               |_|  futures commission merchant within the meaning of FDICIA;

               |_| "financial institution" within the meaning of Regulation EE
(see below).

         3. A Party representing that it is a "financial institution" as that
term is defined in 12 C.F.R. Section 231.3 of Regulation EE issued by the Board
of Governors of the Federal Reserve System ("Regulation EE") represents that:

               (a) it is willing to enter into "financial contracts" as a
counterparty "on both sides of one or more financial markets" as those terms are
used in Section 231.3 of Regulation EE; and

               (b) during the 15-month period immediately preceding the date it
makes or is deemed to make this representation, it has had on at least one (1)
day during such period, with counterparties that are not its affiliates (as
defined in Section 231.2(b) of Regulation EE) either:

                    (i) one or more financial contracts of a total gross
notional principal amount of $1 billion outstanding; or

                    (ii) total gross mark-to-market positions (aggregated across
counterparties) of $100 million; and

               (c) agrees that it will notify the other Party if it no longer
meets the requirements for status as a financial institution under Regulation
EE.

         4. If both Parties are financial institutions in accordance with the
above, the Parties agree that the Agreement shall be a netting contract, as
defined in 12 U.S.C. Section 4402(14), and each receipt or payment or delivery
obligation under the Agreement shall be a covered contractual payment
entitlement or covered contractual payment obligation, respectively, as defined
in FDICIA.

B.       The following ERISA representation shall apply:

         Each Party represents and warrants that it is not (i) a plan subject to
the fiduciary responsibility part of the Employee Retirement Income Security Act
of 1974, as amended, or subject to Section 4975 of the Internal Revenue Code of
1986, as amended; (ii) a person acting on behalf of any such plan; or (iii) a
person the assets of whom constitute assets of any such plan.

C.       The following CFTC trade option representation shall not apply:

         Each Party represents and warrants that it is a commercial user of or a
merchant handling the Currencies subject to each Option and was offered or
entered into each Option solely for purposes related to its business as such.

D.       The following CFTC eligible swap participant representation shall
         apply:

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<PAGE>

         Each Party represents and warrants that it is an "eligible swap
participant" under, and as defined in, 17 C.F.R. Section 35.1.

                                       8
<PAGE>

Part XVI.  REPRESENTATIONS AND WARRANTIES

         In addition to the representations and warranties set forth in Section
7.1 and Part XV of this Schedule, each Party hereby represents and warrants to
the other Party on the date hereof and on the date of each FX Transaction or
Option, as the case may be, that: (a) it is a sophisticated investor able to
evaluate and assume the risks associated with transactions in currencies as
contemplated by the Agreement; (b) it is not relying upon any representations
(whether written or oral) of the other Party other than the representations
expressly set forth in the Agreement, this Schedule, any Credit Support Document
or in any Confirmation; (c) its execution and delivery of the Agreement, and its
performance of its obligations hereunder, do not and will not conflict with any
law or regulation of the jurisdiction of its organization or other law or
regulation applicable to it, and do not and will not violate, constitute a
default under, or result in the creation or imposition of any lien or
encumbrance on any of its property or assets under any agreement or instrument
to which it is a party or by which its assets are bound; (d) no consent,
authorization or approval (including exchange control approval) or other action
by, and no notice to or filing with, any person or entity, including any
governmental authority or regulatory body, other than any already obtained, made
or filed and remaining in full force and effect, and the conditions of which
have been duly complied with, is required in connection with the performance of
its obligations under the Agreement; and (e) there are no actions, proceedings
or claims pending or, to the best of its knowledge, threatened, the adverse
determination of which might have a materially adverse effect on its ability to
perform its obligations under, or affect the validity or enforceability of, the
Agreement.

Part XVII. AGREEMENT SUPERSEDING

         A new Section 11.16 shall be added to the Agreement which shall read as
follows: "The Agreement shall supersede any other agreement between the Parties
with respect to the subject matter hereof."

Part XVIII. BARRIER OPTIONS

         In connection with any Barrier Options between the Parties, Party B
acknowledges that:

         a) As part of its business, Party A regularly trades in the foreign
exchange spot, forward, futures and options markets for its own account and for
the accounts of other customers. Such trading may affect spot prices in the
Currency Pair.

         b) Party A generally hedges its Barrier Option positions by buying or
selling a quantity of the relevant currency, and may adjust (increase or
decrease) its hedge as market conditions change during the life of the Options
and it believes that it is more or less likely that a Barrier will be breached.
Such hedging and de-hedging activity may affect spot prices and may thus affect
the probability of a Barrier being breached.

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<PAGE>

Part XIX.      1998 FX AND CURRENCY OPTION DEFINITIONS.

         The 1998 FX and Currency Option Definitions as published by ISDA, EMTA
and the Foreign Exchange Committee (the "Definitions") shall be applicable to
each FX Transaction and Option under the Agreement, including any FX Transaction
or Option outstanding on the date hereof, subject to the following:

A.      DEFINITIONS:

         1.       The term "Agreement" in Section 2.2 of the Agreement shall
                  include the Agreement as modified and supplemented by this
                  Part.

         2.       The term "FX Transaction" and "Currency Option Transaction" in
                  the Definitions or in a Confirmation shall in all cases by
                  considered references to an "FX Transaction" and "Option"
                  under the Agreement.

         3.       All terms in this Part shall have the meanings given them
                  above or in the Definitions, unless not defined above or in
                  the Definitions, in which case the term shall have the meaning
                  given in the Agreement.

B.      SCOPE.

         1.       Notwithstanding the absence of any reference to the
                  Definitions in a Confirmation, this Part and the Definitions
                  shall be applicable to any FX Transaction or Currency Option
                  Transaction covered by the Agreement; provided that the
                  Parties may agree otherwise for any Transaction as evidenced
                  by a Confirmation that complies with Section 2.3 of the
                  Agreement.

         2.       In the event of any inconsistency between the Definitions and
                  a Confirmation, the terms of the Confirmation shall govern for
                  the purpose of the relevant Transaction. In the event of any
                  inconsistency between the Definitions and the Agreement, the
                  Definitions shall prevail.

C.       CONFIRMATIONS.

         Notwithstanding Sections 2.4 and 11.12 of the Agreement, in the event
of any inconsistency between the terms of a Confirmation for an FX Transaction
or Currency Option Transaction and the Agreement, the terms of the Confirmation
shall prevail.

D.       DISRUPTION EVENTS.

         With respect to any Disruption Event that is applicable to an FX
Transaction or Currency Option Transaction pursuant to the Definitions or as
otherwise agreed by the Parties as evidenced by a Confirmation, Section 9 of the
Agreement shall not be applicable in respect of such FX Transaction or Currency
Option Transaction, and the Parties shall be subject to the Disruption

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Fallbacks (including but not limited to No Fault Termination) specified as
applicable pursuant to the Definitions or such Confirmation.

E.       MISCELLANEOUS.

         The provisions of Part VI.B of this Schedule relating to cash
settlement of FX Transactions shall apply to Non-Deliverable FX Transactions.

Part XX.   MARGIN AND SECURITY

         (a) Party B shall at all times maintain with Dean Witter Reynolds Inc.
(the "Custodian") for and on behalf of Party A cash and securities acceptable to
Party A (together, the "Margin") in order to secure the obligations of Party B
under all open FX Transactions and Options entered into under the Agreement. The
amount of Margin which Party B shall maintain with Party A shall be determined
by Party A in its reasonable judgment (which determination shall be conclusive
in the absence of manifest error), on a risk adjusted basis, taking into account
historical volatility, imputed volatility and/or such other factors as Party A
reasonably deems relevant to this determination (the "Aggregate Margin
Requirement"). On or prior to the date of the Agreement, Party B shall have
established a special pledge account with the Custodian (the "Account") for the
purpose of holding custody of the Margin for and on behalf of Party A in
accordance with the provisions of the Custodian Account Addendum, dated the date
hereof, and the Agreement. Party B's failure to deposit Margin or to establish
the Account as required herein shall be an Event of Default for all purposes
under the Agreement (it being understood that there shall be no grace period
with respect to obligations of Party B pursuant to this Part XX).

         (b) Whenever such Aggregate Margin Requirement shall exceed the market
value of Margin on deposit with the Custodian in the Account as determined by
Party A at such time in its reasonable judgment and which determination shall be
conclusive in the absence of manifest error (the "Margin Balance", and the
difference between such Aggregate Margin Requirement and the Margin Balance
being the "Shortfall"), then Party B shall deposit immediately upon Party A's
request, additional Margin in an amount at least equal to such Shortfall.

         (c) In furtherance of the foregoing, as security for the prompt and
complete payment when due and the performance by Party B of all of its
obligations to Party A under the Agreement, Party B hereby grants to Party A a
continuing first priority security interest in and to all of Party B's right,
title and interest in and to the Margin, the Account, all financial assets,
investment property and other property and assets which are deposited from time
to time in, or credited from time to time to, the Account, all security
entitlements in respect thereof, all income and profits thereon, all interest,
dividends and other payments and distributions with respect thereto, and all
proceeds of any of the foregoing (the "Margin Collateral"). As additional
security for the prompt and complete payment when due and the performance by
Party B of all of its obligations to Party A under the Agreement, Party B hereby
grants to Party A and its affiliates a first priority security interest in and
to any property of Party B at any time held by or for the benefit of Party A or
any affiliate of Party A for any purpose, including, without limitation, any
property of Party B held in any account with Party A, any affiliate of Party A
or with the Custodian, any financial

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assets, investment property and other property and assets which are deposited
from time to time in, or credited from time to time to, any such account, all
security entitlements in respect thereof, all income and profits thereon, all
interest, dividends and other payments and distributions with respect thereto,
and all proceeds of any of the foregoing (the "Collateral"), to secure all
obligations of Party B to Party A. If Collateral was delivered in connection
with a particular agreement between Party B and Party A or any of its
affiliates, then such Collateral shall secure first the obligations of Party B
with respect to such agreement and second all other obligations of Party B to
Party A or any of its affiliates (in such order as Party A shall determine in
its sole discretion). Party A, its affiliates and the Custodian and Party B
hereby each acknowledge and agree that (a) each of Party A and its affiliates
which holds Collateral holds such Collateral for itself and also as agent and
bailee for all other of Party A and its affiliates which are secured parties
hereunder or under any agreement between Party B and Party A or any of its
affiliates and (b) the Custodian which holds Collateral for and on behalf of
Party A holds such Collateral as agent and bailee for Party A and its affiliates
which are secured parties hereunder and under any agreement between Party B and
Party A or any of its affiliates. If an Event of Default hereunder shall occur,
then each of Party A and its affiliates shall be entitled to retain or sell all
Collateral as security for Party B's obligations, even if otherwise required
pursuant to the terms of an agreement or otherwise to deliver any Collateral to
Party B or Party B's order. The parties agree that Party A and its affiliates
shall have the rights and remedies of a secured creditor under the New York
Uniform Commercial Code (the "UCC") and under any other applicable law or
agreement to exercise any right with respect to the Margin Collateral and the
Collateral subject to the security interest granted under the Agreement.
Notwithstanding Section 9-207 of the UCC, each of Party A or any of its
affiliates shall have free and unrestricted use of any Margin Collateral and/or
Collateral which it holds hereunder or with the Custodian, including, without
limitation, the right, from time to time and without notice to Party B, to sell,
pledge, repledge, hypothecate, rehypothecate, assign, invest, use, commingle or
otherwise dispose of, or otherwise use in its business any Margin Collateral
and/or Collateral separately or in common with other securities, commodities or
other property, for the sum due to any of Party A or any of its affiliates or
for a greater sum on terms which may otherwise impair the right of Party B to
redeem such Margin Collateral and/or Collateral, and free from any other right
of claim of any nature whatsoever of Party B, and without retaining possession
and control for delivery a like amount of similar securities, commodities, or
other property.

         (d) Party B represents and warrants that it owns the Margin Collateral
and the Collateral to be pledged and assigned to each of Party A and its
affiliates hereunder and under any other agreement between Party B and Party A
or any of its affiliates, free and clear of any liens, equities, claims
(including, without limitation, participation interests) and transfer
restrictions. Party B covenants and agrees that it will not sell, assign,
transfer, exchange or otherwise dispose of, or grant any option with respect to,
any of the Margin Collateral or the Collateral, nor will it create, incur or
permit to exist any lien on or with respect to any of the Margin Collateral or
the Collateral, any interest therein, or any proceeds thereof, except for the
security interests created under this Agreement or otherwise under any agreement
between Party B and Party A or any of its affiliates. Any purported sale,
assignment, transfer, exchange, disposition, grant or lien of the Margin
Collateral or the Collateral by Party B that is not permitted under the
foregoing sentence shall be null and void and shall constitute an Event of
Default hereunder and under any agreement between Party B and Party A or any of
its affiliates immediately prior to the taking of any such action, if

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Party A so deems (it being understood that there shall be no grace period with
respect to obligations of Party B pursuant to this Part XX).

         (e) Party B shall, at its sole expense and as Party A in its sole
discretion may deem necessary or advisable from time to time, undertake all such
action as is necessary, (i) to create, preserve, protect and perfect the
security interests granted under the Agreement, (ii) to enable Party A to
exercise and enforce its rights with respect to such security interests, and
(iii) execute and deliver all documents and instruments in such manner and form
as Party A may require, including without limitation UCC financing statements
and continuation statements. Party B hereby appoints Party A as its true and
lawful attorney-in-fact, including without limitation, to sign and file such
documents and instruments on Party B's behalf and without Party B's signature;
such appointment, being coupled with an interest, shall be irrevocable. Without
limitation on the foregoing, Party B agrees to take such action as Party A in
its sole discretion may deem necessary or advisable in the event of any change
in applicable law, including, without limitation, Article 8 of the UCC and the
Regulations of the Department of the Treasury governing transfers of interests
in U.S. marketable treasury securities in book-entry form.

         (f) The parties hereto agree that each of the Account and any account
in which any Collateral is held or to which any Collateral is credited (a
"Collateral Account") is a "securities account" within the meaning of Article 8
of the UCC and that all property and assets (including, without limitation,
cash) held in or credited to (i) the Account or (ii) any Collateral Account
shall be treated as a "financial asset" for purposes of Article 8 of the UCC.

MORGAN STANLEY & CO. INCORPORATED

By       /s/ ZOE CRUZ
   -------------------------------------------
     Name: Zoe Cruz
     Title: Managing Director

MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.

BY: DEMETER MANAGEMENT CORPORATION

      /s/ ROBERT E. MURRAY
--------------------------------------------
     Name: Robert E. Murray
     Title:  President and Chairman

                                       13

<PAGE>

                           CUSTODIAN ACCOUNT ADDENDUM

         This Addendum supplements, forms part of, and is subject in all
respects to, the Foreign Exchange and Options Master Agreement (FEOMA) including
the Schedule thereto (the "Schedule") dated as of April 30, 2000 by and between
Morgan Stanley & Co. Incorporated and Morgan Stanley Dean Witter Spectrum Select
L.P. (collectively, the "Agreement"), and is a part of the Schedule with respect
to each party; PROVIDED, HOWEVER, as used herein, "Pledgor" means Party B and
"Secured Party" means Party A (as defined in the Agreement). Other capitalized
terms used herein, unless otherwise defined, have the meanings specified in the
Agreement. With respect to the rights or obligations of the Secured Party or the
Pledgor, in the event of any inconsistencies between this Addendum and the
Agreement, the Agreement will prevail.

         Having appointed Dean Witter Reynolds Inc. (the "Custodian") to hold
Margin for and on behalf of the Secured Party, the Secured Party, the Pledgor
and the Custodian (solely to the extent of the duties it has agreed to undertake
and perform hereunder) agree as follows:

         1. In all respects, the rights of the Secured Party under the Schedule
with respect to Margin shall not be affected by the appointment of a Custodian
hereunder. The provisions of this Addendum in no way diminish or otherwise
affect the rights of the Secured Party under the Agreement.

         2. The Secured Party, by written notice to the Custodian, may exercise
all powers, and exercise any and all rights and remedies permitted under the
Schedule as though the Secured Party was taking such action directly, and the
Custodian will comply with, and be entitled to rely on, all such instructions
(including, without limitation, entitlement orders) as if such instructions were
provided by the parties jointly.

         3. As used herein, the following terms have the following meaning:

         "Advice from the Secured Party" or "Advice" means a written notice sent
to the Pledgor and/or the Custodian or transmitted by a facsimile sending device
by any of those individuals designated by the Secured Party, except that for any
of the following purposes it shall mean notice by telephone to a person
designated by the Pledgor in writing as authorized to receive such advice or, in
the event that no such person is available, to any officer of the Pledgor and
confirmed promptly in writing thereafter: (i) for initial or additional Margin;
(ii) that the Secured Party has issued a Notice of Exercise with respect to an
Option ; or (iii) that the Pledgor has failed to give notice of intent to make
payment of amounts or deliveries as required under Paragraph 5 of this Addendum.
With respect to any covering purchase transaction, the Advice from the Secured
Party shall mean a Confirmation in use by the Secured Party and sent or
transmitted to the Pledgor and/or the Custodian. When used herein the term
"Advise" means the act of sending an Advice from the Secured Party.

         4. The Custodian shall open an account on its books entitled "Special
Custody Account for Morgan Stanley & Co. Incorporated as Pledgee of Morgan
Stanley Dean Witter Strategic Alternatives, L.L.C (referred to herein as the
"Special Custody Account").

         The parties hereto agree that all property and assets held in or
credited to the Special Custody Account will be treated as financial assets
under Article 8 of the Uniform Commercial Code as in effect in the State of New
York (the "UCC"). The parties hereto further agree that the securities
intermediary's jurisdiction, within the meaning of Section 8-110(e) of the UCC,
in respect of the Special Custody Account and the Margin is the State of New
York and agree that none of them has or will enter into any agreement to the
contrary.

         Anything in this Addendum notwithstanding, the Custodian hereby agrees
to comply with entitlement orders and other instructions of the Secured Party
with respect to the Special Custody Account and any Margin without further
consent of the Pledgor. The Pledgor hereby consents to such agreement.

<PAGE>

         The Custodian represents and warrants that it has not, and agrees that
it will not, agree to comply with entitlement orders concerning the Special
Custody Account or any Margin that are originated by any person other than the
Secured Party.

         The Pledgor agrees to inform the Custodian in writing that cash and
securities specified by the Pledgor as qualifying as Margin and equal in value
to the Aggregate Margin Requirement are to be identified on the Custodian's
books and records as pledged to the Secured Party. The Custodian will hold the
Margin in, and credit the Margin to, the Special Custody Account, separate and
apart from any other property of the Pledgor that may be held by the Custodian,
subject to the interest therein of the Secured Party as the Pledgee thereof in
accordance with the terms of the Agreement. The Custodian continuously
represents that Margin will not be subject to any other lien, charge, security
interest or other right or claim of the Custodian or any person claiming through
the Custodian. The Custodian will confirm in writing to the Secured Party and
the Pledgor all pledges, releases, substitutions or distributions of Margin
permitted under the Agreement, and will inform the Secured Party upon request of
the kind and amount of Margin pledged to the Secured Party.

         5. In the event that (i) the Secured Party advises the Pledgor in an
Advice from the Secured Party that the Secured Party has exercised an Option
sold by the Pledgor AND the Pledgor does not promptly notify the Secured Party
by telephone of the Pledgor's intention to comply with the Notice of Exercise by
making payment or delivery, as the case may be, as required under the terms of
such Option plus payment of applicable commissions or other charges; OR (ii) the
Pledgor, having received such Notice of Exercise, fails to make such payment or
delivery, or cause such payment or delivery to be made, then the Secured Party
will immediately notify the Pledgor in an Advice from the Secured Party of such
failure to give telephone notice or failure to make payment or delivery, as
applicable, and may, after transmittal of an Advice from the Secured Party of
its intention to do so and only if the Pledgor does not promptly make payment or
delivery to the Secured Party, direct the Custodian to take any action necessary
to fully satisfy Pledgor's obligations to the Secured Party, including any of
the Secured Party's rights and remedies under Part XX of the Schedule.

         6. With respect to any losses or liabilities, the Custodian shall be
protected in acting pursuant to any instructions from the Pledgor or Advices
from the Secured Party believed by the Custodian in good faith to be genuine and
authorized. The Pledgor agrees to indemnify the Custodian for, and hold it
harmless against, any loss, liability or expense incurred by the Custodian,
without negligence or bad faith on the part of the Custodian, arising out of
this Addendum.

         7. The Secured Party shall not be liable for any losses, costs,
damages, liabilities or expenses suffered or incurred by the Pledgor as a result
of any actions taken under this Addendum, or any other action taken or not taken
by the Secured Party hereunder for the Pledgor's account at the Pledgor's
direction or otherwise, except to the extent that such loss, cost, damage,
liability or expense is the result of the Secured Party's own recklessness,
willful misconduct or bad faith.

         8. The Pledgor continuously represents and warrants to the Secured
Party that securities included at any time in the Margin shall be in good
deliverable form (or Custodian shall have the unrestricted power to put such
securities into good deliverable form) in accordance with the requirements of
such exchanges as may be the primary market or markets for such securities. Each
of the Pledgor, the Secured Party and the Custodian continuously represents and
warrants that:

a)       it has duly executed and delivered this Addendum, and has all requisite
         power, authority and approvals to enter into and perform its
         obligations hereunder; and

b)       this Addendum is its valid and legally binding obligation, enforceable
         against it in accordance with its terms, subject to the effect of
         bankruptcy, insolvency, reorganization, moratorium and other similar
         laws relating to or affecting creditors' rights generally and to
         general equitable principles.

         The Secured Party and the Pledgor hereby acknowledge that the Custodian
holds securities and cash as custodian for its customers through sub-custodians,
depositaries and deposit-taking banks which maintain omnibus

                                       2
<PAGE>

accounts on behalf of customers of the Custodian. Securities held in the Special
Custody Account may be held at the Depository Trust Company or other book-entry
depository systems in the account of the Custodian, save that Margin denominated
in currencies other than US Dollars may be held by a sub-custodian for the
Custodian other than in book-entry form. U.S. Treasury securities shall be held
in a Treasury/Reserve Automated Debt Entry System ("TRADES") Participant's
securities account of the Custodian or of the Custodian's sub-custodian for the
account of the Custodian at the Federal Reserve Bank.

         9. A monthly statement will be provided by the Custodian to the Secured
Party and the Pledgor listing all Margin held in the Special Custody Account.
The Custodian will also advise the Secured Party upon request, at any time, of
the kind and amount of Margin pledged to the Secured Party. It is agreed that,
notwithstanding any language to the contrary in Custodian's form of
confirmation, the Custodian holds the Margin as agent of the Secured Party as
pledgee hereunder, not as escrow agent. The Custodian makes no representations
as to the existence, perfection or enforceability of any security interest,
charge, lien or other rights of the Pledgor in or to the Margin.

         10. The Pledgor shall pay the Custodian as compensation for its
services pursuant to this Addendum such compensation as may from time to time be
agreed upon in writing between the Pledgor and the Custodian.

         11. No amendment to this Addendum shall be effective unless in writing
and signed by an authorized officer of each of the Secured Party, the Pledgor,
and the Custodian.

         12. This Addendum may be executed in one or more counterparts, all of
which together shall constitute but one and the same instrument.

         13. Any of the parties hereto may terminate the custodial relationship
by notice, given at least 10 business days prior to the date of such intended
termination, in writing to the other parties hereto; provided, however, that
should the Custodian or the Pledgor seek to terminate, then the Pledgor must
designate a replacement Custodian, which the Secured Party has, in the exercise
of its sole discretion, approved. Custodian agrees to remain as the Custodian
until such time as a replacement Custodian has been approved and such
replacement Custodian has agreed to the terms of its service hereunder and under
the Agreement.

                                       3
<PAGE>

Written communications hereunder shall be sent in the manner specified in the
Agreement addressed:

        (a)  If to Custodian, to:
               Dean Witter Reynolds Inc.
               2 World Trade Center
               New York, New York 10048
               Attention:  Robert E. Murray - Managed Futures Department
               Phone: 212-392-7404
               Fax:   212-392-2804

        (b)  If to the Pledgor, to:
               Demeter Management Corporation
               2 World Trade Center
               62nd Floor
               New York, New York 10048
               Attention: Robert E. Murray
               Phone: 212-392-7404
               Fax:   212-392-1306

        (c)  If to the Secured Party, to:
               Morgan Stanley & Co. Incorporated
               1585 Broadway
               4th floor
               New York, New York 10036
               Attention: Foreign Exchange Trading Desk
               Phone: (212) 761-2700
               Fax:      (212) 761-0296

         14. This Addendum will be governed by the laws of the State of New York
applicable to transactions entered into and to be performed wholly within the
State of New York.

                           MORGAN STANLEY DEAN WITTER SPECTRUM SELECT L.P.

                           By: DEMETER MANAGEMENT CORPORATION

                           /s/ ROBERT E. MURRAY
                           --------------------------------------------------
                           Name: Robert E. Murray
                           Title:  President and Chairman

                           MORGAN STANLEY & CO. INCORPORATED

                           /s/ ZOE CRUZ
                           -------------------------------------------
                           Name: Zoe Cruz
                           Title:  Managing Director

                           DEAN WITTER  REYNOLDS  INC.  (FOR PURPOSES OF THIS
                           ADDENDUM)

                           By: /s/ ROBERT E. MURRAY
                              -----------------------------------------------
                           Name: Robert E. Murray
                           Title:  Senior Vice President

                                       4<PAGE>

                                                                   Exhibit 10.16

                                     FORM OF

                              MANAGEMENT AGREEMENT

            THIS AGREEMENT, made as of the 1st day of June, 2001 among MORGAN
STANLEY DEAN WITTER SPECTRUM SELECT L.P., a Delaware limited partnership (the
"Partnership"), DEMETER MANAGEMENT CORPORATION, a Delaware corporation (the
"General Partner"), and NORTHFIELD TRADING L.P., a Delaware corporation (the
"Trading Advisor").

                                   WITNESSETH:

            WHEREAS, the Partnership has been organized pursuant to the Limited
Partnership Agreement dated as of March 21, 1991, as amended and restated as of
August 31, 1993, October 17, 1996, May 31, 1998, and February 28, 2000, (the
"Limited Partnership Agreement"), to trade, buy, sell, spread, or otherwise
acquire, hold, or dispose of commodities (including, but not limited to, foreign
currencies, mortgage-backed securities, money market instruments, financial
instruments, and any other securities or items which are now or may hereafter be
the subject of futures contract trading), domestic and foreign commodity futures
contracts, commodity forward contracts, foreign exchange commitments, options on
physical commodities and on futures contracts, spot (cash) commodities and
currencies, and any rights pertaining thereto (hereinafter referred to
collectively as "futures interests") and securities (such as United States
Treasury bills) approved by the Commodity Futures Trading Commission (the
"CFTC") for investment of customer funds;

            WHEREAS, the Partnership became a member partnership of the Morgan
Stanley Dean Witter Spectrum Series (the "Fund Group") by entering into an
agreement pursuant to which units of limited partnership interest ("Units") of
such member partnerships are sold to investors in a common offering under the
Securities Act of 1933, as amended (the "Securities Act"), pursuant to a
Registration Statement on Form S-1 as it may be amended from time to time (the
"Registration Statement") and a final Prospectus, constituting a part thereof as
it may be amended and supplemented from time to time (the "Prospectus"), and
thereafter, pursuant to which such Units can be exchanged by a limited partner
of a member partnership of the Fund Group for six months for Units of other
member partnerships of the Fund Group at 100% of the respective Net Asset Value
(as defined in Section 7(d)(2) of the Limited Partnership Agreement) thereof;

            WHEREAS, the Trading Advisor has extensive experience trading in
futures interests and is willing to provide certain services and undertake
certain obligations as set forth herein;

            WHEREAS, the Partnership desires the Trading Advisor to act as a
trading advisor for the Partnership and to make investment decisions with
respect to futures interests for its allocated share of the Partnership's Net
Assets (as defined in Section 6(c) hereof) and the Trading Advisor desires so to
act; and

<PAGE>

            WHEREAS, the Partnership, the General Partner and the Trading
Advisor wish to enter into this Management Agreement which, among other things,
sets forth certain terms and conditions upon which the Trading Advisor will
conduct a portion of the Partnership's futures interests trading;

            NOW THEREFORE, the parties hereto hereby agree as follows:

            1.    UNDERTAKINGS IN CONNECTION WITH THE CONTINUING OFFERING OF
                  UNITS.

            (a) The Trading Advisor agrees with respect to the continuing
offering of Units: (i) to make all disclosures regarding itself, its principals
and affiliates, its trading performance, its trading programs, systems, methods,
and strategies (subject to the need, in the reasonable discretion of the Trading
Advisor, to preserve the confidentiality of proprietary information concerning
such programs, systems, methods, and strategies), any client accounts over which
it has discretionary trading authority (other than the names of any such
clients), and otherwise, as the Partnership may reasonably require (x) to be
made in the Partnership's Prospectus required by Section 4.21 of the regulations
of the CFTC, including any amendments or supplements thereto, or (y) to comply
with any applicable federal or state law or rule or regulation, including those
of the Securities and Exchange Commission (the "SEC"), the CFTC, the National
Futures Association (the "NFA"), the National Association of Securities Dealers,
Inc. (the "NASD") or any other regulatory body, exchange, or board; and (ii)
otherwise to cooperate with the Partnership, the General Partner, and Dean
Witter Reynolds Inc., the selling agent for the Partnership ("DWR") by providing
information regarding the Trading Advisor in connection with the preparation and
filing of the Registration Statement and Prospectus, including any amendments or
supplements thereto, with the SEC, CFTC, NFA, NASD, and with appropriate
governmental authorities as part of making application for registration of the
Units under the securities or Blue Sky laws of such jurisdictions as the
Partnership may deem appropriate. As used herein, the term "principal" shall
have the meaning as defined in Section 4.10(e) of the CFTC's Regulations and the
term "affiliate" shall mean an individual or entity that directly or indirectly
controls, is controlled by, or is under common control with, the Trading
Advisor.

            (b) If, while Units continue to be offered and sold, the Trading
Advisor becomes aware of any materially untrue or misleading statement or
omission regarding itself or any of its principals or affiliates in the
Registration Statement or Prospectus, or of the occurrence of any event or
change in circumstances which would result in there being any materially untrue
or misleading statement or omission in the Registration Statement or Prospectus
regarding itself or any of its principals or affiliates, the Trading Advisor
shall promptly notify the General Partner and shall cooperate with it in the
preparation of any necessary amendments or supplements to the Registration
Statement or Prospectus. Neither the Trading Advisor nor any of its principals,
or affiliates, or any stockholders, officers, directors, or employees shall
distribute the Prospectus or selling literature or shall engage in any selling
activities whatsoever in connection with the continuing offering of Units except
as may be specifically requested by the General Partner.

<PAGE>

            2.    DUTIES OF THE TRADING ADVISOR.

            (a) The Trading Advisor hereby agrees to act as a Trading Advisor
for the Partnership and, as such, shall have sole authority and responsibility
for directing the investment and reinvestment of its allocable share of the Net
Assets of the Partnership on the terms and conditions and in accordance with the
prohibitions and trading policies set forth in this Agreement, or the Prospectus
or as otherwise provided in writing and consented to by the Trading Advisor;
PROVIDED, HOWEVER, that the General Partner may override the instructions of the
Trading Advisor to the extent necessary (i) to comply with the trading policies
of the Partnership and with applicable speculative position limits, (ii) to fund
any distributions, redemptions, or reapportionments among other trading advisors
to the Partnership, (iii) to pay the Partnership's expenses, (iv) to the extent
the General Partner believes doing so is necessary for the protection of the
Partnership, (v) to terminate the futures interests trading of the Partnership,
or (vi) to comply with any applicable law or regulation. The General Partner
agrees not to override any such instructions for the reasons specified in
clauses (ii) or (iii) of the preceding sentence unless the Trading Advisor fails
to comply with a request of the General Partner to make the necessary amount of
funds available to the Partnership within five calendar days of such request.
The Trading Advisor shall not be liable for the consequences of any decision by
the General Partner to override instructions of the Trading Advisor, except to
the extent that the Trading Advisor is in breach of this Agreement. In
performing services to the Partnership the Trading Advisor may not materially
alter the trading program(s) used by the Trading Advisor in investing and
reinvesting its allocable share of the Partnership's Net Assets in futures
interests as described in the Prospectus without the prior written consent of
the General Partner, it being understood that changes in the futures interests
or markets traded shall not be deemed an alteration in the Trading Advisor's
trading program(s).

            (b)   The Trading Advisor shall:

                  (i) Exercise good faith and due care in trading futures
      interests for the account of the Partnership in accordance with the
      prohibitions and trading policies of the Partnership described in the
      Prospectus, Exhibit A hereto, and as otherwise provided in writing and
      consented to by the Trading Advisor and the trading programs, systems,
      methods, and strategies of the Trading Advisor described in the
      Prospectus, with such changes and additions to such trading programs,
      systems, methods or strategies as the Trading Advisor, from time to time,
      incorporates into its trading programs for accounts the size of the
      Partnership.

                  (ii) Subject to reasonable assurances of confidentiality by
      the General Partner and the Partnership, provide the General Partner,
      within 30 days of a reasonable request therefor by the General Partner,
      with information comparing the performance of the Partnership's account
      and the performance of all other client accounts directed by the Trading
      Advisor using the trading programs used by the Trading Advisor for the
      Partnership over a specified period of time. In providing such
      information, the Trading Advisor may take such steps as are necessary to
      assure the confidentiality of the Trading Advisor's clients' identities.
      The Trading Advisor shall, upon the General Partner's reasonable request,
      consult with the General Partner concerning any discrepancies between the
      performance of such other accounts and the Partnership's account. The

<PAGE>

      Trading Advisor shall promptly inform the General Partner of any material
      discrepancies of which the Trading Advisor is aware. The General Partner
      acknowledges that different trading programs, strategies or implementation
      methods may be utilized for different accounts, accounts with different
      trading policies, accounts experiencing differing inflows or outflows of
      equity, accounts that commence trading at different times, accounts which
      have different portfolios or different fiscal years and that such
      differences may cause divergent trading results.

                  (iii) Upon the reasonable request of the General Partner and
      subject to reasonable assurances of confidentiality by the General Partner
      and the Partnership, provide the General Partner with all material
      information concerning the Trading Advisor other than proprietary
      information (including, without limitation, information relating to
      changes in control, personnel, trading approach, or financial condition).
      The General Partner acknowledges that all trading instructions made by the
      Trading Advisor will be held in confidence by the General Partner, except
      to the extent necessary to conduct the business of the Partnership or as
      required by law.

                  (iv) Inform the General Partner when the Trading Advisor's
      open positions maintained by the Trading Advisor exceed the Trading
      Advisor's applicable speculative position limits.

            (c) All purchases and sales of futures interests pursuant to this
Agreement shall be for the account, and at the risk, of the Partnership and not
for the account, or at the risk, of the Trading Advisor or any of its
stockholders, directors, officers, or employees, or any other person, if any,
who controls the Trading Advisor within the meaning of the Securities Act. All
brokerage fees arising from trading by the Trading Advisor shall be for the
account of the Partnership. The Trading Advisor makes no representations as to
whether its trading will produce profits or avoid losses.

            (d) Notwithstanding anything in this Agreement to the contrary, the
Trading Advisor shall assume financial responsibility for any errors committed
or caused by it in transmitting orders for the purchase or sale of futures
interests for the Partnership's account, including payment to DWR of the floor
brokerage commissions, exchange and NFA fees, and other transaction charges and
give-up charges incurred by DWR on such trades but only for the amount of DWR's
out-of-pocket costs in respect thereof. The Trading Advisor's errors shall
include, but not be limited to, inputting improper trading signals or
communicating incorrect orders for execution. However, the Trading Advisor shall
not be responsible for errors committed or caused by DWR or by floor brokers or
other futures commission merchants. The Trading Advisor shall have an
affirmative obligation promptly to notify the General Partner of its own errors,
and the Trading Advisor shall use its best efforts to identify and promptly
notify the General Partner of any order or trade which the Trading Advisor
reasonably believes was not executed in accordance with its instructions.

            (e) Prior to the commencement of trading, the General Partner on
behalf of the Partnership shall deliver to the Trading Advisor a trading
authorization appointing the Trading Advisor the Partnership's attorney-in-fact
for such purpose.

<PAGE>

            3.    DESIGNATION OF ADDITIONAL TRADING ADVISORS AND REALLOCATION OF
                  NET ASSETS.

            (a) If the General Partner at any time deems it to be in the best
interests of the Partnership, the General Partner may designate an additional
trading advisor or advisors for the Partnership and may apportion to such
additional trading advisor(s) the management of such amounts of Net Assets as
the General Partner shall determine in its absolute discretion. The designation
of an additional trading advisor or advisors and the apportionment of Net Assets
to any such trading advisor(s) pursuant to this Section 3 shall neither
terminate this Agreement nor modify in any regard the respective rights and
obligations of the Partnership, the General Partner and the Trading Advisor
hereunder. In the event that an additional trading advisor or advisors is so
designated, the Trading Advisor shall thereafter receive management and
incentive fees based, respectively, on that portion of the Net Assets managed by
the Trading Advisor and the Trading Profits attributable to the trading by the
Trading Advisor.

            (b) The General Partner may at any time and from time to time upon
two business days' prior notice reallocate Net Assets allocated to the Trading
Advisor to any other trading advisor or advisors of the Partnership or allocate
additional Net Assets upon two business days' prior notice to the Trading
Advisor from such other trading advisor or advisors; provided that any such
addition to or withdrawal from Net Assets allocated to the Trading Advisor of
the Net Assets will only take place on the last day of a month unless the
General Partner determines that the best interests of the Partnership require
otherwise.

            4.    TRADING ADVISOR INDEPENDENT.

            For all purposes of this Agreement, the Trading Advisor shall be
deemed to be an independent contractor and shall, unless otherwise expressly
provided herein or authorized, have no authority to act for or represent the
Partnership in any way or otherwise be deemed an agent of the Partnership.
Nothing contained herein shall be deemed to require the Partnership to take any
action contrary to the Limited Partnership Agreement, the Certificate of Limited
Partnership of the Partnership as from time to time in effect (the "Certificate
of Limited Partnership"), or any applicable law or rule or regulation of any
regulatory body, exchange, or board. Nothing herein contained shall constitute
the Trading Advisor or any other trading advisor or advisors for the Partnership
as members of any partnership, joint venture, association, syndicate or other
entity, or be deemed to confer on any of them any express, implied, or apparent
authority to incur any obligation or liability on behalf of any other. It is
expressly agreed that the Trading Advisor is neither a promoter, sponsor, or
issuer with respect to the Partnership, nor does the Trading Advisor have any
authority or responsibility with respect to the sale or issuance of Units.

            5.    COMMODITY BROKER.

            The Trading Advisor shall effect all transactions in futures
interests for the Partnership through, and shall maintain a separate account
with, such commodity broker or brokers as the General Partner shall direct. At
the present time, DWR shall act as non-clearing commodity broker and Morgan
Stanley & Co. Incorporated ("MS & Co."), an affiliate of the general partner,
shall act as the clearing commodity broker for the Partnership, with the

<PAGE>

exception of trades on the London Metal Exchange which will be cleared by Morgan
Stanley & Co. International Limited ("MSIL"), also an affiliate of the general
partner. In addition, MS & Co. will act as the counterparty on all of the
foreign currency forward trades for the Partnership. The General Partner shall
provide the Trading Advisor with copies of brokerage statements. Notwithstanding
that MS & Co. and MSIL shall act as the clearing commodity brokers for the
Partnership, the Trading Advisor may execute trades through floor brokers other
than those employed by MS & Co. and MSIL so long as arrangements are made for
such floor brokers to "give-up" or transfer the positions to MS & Co. or MSIL
and provided that the rates charged by such floor brokers have been approved in
writing by DWR. The Trading Advisor will not be responsible for paying give-up
fees.

            6.    FEES.

            (a) For the services to be rendered to the Partnership by the
Trading Advisor under this Agreement, the Partnership shall pay the Trading
Advisor the following fees:

                  (i) A monthly management fee, without regard to the
      profitability of the Trading Advisor's trading for the Partnership's
      account, equal to 1/12 of 3% (a 3% annual rate) of the "Net Assets" of the
      Partnership allocated to the Trading Advisor (as defined in Section 6(c))
      as of the opening of business on the first day of each calendar month.

                  (ii) A monthly incentive fee equal to 15% of the "Trading
      Profits" (as defined in Section 6(d)) as of the end of each calendar
      month, payable on a non-netted basis vis-a-vis other trading advisors(s)
      of the Partnership.

            (b) If this Agreement is terminated on a date other than the last
day of a month, the incentive fee described above shall be determined as if such
date were the end of a month. If this Agreement is terminated on a date other
than the end of a month, the management fee described above shall be prorated
based on the ratio of the number of trading days in the month through the date
of termination to the total number of trading days in the month. If, during any
month after the Partnership commences trading operations (including the month in
which the Partnership commences such operations), the Partnership does not
conduct business operations, or suspends trading for the account of the
Partnership managed by the Trading Advisor, or, as a result of an act or
material failure to act by the Trading Advisor, is otherwise unable to utilize
the trading advice of the Trading Advisor on any of the trading days of that
period for any reason, the management fee described above shall be prorated
based on the ratio of the number of trading days in the month which the
Partnership account managed by the Trading Advisor engaged in trading operations
or utilized the trading advice of the Trading Advisor to the total number of
trading days in the month.

            (c) As used herein, the term "Net Assets" shall have the same
meaning ascribed thereto in Section 7(d)(1) of the Limited Partnership
Agreement.

            (d) As used herein, the term "Trading Profits" shall mean net
futures interests trading profits (realized and unrealized) earned on the
Partnership's Net Assets allocated to the Trading Advisor, decreased by the
Trading Advisor's monthly management fees and a pro rata

<PAGE>

portion of the monthly brokerage fee relating to the Trading Advisor's allocated
Net Assets; with such trading profits and items of decrease determined from the
end of the last calendar month in which an incentive fee was earned by the
Trading Advisor or, if no incentive fee has been earned previously by the
Trading Advisor, from the date that the Partnership commenced trading to the end
of the month as of which such incentive fee calculation is being made. No
incentive fee will be paid on interest income earned by the Partnership.

            (e) If any payment of incentive fees is made to the Trading Advisor
on account of Trading Profits earned by the Partnership on Net Assets allocated
to the Trading Advisor and the Partnership thereafter fails to earn Trading
Profits or experiences losses for any subsequent incentive period with respect
to such amounts so allocated, the Trading Advisor shall be entitled to retain
such amounts of incentive fees previously paid to the Trading Advisor in respect
of such Trading Profits. However, no subsequent incentive fees shall be payable
to the Trading Advisor until the Partnership has again earned Trading Profits on
the Trading Advisor's allocated Net Assets; PROVIDED, HOWEVER, that if the
Trading Advisor's allocated Net Assets are reduced or increased because of
redemptions, additions or reallocations that occur at the end of, or subsequent
to, an incentive period in which the Partnership experiences a futures interests
trading loss with respect to Net Assets allocated to the Trading Advisor, the
trading loss for that incentive period which must be recovered before the
Trading Advisor's allocated Net Assets will be deemed to experience Trading
Profits will be equal to the amount determined by (x) dividing the Trading
Advisor's allocated Net Assets after such increase or decrease by the Trading
Advisor's allocated Net Assets immediately before such increase or decrease and
(y) multiplying that fraction by the amount of the unrecovered futures interests
trading loss experienced in that month prior to such increase or decrease. In
the event that the Partnership experiences a futures interests trading loss in
more than one month with respect to the Trading Advisor's allocated Net Assets
without the payment of an intervening incentive fee and Net Assets are increased
or reduced in more than one such month because of redemptions, additions or
reallocations, then the trading loss for each such month shall be adjusted in
accordance with the formula described above and such increased or reduced amount
of futures interests trading loss shall be carried forward and used to offset
subsequent futures interest trading profits. The portion of redemptions to be
allocated to the Net Assets of the Partnership managed by each of the trading
advisors to the Partnership shall be in the sole discretion of the General
Partner.

            7.    TERM.

            This Agreement shall continue in effect until May 31, 2004 (the
"Initial Termination Date"). If this Agreement is not terminated on the Initial
Termination Date, as provided for herein, then, this Agreement shall
automatically renew for an additional one-year period and shall continue to
renew for additional one-year periods until this Agreement is otherwise
terminated, as provided for herein. At least thirty days prior to the expiration
of the Initial Termination Date or any subsequent one-year period, as the case
may be, the Trading Advisor may terminate this Agreement at the end of the
current period by providing written notice to the Partnership indicating that
the Trading Advisor desires to terminate this Agreement at the end of such
period. This Agreement shall also terminate if the Partnership terminates. The
Partnership shall have the right to terminate this Agreement at its discretion
(a) at any month end upon five calendar days' prior written notice to the
Trading Advisor or (b) at any time upon

<PAGE>

written notice to the Trading Advisor upon the occurrence of any of the
following events: (i) if any person described as a "principal" of the Trading
Advisor in the Prospectus ceases for any reason to be an active executive
officer of the Trading Advisor; (ii) if the Trading Advisor becomes bankrupt or
insolvent; (iii) if the Trading Advisor is unable to use its trading programs,
systems or methods as in effect on the date hereof and as refined and modified
in the future for the benefit of the Partnership; (iv) if the registration, as a
commodity trading advisor, of the Trading Advisor with the CFTC or its
membership in the NFA is revoked, suspended, terminated, or not renewed, or
limited or qualified in any respect; (v) except as provided in Section 12
hereof, if the Trading Advisor merges or consolidates with, or sells or
otherwise transfers its advisory business, or all or a substantial portion of
its assets, any portion of its futures interests trading programs, systems or
methods, or its goodwill to, any individual or entity; (vi) if the Trading
Advisor's initially allocated Net Assets, after adjusting for distributions,
additions, redemptions, or reallocations, if any, shall decline by 50% or more
as a result of trading losses or if Net Assets allocated to the Trading Advisor
fall below $5,000,000.00 at any time; (vii) if, at any time, the Trading Advisor
violates any trading or administrative policy described in writing to the
Trading Advisor by the General Partner, except with the prior express written
consent of the General Partner; or (viii) if the Trading Advisor fails in a
material manner to perform any of its obligations under this Agreement. The
Trading Advisor may terminate this Agreement at any time, upon written notice to
the Partnership, in the event: (i) that the General Partner imposes additional
trading limitation(s) in the form of one or more trading policies or
administrative policies which the Trading Advisor does not agree to follow in
its management of its allocable share of the Partnership's Net Assets; (ii) the
General Partner objects to the Trading Advisor implementing a proposed material
change in the Trading Advisor's trading program(s) used by the Partnership and
the Trading Advisor certifies to the General Partner in writing that it believes
such change is in the best interests of the Partnership; (iii) the General
Partner overrides a trading instruction of the Trading Advisor for reasons
unrelated to a determination by the General Partner that the Trading Advisor has
violated the Partnership's trading policies and the Trading Advisor certifies to
the General Partner in writing that as a result, the Trading Advisor believes
the performance results of the Trading Advisor relating to the Partnership will
be materially adversely affected; (iv) the Partnership materially breaches this
Agreement and does not correct the breach within 10 business days of receipt of
a written notice of such breach from the Trading Advisor; or (v) the Trading
Advisor has amended its trading program to include a foreign futures or option
contract which may lawfully be traded by the Partnership under CFTC regulations
and counsel, mutually acceptable to the parties, has not opined that such
inclusion would cause adverse tax consequences to Limited Partners and the
General Partner does not consent to the Trading Advisor's trading such contract
for the Partnership within five business days of a written request by the
Trading Advisor to do so, and, if such consent is given, does not make
arrangements to facilitate such trading within 90 days of such notice. In
addition, the Trading Advisor may terminate this Agreement by providing 30 days
prior written notice to the General Partner if the Partnership's Net Assets
allocated to the Trading Advisor fall below $5,000,000 at any time.

            The indemnities set forth in Section 8 hereof shall survive any
termination of this Agreement.

<PAGE>

            8.    STANDARD OF LIABILITY; INDEMNIFICATIONS.

            (a) LIMITATION OF TRADING ADVISOR LIABILITY. In respect of the
Trading Advisor's role in the futures interests trading of the Partnership's
assets, none of the Trading Advisor, or its controlling persons, its affiliates,
and their respective directors, officers, shareholders, employees or controlling
persons shall be liable to the Partnership or the General Partner or their
partners, officers, shareholders, directors or controlling persons except that
the Trading Advisor shall be liable for acts or omissions of any such person
provided that such act or omission constitutes a breach of this Agreement or a
representation, warranty or covenant herein, misconduct or negligence or is the
result of any such person not having acted in good faith and in the reasonable
belief that such actions or omissions were in, or not opposed to, the best
interests of the Partnership.

            (b) TRADING ADVISOR INDEMNITY IN RESPECT OF MANAGEMENT ACTIVITIES.
The Trading Advisor shall indemnify, defend and hold harmless the Partnership
and the General Partner, their controlling persons, their affiliates and their
respective directors, officers, shareholders, employees, and controlling persons
from and against any and all losses, claims, damages, liabilities (joint and
several), costs, and expenses (including any reasonable investigatory, legal,
and other expenses incurred in connection with, and any amounts paid in, any
settlement; provided that the Trading Advisor shall have approved such
settlement) incurred as a result of any action or omission involving the
Partnership's futures interests trading of the Trading Advisor, or any of its
controlling persons or affiliates or their respective directors, officers,
partners, shareholders, or employees; PROVIDED that such liability arises from
an act or omission of the Trading Advisor, or any of its controlling persons or
affiliates or their respective directors, officers, partners, shareholders, or
employees which is found by a court of competent jurisdiction upon entry of a
final judgment (or, if no final judgment is entered, by an opinion rendered by
counsel who is approved by the Partnership and the Trading Advisor, such
approval not to be unreasonably withheld) to be a breach of this Agreement or a
representation, warranty or covenant herein, the result of bad faith, misconduct
or negligence, or conduct not done in good faith in the reasonable belief that
it was in, or not opposed to, the best interests of the Partnership.

            (c) PARTNERSHIP INDEMNITY IN RESPECT OF MANAGEMENT Activities. The
Partnership shall indemnify, defend, and hold harmless the Trading Advisor, its
controlling persons, their affiliates and their respective directors, officers,
shareholders, employees, and controlling persons, from and against any and all
losses, claims, damages, liabilities (joint and several), costs, and expenses
(including any reasonable investigatory, legal, and other expenses incurred in
connection with, and any amounts paid in, any settlement; provided that the
Partnership shall have approved such settlement) resulting from a demand, claim,
lawsuit, action, or proceeding (other than those incurred as a result of claims
brought by or in the right of an indemnified party) relating to the futures
interests trading activities of the Partnership undertaken by the Trading
Advisor; PROVIDED that a court of competent jurisdiction upon entry of a final
judgment finds (or, if no final judgment is entered, an opinion is rendered to
the Partnership by independent counsel reasonably acceptable to both parties) to
the effect that the action or inaction of such indemnified party that was the
subject of the demand, claim, lawsuit, action, or proceeding did not constitute
negligence, misconduct, or a breach of this Agreement or a representation,
warranty or covenant of the Trading Advisor herein and was done in good faith

<PAGE>

and in a manner such indemnified party reasonably believed to be in, or not
opposed to, the best interests of the Partnership.

            (d) TRADING ADVISOR INDEMNITY IN RESPECT OF SALE OF UNITS. The
Trading Advisor shall indemnify, defend and hold harmless DWR, MS & Co., MSIL,
the Partnership, the General Partner, any additional seller, and their
affiliates and each of their officers, directors, principals, shareholders,
controlling persons from and against any loss, claim, damage, liability, cost,
and expense, joint and several, to which any indemnified person may become
subject under the Securities Act, the Securities Exchange Act of 1934, as
amended (the "Exchange Act") the Commodity Exchange Act, as amended, and rules
promulgated thereunder (the "CEAct"), the securities or Blue Sky law of any
jurisdiction, or otherwise (including any reasonable investigatory, legal, and
other expenses incurred in connection with, and any amounts paid in, any
settlement, provided that the Trading Advisor shall have approved such
settlement, and in connection with any administrative proceedings), in respect
of the offer or sale of Units, insofar as such loss, claim, damage, liability,
cost, or expense (or action in respect thereof) arises out of, or is based upon:
(i) a breach by the Trading Advisor of any representation, warranty, or
agreement in this Agreement or any certificate delivered pursuant to this
Agreement or the failure by the Trading Advisor to perform any covenant made by
the Trading Advisor herein; (ii) a breach of the disclosure requirements under
the CEAct or NFA Rules that relate to the Trading Advisor and the Trading
Advisor Principals; (iii) a misleading or untrue statement or alleged misleading
or untrue statement of a material fact made in the Registration Statement, the
Prospectus, or any related selling material or an omission or alleged omission
to state a material fact therein which is required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus and any
selling material, in light of the circumstances under which they were made) not
misleading, and such statement or omission relates specifically to the Trading
Advisor, or its Trading Advisor Principals (as defined in Section 10(a)(iv)
below) (including the historical performance capsules) or was made in reliance
upon, and in conformity with, written information or instructions furnished by
the Trading Advisor (PROVIDED, HOWEVER, that with respect to any related selling
material only such related selling material as shall have been approved in
writing by the Trading Advisor).

            (e) PARTNERSHIP INDEMNITY IN RESPECT OF SALE OF UNITS. The
Partnership agrees to indemnify, defend and hold harmless the Trading Advisor
and each of its officers, directors, principals, shareholders, controlling
persons from and against any loss, claim, damage, liability, cost, and expense,
joint and several, to which any indemnified person may become subject under the
Securities Act, the Exchange Act, the CEAct, the securities or Blue Sky law of
any jurisdiction, or otherwise (including any reasonable investigatory, legal,
and other expenses incurred in connection with, and any amounts paid in, any
settlement, provided that the Partnership shall have approved such settlement,
and in connection with any administrative proceedings), in respect of the offer
or sale of Units, insofar as such loss, claim, damage, liability, cost, or
expense (or action in respect thereof) arises out of, or is based upon: (i) a
breach by the Partnership or the General Partner of any representation,
warranty, or agreement in this Agreement or the failure by the Partnership or
the General Partner to perform any covenant made by them herein; or (ii) a
misleading or untrue statement or alleged misleading or untrue statement of a
material fact made in the Registration Statement, the Prospectus, or any related
selling material or an omission or alleged omission to state a material fact
therein which is required to be stated therein or necessary to make the
statements therein (in the case of the

<PAGE>

Prospectus or the selling material, in light of the circumstances under which
they were made) not misleading, provided that such materially misleading or
untrue statement or alleged materially misleading or untrue statement or
omission or alleged omission does not relate to the Trading Advisor or its
Trading Advisor Principals (including the historical performance capsules) or
was not made in reliance upon, and in conformity with, information or
instructions furnished by the Trading Advisor (PROVIDED, HOWEVER, that with
respect to any related selling material, only such related selling material as
shall have been approved in writing by the Trading Advisor), or does not result
from a breach by the Trading Advisor of any representation, warranty, or
agreement in this Agreement or any certificate delivered pursuant to this
Agreement or the failure by the Trading Advisor to materially perform any
covenant made in this Agreement.

            (f) The foregoing agreements of indemnity shall be in addition to,
and shall in no respect limit or restrict, any other remedies which may be
available to an indemnified person.

            (g) Promptly after receipt by an indemnified person of notice of the
commencement of any action, claim, or proceeding to which any of the indemnities
may apply, the indemnified person will notify the indemnifying party in writing
of the commencement thereof if a claim in respect thereof is to be made against
the indemnifying party hereunder; but the omission so to notify the indemnifying
party will not relieve the indemnifying party from any liability which the
indemnifying party may have to the indemnified person hereunder, except where
such omission has materially prejudiced the indemnifying party. In case any
action, claim, or proceeding is brought against an indemnified person and the
indemnified person notifies the indemnifying party of the commencement thereof
as provided above, the indemnifying party will be entitled to participate
therein and, to the extent that the indemnifying party desires, to assume the
defense thereof with counsel selected by the indemnifying party and not
unreasonably disapproved by the indemnified person. After notice from the
indemnifying party to the indemnified person of the indemnifying party's
election so to assume the defense thereof as provided above, the indemnifying
party will not be liable to the indemnified person under the indemnity
provisions hereof for any legal and other expenses subsequently incurred by the
indemnified person in connection with the defense thereof, other than reasonable
costs of investigation.

            Notwithstanding the proceeding paragraph, if, in any action, claim,
or proceeding as to which indemnification is or may be available hereunder, an
indemnified person reasonably determines that its interests are or may be
adverse, in whole or in part, to the indemnifying party's interests or that
there may be legal defenses available to the indemnified person which are
different from, in addition to, or inconsistent with the defenses available to
the indemnifying party, the indemnified person may retain its own counsel in
connection with such action, claim, or proceeding and will be indemnified by the
indemnifying party for any legal and other expenses reasonably incurred in
connection with investigating or defending such action, claim, or proceeding.

            In no event will the indemnifying party be liable for the fees and
expenses of more than one counsel for all indemnified persons in connection with
any one action, claim, or proceeding or in connection with separate but similar
or related actions, claims, or proceedings in the same jurisdiction arising out
of the same general allegations. The indemnifying party will not be liable for
any settlement of any action, claim, or proceeding effected without the

<PAGE>

indemnifying party's express written consent, but if any action, claim, or
proceeding is settled with the indemnifying party's express written consent, the
indemnifying party will indemnify, defend, and hold harmless an indemnified
person as provided in this Section 8.

            9.    RIGHT TO ADVISE OTHERS AND UNIFORMITY OF ACTS AND PRACTICES.

            (a) The Trading Advisor is engaged in the business of advising
investors as to the purchase and sale of futures interests. During the term of
this Agreement, the Trading Advisor, its principals and affiliates, will be
advising other investors (including affiliates and the stockholders, officers,
directors, and employees of the Trading Advisor and its affiliates and their
families) and trading for their own accounts. However, under no circumstances
shall the Trading Advisor by any act or omission favor any account advised or
managed by the Trading Advisor over the account of the Partnership in any way or
manner (other than by charging different management and/or incentive fees). The
Trading Advisor agrees to treat the Partnership in a fiduciary capacity to the
extent recognized by applicable law, but, subject to that standard, the Trading
Advisor or any of its principals or affiliates shall be free to advise and
manage accounts for other investors and shall be free to trade on the basis of
the same trading programs, systems, methods, or strategies employed by the
Trading Advisor for the account of the Partnership, or trading programs,
systems, methods, or strategies which are entirely independent of, or materially
different from, those employed for the account of the Partnership, and shall be
free to compete for the same futures interests as the Partnership or to take
positions opposite to the Partnership, where such actions do not knowingly or
deliberately prefer any of such accounts over the account of the Partnership.

            (b) The Trading Advisor shall not be restricted as to the number or
nature of its clients, except that: (i) so long as the Trading Advisor acts as a
trading advisor for the Partnership, neither the Trading Advisor nor any of its
principals or affiliates shall hold knowingly any position or control any other
account which would cause the Partnership, the Trading Advisor, or the
principals or affiliates of the Trading Advisor to be in violation of the CEAct
or any regulations promulgated thereunder, any applicable rule or regulation of
the CFTC or any other regulatory body, exchange, or board; and (ii) neither the
Trading Advisor nor any of its principals or affiliates shall render futures
interests trading advice to any other individual or entity or otherwise engage
in activity which shall knowingly cause positions in futures interests to be
attributed to the Trading Advisor under the rules or regulations of the CFTC or
any other regulatory body, exchange, or board so as to require the significant
modification of positions taken or intended for the account of the Partnership;
provided that the Trading Advisor may modify its trading programs, systems,
methods or strategies to accommodate the trading of additional funds or
accounts. If applicable speculative position limits are exceeded by the Trading
Advisor in the opinion of (i) independent counsel (who shall be other than
counsel to the Partnership), (ii) the CFTC, or (iii) any other regulatory body,
exchange, or board, the Trading Advisor and its principals and affiliates shall
promptly liquidate positions in all of their accounts, including the
Partnership's account, as to which positions are attributed to the Trading
Advisor as nearly as possible in proportion to the accounts' respective amounts
available for trading (taking into account different degrees of leverage and
"notional" equity) to the extent necessary to comply with the applicable
position limits.

<PAGE>

            10.   REPRESENTATIONS, WARRANTIES, AND COVENANTS OF THE TRADING
                  ADVISOR.

            (a) REPRESENTATIONS OF THE TRADING ADVISOR. The Trading Advisor with
respect to itself and each of its principals represents and warrants to and
agrees with the General Partner and the Partnership as follows:

                  (i) It will exercise good faith and due care in using the
      trading programs on behalf of the Partnership that are described in the
      Prospectus (as modified from time to time) or any other trading programs
      agreed to by the General Partner.

                  (ii) The Trading Advisor shall follow, at all times, the
      trading policies of the Partnership (as described in the Prospectus and as
      set forth in Exhibit A hereto) and as amended in writing and furnished to
      the Trading Advisor from time to time, provided, that the General Partner
      has notified the Trading Advisor of these trading policies and the Trading
      Advisor has consented thereto.

                  (iii) The Trading Advisor shall trade: (A) the Partnership's
      Net Assets pursuant to the same trading programs described in the
      Prospectus unless the General Partner agrees otherwise and (B) only in
      futures and option contracts traded on U.S. contract markets, foreign
      currency forward contracts traded with MS & Co., and such other futures
      interests which are approved in writing by the General Partner.

                  (iv) The Trading Advisor is duly organized, validly existing
      and in good standing as a limited partnership under the laws of the state
      of its formation and is qualified to do business and is in good standing
      in each other jurisdiction in which the nature or conduct of its business
      requires such qualification and the failure to so qualify would materially
      adversely affect the Trading Advisor's ability to perform its duties under
      this Agreement. The Trading Advisor has full corporate power and authority
      to perform its obligations under this Agreement, and as described in the
      Registration Statement and Prospectus. The only principals (as defined in
      Rule 4.10(e) under the CEAct) of the Trading Advisor are those set forth
      in the Prospectus (the "Trading Advisor Principals").

                  (v) All references to the Trading Advisor and each Trading
      Advisor Principal, including the Trading Advisor's trading programs,
      approaches, systems and performance, in the Registration Statement and the
      Prospectus, and in the supplemental selling material which has been
      approved in writing by the Trading Advisor, are accurate and complete in
      all material respects. With respect to the material relating to the
      Trading Advisor and each Trading Advisor Principal, including the Trading
      Advisor's and the Trading Advisor Principals' trading programs,
      approaches, systems, and performance information, as applicable, (i) the
      Registration Statement and Prospectus contain all statements and
      information required to be included therein under the CEAct, (ii) the
      Registration Statement as of its effective date will not contain any
      misleading or untrue statement of a material fact or omit to state a
      material fact which is required to be stated therein or necessary to make
      the statements therein not misleading and (iii) the Prospectus at its date
      of issue and as of each closing will not contain any untrue statement

<PAGE>

      of a material fact or omit to state a material fact necessary to make the
      statements therein, in light of the circumstances under which such
      statements were made, not misleading.

                  (vi) This Agreement has been duly and validly authorized,
      executed and delivered on behalf of the Trading Advisor and is a valid and
      binding agreement of the Trading Advisor enforceable in accordance with
      its terms.

                  (vii) Each of the Trading Advisor and each "principal" of the
      Trading Advisor, as defined in Rule 3.1 under the CEAct, has all federal
      and state governmental, regulatory and exchange licenses, registrations
      and approvals and has effected all filings with federal and state
      governmental and regulatory agencies required to conduct its or his
      business and to act as described in the Registration Statement and
      Prospectus or required to perform its or his obligations under this
      Agreement. The Trading Advisor is registered as a commodity trading
      advisor under the CEAct and is a member of the NFA in such capacity.

                  (viii) The execution and delivery of this Agreement, the
      incurrence of the obligations set forth herein, the consummation of the
      transactions contemplated herein and in the Prospectus and the payment of
      the fees hereunder will not violate, or constitute a breach of, or default
      under, the certificate of limited partnership or the limited partnership
      agreement of the Trading Advisor or any agreement or instrument by which
      it is bound or of any order, rule, law or regulation binding on it of any
      court or any governmental body or administrative agency or panel or
      self-regulatory organization having jurisdiction over it.

                  (ix) Since the respective dates as of which information is
      given in the Registration Statement and the Prospectus, except as may
      otherwise be stated in or contemplated by the Registration Statement and
      the Prospectus, there has not been any material adverse change in the
      condition, financial or otherwise, business or prospects of the Trading
      Advisor or any Trading Advisor Principal.

                  (x) Except as set forth in the Registration Statement or
      Prospectus there has not been in the five years preceding the date of the
      Prospectus and there is not pending, or to the best of the Trading
      Advisor's knowledge threatened, any action, suit or proceeding before or
      by any court or other governmental body to which the Trading Advisor or
      any Trading Advisor Principal is or was a party, or to which any of the
      assets of the Trading Advisor is or was subject and which resulted in or
      might reasonably be expected to result in any material adverse change in
      the condition, financial or otherwise, business or prospects of the
      Trading Advisor or which is required under the Securities Act or CEAct to
      be disclosed in the Prospectus. Neither the Trading Advisor nor any
      Trading Advisor Principal has received any notice of an investigation by
      the NFA nor the CFTC regarding noncompliance by the Trading Advisor or any
      of the Trading Advisor Principals with the CEAct.

                  (xi) Neither the Trading Advisor nor any Trading Advisor
      Principal has received, or is entitled to receive, directly or indirectly,
      any commission, finder's fee,

<PAGE>

      similar fee, or rebate from any person in connection with the organization
      or operation of the Partnership, other than as described in the
      Prospectus.

                  (xii) The actual performance of each discretionary account of
      a client directed by the Trading Advisor and the Trading Advisor
      Principals since at least the later of (i) the date of commencement of
      trading for each such account or (ii) a date five years prior to the
      effective date of the Registration Statement, is disclosed in the
      Prospectus (other than such discretionary accounts the performance of
      which are exempt from the CEAct disclosure requirements); all of the
      information regarding the actual performance of the accounts of the
      Trading Advisor and the Trading Advisor Principals set forth in the
      Prospectus is complete and accurate in all material respects and is in
      accordance with and in compliance with the disclosure requirements under
      the CEAct and the Securities Act, including the Division of Trading and
      Markets "notional equity" advisories and interpretations and the rules and
      regulations of the NFA.

            (b)   COVENANTS  OF THE TRADING  ADVISOR.  The  Trading  Advisor
covenants and agrees that:

                  (i) The Trading Advisor shall use its best efforts to maintain
      all registrations and memberships necessary for the Trading Advisor to
      continue to act as described herein and to at all times comply in all
      material respects with all applicable laws, rules, and regulations, to the
      extent that the failure to so comply would have a materially adverse
      effect on the Trading Advisor's ability to act as described herein.

                  (ii) The Trading Advisor shall inform the General Partner
      immediately as soon as the Trading Advisor or any of its principals
      becomes the subject of any investigation, claim or proceeding of any
      regulatory authority having jurisdiction over such person or becomes a
      named party to any litigation materially affecting the business of the
      Trading Advisor. The Trading Advisor shall also inform the General Partner
      immediately if the Trading Advisor or any of its officers becomes aware of
      any breach of this Agreement by the Trading Advisor.

                  (iii) The Trading Advisor agrees reasonably to cooperate by
      providing information regarding itself and its performance in the
      preparation of any amendments or supplements to the Registration Statement
      and the Prospectus.

                  (iv) The Trading Advisor agrees to participate, to the extent
      that the General Partner may reasonably request, in "road shows" and other
      promotional activities relating to the marketing of the Units, provided
      that such participation shall not in the reasonable judgment of the
      Trading Advisor require the registration of the Trading Advisor or any of
      its principals or agents as a broker-dealer or salesman or interfere
      materially with the trading activities of the Trading Advisor. The Trading
      Advisor shall pay the costs of its reasonably requested participation in
      such road shows.

<PAGE>

            11.   REPRESENTATIONS, WARRANTIES, AND COVENANTS OF THE GENERAL
                  PARTNER AND THE PARTNERSHIP.

            (a)   REPRESENTATIONS  OF  THE  PARTNERSHIP  AND  THE  GENERAL
PARTNER.  The General Partner and the  Partnership  represent and warrant to
the Trading Advisor, as follows:

                  (i) The Partnership has provided to the Trading Advisor, and
      filed with the SEC, the Registration Statement and has filed copies
      thereof with: (i) the CFTC under the CEAct; (ii) the NASD pursuant to its
      Conduct Rules; and (iii) the NFA in accordance with NFA Compliance Rule
      2-13. The Partnership will not file any amendment to the Registration
      Statement or any amendment or supplement to the Prospectus unless the
      Trading Advisor has received reasonable prior notice of and a copy of such
      amendments or supplements and has not reasonably objected thereto in
      writing.

                  (ii) The Limited Partnership Agreement provides for the
      subscription for and sale of the Units; all action required to be taken by
      the General Partner and the Partnership as a condition to the sale of the
      Units to qualified subscribers therefor has been, or prior to each Closing
      (as defined in the Prospectus) will have been taken; and, upon payment of
      the consideration therefor specified in each accepted Subscription and
      Exchange Agreement and Power of Attorney, in such form as attached to the
      Prospectus, the Units will constitute valid limited partnership interests
      in the Partnership.

                  (iii) The Partnership is a limited partnership duly organized
      pursuant to the Certificate of Limited Partnership, the Limited
      Partnership Agreement and the Delaware Revised Uniform Limited Partnership
      Act ("DRULPA") and is validly existing under the laws of the State of
      Delaware with full power and authority to engage in the trading of futures
      interests and to engage in its other contemplated activities as described
      in the Prospectus; the Partnership has received a certificate of authority
      to do business in the State of New York as provided by Article 8-A of the
      New York Revised Limited Partnership Act and is qualified to do business
      in each jurisdiction in which the nature or conduct of its business
      requires such qualification and where failure to be so qualified could
      materially adversely affect the Partnership's ability to perform its
      obligations hereunder.

                  (iv) The General Partner is duly organized and validly
      existing and in good standing as a corporation under the laws of the State
      of Delaware and in good standing and qualified to do business as a foreign
      corporation under the laws of the State of New York and is qualified to do
      business and is in good standing as a foreign corporation 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 General Partner's ability to perform its obligations
      hereunder.

                  (v) The Partnership and the General Partner have full
      partnership or corporate power and authority under applicable law to
      conduct their business and to perform their respective obligations under
      this Agreement.

<PAGE>

                  (vi) The Registration Statement and Prospectus contain all
      statements and information required to be included therein by the CEAct.
      When the Registration Statement becomes effective under the Securities Act
      and at all times subsequent thereto up to and including each Closing, the
      Registration Statement and Prospectus will comply in all material respects
      with the requirements of the Securities Act, the rules and regulations
      promulgated thereunder (the "SEC Regulations"), the rules of the NFA and
      the CEAct. The Registration Statement as of its effective date will not
      contain any misleading or untrue statement of a material fact or omit to
      state a material fact required to be stated therein or necessary to make
      the statements therein not misleading. The Prospectus as of its date of
      issue and at each Closing will not contain any misleading or untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements therein, in light of the circumstances under which
      such statements were made, not misleading. The supplemental selling
      material, when read in conjunction with the Prospectus, will not contain
      any untrue statement of a material fact or omit to state a material fact
      necessary to make the statements therein, in light of the circumstances
      under which such statements were made, not misleading. The supplemental
      selling material will comply with the CEAct and the regulations and rules
      of the NFA and NASD. The representation, and warranties in this clause
      (vi) shall not, however, apply to any statement or omission in the
      Registration Statement, Prospectus or supplemental selling material
      relating to the Trading Advisor, or its Trading Advisor Principals or its
      trading programs or made in reliance upon and in conformity with
      information furnished by the Trading Advisor.

                  (vii) Since the respective dates as of which information is
      given in the Registration Statement and the Prospectus, there has not been
      any material adverse change in the condition, financial or otherwise,
      business or prospects of the General Partner or the Partnership, whether
      or not arising in the ordinary course of business.

                  (viii) This Agreement has been duly and validly authorized,
      executed and delivered by the General Partner on behalf of the Partnership
      and constitutes a valid, binding and enforceable agreement of the
      Partnership in accordance with its terms.

                  (ix) The execution and delivery of this Agreement, the
      incurrence of the obligations set forth herein and the consummation of the
      transactions contemplated herein and in the Registration Statement and
      Prospectus will not violate, or constitute a breach of, or default under,
      the General Partner's certificate of incorporation, bylaws, the
      Certificate of Limited Partnership, or the Limited Partnership Agreement
      or any agreement or instrument by which either the General Partner or the
      Partnership, as the case may be, is bound or any order, rule, law or
      regulation applicable to the General Partner or the Partnership of any
      court or any governmental body or administrative agency or panel or
      self-regulatory organization having jurisdiction over the General Partner
      or the Partnership.

                  (x) Except as set forth in the Registration Statement or
      Prospectus, there has not been in the five years preceding the date of the
      Prospectus and there is not pending or, to the best of the General
      Partner's knowledge, threatened, any action, suit or proceeding at law or
      in equity before or by any court or by any federal, state, municipal

                                       1
<PAGE>

      or other governmental body or any administrative, self-regulatory or
      commodity exchange organization to which the General Partner or the
      Partnership is or was a party, or to which any of the assets of the
      General Partner or the Partnership is or was subject and which resulted in
      or might reasonably be expected to result in any materially adverse change
      in the condition, financial or otherwise, of the General Partner or the
      Partnership or which is required under the Securities Act or the CEAct to
      be disclosed in the Prospectus; and neither the General Partner nor any of
      the principals of the General Partner, as "principals" is defined under
      Rule 4.10 under the CEAct ("General Partner Principals") has received any
      notice of an investigation by the NFA, NASD, SEC or CFTC regarding
      non-compliance by the General Partner or the General Partner Principals or
      the Partnership with the CEAct or the Securities Act which is required
      under the Securities Act or the CEAct to be disclosed in the Prospectus.

                  (xi) The General Partner and each principal of the General
      Partner, as defined in Rule 3.1 under the CEAct, have all federal and
      state governmental, regulatory and exchange approvals, registrations, and
      licenses, and have effected all filings with federal and state
      governmental agencies and regulatory agencies required to conduct their
      business and to act as described in the Registration Statement and
      Prospectus or required to perform their obligations under this Agreement
      (including, without limitation, registration as a commodity pool operator
      under the CEAct and membership in the NFA as a commodity pool operator)
      and will maintain all such required approvals, licenses, filings and
      registrations for the term of this Agreement. The General Partner's
      principals identified in the Registration Statement are all of the General
      Partner Principals.

            (b)   COVENANTS  OF THE  GENERAL  PARTNER  AND THE  PARTNERSHIP.
The General Partner covenants and agrees that:

                  (i) The General Partner shall use its best efforts to maintain
      all registrations and memberships necessary for the General Partner to
      continue to act as described herein and in the Prospectus and to all times
      comply in all material respects with all applicable laws, rules, and
      regulations, to the extent that the failure to so comply would have a
      materially adverse effect on the General Partner's ability to act as
      described herein and in the Prospectus.

                  (ii) The General Partner shall inform the Trading Advisor
      immediately as soon as the General Partner or any of its principals
      becomes the subject of any investigation, claim, or proceeding of any
      regulatory authority having jurisdiction over such person or becomes a
      named party to any litigation materially affecting the business of the
      General Partner. The General Partner shall also inform the Trading Advisor
      immediately if the General Partner or any of its officers become aware of
      any breach of this Agreement by the General Partner.

                  (iii) The Partnership will furnish to the Trading Advisor
      copies of the Registration Statement, the Prospectus, and all amendments
      and supplements thereto, in each case as soon as available.

<PAGE>

            12.   MERGER OR TRANSFER OF ASSETS OF TRADING ADVISOR.

            The Trading Advisor may merge or consolidate with, or sell or
otherwise transfer its advisory business, or all or a substantial portion of its
assets, any portion of its commodity trading programs, systems or methods, or
its goodwill, to any entity that is directly or indirectly controlled by,
controlling, or under common control with, the Trading Advisor, provided that
such entity expressly assumes all obligations of the Trading Advisor under this
Agreement and agrees to continue to operate the business of the Trading Advisor,
substantially as such business is being conducted on the date hereof.

            13.   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.

            14.   ASSIGNMENT.

            This Agreement may not be assigned by any party hereto without the
express written consent of the other parties hereto.

            15.   AMENDMENT.

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

            16.   SEVERABILITY.

            The invalidity or unenforceability of any provision of this
Agreement or any covenant herein contained shall not affect the validity or
enforceability of any other provision or covenant hereof or herein contained and
any such invalid provision or covenant shall be deemed to be severable.

            17.   CLOSING CERTIFICATES AND OPINIONS.

            (1) The Trading Advisor shall, at the Partnership's first Monthly
Closing (as defined in the Prospectus), following the effective date of the
Registration Statement and at the request of the General Partner at any Monthly
Closing, provide the following:

            (a) To DWR, the General Partner and the Partnership a certificate,
dated the date of any such closing and in form and substance satisfactory to
such parties, to the effect that:

<PAGE>

                  (i) The representations and warranties by the Trading Advisor
      in this Agreement are true, accurate, and complete on and as of the date
      of the closing, as if made on the date of the closing.

                  (ii) The Trading Advisor has performed all of its obligations
      and satisfied all of the conditions on its part to be performed or
      satisfied under this Agreement, at or prior to the date of such closing.

            (b) To DWR, the General Partner and the Partnership an opinion of
counsel to the Trading Advisor, in form and substance satisfactory to such
parties, to the effect that:

                  (i) The Trading Advisor is a limited partnership duly formed
      and validly existing under the laws of the State of Delaware and is
      qualified to do business and in good standing in each other jurisdiction
      in which the nature or conduct of its business requires such qualification
      and the failure to be duly qualified would materially adversely affect the
      Trading Advisor's ability to perform its obligations under this Agreement.
      The Trading Advisor has full power and authority to conduct its business
      as described in the Registration Statement and Prospectus and to perform
      its obligations under this Agreement.

                  (ii) The Trading Advisor (including the Trading Advisor
      Principals) has all governmental, regulatory, self-regulatory and
      commodity exchange and clearing association licenses, registrations, and
      memberships required by law, and the Trading Advisor (including the
      Trading Advisor Principals) has made all filings necessary to perform its
      obligations under this Agreement and to conduct its business as described
      in the Registration Statement and Prospectus, except for such licenses,
      memberships, filings and registrations, the absence of which would not
      have a material adverse effect on its ability to act as described in the
      Registration Statement and Prospectus or to perform its obligations under
      this Agreement, and, to the best of such counsel's knowledge, after due
      investigations, none of such licenses, memberships or registrations have
      been rescinded, revoked or suspended.

                  (iii) This Agreement has been duly authorized, executed and
      delivered by or on behalf of the Trading Advisor and constitutes a valid
      and binding agreement of the Trading Advisor enforceable in accordance
      with its terms, subject only to bankruptcy, insolvency, reorganization,
      moratorium or similar laws at the time in effect affecting the
      enforceability generally of rights of creditors and by general principles
      of equity (regardless of whether such enforceability is considered in a
      proceeding in equity or at law), and except as enforceability of the
      indemnification, exculpation, and contribution provisions contained in
      this Agreement may be limited by applicable law or public policy and the
      enforcement of specific terms or remedies may be unavailable.

                  (iv) Based upon due inquiry of certain officers of the Trading
      Advisor, to the best of such counsel's knowledge, except as disclosed in
      the Prospectus, there are no material actions, suits or proceedings at law
      or in equity either threatened or pending in any court or before or by any
      governmental or administrative body nor have there been any such actions,
      suits or proceedings at any time within the five years preceding the date

<PAGE>

      of the Prospectus against the Trading Advisor or any Trading Advisor
      Principal which are required to be disclosed in the Registration Statement
      or Prospectus.

                  (v) The execution and delivery of this Agreement, the
      incurrence of the obligations herein set forth and the consummation of the
      transactions contemplated herein and in the Prospectus will not be in
      contravention of any of the provisions of the certificate of limited
      partnership or limited partnership agreement of the Trading Advisor and,
      based upon due inquiry of certain officers of the Trading Advisor, to the
      best of such counsel's knowledge, will not constitute a breach of, or
      default under, or a violation of any instrument or agreement known to such
      counsel by which the Trading Advisor is bound and will not violate any
      order, law, rule or regulation applicable to the Trading Advisor of any
      court or any governmental body or administrative agency or panel or
      self-regulatory organization having jurisdiction over the Trading Advisor.

                  (vi) Based upon reliance of certain SEC "no-action" letters,
      as of the closing, the performance by the Trading Advisor of the
      transactions contemplated by this Agreement and as described in the
      Prospectus will not require the Trading Advisor to be registered as an
      "investment adviser" as that term is defined in the Investment Advisers
      Act of 1940, as amended.

                  (vii) Nothing has come to such counsel's attention that would
      lead them to believe that, (A) the Registration Statement at the time it
      became effective, insofar as the Trading Advisor and the Trading Advisor
      Principals are concerned, contained any untrue statement of a material
      fact or omitted to state a material fact required to be stated therein or
      necessary to make the statements therein not misleading, or (B) the
      Prospectus at the time it was issued or at the closing contained an untrue
      statement of a material fact or omitted to state a material fact necessary
      in order to make the statements therein relating to the Trading Advisor or
      the Trading Advisor Principals, in light of the circumstances under which
      they were made, not misleading; PROVIDED, HOWEVER, that such counsel need
      express no opinion or belief as to the performance data and notes or
      descriptions thereto set forth in the Registration Statement and
      Prospectus, except that such counsel shall opine, without rendering any
      opinion as to the accuracy of the information in such tables, that the
      actual performance tables of the Trading Advisor set forth in the
      Prospectus comply as to form in all material respects with applicable CFTC
      rules and all CFTC and NFA interpretations thereof, except as disclosed in
      the Prospectus or as otherwise permitted by the CFTC staff.

            In giving the foregoing opinion, counsel may rely on information
obtained from public officials, officers of the Trading Advisor, and other
resources believed by it to be responsible and may assume that signatures on all
documents examined by it are genuine.

            (c) To DWR, the General Partner and the Partnership, a report dated
the date of the closing which shall present, for the period from the date after
the last day covered by the historical performance records in the Prospectus to
the latest practicable day before closing, figures which shall be a continuation
of such historical performance records and which shall certify that such figures
are, to the best of such Trading Advisor's knowledge, accurate in all material
respects.

<PAGE>

            (2) The General Partner shall, at the Partnership's first Monthly
Closing following the effective date of the Registration Statement, provide the
following:

            (a) To the Trading Advisor a certificate, dated the date of such
closing and in form and substance satisfactory to the Trading Advisor, to the
effect that:

                  (i) The representations and warranties by the Partnership and
      the General Partner in this Agreement are true, accurate, and complete on
      and as of the date of the closing as if made on the date of the closing.

                  (ii) No stop order suspending the effectiveness of the
      Registration Statement has been issued by the SEC and no proceedings for
      that purpose have been instituted or are pending or, to the knowledge of
      the General Partner, are contemplated or threatened under the Securities
      Act. No order preventing or suspending the use of the Prospectus has been
      issued by the SEC, NASD, CFTC, or NFA and no proceedings for that purpose
      have been instituted or are pending or, to the knowledge of the General
      Partner, are contemplated or threatened under the Securities Act or the
      CEAct.

                  (iii) The Partnership and the General Partner have performed
      all of their obligations and satisfied all of the conditions on their part
      to be performed or satisfied under this Agreement at or prior to the date
      of the closing.

            (b) Cadwalader, Wickersham & Taft, counsel to the General Partner
and the Partnership, shall deliver its opinion to the parties hereto, in form
and substance satisfactory to the parties hereto, to the effect that:

                  (i) The Partnership is a limited partnership duly formed
      pursuant to the Certificate of Limited Partnership, the Limited
      Partnership Agreement and the DRULPA and is validly existing under the
      laws of the State of Delaware with full partnership power and authority to
      conduct the business in which it proposes to engage as described in the
      Registration Statement and Prospectus and to perform its obligations under
      this Agreement; the Partnership has received a Certificate of Authority as
      contemplated under the New York Revised Limited Partnership Act and is
      qualified to do business in New York and need not affect any other filings
      or qualifications under the laws of any other jurisdictions to conduct its
      business as described in the Registration Statement and Prospectus.

                  (ii) The General Partner is duly organized and validly
      existing and in good standing as a corporation under the laws of the State
      of Delaware and is qualified to do business and is in good standing as a
      foreign corporation in the State of New York and in each other
      jurisdiction in which the nature or conduct of its business requires such
      qualification and the failure to so qualify might reasonably be expected
      to result in material adverse consequences to the Partnership or the
      General Partner's ability to perform its obligations as described in the
      Registration Statement and Prospectus. The General Partner has full
      corporate power and authority to conduct its business as described in the
      Registration Statement and Prospectus and to perform its obligations under
      this Agreement.

<PAGE>

                  (iii) The General Partner, each of its principals as defined
      in Rule 3.1 under the CEAct, and the Partnership have all federal and
      state governmental and regulatory licenses, registrations and memberships
      required by law and have made all filings necessary in order for the
      General Partner and the Partnership to perform their obligations under
      this Agreement to conduct their business as described in the Registration
      Statement and Prospectus, except for such licenses, memberships, filings,
      and registrations, the absence of which would not have a material adverse
      effect on the ability of the Partnership or the General Partner to act as
      described in the Registration Statement and Prospectus, or to perform
      their obligations under this Agreement, and, to the best of such counsel's
      knowledge, after due investigation, none of such licenses and memberships
      or registrations have been rescinded, revoked or suspended.

                  (iv) This Agreement has been duly authorized, executed and
      delivered by or on behalf of the General Partner and the Partnership, and
      constitutes a valid and binding agreement of the General Partner and the
      Partnership, enforceable in accordance with its terms, subject to
      bankruptcy, insolvency, reorganization, moratorium or similar laws at the
      time in effect affecting the enforceability generally of rights of
      creditors and by general principals of equity (regardless of whether such
      enforceability is considered in a proceeding in equity or at law), and
      except as enforceability of indemnification, exculpation and contribution
      provisions contained in such agreements may be limited by applicable law
      or public policy.

                  (v) The execution and delivery of this Agreement and the offer
      and sale of the Units by the Partnership and the incurrence of the
      obligations herein set forth and the consummation of the transactions
      contemplated herein and in the Prospectus will not be in contravention of
      the General Partner's certificate of incorporation or bylaws, the
      Certificate of Limited Partnership, or the Limited Partnership Agreement
      and, to the best of such counsel's knowledge based upon due inquiry of
      certain officers of the General Partner, will not constitute a breach of,
      or default under, or a violation of any agreement or instrument known to
      such counsel by which the General Partner or the Partnership is bound and
      will not violate any order known to such counsel or any law, rule or
      regulation applicable to the General Partner or the Partnership of any
      court, governmental body, administrative agency, panel or self-regulatory
      organization having jurisdiction over the General Partner or the
      Partnership.

                  (vi) To such counsel's knowledge, based upon due inquiry of
      certain officers of the General Partner, except as disclosed in the
      Prospectus, there are no actions, suits or proceedings at law or in equity
      pending or threatened before or by any court, governmental body,
      administrative agency, panel or self-regulatory organization, nor have
      there been any such actions, suits or proceedings within the five years
      preceding the date of the Prospectus against the General Partner or the
      Partnership, which are required to be disclosed in the Registration
      Statement or Prospectus.

                  (vii) The Registration Statement is effective under the
      Securities Act and, to the best of such counsel's knowledge, no
      proceedings for a stop order are pending or threatened under Section 8(d)
      of the Securities Act or any similar state securities laws.

<PAGE>

                  (viii) At the time the Registration Statement became
      effective, the Registration Statement, and at the time the Prospectus was
      issued and as of the closing, the Prospectus, complied as to form in all
      material respects with the requirements of the Securities Act, the
      Securities Regulations, the CEAct and the regulations of the NFA and NASD.
      Nothing has come to such counsel's attention that would lead them to
      believe that the Registration Statement at the time it became effective
      contained any untrue statement of a material fact or omitted to state a
      material fact required to be stated therein or necessary to make the
      statements therein not misleading, or that the Prospectus at the time it
      was issued or at the closing contained an untrue statement of a material
      fact or omitted to state a material fact necessary to make the statements
      therein, in light of the circumstances under which they where made, not
      misleading; provided, however, that Cadwalader, Wickersham & Taft need
      express no opinion or belief (a) as to information in the Registration
      Statement or the Prospectus regarding any Trading Advisor or its
      principals, or (b) as to the financial statements, notes thereto and other
      financial or statistical data set forth in the Registration Statement and
      Prospectus, or (c) as to the performance data and notes or descriptions
      thereto set forth in the Registration Statement and Prospectus.

                  (ix) Based upon reliance on certain SEC "no-action" letters,
      as of the closing, the Partnership need not register as an "investment
      company" under the Investment Company Act of 1940, as amended.

            In rendering its opinion, such counsel may rely on information
obtained from public officials, officers of the General Partner and other
sources believed by it to be responsible and may assume that signatures on all
documents examined by it are genuine, and that a Subscription and Exchange
Agreement and Power of Attorney in the form attached to the Prospectus has been
duly authorized, completed, dated, executed, and delivered and funds
representing the full subscription price for the Units purchased have been
delivered by each purchaser of Units in accordance with the requirements set
forth in the Prospectus.

            18.   INCONSISTENT FILINGS.

            The Trading Advisor agrees not to file, participate in the filing
of, or publish any description of the Trading Advisor, or of its respective
principals or trading approaches that is materially inconsistent with those in
the Registration Statement and Prospectus, without so informing the General
Partner and furnishing to it copies of all such filings within a reasonable
period prior to the date of filing or publication.

            19.   DISCLOSURE DOCUMENT.

            During the term of this Agreement, the Trading Advisor shall furnish
to the General Partner promptly copies of all disclosure documents filed with
the CFTC or NFA by the Trading Advisor. The General Partner acknowledges receipt
of the Trading Advisor's disclosure document dated April 1, 2000.

<PAGE>

            20.   NOTICES.

            All notices required to be delivered under this Agreement shall be
in writing and shall be effective when delivered personally or by telecopy on
the day delivered, or when given by registered or certified mail, postage
prepaid, return receipt requested, on the day actually received, 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 Partnership:

            Morgan Stanley Dean Witter Spectrum Select L.P.
            c/o Demeter Management Corporation
            Two World Trade Center
            62nd Floor
            New York, New York  10048
            Attn: Robert E. Murray

            if to the General Partner:

            Demeter Management Corporation
            Two World Trade Center
            62nd Floor
            New York, New York  10048
            Attn:  Robert E. Murray

            if to the Trading Advisor:

            Northfield Trading L.P.
            3609 S. Wadsworth, Suite 250
            Denver, Colorado  80235-2110
            Attn:  Marianne Beausoleil

            21.   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.

            22.   GOVERNING LAW.

            THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK. IF ANY ACTION OR PROCEEDING SHALL BE
BROUGHT BY A PARTY TO THIS AGREEMENT OR TO ENFORCE ANY RIGHT OR REMEDY UNDER
THIS AGREEMENT, EACH PARTY HERETO HEREBY CONSENTS AND WILL SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING
IN THE COUNTY, CITY AND STATE OF NEW YORK. ANY ACTION OR PROCEEDING BROUGHT BY
ANY PARTY TO THIS AGREEMENT TO ENFORCE ANY RIGHT, ASSERT ANY CLAIM OR OBTAIN ANY
RELIEF WHATSOEVER IN CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT BY SUCH

<PAGE>

PARTY EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT
SITTING IN THE COUNTY, CITY AND STATE OF NEW YORK.

            23.   REMEDIES.

            In any action or proceeding arising out of any of the provisions of
this Agreement, the Trading Advisor agrees not to seek any prejudgment equitable
or ancillary relief. The Trading Advisor agrees that its sole remedy in any such
action or proceeding shall be to seek actual monetary damages for any breach of
this Agreement.

            24.   HEADINGS.

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

            25.   COUNTERPARTS.

            This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute the
same agreement.

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

                              MORGAN STANLEY DEAN WITTER SPECTRUM
                              SELECT L.P.
                              by Demeter Management Corporation,
                                 General Partner

                              By:
                                 ------------------------------------------
                              Name:  Robert E. Murray
                              Its:   President

                              DEMETER MANAGEMENT CORPORATION

                              By:
                                 ------------------------------------------
                              Name:  Robert E. Murray
                              Its:   President

                              NORTHFIELD TRADING L.P.

                              By:
                                 ------------------------------------------
                              Name:
                              Its:

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