Document:

dwsfex1002c.htm

  

Execution Version

Novation Agreement and Consent

This Novation Agreement and Consent, dated as of September 24, 2013 (the “Agreement”), is by and among EMC Capital Management, Inc. (“EMC Inc.”), EMC Capital Advisors, LLC (“EMC LLC”), Morgan Stanley Smith Barney Spectrum Select L.P. (formerly known as Dean Witter Spectrum Select L.P.) (the “Partnership”) and Ceres Managed Futures LLC (formerly Demeter Management Corporation) (the “General Partner”).

WHEREAS, Partnership, the General Partner, and EMC Inc. entered into that certain Amended and Restated Management Agreement dated as of the 1st day of June, 1998, as amended by the Amendment No. 1 thereto as of the 1st day of November, 2006 and by the Amendment No. 2 thereto as of the 1st day of July, 2011 (the “Management Agreement”); and

 

WHEREAS, EMC Inc. wishes to be released and discharged from the Management Agreement and EMC LLC wishes to perform all of EMC Inc.’s obligations under the Management Agreement and be bound by the terms of the Management Agreement in EMC Inc.’s place;

NOW, THEREFORE, the parties hereto agree as follows:

1.           The Partnership and General Partner hereby release and discharge EMC Inc. from the Management Agreement as of October 1, 2013 (the “Effective Date”).

2.           EMC LLC undertakes to perform all obligations under the Management Agreement and be bound by the terms of the Management Agreement in every way as if it were a party to the Management Agreement in the place of EMC Inc.

3.           The Partnership and General Partner release and discharge EMC Inc. from all claims and demands arising from or after the Effective Date in respect of the Management Agreement and accept the liability of EMC LLC under the Management Agreement, and agree to be bound by the terms of the Management Agreement in every way as if EMC LLC were named in the Management Agreement in the place of EMC Inc.

4.           This Agreement shall be governed and construed in accordance with the laws of New York.

 

5.           This Agreement may be signed in one or more counterparts, each of which shall be deemed an original, but all of which when taken together shall be deemed to be one and the same instrument.

[Signatures to follow on next page]

  

  

  

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the Effective Date.

EMC CAPITAL MANAGEMENT, INC.

By:   /s/John Krautsack                                                      

Name:  John Krautsack

Title:    President

EMC CAPITAL ADVISORS, LLC

By:   /s/John Krautsack                                                      

Name:   John Krautsack

Title:     President

OTHER PARTIES:

	
MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

by Ceres Managed Futures LLC

General Partner

	
 

By   /s/ Alper Daglioglu

       Alper Daglioglu

       President

	  
	
 

CERES MANAGED FUTURES LLC

 

	
By   /s/ Alper Daglioglu 

       Alper Daglioglu

       Presidentdwsfex1012b.htm

 

AMENDMENT NO. 2

 

 

TO

 

 

MANAGEMENT AGREEMENT

 

 

WHEREAS, MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P. (formerly known as Morgan Stanley Dean Witter Spectrum Select L.P.), a Delaware limited partnership (the “Partnership”), CERES MANAGED FUTURES LLC, a Delaware limited liability company (the “General Partner”), and NORTHFIELD TRADING L.P., a Delaware limited partnership (the “Trading Advisor”), have agreed to amend the Amended and Restated Management Agreement (the “Management Agreement”), dated as of May 1, 2001, and as previously amended by Amendment No. 1 (the “Amendment No. 1”), dated as of May 9, 2011, among the Partnership, the General Partner and the Trading Advisor, to reduce the monthly management fee rate payable to the Trading Advisor.  Terms used and not otherwise defined herein have the meanings ascribed to such terms in the Management Agreement.

 

WHEREAS, all provisions contained in the Management Agreement remain in full force and effect and are modified only to the extent necessary to provide for the amendments set forth below.

 

NOW, THEREFORE, the parties hereto hereby amend the Management Agreement as follows:

 

1.           The monthly management fee rate referred to in clause (a)(i) of the Section entitled “Fees” in the Management Agreement, which was previously reduced in Amendment No. 1 to a monthly management fee rate equal to 1/12 of 2.00% (a 2.00% annual rate), is hereby reduced to a monthly management fee rate equal to 1/12 of 1.00% (a 1.00% annual rate).

 

2.           The foregoing amendment shall take effect as of the 1st day of December, 2013.

 

3.           This Amendment No. 2 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.

 

4.           This Amendment No. 2 shall be governed and construed in accordance with the laws of the State of New York.

  

  

  

 

IN WITNESS WHEREOF, this Amendment to the Management Agreement has been executed for and on behalf of the undersigned as of the 6th day of November, 2013.

 

	
  

	
MORGAN STANLEY SMITH BARNEY SPECTRUM SELECT L.P.

 

	
  

	
By:  Ceres Managed Futures LLC,

 

	
  

	
General Partner

 

	
  

	
By:

	
_/s/ Alper Daglioglu_______

 

	
  

	
Name:

	
Alper Daglioglu

 

	
  

	
Title:

	
President

 

	
  

	
CERES MANAGED FUTURES LLC

 

	
  

	
By:

	
_/s/ Alper Daglioglu_______

 

	
  

	
Name:

	
Alper Daglioglu

 

	
  

	
Title:

	
President

 

	
  

	
NORTHFIELD TRADING L.P.

 

	
  

	
By:

	
_/s/ Douglas Bry__________

 

	
  

	
Name:

	
Douglas Bry

 

	
  

	
Title:

	
PresidentExhibit 10.14 Summary of Board Compensation

EXHIBIT 10.14
SUMMARY OF BOARD COMPENSATION FOR FISCAL 2014
Non-employee directors of the Company receive compensation for their services to the Board of Directors and related committees as follows:
	
				
	Amount
	 
	Description

	100,000
	

	 
	Annual retainer to Chairman, disbursed in five equal payments for each regularly scheduled Board meeting.

	 
	 
	 

	30,000
	

	 
	Annual Board retainer other than to Chairman, disbursed in five equal payments for each regularly scheduled Board meeting.

	 
	 
	 

	10,000
	

	 
	Additional annual retainer to audit committee chairman, disbursed in same manner as Board member annual retainer.

	 
	 
	 

	5,000
	

	 
	Additional annual retainer to committee chairman other than audit committee chairman, disbursed in same manner as Board member annual retainer.

	 
	 
	 

	3,000
	

	 
	Fee for each Board meeting attended in person.

	 
	 
	 

	1,250
	

	 
	Fee for each Board meeting attended telephonically and for each committee meeting attended in person or telephonically.

All directors are reimbursed for expenses incurred in attending meetings of the Board of Directors.1 Gary H. Schoenfeld, who is the President and Chief Executive Officer and a director of the Company, and Josh Olshansky, and T. Neale Attenborough, who are directors, are not paid any fees or additional remuneration for his services as a member of the Board of Directors.
Each non-employee director continuing in service after the annual meeting of shareholder receives an automatic annual award of $85,000 to be delivered solely in the form of Restricted Stock Units (“RSUs”), or in a combination of RSUs and cash under the circumstances described below. Each RSU is granted under the Company’s 2005 Performance Incentive Plan and represents the right to receive one share of Company common stock following the date the director ceases to be a member of the Board of Directors. The number of RSUs subject to a continuing non-employee director’s annual award will be determined by dividing the sum of $85,000 by the closing price of a share the Company’s common stock on the date of grant of the award, which is expected to be on or about the date of the annual meeting of shareholders. In no event, however, will any non-employee director’s RSU award cover more than 25,000 units in any single fiscal year. To the extent that the number of units subject to a director’s annual RSU award would otherwise exceed 25,000 units under the above formula, the Company will supplement the RSU award with a cash payment to the director in the amount necessary to achieve the $85,000 value target. Consistent with the timing for payment of the RSUs, payment of any supplemental cash award will be deferred until after the date the director ceases to be a member of the Board of Directors. The RSUs and, if applicable, the right to receive any supplemental cash award, vest on the first anniversary of the grant date (or if earlier, the date of the regularly scheduled annual meeting of shareholders that occurs in the year in which such vesting date would otherwise fall). The RSUs and, if applicable, the right to receive any supplemental cash award, vest on an accelerated basis in connection with a change in control of the Company, unless otherwise provided by the Board of Directors in circumstances where the Board has made a provision for the assumption or other continuation of the awards. In addition, if a non-employee director’s service terminates by reason of the director’s death, disability or voluntary retirement, any unvested RSUs (and any supplemental cash awards) will then vest on a pro rata basis, proportionate to the part of the year during which the non-employee director served, with the remainder of the RSUs (and any supplemental cash awards) to be forfeited unless otherwise determined by the Board of Directors.
 
 
1 To the extent any expense reimbursements provided for in this Summary of Board Compensation are taxable to a director and provide for a deferral of compensation within the meaning of Section 409A of the Internal Revenue Code, the director shall complete all steps required for reimbursement so as to facilitate payment, and any such reimbursements shall be paid to the director on or before December 31 of the calendar year following the calendar year in which the expense was incurred. Such reimbursements shall not be subject to liquidation or exchange for other benefits, and the expenses eligible for reimbursement in one calendar year shall not affect the expenses eligible for reimbursement in any other calendar year.

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