Document:

exv10w2

Exhibit 10.2

AGENCY AGREEMENT

SMITH BARNEY AAA ENERGY FUND L.P.

(A NEW YORK LIMITED PARTNERSHIP)

UNITS OF LIMITED PARTNERSHIP INTEREST

February 12, 1998

Smith Barney Inc.

1345 Avenue of the Americas

New York, New York 10105

          Re: Smith Barney AAA Energy Fund L.P. 

Gentlemen:

          Smith Barney Futures Management Inc., a Delaware corporation (the “General Partner”), has
caused Smith Barney AAA Energy Futures Fund L.P. (the “Partnership”) to be organized as a limited
partnership under the New York Revised Uniform Limited Partnership Act, as amended and in effect on
the date hereof (the “Partnership Act”) for the purpose of speculative trading in commodity
interests including futures contracts, options, spot, and forward contracts. The General Partner
desires to raise a minimum of $5,000,000 in capital for the Partnership by the sale of units of
limited partnership interest therein (the “Units”) to certain qualified investors pursuant to Rule
506 of Regulation D (“Reg. D”) under section 4(2) of the Securities Act of 1933, as amended (the
“Securities Act”). The General Partner, the Partnership, the business of the Partnership and the
Units are described in a Private Placement Offering Memorandum and Disclosure Document dated
February 12, 1998, prepared by the General Partner. As used in this Agreement (the “Agency
Agreement”), “Memorandum” refers to that Private Placement Offering Memorandum and Disclosure
Document, including the appendices thereto, unless such memorandum or appendices have been
supplemented or amended, in which case the term shall refer, from and after the time the supplement
or amendment is delivered to you, to the memorandum and appendices as so amended and supplemented.
The commodity trading advisor to the Partnership initially will be AAA Capital Management, Inc.
(the “Advisor”).

 

          The subscribers for Units will be required to execute the Subscription Agreement, a copy of
which is attached as an
appendix to the Memorandum, and to tender or cause to be tendered for each Unit subscribed
cash in the amount of $1,000 per Unit prior to the commencement of trading operations and Net Asset
Value per Unit thereafter. Subscribers for Units whose Subscription Agreements are accepted by the
General Partner will become limited partners of the Partnership (the “Limited Partners”) upon the
execution by the General Partner as attorney-in-fact for each such subscriber of a Limited
Partnership Agreement, a copy of which is attached as an appendix to the Memorandum (the
“Partnership Agreement”), and at the time such subscribers’ names are entered in the books and
records of the Partnership.

          Section 1. Appointment of Agent.

          On the basis of the representations, warranties and covenants contained in this Agency
Agreement, but subject to the terms and conditions set forth in it, you are hereby appointed the
exclusive agent of the Partnership during the Offering Period specified in this Section, for the
purpose of finding subscribers for the Units for the account and risk of the Partnership through a
private offering. The Initial Offering Period will commence on the date of the Memorandum and
terminate 90 days thereafter subject to earlier termination or extension of up to an additional 60
days by the General Partner. During the Initial Offering Period Units will be sold at $1,000 each.
If the offering is commenced and subscriptions for at least 5,000 of the Units are not received by
the termination of the Initial Offering Period, all funds received by the termination of the
Initial Offering Period shall be returned in full together with any interest thereon and your
agency and this Agency Agreement will terminate without obligation on your part or on the part of
the General Partner, except as provided in Sections 5 and 6 hereof and except that the
indemnification and contribution provisions of Section 9 hereof shall continue after such
termination of this Agency Agreement. If acceptable subscriptions for 5,000 Units are received by
the termination of the Initial Offering Period, a closing will be held, funds will be transferred
to the Partnership and trading will commence. Thereafter, the Offering Period will continue until
the General Partner terminates it or until up to 60,000 Units have been subscribed. Units or
partial Units sold after the Initial Offering Period will be sold at Net Asset Value per Unit as of

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the last day of each month, provided that the General Partner may determine to offer no Units in a
particular month. Subject to the performance by the General Partner of all of its obligations to
be performed under this Agency Agreement and to
the completeness and accuracy of all material representations and warranties of the General
Partner contained in this Agency Agreement, you hereby accept such agency and agree on the terms
and conditions set forth in this Agency Agreement to use your best efforts during the Offering
Period to find subscribers for the Units. Your agency under this Agency Agreement, which is
coupled with an interest and, therefore, is not terminable by the General Partner without your
permission, will continue until the termination of the Offering Period.

          Section 2. Representations and Warranties of the Partnership and the General Partner.

               (a) The Partnership and the General Partner jointly and severally represent and warrant to
you, for your benefit, and for the benefit of the purchasers of the Units that:

               (i) They will deliver to you such number of copies of the Memorandum as you may reasonably
request, regardless of whether the Units are offered solely to “accredited investors” as defined in
Rule 501(a) of Reg. D. They will not make any amendment or supplement to the Memorandum until they
have given you a copy thereof and reasonable notice of the same, and no such amendment or
supplement will be made if you reasonably object thereto.

               (ii) The Memorandum complies with Rule 502(b)(2) of Reg. D and the information to be made
available or furnished to each purchaser of a Unit pursuant to Section 5(f) hereof or otherwise
will be sufficient to comply with Rule 502(b)(2)(iv) and 502(b)(2)(v) of Reg. D.

               (iii) The Memorandum will not contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

               (iv) All action required under the Partnership Agreement or otherwise to be taken by the
General Partner before the subscription for and sale of the Units to subscribers therefor has been
taken or before the Closing or Monthly Closing

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dates, as defined in Section 4 hereof, will have
been taken, and upon (i) payment of the consideration therefor specified in the Subscription
Agreement, (ii) acceptance by the General Partner of each subscriber acceptable to the General
Partner, and (iii) the payment of any required filing fee, the subscribers will become Limited
Partners of the Partnership entitled to all the
rights of Limited Partners under the Partnership Agreement and the Partnership Act. The
Units, when sold and paid for as contemplated by the Memorandum, will represent validly authorized
and duly issued limited partnership interests in the Partnership and will conform to all statements
relating thereto contained in the Memorandum, including the Partnership Agreement.

               (v) The Partnership is a limited partnership duly and validly organized pursuant to the
Partnership Agreement and the laws of New York, and is validly existing under, and subject to, the
laws of New York with full power and authority to conduct the business in which it proposes to
engage as described in the Memorandum. A limited partner will have no liability in excess of his
capital contribution and his share of Partnership assets and undistributed profits except as set
forth in Section 7(a)(v) therein and in the Partnership Act.

               (vi) There is no action, suit, litigation or proceeding before or by any court or governmental
agency, federal, state or local, pending or threatened against or affecting or involving the
property or business of the General Partner, or the business of the Partnership, that would
materially and adversely affect the condition (financial or otherwise), business or prospects of
the General Partner or the Partnership.

               (vii) Neither the Partnership, the General Partner, nor any person directly or indirectly
affiliated with either of them has, either directly or through an agent, sold or offered for sale
or solicited offers to subscribe for or buy, or approached potential investors for or otherwise
negotiated in respect of, the Units except for the activities of the General Partner in approaching
potential investors undertaken in cooperation with you after advance consultation with you; and
neither the Partnership, the General Partner nor any person directly or indirectly affiliated with
either of them has, either directly or through an agent, participated in the organization or
management of any partnership or other entity,

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or has engaged in any other activity, in a manner or
under circumstances that would jeopardize the status of the offering of the Units as an exempted
transaction under the Securities Act or under the laws of any state in which it is represented by
the General Partner that the offering may be made.

               (viii) This Agency Agreement and the Partnership Agreement have been duly and validly
authorized, executed and
delivered by and on behalf of the General Partner and constitute valid and binding agreements
of the General Partner enforceable in accordance with their terms. This Agency Agreement and the
Subscription Agreements have been or will be duly and validly authorized, executed and delivered by
and on behalf of the Partnership and constitute or will constitute valid and binding agreements of
the Partnership enforceable in accordance with their terms.

               (ix) The execution and delivery of this Agency Agreement, the Subscription Agreements and the
Partnership Agreement, and the consummation of the transactions contemplated in this Agency
Agreement and in the Memorandum, do not conflict with and will not constitute a breach of, or
default under, the articles of incorporation or by-laws of the General Partner or any agreement or
instrument by which it is bound by any order, rule or regulation applicable to it of any court or
any governmental body or administrative agency having jurisdiction over it.

               (x) A separate escrow account will be opened at European American Bank, New York, New York
(the “Escrow Agent”) and maintained for all funds received from subscribers for Units. All
payments received from persons desiring to purchase Units will be deposited in such account and
held in accordance with the terms of the Escrow Agreement entered into with the Escrow Agent.

          Section 3. Your Representations and Warranties.

          You represent and warrant to and for the benefit of the Partnership and the General Partner
that:

               (a) You will not offer or sell the Units by any form of general solicitation or general
advertising within the meaning of Rule 502(c) of Reg. D.

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               (b) Where required by applicable state law or regulation, you will initiate contact with a
prospective offeree only after determining that the suitability and sophistication standards
described in the Memorandum are likely to be satisfied with respect to such prospective offeree
and, where applicable, only after having obtained an executed Purchaser Representative
Questionnaire.

               (c) You will not offer the Units for sale to, or solicit any offers to subscribe for the Units
from, any offeree
who resides in a state whose securities or “blue sky” laws require offerees to meet specified
qualifications unless such offeree meets such qualifications or which laws require offerees to
receive disclosure documents until you have delivered (or directed the General Partner to deliver)
the Memorandum, the Partnership Agreement, and any other agreement or document that may be attached
as an exhibit or appendix referred to in and distributed with the Memorandum or any other
information provided by the General Partner which is required to be delivered to purchasers
pursuant to Rule 502(b)(2) of Reg. D to such offeree, and within a reasonable time prior to the
Closing you shall deliver (or cause the General Partner to deliver) all such documents to all
persons who are to purchase the Units, to the extent they have not theretofore received such
documents. In connection with the offering, you will not represent to any person acquiring Units
any material facts relating to the offering unless such facts are contained in the Memorandum or
have been provided to you in writing by the General Partner.

               (d) You will make offers to sell Units to, or solicit offers to subscribe for Units from,
persons in only those states or other jurisdictions where the General Partner has either qualified
or registered the offering for sale or determined that an exemption from such qualification or
registration is available under the applicable securities or “blue sky” statutes of such states or
other jurisdictions. You will not sell Units to any person unless, immediately before making such
sales, you reasonably believe such person (i) would be able to represent that such person is
acquiring the Units for such person’s own account as principal for investment and not with a view
to resale or distribution, (ii) qualifies as an accredited investor under Rule 501 of Reg. D and
(iii) meets such other suitability standards as are specified in the Memorandum under the caption
“Who Should Invest” and the other conditions contained in the Subscription Agreement.

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               (e) You will maintain a record of all information obtained by you indicating that subscribers
for Units meet the suitability standards referred to in Section 3(d) hereof. The General Partner
will approve or reject the subscriptions and notify you of the same.

               (f) You are a member in good standing of the National Association of Securities Dealers, Inc.

          Section 4. Closings.

          If subscriptions for at least 5,000 Units have been received and accepted by the General
Partner at or before the termination of the Initial Offering Period and the conditions described in
Sections 7 and 8 hereof have been satisfied or waived, a closing (a “Closing”) will be held at such
place as is agreed upon between you and the General Partner. Thereafter closings may be held as of
the last business day of each month (“Monthly Closings”).

          Section 5. Covenants of the Partnership and the General Partner.

          The Partnership and the General Partner covenant with you that:

               (a) If any event occurs before Closing or a Monthly Closing and relates to or affects the
business or condition (financial or other) of the General Partner or the Partnership which makes it
necessary to amend or supplement the Memorandum in order that the Memorandum will not contain an
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances existing at the time it is
delivered to a subscriber, the General Partner forthwith will prepare and furnish to you a
reasonable number of copies of the amendment or amendments of, or supplement or supplements to, the
Memorandum (in form and substance satisfactory to you and your counsel) that will so amend or
supplement the Memorandum.

               (b) They will qualify or register the Units for offering and sale under, or establish the
exemption of the offering and sale of the Units from qualification or registration under, the
applicable securities or “blue sky” laws

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of the jurisdictions listed in Appendix I hereto and use
their best efforts to qualify in such other jurisdictions as you may reasonably request in writing;
provided, however, that neither of them will be obligated to qualify as a dealer in
securities in any jurisdiction in which it is not so qualified. The General Partner will promptly
notify you in writing of such qualification, registration or exemption in each such jurisdiction
and of any modification, rescission or withdrawal of any such qualification, registration or
exemption. The General Partner will not consummate a sale of a Unit in any jurisdiction in which
such sale may not be lawfully made and will not consummate any sale otherwise than in accordance
with the restrictions and limitations, if any, set forth or referred to in such survey.

               (c) Neither they nor any of their affiliates will, either directly or through an agent (other
than you), sell or offer for sale, or solicit offers to subscribe for or buy or approach potential
offerees for, or otherwise negotiate in respect of, the Units except for the activities of the
General Partner in approaching potential offerees undertaken in cooperation with you after advance
consultation with you.

               (d) The Partnership will apply the proceeds from the sale of the Units for the purposes set
forth under “Use of Proceeds” in the Memorandum in substantially the amounts and at the times
indicated thereunder.

               (e) Neither they nor any person directly or indirectly affiliated with either of them is or
will be engaged, as a general partner, sponsor or otherwise (i) in the organization or management
of any partnership, fund or other entity, in a manner or under circumstances which, in the opinion
of their counsel, will jeopardize the status of the offering of the Units as an exempted
transaction under the Securities Act or under the laws of any state in which it is represented by
them that the offering may be made, or (ii) in any offering of securities which, when integrated
with the offering of the Units in the manner prescribed by Rule 501(a) of Reg. D and SEC Release
No. 33-4552 (Nov. 9, 1962) will jeopardize the status of the offering of the Units as an exempted
transaction under Reg. D.

               (f) At all times during the Offering Period and before the Closing and each Monthly Closing,
they will (i) make

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available to each potential purchaser and to the purchaser’s representative, if
any, such information (in addition to that contained in the Memorandum) concerning themselves, the
offering and any other relevant matters, as they possess or can acquire without unreasonable effort
or expense, and (ii) provide to each potential purchaser and to any purchaser representatives the
opportunity to ask questions of, and receive answers from, them concerning the terms and conditions
of the offering and the business of the Partnership and to obtain any other additional information,
to the extent they possess the same or can acquire it without unreasonable effort or expense,
necessary to verify the accuracy of the information furnished to the potential purchaser or any
purchaser representatives.

               (g) Before the Closing and each Monthly Closing, they will provide to each purchaser the
information required to be delivered by Rule 502(b) (2)(iii) and 502(b) (iv).

               (h) Within 15 days of receiving from you copies of information indicating that subscribers
meet the suitability standards, the General Partner will approve or reject the subscriptions and
notify you of the same.

               (i) The General Partner shall file five (5) copies of a notice on Form D with the Securities
and Exchange Commission no later than fifteen (15) days after the first sale of a Unit pursuant to
Rule 503 under Reg. D. The General Partner shall comply with any filing requirement imposed by the
laws of any state or jurisdiction in which sales are made. The General Partner shall furnish you
and your counsel with copies of all filings made on Form D pursuant hereto.

          Section 6. Payment of Expenses, Fees, and Interest Income.

          You will initially pay all expenses of the Partnership’s organization and the offering of
Units. Such expenses will include, but not be limited to, fees and disbursements of counsel for the
Partnership, including reasonable fees and disbursements of counsel incurred in connection with the
qualification or registration of the Units under, or establishment of the exemption of the offering
from registration under, the securities or “blue sky” laws of the jurisdictions designated by you;
expenses incurred in the preparation, printing or photocopying and delivery to you of

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such number
of copies of the Partnership Agreement and each amendment thereto, the Subscription Agreement and
the Memorandum and each amendment or supplement thereto as are required to be prepared and
delivered to you under this Agency Agreement; and the expenses incident to the execution and filing
and/or recordation of the Certificate of Limited Partnership and any Amended Certificate.

          The Partnership will reimburse you for such expenses as follows. All of the Partnership’s
funds will be deposited in cash in a commodity brokerage account with you. You will deposit the
funds in segregated bank accounts as required by the Commodity Futures Trading Commission
regulations. Such accounts do not earn interest. You will pay monthly interest to the Partnership
on 80% of the average daily equity maintained in cash in the Partnership’s brokerage accounts
during each month
at a 30-day Treasury bill rate. Interest payments to the Partnership will first be used to
reimburse you for offering and organizational expenses plus interest at the prime rate quoted by
The Chase Manhattan Bank. Thereafter, all interest will be retained by the Partnership. The
Partnership will pay its ongoing legal, accounting, filing, reporting and dataprocessing fees which
are estimated at approximately $50,000 annually. In consideration for your entering into this
Agreement, you will act as the Partnership’s commodity broker/dealer as described in the Memorandum
and be compensated as described in the Memorandum pursuant to a Customer Agreement of even date
hereunder.

          Section 7. Conditions of Your Obligations.

          Your obligations under this Agency Agreement are subject to the accuracy of and compliance
with the representations and warranties of the Partnership, the General Partner and the Advisor
made in Section 2 hereof, to the performance by the Partnership and the General Partner of their
obligations under this Agency Agreement and to the following additional conditions:

               (a) At the Closing, you will have received the favorable opinion of Willkie Farr & Gallagher,
counsel to the General Partner, dated the Closing date and in form and substance satisfactory to
you and your counsel, to the effect that:

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               (i) all action required to be taken by the Partnership and the General Partner before the
subscription for and sale of the Units to qualified subscribers therefor has been taken or, before
the Closing date, will have been taken, and upon (A) payment of the consideration therefor
specified in the Subscription Agreement and receipt of all related executed documents, (B) the
execution of the Partnership Agreement by the General Partner as attorney-in-fact for each of the
Limited Partners, (C) the filing of the Certificate in the appropriate jurisdictions, and (D) the
payment of any required filing fee, the subscribers will become Limited Partners of the Partnership
entitled to all the rights of Limited Partners under the Partnership Agreement, and the Units will
conform to all statements relating thereto contained in the Memorandum, including the Partnership
Agreement attached as an appendix thereto;

               (ii) the Partnership (A) is a limited partnership duly and validly organized pursuant to the
Partnership Agreement
and the laws of New York and (B) is validly existing under and subject to the laws of New York
with full power and authority to conduct the business in which it proposes to engage as described
in the Memorandum;

               (iii) the information contained in the Memorandum (excluding the financial statements as to
which such counsel need express no opinion) complies in all material respects with the requirements
of Rule 502(b)(2) and (d)(2) of Reg. D; to the best of such counsel’s knowledge, the General
Partner has complied with the requirements of Rule 506 under Reg. D and on the basis of its
examination and participation in conferences in connection with the preparation of the Memorandum,
nothing has come to such counsel’s attention that would lead such counsel to believe that, at any
time before or at the Closing, the Memorandum (except for the financial statements as to which such
counsel need express no opinion) contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading;

               (iv) the offer and sale of the Units in the manner contemplated by the Memorandum, this Agency
Agreement and the Subscription Agreements are exempt from registration under the Securities Act;

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               (v) under the Partnership Act, so long as he does not take part in the management or control
of the business of the Partnership, the liability of each subscriber for Units pursuant to the
Partnership Agreement to make payments to the Partnership or on behalf of the Partnership will not
exceed his obligation to make contributions to the Partnership, and his share of the Partnership’s
assets and undistributed profits (subject to his obligation to repay any funds wrongfully returned
or distributed to him); and

               (vi) to the best of such counsel’s knowledge, information and belief, based upon reasonable
investigation, there is no action, suit, litigation, or proceeding before or by any court or
governmental agency, federal, state or local, pending or threatened against, or affecting or
involving the property or business of the General Partner or the business of the Partnership, that
would materially and adversely affect the condition (financial or other), business or prospects of
the General Partner or the Partnership.

               (b) At the Closing, you will have received a tax opinion of Willkie Farr & Gallagher, dated
the Closing date and confirming its opinion set forth under “Income Tax Aspects” in the Memorandum.

               (c) At the Closing you will receive a certificate, dated the Closing date and signed by the
president of the General Partner, to the effect that (i) there has not been, since the respective
dates as of which information is given in the Memorandum, any material adverse change in the
condition of the General Partner, financial or other, whether or not arising in the ordinary course
of business, (ii) the other representations and warranties contained in Section 2 hereof are true
and correct with the same force and effect as though expressly made at and as of the Closing, (iii)
the General Partner has performed and complied in all material respects with all agreements,
covenants and conditions required to be performed and complied with by it before or at such
Closing, and (iv) neither the General Partner nor any of its affiliates or agents has, directly or
indirectly, paid or awarded any commission or other compensation to any person engaged to render
advice to a potential subscriber for Units as an inducement to him to advise the subscriber to
purchase any Units.

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               (d) If any of the conditions specified in this Section 7 have not been fulfilled when and as
required by this Agency Agreement to be fulfilled, you may cancel this Agency Agreement and all
your obligations under it by notifying the General Partner of such cancellation in writing or by
telegram at any time at or before any Closing and any such cancellation will be without liability
or obligation of any party to any other party except as otherwise provided in Section 5, Section 6
and Section 9 hereof.

          Section 8. Conditions of the Obligations of the Partnership and the General Partner.

          The obligations of the Partnership and the General Partner under this Agency Agreement are
subject to the performance by you of your obligations under the same and to the further condition
that, at the Closing, the Partnership and the General Partner will have received your certificate
stating that you have offered the Units for sale, or solicited offers to subscribe for or buy
Units, or otherwise negotiated with any person with respect to the Units, only in such manner and
under such circumstances as are in compliance with the securities or “blue sky” laws of the
jurisdictions designated by you in accordance with Section 5(b) hereof.

          Section 9. Indemnification and Contribution.

          You will indemnify and hold harmless the Partnership and the General Partner and their
officers, directors and employees, against any and all loss, liability, claim, damage, expense,
judgment or amount paid in settlement (including reasonable attorneys’ fees) with respect to
statements or omissions in the Memorandum made with respect to you or your obligations under this
Agency Agreement made in reliance upon and in conformity with information furnished to the General
Partner by you expressly for use in the Memorandum.

          Section 10. Representations, Warranties and Agreements to Survive Delivery.

          All representations, warranties and agreements contained in this Agency Agreement or contained
in certificates or opinions delivered pursuant to this Agency Agreement will remain operative and
in full force and effect, regardless of any investigation made by or on behalf of you or by or on
behalf of

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the General Partner and will survive the Closing and Monthly Closings.

          Section 11. Notices and Authority to Act.

          All communications herein shall be in writing
and, if sent to you, will be mailed, delivered or telegraphed and confirmed to you at:

Smith Barney Inc.

1345 Avenue of the Americas

New York, New York 10105

Attention: David J. Vogel

or if sent to the General Partner, will be mailed, delivered or telegraphed and confirmed to the
General Partner at:

Smith Barney Futures Management Inc.

390 Greenwich Street — 1st floor

New York, New York 10013

Attention: David J. Vogel

          Section 12. Parties.

          This Agency Agreement will inure to the benefit of and be binding upon you, the Partnership
and the General Partner and your and their respective successors, heirs and representatives. This
Agency Agreement and its conditions and provisions are intended to be and are for the sole and
exclusive benefit of the parties to it and their respective successors, heirs and representatives,
and not for the benefit of any other person, firm or corporation unless expressly stated otherwise.

          Section 13. Governing Law.

          This Agency Agreement shall be governed by and construed under the laws of the State of New
York.

          Section 14. Waiver.

          Any party to this Agency Agreement may waive compliance by the other with any of the terms,
provisions and conditions set forth in this Agency Agreement.

          Section 15. Entire Agreement.

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          This Agency Agreement contains the entire agreement between the parties to it, and is intended
to supersede any and all prior agreements between those parties, relating to the same subject
matter.

          If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us a counterpart hereof, whereupon this instrument, along with all counterparts, will
become a binding agreement among you, the
Partnership and the General Partner, in accordance with its terms.

	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 	 	SMITH BARNEY FUTURES MANAGEMENT INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David J. Vogel
 

David J. Vogel 

President and Director
	 	 
	 
	 	 	 	 	 	 
	 	 	SMITH BARNEY AAA ENERGY FUND L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Smith Barney Futures Management Inc.	 	 
	 	 	(General Partner)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David J. Vogel	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	David J. Vogel 

President and Director	 	 

	 	 	 	 	 
	Confirmed, accepted and agreed
to as of the date first above
written.	 	 
	 
	 	 	 	 
	SMITH BARNEY INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ David J. Vogel
 

	 	 

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Exhibit 10.4

ESCROW AGREEMENT

			
	TO:	 	European American Bank

335 Madison Avenue

New York, New York 10017

Attention: Financial Institutions North America

          The following property is to be deposited with you as Escrow Agent in one or more Money Market
Accounts which shall be entitled “Smith Barney AAA Energy Fund L. P.” (Escrow Accounts):

          All proceeds of subscriptions (the “Escrow Property”) for Units of Limited Partnership
Interest (“Units”) in Smith Barney AAA Energy Fund L. P., a New York limited partnership (the
“Partnership”), received by Smith Barney Inc. (“SB”), Selling Agent for the Partnership, or
additional selling agents appointed by SB. SB shall deliver to all such prospective subscribers
interim receipts for the amount of the funds deposited in this escrow.

          As Escrow Agent, you are hereby directed to hold, deal with and dispose of the Escrow Property
and any other property at any time held by you hereunder subject to the terms and conditions
hereinafter set forth:

          1. During the Initial Offering Period (as defined in Paragraph 6 below), all Escrow Property
(up to the collected balances in the account or accounts and as the balances become collected in
the account or accounts) deposited with the Escrow Agent and any interest earned thereon (which
shall also be part of the Escrow Property) shall be paid over and delivered to the Partnership as
directed by written notice by Smith Barney Futures Management Inc., general partner of the
Partnership (the “General Partner”), as soon as practicable after receipt by the Escrow Agent of
such written notice in accordance with Paragraph 2 below. In the event the General Partner has
directed you to operate two bank money market accounts for the Partnership, such request shall
specify the account from

 

which the Escrow Property should be paid over and delivered to the
Partnership.

          2. If subscriptions for Units in the aggregate value of $5,000,000 have been received during
the Initial Offering Period (as defined in Paragraph 6 below), as evidenced by an affidavit of the
General Partner attesting to said fact, the Escrow Property shall be paid over and delivered to the
Partnership as soon as practicable after the receipt of the written request of the General Partner.
Any interest earned on the Escrow Property (which shall also be part of the Escrow Property) shall
be returned by the General Partner directly to each subscriber in proportion to their respective
subscriptions and to the period their respective subscriptions were held in escrow. If
subscriptions for Units in the aggregate value of $5,000,000 have not been received during the
Initial Offering Period, as evidenced by an affidavit of the General Partner attesting to said
fact, the Escrow Property will be paid over and delivered by the Escrow Agent directly to
subscribers as soon as practicable after receipt of written directions from the General Partner.

          3. Prior to delivery of the Escrow Property to the Partnership as described in Paragraph 2
above, the Partnership shall have no title to or interest in the funds on deposit, and such funds
shall under no circumstances be subject to the payment or satisfaction of the liabilities or
indebtedness of the Partnership.

          4. The Escrow Agent shall cause all funds deposited with it pursuant to this Escrow Agreement
to be maintained and invested as the General Partner shall from time to time direct by written
instructions delivered to the Escrow Agent, in an interest-bearing money market account or
accounts, which can be readily liquidated on twenty-four hours notice, in an amount equal to the
collected balances in the account or accounts, as permitted under the Commission’s Rule 240.15c2-4.

          5. Within 15 days of receipt of a subscription agreement, the General Partner may notify the
Escrow Agent that a subscription agreement of a subscriber has not been accepted, and the General
Partner may direct the Escrow Agent by written instruction to return any funds held in the Escrow
Account for the benefit of such subscriber directly

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to such subscriber, together with such
subscriber’s proportionate share of any interest earned on the Escrow Property during the period
such funds were held in escrow.

          6. The Initial Offering Period for the Units shall mean a period of 90 days commencing on the
date of the Partnership’s Private Placement Offering Memorandum and Disclosure Document unless the
General Partner terminates the offering at an earlier date or extends the Initial Offering Period
for up to an additional 60 days in which case the Initial Offering Period shall mean such period as
so terminated or extended. The General Partner shall provide the Escrow Agent with prompt written
notice of any such termination or extension.

          7. Any of the persons whose names and signatures appear on Schedule 1 annexed hereto are
authorized by the General Partner to deliver any instruction or notice to the Escrow Agent required
or permitted by this Escrow Agreement.

          8. (a) As Escrow Agent hereunder, you shall have no duties or responsibilities except those
expressly set forth herein. The Escrow Agent shall act hereunder merely as a depository and in a
ministerial capacity. The Escrow Agent shall not be deemed to be a trustee for any person. In the
event checks are received which represent proceeds of subscriptions, Escrow Agent will deposit the
checks for collection, but shall be under no duty to enforce the collection of any check. The
Escrow Agent shall not be responsible for the form, terms, validity or negotiability of the checks,
the validity of any signature on any check, or the authority of any person to sign or issue any
check.

               (b) The Escrow Agent may consult with counsel and shall be fully protected with respect to any
action taken or omitted by it in good faith on advice of counsel and you shall have no liability
hereunder except for your bad faith or negligence. You shall have no responsibility as to the
validity or value of the Escrow Property and you may rely on any certificate, statement, request,
consent, agreement or other instrument which you believe to be genuine and to have been signed or
presented by a proper person or persons. You shall not be bound by any modification of this Escrow
Agreement unless in writing and signed by all parties hereto and actually received by you and, if
your duties as Escrow Agent hereunder are affected, unless you shall have given

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prior written
consent thereto. In the event that you shall be uncertain as to your duties or rights hereunder or
shall receive instructions from any of the undersigned with respect to the Escrow Property which,
in your opinion, are in conflict with any of the provisions of this Escrow Agreement, you shall be
entitled to refrain from taking any
action other than to retain the Escrow Property until you shall be directed otherwise in
writing by the unanimous consent of the parties hereto or by final order of a court of competent
jurisdiction.

               (c) The Escrow Agent may, at its own discretion, refuse to accept any deposits lacking the
required documentation or containing discrepancies.

               (d) In any event when the Escrow Agent receives disbursement instructions, it is expressly
understood and agreed that the Escrow Agent shall not be required to make any such disbursement
until such amount is, to the Escrow Agent’s satisfaction, available in cleared funds. Further, in
no event shall the aggregate amount of payments made by the Escrow Agent exceed the amount of
Escrow Property.

          9. Any notice which the Escrow Agent is required or desires to give hereunder to any of the
undersigned shall be in writing and shall be deemed to have been duly given on the date of service
if served personally on the party to whom notice is to be given, on the following day if given by
telegram, or on the third day after mailing if mailed to the party to whom notice is to be given by
first class mail, registered or certified with return receipt requested, postage prepaid, and
properly addressed as follows:

			
	     To:	 	Smith Barney AAA Energy Fund L. P.

and Smith Barney Futures Management Inc.

390 Greenwich Street — 1st floor

New York, New York 10013

Attention: Mr. David J. Vogel

			
	     To:	 	Smith Barney Inc.

390 Greenwich Street — 1st floor

New York, New York 10013

Attention: Mr. David J. Vogel

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Notices to the Escrow Agent shall be in writing and shall not be deemed to be given until actually
received by the Escrow Agent. Whenever under the terms hereof the time for giving a notice or
performing an act falls upon a Saturday, Sunday or bank holiday, such time shall be extended to the
Escrow Agent’s next business day.

          10. If any property subject hereto is at any time attached, garnished or levied upon, shall
become or be the subject of any court order, or in case the payment, assignment, transfer,
conveyance or delivery of the Escrow Property shall be stayed or enjoined by any court order, or in
case any order, judgment or decree shall be made or entered by any court affecting such property,
or any part thereof, then in any of such events the Escrow Agent is authorized, in its sole
discretion, to rely upon and comply with any such order, writ, judgment or decree, which it is
advised by legal counsel of its own choosing, is binding upon it, and if it complies with any such
order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to any
other person, firm, or corporation for any losses, claims, costs, payments or expenses by reason of
such compliance, even though such order, writ, judgment or decree may be subsequently reversed,
modified, annulled, set aside or vacated.

          11. The Escrow Agent may resign by giving ten (10) days’ written notice to the undersigned,
and thereafter shall deliver the Escrow Property to a successor escrow agent acceptable to all
parties hereto, which acceptance shall be evidenced by the joint written and signed order of the
undersigned. If no such order is received by the Escrow Agent by such resignation date, the
obligations of the Escrow Agent shall nevertheless cease and terminate and the Escrow Agent is
unconditionally and irrevocably authorized and empowered to send the Escrow Property by registered
or certified mail to the respective subscribers thereof.

          12. SB shall reimburse the Escrow Agent for all out-of-pocket expenses (including, without
limitation, New York taxes and other governmental charges) incurred by you in connection with your
duties hereunder and shall indemnify you against and save you harmless against any and all claims,
liabilities, costs, payments and expenses, including fees of counsel (who may be selected by you),
for anything done or omitted by you in the performance of this Agreement,

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except as a result of
your own negligence or bad faith, and you shall have a lien on the Escrow Property for the amount
thereof. All such fees and expenses shall be paid by SB.

          13. In addition, SB agrees to pay the Escrow Agent an Escrow Agent fee of $2,500 per Escrow
Account established.

          14. In the event that any checks or other instruments deposited in the account or accounts
established to hold the Escrow Property prove uncollectible after the funds represented thereby
have been released pursuant to the Agreement, SB shall promptly reimburse the Escrow Agent therefor
upon request, and the Escrow Agent shall deliver the returned checks or other instruments to SB.

          15. Nothing in this Agreement is intended to or shall confer upon anyone other than the
parties hereto any legal or equitable right, remedy or claim. This Agreement shall be governed by,
and its provisions construed in accordance with, the laws of the State of New York, and may be
modified only in writing executed by all parties hereto.

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          16. This Agreement may be executed in one or more counterparts, but in such event each
counterpart shall constitute an original and all of such counterparts shall constitute one
Agreement.

Dated as of February 9, 1998

	 	 	 	 	 	 	 
	 	 	Parties to the Escrow	 	 
	 
	 	 	 	 	 	 
	 	 	SMITH BARNEY AAA ENERGY FUND L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Smith Barney
Futures Management Inc.,

General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ David J. Vogel        
 

	 	 
	 
	 	 	 	 	 	 
	 	 	SMITH BARNEY FUTURES MANAGEMENT INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ David J. Vogel             
 

	 	 
	 
	 	 	 	 	 	 
	 	 	SMITH BARNEY INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ David J. Vogel
 

	 	            

ACCEPTED:

EUROPEAN AMERICAN BANK

	 	 	 	 	 
	By

	 	 
 

	 	 

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SCHEDULE 1

	 	 	 	 	 
	Name	 	Title	 	Signature
	 
	 	 	 	 
	David J. Vogel

	 	President and
Director
	 	/s/ David J. Vogel
	 

	 	 	 	 
	 
	 	 	 	 
	Jack H. Lehman, III

	 	Chairman
and Director
	 	/s/ Jack H. Lehman, III
	 

	 	 	 	 
	 
	 	 	 	 
	Daniel A. Dantuono

	 	Treasurer,
Director and Chief
Financial Officer
	 	/s/ Daniel A. Dantuono
	 

	 	 	 	 

- 8 -

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