Document:

Management Agreement between Citigroup Managed Futures LLC and Aspect Capital

 Exhibit 10.8 
  
 MANAGEMENT AGREEMENT 
  
 AGREEMENT made as of the 23rd day of October, 2003 among CITIGROUP MANAGED FUTURES LLC, a Delaware limited liability company (“CMF” or the
“General Partner”), CITIGROUP DIVERSIFIED FUTURES FUND L.P., a New York limited partnership (the “Partnership”) and ASPECT CAPITAL LIMITED, a corporation formed under the laws of England and Wales (the “Advisor”).

  
 W I T N E S S
E T H : 
  
 WHEREAS, CMF is the general
partner of Citigroup Diversified Futures Fund L.P., a limited partnership organized for the purpose of speculative trading of commodity interests, including futures contracts, options, swaps and forward contracts with the objective of achieving
substantial capital appreciation; and 
  
 WHEREAS, the Limited
Partnership Agreement establishing the Partnership (the “Limited Partnership Agreement”) permits CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions for the Partnership; and 

 
 WHEREAS, the Advisor is registered as a commodity trading advisor with the
Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”); and 
  
 WHEREAS, CMF is registered as a commodity pool operator with the CFTC and is a member of the NFA; and 
  
 WHEREAS, CMF, the Partnership and the Advisor wish to enter into this
Agreement in order to set forth the terms and conditions upon which the Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity trading activities during the term of this Agreement;

  
 NOW, THEREFORE, the parties agree as follows: 
  
 1. DUTIES OF THE ADVISOR. (a) For the period and on the terms and
conditions of this Agreement, the Advisor shall have sole authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the Partnership allocated
to it from time to time by the General Partner in commodity interests, including commodity futures contracts, options, swaps and forward contracts. All such trading on behalf of the Partnership shall be in accordance with the trading strategies and
trading policies set forth in the Partnership’s Prospectus and Disclosure Document to be dated on or about November 1, 2003 (the “Prospectus”), and as such trading policies may be changed from time to time upon receipt by the Advisor
of prior written notice of such change and pursuant to the trading strategy selected by CMF to be utilized by the Advisor in managing the Partnership’s assets. CMF has initially selected the Advisor’s Diversified Program (the
“Program”) to manage the Partnership’s assets allocated to it. Any open positions or other investments at the time of receipt of such notice of a change in trading policy shall not be deemed to violate the changed policy and shall be
closed or sold in the ordinary course of trading. The Advisor may not deviate from the trading policies set forth in the Prospectus without the prior written consent of the Partnership given by CMF. The Advisor makes no representation or warranty
that the trading to be directed by it for the Partnership will be profitable or will not incur losses. 

 (b) CMF acknowledges receipt of the Advisor’s Disclosure Document dated January, 2003. All trades
made by the Advisor for the account of the Partnership shall be made through such commodity broker or brokers as CMF shall direct, and the Advisor shall have no authority or responsibility for selecting or supervising any such broker in connection
with the execution, clearance or confirmation of transactions for the Partnership or for the negotiation of brokerage rates charged therefor. However, the Advisor, with the prior written permission (by either original or fax copy) of CMF, may direct
all trades in commodity futures and options to a futures commission merchant or independent floor broker it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the futures commission merchant
or independent floor broker and any give-up or floor brokerage rates and fees are approved in advance by CMF. For the avoidance of doubt, the Advisor shall have no authority or responsibility for the negotiation of brokerage rates charged by any
futures commission merchant or independent floor broker on behalf of the Partnership or CMF. All give-up or similar fees relating to the foregoing shall be paid by the Partnership after all parties have executed the relevant give-up agreements (by
either original or fax copy). 
  
 (c) The initial allocation of
the Partnership’s assets to the Advisor will be made to the Advisor’s Program. In the event the Advisor wishes to use a trading system or methodology other than or in addition to the system or methodology outlined in the description of the
Program in the Prospectus in connection with its trading for the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its intention to utilize such different trading system or methodology and
CMF consents thereto in writing. In addition, the Advisor will provide five days’ prior written notice to CMF of any change in the trading system or methodology to be utilized for the Partnership which the Advisor deems material. If the Advisor
deems such change in system or methodology or in markets traded to be material, the changed system or methodology or markets traded will not be utilized for the Partnership without the prior written consent of CMF. In addition, the Advisor will
notify CMF of any changes to the trading system or methodology that would require a change in the description of the trading strategy or methods described in the Prospectus. Further, the Advisor will provide the Partnership with a current list of
all commodity interests to be traded for the Partnership’s account and will not trade any additional commodity interests for such account without providing notice thereof to CMF and receiving CMF’s written approval, which approval shall
not be unreasonably withheld or delayed. The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the Advisor’s management together with all other matters deemed by the Advisor to be material changes
to its business not previously reported to CMF. The Advisor further agrees that it will convert foreign currency balances (not required to margin positions denominated in a foreign currency) to U.S. dollars no less frequently than monthly. U.S.
dollar equivalents in individual foreign currencies of more than $100,000 will be converted to U.S. dollars within one business day after such funds are no longer needed to margin foreign positions. 
  
 (d) The Advisor agrees to make all material disclosures to the Partnership
regarding itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), 

  

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shareholders, directors, officers and employees, their trading performance and general trading methods, its customer accounts (but not the identities of or
identifying information with respect to its customers) and otherwise as are required in the reasonable judgment of CMF to be made in any filings required by Federal or state law or NFA rule or order. Notwithstanding Sections 1(d) and 4(d) of this
Agreement, the Advisor shall not be required to disclose the actual trading results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines that such disclosure is required in order to fulfill its fiduciary
obligations to the Partnership or the reporting, filing or other obligations imposed on it by Federal or state law or NFA rule or order. The Partnership and CMF acknowledge that the trading advice to be provided by the Advisor is a property right
belonging to the Advisor and that they will keep all such advice confidential. Further, CMF agrees to treat as confidential any results of proprietary accounts and/or proprietary information with respect to trading systems obtained from the Advisor.

  
 (e) The Advisor understands and agrees that CMF may designate
other trading advisors for the Partnership and apportion or reapportion to such other trading advisors the management of an amount of Net Assets (as defined in Section 3(b) hereof) as it shall determine in its absolute discretion. The designation of
other trading advisors and the apportionment or reapportionment of Net Assets to any such trading advisors pursuant to this Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the
parties hereunder. 
  
 (f) CMF may, from time to time, in its
absolute discretion, select additional trading advisors and reapportion funds among the trading advisors for the Partnership as it deems appropriate. CMF shall use its best efforts to make reapportionments, if any, as of the first day of a month.
The Advisor agrees that it may be called upon at any time promptly to liquidate positions in CMF’s sole discretion so that CMF may reallocate the Partnership’s assets, meet margin calls on the Partnership’s account, fund redemptions,
or for any other reason, except that CMF will not require the liquidation of specific positions by the Advisor. CMF will use its best efforts to give two days’ prior notice to the Advisor of any reallocations or liquidations. 
  
 (g) The Advisor will not be liable for trading losses in the
Partnership’s account including losses caused by errors; provided, however, that the Advisor will be liable to the Partnership with respect to direct losses incurred due to errors committed or caused by it or any of its principals or employees
in communicating improper trading instructions or orders to any broker on behalf of the Partnership. 
  
 2. INDEPENDENCE OF THE ADVISOR. For all purposes herein, the Advisor shall be deemed to be an independent contractor and, unless otherwise
expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or sponsor of the Partnership, CMF, or any other trading advisor. The Advisor shall not be
responsible to the Partnership, the General Partner, any trading advisor or any limited partners for any acts or omissions of any other trading advisor to the Partnership. 
  
 3. COMPENSATION. (a) In consideration of and as compensation for all of the services to be rendered by the Advisor to
the Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee payable as of the end of each calendar quarter equal to 20% of New Trading Profits (as such term is defined below) earned by the Advisor for the
Partnership and (ii) a monthly fee for professional management services equal to 1/12 of 1.5% (1.5% per year) of the month-end Net Assets of the Partnership allocated to the Advisor. 
  

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 (b) “Net Assets” shall have the meaning set forth in Paragraph 7(d)(1) of the Limited
Partnership Agreement dated as of December 3, 2002, and without regard to further amendments thereto, provided that in determining the Net Assets of the Partnership on any date, no adjustment shall be made to reflect any distributions, redemptions
or incentive fees payable as of the date of such determination. 
  
 (c) “New Trading Profits” shall mean the excess, if any, of Net Assets managed by the Advisor at the end of the fiscal period over Net Assets managed by the Advisor at the end of the highest previous fiscal period or Net Assets
allocated to the Advisor at the date trading commences, whichever is higher, and as further adjusted to eliminate the effect on Net Assets resulting from new capital contributions, redemptions, reallocations or capital distributions, if any, made
during the fiscal period, decreased by interest or other income, not directly related to trading activity, earned on the Partnership’s assets during the fiscal period, whether the assets are held separately or in margin accounts. Ongoing
expenses shall be attributed to the Advisor based on the Advisor’s proportionate share of Net Assets as of the end of each month. Ongoing expenses above shall not include expenses of litigation not involving the activities of the Advisor on
behalf of the Partnership. Ongoing expenses shall not include initial offering and organizational expenses of the Partnership. No incentive fee shall be paid until the end of the first full calendar quarter of the Advisor’s trading for the
Partnership, which fee shall be based on New Trading Profits earned from the commencement of trading operations by the Advisor for the Partnership through the end of the first full calendar quarter of such trading. Interest income earned, if any,
will not be taken into account in computing New Trading Profits earned by the Advisor. If Net Assets allocated to the Advisor are reduced due to redemptions, distributions or reallocations (net of additions), there will be a corresponding
proportional reduction in the related loss carryforward amount that must be recouped before the Advisor is eligible to receive another incentive fee. 
  
 (d) Quarterly incentive fees and monthly management fees shall be paid within twenty (20) business days following the end of the period for which such fee
is payable. In the event of the termination of this Agreement as of any date which shall not be the end of a calendar quarter or month, as the case may be, the quarterly incentive fee shall be computed as if the effective date of termination were
the last day of the then current quarter and the monthly management fee shall be prorated to the effective date of termination. If, during any month, the Partnership does not conduct business operations or the Advisor is unable to provide the
services contemplated herein for more than two successive business days, the monthly management fee shall be prorated by the ratio which the number of business days during which CMF conducted the Partnership’s business operations or utilized
the Advisor’s services bears in the month to the total number of business days in such month. 
  
 (e) The provisions of this Paragraph 3 shall survive the termination of this Agreement. 
  
 4. RIGHT TO ENGAGE IN OTHER ACTIVITIES. (a) The services provided by the Advisor hereunder are not to be deemed
exclusive. CMF and Partnership acknowledge 

  

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that, subject to the terms of this Agreement, the Advisor and its officers, directors, employees and shareholder(s), may render advisory, consulting and
management services to other clients and accounts. The Advisor and its officers, directors, employees and shareholder(s) shall be free to trade for their own accounts and to advise other investors and manage other commodity accounts during the term
of this Agreement and to use the same information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the Partnership. However, the Advisor represents,
warrants and agrees that it believes the rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic trading strategies and will not affect the
capacity of the Advisor to continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement. 
  
 (b) If, at any time during the term of this Agreement, the Advisor is required to aggregate the Partnership’s commodity positions with the positions
of any other person for purposes of applying CFTC- or exchange-imposed speculative position limits, the Advisor agrees that it will promptly notify CMF if the Partnership’s positions are included in an aggregate amount which exceeds the
applicable speculative position limit. The Advisor agrees that, if its trading recommendations are altered because of the application of any speculative position limits, it will not modify the trading instructions with respect to the
Partnership’s account in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts. The Advisor further represents, warrants and agrees that under no circumstances will it
knowingly or deliberately use trading strategies or methods for the Partnership that are inferior to strategies or methods employed for any other client or account, including methods of allocation of trades and prices at which trades are executed,
it being acknowledged, however, that different trading strategies or methods may be utilized for differing sizes of accounts, accounts with different trading policies, accounts experiencing differing inflows or outflows of equity, accounts which
commence trading at different times, accounts which have different portfolios or different fiscal years, accounts utilizing different executing brokers, accounts with different fee structures, service level agreements, and the like, and accounts
with other differences, and that such differences may cause divergent trading results. 
  
 (c) It is acknowledged that the Advisor and/or its officers, employees, directors and shareholder(s) presently act, and it is agreed that they may continue to act, as advisor for other accounts managed by them, and
may continue to receive compensation with respect to services for such accounts in amounts which may be more or less than the amounts received from the Partnership. 
  
 (d) The Advisor agrees that it shall make such information available to CMF respecting the performance of the
Partnership’s account as compared to the performance of other accounts managed by the Advisor or its principals as shall be reasonably requested by CMF. The Advisor presently believes and represents that existing speculative position limits
will not materially adversely affect its ability to manage the Partnership’s account given the potential size of the Partnership’s account and the Advisor’s and its principals’ current accounts and all proposed accounts for which
they have contracted to act as trading advisor. 
  
 5.
TERM. (a) This Agreement shall continue in effect until June 30, 2004. CMF may, in its sole discretion, renew this Agreement for additional one-year periods upon 

  

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notice to the Advisor not less than 30 days prior to the expiration of the previous period. At any time during the term of this Agreement, CMF may terminate
this Agreement at any month-end upon 30 days’ notice to the Advisor. At any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement upon 30 days’ notice to the Advisor if (i) the Net Asset Value per
unit shall decline as of the close of business on any day to $400 or less; (ii) the Net Assets allocated to the Advisor (adjusted for redemptions, distributions, withdrawals or reallocations, if any) decline by 50% or more as of the end of a trading
day from such Net Assets’ previous highest value; (iii) limited partners owning at least 50% of the outstanding units shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails to comply with the terms of this Agreement; (v)
CMF, in good faith, reasonably determines that the performance of the Advisor has been such that CMF’s fiduciary duties to the Partnership require CMF to terminate this Agreement; or (vi) CMF reasonably believes that the application of
speculative position limits will substantially affect the performance of the Partnership. At any time during the term of this Agreement, CMF may elect immediately to terminate this Agreement if (i) the Advisor sells more than 50% of its assets to
another entity that is not related to the Advisor, or becomes bankrupt or insolvent, (ii) Eugene P. Lambert, Martin A. Lueck and Anthony J. Todd all die, become incapacitated, leave the employ of the Advisor, or otherwise cease to control or manage
the trading programs or systems of the Advisor, or (iii) the Advisor’s registration as a commodity trading advisor with the CFTC or its membership in the NFA or any other regulatory authority, is terminated or suspended. This Agreement will
immediately terminate upon dissolution of the Partnership or upon cessation of trading prior to dissolution. 
  
 (b) The Advisor may terminate this Agreement by giving not less than 30 days’ notice to CMF (i) in the event that the trading policies of the
Partnership as set forth in the Prospectus are changed in such manner that the Advisor reasonably believes will adversely affect the performance of its trading strategies; (ii) after June 30, 2004; (iii) in the event that the General Partner or
Partnership fails to comply with the terms of this Agreement; or (iv) if regulatory or other legal restrictions applicable to the Advisor prohibit the Advisor from trading for the Account. The Advisor may immediately terminate this Agreement if
CMF’s registration as a commodity pool operator, commodity trading advisor or its membership in the NFA is terminated or suspended. 
  
 (c) Except as otherwise provided in this Agreement, any termination of this Agreement in accordance with this Paragraph 5 or Paragraph 1(e) shall be
without penalty or liability to any party, except for any fees due to the Advisor pursuant to Section 3 hereof. 
  
 6. INDEMNIFICATION. (a) (i) In any threatened, pending or completed action, suit, or proceeding to which the Advisor was or is a party or is
threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’s assets by the Advisor or the offering and sale of units in the Partnership, CMF shall, subject to subparagraph (a)(iii) of
this Paragraph 6, indemnify and hold harmless the Advisor against any direct loss, liability, damage, cost, expense (including, without limitation, reasonable attorneys’ and accountants’ fees), judgments and amounts paid in settlement
actually and reasonably incurred by it in connection with such action, suit, or proceeding if the Advisor acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership, and provided that its
conduct did not constitute negligence, intentional misconduct, or a breach of its fiduciary obligations to the Partnership as a commodity trading advisor, unless 

  

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and only to the extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all circumstances of the case, the Advisor is fairly and reasonably entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that no
indemnification shall be available from the Partnership if such indemnification is prohibited by Section 16 of the Partnership Agreement. The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself, create
a presumption that the Advisor did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership. 
  

(ii) To the extent that the Advisor has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in
subparagraph (i) above, or in defense of any claim, issue or matter therein, CMF shall indemnify the Advisor against the expenses (including, without limitation, attorneys’ and accountants’ fees) actually and reasonably incurred by it in
connection therewith. 
  
 (iii) Any indemnification under
subparagraph (i) above, unless ordered by a court or administrative forum, shall be made by CMF only as authorized in the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is
proper in the circumstances because the Advisor has met the applicable standard of conduct set forth in subparagraph (i) above. Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which
approval shall not be unreasonably withheld. The Advisor will be deemed to have approved CMF’s selection unless the Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of
CMF’s selection, that the Advisor does not approve the selection. 
  
 (iv) In the event the Advisor is made a party to any claim, dispute or litigation or otherwise incurs any loss or expense as a result of, or in connection with, the Partnership’s or CMF’s activities or claimed activities unrelated
to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor against any loss, liability, damage, cost or expense (including, without limitation, attorneys’ and accountants’ fees) incurred in connection therewith. 

 
 (v) As used in this Paragraph 6(a), the term “Advisor” shall
include the Advisor, its principals, officers, directors, stockholders and employees and the term “CMF” shall include the Partnership. 
  
 (b) (i) The Advisor agrees to indemnify, defend and hold harmless CMF, the Partnership and their affiliates against any direct loss, liability, damage,
cost or expense (including, without limitation, reasonable attorneys’ and accountants’ fees), judgments and amounts paid in settlement actually and reasonably incurred by them (A) as a result of the material breach of any material
representations and warranties made by the Advisor in this Agreement, or (B) as a result of any act or omission of the Advisor relating to the Partnership if there has been a final judicial or regulatory determination or, in the event of a
settlement of any action or proceeding with the prior written consent of the Advisor, a written opinion of an arbitrator pursuant to Paragraph 14 hereof, to the effect that such acts or omissions violated the terms of this Agreement in any material
respect or involved negligence, bad faith, recklessness or intentional misconduct on the part of the Advisor (except as otherwise provided in Section 1(g)). 
  

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 (ii) In the event CMF, the Partnership or any of their affiliates is made a party to any claim, dispute
or litigation or otherwise incurs any loss or expense as a result of, or in connection with, the activities or claimed activities of the Advisor or its principals, officers, directors, shareholder(s) or employees unrelated to CMF’s or the
Partnership’s business, the Advisor shall indemnify, defend and hold harmless CMF, the Partnership or any of their affiliates against any loss, liability, damage, cost or expense (including, without limitation, attorneys’ and
accountants’ fees) incurred in connection therewith. 
  
 (c)
In the event that a person entitled to indemnification under this Paragraph 6 is made a party to an action, suit or proceeding alleging both matters for which indemnification can be made hereunder and matters for which indemnification may not be
made hereunder, such person shall be indemnified only for that portion of the loss, liability, damage, cost or expense incurred in such action, suit or proceeding which relates to the matters for which indemnification can be made. 
  
 (d) None of the indemnifications contained in this Paragraph 6 shall be
applicable with respect to default judgments, confessions of judgment or settlements entered into with a third party by the party claiming indemnification without the prior written consent, which shall not be unreasonably withheld or delayed, of the
party obligated to indemnify such party. 
  
 (e) The provisions of
this Paragraph 6 shall survive the termination of this Agreement. 
  
 7. REPRESENTATIONS, WARRANTIES AND AGREEMENTS. 
  
 (a) The Advisor represents and warrants that: 
  
 (i)
All references to the Advisor and its principals in the Prospectus will, after review and approval by the Advisor, be accurate in all material respects and as to them the Prospectus will not contain any untrue statement of a material fact or omit to
state a material fact which is necessary to make the statements therein not misleading, except that with respect to Table B and other pro forma or hypothetical performance information in the Prospectus, if any, this representation and warranty
extends only to the underlying data made available by the Advisor for the preparation thereof and not to any hypothetical or pro forma adjustments. Subject to such exception, all references to the Advisor and its principals in the Prospectus will,
after review and approval of such references by the Advisor prior to the use of such Prospectus in connection with the offering of the Partnership’s units, be accurate in all material respects. 
  
 (ii) Without limiting the foregoing, the information with respect to the
Advisor set forth in the actual performance tables in the Prospectus is based on all of the customer accounts managed on a discretionary basis by the Advisor’s principals and/or the Advisor during the period covered by such tables and required
to be disclosed therein. 
  
 (iii) The Advisor will be acting as a
commodity trading advisor with respect to the Partnership and not as a securities investment adviser and is duly registered with the CFTC as a commodity trading advisor, is a member of the NFA, and is in compliance with such other registration and
licensing requirements as shall be necessary to enable it to perform its obligations hereunder, and agrees to maintain and renew such registrations and licenses during the term of this Agreement. 
  

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 (iv) The Advisor is a corporation duly organized, validly existing and in good standing under the laws of
England and Wales and has full corporate power and authority to enter into this Agreement and to provide the services required of it hereunder. 
  
 (v) The Advisor will not, by acting as a commodity trading advisor to the Partnership, breach or cause to be breached any undertaking, agreement,
contract, statute, rule or regulation to which it is a party or by which it is bound. 
  
 (vi) This Agreement has been duly and validly authorized, executed and delivered by the Advisor and is a valid and binding agreement enforceable in accordance with its terms. 
  
 (vii) At any time during the term of this Agreement that a prospectus
relating to the units is required to be delivered in connection with the offer and sale thereof, the Advisor agrees upon the request of CMF to provide the Partnership with such information as shall be necessary so that, as to the Advisor and its
principals, such prospectus is accurate. 
  
 (b) CMF represents
and warrants for itself and the Partnership that: 
  
 (i) The
Prospectus (as from time to time amended or supplemented, which amendment or supplement is approved by the Advisor as to descriptions of itself and its actual performance) does not contain any untrue statement of a material fact or omit to state a
material fact which is necessary to make the statements therein not misleading, except that the foregoing representation does not apply to any statement or omission concerning the Advisor in the Prospectus, made in reliance upon, and in conformity
with, information furnished to CMF by or on behalf of the Advisor expressly for use in the Prospectus (it being understood that the hypothetical and pro forma adjustments in the Prospectus, if any, were not furnished by the Advisor). 
  
 (ii) It is a limited liability company duly organized, validly existing and
in good standing under the laws of the State of Delaware and has full limited liability company power and authority to perform its obligations under this Agreement. 
  
 (iii) CMF and the Partnership have the capacity and authority to enter into this Agreement on behalf of the Partnership.

  
 (iv) This Agreement has been duly and validly authorized,
executed and delivered on CMF’s and the Partnership’s behalf and is a valid and binding agreement of CMF and the Partnership enforceable in accordance with its terms. 
  
 (v) CMF will not by acting as General Partner to the Partnership and the Partnership will not, breach or cause to be
breached any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound which would materially limit or affect the performance of its duties under this Agreement. 
  

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 (vi) It is registered as a commodity pool operator and is a member of the NFA, and it will maintain and
renew such registration and membership during the term of this Agreement. 
  
 (vii) The Partnership is a limited partnership duly organized and validly existing under the laws of the State of New York and has full power and authority to enter into this Agreement and to perform its obligations
under this Agreement. 
  
 8. COVENANTS OF THE ADVISOR, CMF AND
THE PARTNERSHIP. 
  
 (a) The Advisor agrees as follows:

  
 (i) In connection with its activities on behalf of the
Partnership, the Advisor will comply with all applicable rules and regulations of the CFTC and/or the commodity exchange on which any particular transaction is executed. 
  
 (ii) The Advisor will promptly notify CMF of the commencement of any material suit, action or proceeding involving it,
whether or not any such suit, action or proceeding also involves CMF. 
  
 (iii) In the placement of orders for the Partnership’s account and for the accounts of any other client, the Advisor will utilize a pre-determined, systematic, fair and reasonable order entry system, which shall, on an overall basis,
be no less favorable to the Partnership than to any other account managed by the Advisor. The Advisor acknowledges its obligation to review the Partnership’s positions, prices and equity in the account managed by the Advisor daily and within
two business days of when the Advisor knows or should reasonably know of any event set out in subsections (x) through (z) of this subparagraph, to notify, in writing, the broker and CMF and the Partnership’s brokers of (x) any error committed
by the Advisor or its principals or employees; (y) any trade which the Advisor believes was not executed in accordance with its instructions; and (z) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or
equity in the account) between its records and the information reported on the account’s daily and monthly broker statements. 
  
 (iv) The Advisor will maintain its capital adequacy requirements in accordance with the mandate provided by the Financial Service Authority of the United
Kingdom during the term of this Agreement. 
  
 (b) CMF agrees for
itself and the Partnership that: 
  
 (i) CMF and the Partnership
will comply with all applicable rules and regulations of the CFTC and/or the commodity exchange on which any particular transaction is executed. 
  
 (ii) CMF will promptly notify the Advisor of the commencement of any material suit, action or proceeding involving it or the Partnership, whether or not
such suit, action or proceeding also involves the Advisor. 
  
 (iii) CMF will be responsible for compliance with the USA Patriot Act and related anti-money-laundering regulations with respect to the Partnership and its limited partners. 
  

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 9. COMPLETE AGREEMENT. This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter hereof. 
  
 10.
ASSIGNMENT. This Agreement may not be assigned by any party without the express written consent of the other parties, which consent must not be unreasonably withheld or delayed. 
  
 11. AMENDMENT. This Agreement may not be amended except by written agreement between the parties. 
  
 12. NOTICES. All notices, demands or requests required to be made or
delivered under this Agreement shall be in writing and delivered personally or by registered or certified mail or expedited courier, return receipt requested, postage prepaid, to the addresses below or to such other addresses as may be designated by
the party entitled to receive the same by notice similarly given: 
  
 If to CMF: 
  
 Citigroup Managed
Futures LLC 
 399 Park Avenue 
 7th Floor 
 New York, New York 10022 
 Attention: Mr. David J. Vogel 
  
 If to the Advisor: 
  
 Aspect Capital Limited 
 8th Floor, Nations House 
 103 Wigmore Street 
 London W1U 1QS 
 England 
 Attention: Mr. Simon Rockall 
  
 13. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
  
 14. ARBITRATION. The parties agree that any dispute or controversy
arising out of or relating to this Agreement or the interpretation thereof, shall be settled by arbitration in accordance with the rules, then in effect, of the National Futures Association or, if the National Futures Association shall refuse
jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration Association; provided, however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator
shall state in writing his reasons for his award. Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction. 
  
 15. NO THIRD PARTY BENEFICIARIES. There are no third party beneficiaries to this Agreement. 
  

 11 

 16. COUNTERPARTS. This Agreement may be executed in any number of counterparts, including via
facsimile, each of which is an original and all of which when taken together evidence the same agreement. 
  
 PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE
COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION
HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS ACCOUNT DOCUMENT. 
  

 12 

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

	 CITIGROUP MANAGED FUTURES LLC

		
	 By
	 	 /s/ David J. Vogel

	 	 	 David J. Vogel

	 	 	 President and Director

	
	 CITIGROUP DIVERSIFIED FUTURES FUND L. P.

		
	 By:
	 	 Citigroup Managed Futures LLC

	 	 	 (General Partner)

		
	 By
	 	 /s/ David J. Vogel

	 	 	 David J. Vogel

	 	 	 President and Director

	
	 ASPECT CAPITAL LIMITED

		
	 By
	 	 /s/ Martin A. Lueck

	 	 	 Name: Martin A. Lueck

	 	 	 Title: Research Director

  

 13Management Agreement between Citigroup Managed Futures LLC and Capital Fund

 Exhibit 10.9 
  
 MANAGEMENT AGREEMENT 
  
 AGREEMENT made as of the 30th day of September, 2003 among CITIGROUP MANAGED FUTURES LLC, a Delaware limited liability company (“CMF” or the
“General Partner”), CITIGROUP DIVERSIFIED FUTURES FUND L.P., a New York limited partnership (the “Partnership”) and CAPITAL FUND MANAGEMENT SA, a French corporation (the “Advisor”). 
  
 W I T N E S S E
T H : 
  
 WHEREAS, CMF is the general partner of
Citigroup Diversified Futures Fund L.P., a limited partnership organized for the purpose of speculative trading of commodity interests, including futures contracts, options, swaps and forward contracts with the objective of achieving substantial
capital appreciation; and 
  
 WHEREAS, the Limited Partnership
Agreement establishing the Partnership (the “Limited Partnership Agreement”) permits CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions for the Partnership; and 
  
 WHEREAS, the Advisor is registered as a commodity trading advisor with the
Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”); and 
  
 WHEREAS, CMF is registered as a commodity pool operator with the CFTC and is a member of the NFA; and 
  
 WHEREAS, CMF, the Partnership and the Advisor wish to enter into this
Agreement in order to set forth the terms and conditions upon which the Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity trading activities during the term of this Agreement;

  
 NOW, THEREFORE, the parties agree as follows: 
  
 1. DUTIES OF THE ADVISOR. (a) For the period and on the terms and
conditions of this Agreement, the Advisor shall have sole authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the Partnership allocated
to it from time to time by the General Partner in commodity interests, including commodity futures contracts, options, swaps and forward contracts. All such trading on behalf of the Partnership shall be in accordance with the trading strategies and
trading policies set forth in the Partnership’s Prospectus and Disclosure Document to be dated on or about November 1, 2003 (the “Prospectus”), and as such trading policies may be changed from time to time upon receipt by the Advisor
of prior written notice of such change and pursuant to the trading strategy selected by CMF to be utilized by the Advisor in managing the Partnership’s assets. CMF has initially selected the Advisor’s Discus Program (the
“Program”) to manage the Partnership’s assets allocated to it. Any open positions or other investments at the time of receipt of such notice of a change in trading policy shall not be deemed to violate the changed policy and shall be
closed or sold in the ordinary course of trading. The Advisor may not deviate from the trading policies set forth in the Prospectus without the prior written consent of the Partnership given by CMF. The Advisor makes no representation or warranty
that the trading to be directed by it for the Partnership will be profitable or will not incur losses. 

 (b) CMF acknowledges receipt of the Advisor’s Disclosure Document dated as of June 30, 2003, as
filed with the NFA and CFTC. All trades made by the Advisor for the account of the Partnership shall be made through such commodity broker or brokers as CMF shall direct, and the Advisor shall have no authority or responsibility for selecting or
supervising any such broker in connection with the execution, clearance or confirmation of transactions for the Partnership or for the negotiation of brokerage rates charged therefor. However, the Advisor, with the prior written permission (by
either original or fax copy) of CMF, may direct all trades in commodity futures and options to a futures commission merchant or independent floor broker it chooses for execution with instructions to give-up the trades to the broker designated by
CMF, provided that the futures commission merchant or independent floor broker and any give-up or floor brokerage fees are approved in advance by CMF. All give-up or similar fees relating to the foregoing shall be paid by the Partnership after all
parties have executed the relevant give-up agreements (by either original or fax copy). 
  
 (c) The initial allocation of the Partnership’s assets to the Advisor will be made to the Advisor’s Program. In the event the Advisor wishes to use a trading system or methodology other than or in addition
to the system or methodology outlined in the description of the Program in the Prospectus in connection with its trading for the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its
intention to utilize such different trading system or methodology and CMF consents thereto in writing. In addition, the Advisor will provide five days’ prior written notice to CMF of any change in the trading system or methodology to be
utilized for the Partnership which the Advisor deems material. If the Advisor deems such change in system or methodology or in markets traded to be material, the changed system or methodology or markets traded will not be utilized for the
Partnership without the prior written consent of CMF. In addition, the Advisor will notify CMF of any changes to the trading system or methodology that would require a change in the description of the trading strategy or methods described in the
Prospectus. Further, the Advisor will provide the Partnership with a current list of all commodity interests to be traded for the Partnership’s account and will not trade any additional commodity interests for such account without providing
notice thereof to CMF and receiving CMF’s written approval. The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the Advisor’s management together with all other matters deemed by the
Advisor to be material changes to its business not previously reported to CMF. The Advisor further agrees that it will convert foreign currency balances (not required to margin positions denominated in a foreign currency) to U.S. dollars no less
frequently than monthly. U.S. dollar equivalents in individual foreign currencies of more than $100,000 will be converted to U.S. dollars within one business day after such funds are no longer needed to margin foreign positions. 
  
 (d) The Advisor agrees to make all material disclosures to the Partnership
regarding itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), shareholders, directors, officers and employees, their trading performance and general trading methods, its customer accounts (but not
the identities of or identifying information with respect to its customers) and otherwise as are required in the reasonable judgment of CMF to be made in 

  

 2 

 
any filings required by Federal or state law or NFA rule or order. Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor shall not be
required to disclose the actual trading results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines that such disclosure is required in order to fulfill its fiduciary obligations to the Partnership or the
reporting, filing or other obligations imposed on it by Federal or state law or NFA rule or order. The Partnership and CMF acknowledge that the trading advice to be provided by the Advisor is a property right belonging to the Advisor and that they
will keep all such advice confidential. Further, CMF agrees to treat as confidential any results of proprietary accounts and/or proprietary information with respect to trading systems obtained from the Advisor. 
  
 (e) The Advisor understands and agrees that CMF may designate other trading
advisors for the Partnership and apportion or reapportion to such other trading advisors the management of an amount of Net Assets (as defined in Section 3(b) hereof) as it shall determine in its absolute discretion. The designation of other trading
advisors and the apportionment or reapportionment of Net Assets to any such trading advisors pursuant to this Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the parties hereunder.

  
 (f) CMF may, from time to time, in its absolute discretion,
select additional trading advisors and reapportion funds among the trading advisors for the Partnership as it deems appropriate. CMF shall use its best efforts to make reapportionments, if any, as of the first day of a month. The Advisor agrees that
it may be called upon at any time promptly to liquidate positions in CMF’s sole discretion so that CMF may reallocate the Partnership’s assets, meet margin calls on the Partnership’s account, fund redemptions, or for any other reason,
except that CMF will not require the liquidation of specific positions by the Advisor. CMF will use its best efforts to give two days’ prior notice to the Advisor of any reallocations or liquidations. 
  
 (g) The Advisor will not be liable for trading losses in the
Partnership’s account including losses caused by errors; provided, however, that the Advisor will be liable to the Partnership with respect to losses incurred due to errors committed or caused by it or any of its principals or employees in
communicating improper trading instructions or orders to any broker on behalf of the Partnership. 
  
 2. INDEPENDENCE OF THE ADVISOR. For all purposes herein, the Advisor shall be deemed to be an independent contractor and, unless otherwise
expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or sponsor of the Partnership, CMF, or any other trading advisor. The Advisor shall not be
responsible to the Partnership, the General Partner, any trading advisor or any limited partners for any acts or omissions of any other trading advisor to the Partnership. 
  
 3. COMPENSATION. (a) In consideration of and as compensation for all of the services to be rendered by the Advisor to
the Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee payable as of the end of each calendar quarter equal to 20% of New Trading Profits (as such term is defined below) earned by the Advisor for the
Partnership and (ii) a monthly fee for professional management services equal to 1/6 of 1% (2% per year) of the month-end Net Assets of the Partnership allocated to the Advisor. 
  

 3 

 (b) “Net Assets” shall have the meaning set forth in Paragraph 7(d)(1) of the Limited
Partnership Agreement dated as of December 3, 2002, and without regard to further amendments thereto, provided that in determining the Net Assets of the Partnership on any date, no adjustment shall be made to reflect any distributions, redemptions
or incentive fees payable as of the date of such determination. 
  
 (c) “New Trading Profits” shall mean the excess, if any, of Net Assets managed by the Advisor at the end of the calendar quarter over Net Assets managed by the Advisor at the end of the highest previous calendar quarter or Net
Assets allocated to the Advisor at the date trading commences, whichever is higher, and as further adjusted to eliminate the effect on Net Assets resulting from new capital contributions, redemptions, reallocations or capital distributions, if any,
made during the calendar quarter, decreased by interest or other income, not directly related to trading activity, earned on the Partnership’s assets during the calendar quarter, whether the assets are held separately or in margin accounts.
Ongoing expenses shall be attributed to the Advisor based on the Advisor’s proportionate share of Net Assets as of the end of each month. Ongoing expenses above shall not include expenses of litigation not involving the activities of the
Advisor on behalf of the Partnership. Ongoing expenses shall not include initial offering and organizational expenses of the Partnership. No incentive fee shall be paid until the end of the first full calendar quarter of the Advisor’s trading
for the Partnership, which fee shall be based on New Trading Profits earned from the commencement of trading operations by the Advisor on behalf of the Partnership through the end of the first full calendar quarter of such trading. Interest income
earned, if any, will not be taken into account in computing New Trading Profits earned by the Advisor. If Net Assets allocated to the Advisor are reduced due to redemptions, distributions or reallocations (net of additions), there will be a
corresponding proportional reduction in the related loss carryforward amount that must be recouped before the Advisor is eligible to receive another incentive fee. 
  
 (d) Quarterly incentive fees and monthly management fees shall be paid within twenty (20) business days following the end of
the period for which such fee is payable. In the event of the termination of this Agreement as of any date which shall not be the end of a calendar quarter or month, as the case may be, the quarterly incentive fee shall be computed as if the
effective date of termination were the last day of the then current quarter and the monthly management fee shall be prorated to the effective date of termination. If, during any month, the Partnership does not conduct business operations or the
Advisor is unable to provide the services contemplated herein for more than two successive business days, the monthly management fee shall be prorated by the ratio which the number of business days during which CMF conducted the Partnership’s
business operations or utilized the Advisor’s services bears in the month to the total number of business days in such month. 
  
 (e) The provisions of this Paragraph 3 shall survive the termination of this Agreement. 
  
 4. RIGHT TO ENGAGE IN OTHER ACTIVITIES. (a) The services provided by the Advisor hereunder are not to be deemed
exclusive. CMF and the Partnership acknowledge that, subject to the terms of this Agreement, the Advisor and its officers, directors, employees and shareholder(s), may render advisory, consulting and management services to other clients and
accounts. The Advisor and its officers, directors, employees and shareholder(s) 

  

 4 

 
shall be free to trade for their own accounts and to advise other investors and manage other commodity accounts during the term of this Agreement and to use
the same information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the Partnership. However, the Advisor represents, warrants and agrees that it
believes the rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic trading strategies and will not affect the capacity of the Advisor to
continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement. 
  
 (b) If, at any time during the term of this Agreement, the Advisor is required to aggregate the Partnership’s commodity positions with the positions
of any other person for purposes of applying CFTC- or exchange-imposed speculative position limits, the Advisor agrees that it will promptly notify CMF if the Partnership’s positions are included in an aggregate amount which exceeds the
applicable speculative position limit. The Advisor agrees that, if its trading recommendations are altered because of the application of any speculative position limits, it will not modify the trading instructions with respect to the
Partnership’s account in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts. The Advisor further represents, warrants and agrees that under no circumstances will it
knowingly or deliberately use trading strategies or methods for the Partnership that are inferior to strategies or methods employed for any other client or account and that it will not knowingly or deliberately favor any client or account managed by
it over any other client or account in any manner, it being acknowledged, however, that different trading strategies or methods may be utilized for differing sizes of accounts, accounts with different trading policies, accounts experiencing
differing inflows or outflows of equity, accounts which commence trading at different times, accounts which have different portfolios or different fiscal years, accounts utilizing different executing brokers and accounts with other differences, and
that such differences may cause divergent trading results. 
  
 (c)
It is acknowledged that the Advisor and/or its officers, employees, directors and shareholder(s) presently act, and it is agreed that they may continue to act, as advisor for other accounts managed by them, and may continue to receive compensation
with respect to services for such accounts in amounts which may be more or less than the amounts received from the Partnership. 
  
 (d) The Advisor agrees that it shall make such information available to CMF respecting the performance of the Partnership’s account as compared to
the performance of other accounts managed by the Advisor or its principals as shall be reasonably requested by CMF. The Advisor presently believes and represents that existing speculative position limits will not materially adversely affect its
ability to manage the Partnership’s account given the potential size of the Partnership’s account and the Advisor’s and its principals’ current accounts and all proposed accounts for which they have contracted to act as trading
advisor. 
  
 5. TERM. (a) This Agreement shall continue in
effect until June 30, 2004. CMF may, in its sole discretion, renew this Agreement for additional one-year periods upon notice to the Advisor not less than 30 days prior to the expiration of the previous period. At any time during the term of this
Agreement, CMF may terminate this Agreement at any month-end 

  

 5 

 
upon 30 days’ notice to the Advisor. At any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement upon 30
days’ notice to the Advisor if (i) the Net Asset Value per unit shall decline as of the close of business on any day to $400 or less; (ii) the Net Assets allocated to the Advisor (adjusted for redemptions, distributions, withdrawals or
reallocations, if any) decline by 50% or more as of the end of a trading day from such Net Assets’ previous highest value; (iii) limited partners owning at least 50% of the outstanding units shall vote to require CMF to terminate this
Agreement; (iv) the Advisor fails to comply with the terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance of the Advisor has been such that CMF’s fiduciary duties to the Partnership require CMF to
terminate this Agreement; or (vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance of the Partnership. At any time during the term of this Agreement, CMF may elect immediately to
terminate this Agreement if (i) the Advisor merges, consolidates with another entity, sells a substantial portion of its assets, or becomes bankrupt or insolvent, (ii) Jean-Pierre Aguilar dies, becomes incapacitated, leaves the employ of the
Advisor, ceases to control the Advisor or is otherwise not managing the trading programs or systems of the Advisor, or (iii) the Advisor’s registration as a commodity trading advisor with the CFTC or its membership in the NFA or any other
regulatory authority, is terminated or suspended. This Agreement will immediately terminate upon dissolution of the Partnership or upon cessation of trading prior to dissolution. 
  
 (b) The Advisor may terminate this Agreement by giving not less than 30 days’ notice to CMF (i) in the event that the
trading policies of the Partnership as set forth in the Prospectus are changed in such manner that the Advisor reasonably believes will adversely affect the performance of its trading strategies; (ii) after June 30, 2004; or (iii) in the event that
the General Partner or Partnership fails to comply with the terms of this Agreement. The Advisor may immediately terminate this Agreement if CMF’s registration as a commodity pool operator or its membership in the NFA is terminated or
suspended. 
  
 (c) Except as otherwise provided in this Agreement,
any termination of this Agreement in accordance with this Paragraph 5 or Paragraph 1(e) shall be without penalty or liability to any party, except for any fees due to the Advisor pursuant to Section 3 hereof. 
  
 6. INDEMNIFICATION. (a) (i) In any threatened, pending or completed
action, suit, or proceeding to which the Advisor was or is a party or is threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’s assets by the Advisor or the offering and sale of
units in the Partnership, CMF shall, subject to subparagraph (a)(iii) of this Paragraph 6, indemnify and hold harmless the Advisor against any loss, liability, damage, cost, expense (including, without limitation, attorneys’ and
accountants’ fees), judgments and amounts paid in settlement actually and reasonably incurred by it in connection with such action, suit, or proceeding if the Advisor acted in good faith and in a manner reasonably believed to be in or not
opposed to the best interests of the Partnership, and provided that its conduct did not constitute negligence, intentional misconduct, or a breach of its fiduciary obligations to the Partnership as a commodity trading advisor, unless and only to the
extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all circumstances of the case, the Advisor is fairly and reasonably
entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that 

  

 6 

 
no indemnification shall be available from the Partnership if such indemnification is prohibited by Section 16 of the Partnership Agreement. The termination
of any action, suit or proceeding by judgment, order or settlement shall not, of itself, create a presumption that the Advisor did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the
Partnership. 
  
 (ii) To the extent that the Advisor has been
successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subparagraph (a)(i) above, or in defense of any claim, issue or matter therein, CMF shall indemnify the Advisor against the expenses (including,
without limitation, attorneys’ and accountants’ fees) actually and reasonably incurred by it in connection therewith. 
  
 (iii) Any indemnification under subparagraph (i) above, unless ordered by a court or administrative forum, shall be made by CMF only as authorized in the
specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances because the Advisor has met the applicable standard of conduct set forth in subparagraph (i)
above. Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which approval shall not be unreasonably withheld. The Advisor will be deemed to have approved CMF’s selection unless the
Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of CMF’s selection, that the Advisor does not approve the selection. 
  
 (iv) In the event the Advisor is made a party to any claim, dispute or
litigation or otherwise incurs any loss or expense as a result of, or in connection with, the Partnership’s or CMF’s activities or claimed activities unrelated to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor
against any loss, liability, damage, cost or expense (including, without limitation, attorneys’ and accountants’ fees) incurred in connection therewith. 
  
 (v) As used in this Paragraph 6(a), the term “Advisor” shall include the Advisor, its principals, officers,
directors, stockholders and employees and the term “CMF” shall include the Partnership. 
  
 (b) (i) The Advisor agrees to indemnify, defend and hold harmless CMF, the Partnership and their affiliates against any loss, liability, damage, cost or
expense (including, without limitation, attorneys’ and accountants’ fees), judgments and amounts paid in settlement actually and reasonably incurred by them (A) as a result of the material breach of any material representations and
warranties made by the Advisor in this Agreement, or (B) as a result of any act or omission of the Advisor relating to the Partnership if there has been a final judicial or regulatory determination or, in the event of a settlement of any action or
proceeding with the prior written consent of the Advisor, a written opinion of an arbitrator pursuant to Paragraph 14 hereof, to the effect that such acts or omissions violated the terms of this Agreement in any material respect or involved
negligence, bad faith, recklessness or intentional misconduct on the part of the Advisor (except as otherwise provided in Section 1(g)). 
  
 (ii) In the event CMF, the Partnership or any of their affiliates is made a party to any claim, dispute or litigation or otherwise incurs any loss or
expense as a result of, or in connection with, the activities or claimed activities of the Advisor or its principals, officers, 

  

 7 

 
directors, shareholder(s) or employees unrelated to CMF’s or the Partnership’s business, the Advisor shall indemnify, defend and hold harmless CMF,
the Partnership or any of their affiliates against any loss, liability, damage, cost or expense (including, without limitation, attorneys’ and accountants’ fees) incurred in connection therewith. 
  
 (c) In the event that a person entitled to indemnification under this
Paragraph 6 is made a party to an action, suit or proceeding alleging both matters for which indemnification can be made hereunder and matters for which indemnification may not be made hereunder, such person shall be indemnified only for that
portion of the loss, liability, damage, cost or expense incurred in such action, suit or proceeding which relates to the matters for which indemnification can be made. 
  
 (d) None of the indemnifications contained in this Paragraph 6 shall be applicable with respect to default judgments,
confessions of judgment or settlements entered into by the party claiming indemnification without the prior written consent, which shall not be unreasonably withheld, of the party obligated to indemnify such party. 
  
 (e) The provisions of this Paragraph 6 shall survive the termination of this
Agreement. 
  
 7. REPRESENTATIONS, WARRANTIES AND
AGREEMENTS. 
  
 (a) The Advisor represents and warrants that:

  
 (i) All references to the Advisor and its principals in the
Prospectus will, after review and approval by the Advisor, be accurate in all material respects and as to them the Prospectus will not contain any untrue statement of a material fact or omit to state a material fact which is necessary to make the
statements therein not misleading, except that with respect to Table B and other pro forma or hypothetical performance information in the Prospectus, if any, this representation and warranty extends only to the underlying data made available by the
Advisor for the preparation thereof and not to any hypothetical or pro forma adjustments. Subject to such exception, all references to the Advisor and its principals in the Prospectus will, after review and approval of such references by the Advisor
prior to the use of such Prospectus in connection with the offering of the Partnership’s units, be accurate in all material respects. 
  
 (ii) Without limiting the foregoing, the information with respect to the Advisor set forth in the actual performance tables in the Prospectus is, as
disclosed in the Prospectus, constructed from the customer accounts managed on a discretionary basis by the Advisor’s principals and/or the Advisor during the period covered by such tables and required to be disclosed therein. The
Advisor’s performance tables have been examined by an independent certified public accountant and the report thereon has been provided to CMF. The Advisor will have its performance tables so examined no less frequently than annually during the
term of this Agreement. 
  
 (iii) The Advisor will be acting as a
commodity trading advisor with respect to the Partnership and not as a securities investment adviser and is duly registered with the CFTC as a commodity trading advisor, is a member of the NFA, and is in compliance with such other registration and
licensing requirements as shall be necessary to enable it to perform its obligations hereunder, and agrees to maintain and renew such registrations and licenses during the term of this Agreement. 
  

 8 

 (iv) The Advisor is a corporation duly organized, validly existing and in good standing under the laws of
France and has full corporate power and authority to enter into this Agreement and to provide the services required of it hereunder. 
  
 (v) The Advisor will not, by acting as a commodity trading advisor to the Partnership, breach or cause to be breached any undertaking, agreement,
contract, statute, rule or regulation to which it is a party or by which it is bound. 
  
 (vi) This Agreement has been duly and validly authorized, executed and delivered by the Advisor and is a valid and binding agreement enforceable in accordance with its terms. 
  
 (vii) At any time during the term of this Agreement that a prospectus
relating to the units is required to be delivered in connection with the offer and sale thereof, the Advisor agrees upon the request of CMF to provide the Partnership with such information as shall be necessary so that, as to the Advisor and its
principals, such prospectus is accurate. 
  
 (b) CMF represents
and warrants for itself and the Partnership that: 
  
 (i) The
Prospectus (as from time to time amended or supplemented, which amendment or supplement is approved by the Advisor as to descriptions of itself and its actual performance) does not contain any untrue statement of a material fact or omit to state a
material fact which is necessary to make the statements therein not misleading, except that the foregoing representation does not apply to any statement or omission concerning the Advisor in the Prospectus, made in reliance upon, and in conformity
with, information furnished to CMF by or on behalf of the Advisor expressly for use in the Prospectus (it being understood that the hypothetical and pro forma adjustments in the Prospectus, if any, were not furnished by the Advisor). 
  
 (ii) It is a limited liability company duly organized, validly existing and
in good standing under the laws of the State of Delaware and has full limited liability company power and authority to perform its obligations under this Agreement. 
  
 (iii) CMF and the Partnership have the capacity and authority to enter into this Agreement on behalf of the Partnership.

  
 (iv) This Agreement has been duly and validly authorized,
executed and delivered on CMF’s and the Partnership’s behalf and is a valid and binding agreement of CMF and the Partnership enforceable in accordance with its terms. 
  
 (v) CMF will not by acting as General Partner to the Partnership and the Partnership will not, breach or cause to be
breached any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound which would materially limit or affect the performance of its duties under this Agreement. 
  

 9 

 (vi) It is registered as a commodity pool operator and is a member of the NFA, and it will maintain and
renew such registration and membership during the term of this Agreement. 
  
 (vii) The Partnership is a limited partnership duly organized and validly existing under the laws of the State of New York and has full power and authority to enter into this Agreement and to perform its obligations
under this Agreement. 
  
 8. COVENANTS OF THE ADVISOR, CMF AND
THE PARTNERSHIP. 
  
 (a) The Advisor agrees as follows:

  
 (i) In connection with its activities on behalf of the
Partnership, the Advisor will comply with all applicable rules and regulations of the CFTC and/or the commodity exchange on which any particular transaction is executed. 
  
 (ii) The Advisor will promptly notify CMF of the commencement of any material suit, action or proceeding involving it,
whether or not any such suit, action or proceeding also involves CMF. 
  
 (iii) In the placement of orders for the Partnership’s account and for the accounts of any other client, the Advisor will utilize a pre-determined, systematic, fair and reasonable order entry system, which shall, on an overall basis,
be no less favorable to the Partnership than to any other account managed by the Advisor. The Advisor acknowledges its obligation to review the Partnership’s positions, prices and equity in the account managed by the Advisor daily and within
two business days to notify, in writing, the broker and CMF and the Partnership’s brokers of (i) any error committed by the Advisor or its principals or employees; (ii) any trade which the Advisor believes was not executed in accordance with
its instructions; and (iii) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or equity in the account) between its records and the information reported on the account’s daily and monthly broker
statements. 
  
 (iv) The Advisor will maintain a net worth of not
less than $1,000,000 during the term of this Agreement. 
  
 (b)
CMF agrees for itself and the Partnership that: 
  
 (i) CMF and
the Partnership will comply with all applicable rules and regulations of the CFTC and/or the commodity exchange on which any particular transaction is executed. 
  

(ii) CMF will promptly notify the Advisor of the commencement of any material suit, action or proceeding involving it or the Partnership, whether or
not such suit, action or proceeding also involves the Advisor. 
  
 (iii) CMF will be responsible for compliance with the USA Patriot Act and related anti-money-laundering regulations with respect to the Partnership and its limited partners. 
  

 10 

 9. COMPLETE AGREEMENT. This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter hereof. 
  
 10.
ASSIGNMENT. This Agreement may not be assigned by any party without the express written consent of the other parties. 
  
 11. AMENDMENT. This Agreement may not be amended except by the written consent of the parties. 
  
 12. NOTICES. All notices, demands or requests required to be made or
delivered under this Agreement shall be in writing and delivered personally or by registered or certified mail or expedited courier, return receipt requested, postage prepaid, to the addresses below or to such other addresses as may be designated by
the party entitled to receive the same by notice similarly given: 
  
 If to CMF: 
  
 Citigroup Managed
Futures LLC 
 399 Park Avenue 
 7th Floor 
 New York, New York 10022 
 Attention: Mr. David J. Vogel 
  
 If to the Advisor: 
  
 Capital Fund Management SA 
 109 111 Rue V. Hugo 
 92532 Levallois, France 
 Attention: Jean-Pierre Aguilar 
  
 13. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
  
 14. ARBITRATION. The parties agree that any dispute or controversy
arising out of or relating to this Agreement or the interpretation thereof, shall be settled by arbitration in accordance with the rules, then in effect, of the National Futures Association or, if the National Futures Association shall refuse
jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration Association; provided, however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator
shall state in writing his reasons for his award. Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction. 
  
 15. NO THIRD PARTY BENEFICIARIES. There are no third party beneficiaries to this Agreement. 
  

 11 

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

	 CITIGROUP MANAGED FUTURES LLC

		
	 By
	 	 /s/ David J. Vogel

	 	 	 David J. Vogel

	 	 	 President and Director

	
	 CITIGROUP DIVERSIFIED FUTURES FUND L. P.

		
	 By:
	 	 Citigroup Managed Futures LLC

	 	 	 (General Partner)

		
	 By
	 	 /s/ David J. Vogel

	 	 	 David J. Vogel

	 	 	 President and Director

	
	 CAPITAL FUND MANAGEMENT SA

		
	 By
	 	 /s/ Jacques Sauliere

	 	 	 Jacques Sauliere

	 	 	 Managing Director

  

 12

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