Document:

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                                                                   EXHIBIT 10.47

                         RIGHT OF FIRST OFFER AGREEMENT

     THIS RIGHT OF FIRST OFFER AGREEMENT (this "Agreement") is made and entered
into as of November 1, 2006 by and among IPG Laser GmbH, a limited liability
company organized under the laws of Germany ("IPG Laser"), Scientific and
Technical Association IRE Polus, a limited liability company organized under the
laws of the Russian Federation (the "Company") and Igor Samartsev, Ph.D. (the
"Participant") who holds a voting equity interest in the Company.

                                    RECITALS

     A. WHEREAS, the Participant owns 4.9% of the voting equity interest in the
Company (said voting equity interest, together with any voting equity interest
now owned or subsequently acquired by Participant, his permitted transferees or
assigns, is hereinafter referred to as the "Interest");

     B. WHEREAS, IPG Laser owns 51% of the voting equity interest in the
Company;

     C. WHEREAS, IPG Photonics Corporation, a Delaware corporation ("IPG"),
intends to enter into an Underwriting Agreement (the "Underwriting Agreement")
by and between it, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Lehman Brothers Inc. and each of the other Underwriters named in
Schedule A thereto (collectively, the "Underwriters"), pursuant to which IPG
intends to consummate an initial public offering of shares of its common stock;

     D. WHEREAS, IPG Laser is a wholly-owned subsidiary of IPG;

     E. WHEREAS, simultaneous with the execution hereof, the Participant is
granting IPG Laser the power to exercise the Participant's voting interest with
respect to the Interest pursuant to an Irrevocable Proxy Coupled with Interest
substantially in the form attached hereto as Exhibit A (the "Proxy");

     F. WHEREAS, the Participant is also a substantial stockholder of IPG and
will draw a substantial benefit from the initial public offering of IPG; and

     G. WHEREAS, as a material inducement to the Underwriters to enter into the
Underwriting Agreement, the Participant has agreed to grant (i) to IPG Laser the
power to exercise the Participant's voting interest with respect to the Interest
pursuant to the Proxy and (ii) to IPG Laser a right of first offer with respect
to any proposed transfer of the Interest, or any portion thereof, pursuant to
this Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants, representations,
warranties and agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, and
intending to be legally bound hereby, the parties hereto agree as follows:

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     1. Right of First Offer.

     (a) The Participant hereby agrees that he shall not assign, sell, offer to
sell, pledge, mortgage, hypothecate, encumber, dispose of or enter into any
other like transaction involving the transfer or encumbrance of the Interest, in
whole or in part (each a "Transfer"), to any participant of the Company other
than IPG Laser without first offering such interest to IPG Laser at a price
equal to the lesser of (x) the proportionate interest in the net asset value of
the Company as of June 30, 2006 represented by the interest to be transferred,
(y) the fair value of the interest to be transferred as determined in good faith
and approved by the Audit Committee of the Board of Directors of IPG as of a
date within three months of the proposed transfer or (z) the bona fide purchase
price proposed to be paid by any participant of the Company, if any, for the
interest to be transferred. Prior to any Transfer of the Interest, in whole or
in part, to any participant of the Company, the Participant must deliver a
written notice (the "Notice") to IPG Laser, which Notice must include (i) a
statement of the intent to Transfer the Interest (or some portion thereof) , the
material terms and conditions of the proposed Transfer and the identity of the
proposed transferee, (ii) a copy of any written offer, term sheet or purchase
agreement from any participant of the Company setting forth all material terms,
including the bona fide consideration to be paid, and (iii) an offer to sell the
Interest (or such portion thereof in question) to IPG Laser on the terms set
forth in this Agreement. IPG Laser may elect to purchase all or part of the
Interest (or such portion thereof being offered) by sending written notice to
the Participant accepting the offer to purchase the Interest (or such portion
thereof being offered) at a price equal to the lesser of clauses (x), (y) or (z)
above within thirty (30) days following receipt of the Notice. The closing will
take place on a mutually agreeable date to be not more than thirty (30) days
following the exercise of the right of first offer hereunder by IPG Laser.

     (b) If IPG Laser does not exercise the right of first offer by the end of
the thirty (30) day period referred to above, the Participant, subject to
Section 1(a) hereof, will be free to sell the membership interest described in
the Notice to such participant of the Company on terms not worse to the
Participant than those set forth in the Notice, at any time within ninety (90)
days thereafter. Regardless of whether such sale is completed, the right of
first offer set forth in this Section 1 will remain in full force and effect.

     (c) Any Transfer of the Interest (or any portion thereof) by the
Participant not made in compliance with the requirements of this Agreement shall
be void ab initio and shall not be recognized by the Company.

     (d) If the Participant becomes obligated to Transfer the Interest (or any
portion thereof) to IPG Laser pursuant to this Agreement and fails to deliver
the Notice in accordance with the terms of this Agreement, IPG Laser may, at its
option, in addition to all other remedies it may have, send to the Participant
the purchase price for the Interest (or portion thereof) as is herein specified
and the Company shall take such steps as are required under the laws of the
Russian Federation to effect the transfer of the Participant's shares to IPG
Laser.

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     2. Representations, Warranties and Covenants of the Participant. The
Participant represents, warrants and covenants to IPG Laser as follows:

     (a) The Participant is the sole beneficial and record owner, and has good
and marketable title to, the Interest, and, except as provided for in the Proxy,
has sole and full power to vote or direct the voting of the Interest with no
limitations, qualifications or restrictions on such rights, and no other person
has any interest in the Interest (or any portion thereof).

     (b) As of the date hereof the Interest is, and at all times up until a
Transfer of all of the Interest in compliance with the terms hereof, the
Interest will be, free and clear of any rights of first offer, co-sale rights or
other similar rights, other than those rights described herein and in the
charter documents of the Company.

     (c) The Participant has the legal capacity and full power and authority to
make, enter into and carry out the terms of this Agreement and to perform his
obligations hereunder. This Agreement has been duly and validly executed and
delivered by the Participant and constitutes a valid and binding agreement of
the Participant, enforceable against the Participant in accordance with the
terms of this Agreement.

     (d) Except for the Proxy, none of the Interest is subject to any voting
trust, proxy, or other agreement, arrangement or restriction with respect to
voting.

     (e) The Participant agrees that, except for the Proxy, he shall not enter
into any voting arrangement, whether by proxy, power-of-attorney, voting
agreement, voting trust or otherwise, directly or indirectly, with respect to
the Interest.

     (f) The execution and delivery of this Agreement by the Participant does
not, and the performance of this Agreement by the Participant will not, (i)
conflict with or violate any law applicable to the Participant or by which the
Participant or any of the Participant's assets is bound or affected, or (ii)
result in any breach of or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, acceleration, or cancellation of, or result in the
creation of a lien or encumbrance on any assets of the Participant, including,
without limitation, the Interest, pursuant to, any notice, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise, or other
instrument or obligations to which the Participant is a party or by which the
Participant or any of the Participant's assets is bound or affected.

     3. Additional Documents. Upon request of the other party, the Participant
and IPG Laser hereby covenant and agree to execute and deliver all such other
and additional instruments and documents and do all such other acts and things
as may be necessary to more fully effectuate this Agreement or the Proxy.

     4. No Impairment. The Participant shall not take, or fail to take, any
action or avoid or seek to avoid the observance or performance of any of the
terms of this Agreement to be observed or performed hereunder or the Proxy, but
will at all times in good faith assist in the carrying out of all

                                       3

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the provisions of this Agreement and the Proxy and in the taking of all action
as may be necessary or appropriate in order to protect the rights of IPG Laser
hereunder and thereunder.

     5. Term. This Agreement shall terminate and shall have no further force or
effect at such time as the Interest shall have been transferred in its entirety
in compliance with the terms of this Agreement.

     6. Miscellaneous.

     (a) Severability. If any term, provision, covenant, representation,
warranty or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, then the remainder of the
terms, provisions, covenants, representations, warranties and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated, and the parties agree to negotiate, in good
faith, a legal and enforceable substitute provision which most nearly effects
the parties' intent in entering into this Agreement.

     (b) Binding Effect and Assignment. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but, except as otherwise
specifically provided herein, neither this Agreement nor any of the rights,
interests or obligations of any party hereunder may be assigned without the
prior written consent of the other parties hereto.

     (c) Amendments and Modification. This Agreement may not be modified,
amended, altered or supplemented except by the execution and delivery of a
written agreement executed by each of the parties hereto.

     (d) Waiver. No waiver by any party hereto of any condition or of any breach
of any provision of this Agreement shall be effective unless in writing,
executed on behalf of the party or parties against whom enforcement is sought.
No failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by law.

     (e) Specific Performance; Injunctive Relief. The Participant acknowledges
that IPG Laser will be irreparably harmed and that there will be no adequate
remedy at law for a violation of any of the covenants, representations,
warranties or agreements of the Participant set forth herein. Therefore, the
Participant hereby unconditionally and irrevocably agrees that IPG Laser shall
be entitled to seek protective orders, injunctive relief and other remedies
available at law or in equity (including, without limitation, seeking specific
performance or the rescission of any Transfer of the Interest (or any portion
thereof) not made in strict compliance with this Agreement).

     (f) Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally or by commercial
messenger or courier service, or mailed by registered or certified mail (return
receipt requested) or sent via facsimile (with acknowledgement of complete
transmission) to the parties at the following addresses (or at such

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other address for a party as shall be specified by like notice), provided,
however, that notices sent by mail will not be deemed given until received:

                  If to IPG Laser, to:

                        IPG Laser GmbH
                        Siemensstrasse 7
                        D-57299 Burbach, Germany
                        Attn: Igor Samartsev
                        Fax: 49-27-3644-342

                  With a copy to:

                        IPG Photonics Corporation
                        50 Old Webster Road
                        Oxford, Massachusetts 01540
                        Attn: Angelo P. Lopresti
                        Fax: 508-373-1134

                  If to the Participant:

                        IPG Photonics Corporation
                        50 Old Webster Road
                        Oxford, Massachusetts 01540
                        Fax: (508) 373-1101

     (g) Governing Law. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the Russian Federation, without giving
effect to any choice or conflict of law provision or rule (whether of the laws
of the Russian Federation or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the Russian Federation.

     (h) Entire Agreement. This Agreement contains the entire understanding of
the parties in respect of the subject matter hereof, and supersedes all prior
negotiations and understandings between the parties with respect to such subject
matter.

     (i) Counterparts. This Agreement may be executed in several counterparts,
each of which shall be an original, but all of which together shall constitute
one and the same instrument.

     (j) Effect of Headings. The section headings herein are for convenience
only and shall not affect the construction or interpretation of this Agreement.

     IN WITNESS WHEREOF, the undersigned have executed this Right of First Offer
Agreement on the date first above written.

                                                IPG LASER GMBH

                                                By: /s/ Eugene Shcherbakov
                                                   -----------------------------
                                                Name: Eugene Shcherbakov
                                                Title: Managing Director

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                                                IGOR SAMARTSEV

                                                /s/ Igor Samartsev
                                                --------------------------------

                                                Scientific and Technical
                                                Association IRE Polus

                                                By: /s/ Valentin P. Gapontsev
                                                   -----------------------------
                                                Name: Valentin P. Gapontsev
                                                Title: General Manager

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                                    EXHIBIT A

                     Irrevocable Proxy Coupled with Interest

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                     IRREVOCABLE PROXY COUPLED WITH INTEREST

     Igor Samartsev (the "Participant") hereby irrevocably appoints IPG Laser
GmbH, a limited liability company organized under the laws of Germany ("IPG
Laser"), as his sole and exclusive attorney-in-fact and proxy, with full power
of substitution and resubstitution, to vote and exercise all voting and related
rights (to the fullest extent that the Participant is entitled to do so under
applicable law) with respect to all of the Participant's voting or equity
interests in Scientific and Technical Association IRE Polus, a limited liability
company organized under the laws of the Russian Federation (the "Company"), that
now are or hereafter may be beneficially owned by the Participant, and any and
all other voting or equity interests in the Company issued or issuable in
respect thereof on or after the date hereof (collectively, the "Interest"), in
accordance with the terms of this Irrevocable Proxy Coupled With Interest (the
"Proxy"). The Interest beneficially owned by the Participant as of the date of
this Proxy is listed on the final page of this Proxy. Upon the Participant's
execution of this Proxy, any and all prior proxies given by the Participant with
respect to any portion of the Interest are hereby revoked and the Participant
agrees not to grant any subsequent proxies with respect to the Interest, or any
portion thereof.

     IPG Laser is hereby authorized and empowered by the Participant, at any
time, to act as the Participant's true and lawful attorney-in-fact and proxy to
vote the Interest, and to exercise all voting, consent and similar rights of the
Participant with respect to the Interest, including, without limitation, the
power to execute and deliver in the Participant's name any consent, certificate
or other document that may be required by law.

     For a period of three years from the date hereof, the Participant agrees
not to transfer, sell, exchange, pledge or otherwise dispose of or encumber the
Interest, or any portion thereof, or to make any offer or agreement relating
thereto except pursuant to and in compliance with the terms of that certain
Right of First Offer Agreement, dated as of November __, 2006, by and among IPG
Laser, the Company and the Participant. All authority herein conferred shall
survive the death or incapacity of the Participant and any obligation of the
Participant shall be binding upon the heirs, personal representatives,
executors, administrators successors and assigns of the Participant.

     IPG Photonics Corporation, a Delaware corporation ("IPG"), intends to enter
into an Underwriting Agreement (the "Underwriting Agreement") by and between it,
Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Lehman
Brothers Inc. and each of the other Underwriters named in Schedule A thereto
(collectively, the "Underwriters"), pursuant to which IPG intends to consummate
an initial public offering of shares of its common stock from which the
Participant will recognize a substantial benefit. This Proxy is being granted as
a material inducement to the Underwriters to enter into the Underwriting
Agreement and to consummate the transactions described therein, and is therefore
coupled with an interest and is irrevocable.

     This Proxy shall be governed by, construed and enforced in accordance with
the laws of the Russian Federation, without giving effect to any choice or
conflict of law provision or rule (whether of the laws of the Russian Federation
or any other jurisdiction) that would cause the

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application of the laws of any jurisdiction other than the Russian Federation.

     If any term, provision, covenant, representation, warranty or restriction
of this Proxy is held by a court of competent jurisdiction to be invalid, void
or unenforceable, then the remainder of the terms, provisions, covenants,
representations, warranties and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated,
and the Participant and IPG Laser agree to negotiate, in good faith, a legal and
enforceable substitute provision which most nearly effects the parties' intent
in entering into this Agreement.

Dated: November 1, 2006

                                                IGOR SAMARTSEV

                                                /s/ Igor Samartsev
                                                --------------------------------

                                                Interest beneficially owned:
                                                4.9% of the total voting equity
                                                interest in the Company
                                                Place of residence:
                                                Home address:
                                                Passport number and country of
                                                issuance:

Registered Address of IPG Laser:

Siemensstrasse 7
D-57299 Burbach, Germany

                                       9Exhibit
10.1

AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF
SMITH BARNEY AAA ENERGY FUND L.P.

THIS AMENDED AND RESTATED
LIMITED PARTNERSHIP AGREEMENT (this
‘‘Agreement’’) of Smith Barney AAA Energy Fund
L.P., a New York limited partnership (the
‘‘Partnership’’), dated and effective as of
September 30, 2006, is by and among Citigroup Managed Futures LLC, 731
Lexington Avenue - 25th Floor, New York, New York 10022 (the
‘‘General Partner’’), AAA Capital Management
Advisors, Ltd. (the ‘‘Special Limited
Partner’’) and David J. Vogel (the ‘‘Initial
Limited Partner’’) and those other parties who shall
execute this Agreement, whether in counterpart or by attorney-in-fact,
as limited partners. (The Initial Limited Partner and such other
parties are hereinafter collectively referred to as the
‘‘Limited Partners’’. The General Partner and
the Limited Partners may be collectively referred to herein as
‘‘Partners’’.) This Agreement amends and
restates the Partnership's limited partnership agreement, dated
as of January 5, 1998 (the ‘‘Initial
Agreement’’), by and among the General Partner, the Special
Limited Partner and the Initial Limited Partner.

W I T N ES S E T H :

WHEREAS, pursuant to a proxy statement distributed to the Limited
Partners on or about July 11, 2006, the General Partner requested the
Limited Partners' approval of an amendment to the Initial
Agreement in order to change the profit share allocation due to the
Special Limited Partner so that the allocation is made quarterly rather
than annually; and

WHEREAS, the General Partner and the
requisite Limited Partners, consistent with the requirements of Section
18(a) of the Limited Partnership Agreement, have approved such
amendment to the Initial Agreement.

NOW, THEREFORE, in
consideration of the mutual premises and agreements herein made and
intending to be legally bound hereby, the parties hereto agree to amend
and restate the Initial Agreement in its entirety as follows:

1.    Formation and Name.

The parties hereto hereby form
a limited partnership under the New York Revised Uniform Limited
Partnership Act. The name of the limited partnership is Smith Barney
AAA Energy Fund L. P. (the ‘‘Partnership’’).
The General Partner shall execute and file a Certificate of Limited
Partnership in accordance with the provisions of the New York Revised
Limited Partnership Act and execute, file, record and publish, as
appropriate, such amendments, restatements and other documents as are
or become necessary or advisable, as determined by the General Partner.
As used herein, ‘‘Partnership Act’’ means the
New York Revised Uniform Limited Partnership Act.

2.    Principal Office.

The principal office of the
Partnership shall be 731 Lexington Avenue - 25th Floor, New York, New
York 10022 or such other place  as the General Partner may
designate from time to time.

3.    Business.

(a) The
Partnership's business and purpose is to trade, buy, sell or
otherwise acquire, hold or dispose of interests in commodities of all
descriptions (including futures contracts, commodity options, forward
contracts and any other rights or interests pertaining thereto,
including interests in commodity pools). The objective of the
Partnership business is appreciation of its assets through speculative
trading.

(b) The Partnership shall not:

(1) engage in the pyramiding of its positions by
using unrealized profits on existing positions as margin for the
purchase or sale of additional positions in the same or related
commodities;

(2) utilize borrowings
except short-term borrowings if the Partnership takes delivery of cash
commodities; or

(3) permit the churning of its
account.

(c) The Partnership shall make no loans. Assets of the
Partnership will not be commingled with assets of any other entity.
Deposit of assets with a commodity broker or dealer as margin shall not
constitute commingling.

4.    Term, Dissolution and Fiscal
Year.

(a) Term. The term of the Partnership shall
commence on the date the Certificate of Limited Partnership is filed in
the office of the County Clerk of New York County, State of New York,
and shall end as soon as practicable upon the first to occur of the
following: (1) December 31, 2018; (2) receipt by the General Partner of
an election to dissolve the Partnership at a specified time by Limited
Partners owning more than 50% of the Units of Limited
Partnership Interest then outstanding, notice of which is sent by
registered mail to the General Partner not less than 90 days prior to
the effective date of such dissolution; (3) assignment by the General
Partner of all of its interest in the Partnership, withdrawal, removal,
bankruptcy or any other event that causes the General Partner to cease
to be a general partner under the Partnership Act (unless the
Partnership is continued pursuant to Paragraph 17); (4) a decline in
Net Asset Value on any business day after trading to less than $400 per
Unit; or (5) any event which shall make it unlawful for the existence
of the Partnership to be continued.

(b) Dissolution. Upon
dissolution of the Partnership, the assets of the Partnership shall be
distributed to creditors, including any Partners who may be creditors,
to the extent otherwise permitted by law, in satisfaction of
liabilities of the Partnership (whether by payment or the making of
reasonable provision for payment thereof) other than liabilities for
which reasonable provision for payment has been made and liabilities
for distributions to Partners; to Partners and former Partners in
satisfaction of liabilities for distributions; and to Partners first
for the return of their contributions and second respecting their
Partnership interests, in the proportions in which the Partners share
in distributions. Following distributions of the assets of the
Partnership, a Certificate of Cancellation for the Partnership shall be
filed as required by the Partnership Act.

(c) Fiscal
Year. The fiscal year of the Partnership will commence on January 1
and end on December 31 each year (‘‘fiscal
year’’). Each fiscal year of the Partnership is divided
into four fiscal quarters commencing on the first day of January,
April, July and October (‘‘fiscal
quarter’’).

5.    Net Worth of General
Partner.

The General Partner agrees that, at all times after
the termination of the initial offering period of the
Partnership's Units of Limited Partnership Interest described in
Paragraph 11 hereof (the ‘‘Private
Placement’’), so long as it remains a general partner of
the Partnership, it will maintain its Net Worth at an amount not less
than 5% of the total contributions to the Partnership by all
Partners. The General Partner also agrees, with respect to each
additional limited partnership of which it is general partner, to
maintain a net worth (excluding capital contributions to the additional
partnership) at an amount not less than 5% of the total
contributions to the additional limited partnership. In no event will
the General Partner be required to maintain a net worth in excess of
$1,000,000.

For the purposes of this Paragraph 5, Net Worth
shall be based upon current fair market value of the assets of the
General Partner. The requirements of this Paragraph 5 may be modified
if the General Partner obtains an opinion of counsel for the
Partnership that a proposed modification will not adversely affect the
classification of the Partnership as a partnership for federal income
tax purposes and will not violate any state securities or blue sky laws
to which the Partnership may be subject from time to time.

6.    Capital Contributions and Units of Partnership
Interest.

The General Partner shall contribute to the
Partnership, immediately prior to the date on which the Partnership
commences trading operations and as necessary thereafter, an amount at
least equal to the greater of (a) 1% of capital contributions or
(b) $25,000. The General Partner's contribution shall be

evidenced by ‘‘Units of General
Partnership Interest.’’ The General Partner may not make
any transfer or withdrawal of its contribution to the Partnership while
it is General Partner which would reduce its aggregate percentage
interest in the Partnership to less than such required interest in the
Partnership. Any withdrawal of any such excess interest by the General
Partner may be made only upon not less than thirty (30) days'
notice to the Limited Partners prior to the end of a fiscal
quarter.

Interests in the Partnership, other than those of the
General Partner, shall be evidenced by ‘‘Units of Limited
Partnership Interest’’ which the General Partner on behalf
of the Partnership shall, in accordance with the Private Placement
Offering Memorandum and Disclosure Document (the
‘‘Memorandum’’) referred to in Paragraph 11,
sell to persons desiring to become Limited Partners. For each Unit of
Limited Partnership Interest purchased prior to the commencement of
trading operations, a Limited Partner shall contribute $1,000 to
the capital of the Partnership. For any Unit (or partial unit rounded
to four decimal places) of Limited Partnership Interest purchased
thereafter (except as noted below with respect to the Special Limited
Partner), a Limited Partner shall contribute to the capital of the
Partnership an amount equal to the Net Asset Value of a Unit (or
partial unit, as the case may be) of Limited Partnership Interest as of
the close of business on the day preceding the effective date of such
purchase, and shall pay in addition the selling commission, if any,
which must be paid with respect to such purchase. The Special Limited
Partner will contribute advisory services and will receive a quarterly
allocation in Units as described in Paragraph 8. The aggregate of all
contributions shall be available to the Partnership to carry on its
business, and no interest shall be paid on any such contribution. All
subscriptions for Units of Limited Partnership Interest made pursuant
to the Private Placement of the Units of Limited Partnership Interest
must be on the form provided in the Memorandum.

The proceeds
from the sale of the Units of Limited Partnership Interest pursuant to
the Private Placement shall be placed in an escrow account and shall
not be contributed to the capital of the Partnership prior to the
termination of the initial offering period. If subscriptions for at
least 5,000 Units of Limited Partnership Interest shall not have been
received and accepted by the General Partner when the initial offering
period is terminated, the full amount of all subscriptions shall be
returned promptly to the subscribers, and the Certificate of Limited
Partnership may, in the discretion of the General Partner, be canceled.
If subscriptions for at least 5,000 Units of Limited Partnership
Interest shall have been received and accepted by the General Partner
prior to the termination of the initial offering period, the proceeds
thereof shall be contributed to the capital of the Partnership and the
Partnership shall thereafter commence trading operations. All
subscribers shall receive the interest earned on their subscriptions
while held in escrow. All subscribers who have been accepted by the
General Partner shall be deemed admitted as Limited Partners at the
time they are reflected as such in the books and records of the
Partnership.

7.    Allocation of Profits and Losses.

(a) Capital Accounts. A capital account shall be established
for each Partner. The initial balance of each Partner's capital
account shall be the amount of his initial capital contribution to the
Partnership. A Partner's capital account shall be increased by
the amount of any additional capital contributions to the Partnership
by such Partner, and shall be further adjusted as provided in Paragraph
7(b).

(b) Allocations. As of the close of business on the
last day of each month during each fiscal year of the Partnership, and
on such other dates as the General Partner in its discretion shall
determine (each, an ‘‘Allocation Date’’), the
following determinations and allocations shall be made:

(1) The Net Assets of the Partnership (as defined in
Paragraph 7(d)(1)) but before any advisory fees or profit share
allocations as of such date shall be determined.

(2) Monthly advisory fees, if any, payable by the
Partnership as of such date shall then be charged against Net
Assets.

(3) Any increase or decrease in Net
Assets of the Partnership from the previous Allocation Date (or, with
respect to the first calendar month of operations, from the first day
of operations) allocable to Limited Partners or the General Partner, as
the case may be, shall then be credited or charged to the capital
accounts of the Limited Partners or the General Partner, as the case
may be, in the ratio 

that the balance of each such Partner's
capital account bears to the balance of all such relevant
Partners' capital accounts. For the purpose of this Paragraph
7(b)(3), Net Assets shall be determined without regard to (A) any
Profit Share allocations to the Special Limited Partner pursuant to
Paragraph 7(b)(4), (B) distributions and withdrawals described in
Paragraph 7(b)(5), and (C) any contributions made to the Partnership by
a Partner during such month.

(4) As of each
calendar quarter-end, the aggregate amount of net increase in Net
Assets allocated pursuant to Paragraph 7(b)(3) shall be adjusted by
charging the Partnership an amount equal to the Special Limited
Partner's Profit Share allocation payable as of such calendar
quarter-end, pursuant to Paragraph 8 and by crediting such amount to
the Special Limited Partner's capital account.

(5) The amount of any distribution to a Partner and
any amount paid to a Partner upon withdrawal of capital from the
Partnership with respect to such month shall be charged against the
Partner's capital account. Upon liquidation of the Partnership,
the balance of the proceeds of liquidation after payment of Partnership
obligations shall be distributed to the Partners in proportion to their
remaining positive capital account balances after adjustment for prior
distributions and allocations.

(c) Allocations for Tax
Purposes. All items of income, gains, losses, deductions and
credits of the Partnership for each fiscal year will be allocated among
the Partners for income tax purposes in a manner that reflects, as
closely as possible, the amounts and the components credited or debited
to each Partner's capital account pursuant to this Paragraph 7.
Allocations pursuant to this Paragraph 7(c) will not be credited or
debited to capital accounts.

(d) Definitions.

(1) Net Assets. Net Assets of the Partnership
shall mean the total assets of the Partnership, including all cash,
accrued interest and the market value of all open commodity positions
maintained by the Partnership less brokerage charges accrued and less
all other liabilities of the Partnership determined in accordance with
generally accepted accounting principles under the accrual basis of
accounting. The value of a commodity futures or option contract is the
unrealized gain or loss on the contract that is determined by marking
it to the current settlement price for a like contract acquired on the
valuation date. Physical commodities, options, forward contracts and
futures contracts, when no market quote is available, will be valued at
their fair market value as determined in good faith by the General
Partner. U.S. Treasury securities and other interest bearing
obligations will be valued at cost plus accrued interest. Interests in
other commodity pools will be valued at their net asset value as
determined by the pool operator, or, if the General Partner has not
received such determination or believes that fairness so requires, at
fair value determined by the General Partner. Net Assets equals Net
Asset Value.

(2) Net Asset Value per
Unit. The Net Asset Value of each Unit of Limited Partnership
Interest and each Unit of General Partnership Interest shall be
determined by dividing the Net Assets of the Partnership by the
aggregate number of Units of Limited and General Partnership Interest
outstanding.

(e) Expenses and Limitation Thereof. The
Partnership's organizational expenses and the expenses of the
initial private offering of the Units of Limited Partnership Interest
described in Paragraph 11 hereof shall be initially paid by Smith
Barney Inc. (‘‘SB’’) and reimbursed as
discussed in the Memorandum. Subject to the limitations set forth below
in this Paragraph 7(e), the Partnership shall be obligated to pay all
liabilities incurred by it, including, without limitation, all expenses
incurred in connection with its trading activities, and any advisory or
other expenses. The General Partner shall bear all other operating
expenses except legal, accounting, filing, data processing and
reporting fees and extraordinary expenses. Appropriate reserves may be
created, accrued and charged against Net Assets for contingent
liabilities, if any, as of the date any such contingent liability
becomes known to the General Partner.

(f) Limited Liability
of Limited Partners.

(1) Each Unit of
Limited Partnership Interest, when purchased by a Limited Partner,
subject to the qualifications set forth below, shall be fully paid and
non-assessable.

(2) A Limited Partner will
have no liability in excess of his obligation to make contributions to
the capital of the Partnership and his share of the Partnership's
assets and undistributed profits, subject to the qualifications
provided in the Partnership Act.

(g) Return of Limited
Partner's Capital Contribution. Except to the extent that a
Limited Partner shall have the right to withdraw capital through
redemption of Units of Limited Partnership Interest, no Limited Partner
shall have any right to demand the return of his capital contribution
or any profits added thereto, except upon dissolution and termination
of the Partnership. In no event shall a Limited Partner be entitled to
demand and receive property other than cash.

8.    Profit
Share Allocation to the Special Limited Partner.

The Special
Limited Partner shall receive a quarterly profit share (a
‘‘Profit Share’’) allocation to its capital
account in the Partnership in the form of additional Units and/or
partial Units the value of which shall be equal to 20% of the
New Trading Profits generated by the Special Limited Partner on behalf
of the Partnership as of each calendar quarter-end. The Profit Share
allocation shall be made to the Special Limited Partner within twenty
(20) business days following the end of the calendar quarter.

New Trading Profits with respect to a calendar quarter means the
excess, if any, of Net Assets managed by the Special Limited Partner at
the end of the calendar quarter over Net Assets managed by the Special
Limited Partner at the end of the highest previous calendar quarter or
Net Assets allocated to the Special Limited Partner 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 will be attributed
to the Special Limited Partner based on the Special Limited
Partner's proportionate share of Net Assets. Ongoing expenses
above will not include expenses of litigation not involving the
activities of the Special Limited Partner on behalf of the Partnership.
Ongoing expenses include offering and organizational expenses of the
Partnership. Notwithstanding the above, the Profit Share allocable on
September 30, 2006 shall be based on New Trading Profits earned from
January 1, 2006 through September 30, 2006. Interest income earned, if
any, will not be taken into account in computing New Trading Profits
earned by the Special Limited Partner.

If any Profit Share
allocation is made to the Special Limited Partner with respect to New
Trading Profits, and the Partnership thereafter incurs a net loss for a
subsequent period, the Special Limited Partner will retain the Profit
Share previously allocated in respect of New Trading Profits. If Net
Assets allocated to the Special Limited Partner are reduced due to net
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 Special Limited
Partner is eligible to receive another Profit Share. However, the
Special Limited Partner would not be allocated any Profit Share
thereafter until all of such losses were recovered and the Special
Limited Partner achieved additional New Trading Profits.

If the
Partnership is terminated or the Special Limited Partner is removed as
advisor of the Partnership on a date other than a calendar quarter-end,
the Profit Share allocation described above shall be determined and
made as if such date were a calendar quarter-end.

9.    Management of the Partnership.

(a) General.
The General Partner, to the exclusion of all Limited Partners, shall
conduct, control and manage the business of the Partnership, including,
without limitation, the investment of the funds of the Partnership. The
General Partner may, but is not obliged to, delegate its rights, duties
and powers hereunder, including but not limited to the duty to make
trading decisions for the Partnership. The General Partner has
initially selected AAA Capital Management Inc. to make trading
decisions for the Partnership pursuant to an Advisory Agreement. Except
as provided herein, no Partner shall be entitled to any salary, draw or
other compensation from the Partnership. Each Limited Partner hereby
undertakes to advise the General Partner of such additional information
as may be deemed by the General Partner to be required or appropriate
to open and maintain an account or accounts with commodity brokerage
firms for the purpose of trading in commodity futures contracts.

Subject to Paragraph 5 hereof, the General
Partner may engage in other business activities and shall not be
required to refrain from any other activity nor disgorge any profits
from any such activity, whether as general partner of additional
partnerships for investment in commodity futures contracts or
otherwise. The General Partner may engage and compensate on behalf of
the Partnership from funds of the Partnership, such persons, firms or
corporations, including any affiliated person or entity, as the General
Partner in its sole judgment shall deem advisable for the conduct and
operation of the business of the Partnership.

No person dealing
with the General Partner shall be required to determine its authority
to make any undertaking on behalf of the Partnership, nor to determine
any fact or circumstance bearing upon the existence of its
authority.

The General Partner shall monitor the trading and
performance of any trading advisor for the Partnership and shall not
permit the ‘‘churning’’ of the
Partnership's account. The General Partner is authorized to enter
into the Customer Agreement with SB, and the Advisory Agreement with
AAA Capital Management Inc., each as described in the Memorandum and to
cause the Partnership to pay the fees and/or allocations described
therein and to negotiate Customer and Advisory Agreements in the future
on those or other terms. The General Partner may take such other
actions as it deems necessary or desirable to manage the business of
the Partnership, including, but not limited to, the following: opening
bank accounts with state or national banks; paying, or authorizing the
payment of expenses of the Partnership, such as advisory fees, legal
and accounting fees, printing and reporting fees, and registration and
other fees of governmental agencies; and investing or directing the
investment of funds of the Partnership not being utilized as margin
deposits.

The General Partner shall maintain a list of the names
and addresses of, and interests owned by, all Partners, a copy of which
shall be furnished to Limited Partners upon request either in person or
by mail and upon payment of the cost of reproduction and mailing for a
purpose reasonably related to such Limited Partner's interest as
a limited partner in the Partnership, and such other books and records
relating to the business of the Partnership as it deems necessary or
advisable at the principal office of the Partnership. The General
Partner shall retain such records for a period of not less than six
years. The Limited Partners, shall be given reasonable access to the
books and records of the Partnership for a purpose reasonably related
to such Limited Partner's interest as a limited partner in the
Partnership.

Except as provided herein and in the Memorandum,
the Partnership shall not enter into any contract with any of its
affiliates or with any trading advisor which has a term of more than
one year. Except as provided herein and in the Memorandum: (1) no
person may receive, directly or indirectly, any advisory fee for
investment advice or management who shares or participates in commodity
brokerage commissions or fees from transactions for the Partnership;
(2) no broker may pay, directly or indirectly, rebates or give ups to
any trading advisor; and (3) such prohibitions shall not be
circumvented by any reciprocal business arrangements. On loans made
available to the Partnership by the General Partner or any of its
affiliates, the lender may not receive interest in excess of its
interest costs, nor may the lender receive interest in excess of the
amounts which would be charged the Partnership (without reference to
the lender's financial abilities or guarantees) by unrelated
banks on comparable loans for the same purpose and the lender shall not
receive points or other financing charges or fees regardless of the
amounts.

10.    Audits and Reports to Limited Partners.

The Partnership books and records shall be audited annually by
independent accountants. The Partnership will cause each Partner to
receive (i) within 90 days after the close of each fiscal year, audited
financial statements, including a balance sheet and statements of
income and partners' equity for the fiscal year then ended, and
(ii)  within 75 days after the close of each fiscal year such tax
information as is necessary for him to complete his federal income tax
return. In addition, within 30 days of the end of each month the
Partnership will provide each Limited Partner with reports showing Net
Assets and Net Asset Value per Unit of Limited and General Partnership
Interest as of the end of such month, as well as information relating
to the fees and other expenses incurred by the Partnership during such
month. Both annual and monthly reports shall include such additional
information as the Commodity Futures Trading Commission may require
under the Commodity Exchange Act to be given to participants in
commodity 

pools such as the Partnership. The General
Partner shall calculate the Net Asset Value per Unit of
Partnership Interest daily and shall make such information available
upon the request of a Limited Partner for a purpose reasonably related
to such Limited Partner's interest as a Limited Partner in the
Partnership.

In addition, if any of the following events occur,
notice of such event shall be mailed to each Limited Partner within
seven business days of the occurrence of the event: (i) a decrease in
the Net Asset Value of a Unit of Limited Partnership Interest to $400
or less as of the end of any trading day; (ii) any change in trading
advisors; (iii) any change in the General Partner; (iv) any change in
commodity brokers; or (v) any material change in the
Partnership's trading policies or in an advisor's trading
strategies.

11.    Transfer and Redemption of Units.

(a) Initial Limited Partner. As of the day after trading
commences, the Initial Limited Partner may redeem his Unit for $1,000
and withdraw from the Partnership.

(b) Transfer. Each
Limited Partner expressly agrees that he will not assign, transfer or
dispose of, by gift or otherwise, any of his Units of Limited
Partnership Interest or any part or all of his right, title and
interest in the capital or profits of the Partnership without the
consent of the General Partner except (i) in the case of an individual
Limited Partner, disposition of Units by last will and testament or by
virtue of the laws of descent and distribution and (ii) in the case of
a Limited Partner that is not an individual, disposition of Units upon
liquidation, dissolution or other termination of the entity that is a
Limited Partner. No transfer or assignment shall be permitted unless
the General Partner is satisfied that (i) such transfer or assignment
would not violate the Securities Act of 1933 or any state securities
law and (ii) notwithstanding such transfer or assignment, the
Partnership will continue to be classified as a Partnership under the
Internal Revenue Code. No assignment, transfer or disposition permitted
by this Agreement shall be effective against the Partnership or the
General Partner until the first day of the quarter next succeeding the
quarter in which the General Partner gives its consent, except as
otherwise provided in this sub-paragraph 11(b). Any assignment,
transfer or disposition by an assignee of Units of Limited Partnership
Interest of his interest in the capital or profits of the Partnership
shall not be effective against the Partnership or the General Partner
until the first day of the quarter next succeeding the quarter in which
the General Partner gives its consent. If an assignment, transfer or
disposition occurs by reason of the death or by termination of a
Limited Partner or assignee, written notice must be given to the
General Partner by the duly authorized representative of the estate of
the Limited Partner or assignee and shall be supported by such proof of
legal authority and valid assignment as may reasonably be requested by
the General Partner. Any such assignee shall become a substituted
Limited Partner only upon the consent of the General Partner (which
consent may be withheld at its sole and absolute discretion), upon the
execution of a Power of Attorney by such assignee appointing the
General Partner as his attorney-in-fact in the form contained in
Paragraph 14 hereof. The estate or any beneficiary of a deceased
Limited Partner or assignee shall have no right to withdraw any capital
or profits from the Partnership except by redemption of Units of
Limited Partnership Interest. A substituted Limited Partner shall have
all the rights and powers and shall be subject to all the restrictions
and liabilities of a limited partner of the Partnership. A substituted
Limited Partner is also liable for the obligations of his assignor to
make contributions to the Partnership, but shall not be liable for the
obligations of his assignor under the Partnership Act to return
distributions received by the assignor; provided, however, that a
substituted Limited Partner shall not be obligated for liabilities
unknown to him at the time he became a substituted Limited Partner and
which could not be ascertained from this Agreement. Each Limited
Partner agrees that with the consent of the General Partner any
assignee may become a substituted Limited Partner without the approval
of any Limited Partner. If the General Partner withholds consent, an
assignee shall not become a substituted Limited Partner and shall not
have any of the rights of a Limited Partner except that the assignee
shall be entitled to receive that share of capital or profits and shall
have that right of redemption to which his assignor would otherwise
have been entitled. An assigning Limited Partner shall remain liable to
the Partnership as provided in the Partnership Act, regardless of
whether his assignee becomes a substituted Limited Partner. The
transfer of Units of Limited Partnership Interest shall be subject to
all applicable securities laws. The transferor or assignor shall bear
the cost related to such transfer or assignment. Certificates
representing Units of Limited Partnership Interest may bear appropriate
legends to the foregoing effect.

(c) Redemption. Beginning with the
first full month ending at least three months after trading commences,
a Limited Partner (or any assignee thereof) may withdraw all or part of
his capital contribution and undistributed profits, if any, from the
Partnership in multiples of the Net Asset Value of a Unit of Limited
Partnership Interest (such withdrawal being herein referred to as
‘‘redemption’’) as of the last day of a month
(the ‘‘Redemption Date’’) after a request for
redemption has been made to the General Partner; provided that all
liabilities, contingent or otherwise, of the Partnership, except any
liability to Partners on account of their capital contributions, have
been paid or there remains property of the Partnership sufficient to
pay them. As used herein, ‘‘request for
redemption’’ shall mean a written or oral request in a form
specified by the General Partner and received by the General Partner at
least ten days in advance of the Redemption Date. The General Partner,
in its discretion, may waive the ten day notice requirement. A form of
Request for Redemption is included in the Memorandum referred to in
Paragraph 11. Additional forms of Request for Redemption may be
obtained by written request to the General Partner. Redemption of
partial Units will be permitted at the General Partner's
discretion. Upon redemption, a Limited Partner (or any assignee
thereof) shall receive, per Unit of Limited Partnership Interest
redeemed, an amount equal to the Net Asset Value of a Unit of Limited
Partnership Interest as of the Redemption Date, less any amount owing
by such Partner (and his assignee, if any) to the Partnership. If
redemption is requested by an assignee, all amounts owed by the Partner
to whom such Unit of Limited Partnership Interest was sold by the
Partnership as well as all amounts owed by all assignees of such Unit
of Limited Partnership Interest shall be deducted from the Net Asset
Value of such Unit of Limited Partnership Interest upon redemption by
any assignee. Payment will be made within 10 business days after the
Redemption Date. The General Partner may temporarily suspend
redemptions if necessary in order to liquidate commodity positions in
an orderly manner and may permit less frequent redemptions if it has
received an opinion from counsel that such action is advisable to
prevent the Partnership from being considered a publicly traded
partnership by the Internal Revenue Service.

The General Partner
may, at its sole discretion and upon notice to the Limited Partners,
declare a special Redemption Date on which date Limited Partners may
redeem their Units at Net Asset Value per Unit, provided that the
Limited Partners submit requests for redemption in a form acceptable to
the General Partner.

The General Partner may require that any
Limited Partner redeem his Units on 10 days' notice to the
Limited Partner if, in the sole discretion of the General Partner, it
is in the best interests of the Partnership to require such
redemption.

12.    Private Placement of Units of Limited
Partnership Interest.

The General Partner on behalf of the
Partnership shall (i)  cause to be filed a Private Placement
Offering Memorandum and Disclosure Document, and such amendments
thereto as the General Partner deems advisable, with the United States
Commodity Futures Trading Commission for private placement of the Units
of Limited Partnership Interest, and (ii) qualify the Units of Limited
Partnership Interest for sale under the securities laws of such States
of the United States as the General Partner shall deem advisable. The
General Partner may make such other arrangements for the sale of the
Units of Limited Partnership Interest as it deems appropriate
including, without limitation, the execution on behalf of the
Partnership of an agency agreement with SB as an agent of the
Partnership for the offer and sale of the Units as contemplated in the
Memorandum.

13.    Admission of Additional Partners.

After the Private Placement of the Units of Limited Partnership
Interest has been terminated by the General Partner, no additional
General Partner will be admitted to the Partnership except as described
in Paragraph 18(c). The General Partner may take such actions as may be
necessary or appropriate at any time to offer new Units or partial
Units and to admit new or substituted Limited Partners to the
Partnership. All subscribers who have been accepted by the General
Partner shall be deemed admitted as Limited Partners at the time they
are reflected as such in the books and records of the Partnership.

14.    Special Power of Attorney.

Each Limited Partner
does irrevocably constitute and appoint the General Partner, and each
other person or entity that shall after the date of this Agreement
become a general partner of the Partnership, 

with the power of substitution, as his true
and lawful attorney-in-fact, in his name, place and stead, to execute,
acknowledge, swear to, file and record in his behalf in the appropriate
public offices and publish (i) this Agreement and a Certificate of
Limited Partnership, including amendments and/or restatements thereto;
(ii) all instruments which the General Partner deems necessary or
appropriate to reflect any amendment, change or modification of the
Partnership in accordance with the terms of this Agreement, including
any instruments necessary to dissolve the Partnership; (iii)
Certificates of Assumed Name; and (iv) Customer Agreements with SB or
other commodity brokerage firms. The Power of Attorney granted herein
shall be irrevocable and deemed to be a power coupled with an interest
and shall survive and not be affected by the subsequent incapacity,
disability or death of a Limited Partner. Each Limited Partner hereby
agrees to be bound by any representation made by the General Partner
and by any successor thereto, acting in good faith pursuant to such
Power of Attorney and each Limited Partner hereby waives any and all
defenses which may be available to contest, negate or disaffirm the
action of the General Partner and any successor thereto, taken in good
faith under such Power of Attorney. In the event of any conflict
between this Agreement and any instruments filed by such attorney
pursuant to the Power of Attorney granted in this Paragraph, this
Agreement shall control.

15.    Withdrawal of a Partner.

The Partnership shall be dissolved and its affairs wound up upon the
assignment by the General Partner of all of its interest in the
Partnership, withdrawal, removal, bankruptcy, or any other event that
causes the General Partner to cease to be a general partner under the
Partnership Act (unless the Partnership is continued pursuant to
Paragraph 18). The General Partner shall not withdraw from the
Partnership without giving the Limited Partners ninety (90) days'
prior written notice. The death, incompetency, withdrawal, insolvency
or dissolution of a Limited Partner shall not (in and of itself)
dissolve the Partnership, and such Limited Partner, his estate,
custodian or personal representative shall have no right to withdraw or
value such Limited Partner's interest in the Partnership except
as provided in Paragraph 11 hereof. Each Limited Partner (and any
assignee of such Partner's interest) expressly agrees that, in
the event of his death, he waives on behalf of himself and his estate,
and he directs the legal representative of his estate and any person
interested therein to waive, the furnishing of any inventory,
accounting, or appraisal of the assets of the Partnership and any right
to an audit or examination of the books of the Partnership; provided,
however, that this waiver in no way limits the rights of the Limited
Partners or their representatives to have access to the
Partnership's books and records as described in Paragraph 9
hereof.

16.    No Personal Liability for Return of
Capital.

The General Partner, subject to Paragraph 17 hereof,
shall not be personally liable for the return or repayment of all or
any portion of the capital or profits of any Partner (or assignee), it
being expressly agreed that any such return of capital or profits made
pursuant to this Agreement shall be made solely from the assets (which
shall not include any right of contribution from the General Partner)
of the Partnership.

17.    Indemnification.

(a) The
General Partner and its Affiliates shall have no liability to the
Partnership or to any Partner for any loss suffered by the Partnership
which arises out of any action or inaction of the General Partner or
its Affiliates if the General Partner or its Affiliates in good faith
determined that such course of conduct was in the best interest of the
Partnership and such course of conduct did not constitute negligence or
misconduct of the General Partner or its Affiliates. To the fullest
extent permitted by law, the General Partner and its Affiliates shall
be indemnified by the Partnership against any losses, judgments,
liabilities, expenses and amounts paid in settlement of any claims
sustained by them in connection with the Partnership, provided that the
same were not the result of negligence or misconduct on the part of the
General Partner or its Affiliates.

(b) Notwithstanding (a)
above, the General Partner and its Affiliates shall not be indemnified
for any losses, liabilities or expenses arising from or out of an
alleged violation of federal or state securities laws in connection
with the offer or sale of Units.

(c) The Partnership shall not incur the
cost of that portion of any insurance which insures any party against
any liability the indemnification of which is herein prohibited.

(d) For purposes of this Paragraph 16, the term
‘‘Affiliates’’ shall mean any person performing
services on behalf of the Partnership and acting within the scope of
the General Partner's authority as set forth in this Agreement
who: (1) directly or indirectly controls, is controlled by, or is under
common control with the General Partner; or (2) owns or controls
10% or more of the outstanding voting securities of the General
Partner; or (3) is an officer or director of the General Partner.

(e) The provision of advances from Partnership funds to the General
Partner and its Affiliates for legal expenses and other costs incurred
as a result of any legal action initiated against the General Partner
by a Limited Partner of the Partnership is prohibited.

(f) Any
indemnification under subparagraph (a) above, unless ordered by a
court, shall be made by the Partnership only as authorized in the
specific case and only upon a determination by independent legal
counsel in a written opinion that indemnification of the General
Partner or its Affiliates is proper in the circumstances because it has
met the applicable standard of conduct set forth in subparagraph (a)
above.

18.    Amendments; Meetings.

(a) Amendments
with Consent of the General Partner. If at any time during the term
of the Partnership the General Partner shall deem it necessary or
desirable to amend this Agreement (including the Partnership's
basic investment policies set forth in paragraph 3(b) hereof), such
amendment shall be effective only if approved in writing by the General
Partner and, except as specified in this sub-section (a), by Limited
Partners owning more than  50% of the Units of Limited
Partnership Interest then outstanding and if made in accordance with
the Partnership Act. Any such supplemental or amendatory agreement
shall be adhered to and have the same effect from and after its
effective date as if the same had originally been embodied in and
formed a part of this Agreement.

The General Partner may amend
this Limited Partnership Agreement without the consent of the Limited
Partners in order (i) to clarify any clerical inaccuracy or ambiguity
or reconcile any inconsistency (including any inconsistency between
this Limited Partnership Agreement and the Memorandum); (ii) to delete
or add any provision of or to the Limited Partnership Agreement
required to be deleted or added by the staff of any federal or state
agency; or (iii) to make any amendment to the Limited Partnership
Agreement which the General Partner deems advisable (including but not
limited to amendments necessary to effect the allocations proposed
herein) provided that such amendment is not adverse to the Limited
Partners, or is required by law.

The General Partner may,
however, change the trading policies in paragraph 3(b) of this
Agreement without the approval of the Limited Partners when such change
is deemed to be in the best interests of the Partnership. In addition,
if the General Partner determines to offer Units to the public in the
future, the General Partner may amend this Agreement as necessary to
effect such public offering without obtaining the consent of the
Limited Partners, provided, however, that such amendments are deemed to
be in the best interests of the Limited Partners. Amendments that are
consistent with the North American Securities Administrators
Association's Guidelines for the Registration of Commodity Pools
will be presumed to be in the best interests of the Limited
Partners.

(b) Meetings. Upon receipt of a written
request, signed by Limited Partners owning at least 10% of the
Units of Limited Partnership Interest then outstanding, that a meeting
of the Partnership be called to vote upon any matter which the Limited
Partners may vote upon pursuant to this Agreement, the General Partner
shall, by written notice to each Limited Partner of record mailed
within fifteen (15) days after receipt of such request, call a meeting
of the Partnership. Such meeting shall be held at least thirty (30) but
not more than sixty (60) days after the mailing of such notice, and
such notice shall specify the date, a reasonable place and time, and
the purpose of such meeting.

(c) Amendments and Actions
without Consent of the General Partner. At any meeting called
pursuant to Paragraph 18(b), upon the approval by an affirmative vote
(which may be in person or by proxy) of Limited Partners owning more
than 50% of the outstanding Units of Limited Partnership
Interest, the following actions may be taken: (i) this Agreement may be
amended in accordance with and 

only to the extent permissible under the
Partnership Act; (ii) the Partnership may be dissolved; (iii) the
General Partner may be removed and a new general partner may be
admitted immediately prior to the removal of the General Partner
provided that the new general partner of the Partnership shall continue
the business of the Partnership without dissolution; (iv) if the
General Partner elects to withdraw from the Partnership, a new general
partner or general partners may be admitted immediately prior to the
withdrawal of the General Partner provided that the new general partner
of the Partnership shall continue the business of the Partnership
without dissolution; (v) any contracts with the General Partner, any of
its Affiliates or any commodity trading advisor to the Partnership may
be terminated on sixty days' notice without penalty; and (vi) the
sale of all of the assets of the Partnership may be approved; provided,
however, that no such action may be taken unless the Partnership has
been furnished with an opinion of counsel that the action to be taken
will not adversely affect the liability of the Limited Partners and
that the action is permitted by the Partnership Act.

(d)
Continuation. Upon the assignment by the General Partner of all
of its interest in the Partnership, the withdrawal, removal, bankruptcy
or any other event that causes the General Partner to cease to be a
general partner under the Partnership Act, the Partnership is not
dissolved and is not required to be wound up by reason of such event
if, (i) there is a remaining general partner who continues the business
of the Partnership or (ii) within ninety (90) days after such event,
all remaining Partners agree in writing to continue the business of the
Partnership and to the appointment, effective as of the date of such
event, of a successor General Partner.

19.    Governing
Law.

The validity and construction of this Agreement shall be
determined and governed by the laws of the State of New York.

20.    Miscellaneous.

(a) Priority among Limited
Partners. With the exception of the Profit Share allocation to the
Special Limited Partner, no Limited Partner shall be entitled to any
priority or preference over any other Limited Partner with regard to
the return of contributions of capital or to the distribution of any
profits or otherwise in the affairs of the Partnership.

(b)
Notices. All notices under this Agreement, other than reports by
the General Partner to the Limited Partners, shall be in writing and
shall be effective upon personal delivery, or, if sent by registered or
certified mail, postage prepaid, addressed to the last known address of
the party to whom such notice is to be given, upon the deposit of such
notice in the United States mail. Reports by the General Partner to the
Limited Partners shall be in writing and shall be sent by first class
mail to the last known address of each Limited Partner.

(c)
Binding Effect. This Agreement shall inure to and be binding
upon all of the parties, their successors, permitted assigns,
custodians, estates, heirs and personal representatives. For purposes
of determining the rights of any Partner or assignee hereunder, the
Partnership and the General Partner may rely upon the Partnership
records as to who are Partners and assignees and all Partners and
assignees agree that their rights shall be determined and that they
shall be bound thereby, including all rights which they may have under
Paragraph 17 hereof.

(d) Captions. Captions in no way
define, limit, extend or describe the scope of this Agreement nor the
effect of any of its provisions.

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day first mentioned above.

							
	General
Partner:			Initial Limited Partner:
	Citigroup Managed Futures
LLC			 
	By:			/s/
David J. Vogel			/s/ David J.
Vogel
	 			David J. Vogel
President and
Director			David J.
Vogel
	

				
	Special
Limited Partner:
	AAA Capital Management
Advisors, Ltd.
	By:			/s/ A. Anthony
Annunziato
	 			A. Anthony Annunziato

President
	

Limited Partners:

All Limited
Partners now and hereafter admitted as limited partners of the
Partnership pursuant to powers of attorney now and hereafter executed
in favor of and delivered to the General Partner.

				
	By:
CITIGROUP MANAGED FUTURES, LLC.
	ATTORNEY-IN-FACT
	By:			/s/ David J.
Vogel
	 			David J. Vogel
 President and
Director

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