Document:

Exhibit 10.1
	 

	 
		MANAGEMENT AGREEMENT
	 

	 
		AGREEMENT made as of the 31st day
		of December, 2005 among CITIGROUP MANAGED FUTURES LLC, a Delaware limited
		liability company (“CMF”), SMITH BARNEY WARRINGTON FUND L.P., a New
		York limited partnership (the “Partnership”) and
		WARRINGTON MGT., L.P., a Delaware
		limited partnership (the “Advisor”).
	 

	 
		W I T N E
		S S E T H :
	 

	 
		WHEREAS, CMF is the general partner of Smith
		Barney Warrington Fund L.P., a limited partnership organized for the purpose of
		speculative trading of commodity interests, including futures contracts,
		options, swaps and forward contracts on U.S. and non-U.S. markets 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) Upon the commencement of trading operations by the
		Partnership and 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 and forward
		contracts. The Advisor may also engage in swaps transactions and other
		derivative transactions on behalf of the Partnership with the prior approval of
		CMF. 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
		Private Placement Offering Memorandum and Disclosure Document to be dated on or
		about December 31, 2005, as supplemented (the “Memorandum”), 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 Core
		Trading 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 Memorandum 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 August 1, 2005 as filed with the NFA.
		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 any and 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 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 Memorandum 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. CMF shall, within a reasonable time, change the
		name of the Partnership in the event that the Advisor no longer acts as the
		sole advisor to the Partnership. 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 Memorandum. 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.
	 

	 
		 
	 

	 
		 
	 

	 
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		(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 any filings required
		by Federal or state law or NFA rule or order. Notwithstanding Paragraphs 1(d)
		and 4(d) of this Agreement, the Advisor is not 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 Paragraph 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 Paragraph 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 (i) 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 and (ii) the
		Advisor will be liable to the Partnership with respect to losses incurred due
		to errors committed or caused by any executing broker (other than any CMF
		affiliate) selected by the Advisor, (it also being understood that CMF, with
		the assistance of the Advisor, will first attempt to recover such losses from
		the executing broker).
	 

	 
		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 
	 

	 
		 
	 

	 
		 
	 

	 
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		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 (i) pay the Advisor 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; and (ii) allocate to the Advisor a
		quarterly profit share allocation (a “Profit Share”) to its capital
		account in the Partnership equal to 20% of New Trading Profits (as such term is
		defined in the Limited Partnership Agreement) earned by the Advisor for the
		Partnership during each calendar quarter in the form of Units of Limited
		Partnership Interest (as such term is defined in the Limited Partnership
		Agreement).
	 

	 
		(b) “Net Assets” shall have the
		meaning set forth in Section 7(d)(1) of the Limited Partnership Agreement dated
		as of November 28, 2005 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 Profit
		Shares allocable as of the date of such determination.
	 

	 
		(c) 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 month 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.
	 

	 
		(d) 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 on its own behalf and on behalf of the
		Partnership acknowledges 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.
	 

	 
		 
	 

	 
		 
	 

	 
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		(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 in writing 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, 2006. 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 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 of Limited Partnership Interest 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 of Limited Partnership Interest 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) 
	 

	 
		 
	 

	 
		 
	 

	 
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		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) Scott C. Kimple 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 Memorandum are changed
		in such manner that the Advisor reasonably believes will adversely affect the
		performance of its trading strategies; (ii) after June 30, 2006; 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 Paragraph 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
		no indemnification shall be available from the Partnership if such
		indemnification is prohibited by Section 16 of the Limited 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 
	 

	 
		 
	 

	 
		 
	 

	 
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		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 Paragraph 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,
		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 
	 

	 
		 
	 

	 
		 
	 

	 
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		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 Memorandum are accurate in all material respects and as to
		them the Memorandum 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 with respect to Table B and other pro forma or
		hypothetical performance information in the in the Memorandum, 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 Memorandum will, after review and approval of such
		references by the Advisor prior to the use of such Memorandum in connection
		with the offering of the Partnership’s units, be accurate in all material
		respects.
	 

	 
		(ii) The information with respect to the
		Advisor set forth in the actual performance tables in the Memorandum 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. 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 and will provide the report thereon to CMF.
	 

	 
		(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.
	 

	 
		(iv) The Advisor is a limited partnership
		duly organized, validly existing and in good standing under the laws of the
		State of Delaware and has full limited partnership power and authority to enter
		into this Agreement and to provide the services required of it
		hereunder.
	 

	 
		 
	 

	 
		 
	 

	 
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		(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. 
	 

	 
		(viii) In the event that the Advisor forms
		another commodity pool unrelated to CMF with substantially similar investors,
		whether or not the Advisor terminates this Agreement or continues trading for
		the Partnership, the Advisor shall pay to CMF all expenses incurred by CMF,
		Citigroup Global Markets Inc. (“CGM”) and the Partnership in
		connection with the organization and offering of the Partnership, including but
		not limited to attorneys’, accountants’ and filing fees, to the
		extent that CMF and CGM have not previously been reimbursed by the
		Partnership.
	 

	 
		(ix) The Advisor will make no
		representations, other than those contained in the Memorandum, to investors or
		prospective investors in the Partnership with respect to the offering and sale
		of Units in the Partnership without the prior written approval of CMF.
	 

	 
		(b) CMF represents and warrants for itself
		and the Partnership that:
	 

	 
		(i) The Memorandum (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 Memorandum, made in reliance upon, and in
		conformity with, information furnished to CMF by or on behalf of the Advisor
		expressly for use in the Memorandum (it being understood that the hypothetical
		and pro forma adjustments in Table B 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.
	 

	 
		 
	 

	 
		 
	 

	 
		- 9 -
	 

	 
		 
	 

	 
	 

	 

	 
		(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.
	 

	 
		(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 laws,
		including rules and regulations of the CFTC, NFA 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. The
		Advisor will provide CMF with copies of any correspondence from or to the CFTC,
		NFA or any commodity exchange in connection with an investigation or audit of
		the Advisor’s business activities.
	 

	 
		(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 $500,000 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 laws, including rules and regulations of the CFTC, NFA and/or
		the commodity exchange on which any particular transaction is executed.
	 

	 
		 
	 

	 
		 
	 

	 
		- 10 -
	 

	 
		 
	 

	 
	 

	 

	 
		(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.
	 

	 
		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
	 

	 
		731 Lexington Avenue, 25th Floor
		
	 

	 
		New York, New York 10022
	 

	 
		Attention: David J. Vogel
	 

	 
		If to the Advisor:
	 

	 
		Warrington Mgt., L.P.
	 

	 
		12377 Merit Drive—Suite 800
	 

	 
		Dallas, TX 75251
	 

	 
		Attention: Scott C. Kimple
	 

	 
		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.
	 

	 
		 
	 

	 
		 
	 

	 
		- 11 -
	 

	 
		 
	 

	 
	 

	 

	 
		15. NO THIRD PARTY BENEFICIARIES. There are no third party beneficiaries to this
		Agreement.
	 

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

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  CITIGROUP MANAGED FUTURES LLC
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By
				

			 	
				
				  
 /s/ David J. Vogel
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  David J. Vogel

				  President and Director
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  SMITH BARNEY WARRINGTON FUND
				  L.P.
  
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By:
				

			 	
				
				  Citigroup Managed Futures
				  LLC
 (General Partner)
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By
				

			 	
				
				  
 /s/ David J. Vogel
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  David J. Vogel

				  President and Director
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  WARRINGTON MGT., L.P.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By
				

			 	
				
				  
 /s/ Scott C. Kimple
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Scott C. Kimple

				  President
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		- 12 -Exhibit 10.2
	 

	 
		

	 

	 
		Citigroup Managed Futures
 Account Agreement and
		Forms
	 

	 
		Smith Barney Warrington Fund L.P.
	 

	 
		Citigroup Global Markets Inc.
	 

	 
		
 

	 

	 
		

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		Part I
 
 Futures Account Agreement
	 

	 
		This Futures Account Agreement (“Agreement”) between
		Citigroup Global Markets Inc.  (“CGM”) and Smith
		Barney Warrington Fund L.P. (“Customer”), shall govern
		Customer’s futures account (the “Account”) with CGM
		relating to the purchase and sale of futures contracts (“Futures
		Contracts”), options on futures contracts and commodities
		(“Options Contracts”), and, if applicable, over the counter
		purchases and sales of coins, bullion, and metals, energy, and
		foreign currencies (all collectively, including Futures Contracts and
		Options Contracts, “Contracts”).
	 

	 
		1. Customer Representations.  Customer represents
		that:  (a) it may lawfully and is duly authorized and empowered
		to enter into this Agreement and to effect purchases and sales of
		Contracts; (b) its trading in Contracts hereunder violates no
		statute, rule, regulation, decree, or internal policy to which
		Customer is subject or bound or any of Customer’s charter
		documents; (c) this Agreement is binding on Customer and enforceable
		against Customer in accordance with its terms; (d) all necessary
		approvals and consents have been obtained; (e) Customer is in
		compliance with any applicable registration requirements of the
		Commodity Exchange Act, as amended (“CEA”) and rules of the
		National Futures Association (“NFA”); and (f) except as
		disclosed in writing by Customer or provided for in this Agreement,
		no one has an ownership interest in or control over the Account other
		than Customer.  The representations in this Agreement shall be
		continuing representations during the term of the Agreement.
	 

	 
		2. CGM Representations.  CGM represents that:
		 (a) this Agreement is binding on CGM and enforceable against
		CGM in accordance with its terms; (b) it is, and it or its successors
		shall remain during the term of this Agreement, duly registered as a
		Futures Commission Merchant; (c) CGM will accept and hold all margin
		deposited with CGM by Customer subject to the terms of this
		Agreement; (d) in accepting and holding margin on behalf of Customer,
		CGM will comply with the segregation requirements of the CEA and
		rules thereunder to the extent applicable; and (e) if Customer is an
		Investment Company registered under the Investment Company Act of
		1940, CGM shall (i) promptly notify Customer of credit balances in
		the Account payable to Customer and, if such credit balance is free
		of obligation, pay such credit balance to Customer no later than the
		next business day following the day funds are received by CGM other
		than de minimus amounts Customer and CGM agree need not be paid, and
		(ii) promptly furnish to the Securities and Exchange Commission
		(“SEC”) copies or extracts of CGM’s records pertaining
		to Customer’s assets as the SEC may lawfully request.  The
		representations in this Agreement shall be continuing representations
		during the term of the Agreement.
	 

	 
		3. Role of the Parties; Applicable Law.  The
		parties agree that:
	 

	 
		(a) CGM is acting hereunder solely as a broker for Customer
		(except when Customer engages in certain over the counter
		transactions in coins, bullion, metals, and spot and forward foreign
		currency or engages in a block trade with CGM as principal), CGM is
		not acting as a fiduciary to Customer, and CGM has no discretionary
		authority or control over the Account.  Neither CGM nor any
		affiliate of CGM guarantees the performance of any contract market,
		clearinghouse or other third party under any Contract;
	 

	 
		(b) CGM is authorized, in its discretion, to employ clearing
		members (including, without limitation, on exchanges of which CGM is
		not a member), floor brokers and other agents in connection with the
		execution, carrying, clearance, delivery and settlement of any
		purchase or sale of Contracts;
	 

	 
		(c) Customer must specify at the time an order is placed the
		exchange and/or market upon which CGM will execute an order for the
		Account.  Customer acknowledges that CGM or its affiliates may
		have an ownership interest in any exchange or clearinghouse;
	 

	 
		(d) All transactions on behalf of Customer shall be subject to
		the constitution, bylaws, rules, regulations, customs, usages,
		rulings and interpretations of the relevant exchange, clearinghouse,
		and any relevant self-regulatory organization, and all applicable
		governmental laws and regulations as amended from time to time
		(“Applicable Law”); Customer shall comply with Applicable
		Law and with such additional procedures as CGM may reasonably and
		lawfully establish, including those that relate to limits on the size
		of Customer’s positions, exercise of options, allocations of
		exercise notices, and the manner of delivery under any Contract.
		 Without limiting the foregoing, CGM may in its sole discretion
		limit the size of positions in the Account, decline to accept any
		order or transaction, and require that the Account be transferred to
		another firm;
	 

	 
		
 

	 

	 
		Page 2 of 18
	 

	 
		

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		(e)  Customer shall provide to CGM such financial
		information regarding Customer as CGM may from time to time
		reasonably request.  Customer shall further provide to CGM such
		information, documentation, or both regarding Customer’s
		identity as CGM may reasonably request.  Customer understands
		and agrees that CGM will verify Customer’s identity and may, if
		necessary, request verification of Customer’s identity from
		third parties as required by Applicable Law, including but not
		limited to the USA Patriot Act.

	 

	 
		

	 

	 
		4. Additional Customer Obligations.
	 

	 
		(a) As soon as practicable following the conclusion of the
		Initial Offering Period (as defined in the Private Placement Offering
		Memorandum and Disclosure Document of the Customer), the Customer
		shall deposit or cause to be deposited the capital contributions in
		the Account.  The Customer will maintain all of its assets, as
		they from time to time exist, in the Account, except for such amounts
		as may be necessary or desirable to be maintained in a bank account
		or with a broker to facilitate OTC currency transactions and the
		payment of Customer expenses, redemptions, or distributions.
		 Citigroup Managed Futures (“CMF”) will inform CGM
		immediately in writing if, at any time, CMF, CGM, and/or their
		principals or employees (collectively, “Proprietary
		Owners”) collectively own 10 percent or more of the Customer.
		 At any time that Proprietary Owners cease to own 10 percent or
		more of the Customer, CMF will inform CGM immediately in writing of
		that fact.  At any time when Proprietary Owners collectively own
		10 percent or more of the Customer, the Customer and CMF understand
		and agree that, pursuant to Applicable Law, CGM will treat the
		Account as a proprietary account and will not segregate the assets of
		the account pursuant to the CEA or CFTC rules, or secure those assets
		of the Account used to margin foreign futures positions.
	 

	 
		(b) The Customer shall pay to CGM, in lieu of brokerage
		commissions on a per trade basis, a monthly flat rate brokerage fee
		equal to 3.75 percent per year of the Customer’s monthly net
		assets (computed monthly by multiplying the Customer’s net
		assets as of the last business day of each month by 3.75 percent and
		dividing the result thereof by 12).  The Customer shall also pay
		all floor brokerage, NFA fees, exchange, clearing, user, and give-up
		fees, or shall reimburse CGM for all such fees previously paid by CGM
		on the Customer’s behalf.  CGM’s fee may be increased
		or decreased at any time at CGM’s discretion upon written notice
		to the Customer.
	 

	 
		(c) The Customer shall reimburse CGM for the total amount of
		the offering and organizational expenses of the Initial Offering
		Period that were advanced by CGM, plus interest at the prime rate
		quoted by JPMorgan Chase Bank, over the first 12 months after trading
		commences.
	 

	 
		(d) The Account (including any additional accounts of the fund
		opened pursuant to the Agreement) shall be held in and administered
		by CGM’s Branch #258 (the “Futures Fund Branch”).
		 The Futures Fund Branch shall provide bookkeeping and clerical
		assistance to the Customer and CMF.  All of the assets of the
		Customer which are deposited in the Account at CGM will be deposited
		and maintained in cash and/or in U.S. government securities.
		 During the term of this Agreement, CGM will, within 10 days
		following the end of each calendar month, credit the Customer’s
		brokerage accounts with a sum representing interest on eighty percent
		80% of the average daily equity maintained in cash in U.S. dollars in
		such accounts during each month (i.e., the sum of the daily cash
		balances in such accounts divided by the total number of calendar
		days in that month) at a 30-day Treasury bill rate determined weekly
		by CGM based on the average non-competitive yield on 3-month U.S.
		Treasury bills maturing in 30 days (or on the closest maturity date
		thereto) from the date on which such weekly rate is determined.
		 The equity maintained in cash in the account on Saturdays,
		Sundays and holidays shall be the equity maintained in cash in the
		account as of the close of business on the immediately preceding
		business day.  CGM may place up to 100% of the Fund’s
		assets into 90-day U.S. Treasury bills, in which case the Customer
		will receive eighty percent (80%) of the interest earned on the
		Treasury bills purchased for the Customer.  CGM will retain
		twenty percent (20%) of the interest earned on the Treasury bills
		purchased.
	 

	 
		(e) In any action, suit, or proceeding to which CGM is a party
		or is threatened to be made a party by reason of the fact that it is
		or was the futures broker for the Customer (other than any action
		brought by or on behalf of the Customer), the Customer shall
		indemnify and hold harmless CGM, subject to subsection (f) below,
		against any loss, liability, damage, cost, expense (including
		reasonable attorney’s fees and accountant’s fees),
		judgments, and amounts paid in settlement actually and reasonably
		incurred by it in connection with such action, suit or proceeding if
		CGM acted in good faith and in a manner it reasonably
	 

	 
		
 

	 

	 
		Page 3 of 18
	 

	 
		

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		believed to be in the best interests of the Customer, except
		that no indemnity shall be made in respect of any claim, issue or
		matter which as to CGM constituted negligence, misconduct, or breach
		of its legal obligations to the Customer, unless, and only to the
		extant that, the court or tribunal in which action or suit was
		brought shall determine upon application that, despite the
		adjudication of liability but in view of all circumstances of the
		case, CGM is fairly and reasonably entitled to indemnification for
		such expenses which are proven; and further provided that no
		indemnification shall be available from the Customer if such
		indemnification is prohibited by the Customer’s Private
		Placement Offering Memorandum and Disclosure Document and/or Limited
		Partnership Agreement.  The termination of any action, suit, or
		proceeding by judgment, order, or settlement, shall not, in itself,
		create a presumption that CGM did not act in good faith and in a
		manner which it reasonably believed to be in or not opposed to the
		best interests of the Customer.
	 

	 
		(f) Any indemnification under subsection (e) of this section 4,
		unless ordered by a court, shall be made by the Customer only as
		authorized in the specific case and only upon a determination by
		independent legal counsel in a written opinion that the
		indemnification is proper in the circumstances and accordance with
		the terms of this Agreement.
	 

	 
		(g) As used in this section 4, the term CGM shall include CGM,
		its officers, directors, stockholders, employees, and affiliates.
	 

	 
		5. Customer Payment Obligations.  With respect to
		every Contract purchased, sold or cleared for the Account, Customer
		shall (a) make all applicable margin and premium payments and perform
		all other obligations attendant to transactions or positions in such
		Contracts, as such payments or performance may be required by CGM
		consistent with Applicable Law, and (b) pay CGM upon demand (i) all
		commissions and fees at rates mutually agreed upon, (ii) all contract
		market, clearing house or clearing firm fees or charges, (iii) any
		tax or fee imposed on such transactions by any competent authority,
		including any self-regulatory organization, (iv) the amount of any
		trading losses in the Account, (v) any debit balance or deficiency
		remaining in the Account upon liquidation of any Contract held in the
		account, and (vi) interest on any debit balances remaining in the
		Account at the overnight rate customarily charged by CGM, together
		with all reasonable costs and expenses (including without limitation
		reasonable attorneys’ fees) incurred in collecting any such
		debit balance or in exercising any rights specified in Section 6 of
		this Agreement.
	 

	 
		6. Security Interest and Collateral.  (a) All
		property of Customer held by or for CGM or any affiliate of CGM or
		due from any exchange or clearing broker in respect of any Contract
		bought or sold for the Account (collectively, “Collateral”)
		is hereby pledged to CGM and shall be subject to a security interest
		in CGM’s favor to secure any amounts at any time owing from
		Customer to CGM.  The parties agree that to the extent permitted
		by Applicable Law, the Account and the Collateral are “financial
		assets” as defined in Revised Article 8 of the Uniform
		Commercial Code as in effect in the State of New York
		(“UCC”) and that during the term of this Agreement CGM
		shall have absolute control over the Collateral, provided, however,
		that with CGM’s approval any excess Collateral may be withdrawn
		at any time upon Customer’s request.  (b) CGM is
		authorized, to the extent permitted by Applicable Law, from time to
		time and without notice to Customer, to invest, lend, pledge,
		repledge, enter into repurchase agreements with or for, hypothecate,
		or rehypothecate to itself or to others, for CGM’s account and
		benefit, Collateral (including but not limited to metals, warehouse
		receipts, or other negotiable instruments) held by CGM for Customer,
		and may fulfill any obligations to Customer by delivery of
		nonidentical property of like kind and amount.
	 

	 
		7. Customer Defaults and Rights on Default.  The
		occurrence of any of the following shall be an “Event of
		Default” under this Agreement:  (a) the issuance of any
		warrant or order of attachment against the Account or levying of any
		judgment against the Account; (b) Customer’s failure to make
		when due any payment or delivery under this Agreement or Customer
		otherwise breaches any term of this Agreement; (c) if Customer is a
		natural person, Customer dies or is adjudicated incompetent, and for
		all Customers, Customer becomes insolvent or commences or has
		commenced against it any action for the appointment of a trustee,
		receiver, administrator to or for its liquidation, winding up or
		dissolution, or for the reorganization, composition or arrangement of
		its debts, or any other procedure under any law of any applicable
		jurisdiction having the same or analogous effect, and, in the case of
		any such action commenced involuntarily against such Customer, the
		action is not stayed or dismissed within 15 (fifteen) days; (d)
		Customer fails or admits its inability to pay its debts generally as
		they become due, or there is a material
	 

	 
		
 

	 

	 
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		adverse change in Customer’s financial condition or net
		asset value; (e) Customer defaults on a material obligation under any
		other agreement between Customer and CGM or any of CGM’s
		affiliates; (f) any representation made by Customer in this Agreement
		or in any form required by this Agreement proves to have been false
		or misleading in any material respect when given; or (g) CGM in its
		discretion reasonably considers it necessary for its protection.
		 Upon the occurrence of any Event of Default, CGM shall have the
		right, in addition to any other remedy available to CGM at law or in
		equity, to liquidate any or all open Contracts held in or for the
		Account by any means of lawful disposition (including without
		limitation through any exchange of futures for physicals, block
		trade, or similar transaction permitted under applicable exchange
		rules), to apply any cash, securities or other property of Customer
		held by or for CGM or any of CGM’s affiliates toward amounts
		payable by Customer hereunder, to reduce any amounts due and owing to
		Customer by setting off against such amounts any amounts due to CGM
		or any of CGM’s affiliates by Customer and to convert any such
		amounts or the net of such amounts to a single currency, to hedge
		positions in the Account, and to take any other action in respect of
		the Account, all in a commercially reasonable manner and all without
		further demand for margin and without notice or advertisement, except
		CGM will make reasonable efforts under the circumstances to notify
		Customer prior to taking any such action if CGM’s position would
		not be jeopardized thereby.  Solely for purposes of this Section
		7, the term “affiliates” shall mean Citigroup Global
		Markets Holdings Inc. and any entity controlled by it, but shall not
		include any entity that controls or is under common control with
		Citigroup Global Markets Holdings Inc.
	 

	 
		8. Treatment of Foreign Currency Payments and Balances.
		 If any transaction for Customer’s Account is effected on
		any exchange or in any market on which transactions are settled or
		margined in foreign currency (including, without limitation, the Euro
		or another unit of currency adopted pursuant to the European Monetary
		Union):  (a) any profit or loss arising from a fluctuation in
		the rate of exchange between such currency and the United States
		Dollar shall be entirely for Customer’s Account and at
		Customer’s risk; (b) unless otherwise agreed by Customer and
		CGM, all initial and subsequent margin deposits required or requested
		by CGM shall be in or denominated in the currency required by the
		applicable exchange or clearing house in such amounts as CGM, in its
		sole discretion, may require; and (c) CGM is authorized to convert
		funds or securities in Customer’s Account into and from such
		foreign currency at prevailing rates of exchange.  If Customer
		has entered into a prime broker agreement with CGM, CGM is authorized
		to convert balances in the Account to a single currency in accordance
		with such prime broker agreement and any supplements or annexes
		thereto.
	 

	 
		9. Transfer of Excess Funds to/from Other Accounts.
		 In the event that Customer establishes and maintains other
		accounts at CGM, until Customer gives further notice to CGM in
		writing, CGM is hereby authorized to transfer from the Account to any
		such other account such excess funds as may be required to avoid a
		margin call in such other account, to obtain interest credits or
		increase interest credits received by Customer, or as CGM reasonably
		determines necessary to satisfy any obligations of Customer to CGM in
		respect of such account, provided such transfer is not in conflict
		with Applicable Law.  CGM is also authorized to transfer to the
		Account any excess funds in any other account of Customer at CGM not
		required to meet margin, security, or other requirements related to
		such other account, to the extent that such excess funds are
		necessary to meet margin requirements or deficits in the Account.
		 CGM agrees that it will provide Customer with written
		confirmation of any such transfers within a reasonable time.
	 

	 
		10. Over the Counter Transactions.  If Customer is
		permitted by CGM to engage, and does engage in the purchase or sale
		of forward contracts or options on foreign currency in the Account,
		Customer will be bound by the terms of the “Foreign Exchange
		Trading Supplement” to this Agreement, which is appended hereto.
		 If Customer enters into any over the counter swap, forward,
		option, or similar transaction involving energy products that is,
		with CGM’s consent, cleared under the rules of an applicable
		exchange and/or clearing house, Customer will be bound by the terms
		of the “OTC Energy Supplement” to this Agreement, which is
		appended hereto.  If Customer engages in the over the counter
		purchase or sale of coins, bullion, or metals in the Account,
		Customer agrees that:  (a) actual deliveries are intended on all
		such transactions; (b) CGM may be acting as a broker or as a dealer
		in any such transaction, and CGM will inform Customer of the capacity
		in which it is acting in any particular transaction upon
		Customer’s request; (c) such transactions are not cleared
		through any clearing house and, when CGM is acting as a dealer, the
		contract for purchase or sale is between Customer and CGM; (d) when
		CGM is acting as a broker CGM does not warrant the authenticity,
		grade, or quality of any metals or coins; (e) if Customer requests
		CGM to store metals or coins rather than to carry them on an
		unallocated basis, Customer understands that such
	 

	 
		
 

	 

	 
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		metals or coins will be placed in a depository selected by CGM
		in its sole discretion and may be commingled with metals or coins of
		CGM or other Customers, and that all taxes, shipping, storage, and
		insurance fees will be Customer’s responsibility; (f) CGM may in
		its sole discretion elect to net settle payments when those payments
		are for the same currency and value date and (g) CGM shall have the
		right to offset any unrealized gains and losses on the
		Customer’s open positions and to net any open orders for the
		purchase or sale of any forward contracts on foreign currency in the
		Account.
	 

	 
		11. LME Transactions.  If Customer engages in
		transactions in Contracts purchased, sold, or cleared on the London
		Metal Exchange (“LME contracts”), Customer understands and
		agrees that:   (a) while CGM acts only as agent in such
		transactions, orders for LME contracts placed with CGM will be
		executed by an affiliate of CGM which will act as principal in any
		LME contract bought or sold; (b) CGM’s affiliate has no
		obligation of best execution as regards LME contracts; and (c) CGM
		will endeavor to find the best price with available LME brokers,
		which may include its affiliate, and such price may include a
		mark-up.
	 

	 
		12. Introducing Brokers.  If Customer’s
		Account has been introduced to CGM by an introducing broker, CGM is
		responsible only for the execution, clearing, and bookkeeping of
		transactions, and shall have no liability for the acts or omissions
		of the introducing broker.
	 

	 
		13. Limitations of Liability.  IN NO EVENT WILL CGM
		BE RESPONSIBLE FOR ANY LOSSES TO CUSTOMER OTHER THAN DIRECT LOSSES
		ARISING SOLELY AS A RESULT OF CGM’S NEGLIGENCE OR WILLFUL
		MISCONDUCT.  NO PARTY TO THIS AGREEMENT SHALL BE REQUIRED TO PAY
		OR BE LIABLE TO ANY OTHER PARTY FOR ANY CONSEQUENTIAL, INDIRECT, OR
		PUNITIVE DAMAGES, OPPORTUNITY COSTS, OR LOST PROFITS (WHETHER OR NOT
		ARISING FROM ITS NEGLIGENCE AND REGARDLESS OF WHETHER THE PARTY WAS
		AWARE OF THE POSSIBILITY OF SUCH DAMAGES).  CGM SHALL NOT BE
		LIABLE IF THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT IS
		DELAYED OR RENDERED IMPOSSIBLE DUE TO FIRE, FLOOD, STRIKE, WAR, ACT
		OF TERRORISM, ACT OF GOD, GOVERNMENTAL ACTION, OR ANY OTHER CAUSE
		BEYOND CGM’S CONTROL.  IN ANY SUCH CASE, CGM MAY IN ITS
		REASONABLE DISCRETION CANCEL ORDERS RESTING ON ELECTRONIC ORDER ENTRY
		OR EXECUTION SYSTEMS.  ORDERS FOR THE ACCOUNT MAY FROM TIME TO
		TIME BE ENTERED, EXECUTED, OR BOTH THROUGH ELECTRONIC ORDER ENTRY OR
		EXECUTION SYSTEMS.  IN ANY SUCH CASE, CGM SHALL HAVE NO
		LIABILITY FOR ANY LOSS INCURRED BY CUSTOMER DUE TO THE FAILURE OR
		MALFUNCTION OF ANY COMPUTER HARDWARE OR SOFTWARE OR TRANSMISSION
		DEVICE OR SERVICE UTILIZED UNLESS SUCH FAILURE OR MALFUNCTION
		DIRECTLY RESULTS FROM CGM’S GROSS NEGLIGENCE OR WILLFUL
		MISCONDUCT.
	 

	 
		14. Recordings.  CGM, in its sole discretion, may
		record on tape or otherwise any telephone conversation between
		Customer and CGM, including their respective employees, officers, and
		agents, and Customer hereby agrees and consents to such recording.
	 

	 
		15. Confirmations, Notices.  All trade
		confirmations and account statements shall be conclusive unless
		Customer notifies CGM in writing of any objection thereto within
		three business days following the day on which CGM transmits such
		confirmation or statement, unless CGM transmits such confirmation or
		statement electronically or by facsimile, in which case Customer
		shall notify CGM of any objections by 5:00 p.m. New York time the
		next business day following transmission.  All oral instructions
		or notices given by Customer in respect of the maintenance of the
		Account shall be promptly confirmed in writing by the Customer.
		 All instructions, notices or other communications concerning
		this Agreement or maintenance of the Account shall be given to
		Customer at the address or phone number identified on the signature
		page hereof and to CGM at the office or branch that services
		Customer’s Account, with a copy to:
	 

	 
		Citigroup Global Markets Inc.
	 

	 
		388 Greenwich St., Seventh Floor
	 

	 
		New York, New York  10013
	 

	 
		Attention:  Futures Division (Notifications)
	 

	 
		Fax:  (212) 723-8477
	 

	 
		

	 

	 
		
 

	 

	 
		Page 6 of 18
	 

	 
		

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		CGM shall be entitled to rely on any instructions, notices, and
		communications from Customer and, if applicable, Account Manager,
		respecting orders, delivery, exercise, or settlement, that CGM
		reasonably believes to be genuine and such instructions shall bind
		Customer.  Customer agrees to hold CGM harmless against all
		costs, losses, penalties, fines, taxes, and direct damages incurred
		by CGM as a result of any action taken or not taken by CGM in
		reliance upon such instructions, notices, and communications.
	 

	 
		16. Role of Account Manager
	 

	 
		(a) Customer may authorize a third party or entity (the
		“Account Manager”) to manage the Account.  Where
		Customer retains an Account Manager, Customer agrees that Account
		Manager is authorized to act on Customer’s behalf with respect
		to the Account, including to receive and give communications,
		instructions and authorizations, and Customer hereby confirms,
		ratifies, and assumes liability for any transactions that result from
		such communications, instructions, and authorizations.  Customer
		will provide CGM with the management agreement between the Customer
		and Account Manager as evidence of this authority.
	 

	 
		(b) When an Account Manager has discretion over the Account,
		Customer authorizes the Account Manager holding that discretion to
		enter into all arrangements that are necessary or appropriate in the
		sole judgment of the Account Manager to carry out Customer’s
		obligations under the Agreement or under the trading authorization
		granted by Customer to Account Manager.  This shall include,
		without limitation, the selection of executing brokers to execute
		transactions for Customer’s Account, negotiation of agreements
		with or including such executing brokers (including without
		limitation Uniform International Brokerage Execution
		(“Give-Up”) Agreements), and negotiating and agreeing to
		additional charges or fees in amounts up to but not in excess of
		$2.00 per side.  Such additional charges or fees may take the
		form of excess floor brokerage, administrative or intermediary FCM
		transfer fees.
	 

	 
		(c) When an Account Manager has discretion over the Account,
		Customer authorizes CGM to remit periodically from the Account such
		sums representing the bills of the Account Manager or any executing
		broker or floor broker (including any fees attendant to the execution
		of Contracts by such brokers) the Account Manager has selected upon
		presentation of said bill to CGM.  Customer understands and
		agrees that:  (i) CGM shall have no obligation to determine the
		accuracy of any such bills presented, and Customer agrees to
		indemnify and hold harmless CGM from any claims in the event that
		such bills are not correct; (ii) Customer, Account Manager, and any
		executing broker are solely responsible for computing fees for the
		Account Manager’s services and the services of the executing
		broker and that CGM may rely upon such computation submitted to it by
		Account Manager or any executing broker; (iii) any disbursement
		pursuant to Customer’s authorization will be reflected on
		Customer’s monthly statement of account furnished by CGM.
		 The authorizations and:agreements shall remain in force and
		effect until terminated by Customer in writing to CGM, and shall not
		be affected by Customer’s disability or incompetence.  CGM
		reserves the right in its sole discretion to cancel this
		authorization at any time with or without notice.
		 Customer’s indemnities shall survive termination of the
		Agreement.
	 

	 
		(d) Customer ratifies and confirms all transactions entered
		into by any Account Manager with or through CGM for the Account.
	 

	 
		17. Remedies Not Exclusive.  The specification of
		any right or remedy in this Agreement shall not be exclusive of any
		other remedies provided by law.  Any delay or failure by any
		party to this Agreement to exercise any right or remedy shall not be
		construed to be a waiver of such right or remedy, and no single,
		partial or other exercise of any right or remedy shall preclude the
		further exercise of that right or remedy or the exercise of any other
		right or remedy.
	 

	 
		18. Term and Termination.  This Agreement shall
		continue in force until terminated by either Customer of CGM.
		 This Agreement may be terminated by Customer or CGM by written
		notice to the other.  In the event of such notice, Customer
		shall within 15 days either close out open positions in the Account
		or transfer such open positions to another Futures Commission
		Merchant.  This Agreement shall terminate upon satisfaction by
		Customer of all liabilities to CGM arising hereunder (including
		payment of
	 

	 
		
 

	 

	 
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		the applicable commission with respect to the transfer of
		Contracts to another futures commission merchant) and the transfer or
		close out of all Contracts and all other property held in the
		Account.  The termination of this Agreement shall not affect the
		obligations of the parties hereto arising from transactions entered
		into prior to such termination.
	 

	 
		19. Choice of Law, Waiver of Jury.  THE
		INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY
		THE LAWS OF THE STATE OF NEW YORK, without giving effect to its
		conflicts of laws principles.  Subject to Customer’s right
		to initiate a reparations proceeding pursuant to the CEA and rules
		thereunder, Customer submits to the jurisdiction of the courts of the
		State of New York and of the federal courts in the Southern District
		of New York with respect to any proceeding arising out of and
		relating to this Agreement or any transaction in connection herewith,
		and waives any objection to jurisdiction it may otherwise be entitled
		to assert in any such proceeding.  The parties hereby
		irrevocably waive any right to a jury trial in any matter arising
		under or relating to this Agreement.
	 

	 
		20. Entire Agreement, Successors and Assignment.
		 This Agreement, including any applicable supplements, contains
		the entire agreement between the parties and supersedes any prior
		agreements as to the subject matter hereof.  No provision of
		this Agreement shall in any respect be amended or deemed to be waived
		unless such amendment or waiver is in writing and signed by the
		parties.  This Agreement and any confirmation or “purchase
		and sales statement” relating to Contracts purchased or sold for
		the Account shall constitute a single agreement between Customer and
		CGM.  This Agreement shall be binding on and inure to the
		benefit of the parties hereto and their successors, CGM’s
		assigns, and Customer’s personal representatives, estate, heirs,
		administrators and trustees, if any.  This Agreement shall not
		be assignable by Customer.  Section headings have been included
		solely for the convenience of the parties and do not constitute part
		of this Agreement.
	 

	 
		21. By checking the box below, Customer acknowledges that it
		has received and understands the disclosure or election noted:
	 

	 
		 CFTC
		Risk Disclosure Statement for Futures and Options (which includes
		disclosure required by CFTC rules 1.55, 30.6, 33.7, and 190.10(c))
		separately furnished to Customer by CGM.
	 

	 
		
		Authorization to Transfer Funds (section 9).
	 

	 
		
 

	 

	 
		Page 8 of 18
	 

	 
		

	 

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		IN WITNESS WHEREOF, the parties hereto have executed this
		Agreement.  
	 

	 
		Customer
	 

	 
		SMITH BARNEY WARRINGTON FUND L.P.
	 

	 
		By:
	 

	 
		Citigroup Managed Futures LLC
 (General Partner)
	 

	 
		

	 

	 
		By:   /s/ Daniel R. McAuliffe, Jr
	 

	 
		Date:  February 17, 2005  
 Daniel R.
		McAuliffe, Jr.
 Chief Financial Officer and Director
	 

	 
		NOTICES AND STATEMENTS DELIVERED TO:
 731 Lexington Avenue -
		25th Floor 
 New York, New York  10022
	 

	 
		

	 

	 
		CGM
	 

	 
		CITIGROUP GLOBAL MARKETS INC.
	 

	 
		By:   /s/ Shelley D. Ullman
	 

	 
		Date:  02-17-2005
	 

	 
		Name:   Shelley D. Ullman
 Title:
		  Director
	 

	 
		
 

	 

	 
		Page 9 of 18
	 

	 
		

	 

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		Appendix A –
		Authorized Persons
	 

	 
		The following persons have been authorized to place orders and
		give instructions to CGM on behalf of Customer with respect to
		Customer’s Account:
	 

	 		
	
			 
				Print Name
			 

		  	
			 
				Signature
			 

		  
	
			 
				 
			 

			 

			 
			 

		  	
			 
				 
			 

			 

			 
			 

		  
	
			 
				 
			 

			 

			 
			 

		  	
			 
				 
			 

			 

			 
			 

		  
	
			 
				 
			 

			 

			 
			 

		  	
			 
				 
			 

			 

			 
			 

		  
	
			 
				 
			 

			 

			 
			 

		  	
			 
				 
			 

			 

			 
			 

		  
	
			 
				 
			 

			 

			 
			 

		  	
			 
				 
			 

			 

			 
			 

		  

	 
		
 

	 

	 
		Page 10 of 18
	 

	 
		

	 

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		Appendix B – Wire
		Instructions
	 

	 
		Until further written notice, CGM is hereby authorized to
		transfer/wire funds due to Customer from the Account to the bank
		account listed below.  CGM is further authorized to act on
		instructions from Customer or Customer’s agent to transfer/wire
		funds whether such instructions are oral or in writing.
		 Customer understands and agrees that any instruction(s) that
		deviates from this standing instruction must be made or confirmed in
		writing to CGM before CGM will act on such instruction(s).
		 Customer agrees to indemnify and hold harmless CGM, its
		officers, directors, employees, and agents, from all loss, cost,
		claims, and expenses (including reasonable attorney’s fees
		arising from these wire instructions or any written deviations
		therefrom).
	 

	 
		Bank Name:
		                                                                              

	 

	 
	 

	 
		  ABA Number:
		                                                                              

	 

	 
	 

	 
		For the Account of:
		                                                                                                                                                                                       

	 

	 
		Account Number:
		                                                                                                                                                                                          

	 

	 
		(and if applicable:)
	 

	 
		For Further Credit to:
		                                                                                                                                                                                    

	 

	 
		Account Number:
		                                                                                                                                                                                         

	 

	 
		
 

	 

	 
		Page 11 of 18
	 

	 
		

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		Part II
	 

	 
		Authorization for
		Transactions in Which CGM May Be on the Opposite Side
		of
Customer Trades 
	 

	 
		The undersigned consents to
		transactions whereby CGM, its directors, officers, employees or
		affiliates, and any floor broker acting on Customer’s behalf in
		any transaction, may be on the opposite side of orders for the
		purchase or sale of futures contracts and option
		contracts placed for such Customer’s Account in conformity with
		regulations of the Commodity Futures Trading Commission and the
		bylaws, rules and regulations of the contract market (and its
		clearing house, if any) on which such order is executed.
	 

	 
		Customer:
 By:  Smith Barney Warrington Fund L.P. 

		Citigroup Managed Futures LLC, General Partner
 /s/ Daniel R.
		McAulliffe, Jr.
	 

	 
		Print Name:  Daniel McAuliffe
	 

	 
		Title:  Chief Financial Officer
	 

	 
		Date:  February 17, 2006
	 

	 
		
 

	 

	 
		Page 12 of 18
	 

	 
		

	 

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		Part III
 

		Supplements for Certain Products
	 

	 
		Foreign Exchange Trading
		Supplement
	 

	 
		In the event that CGM authorizes Customer to enter into, and
		Customer enters into over the counter spot or forward purchases and
		sales of foreign currency or options on foreign currency
		(collectively, “FX Transactions”) to be held in
		Customer’s futures account at CGM (the “Account”), the
		following terms and conditions (the “FX Supplement”) shall
		supplement the Institutional Futures Account Agreement (the
		“Agreement”) between CGM, Customer, and, if applicable,
		Account Manager.  Unless otherwise specified in this FX
		Supplement, all capitalized terms used herein shall have the meaning
		defined in the Agreement.
	 

	 
		1. FX Transactions shall be deemed to be Contracts for all
		purposes of the Agreement unless otherwise specified herein.
	 

	 
		2.  In addition to those representations made by Customer
		in Section I of the Agreement, Customer represents that:  (a) it
		is an “eligible contract participant” within the
		meaning of Section 1(a)12 of the CEA; and (b) it is neither (i) an
		“employee benefit plan” as defined in Section 3(3) of the
		Employee Retirement Income Security Act of 1972 (“ERISA”)
		which is subject to Part 4 of Subtitle B of Title I of such Act; (ii)
		any “plan” as defined in Section 4975(e)(l) of the Internal
		Revenue code of 1986; nor (iii) any entity the assets of which are
		deemed to be assets of any such “employee benefit plan” or
		“plan” by reason of the Department of Labor’s plan
		asset regulation, 29 C.F.R.  Section 2513-101, OR that neither
		this FX Supplement nor the FX Transactions are subject to the
		prohibited transaction rules of ERISA.  These representations
		shall be continuing representations at all times when Customer enters
		into or maintains any FX Transaction in the Account.
	 

	 
		3.  The parties agree that:
	 

	 
		(a) CGM acts as a principal in FX Transactions subject to this
		FX Supplement and such FX Transactions are not cleared through or
		guaranteed by any clearing house or clearing agency;
	 

	 
		(b) Customer’s counterparty on all options on foreign
		currency shall be Citigroup Global Markets Commercial Corp., its
		successors or assigns, or such other affiliate of CGM that CGM
		identifies in writing to Customer (“CGMCC”).  If
		Customer enters into any option on foreign currency,  CGMCC
		shall have all rights of CGM under the Agreement and this FX
		Supplement, and all references herein to CGM shall include CGMCC, and
		(ii) all representations made by Customer to CGM shall be deemed made
		to CGMCC; and
	 

	 
		(c) FX Transactions are generally exempt from the CEA and CFTC
		rules.  Without limiting the foregoing, cash, securities, or
		other property (collectively, “Collateral”) Customer
		transfers to or maintains at CGM or any of CGM’s affiliates as
		margin in respect of FX Transactions will not be subject to the
		segregation requirements of the CEA and CFTC rules, CGM will not hold
		such Collateral in a Customer segregated account, and Customer will
		not, as to such Collateral, receive the special treatment of
		bankruptcy rules applicable to futures transactions pursuant to U.S.
		law.
	 

	 
		4.  With respect to every FX Transaction entered into by
		Customer, Customer shall (a) make all payments required by any
		collateral annex between Customer and CGM; (b) make all applicable
		premium payments and perform all other obligations attendant to FX
		Transactions or positions as such payments or performance may be
		required by CGM consistent with Applicable Law; and (c) make all
		other payments and perform all obligations applicable to Contracts
		pursuant to Section 4 of the Agreement.
	 

	 
		5.  In the event that CGM exercises its rights to
		liquidate any FX Transaction pursuant to Section 6 of the Agreement,
		CGM shall determine in good faith using commercially reasonable
		procedures the amount of the
	 

	 
		
 

	 

	 
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		costs and gains of CGM that would he incurred or realized to
		replace, or to provide the economic equivalent of the remaining
		payments, deliveries or option rights of all or some of the FX
		Transaction.  CGM in making the determination may rely on
		internal or external sources, information, prices or models.
	 

	 
		6. If on any business day (or, in accordance with market
		practice, business days) that the parties have agreed on the delivery
		of the currencies which were purchased and sold in respect of any FX
		Transaction (the “Settlement Date”), more than one delivery
		of any currency is to be made between CGM and the Customer, then each
		party agrees that it shall aggregate the amounts of such currency
		deliverable to the other and only the difference between the
		aggregate amounts shall be delivered by the party owing the larger
		aggregate amount to the other and if the aggregate amounts are equal,
		no delivery of that currency shall be made.
	 

	 
		7. If an Account Manager is authorized to exercise discretion
		and to act on behalf of Customer with respect to the Account, in
		addition to those representations made by Account Manager pursuant to
		Section 15 of the Agreement, Account Manager represents that it is
		authorized to enter into FX Transactions on Customer’s behalf.
	 

	 
		8. This FX Supplement and the Agreement shall be construed and
		applied in a manner that gives maximum effect to the terms and
		conditions of both.  In the event of any inconsistency, the
		terms of this FX Supplement shall apply and shall be deemed to be an
		amendment to the Agreement.
	 

	 
		Collateral
		Annex
	 

	 
		[Customers who are required to post collateral as a
		condition to doing business with CGM must complete the following
		Collateral Annex under the terms and conditions specified by a CGM
		credit officer.]
	 

	 
		This Collateral Annex supplements, forms part of, and is
		subject to, the Foreign Exchange Trading Supplement (the “FX
		Supplement”) between CGM, Customer, and, if applicable, Account
		Manager.  Capitalized terms not otherwise defined herein shall
		have the meanings given such terms in the Agreement and FX
		Supplement.
	 

	 
		1.
	 

	 
		For the purposes of this Collateral Annex each of following
		terms shall have the following meaning:
	 

	 
		“Banking Day” means any day on which commercial banks
		are open for general business (including dealings in foreign exchange
		and foreign currency deposits) in New York City.
	 

	 
		“Business Day” means any day on which CGM settles
		payments and is open for general business in New York.
	 

	 
		“Cash” shall mean the lawful currency of the United
		States of America transferred by Customer to CGM pursuant to this
		Collateral Annex.
	 

	 
		“Collateral” means all (i) Securities or Cash
		transferred by Customer to GCM pursuant to Section 2 of this
		Collateral Annex and (ii) any other Securities or Cash held from time
		to time in the Account.
	 

	 
		“Collateral Amount” shall mean 97% of the face amount
		of any Securities with a maturity of less than one year, 94% of the
		Market Value of any Securities with a maturity equal to or greater
		than 1 year, 100% of the Market Value of any Cash held in the Account
		as collateral.
	 

	 
		“Credit Support Amount” shall mean for any Valuation
		Day (i) the sum of the Market Value to CGM of each FX Transaction,
		plus (ii) the aggregate of all Independent Amounts, plus (iii) the
		Overcollateralization Amount, if any, minus (iv) the Threshold;
		provided, however, that (x) in the case where the sum of the
		Independent Amounts exceeds zero, the Credit Support Amount will not
		be less than the sum of all Independent Amounts; and (y) in all
		cases, the Credit Support Amount will be deemed to be zero whenever
		the calculation of the Credit Support Amount yields
	 

	 
		
 

	 

	 
		Page 14 of 18
	 

	 
		

	 

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		a number that is less than zero.  Nothing in this
		Collateral Annex shall prevent CGM from making more than one request
		for the payment or delivery of Collateral on any Valuation Day.
	 

	 
		“Independent Amount” shall mean for each FX
		Transaction $  , or such other Independent Amount as may be
		determined by CGM in its sole discretion.
	 

	 
		“Market Value” shall mean, with respect to any
		Security, FX Transaction or Cash, as the case may be, as of the date
		of determination, the price for such Security on such date obtained
		by CGM from a generally recognized source selected by CGM, the price
		for such FX Transaction shall be the replacement value of the FX
		Transaction as determined by CGM (which amount shall not be less than
		zero), or (iii) with respect to Cash, the amount thereof.
	 

	 
		“Minimum Transfer Amount” means $20,000 where the
		total of all Overcollateralization Amounts is equal to or exceeds
		$200,000 and an amount to be determined by CGM where the total of all
		Overcollateralization Amounts is less than $200,000.
	 

	 
		“Overcollateralization Amount” means on any Valuation
		Day, (i) for FX Transactions on currencies traded on the
		International Monetary Market Exchange (the “IMM”), the
		amount in U.S. Dollars set by the IMM as initial margin on the
		outstanding currencies FX Transactions of similar tenor and notional
		amounts as traded on that exchange; and (ii) for FX Transactions on
		currencies not traded on the IMM, the amount in U.S. Dollars
		(assuming a default occurred on such Valuation Day) that CGM
		calculates in good faith in a commercially reasonable manner and with
		a 97.7% confidence factor, to be the maximum loss that CGM could
		expect to incur over the next five Banking Days based on the
		currencies comprising the then outstanding FX Transactions.
		 Nothing contained herein shall limit the right of CGM to change
		the criteria for factors on which the Overcollateralization Amount in
		clause (ii) is calculated, in its absolute discretion as market
		conditions or other factors warrant.
	 

	 
		“Securities” shall mean direct and general
		obligations of the United States of America and securities fully and
		unconditionally guaranteed as to the timely payment of principal and
		interest by the United States of America.
	 

	 
		“Threshold” shall mean $  , or if no amount is
		specified, zero.
	 

	 
		2.
	 

	 
		If, on any Valuation Day, the Credit Support Amount is more
		than the Collateral Amount (a “Margin Deficit”), then
		Customer shall transfer additional Securities or Cash to CGM, so that
		the Collateral Amount will thereupon equal or exceed the Credit
		Support Amount.  Customer shall have the option to transfer
		either Securities, Cash or a combination of Securities and Cash
		whenever.it is required to make a transfer to CGM.
	 

	 
		3.
	 

	 
		If, on any Valuation Day, the Credit Support Amount is less
		than the Collateral Amount (a “Margin Excess”), then CGM
		shall, at the written instruction of Customer, transfer Securities or
		Cash to Customer, so that the Collateral Amount will thereupon not
		exceed the Credit Support Amount.  Customer shall direct CGM as
		to whether to transfer Securities, Cash or a combination of
		Securities and Cash whenever CGM is required to make a transfer to
		Customer.
	 

	 
		4.
	 

	 
		On each Business Day, CGM shall determine the Credit Support
		Amount and the Collateral Amount (a “Valuation Day”), and
		in the event of a Margin Deficit or Margin Excess shall provide the
		Customer with facsimile notice of such determination.
	 

	 
		5.
	 

	 
		To the extent required by applicable law, all Securities and
		Cash in the possession of CGM shall be identified on the books and
		records of CGM as subject to the FX Supplement.  CGM shall have
		the right to sell, pledge, rehypothocate, assign, invest, use,
		commingle or otherwise dispose, or otherwise use, any Collateral it
		holds and to register any Collateral in its name, its custodian or
		any nominee for either.
	 

	 
		
 

	 

	 
		Page 15 of 18
	 

	 
		

	 

	 

	 
	 

	 

	 
		

	 

	 
		

	 

	 
		6.
	 

	 
		CGM will exercise reasonable care to assure the safe custody of
		all Collateral to the extent required by applicable law, and in any
		event CGM will be deemed to have exercised reasonable care if it
		exercises at least the same degree of care as it would exercise with
		respect to its own property.  Except as specified in the
		preceding paragraph, CGM will have no duty with respect to the
		Collateral including any due to collect any distributions or enforce
		or preserve any rights pertaining thereto.
	 

	 
		7.
	 

	 
		The Customer hereby agrees and acknowledges that, subject to
		the FX Supplement, any Securities or Cash delivered hereunder shall
		be delivered for purposes of securing Customer’s obligations in
		respect of FX Transactions entered into pursuant to the FX
		Supplement.  Customer represents and warrants to CGM that (i) it
		has the power to grant a security interest in and lien on any
		Collateral it transfers to CGM and has taken all necessary actions to
		authorize the granting of that security interest and lien, (ii) it is
		the sole owner of or otherwise has the right to transfer all
		Collateral it transfers to CGM hereunder, free and clear of any
		security interest, lien, encumbrance or other restriction other than
		the security interest and lien granted hereunder, (iii) upon the
		transfer of any Collateral hereunder, CGM will have a valid and
		perfected first priority security interest therein, (iv) the
		performance of its obligations hereunder will not result in the
		creation of any security interest, lien or other encumbrance on any
		Collateral other than the security interest and lien created
		hereunder, and (v) the transfer of Collateral hereunder does not, and
		will not, violate any other agreement.  Customer hereby grants
		to CGM, as security for the performance by Customer of its
		obligations under the FX Supplement, a first priority continuing
		security interest in, lien on and right of set-off against all of the
		Collateral delivered by Customer pursuant to this Collateral Annex.
	 

	 
		8.
	 

	 
		Upon receipt by CGM of evidence that Customer shall have
		satisfied all of its obligations under the FX Supplement, then CGM
		shall promptly pay over and deliver or transfer to Customer all of
		the Collateral and Independent Amount not previously applied or
		returned pursuant to the provision of this Collateral Annex.
	 

	 
		9.
	 

	 
		Notwithstanding Sections 2 and 3 of this Collateral Annex,
		neither party shall make any deliveries of Securities of Cash unless
		the Margin Deficit or Margin Excess exceeds the Minimum Transfer
		Amount and each such Margin Deficit or Margin Excess shall be rounded
		to the nearest $1,000.
	 

	 
		10.
	 

	 
		All transfers of Collateral shall be made by the close of
		business on the day notification is received.
	 

	 
		11.
	 

	 
		If CGM receives any principal, interest or other payment with
		respect to the Collateral it will promptly transfer such payments to
		Customer provided that the Collateral Amount exceeds the Credit
		Support Amount.
	 

	 
		12.
	 

	 
		Each party will pay its own costs and expenses in connection
		with performing its obligations under this Collateral Annex and
		neither party shall be liable for any costs and expenses incurred by
		the other party in connection herewith, provided that the Customer
		will pay (i) when due all taxes, assessments or charges of any nature
		that are imposed on the Collateral held by CGM upon becoming aware of
		same and (ii) all reasonable costs and expenses incurred by or on
		behalf of CGM in connection with the liquidation and/or application
		of the Collateral under Section 5 of the FX Supplement.
	 

	 
		13.
	 

	 
		Promptly following demand by CGM, Customer will execute,
		deliver and record any financing statement, specific assignment or
		other document and take any other action that may be necessary or
		desirable and reasonably requested by CGM to create, perfect,
		preserve or validate any security interest or lien granted under this
		Collateral Annex and to enable CGM to enforce its right with respect
		thereto.  Customer will promptly give notice to CGM of, and
		defend against, any suit, action, proceeding or lien that involves
		Collateral transferred to CGM or that could adversely affect the
		security interest or lien granted to CGM hereunder.
	 

	 
		
 

	 

	 
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		OTC Energy
		Supplement
	 

	 
		The following terms and conditions (the “OTC Energy
		Supplement”) shall supplement Customer’s Institutional
		Futures Account Agreement (the “Agreement”) with Citigroup
		Global Markets Inc.  (“CGM”).  Unless otherwise
		specified in this OTC Energy Supplement, all capitalized terms used
		herein shall have the meaning defined in the Agreement.
	 

	 
		 1.  Customer agrees that this OTC Energy
		Supplement shall apply to all over the counter (“OTC”)
		swaps, forwards, options, or similar transactions involving oil,
		natural gas, electricity, and other energy products that are executed
		and/or cleared in the Account, including without limitation
		transactions by Customer on or through the Intercontinental Exchange
		(“ICE”) and transactions that are cleared on the NYMEX
		(collectively, “OTC Energy Transactions”).  Except as
		otherwise specifically provided in this OTC Energy Supplement, OTC
		Energy Transactions shall be deemed to be Contracts for all purposes
		of the Agreement.
	 

	 
		2.  In addition to those representations made by
		Customer in Section I of the Agreement, Customer represents and
		warrants to CGM that:
	 

	 
		(a) it is duly authorized to enter into OTC Energy Transactions
		and to perform all obligations attendant to such transaction in
		accordance with their terms;
	 

	 
		(b) it is, and at the time it enters into any OTC Energy
		Transaction it will be, an “Eligible Contract Participant”
		as defined by Section 1a(12) of the CEA;
	 

	 
		(c) if client enters into any OTC Energy Transaction on the
		ICE, it is, and at the time any OTC Energy Transaction on the ICE
		remains open it will be, an “Eligible Commercial Entity” as
		defined by Section la(11) of the CEA;
	 

	 
		(d) it is neither  an “employee benefit plan” as
		defined in Section 3(3) of the Employee Retirement Income Security
		Act of 1972 (“ER1SA”) which is subject to Part 4 of
		Subtitle B of Title I of such Act; (ii) any “plan” as
		defined in Section 4975(e)(1) of the Internal Revenue code of 1986;
		nor (iii) any entity the assets of which are deemed to be assets of
		any such “employee benefit plan” or “plan” by
		reason of the Department of Labor’s plan asset regulation, 29
		C.F.R.  Section 2510.3-101, OR that neither the Agreement, as
		supplemented hereby nor any Contract are subject to the prohibited
		transaction rules of ERISA;
	 

	 
		(e) prior to entering into any OTC Energy Transaction on the
		ICE, Customer will have entered into all necessary agreements to
		access and transact on ICE and that such agreements will remain in
		force at any time Customer enters into or maintains in the Account
		any OTC Energy Transaction on the ICE;
	 

	 
		(f) Prior to handling delivery of any energy product pursuant
		to the terms of any OTC Energy Contract, Customer will obtain, and
		will maintain at all relevant times, any license, permit, approval,
		or authorization required by Applicable Law for Customer to purchase,
		sell, or hold such product, including without limitation any license
		required by the rules of the Federal Energy Regulatory Commission
		(“FERC”).

	 

	 
		 3.  Customer understands and agrees that OTC
		Energy Transactions are governed by all applicable rules of the
		relevant exchange and clearing house, including without limitation
		the applicable rules and regulations of the ICE, NYMEX, and the
		London Clearinghouse (“UCH”), all of which shall be deemed
		to be Applicable Law, and by the terms and conditions of any user
		agreement or other agreement with any exchange or clearing house that
		Customer enters into in order to transact or clear OTC Energy
		Transactions.  Without limiting the foregoing, Customer
		understands and agrees that if any OTC Energy Transaction submitted
		to any clearinghouse for clearing is not accepted by such
		clearinghouse, the OTC Energy Transaction will be terminated
		automatically without obligation by any party, including CGM and
		CGM’s affiliates.
	 

	 
		 4.  If Customer enters into any OTC Energy
		Transaction on the ICE, Customer understands and agrees that:
	 

	 
		(a) transactions on or through ICE are generally exempt from
		the CEA and CFTC rules;
	 

	 
		(b) cash, securities, or other property (collectively,
		“Collateral”) Customer transfers to CGM or any of
		CGM’s affiliates as margin in respect of OTC Energy Transactions
		engaged in on or through ICE will not be subject to the segregation
		requirements of the CEA and CFTC rules, CGM will not hold such
		Collateral in a Customer segregated account, and Customer will not
		receive the special treatment of bankruptcy rules applicable to U.S.
		futures and options pursuant to U.S. law;
	 

	 
		
 

	 

	 
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		(c) CGM or its affiliates may transfer Collateral posted by
		Customer to the LCH, and in any such case Customer’s rights in
		an insolvency may be governed by English Law;
	 

	 
		(d) Customer is solely responsible for the exercise of any OTC
		options entered into on or through ICE, and that unlike options
		traded on some other exchanges, CGM will have no role in effecting
		the exercise of options on ICE.

	 

	 
		 5.  As to any OTC Energy Transactions entered into
		as “cleared transactions” on the ICE, Customer acknowledges
		and agrees that such cleared transactions shall be subject to LCH
		rules applicable to such transactions, and that:
	 

	 
		(a) once such transactions are accepted for clearance by LCH,
		each such transaction will be a principal-to-principal transaction
		between Customer and CGM;
	 

	 
		(b) LCH specifically disclaims any right or obligation to
		Customer in respect to such transactions, and Customer may be unable
		to make any claim against LCH in respect of such transactions; and
	 

	 
		(c) LCH has the right to reject OTC Energy Transactions
		executed on the ICE and submitted for clearing and to suspend
		clearing of such transactions without notice.

	 

	 
		6.  CGM may in its sole discretion place conditions
		or limitations on the tenor, notional amount, or margin requirements
		for OTC Energy Transactions in the Account.  CUSTOMER
		UNDERSTANDS AND AGREES THAT CGM DOES NOT OFFER OR ENDORSE ANY
		ELECTRONIC OR OTHER SYSTEM CUSTOMER EMPLOYS TO ENTER INTO ANY OTC
		ENERGY TRANSACTION AND CGM IS NOT A PARTY TO ANY AGREEMENT BETWEEN
		CUSTOMER AND ANY EXCHANGE OR CLEARINGHOUSE.  CGM SPECIFICALLY
		DISCLAIMS ALL LIABILITY FOR ANY LOSS, COST, OR DAMAGE OF ANY TYPE OR
		NATURE ARISING FROM OR RELATING TO CUSTOMER’S USE OF ANY SYSTEM
		OR DEVICE FURNISHED BY ANY EXCHANGE OR CUSTOMER’S OTC ENERGY
		TRANSACTIONS UNLESS DIRECTLY CAUSED BY CGM’ S GROSS NEGLIGENCE
		OR WILLFUL MISCONDUCT.  WITHOUT LIMITING THE FOREGOING, NO PARTY
		TO THIS AGREEMENT SHALL BE REQUIRED TO PAY OR BE LIABLE TO ANY OTHER
		PARTY FOR ANY CONSEQUENTIAL, INDIRECT, OR PUNITIVE DAMAGES,
		OPPORTUNITY COSTS, OR LOST PROFITS (WHETHER OR NOT ARISING FROM ITS
		NEGLIGENCE).
	 

	 
		7.  In the case of any event that under the terms
		of the Agreement gives rise to any right of CGM to liquidate
		Contracts held in Customer’s Account or take other action to
		limit CGM’s credit exposure to Customer, Customer authorizes CGM
		to liquidate Customer’s OTC Energy Transactions for
		Customer’s account and risk by any commercially reasonable
		means, including without limitation through exchange of futures for
		swaps (“EFS”) transactions, exchange of futures for
		physicals (“EFP”) transactions or similar transactions that
		are not prohibited by Applicable Law.
	 

	 
		8.  This OTC Energy Supplement and the Agreement
		shall be construed and applied in a manner that gives maximum effect
		to the terms and conditions of both.  In the event of any
		inconsistency, the terms of this OTC Energy Supplement shall apply
		and shall be deemed to be an amendment to the Agreement.
	 

	 
		
 

	 

	 
		Page 18 of 18

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