Document:

Exhibit 10.5

				  Citigroup Managed Futures LLC

				  731 Lexington Avenue
 25th Floor
 New York, NY 10022
				

			 
	 	 
	
				
				   
				

			 	
				
				  Tel 212 559 2011

				  Fax 212 793 1986
				

			 

 

	 
		June 30, 2006
	 

	 
		Warrington Management, L.P.
	 

	 
		12377 Merit Drive – Suite 800
	 

	 
		Dallas, Texas 75251-2296
	 

	 
		Attention: Mr. Scott C. Kimple
	 

	 
			
				
				   
				

			 	
				
				  Re: 
				

			 	
				
				  Management Agreement
				  Renewals
				

			 

 

	 
		Dear Mr. Kimple:
	 

	 
		We are writing with respect to your
		management agreements concerning the commodity pools to which reference is made
		below (the “Management Agreements”). We are extending the term of the
		Management Agreements through June 30, 2007 and all other provisions of the
		Management Agreements will remain unchanged.
	 

	 
			
				
				   
				

			 	
				
				  •
				

			 	
				
				  Smith Barney Warrington Fund
				  L.P.
				

			 

 

	 
		Please acknowledge receipt of this
		modification by signing one copy of this letter and returning it to the
		attention of Mr. Daniel McAuliffe at the address above or fax to
		212-793-1986. If you have any questions I can be reached at
		212-559-5043.
	 

	 
		Very truly yours,
	 

	 
		 
	 

	 
			
				
				  CITIGROUP MANAGED FUTURES LLC

				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ Daniel R. McAuliffe,
				  Jr.
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Daniel R. McAuliffe, Jr. 

				  Chief Financial Officer & Director
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ Scott C. Kimple
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				  Print Name:
				

			 	
				
				   Scott C. Kimple
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		DRMcA/srExhibit 10.1

	 

	 
		MANAGEMENT AGREEMENT
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		AGREEMENT made as of the 22nd day of May, 1995 among SMITH BARNEY FUTURES
		MANAGEMENT INC., a Delaware corporation ("SBFM"), SMITH BARNEY TIDEWATER
		FUTURES FUND L.P., a New York limited partnership (the "Partnership") and
		CHESAPEAKE CAPITAL CORPORATION, an Illinois corporation (the "Advisor").
	 

	 
		

	 

	 
		W I T N E S S E
		T H :
	 

	 
		

	 

	 
		WHEREAS, SBFM is the general partner of SMITH BARNEY TIDEWATER FUTURES
		FUND L.P., a limited partnership organized for the purpose of speculative
		trading of commodity interests, including futures contracts, options and
		forward contracts with the objective of achieving substantial capital
		appreciation; and
	 

	 
		

	 

	 
		WHEREAS, the Limited Partnership Agreement establishing the Partnership
		(the "Limited Partnership Agreement") permits SBFM to delegate to one or more
		commodity trading advisors SBFM'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, SBFM is registered as a commodity pool operator with the CFTC
		and is a member of the NFA; and
	 

	 
		

	 

	 
		WHEREAS, SBFM 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 by the General Partner in commodity interests,
		including commodity futures contracts, options and forward contracts. All such
		trading on behalf of the Partnership shall be in accordance with the trading
		strategies and trading policies set forth in the Private Placement Offering
		Memorandum and Disclosure Document dated as of February 17, 1995, 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 SBFM to be utilized by
		the Advisor in
	 

	 
		

	 

	 
		

	 

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		

	 

	 
		managing the Partnership's assets. SBFM has initially selected the
		Advisor's Diversified 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 change the trading policies set forth in the Memorandum without
		the prior written consent of the Partnership given by SBFM. 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) SBFM acknowledges receipt of the Advisor's Disclosure Document dated
		February 26, 1995. All trades made by the Advisor for the account of the
		Partnership shall be made through such commodity broker or brokers as SBFM
		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 SBFM, may direct
		all trades in commodity futures and options to a futures commission merchant or
		independent floor broker it chooses for execution with instructions to give-up
		the trades to the broker designated by SBFM, provided that the futures
		commission merchant or independent floor broker and any give-up or floor
		brokerage fees are approved in advance by SBFM. All give-up or similar fees
		relating to the foregoing shall be paid by the Partnership after all parties
		have executed the relevant give-up agreements (by either original or fax copy).

	 

	 
		

	 

	 
		(c) The initial allocation of the Partnership's assets to the Advisor
		will be made to the Advisor's Diversified Trading 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 SBFM prior written notice
		of its intention to utilize such different trading system or methodology and
		SBFM consents thereto in writing. In addition, the Advisor will provide five
		days' prior written notice to SBFM 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 SBFM. In addition, the Advisor will notify SBFM 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
	 

	 
		

	 

	 
		

	 

	 
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		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 SBFM and receiving SBFM's written approval. The Advisor also
		agrees to provide SBFM, 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 SBFM.

	 

	 
		

	 

	 
		(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 SBFM
		to be made in any filings required by Federal or state law or NFA rule or
		order. Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor is
		not required to disclose the actual trading results of proprietary accounts of
		the Advisor or its principals unless SBFM 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 SBFM 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, SBFM 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 SBFM may designate other
		trading advisors for the Partnership and apportion or reapportion to such other
		trading advisors the management of an amount of Net Assets (as defined in
		Section 3(b) hereof) as it shall determine in its absolute discretion. The
		designation of other trading advisors and the apportionment or reapportionment
		of Net Assets to any such trading advisors pursuant to this Section 1 shall
		neither terminate this Agreement nor modify in any regard the respective rights
		and obligations of the parties hereunder. The Advisor may terminate this
		Agreement immediately if the Net Assets of the Partnership managed by the
		Advisor fall below $500,000 (after adjustment for trading losses and
		redemptions).
	 

	 
		

	 

	 
		(f) SBFM 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. SBFM 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 SBFM's sole discretion so that SBFM may
	 

	 
		
 

	 

	 
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		reallocate the Partnership's assets, meet margin calls on the
		Partnership's account, fund redemptions, or for any other reason, except that
		SBFM will not require the liquidation of specific positions by the Advisor.
		 SBFM 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 SBFM affiliate) selected by the
		Advisor, but only to the extent of the fees which have been earned by the
		Advisor up until the point at which the error occurred plus any future fees
		which may be earned by the Advisor under this Agreement (it also being
		understood that SBFM, with the assistance of the Advisor, will first attempt to
		recover such losses from the executing broker).  The Advisor will not be
		responsible for losses caused by circumstances outside the Advisor's control.
	 

	 
		

	 

	 
		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, SBFM, or any other trading advisor.
		 The Advisor shall not be responsible to the Partnership, the General
		Partner, any trading advisor or any limited partners for any acts or omissions
		of any other trading advisor no longer acting as an advisor to the Partnership.

	 

	 
		

	 

	 
		3.  COMPENSATION.  (a) In consideration of and as
		compensation for all of the services to be rendered by the Advisor to the
		Partnership under this Agreement, the Partnership shall pay the Advisor (i) an
		incentive fee payable quarterly equal to 20% of New Trading Profits (as such
		term is defined below) earned by the Advisor for the Partnership and (ii) a
		monthly fee for professional management services equal to 1/6 of 1% (2% per
		year) of the month-end Net Assets of the Partnership allocated to the Advisor.
	 

	 
		

	 

	 
		(b) "Net Assets" shall have the meaning set forth in Paragraph 7(d)(1) of
		the Limited Partnership Agreement dated as of February 23, 1995 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
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
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		any distributions, redemptions or incentive fees payable as of the date
		of such determination.
	 

	 
		

	 

	 
		(c)  "New Trading Profits" shall mean the excess, if any, of Net
		Assets managed by the Advisor at the end of the fiscal period over Net Assets
		managed by the Advisor at the end of the highest previous fiscal period or Net
		Assets allocated to the Advisor at the date trading commences, whichever is
		higher, and as further adjusted to eliminate the effect on Net Assets resulting
		from new capital contributions, redemptions, reallocations or capital
		distributions, if any, made during the fiscal period decreased by interest or
		other income, not directly related to trading activity, earned on the
		Partnership's assets during the fiscal period, whether the assets are held
		separately or in margin accounts.  Ongoing expenses will be attributed to
		the Advisor based on the Advisor's proportionate share of Net Assets.
		 Ongoing expenses above will not include expenses of litigation not
		involving the activities of the Advisor on behalf of the Partnership.
		 Ongoing expenses include offering and organizational expenses of the
		Partnership.  No incentive fee shall be paid until the end of the first
		full calendar quarter of trading, which fee shall be based on New Trading
		Profits earned from the commencement of trading operations by the Partnership
		through the end of the first full calendar quarter.  Interest income
		earned, if any, will not be taken into account in computing New Trading Profits
		earned by the Advisor.  If Net Assets allocated to the Advisor are reduced
		due to redemptions, distributions or reallocations (net of additions), there
		will be a corresponding proportional reduction in the related loss carryforward
		amount that must be recouped before the Advisor is eligible to receive another
		incentive fee.
	 

	 
		

	 

	 
		(d) Quarterly incentive fees and monthly management fees shall be paid
		within twenty (20) business days following the end of the period, as the case
		may be, 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 fiscal quarter or
		a calendar month, as the case may be, the quarterly incentive fee shall be
		computed as if the effective date of termination were the last day of the then
		current quarter and the monthly management fee shall be prorated to the
		effective date of termination.  If, during any month, the Partnership does
		not conduct business operations or the Advisor is unable to provide the
		services contemplated herein for more than two successive business days, the
		monthly management fee shall be prorated by the ratio which the number of
		business days during which SBFM conducted the Partnership's business operations
		or utilized the Advisor's services bears in the month to the total number of
		business days in such month.
	 

	 
		

	 

	 
		(e)
	 

	 
		The provisions of this Paragraph 3 shall survive the termination of this
		Agreement.
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
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		4.  RIGHT TO ENGAGE IN OTHER ACTIVITIES.  (a) The
		services provided by the Advisor hereunder are not to be deemed exclusive.
		 SBFM 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 SBFM 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 SBFM for the Partnership of the
		quality and nature contemplated by this Agreement.
	 

	 
		

	 

	 
		(b) If, at any time during the term of this Agreement, the Advisor is
		required to aggregate the Partnership's commodity positions with the positions
		of any other person for purposes of applying CFTC- or exchange-imposed
		speculative position limits, the Advisor agrees that it will promptly notify
		SBFM 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.
	 

	 
		

	 

	 
		

	 

	 
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		(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
		SBFM 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 SBFM.  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 manager.
	 

	 
		

	 

	 
		5.  TERM.  (a) This Agreement shall continue in effect
		until June 30, 1996.  SBFM 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, SBFM may terminate this Agreement at any
		month-end upon 30 days' notice to the Advisor.  At any time during the
		term of this Agreement, SBFM may elect to immediately terminate this Agreement
		upon 30 days' notice to the Advisor if (i) the Net Asset Value per Unit shall
		decline as of the close of business on any day to $400 or less; (ii) the Net
		Assets allocated to the Advisor (adjusted for redemptions, distributions,
		withdrawals or reallocations, if any) decline by 50% or more as of the end of a
		trading day from such Net Assets' previous highest value; (iii) limited
		partners owning at least 50% of the outstanding Units shall vote to require
		SBFM to terminate this Agreement; (iv) the Advisor fails to comply with the
		terms of this Agreement; (v) SBFM, in good faith, reasonably determines that
		the performance of the Advisor has been such that SBFM's fiduciary duties to
		the Partnership require SBFM to terminate this Agreement; or (vi) SBFM
		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, SBFM 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, except as
		provided in Section 10 hereof, (ii) R. Jerry Parker, Jr. 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
	 

	 
		

	 

	 
		

	 

	 
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		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 SBFM in the event that (i) 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, 1996; or (iii) the General Partner or
		Partnership fails to comply with the terms of this Agreement.  The Advisor
		may immediately terminate this Agreement if SBFM's registration as a commodity
		pool operator or its membership in the NFA is terminated or suspended.
	 

	 
		

	 

	 
		(c) Except as otherwise provided in this Agreement, any termination of
		this Agreement in accordance with this Paragraph 5 or Paragraph 1(e) shall be
		without penalty or liability to any party, except for any fees due to the
		Advisor pursuant to Section 3 hereof.
	 

	 
		

	 

	 
		6.  INDEMNIFICATION.  (a)(i) In any threatened, pending
		or completed action, suit, or proceeding to which the Advisor was or is a party
		or is threatened to be made a party arising out of or in connection with this
		Agreement or the management of the Partnership's assets by the Advisor or the
		offering and sale of units in the Partnership, SBFM 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 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.
	 

	 
		

	 

	 
		

	 

	 
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		(ii)  Without limiting sub-paragraph (i) above, 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, SBFM shall indemnify it against the
		expenses (including, without limitation, attorneys' and accountants' fees)
		actually and reasonably incurred by it in connection therewith.
	 

	 
		

	 

	 
		(iii) Any indemnification under subparagraph (i) above, unless ordered by
		a court or administrative forum, shall be made by SBFM 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 SBFM 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 SBFM's selection unless the Advisor notifies SBFM in writing, received
		by SBFM within five days of SBFM's telecopying to the Advisor of the notice of
		SBFM'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 SBFM's activities or claimed activities
		unrelated to the Advisor, SBFM 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 terms "Advisor" shall include the
		Advisor, its principals, officers, directors, stockholders and employees and
		the term "SBFM" shall include the Partnership.
	 

	 
		

	 

	 
		(b)(i) The Advisor agrees to indemnify, defend and hold harmless SBFM,
		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
	 

	 
		

	 

	 
		

	 

	 
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		intentional misconduct on the part of the Advisor (except as otherwise
		provided in Section 1(g)).
	 

	 
		

	 

	 
		(ii) In the event SBFM, 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 SBFM's or the Partnership's business,
		the Advisor shall indemnify, defend and hold harmless SBFM, 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.
	 

	 
		

	 

	 
		(iii) R. Jerry Parker, Jr. shall have no liability to the Partnership or
		SBFM or any of their respective officers, directors, employees, partners or
		affiliates under this Agreement or in connection with the transactions
		contemplated by this Agreement except in the case of fraud or willful
		misconduct by R. Jerry Parker, Jr.
	 

	 
		

	 

	 
		(c) In the event that a person entitled to indemnification under this
		Paragraph 6 is made a party to an action, suit or proceeding alleging both
		matters for which indemnification can be made hereunder and matters for which
		indemnification may not be made hereunder, such person shall be indemnified
		only for that portion of the loss, liability, damage, cost or expense incurred
		in such action, suit or proceeding which relates to the matters for which
		indemnification can be made.
	 

	 
		
 

	 

	 
		(d) None of the indemnifications contained in this Paragraph 6 shall be
		applicable with respect to default judgments, confessions of judgment or
		settlements entered into by the party claiming indemnification without the
		prior written consent, which shall not be unreasonably withheld, of the party
		obligated to indemnify such party.
	 

	 
		

	 

	 
		(e) The provisions of this Paragraph 6 shall survive the termination of
		this Agreement.
	 

	 
		

	 

	 
		7.  REPRESENTATIONS, WARRANTIES AND AGREEMENTS.
	 

	 
		

	 

	 
		(a) The Advisor represents and warrants that:
	 

	 
		

	 

	 
		(i) All references to the Advisor and its principals in the 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 in the Memorandum, this representation and
		warranty extends only to the underlying data made available by the Advisor for
		the preparation thereof and not to any
	 

	 
		

	 

	 
		

	 

	 
		-10-
	 

	 
		

	 

	 
		

	 

	 
 
	 
		

	 

	 
		

	 

	 
		

	 

	 
		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.
	 

	 
		

	 

	 
		(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 corporation duly organized, validly existing and in
		good standing under the laws of the State of Illinois and has full power and
		authority to enter into this Agreement and to provide the services required of
		it hereunder.
	 

	 
		

	 

	 
		(v) The Advisor will not, by acting as a commodity trading advisor to the
		Partnership, breach or cause to be breached any undertaking, agreement,
		contract, statute, rule or regulation to which it is a party or by which it is
		bound.
	 

	 
		

	 

	 
		(vi) This Agreement has been duly and validly authorized, executed and
		delivered by the Advisor and is a valid and binding agreement enforceable in
		accordance with its terms.
	 

	 
		

	 

	 
		(vii) At any time during the term of this Agreement that a prospectus
		relating to the Units is required to be delivered in connection with the offer
		and sale thereof, the Advisor agrees upon the request of SBFM to provide the
		Partnership with such information as shall be necessary so that, as to the
		Advisor and its principals, such prospectus is accurate.
	 

	 
		

	 

	 
		(b) SBFM 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
	 

	 
		

	 

	 
		

	 

	 
		-11-
	 

	 
		

	 

	 
		

	 

	 
 
	 
		

	 

	 
		

	 

	 
		

	 

	 
		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 SBFM 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 corporation duly organized, validly existing and in good
		standing under the laws of the State of Delaware and has full corporate power
		and authority to perform its obligations under this Agreement.
	 

	 
		

	 

	 
		(iii) SBFM 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 SBFM's and the Partnership's behalf and is a valid and binding
		agreement of SBFM and the Partnership enforceable in accordance with its terms.

	 

	 
		

	 

	 
		(v) SBFM 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, SBFM AND THE PARTNERSHIP.
		     (a).  The Advisor agrees as follows:
	 

	 
		

	 

	 
		(i) In connection with its activities on behalf of the Partnership, the
		Advisor will comply with all applicable rules and regulations of the CFTC
		and/or the commodity exchange on which any particular transaction is executed.
	 

	 
		

	 

	 
		(ii) The Advisor will promptly notify SBFM of the commencement of any
		material suit, action or proceeding involving it, whether or not any such suit,
		action or proceeding also involves SBFM.
	 

	 
		

	 

	 
		(iii) In the placement of orders for the Partnership's account and for
		the accounts of any other client, the Advisor will utilize a fair and
		reasonable order entry system, which
	 

	 
		

	 

	 
		

	 

	 
		-12-
	 

	 
		

	 

	 
		

	 

	 
 
	 
		

	 

	 
		

	 

	 
		

	 

	 
		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 in the account managed by the
		Advisor daily and promptly to notify the broker and SBFM and the Partnership's
		brokers of (i) any error committed by the Advisor or its principals or
		employees or (ii) any trade which the Advisor believes was not executed in
		accordance with its instructions.
	 

	 
		

	 

	 
		(iv)  The Advisor shall maintain a net worth of at least $2 million
		during the term of this Agreement.
	 

	 
		

	 

	 
		(b) SBFM agrees for itself and the Partnership that:
	 

	 
		

	 

	 
		(i) SBFM and the Partnership will comply with all applicable rules and
		regulations of the CFTC and/or the commodity exchange on which any particular
		transaction is executed.
	 

	 
		

	 

	 
		(ii) SBFM 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.
	 

	 
		

	 

	 
		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, except that
		the Advisor may incorporate or transfer all of its assets, trading programs or
		goodwill to, or merge or consolidate with, any corporation, partnership or sole
		proprietorship controlled by Mr. R. Jerry Parker, Jr., and may assign this
		Agreement to any such corporation, partnership or sole proprietorship;
		provided, that said corporation, partnership or sole proprietorship assumes all
		rights and obligations of the Advisor under this Agreement and is entitled to
		and agrees to use the trading method and systems of the Advisor for the benefit
		of the Partnership.
	 

	 
		

	 

	 
		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:
	 

	 
		

	 

	 
		

	 

	 
		-13-
	 

	 
		

	 

	 
		

	 

	 
 
	 
		

	 

	 
		

	 

	 
		

	 

	 	 		
	 	
			 
				If to SBFM:
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				Smith Barney Futures Management Inc.
			 

		  
	 	
			 
				 
			 

		  	
			 
				390 Greenwich Street
			 

		  
	 	
			 
				 
			 

		  	
			 
				1st Floor
			 

		  
	 	
			 
				 
			 

		  	
			 
				New York, New York  10013
			 

		  
	 	
			 
				 
			 

		  	
			 
				Attention:  Alexander J. Sloane
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				If to the Advisor:
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				Mr. John M. Hoade
			 

		  
	 	
			 
				 
			 

		  	
			 
				Chesapeake Capital Corporation
			 

		  
	 	
			 
				 
			 

		  	
			 
				62 Broad Street
			 

		  
	 	
			 
				 
			 

		  	
			 
				Manakin-Sabot, Virginia  23101
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				with a copy to:
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	
			 
				 
			 

		  	
			 
				William D. Kerr, Esq.
			 

		  
	 	
			 
				 
			 

		  	
			 
				Sidley & Austin
			 

		  
	 	
			 
				 
			 

		  	
			 
				One First National Plaza
			 

		  
	 	
			 
				 
			 

		  	
			 
				Chicago, Illinois  60603
			 

		  

	 
		

	 

	 
		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.
	 

	 
		

	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
		-14-
	 

	 
		

	 

	 
		

	 

	 
 
	 
		

	 

	 
		

	 

	 
		

	 

	 
		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.
	 

	 			
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	 
	 	 
	
			 
				 
			 

		  	
			 
				SMITH BARNEY FUTURES        
			 

			 
				MANAGEMENT INC.
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				By
			 

		  	
			 
				/s/ Alexander J. Sloane
			 

		  
	
			 
				 
			 

		  	
			 
				   
			 

		  	
			 
				Alexander J. Sloane
			 

			 
				President and Director
			 

		  
	
			 
				 
			 

		  	
			 
				   
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				SMITH BARNEY TIDEWATER 
  FUTURES FUND L. P.
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				By:  
			 

		  	
			 
				Smith Barney 
 Futures Management Inc. 
 (General Partner)
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	 
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				By
			 

		  	
			 
				/s/ Alexander J. Sloane
			 

		  
	
			 
				 
			 

		  	
			 
				   
			 

		  	
			 
				Alexander J. Sloane
			 

			 
				President and Director
			 

		  
	
			 
				 
			 

		  	
			 
				   
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				CHESAPEAKE CAPITAL CORPORATION
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				By
			 

		  	
			 
				/s/ John M.
				Hoade       
			 

		  
	
			 
				 
			 

		  	
			 
				   
			 

		  	
			 
				John M. Hoade
			 

			 
				Executive Vice President
			 

		  
	
			 
				 
			 

		  	
			 
				   
			 

		  	
			 
				 
			 

		  

	 
		

	 

	 
		

	 

	 
		-15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]