EXHIBIT 10.2



                              ADVISORY AGREEMENT

          ADVISORY AGREEMENT (this "Agreement"), dated as of the ___ day of
_____________, 2005, by and among WMT III SERIES G/J TRADING VEHICLE LLC, a
Delaware limited liability company (the "Trading Vehicle"), PREFERRED
INVESTMENT SOLUTIONS CORP., a Connecticut corporation (the "Managing Owner"),
and GRAHAM CAPITAL MANAGEMENT, L.P., a Delaware limited partnership (the
"Advisor"). (As used herein the "Trust" refers to World Monitor Trust III, a
Delaware statutory trust.)

                              W I T N E S SE T H:

          WHEREAS, the Trading Vehicle has been organized primarily for the
purpose of trading, buying, selling, spreading or otherwise acquiring, holding
or disposing of futures, forward and options contracts with respect to
commodities. Other transactions also may be effected from time to time,
including among others, those as more fully identified in Exhibit A hereto;
the foregoing commodities and other transactions are collectively referred to
as "Commodities"; and

          WHEREAS, Series G and Series J are the only members ("Members") of
the Trading Vehicle; and

          WHEREAS, the Managing Owner is the managing owner of the Trust; and

          WHEREAS, the Managing Owner is authorized to utilize the services of
one or more professional commodity trading advisors in connection with the
Commodities trading activities of the various trading vehicles that will be
owned by certain Series of the Trust; and

          WHEREAS, the Trust proposes to make an initial public offering (the
"Offering") of units (the "Units") of beneficial interest in the Trust (the
"Interests") issuable in multiple series of Interests (each, a "Series")
through Kenmar Securities, Inc. (the "Selling



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Agent"), an affiliate of the Managing Owner, and in connection therewith, the
Trust intends to file with the U. S. Securities and Exchange Commission (the
"SEC"), pursuant to the Securities Act of 1933, as amended (the "1933 Act"), a
registration statement on Form S-1 to register the beneficial interests
("Interests"), including the Series G Interests (Units relating to the Series
G Interests are referred to herein as the "Series G Units") and Series J
Interests (Units relating to Series J Interests are referred to herein as
"Series J Units"), and as part thereof a prospectus (which registration
statement, together with all amendments thereto, shall be referred to herein
as the "Registration Statement" and which prospectus, in final form, shall be
referred to herein as the "Prospectus"); and

          WHEREAS, the Trust will prepare and file applications for
registration of the Interests under the securities or Blue Sky laws of such
jurisdictions as the Managing Owner deems appropriate; and

          WHEREAS, the Advisor's present business includes the management of
Commodities accounts for its clients; and

          WHEREAS, the Advisor is registered as a commodity trading advisor
under the Commodity Exchange Act, as amended (the "CE Act"), and is a member
of the National Futures Association (the "NFA") as a commodity trading advisor
and will maintain such registration and membership for the term of this
Agreement; and

          WHEREAS, the Trading Vehicle and the Advisor desire to enter into
this Agreement in order to set forth the terms and conditions upon which the
Advisor will render and implement commodity advisory services on behalf of the
Trading Vehicle during the term of this Agreement.



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          NOW, THEREFORE, the parties agree as follows:

     1. Duties of the Advisor.

          (a) Appointment. The Trading Vehicle hereby appoints the Advisor,
and the Advisor hereby accepts appointment, as its limited attorney-in-fact to
exercise discretion to invest and reinvest in Commodities during the term of
this Agreement the portion of the Trading Vehicle's Net Asset Value (as
described in the Prospectus) which is comprised of the assets attributable to
the Trading Vehicle's assets allocated to the Advisor (the "Trading Vehicle
Allocated Assets") on the terms and conditions and for the purposes set forth
herein. This limited power-of-attorney is a continuing power and shall
continue in effect with respect to the Advisor until terminated hereunder. The
Advisor shall have sole authority and responsibility for independently
directing the investment and reinvestment in Commodities of the Trading
Vehicle Allocated Assets for the term of this Agreement pursuant to the
trading programs, methods, systems, and strategies described in Exhibit A
hereto, which the Trading Vehicle has selected to be utilized by the Advisor
in trading the Trading Vehicle Allocated Assets (collectively referred to as
the Advisor's "Trading Approach"), subject to the trading limitations and
policies as set forth in the Prospectus and attached hereto as Exhibit B (the
"Trading Limitations and Policies"), as the same may be modified from time to
time and provided in writing to the Advisor. The portion of the Trading
Vehicle Allocated Assets to be allocated by the Advisor at any point in time
to one or more of the various trading strategies comprising the Advisor's
Trading Approach will be determined as set forth in Exhibit A hereto, as it
may be amended from time to time, with the consent of the parties, it being
understood that trading gains and losses automatically will alter the agreed
upon allocations. Upon receipt of a new allocation, the Advisor will determine
and, if required, adjust its trading in light of the new allocation.

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          (b) Allocation of Responsibilities. The Trading Vehicle will have
the responsibility for the management of any portion of the Trading Vehicle
Allocated Assets that are not invested in Commodities. The Advisor will use
its good faith and best efforts in determining the investment and reinvestment
in Commodities of the Trading Vehicle Allocated Assets in compliance with the
Trading Limitations and Policies, and in accordance with the Advisor's Trading
Approach. In the event that the Trading Vehicle shall, in its sole discretion,
determine in good faith following consultation appropriate under the
circumstances with the Advisor that any trading instruction issued by the
Advisor violates the Trading Limitations and Policies, then the Trading
Vehicle, following reasonable notice to the Advisor appropriate under the
circumstances, may override such trading instruction and shall be responsible
therefor. Nothing herein shall be construed to prevent the Managing Owner from
imposing any limitation(s) on the trading activities of the Trading Vehicle
beyond those enumerated in the Prospectus if the Managing Owner determines
that such limitation(s) are necessary or in the best interests of the Trust or
the Trading Vehicle, in which case the Advisor will adhere to such limitations
following written notification thereof.

          (c) Gains From Trading Approach. The Advisor agrees that at least
90% of the annual gross income and gain, if any, generated by its Trading
Approach for the Trading Vehicle Allocated Assets will be "qualifying income"
within the meaning of Section 7704(d) of the Internal Revenue Code (the
"Code") (it being understood that such income will largely result from buying
and selling Commodities and that the Trading Approach is not intended
primarily to generate interest income). The Advisor also agrees that it will
attempt to trade in such a manner as to allow non-U.S. Limited Owners to
qualify for the safe harbors found in Section 864(b)(2) of the Code and as
interpreted in the regulations promulgated or proposed thereunder.



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          (d) Modification of Trading Approach. In the event the Advisor
requests to use, or the Trading Vehicle requests the Advisor to use, a trading
program, system, method or strategy other than or in addition to the trading
programs, systems, methods or strategies comprising the Trading Approach in
connection with trading for the Trading Vehicle (including, without
limitation, the deletion or addition of an agreed upon trading program,
system, method or strategy to the then agreed upon Trading Approach or a
modification in the leverage employed), either in whole or in part, the
Advisor may not do so and/or shall not be required to do so, as appropriate,
unless both the Trading Vehicle and the Advisor consent thereto in writing.

          (e) Notification of Material Changes. The Advisor also agrees to
give the Trading Vehicle prior written notice of any proposed material change
in its Trading Approach and agrees not to make any material change in such
Trading Approach (as applied to the Trading Vehicle) over the objection of the
Trading Vehicle, it being understood that the Advisor shall be free to
institute non-material changes in its Trading Approach (as applied to the
Trading Vehicle) without prior written notification. Without limiting the
generality of the foregoing, refinements to the Advisor's Trading Approach,
and the deletion (but not the addition) of Commodities (other than the
addition of Commodities then being traded (i) on organized domestic
commodities exchanges, (ii) on foreign commodities exchanges recognized by the
Commodity Futures Trading Commission (the "CFTC") as providing customer
protections comparable to those provided on domestic exchanges or (iii) in the
interbank foreign currency market) to or from the Advisor's Trading Approach
shall not be deemed a material change in the Advisor's Trading Approach, and
prior approval of the Trading Vehicle shall not be required therefor. The
utilization of forward markets in addition to those enumerated in Exhibit D
hereto would be


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deemed a material change to the Advisor's Trading Approach and prior approval
shall be required therefor.

          Subject to adequate assurances of confidentiality, the Advisor
agrees that it will discuss with the Trading Vehicle upon request any trading
methods, programs, systems or strategies used by it for trading customer
accounts which differ from the Trading Approach used for the Trading Vehicle,
provided that nothing contained in this Agreement shall require the Advisor to
disclose what it deems to be proprietary or confidential information.

          (f) Request for Information. The Advisor agrees to provide the
Trading Vehicle with any reasonable information concerning the Advisor that
the Trading Vehicle may reasonably request (other than the identity of its
customers or proprietary or confidential information concerning the Trading
Approach), subject to receipt of adequate assurances of confidentiality by the
Trading Vehicle, including, but not limited to, information regarding any
change in control, key personnel, Trading Approach and financial condition
which the Trading Vehicle reasonably deems to be material to the Trading
Vehicle; the Advisor also shall notify the Trading Vehicle of any such matters
the Advisor, in its reasonable judgment, believes may be material to the
Trading Vehicle relating to the Advisor and its Trading Approach. During the
term of this Agreement, the Advisor agrees to provide the Trading Vehicle with
updated monthly information related to the Advisor's performance results
within a reasonable period of time after the end of the month to which it
relates.

          (g) Notice of Errors. The Advisor is responsible for promptly
reviewing all oral and written confirmations it receives to determine that the
Commodities trades were made in accordance with the Advisor's instructions. If
the Advisor determines that an error was made in connection with a trade or
that a trade was made other than in accordance with the Advisor's


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instructions, the Advisor shall promptly notify the Trading Vehicle of this
fact and shall utilize its reasonable efforts to cause the error or
discrepancy to be corrected.

          (h) Liability. Neither the Advisor nor any employee, partner or
officer of the Advisor, nor any person who controls the Advisor, shall be
liable to the Trading Vehicle, its officers, directors, shareholders, members,
or employees, or any person who controls the Trading Vehicle, or any of their
respective successors or assignees under this Agreement, except by reason of
acts or omissions in material breach of this Agreement or due to their willful
misconduct or gross negligence or by reason of their not having acted in good
faith in the reasonable belief that such actions or omissions were in, or not
opposed to, the best interests of the Trading Vehicle and its Members; it
being understood that the Advisor makes no guarantee of profit nor guarantee
against loss, and that all purchases and sales of Commodities shall be for the
account and risk of the Trading Vehicle, and the Advisor shall incur no
liability for trading profits or losses resulting therefrom provided the
Advisor would not otherwise be liable to the Trading Vehicle under the terms
hereof.

          (i) Initial Allocation. Initially, the Trading Vehicle Allocated
Assets will total an amount equal to the assets of the Trust allocable to the
Trading Vehicle, including all cash and cash equivalents held by the Trust in
respect of the Trading Vehicle reduced by all liabilities of the Trust
incurred specifically in respect of the Trading Vehicle and further reduced by
a pro-rata share of the total liabilities of the Trust which are not otherwise
specifically allocable to another trading vehicle, at the conclusion of the
Trust's Initial Offering Period (as described in the Prospectus).

          (j) Additional Allocations and Reallocations. Subject to Section 10
below, the Trading Vehicle may, on a monthly basis during the Trust's
Continuous Offering Period, as


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described in the Prospectus, (i) allocate additional assets to the Advisor,
(ii) reallocate the Trading Vehicle Allocated Assets away from the Advisor to
another commodity trading advisor (an "Other Advisor"), (iii) reallocate
assets to the Advisor from an Other Advisor or (iv) allocate additional
capital with respect to the Trading Vehicle Allocated Assets to an Other
Advisor.

          (k) Delivery of Disclosure Document. The Advisor agrees to provide
to the Managing Owner with any amendment or supplement to the Disclosure
Document attached hereto as Exhibit D (an "Update") as soon as such Update is
available for distribution.

     2. Indemnification.

          (a) The Advisor. Subject to the provisions of Section 3 of this
Agreement, the Advisor, each partner, officer and employee of the Advisor, and
each person who controls the Advisor, shall be indemnified, defended and held
harmless by the Trading Vehicle and the Managing Owner, from and against any
and all losses, judgments, liabilities, expenses (including, without
limitation, reasonable attorneys' fees) and amounts paid in settlement of any
claims in compliance with the conditions specified below (collectively,
"Losses") sustained by the Advisor (i) in connection with any acts or
omissions of the Advisor, or any of its partners, officers or employees
relating to its management of the Trading Vehicle Allocated Assets and/or (ii)
as a result of a material breach of this Agreement by the Trading Vehicle or
the Managing Owner, provided that (i) such Losses were not the result of
negligence, misconduct or a material breach of this Agreement on the part of
the Advisor, any of its partners, officers or employees or any person
controlling the Advisor, (ii) the Advisor, and its partners, officers,
employees, and each person controlling the Advisor, acted or omitted to act in
good faith and in a manner reasonably believed by such person to be in, or not
opposed to, the best interests of the Trading Vehicle and its Members and
(iii) any such indemnification will only be recoverable from the


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Trading Vehicle Allocated Assets and not from any assets of Series G, Series J
or any other Series of the Trust, and provided further, that no
indemnification shall be permitted under this Section 2 for amounts paid in
settlement if either (A) the Advisor fails to notify the Trading Vehicle of
the terms of any settlement proposed, at least 15 days before any amounts are
paid or (B) the Trading Vehicle does not approve the amount of the settlement
within 15 days (such approval not to be withheld unreasonably).
Notwithstanding the foregoing, the Trading Vehicle shall at all times have the
right to offer to settle any matter with the approval of the Advisor (which
approval shall not be withheld unreasonably), and if the Trading Vehicle
successfully negotiates a settlement and tenders payment therefor to the party
claiming indemnification (the "Indemnitee"), the Indemnitee must either use
its reasonable efforts to dispose of the matter in accordance with the terms
and conditions of the proposed settlement or the Indemnitee may refuse to
settle the matter and continue its defense in which latter event the maximum
liability of the Trading Vehicle to the Indemnitee shall be the amount of said
proposed settlement. Any indemnification by the Trading Vehicle under this
Section 2, unless ordered by a court, shall be made only as authorized in the
specific case by the Trading Vehicle.

          (b) Default Judgments and Confessions of Judgment. None of the
foregoing provisions for indemnification shall be applicable with respect to
default judgments or confessions of judgment entered into by the Indemnitee,
with its knowledge, without the prior consent of the Trading Vehicle.

          (c) Procedure. In the event that an Indemnitee under this Section 2
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


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Indemnitee shall be indemnified only for that portion of the Losses incurred
in such action, suit or proceeding which relates to the matters for which
indemnification can be made.

          (d) Expenses. Expenses incurred in defending a threatened or pending
civil, administrative or criminal action, suit or proceeding against an
Indemnitee shall be paid by the Trading Vehicle from the Trading Vehicle
Allocated Assets in advance of the final disposition of such action, suit or
proceeding if (i) the legal action, suit or proceeding, if sustained, would
entitle the Indemnitee to indemnification pursuant to the terms of this
Section 2, (ii) the Advisor undertakes to repay the advanced funds to the
Trading Vehicle Allocated Assets in cases in which the Indemnitee is not
entitled to indemnification pursuant to this Section 2, and (iii) in the case
of advancement of expenses from the Trading Vehicle Allocated Assets, the
Indemnitee is not likely not to be entitled to indemnification hereunder.

     3. Limits on Claims.

          (a) Prohibited Acts. The Advisor agrees that it will not take any of
the following actions against the Trust, the Trading Vehicle or any Member:
(i) seek a decree or order by a court having jurisdiction in the premises (A)
for relief in respect of the Trust, the Trading Vehicle or any Member in an
involuntary case or proceeding under the federal Bankruptcy Code or any other
federal or state bankruptcy, insolvency, reorganization, rehabilitation,
liquidation or similar law or (B) adjudging the Trust, the Trading Vehicle or
any Member a bankrupt or insolvent or seeking reorganization, rehabilitation,
liquidation, arrangement, adjustment or composition of or in respect of the
Trust, the Trading Vehicle or any Member under the federal Bankruptcy Code or
any other applicable federal or state law or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of the
Trust, the Trading Vehicle, any Member or of any substantial part of any of
its


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properties or ordering the winding up or liquidation of any of its affairs,
(ii) seek a petition for relief, reorganization or to take advantage of any
law referred to in the preceding clause or (iii) file an involuntary petition
for bankruptcy (collectively, "Bankruptcy or Insolvency Action").

          (b) Limited Assets Available. In addition, the Advisor agrees that
for any obligations due and owing to it by the Trading Vehicle, the Advisor
will look solely and exclusively to Trading Vehicle Allocated Assets, to
satisfy its claims and will not seek to attach or otherwise assert a claim
against the other assets of the Trust, the Trading Vehicle or any Member
whether there is a Bankruptcy or Insolvency Action taken or otherwise. The
parties agree that this provision will survive the termination of this
Agreement, whether terminated in a Bankruptcy or Insolvency Action or
otherwise.

          (c) No Limited Owner Liability. This Agreement has been made and
executed by and on behalf of the Trading Vehicle for the benefit of the
Trading Vehicle and the obligations of the Trading Vehicle set forth herein
are not binding upon the Members nor any of the owners of any Series ("Limited
Owners") individually, but are binding only upon the assets and property
identified above, and no resort shall be had to the assets of Series G, Series
J or any other Series issued by the Trust or the Limited Owners' personal
property for the satisfaction of any obligation or claim hereunder.

     4. Obligations of the Trading Vehicle , the Managing Owner and the
Advisor.

          (a) The Registration Statement and Prospectus. Each of the Trading
Vehicle and the Managing Owner agrees to cooperate and use its good faith and
reasonable efforts in connection with (i) the preparation by the Trust of the
Registration Statement and the Prospectus (and any amendments or supplements
thereto), (ii) the filing of the Registration Statement and the Prospectus
(and any amendments or supplements thereto) with such governmental and
self-


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regulatory authorities as the Managing Owner deems appropriate for the
registration and sale of the Interests and the taking of such other actions
not inconsistent with this Agreement as the Managing Owner may determine to be
necessary or advisable in order to make the proposed offer and sale of
Interests lawful in any jurisdiction and (iii) causing the Registration
Statement (and any amendment thereto) to become effective under the 1933 Act
and the Blue Sky securities laws of such jurisdictions as the Managing Owner
may deem appropriate. The Advisor agrees to make all necessary disclosures
regarding itself, its officers and principals, trading performance, Trading
Approach, customer accounts (other than the names of customers, unless such
disclosure is required by law or regulation) and otherwise as may be required,
in the reasonable judgment of the Managing Owner, to be made in the
Registration Statement and Prospectus and in applications to any such
jurisdictions. Except as required by applicable law or regulation, no
description of or other information relating to the Advisor may be distributed
by the Managing Owner without the prior written consent of the Advisor, which
consent shall not be unreasonably withheld or delayed; provided that
distribution of performance information relating to the Trading Vehicle's
account shall not require consent of the Advisor.

          (b) Road Shows. The Advisor agrees to make representatives of its
marketing department available to participate in "road show" and similar
presentations in connection with the offering of the Series G Interests to the
extent reasonably requested by the Managing Owner, on the following
conditions: (i) all expenses incurred by the Advisor in the course of such
participation will be shared between and among the Advisor, the Managing Owner
and/or the Selling Agent, in such amounts as shall be agreed among the
parties, (ii) the Advisor shall not be obligated to take any action which
might require registration as a broker-dealer or investment adviser under any
applicable federal or state law and (iii) the Advisor shall not be required to


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assist in "road show" or similar presentations to the extent that it
reasonably believes that doing so would interfere with its trading, marketing
or other activities.

          (c) Advisor Not A Promoter. The parties acknowledge that the Advisor
has not been, either alone or in conjunction with the Selling Agent or its
affiliates, an organizer or promoter of the Trading Vehicle, and it is not
intended by the parties that the Advisor shall have any liability as such.

          (d) Filings. The Advisor acknowledges that the Trust may at any time
determine not to file the Registration Statement with the SEC or withdraw the
Registration Statement from the SEC or any other governmental or
self-regulatory authority with which it is filed or otherwise terminate the
Registration Statement or the offering of Interests. Upon any such withdrawal
or termination, or if the "minimum" (i) aggregate number of Units or (ii)
Series G Units or Series J Units required to be sold pursuant to the
Prospectus is not sold, this Agreement shall terminate and, except for the
payment of expenses as set forth in subparagraph 4(b) above and in paragraph
2, neither the Managing Owner nor the Trading Vehicle shall have any
obligations to the Advisor with respect to this Agreement nor shall the
Advisor have any obligations to the Managing Owner or the Trading Vehicle with
respect to this Agreement.

          (e) Representation Agreement. On or prior to commencement of the
offering of Interests pursuant to the Prospectus, the parties agree to execute
a Representation Agreement relating to the offering of the Series G Interests
and Series J Interests (the "Representation Agreement") substantially in the
form of Exhibit C to this Agreement.

     5. Advisor Independence.

          (a) Independent Contractor. The Advisor shall for all purposes
herein be deemed to be an independent contractor with respect to the Trading
Vehicle, the Managing


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Owner and its affiliates and each other commodity trading advisor that may in
the future provide commodity trading advisory services to the Trading Vehicle
and the Managing Owner and its affiliates and shall, unless otherwise
expressly authorized, have no authority to act for or to represent the Trading
Vehicle, the Managing Owner and its affiliates, any other commodity trading
advisor or the Selling Agent in any way or otherwise be deemed to be a general
agent, joint venturer or partner of the Trading Vehicle, the Managing Owner
and its affiliates or any other commodity trading advisor or in any way be
responsible for the acts or omissions of the Trading Vehicle, the Managing
Owner and its affiliates or any other commodity trading advisor as long as it
is acting independently of such persons.

          (b) Purchase of Interests. Any of the Advisor, its principals and
employees may, in its discretion, purchase Interests in the Trust.

          (c) Confidentiality. The Trading Vehicle and the Managing Owner
acknowledge that the Trading Approach of the Advisor is the confidential
property of the Advisor. Nothing in this Agreement shall require the Advisor
to disclose the confidential or proprietary details of its Trading Approach.
The Trading Vehicle and the Managing Owner further agree that they will keep
confidential and will not disseminate the Advisor's trading advice to the
Trading Vehicle, except as, and to the extent that, it may be determined by
the Trading Vehicle to be (i) necessary for the monitoring or conduct of the
business of the Trading Vehicle, including the performance of brokerage
services by the Trading Vehicle's commodity broker(s), or (ii) expressly
required by law or regulation.

     6. Commodity Broker.

          All Commodities traded for the account of the Trading Vehicle shall
be made through such commodity broker or brokers, or counterparty or
counterparties, as the Trading


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Vehicle directs or otherwise in accordance with such order execution
procedures as are agreed upon between the Advisor and the Trading Vehicle.
Except as set forth below, the Advisor shall not have any authority or
responsibility in selecting or supervising any floor brokers or counterparties
for execution of Commodities trades of the Trading Vehicle or for negotiating
floor brokerage commission rates or other compensation to be charged therefor.
The Advisor shall not be responsible for determining that any such broker or
counterparty used in connection with any Commodities transactions meets the
financial requirements or standards imposed by the Trading Vehicle's Trading
Policies and Limitations. At the present time, it is contemplated that the
Trading Vehicle will clear all Commodities trades through UBS Securities LLC
or its affiliates, and it is contemplated that the Trading Vehicle will
execute (but not clear) all foreign currency forwards through its facility
with Bank of America, N.A. (and the Advisor will have Bank of America, N.A.
enter into appropriate "give-in" arrangements with UBS Securities LLC or its
affiliates). The Advisor may, however, with the consent of the Trading
Vehicle, such consent not to be unreasonably withheld, execute transactions at
such other firm(s) and upon such terms and conditions as the Advisor and the
Trading Vehicle agree if such firm(s) agree to "give up" all such transactions
to UBS Securities LLC for clearance. To the extent that the Trading Vehicle
determines to utilize a broker or counterparty other than UBS Securities LLC
or its affiliates, the Trading Vehicle will consult with the Advisor prior to
directing it to utilize such broker or counterparty and will not retain the
services of such firm over the reasonable objection of the Advisor.

     7. Fees.

          In consideration of and in compensation for the performance of the
Advisor's services under this Agreement, the Advisor shall receive from the
Trading Vehicle Allocated


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Assets a monthly management fee (the "Management Fee") and a quarterly
incentive fee (the "Incentive Fee") based on the Trading Vehicle Allocated
Assets, as follows:

          (a) A Management Fee equal to 1/12% of 2.5% (0.2083333) of Trading
Vehicle Allocated Assets determined as of the close of business on the last
day of each month (an annual rate of 2.5%). For purposes of determining the
Management Fee, any distributions, redemptions, or reallocation of the Trading
Vehicle's Allocated Assets made as of the last day of a month shall be added
back to Trading Vehicle's Allocated Assets and there shall be no reduction for
(i) any accrued but unpaid Incentive Fees due the Advisor (under paragraph (b)
below) for the quarter in which such fees are being computed, or (ii) any
accrued but unpaid extraordinary expenses (as described in the Trust's
Declaration Of Trust And Trust Agreement). The Management Fee determined for
any month in which an Advisor manages the Trading Vehicle's Allocated Assets
for less than a full month shall be pro rated, such proration to be calculated
on the basis of the number of days in the month the Trading Vehicle Allocated
Assets were under the Advisor's management as compared to the total number of
days in such month, with such proration to include appropriate adjustments for
any funds taken away from the Advisor's management during the month for
reasons other than distributions or redemptions.

          (b) An Incentive Fee of twenty per cent (20%) (the "Incentive Fee")
of "New High Net Trading Profits" (as hereinafter defined) generated on the
Trading Vehicle Allocated Assets, including realized and unrealized gains and
losses thereon, as of the close of business on the last day of each calendar
quarter (the "Incentive Measurement Date").

          New High Net Trading Profits (for purposes of calculating the
Advisor's Incentive Fee only) will be computed as of the Incentive Measurement
Date and will include such profits (as outlined below) since the immediately
preceding Incentive Measurement Date


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(or, with respect to the first Incentive Measurement Date, since commencement
of operations of the Trading Vehicle (each an "Incentive Measurement Period").

          New High Net Trading Profits for any Incentive Measurement Period
will be the net profits, if any, from trading Trading Vehicle Allocated Assets
during such period (including (i) realized trading profit (loss) plus or minus
(ii) the change in unrealized trading profit (loss) on open positions), and
will be calculated after the determination of (reduction for) the fees charged
to the Trading Vehicle for brokerage commissions, the Trading Vehicle's
transaction fees, costs attributable to the Trading Vehicle or its trading
activities (including without limitation exchange fees and NFA fees), the
Advisor's Management Fee, the operating expenses for which the Trading Vehicle
is responsible, and any extraordinary expenses (e.g., litigation, costs or
damages) paid during an Incentive Measurement Period which are specifically
related to the Advisor, but before deduction of any Incentive Fees payable
during the Incentive Measurement Period. New High Net Trading Profits will not
include interest earned or credited on Trading Vehicle Allocated Assets. New
High Net Trading Profits will be generated only to the extent that the
Advisor's cumulative New High Net Trading Profits exceed the highest level of
cumulative New High Net Trading Profits achieved by the Advisor as of a
previous Incentive Measurement Date. Except as set forth below, net losses
from prior quarters must be recouped before New High Net Trading Profits can
again be generated. If a withdrawal or distribution occurs or if this
Agreement is terminated at any date that is not an Incentive Measurement Date,
the date of the withdrawal or distribution or termination will be treated as
if it were an Incentive Measurement Date, but any Incentive Fee accrued in
respect of the withdrawn assets on such date shall not be paid to the Advisor
until the next scheduled Incentive Measurement Date. New High Net Trading
Profits for an Incentive Measurement Period shall exclude capital


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contributions to the Trading Vehicle in an Incentive Measurement Period,
distributions or redemptions paid or payable by the Trading Vehicle during an
Incentive Measurement Period, as well as losses, if any, associated with
redemptions, distributions, and reallocations of assets during the Incentive
Measurement Period and prior to the Incentive Measurement Date (i.e., to the
extent that assets are allocated away from the Advisor through redemptions,
distributions or allocations caused by the Trading Vehicle), any loss
carryforward attributable to the Advisor shall be reduced in the same
proportion that the value of the assets allocated away from the Advisor
comprises of the value of the Trading Vehicle Allocated Assets prior to such
allocation away from the Advisor. In calculating New High Net Trading Profits,
Incentive Fees paid for a previous Incentive Measurement Period will not
reduce cumulative New High Net Trading Profits in subsequent periods.

          (c) Timing of Payment. Management Fees and Incentive Fees shall be
paid generally within 15 business days following the end of the period for
which they are payable. The first Incentive Fee which may be due and owing to
the Advisor in respect of any New High Net Trading Profits will be due and
owing as of the end of the first calendar quarter during which the Trading
Advisor managed the Trading Vehicle Allocated Assets for at least 45 days. If
an Incentive Fee shall have been paid by the Trading Vehicle to the Advisor in
respect of any calendar quarter and the Advisor shall incur subsequent losses
on the Trading Vehicle Allocated Assets, the Advisor shall nevertheless be
entitled to retain amounts previously paid to it in respect of New High Net
Trading Profits.

          (d) Fee Data. The Trading Vehicle will provide the Advisor with the
data used by the Trading Vehicle to compute the foregoing fees generally
within 15 business days of the end of the relevant period.



                                      18
<PAGE>

          (e) Third Party Payments. Neither the Advisor nor any of its
officers, directors, employees or stockholders shall receive any commissions,
compensation, remuneration or payments whatsoever from any broker with which
the Trading Vehicle carries an account for transactions executed in the
Trading Vehicle's account. The parties acknowledge that a spouse of any of the
foregoing persons may receive floor brokerage commissions in respect of trades
effected pursuant to the Advisor's Trading Approach on behalf of the Trading
Vehicle, which payment shall not violate the preceding sentence.

     8. Term and Termination.

          (a) Term. This Agreement shall commence on the date hereof and,
unless sooner terminated pursuant to paragraph (b), (c), or (d) of this
Section 8, shall continue in effect until the close of business on the last
day of the month ending twelve full months following the commencement of the
Trading Vehicle's trading activities. Thereafter, unless this Agreement is
terminated pursuant to paragraphs (b), (c), or (d) of this Section 8, this
Agreement shall be renewed automatically on the same terms and conditions set
forth herein for successive additional one-year terms, each of which shall
commence on the first day of the month subsequent to the conclusion of the
preceding term. Subject to Section 8(d) hereof, the automatic renewal(s) set
forth in the preceding sentence hereof shall not be affected by (i) any
allocation of the Trading Vehicle Allocated Assets away from the Advisor
pursuant to this Agreement or (ii) the retention of Other Advisors following a
reallocation or otherwise.

          (b) Automatic Termination. This Agreement shall terminate
automatically in the event that the Trading Vehicle is terminated or the Trust
is terminated. In addition, this Agreement shall terminate automatically in
the event that the Net Asset Value of Trading Vehicle Allocated Assets decline
as of the end of any business day by at least 40% from the Net


                                      19
<PAGE>

Asset Value of Trading Vehicle Allocated Assets (i) as of the beginning of the
first day of this Agreement or (ii) as of the beginning of the first day of
any calendar year, as adjusted on an ongoing basis by (A) any decline(s) in
the Trading Vehicle Allocated Assets caused by distributions, redemptions,
reallocations and withdrawals, and (B) additions to the Trading Vehicle
Allocated Assets caused by additional allocations.

          (c) Optional Termination Right of The Trading Vehicle. This
Agreement may be terminated at any time at the election of the Trading Vehicle
in its sole discretion upon at least 30 days' prior written notice to the
Advisor. This Agreement also may be terminated at the election of the Trading
Vehicle upon prior written notice to the Advisor in the event that: (i) the
Trading Vehicle determines in good faith that the Advisor is unable to use its
agreed upon Trading Approach to any material extent, as such Trading Approach
may be refined or modified in the future in accordance with the terms of this
Agreement for the benefit of the Trading Vehicle; (ii) the Advisor's
registration as a commodity trading advisor under the CE Act or membership as
a commodity trading advisor with the NFA is revoked, suspended, terminated or
not renewed; (iii) the Trading Vehicle determines in good faith that the
Advisor has failed to conform, and after receipt of written notice, continues
to fail to conform in any material respect, to (A) any of the Trading
Vehicle's Trading Limitations and Policies or (B) the Advisor's Trading
Approach; (iv) there is an unauthorized assignment of this Agreement by the
Advisor; (v) the Advisor dissolves, merges or consolidates with another
entity, sells or transfers a substantial portion of its assets or its business
goodwill, or sells or transfers any portion of its Trading Approach utilized
with respect to the Trading Vehicle, in each instance without the consent of
the Trading Vehicle; (vi) Kenneth G. Tropin is not in control of the Advisor's
trading activities for the Trading Vehicle; (vii) the Advisor becomes bankrupt
(admitted or decreed) or


                                      20
<PAGE>

insolvent; (viii) for any other reason if the Trading Vehicle determines in
good faith that such termination is essential for the protection of the
Trading Vehicle or any Member including, without limitation, a good faith
determination by the Trading Vehicle that the Advisor has breached a material
obligation to the Trading Vehicle under this Agreement relating to the trading
of the Trading Vehicle Allocated Assets.

          (d) Optional Termination Right of Advisor. The Advisor shall have
the right to terminate this Agreement at any time upon written notice to the
Trading Vehicle, in the event: (i) of the receipt by the Advisor of an opinion
of independent counsel satisfactory to the Advisor and the Trading Vehicle
that by reason of the Advisor's activities with respect to the Trading Vehicle
it is required to register as an investment adviser under the Investment
Advisers Act of 1940 and it is not so registered; (ii) that the registration
of the Managing Owner as a commodity pool operator under the CE Act or its NFA
membership as a commodity pool operator is revoked, suspended, terminated or
not renewed; (iii) that the Trading Vehicle (A) imposes additional trading
limitation(s) pursuant to Section 1 of this Agreement which the Advisor does
not agree to follow in its management of the Trading Vehicle Allocated Assets
or (B) overrides trading instructions of the Advisor; (iv) the amount of the
Trading Vehicle Allocated Assets decreases to less than $4 million as the
result of redemptions, distributions, reallocations of Trading Vehicle
Allocated Assets, or deleveraging initiated by the Trading Vehicle but not
trading losses, as of the close of business on any Friday; (v) the Trading
Vehicle elects (pursuant to Section 1 of this Agreement) to have the Advisor
use a different Trading Approach in the Advisor's management of Trading
Vehicle assets from that which the Advisor is then using to manage such assets
and the Advisor objects to using such different Trading Approach; (vi) there
is an unauthorized assignment of this Agreement by the Trading Vehicle; (vii)
there is a material


                                      21
<PAGE>

breach of this Agreement by the Trading Vehicle or the Managing Owner and
after giving written notice to the Trading Vehicle or the Managing Owner (as
the case may be) which identifies such breach, such material breach has not
been cured within ten days following receipt of such notice by the Trading
Vehicle or Managing Owner (as the case may be); (viii) the Advisor provides
the Trading Vehicle with at least 90 days written notice after the initial
term, of the Advisor's desire and intention to terminate this Agreement; or
(ix) other good cause is shown and the written consent of the Trading Vehicle
is obtained (which shall not be withheld or delayed unreasonably).

          (e) Termination Fees. In the event that this Agreement is terminated
with respect to, or by, the Advisor pursuant to this Section 8 or the Trading
Vehicle allocates the Trading Vehicle's assets to Other Advisors, the Advisor
shall be entitled to, and the Trading Vehicle shall pay, the Management Fee
and the Incentive Fee, if any, which shall be computed (i) with respect to the
Management Fee, on a pro rata basis, based upon the portion of the month for
which the Advisor had the Trading Vehicle Allocated Assets under management,
and (ii) with respect to the Incentive Fee, if any, as if the effective date
of termination was the last day of the then current calendar quarter. The
rights of the Advisor to fees earned through the earlier to occur of the date
of expiration or termination shall survive this Agreement until satisfied.

          (f) Termination and Open Positions. Once terminated, the Advisor
shall have no responsibility for existing positions, including delivery
issues, if any, which may result from such positions.

     9. Liquidation of Positions.

          The Advisor agrees to liquidate open positions in the amount that
the Trading Vehicle informs the Advisor, in writing via facsimile or other
equivalent means, that the Trading


                                      22
<PAGE>

Vehicle considers necessary or advisable to liquidate in order to (i) effect
any termination or reallocation pursuant to Sections 1 or 8, respectively or
(ii) fund its pro rata share of any redemption, distribution or Trading
Vehicle expense. The Trading Vehicle shall not, however, have authority to
instruct the Advisor as to which specific open positions to liquidate, except
as provided in Section 1 hereof. The Trading Vehicle shall provide the Advisor
with such reasonable prior notice of such liquidation as is practicable under
the circumstances and will endeavor to provide at least one day prior notice.

     10. Other Accounts of the Advisor.

          (a) Management of Other Accounts and Trading of Proprietary Capital.
Subject to paragraph (c) of this Section 10, the Advisor shall be free to (i)
manage and trade accounts for other investors (including other public and
private commodity pools), and (ii) trade for its own account, and for the
accounts of its partners, shareholders, directors, officers and employees, as
applicable, using the same or other information and Trading Approach utilized
in the performance of services for the Trading Vehicle, so long as in the
Advisor's reasonable judgment the aggregate amount of capital being managed or
traded by the Adviser does not (i) materially impair the Advisor's ability to
carry out its obligations and duties to the Trading Vehicle pursuant to this
Agreement or (ii) create a reasonable likelihood of the Advisor having to
modify materially its agreed upon Trading Approach being used for the Trading
Vehicle in a manner which might reasonably be expected to have a material
adverse effect on the Trading Vehicle.

(b) Equitable Treatment of Accounts. The Advisor agrees, in its management of
accounts other than the account of the Trading Vehicle, that it will not
knowingly or deliberately favor any other account managed or controlled by it
or any of its principals or


                                      23
<PAGE>

affiliates (in whole or in part) over the Trading Vehicle. The preceding
sentence shall not be interpreted to preclude (i) the Advisor from charging
another client fees which differ from the fees to be paid to it hereunder or
(ii) an adjustment by the Advisor in the implementation of any agreed upon
Trading Approach in accordance with the procedures set forth in Section 1
hereof which is undertaken by the Advisor in good faith in order to
accommodate additional accounts. Notwithstanding the foregoing, the Advisor
also shall not be deemed to be favoring another commodity interest account
over the Trading Vehicle's account if the Advisor, in accordance with specific
instructions of the owner of such account, shall trade such account at a
degree of leverage or in accordance with trading policies which shall be
different from that which would normally be applied or if the Advisor, in
accordance with the Advisor's money management principles, shall not trade
certain commodity interest contracts for an account based on the amount of
equity in such account. The Advisor, upon reasonable request and receipt of
adequate assurances of confidentiality, shall provide the Trading Vehicle with
an explanation of the differences, if any, in performance between the Trading
Vehicle and any other similar account pursuant to the same Trading Approach
for which the Advisor or any of its principals or affiliates acts as a
commodity trading advisor (in whole or in part), provided, however, that the
Advisor may, in its discretion, withhold from any such inspection the identity
of the client for whom any such account is maintained.

          (c) Inspection of Records. Upon the reasonable request of and upon
reasonable notice from the Trading Vehicle or the Managing Owner, the Advisor
shall permit each of the Trading Vehicle and the Managing Owner to review at
the Advisor's offices during normal business hours such trading records as it
reasonably may request for the purpose of confirming that the Trading Vehicle
has been treated equitably with respect to advice rendered


                                      24
<PAGE>

during the term of this Agreement by the Advisor for other accounts managed by
the Advisor, which the parties acknowledge to mean that the Trading Vehicle
and the Managing Owner may inspect, subject to such restrictions as the
Advisor may reasonably deem necessary or advisable so as to preserve the
confidentiality of proprietary information and the identity of its clients,
all trading records of the Advisor as it reasonably may request during normal
business hours. The Advisor may, in its discretion, withhold from any such
report or inspection the identity of the client for whom any such account is
maintained and in any event the Trading Vehicle and the Managing Owner shall
keep all such information obtained by them from the Advisor confidential
unless disclosure thereof legally is required or has been made public. Such
right will terminate one year after the termination of this Agreement and does
not permit access to computer programs, records, or other information used in
determining trading decisions.

     11. Speculative Position Limits.

          If, at any time during the term of this Agreement, it appears to the
Advisor that it may be required to aggregate the Trading Vehicle's Commodities
positions with the positions of any other accounts it owns or controls for
purposes of applying the speculative position limits of the CFTC, any
exchange, self-regulatory body or governmental authority, the Advisor promptly
will notify the Trading Vehicle if the Trading Vehicle's positions under its
management are included in an aggregate amount which equals or exceeds the
applicable speculative limit. The Advisor agrees that if its trading
recommendations pursuant to its agreed upon Trading Approach are altered
because of the potential application of speculative position limits, the
Advisor will modify its trading instructions to the Trading Vehicle and its
other accounts in a good faith effort to achieve an equitable treatment of all
accounts; to wit, the Advisor will liquidate Commodities positions and/or
limit the taking of new positions in all accounts it manages, including the


                                      25
<PAGE>

Trading Vehicle, as nearly as possible in proportion to the assets available
for trading of the respective accounts (including "notional" equity) to the
extent necessary to comply with applicable speculative position limits. The
Advisor presently believes that its Trading Approach for the management of the
Trading Vehicle's account, assuming that the allocation is not more than $165
million, can be implemented for the benefit of the Trading Vehicle
notwithstanding the possibility that, from time to time, speculative position
limits may become applicable.

     12. Redemptions, Distributions. Reallocations and Additional Allocations.

          (a) Notice. The Trading Vehicle agrees to give the Advisor at least
one business day prior notice of any proposed redemptions, exchanges,
distributions, reallocations, additional allocations or withdrawals affecting
the Trading Vehicle Allocated Assets.

          (b) Allocations. Redemptions, exchanges, withdrawals and
distributions of Trading Vehicle interests shall be charged against the
Trading Vehicle Allocated Assets.

     13. Brokerage Confirmations and Reports.

          The Trading Vehicle will instruct the Trading Vehicle's brokers and
counterparties to furnish the Advisor with copies of all trade confirmations,
daily equity runs and monthly trading statements relating to the Trading
Vehicle Allocated Assets. The Advisor will maintain records and will monitor
all open positions relating thereto; provided, however, that the Advisor shall
not be responsible for any errors by the Trading Vehicle's brokers or
counterparties. The Managing Owner also will furnish the Advisor with a copy
of the form of all reports, including but not limited to, monthly, quarterly
and annual reports, sent to the Limited Owners and copies of all reports filed
with the SEC, the CFTC and the NFA. The Advisor shall, at the Trading
Vehicle's request, make a good faith effort to provide the Trading Vehicle
with copies of all trade confirmations, daily equity runs, monthly trading
reports or other reports sent


                                      26
<PAGE>

to the Advisor by the Trading Vehicle's commodity broker regarding the Trading
Vehicle and in the Advisor's possession or control as the Trading Vehicle
deems appropriate if the Trading Vehicle cannot obtain such copies on its own
behalf. Upon request, the Trading Vehicle will provide the Advisor with
accurate information with respect to the Trading Vehicle Allocated Assets.

     14. The Advisor's Representations and Warranties.

          The Advisor represents and warrants that:

          (a) it has full capacity and authority to enter into this Agreement
and to provide the services required of it hereunder;

          (b) it will not by entering into this Agreement and by acting as a
commodity trading advisor to the Trading Vehicle (i) be required to take any
action contrary to its incorporating or other formation documents or, to the
best of its knowledge, any applicable statute, law or regulation of any
jurisdiction or (ii) breach or cause to be breached, to the best of its
knowledge, any undertaking, agreement, contract, statute, rule or regulation
to which it is a party or by which it is bound which, in the case of (i) or
(ii), would materially limit or materially adversely affect its ability to
perform its duties under this Agreement;

          (c) it is duly registered as a commodity trading advisor under the
CE Act and is a member of the NFA as a commodity trading advisor and it will
maintain and renew such registration and membership during the term of this
Agreement;

          (d) a copy of its most recent Commodity Trading Advisor Disclosure
Document as required by Part 4 of the CFTC's regulations has been provided to
the Trading Vehicle in the form of Exhibit D hereto (and the Trading Vehicle
acknowledges receipt of such Disclosure Document) and, except as disclosed in
such Disclosure Document, all information in


                                      27
<PAGE>

such Disclosure Document (including, but not limited to, background,
performance, trading methods and trading systems) is true, complete and
accurate in all material respects and is in conformity in all material
respects with the provisions of the CE Act, including the rules and
regulations thereunder, as well as all rules and regulations of the National
Futures Association;

          (e) assuming that the Trading Vehicle Allocated Assets equal not
more than $165 million as of the commencement of trading, the amount of such
assets should not, in the reasonable judgment of the Advisor, result in the
Advisor being required to manage funds in an amount which will exceed the
Advisor's capacity; and

          (f) neither the Advisor nor its stockholders, directors, officers,
employees, agents, principals, affiliates nor any of its or their respective
successors or assigns: (i) shall knowingly use or distribute for any purpose
whatsoever any list containing the names and/or residence addresses of, and/or
other information about, the Limited Owners of the Trust nor (ii) shall
solicit any person it or they know is a Limited Owner of the Trust for the
purpose of soliciting commodity business from such Limited Owner, unless such
Limited Owner shall have first contacted the Advisor or is already a client of
the Advisor or a prospective client with which the Advisor has commenced
discussions or is introduced to or referred to the Advisor by an unaffiliated
agent other than in violation of clause (i).

          The within representations and warranties shall be continuing during
the term of this Agreement, and if at any time any event has occurred which
would make or tend to make any of the foregoing not true in any material
respect with respect to the Advisor, the Advisor promptly will notify the
Trust in writing thereof.



                                      28
<PAGE>

     15.  The Managing Owner's and Trading Vehicle's Representations and
          Warranties.

          Each of the Managing Owner and the Trading Vehicle represents and
warrants only as to itself (and, provided, further, that only the Managing
Owner is making the representations and warranties in Sections 15(c) and
15(e)(ii), and only the Trading Vehicle is making the representation and
warranties in Section 15(e)(i)):

          (a) each has the full capacity and authority to enter into this
Agreement and to perform its obligations hereunder;

          (b) it will not (i) be required to take any action contrary to its
incorporating or other formation documents or any applicable statute, law or
regulation of any jurisdiction or (ii) breach or cause to be breached (A) any
undertaking, agreement, contract, statute, rule or regulation to which it is a
party or by which it is bound or (B) any order of any court or governmental or
regulatory agency having jurisdiction over it, which in the case of (i) or
(ii) would materially limit or materially adversely affect the performance of
its duties under this Agreement;

          (c) it is registered as a commodity pool operator under the CE Act
and is a commodity pool operator member of the NFA, and it will maintain and
renew such registration and membership during the term of this Agreement;

          (d) this Agreement has been duly and validly authorized, executed
and delivered and is a valid and binding agreement, enforceable against each
of them, in accordance with its terms; and

          (e) on the date hereof, it is, and during the term of this
Agreement, it will be (i) in the case of the Trading Vehicle, a duly formed
and validly existing Delaware limited


                                      29
<PAGE>

liability company, in good standing under the laws of the State of Delaware,
and in good standing and qualified to do business in each jurisdiction in
which the nature and conduct of its business requires such qualification and
where the failure to be so qualified would materially adversely affect its
ability to perform its obligations under this Agreement, and (ii) in the case
of the Managing Owner, a duly formed and validly existing corporation, in good
standing under the laws of the State of Connecticut, and in good standing and
qualified to do business in each jurisdiction in which the nature and conduct
of its business requires such qualification and where the failure to be so
qualified would materially adversely affect its ability to perform its
obligations under this Agreement.

          The within representations and warranties shall be continuing during
the tern of this Agreement, and if at any time any event has occurred which
would make or tend to make any of the foregoing not true in any material
respect, the Trading Vehicle in the case of its representations and
warranties, and the Managing Owner in the case of its representations and
warranties, promptly will notify the Advisor in writing.

     16. Assignment.

          This Agreement may not be assigned by any of the parties hereto
without the express prior written consent of the other parties hereto, except
that the Advisor need not obtain the consent of any Other Advisor.

     17. Successors.

          This Agreement shall be binding upon and inure to the benefit of the
parties hereto and the successors and permitted assignees of each of them, and
no other person (except as otherwise provided herein) shall have any right or
obligation under this Agreement. The terms "successors" and "assignees" shall
not include any purchasers, as such, of Interests.



                                      30
<PAGE>

     18. Amendment or Modification or Waiver.

          (a) Changes to Agreement. This Agreement may not be amended or
modified, nor may any of its provisions be waived, except upon the prior
written consent of the parties hereto, except that an amendment to, a
modification of or a waiver of any provision of the Agreement as to the
Advisor need not be consented to by any Other Advisor.

          (b) No Waiver. No failure or delay on the part of any party hereto
in exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. Any waiver granted hereunder must be in writing
and shall be valid only in the specific instance in which given.

     19. Notices.

          Except as otherwise provided herein, all notices required to be
delivered under this Agreement shall be effective only if in writing and shall
be deemed given by the party required to provide notice when received by the
party to whom notice is required to be given and shall be delivered personally
or by registered mail, postage prepaid, return receipt requested or by
facsimile, as follows (or to such other address as the party entitled to
notice shall hereafter designate by written notice to the other parties):



                                      31
<PAGE>

        If to the Managing Owner or the Trading Vehicle:

        Preferred Investment Solutions Corp.
        51 Weaver Street
        Building One South, 2nd Floor
        Greenwich, Connecticut 06831
        Attention:        General Counsel
        Facsimile:        (203) 861-1095

        with a copy to:

        Sidley Austin Brown & Wood LLP
        787 Seventh Avenue
        New York, New York 10019
        Attention:  Michael J. Schmidtberger, Esq.
        Facsimile:  (212) 839-5599

        If to the Advisor:

        Graham Capital Management, L.P.
        40 Highland Avenue
        Rowayton, CT 06853
        Attention:  Isaac Finkle
        Facsimile:  (203) 899-3500




                                      32
<PAGE>


        with a copy to:

        Graham Capital Management, L.P.
        40 Highland Avenue
        Rowayton, CT 06853
        Attention:  Paul Sedlack
        Facsimile:  (203) 899-3500

     20. Governing Law.

          Each party agrees that this Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the conflict of laws principles thereof.

     21. Survival.

          The provisions of this Agreement shall survive the termination of
this Agreement with respect to any matter arising while this Agreement was in
effect.

     22. Promotional Literature.

          Each party agrees that prior to using any promotional literature in
which reference to the other parties hereto is made, it shall furnish in
advance a copy of such information to the other parties and will not make use
of any promotional literature containing references to such other parties to
which such other parties object, except as otherwise required by law or
regulation.

     23. No Liability of Limited Owners.

          This Agreement has been made and executed by and on behalf of the
Trading Vehicle, and the obligations of the Trading Vehicle and/or the
Managing Owner set forth herein are not binding upon any of the Members or
Limited Owners individually, but rather, are binding


                                      33
<PAGE>

only upon the assets and property of the Trading Vehicle and, to the
extent provided herein, upon the assets and property of the Managing Owner.

     24. Headings.

          Headings to sections herein are for the convenience of the parties
only and are not intended to be or to affect the meaning or interpretation of
this Agreement.

     25. Complete Agreement.

          Except as otherwise provided herein, this Agreement and the
Representation Agreement constitute the entire agreement between the parties
with respect to the matters referred to herein, and no other agreement, verbal
or otherwise, shall be binding upon the parties hereto.

     26. Counterparts.

          This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which, when taken together, shall
constitute one original instrument.

     27. Arbitration, Remedies.

          Each party hereto agrees that any dispute relating to the subject
matter of this Agreement shall be settled and determined by arbitration in the
City of New York pursuant to the rules of the NFA or, if the NFA should refuse
to accept the matter, the American Arbitration Association.




                                      34
<PAGE>


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

                                        WMT III SERIES G/J TRADING VEHICLE LLC

                                        By:    WORLD MONITOR TRUST III- SERIES G
                                        Its:   Member

                                            By:   PREFERRED INVESTMENT SOLUTIONS
                                                  CORP., its sole Managing Owner

                                            By:   ______________________________
                                                  Name: Esther E. Goodman
                                                  Title: Chief Operating Officer
                                                         and Senior Executive
                                                         Vice President



                                        By:    WORLD MONITOR TRUST III-SERIES J
                                        Its:   Member

                                            By:   PREFERRED INVESTMENT SOLUTIONS
                                                  CORP., its sole Managing Owner

                                            By:   ______________________________
                                                  Name:  Esther E. Goodman
                                                  Title: Chief Operating Officer
                                                         and Senior Executive
                                                         Vice President



                                        PREFERRED INVESTMENT SOLUTIONS CORP.

                                        By:   ______________________________
                                              Name:  Esther E. Goodman
                                              Title: Chief Operating Officer and
                                                     Senior Executive Vice
                                                     President



                                        GRAHAM CAPITAL MANAGEMENT, L.P.

                                        By:   ______________________________
                                              Name:  Paul Sedlack
                                              Title: Chief Executive Officer


                                      35
<PAGE>


                                   EXHIBIT A

                       TRADING VEHICLE TRADING APPROACH

                  GLOBAL DIVERSIFIED PROGRAM AT 150% LEVERAGE

          The Advisor will make its trading decisions for the Trading Vehicle
according to its Global Diversified Program at 150% Leverage as described in
Exhibit D as amended from time to time and will trade the Trading Vehicle
Allocated Assets at a trading level of 1.5 times the Trading Vehicle Allocated
Assets.

                                      A-1


<PAGE>


                                   EXHIBIT B

                       TRADING LIMITATIONS AND POLICIES

     The following limitations and policies are applicable to assets
representing the Trading Vehicle Allocated Assets as a whole and at the outset
to the Advisor individually; since the Advisor initially will manage 100% of
the Trading Vehicle's Allocated Assets, such application of the limitations
and policies is identical initially for the Trading Vehicle and the Advisor.
The Advisor sometimes may be prohibited from taking positions for the Trading
Vehicle Allocated Assets which it would otherwise acquire due to the need to
comply with these limitations and policies. The Trading Vehicle or the
Managing Owner will monitor compliance with the trading limitations and
policies set forth below, and the Trading Vehicle may impose additional
restrictions (through modification of such limitations and policies) upon the
trading activities of the Advisor as it, in good faith, deems appropriate in
the best interests of the Trading Vehicle, subject to the terms of the
Advisory Agreement.

     The Trading Vehicle will not approve a material change in the following
trading limitations and policies without obtaining the prior written approval
of Limited Owners owning more than 50% of the Series G Interests. The Trading
Vehicle may, however, impose additional trading limitations on the trading
activities of the Trading Vehicle without obtaining such approval if the
Trading Vehicle or the determines such additional limitations to be necessary
in the best interests of the Members.

     Trading Limitations

     The Trading Vehicle will not: (i) engage in pyramiding its commodities
positions (i.e., the use of unrealized profits on existing positions to
provide margin for the acquisition of additional positions in the same or a
related commodity provided, however, unrealized profits may be considered in
determining the current Trading Vehicle Allocated Assets) but may take into
account open trading equity on existing positions in determining generally
whether to acquire additional commodities positions; (ii) borrow or loan money
(except with respect to the initiation or maintenance of commodities positions
or obtaining lines of credit for the trading of forward currency contracts;
provided, however, that the Trading Vehicle is prohibited from incurring any
indebtedness on a non-recourse basis); (iii) permit rebates to be received by
the Trading Vehicle or its affiliates or permit the Trading Vehicle or any
affiliate to engage in any reciprocal business arrangements which would
circumvent the foregoing prohibition; (iv) permit the Advisor to share in any
portion of the commodity brokerage fees paid by the Trading Vehicle; (v)
commingle its assets, except as permitted by law; or (vi) permit the churning
of its commodity accounts.

     The Trading Vehicle will conform in all respects to the rules,
regulations and guidelines of the markets on which its trades are executed.

     Trading Policies

     Subject to the foregoing limitations, the Advisor has agreed to abide by
the trading policies of the Trading Vehicle, which currently are as follows:



                                     B-1
<PAGE>

     (1)  Trading Vehicle Allocated Assets will generally be invested in
contracts which are traded in sufficient volume which, at the time such trades
are initiated, are reasonably expected to permit entering and liquidating
positions.

     (2)  Stop or limit orders may, in the Advisor's discretion, be given with
respect to initiating or liquidating positions in order to attempt to limit
losses or secure profits. If stop or limit orders are used, no assurance can
be given, however, that the clearing broker will be able to liquidate a
position at a specified stop or limit order price, due to either the
volatility of the market or the inability to trade because of market
limitations.

     (3)  The Trading Vehicle generally will not initiate an open position in a
futures contract (other than a cash settlement contract) during any delivery
month in that contract, except when required by exchange rules, law or exigent
market circumstances. This policy does not apply to forward and cash market
transactions.

     (4)  The Trading Vehicle may occasionally make or accept delivery of a
commodity including, without limitation, currencies. The Trading Vehicle also
may engage in EFP transactions involving currencies and metals and other
commodities.

     (5)  The Trading Vehicle may, from time to time, employ trading techniques
such as spreads, straddles and conversions.

     (6)  The Trading Vehicle will not initiate open futures or option
positions which would result in net long or short positions requiring as
margin or premium for outstanding positions in excess of 15% of the Trading
Vehicle's Allocated Assets for any one commodity or in excess of 662/3% of the
Trading Vehicle's Allocated Assets for all commodities combined. Under certain
market conditions, such as an inability to liquidate open commodities
positions because of daily price fluctuations, the Trading Vehicle may be
required to commit Allocated Assets as margin in excess of the foregoing
limits, and in such case the Trading Vehicle will cause the Advisor to reduce
its open futures and option positions to comply to these limits before
initiating new commodities positions.

     (7)  To the extent the Trading Vehicle engages in transactions in forward
currency contracts other than with or through UBS Securities LLC or its
affiliates, the Trading Vehicle will only engage in such transactions with or
through a bank or financial institution which as of the end of its last fiscal
year had an aggregate balance in its capital, surplus and related accounts of
at least $100 million, as shown by its published financial statements for such
year and through other broker-dealer firms with an aggregate balance in its
capital, surplus and related accounts of at least $50 million.




                                     B-2
<PAGE>

                                   EXHIBIT C

                    REPRESENTATION AGREEMENT CONCERNING THE
                   REGISTRATION STATEMENT AND THE PROSPECTUS
                   -----------------------------------------

          REPRESENTATION AGREEMENT ("Agreement") dated as of the ____ day of
______________, 2005, by and among WMT III SERIES G/J TRADING VEHICLE LLC, a
Delaware limited liability company (the "Trading Vehicle"), KENMAR SECURITIES,
INC., a Connecticut corporation (the "Selling Agent"), WORLD MONITOR TRUST III
- SERIES G and WORLD MONITOR TRUST III - SERIES J (individually and
collectively, the "Trust") each a separate series of statutory trust organized
under Chapter 38 of Title 12 of the Delaware Code, PREFERRED INVESTMENT
SOLUTIONS CORP., a Connecticut corporation (the "Managing Owner"), and GRAHAM
CAPITAL MANAGEMENT, L.P., a Delaware limited partnership (the "Advisor").

                             W I T N E S S E T H:

          WHEREAS, the Trust proposes to make an initial public offering (the
"Offering") of units of beneficial interest in the Trust (the "Interests")
issuable in multiple series of Interests (the "Series"), each separately
managed by a different professional commodity trading advisor through the
Selling Agent, an affiliate of the Managing Owner, and in connection
therewith, the Trust intends to file with the U.S. Securities and Exchange
Commission (the "SEC"), pursuant to the U.S. Securities Act of 1933, as
amended (the "1933 Act"), a registration statement on Form S-1 to register the
Interests, including the Series G Interests and Series J Interests, and as a
part thereof a prospectus (which registration statement, together with all
amendments thereto, shall be referred to herein as the "Registration
Statement" and which prospectus in final form, together with all amendments
and supplements thereto, shall be referred to herein as the "Prospectus"); and



<PAGE>

          WHEREAS, the Trading Vehicle and the Managing Owner entered into an
agreement with the Advisor, dated as of __________, 2005 (the "Advisory
Agreement"), pursuant to which the Advisor has agreed to act as a commodity
trading advisor to the Trading Vehicle; and

          WHEREAS, Series G and Series J are the only members of the Trading
Vehicle; and

          WHEREAS, the parties hereto wish to set forth their duties and
obligations to each other with respect to the Registration Statement as of its
effective date and the Prospectus as of the date(s) on which subscribers'
funds are transferred to the trust estate represented by Series G Interests
("Closing Dates(s)").

          NOW, THEREFORE, the parties agree as follows:

          1. Representations and Warranties of the Advisor. The Advisor hereby
represents and warrants to the Selling Agent, the Trading Vehicle, the Trust
and the Managing Owner that:

          a. All information and data made available by the Advisor to the
          Trust and the Managing Owner for purposes of preparing the
          Registration Statement, as of its effective date and the Prospectus
          as of the Closing Date to (i) the Advisor and its affiliates, and
          the controlling persons, shareholders, directors, officers and
          employees of any of the foregoing, (ii) the Advisor's Trading
          Approach (as defined in the Advisory Agreement) and (iii) the actual
          past performance of discretionary accounts directed by the Advisor
          or any principal thereof, including the notes to the tables
          reflecting such actual past performance (hereinafter referred


                                      2
<PAGE>

          to as the Advisor's "Past Performance History") are complete and
          accurate in all material respects, and do not contain an untrue
          statement of a material fact or omit to state a material fact
          required to be stated therein or necessary to make the statements
          therein (with respect to the Prospectus, in light of the
          circumstances in which they were made) not misleading. The Advisor
          also represents and warrants as to the accuracy and completeness in
          all material respects of the underlying data made available by the
          Advisor to the Trust and the Managing Owner for purposes of
          preparing the pro forma performance tables. Except as specifically
          stated herein, it is understood that no representation or warranty
          is being made with respect to the calculations used to create the
          pro forma performance table or notes thereto. The term "principal"
          in this Agreement shall have the same meaning as that term in
          Commodity Futures Trading Commission (the "CFTC") Regulation ss.
          4.10(e) under the CE Act.

          b. The Advisor will not distribute the Registration Statement, the
          Prospectus and/or the selling materials related thereto, except as
          may be requested by the Managing Owner in connection with "road
          show" presentations or otherwise.

          c. This Agreement and the Advisory Agreement have been duly and
          validly authorized, executed and delivered on behalf of the Advisor
          and each is a valid and binding agreement enforceable in accordance
          with its terms. The performance of the Advisor's obligations under
          this Agreement and the consummation of the transactions set forth in
          this Agreement, in the Advisory Agreement and in the Registration
          Statement as of its effective date and Prospectus as of the Closing
          Date are not contrary to the provisions of the Advisor's formation
          documents, or


                                      3
<PAGE>

          to the best of its knowledge, any applicable statute, law or
          regulation of any jurisdiction, and will not result in any
          violation, breach or default under any term or provision of any
          undertaking, contract, agreement or order to which the Advisor is a
          party or by which the Advisor is bound.

          d. The Advisor has all governmental and regulatory licenses,
          registrations and approvals required by law as may be necessary to
          perform its obligations under the Advisory Agreement and this
          Agreement and to act as described in the Registration Statement as
          of its effective date and the Prospectus as of the Closing Date
          including, without limitation, registration as a commodity trading
          advisor under the CE Act and membership as a commodity trading
          advisor with the National Futures Association (the "NFA"), and it
          will maintain and renew any required licenses, registrations,
          approvals or memberships during the term of the Advisory Agreement.

          e. On the date hereof, the Advisor is, and at all times during the
          term of this Agreement will be, a limited partnership duly formed
          and validly existing and in good standing under the laws of its
          jurisdiction of formation and in good standing and qualified to do
          business in each jurisdiction in which the nature or conduct of its
          business requires such qualifications and the failure to be so
          qualified would materially adversely affect the Advisor's ability to
          perform its obligations hereunder or under the Advisory Agreement.
          The Advisor has full capacity and authority to conduct its business
          and to perform its obligations under this Agreement and to act as
          described in the Registration Statement as of its effective date and
          the Prospectus as of the Closing Date.



                                      4
<PAGE>

          f. Subject to adequate assurances of confidentiality, and as
          requested of the Managing Owner, the Advisor has supplied to or made
          available for review by the Managing Owner and the Selling Agent
          (and if requested by the Managing Owner and the Selling Agent to its
          designated auditor) all documents, statements, agreements and
          workpapers requested by them relating to all accounts covered by the
          Advisor's past performance history in the Registration Statement as
          of its effective date and the Prospectus as of the Closing Date
          which are in the Advisor's possession or to which it has access;
          provided, however, that the Advisor may, in its sole discretion
          withhold from any such inspection the identity of the clients for
          whom any such accounts are maintained.

          g. Without limiting the generality of paragraph a. of this Section
          1, neither the Advisor nor any of its principals has managed,
          controlled or directed, on an overall discretionary basis, the
          trading for any commodity account which is required by CFTC
          regulations and the rules and regulations under the 1933 Act to be
          disclosed in the Registration Statement as of its effective date and
          the Prospectus as of the Closing Date which has not been provided by
          the Advisor to the Trust and the Managing Owner for inclusion in the
          Registration Statement as of its effective date and in the
          Prospectus as of the Closing Date as required.

          h. As of the date hereof, there has been no material adverse change
          in the Advisor's past performance history provided by the Advisor to
          the Trust and the Managing Owner for inclusion in the Registration
          Statement or in the Prospectus under the caption "GRAHAM CAPITAL
          MANAGEMENT, L.P." which has not


                                      5
<PAGE>

          been communicated in writing to and received by the Managing Owner
          and the Selling Agent or their counsel.

          i. Except for subsequent performance, as to which no representation
          is made, since the date of the Advisory Agreement, (i) there has not
          been any material adverse change in the condition, financial or
          otherwise, of the Advisor or in the earnings, affairs or business
          prospects of the Advisor, whether or not arising in the ordinary
          course of business, and (ii) there have not been any material
          transactions entered into by the Advisor other than those in the
          ordinary course of its business.

          j. Except as disclosed in the Registration Statement and in the
          Prospectus, there is no pending, or to the best of its knowledge,
          threatened or contemplated action, suit or proceeding before or by
          any court, governmental, administrative or self-regulatory body or
          arbitration panel to which the Advisor or its principals is a party,
          or to which any of the assets of the Advisor is subject which
          reasonably might be expected to result in any material adverse
          change in the condition (financial or otherwise), business or
          prospects of the Advisor or which reasonably might be expected to
          materially adversely affect any of the material assets of the
          Advisor or which reasonably might be expected to (A) impair
          materially the Advisor's ability to discharge its obligations to the
          Trading Vehicle or (B) result in a matter which would require
          disclosure in the Registration Statement and/or Prospectus;
          furthermore the Advisor has not received any notice of an
          investigation by (i) the NFA regarding non-compliance with its rules
          or the CE Act, (ii) the CFTC regarding non-compliance with the CE
          Act, or the rules and


                                      6
<PAGE>

          regulations thereunder or (iii) any exchange regarding
          non-compliance with the rules of such exchange which investigation
          reasonably might be expected to materially impair the Advisor's
          ability to discharge its obligations under this Agreement or the
          Advisory Agreement.

          2. Covenants of the Advisor. If, at any time during the term of the
Advisory Agreement, the Advisor discovers any fact, omission or event, or that
a change of circumstances has occurred, which would make the Advisor's
representations and warranties in Section 1 of this Agreement inaccurate or
incomplete in any material respect, or which might reasonably be expected to
render the Registration Statement or Prospectus, with respect to (i) the
Advisor or its principals, (ii) the Advisor's Trading Approach or (iii) the
Advisor's past performance history, untrue or misleading in any material
respect, the Advisor will provide prompt written notification to the Trading
Vehicle, the Trust, the Managing Owner and the Selling Agent of any such fact,
omission, event or change of circumstance, and the facts related thereto, and
it is agreed that the failure to provide such notification or the failure to
continue to be in compliance with the foregoing representations and warranties
during the term of the Advisory Agreement as soon as possible following such
notification shall be cause for the Trading Vehicle to terminate the Advisory
Agreement with the Advisor on prior written notice to the Advisor. The Advisor
also agrees that, during the term of the Advisory Agreement, from and after
the Effective Date of the Registration Statement and for so long as Interests
in the Trust are being offered, whether during the Initial Offering Period or
during any Continuous Offering Period (as those terms are described in the
Prospectus), it will provide the Selling Agent, the Trust and the Managing
Owner with updated month-end information relating to the Advisor's past
performance history, as required to be disclosed in the performance tables
relating to the


                                      7
<PAGE>

performance of the Advisor in the Prospectus under the caption "GRAHAM CAPITAL
MANAGEMENT, L.P." beyond the periods disclosed therein. The Advisor shall use
its best efforts to provide such information within a reasonable period of
time after the end of the month to which such updated information relates and
the information is available to it.

          3. Modification of Registration Statement or Prospectus. If any
event or circumstance occurs as a result of which it becomes necessary, in the
judgment of the Managing Owner and the Selling Agent, to amend the
Registration Statement in order to make the Registration Statement not
materially misleading or to amend or to supplement the Prospectus in order to
make the Prospectus not materially misleading in light of the circumstances
existing at the time it is delivered to a subscriber, or if it is otherwise
necessary in order to permit the Trust to continue to offer its Interests
subsequent to the Initial Offering Period subject to the limitations set forth
in the Advisory Agreement, the Advisor will furnish such information with
respect to itself and its principals, as well as its Trading Approach and past
performance history as the Managing Owner or the Selling Agent may reasonably
request, and will cooperate to the extent reasonably necessary in the
preparation of any required amendments or supplements to the Registration
Statement and/or the Prospectus.

          4. Advisor's Closing Obligations. On or prior to the Closing Date
with respect to the initial offering of Series G Interests and Series J
Interests (the "Initial Closing Date"), and thereafter, only if requested, on
or prior to each closing date during the continuous offering of Series G
Interests or Series J Interests (each a "Subsequent Closing Date"), the
Advisor shall deliver or cause to be delivered, at the expense of the Advisor,
to the Selling Agent, the Trading Vehicle, the Trust and the Managing Owner,
the reports, certificates and documents described below addressed to them and,
except as may be set forth below, dated the


                                      8
<PAGE>

Initial Closing Date or the Subsequent Closing Date, as appropriate. Unless
the context otherwise requires, the Initial Closing Date and each Subsequent
Closing Date shall each be referred to as a "Closing Date."

          a. A report from the Advisor which shall present, for the period
          from the date after the last day covered by the Advisor's past
          performance history as set forth under "GRAHAM CAPITAL MANAGEMENT,
          L.P." in the Prospectus to the latest practicable month-end before
          the Closing Date, figures which shall show the actual past
          performance of the Advisor (or, if such actual past performance
          information is unavailable, then the estimated past performance) for
          such period, and which shall certify that, to the best of the
          Advisor's knowledge, such figures are complete and accurate in all
          material respects.

          b. A certificate of the Advisor in the form proposed prior to the
          Closing Date by counsel to the Selling Agent, the Trust and the
          Managing Owner, with such changes in such form as are proposed by
          the Advisor or its counsel and as are acceptable to the Selling
          Agent, the Trust and the Managing Owner and their counsel so as to
          make such form mutually acceptable to the Selling Agent, the Trust,
          the Managing Owner, the Advisor and their respective counsel, to the
          effect that:

                    (i) The representations and warranties of the Advisor in
               Section 1 of this Agreement are true and correct in all
               material respects on the date of the certificate as though made
               on such date.



                                      9
<PAGE>

                    (ii) Nothing has come to the Advisor's attention which
               would cause the Advisor to believe that, at any time from the
               time the Registration Statement initially became effective to
               the Closing Date, the Registration Statement, as amended from
               time to time, or the Prospectus, as amended or supplemented
               from time to time, with respect to the Advisor, or its
               affiliates, and controlling persons, shareholders, directors,
               officers or employees of any of the foregoing, or with respect
               to the Advisor's Trading Approach or past performance history,
               contained an untrue statement of a material fact or omitted to
               state a material fact required to be stated therein or
               necessary to make the statements therein (with respect to the
               Prospectus, in light of the circumstances in which they were
               made) not misleading.

                    (iii) The Advisor has performed all covenants and
               agreements herein contained to be performed on its part at or
               prior to the Closing Date.

          c.   A certificate of the Advisor (together with such supporting
          documents as are set forth in such certificate), in the form
          proposed prior to the Closing Date by counsel to the Selling Agent,
          Trading Vehicle, the Trust and the Managing Owner, with such changes
          in such form as are proposed by the Advisor or its counsel and are
          acceptable to the Selling Agent, Trading Vehicle, the Trust and the
          Managing Owner and their counsel so as to make such form mutually
          acceptable to the Selling Agent, the Trading Vehicle, the Trust, the
          Managing Owner, the Advisor and their respective counsel, with
          respect to, (i) the continued


                                      10
<PAGE>

          effectiveness of the organizational documents of the Advisor, (ii)
          the continued effectiveness of the Advisor's registration as a
          commodity trading advisor under the CE Act and membership as a
          commodity trading advisor with the NFA and (iii) the incumbency and
          genuine signature of the President and Secretary of the Advisor.

          d. A certificate from the state of formation of the Advisor, to be
          dated at, on or around the Closing Date, as to its formation and
          good standing.

          5. Advisor Acknowledgements. The Advisor acknowledges that: (i) it
may be a condition to each closing under the Selling Agreement that the
Selling Agent shall have received, at no cost to the Advisor, letter(s) from
certified public accountants or other reputable professionals selected by the
Selling Agent with respect to the past performance history of the Advisor as
set forth in the Selling Agreement and (ii) the Trust may at any time withdraw
the Registration Statement from the SEC or otherwise terminate the
Registration Statement or the offering of Interests, and upon any such
withdrawal or termination or if the "minimum" number of Interests, as
described in the Prospectus, is not sold, this Agreement shall terminate and
none of the parties hereto shall have any obligation to any other party
pursuant to this Agreement, except pursuant to Section 10 of this Agreement to
the extent that such section is applicable.

          6. Warranties of the Trading Vehicle and the Managing Owner. The
Managing Owner hereby only represents and warrants as to itself and the Trust
(as applicable), and the Trading Vehicle hereby only represents and warrants
as to itself, to the Advisor that:

          a. On the date hereof, the Trading Vehicle is, and at all times
          during the term of this Agreement and the Advisory Agreement will
          be, a duly formed and validly


                                      11
<PAGE>

          existing limited liability company in good standing under the laws
          of the State of Delaware and at all times during the term of this
          Agreement and the Advisory Agreement will be in good standing and
          qualified to do business in each jurisdiction in which the nature or
          conduct of its business requires such qualifications and the failure
          to be so qualified materially adversely would affect its ability to
          perform its obligations under this Agreement and the Advisory
          Agreement and to operate as described in the Prospectus, and the
          Managing Owner is, and at all times during the term of this
          Agreement and the Advisory Agreement will be, a duly formed and
          validly existing corporation in good standing under the laws of the
          State of Connecticut and is, and at all times during the term of
          this Agreement and the Advisory Agreement will be, in good standing
          and qualified to do business as a foreign corporation in each other
          jurisdiction in which the nature or conduct of its business requires
          such qualifications and in which the failure to be so qualified
          materially adversely would affect its ability to act as Managing
          Owner of the Trust and to perform its obligations hereunder and
          under the Advisory Agreement, and each has full capacity and
          authority to conduct its business and to perform its obligations
          under this Agreement and the Advisory Agreement and to act as
          described in the Registration Statement as of its effective date and
          the Prospectus as of the Closing Date.

          b. Each of this Agreement and the Advisory Agreement has been duly
          and validly authorized, executed and delivered on behalf of the
          Trading Vehicle, the Trust and the Managing Owner, is a valid and
          binding agreement of the Trading Vehicle, the Trust and the Managing
          Owner and is enforceable in accordance with


                                      12
<PAGE>

          its terms. The performance of the Trading Vehicle's and the Managing
          Owner's obligations under this Agreement and under the Advisory
          Agreement, and the consummation of the transactions set forth in
          this Agreement and the Advisory Agreement, and in the Registration
          Statement as of its effective date and Prospectus as of the Closing
          Date are not contrary to the provisions of the Trust's Declaration
          of Trust and Trust Agreement, as it may be amended from time to time
          (the "Trust Agreement"), or Certificate of Trust, the Managing
          Owner's Articles of Incorporation or By-Laws, or the Trading
          Vehicle's Certificate of Formation or Limited Liability Company
          Agreement, respectively, any applicable statute, law or regulation
          of any jurisdiction and will not result in any violation, breach or
          default under any term or provision of any undertaking, contract,
          agreement or order, to which the Trading Vehicle, the Trust or the
          Managing Owner is a party or by which the Trading Vehicle, the Trust
          or the Managing Owner is bound.

          c. Each of the Trading Vehicle, Trust and the Managing Owner (as the
          case may be) has obtained all required governmental and regulatory
          licenses, registrations and approvals required by law as may be
          necessary to perform their obligations under this Agreement and
          under the Advisory Agreement and to act as described in the
          Registration Statement as of its effective date and in the
          Prospectus as of the Closing Date (including, without limitation,
          the Managing Owner's registration as a commodity pool operator under
          the CE Act and membership as a commodity pool operator with the NFA)
          and will maintain and


                                      13
<PAGE>

          renew any required licenses, registrations, approvals and
          memberships required during the term of this Agreement and the
          Advisory Agreement.

          d. The Trading Vehicle is not required to be registered as an
          investment company under the United States Investment Company Act of
          1940, as amended (the "Investment Company Act").

          e. All authorizations, consents or orders of any court or of any
          federal, state or other governmental or regulatory agency or body
          required for the valid authorization, issuance, offer and sale of
          the Interests have been obtained, and no order preventing or
          suspending the use of the Prospectus with respect to the Interests
          has been issued by the SEC, the CFTC or the NFA. The Registration
          Statement as of its effective date and the Prospectus as of the
          Closing Date contain all statements which are required to be made
          therein, conform in all material respects with the requirements of
          the 1933 Act and the CE Act, and the rules and regulations of the
          SEC and the


                                      14
<PAGE>

          CFTC, respectively, thereunder, and with the rules of the NFA and do
          not contain an untrue statement of a material fact or omit to state
          a material fact required to be stated therein or necessary to make
          the statements therein (with respect to the Prospectus, in light of
          the circumstances in which they are made) not misleading; and at all
          times subsequent hereto up to and including the date of termination
          of the Initial Offering Period and any Subsequent Offering Period,
          the Registration Statement as of its effective date and the
          Prospectus as of the Closing Date will contain all statements
          required to be made therein and will conform in all material
          respects with the requirements of the 1933 Act and the CE Act, and
          the rules and regulations of the SEC and the CFTC, respectively,
          thereunder, and with the rules of the NFA and will not contain any
          untrue statement of a material fact or omit to state a material fact
          required to be stated therein (with respect to the Prospectus, in
          light of the circumstances in which they are made) not misleading;
          provided, however, that this representation and warranty shall not
          apply to any statements or omissions made in reliance upon and in
          conformity with information furnished to the Managing Owner, the
          Trust or to the Selling Agent by or on behalf of the Advisor for the
          express purpose of inclusion in the Registration Statement or the
          Prospectus, including without limitation references to the Advisor
          and its affiliates, and controlling persons, shareholders,
          directors, officers and employees, as well as to the Advisor's
          Trading Approach and past performance history provided such
          references have been approved.

          f. The Registration Statement as of its effective date and the
          Prospectus as of the Closing Date have been delivered to the
          Advisor.

          g. There is no pending, or to its knowledge, threatened or
          contemplated action, suit or proceeding before any court or
          arbitration panel or before or by any governmental, administrative
          or self-regulatory body to which the Trading Vehicle, the Trust, or
          the Managing Owner or the principals of either is a party, or to
          which any of the assets of any of the foregoing persons is subject,
          which might reasonably be expected to result in any material adverse
          change in their condition (financial or otherwise), business or
          prospects or reasonably might be expected to affect adversely in any
          material respect any of their assets or which reasonably might be
          expected to materially impair their ability to discharge their
          obligations


                                      15
<PAGE>

          under this Agreement or under the Advisory Agreement; and neither
          the Trading Vehicle, the Trust nor the Managing Owner has received
          any notice of an investigation by (i) the NFA regarding
          non-compliance with NFA rules or the CE Act, (ii) the CFTC regarding
          non-compliance with the CE Act or the rules and regulations
          thereunder, or (iii) any exchange regarding non-compliance with the
          rules of such exchange which investigation reasonably might be
          expected to materially impair the ability of each of the Trading
          Vehicle and the Managing Owner to discharge its obligations under
          this Agreement or under the Advisory Agreement.

          7. Covenants of the Managing Owner and the Trading Vehicle. If, at
any time during the term of the Advisory Agreement, the Managing Owner or the
Trading Vehicle discovers any fact, omission or event or that a change of
circumstance has occurred which would make its representations and warranties
in Section 6 of this Agreement inaccurate or incomplete in any material
respect, the Trading Vehicle or the Managing Owner (as the case may be), as
appropriate, promptly will provide written notification to the Advisor of such
fact, omission, event or change of circumstance and the facts related thereto.
The Managing Owner shall provide the Advisor with a copy of each amendment to
the Registration Statement and amendment or supplement to the Prospectus, and
no amendment to the Registration Statement or amendment or supplement to the
Prospectus which contains any statement or information regarding the Advisor
will be filed or used unless the Advisor has received reasonable prior notice
and a copy thereof and has consented in writing to such statement or
information being filed and used.



                                      16
<PAGE>

          8. Trading Vehicle's and Managing Owner's Closing Obligations. On or
prior to the Initial Closing Date, and thereafter on or prior to each
Subsequent Closing Date, if the Trading Vehicle and the Managing Owner have
requested that the Advisor provide certificates and documents pursuant to
Section 4 of this Agreement, the Trading Vehicle and the Managing Owner shall
deliver or cause to be delivered to the Advisor, the certificates and
documents described below addressed to the Advisor and, except as may be set
forth below, dated each such Closing Date:

          a. Certificates of the Trading Vehicle and the Managing Owner in the
          form proposed prior to the Closing Date by counsel to the Trading
          Vehicle and the Managing Owner with such changes in such form as are
          proposed by the Advisor or its counsel and are acceptable to the
          Trading Vehicle, the Managing Owner and their counsel so as to make
          such form mutually acceptable to the Trading Vehicle, the Managing
          Owner, the Advisor and their respective counsel, to the effect that:

                    (i) Its representations and warranties in Section 6 of
               this Agreement are true and correct in all material respects on
               the date of the certificates as though made on such date.

                    (ii) It performed all covenants and agreements herein
               contained to be performed on its part at or prior to the
               Closing Date.

          9. Survival of Representations, Warranties and Covenants. All
representations, warranties and covenants in this Agreement or contained in
certificates required to be delivered hereunder shall survive the delivery of
any payment for the Interests and the termination of the Advisory Agreement
and this Agreement, with respect to any matter arising


                                      17
<PAGE>


while the Advisory Agreement or this Agreement was in effect. Furthermore, all
representations, warranties and covenants hereunder shall inure to the benefit
of each of the parties to this Agreement and to their respective successors
and permitted assigns.

          10. Indemnification.

          a. In any action in which the Selling Agent, the Trust, the Trading
          Vehicle, Wilmington Trust Company, a Delaware corporation, in its
          capacity as trustee of the Trust (in such capacity, the "Trustee")
          or the Managing Owner, or their respective controlling persons,
          shareholders, partners, members, managers, directors, officers
          and/or employees of any of the foregoing are parties (individually
          and collectively, the "Sponsor Indemnified Parties"), the Advisor
          agrees to indemnify and hold harmless the Sponsor Indemnified Party
          against any loss, claim, damage, charge, liability (including
          without limitation any liability arising under the 1933 Act or the
          CE Act) or expense (including without limitation, reasonable
          attorneys' and accountants' fees) ("Losses") to which the Sponsor
          Indemnified Parties may become subject, to the extent that such
          Losses arise out of or result from (i) any misrepresentation or
          alleged misrepresentation or material breach or alleged material
          breach of any warranty, covenant or agreement of the Advisor
          contained in this Agreement; (ii) a breach of the disclosure
          requirements under the CE Act that relates to the Advisor's past
          performance history; or (iii) any untrue statement or alleged untrue
          statement of any material fact contained in the Registration
          Statement or the Prospectus or the omission or alleged omission to
          state in the Registration Statement or the Prospectus a material
          fact required to be stated therein or necessary to make the


                                      18
<PAGE>


          statements therein (with respect to the Prospectus, in light of the
          circumstances in which they are made) not misleading, in each case
          under this subclause (iii) to the extent, but only to the extent,
          that such untrue statement or alleged untrue statement or omission
          or alleged omission was made in reliance upon and in material
          conformity with information furnished by the Advisor or its
          representatives to the Trust or Managing Owner or their respective
          representatives for inclusion in the Registration Statement or
          Prospectus, including without limitation, any information relating
          to the Advisor or its affiliates, controlling persons, shareholders,
          partners, directors, officers and employees, as well as to the
          Advisor's Trading Approach and past performance history.

          b. In any action in which the Advisor, or its controlling persons,
          or any of their respective shareholders, partners, directors,
          officers and/or employees (individually and collectively, the
          "Advisor Indemnified Parties") are parties, the Managing Owner
          agrees (A) to indemnify and hold harmless the Advisor Indemnified
          Parties against any Losses, to the extent that such Losses arise out
          of or result from (i) any misrepresentation or alleged
          misrepresentation or material breach or alleged material breach of
          any warranty, covenant or agreement of the Trust or the Managing
          Owner contained in this Agreement, or (ii) any untrue statement or
          alleged untrue statement of any material fact regarding the Trust or
          the Managing Owner contained in the Registration Statement or the
          Prospectus or the omission or alleged omission to state in the
          Registration Statement or the Prospectus a material fact regarding
          the Trust or the Managing Owner required to


                                      19
<PAGE>


          be stated therein or necessary to make the statements therein (with
          respect to the Prospectus, in light of the circumstances in which
          they are made) not misleading.

          c. None of the indemnifications contained in this Section 10 shall
          be applicable with respect to default judgments or confessions of
          judgment, or to settlements entered into by an indemnified party
          claiming indemnification without the prior written consent of the
          indemnifying party.

          d. Promptly after receipt by an indemnified party under this Section
          10 of notice of any claim or dispute or commencement of any action
          or litigation, such indemnified party will, if a claim in respect
          thereof is to be made against an indemnifying party under this
          Section 10, notify the indemnifying party of the commencement
          thereof; but the omission to notify the indemnifying party will not
          relieve it from any liability which it may have to any indemnified
          party otherwise than under this Section 10 except to the extent, if
          any, that such failure or delay prejudiced the indemnifying party in
          defending against the claim. In case any such claim, dispute, action
          or litigation is brought or asserted against any indemnified party,
          and it timely notifies the indemnifying party of the commencement
          thereof, the indemnifying party will be entitled to participate in
          the defense therein, and to the extent that it may wish, to assume
          such defense thereof, with counsel specifically approved in writing
          by such indemnified party, such approval not to be unreasonably
          withheld, following notice from the indemnifying party to such
          indemnified party of its election so to assume the defense thereof,
          in which event, the indemnifying party will not be liable to such
          indemnified party under this Section 10 for any legal or other
          expenses


                                      20
<PAGE>


          subsequently incurred by such indemnified party in connection with
          the defense thereof, but shall continue to be liable to the
          indemnified party in all other respects as heretofore set forth in
          this Section 10. Notwithstanding any other provisions of this
          Section 10, if, in any claim, dispute, action or litigation as to
          which indemnity is or may be available, any indemnified party
          reasonably determines that its interests are or may be, in whole or
          in part, adverse to the interests of the indemnifying party, the
          indemnified party may retain its own counsel in connection with such
          claim, dispute, action or litigation and shall continue to be
          indemnified by the indemnifying party for any legal or any other
          expenses reasonably incurred in connection with investigating or
          defending such claim, dispute, action or litigation.

          e. Expenses incurred by an indemnified party in defending a
          threatened or asserted claim or a threatened or pending action shall
          be paid by the indemnifying party in advance of final disposition or
          settlement of such matter, if and to the extent that the person on
          whose behalf such expenses are paid shall agree in writing to
          reimburse the indemnifying party in the event indemnification is not
          permitted under this Section 10 upon final disposition or
          settlement.

          f. The parties hereto acknowledge and agree on their own behalf that
          the indemnities provided in this Agreement shall be inapplicable in
          the event of any loss, claim, damage, charge or liability arising
          out of or based upon, but limited to the extent caused by, any
          misrepresentation or breach of any warranty, covenant or agreement
          of any indemnified party to any indemnifying party contained in this
          Agreement.



                                      21
<PAGE>


          11. Limits on Claims. The Advisor agrees that it will not take any
of the following actions against the Trust: (i) seek a decree or order by a
court having jurisdiction in the premises (A) for relief in respect of the
Trust in an involuntary case or proceeding under the U.S. Bankruptcy Code or
any other federal or state bankruptcy, insolvency, reorganization,
rehabilitation, liquidation or similar law or (B) adjudging the Trust a
bankrupt or insolvent or seeking reorganization, rehabilitation, liquidation,
arrangement, adjustment or composition of or in respect of the Trust under the
U.S. Bankruptcy Code or any other applicable federal or state law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
(or other similar official) of the Trust or of any substantial part of any of
its properties, or ordering the winding up or liquidation of any of its
affairs, (ii) seek a petition for relief, reorganization or to take advantage
of any law referred to in the preceding clause or (iii) file an involuntary
petition for bankruptcy (collectively, "Bankruptcy or Insolvency Action"). In
addition, the Advisor agrees that for any obligations due and owing to it by
the Trading Vehicle, the Advisor will look solely and exclusively to the
assets of the Trading Vehicle, to satisfy its claims and will not seek to
attach or otherwise assert a claim against the assets of Series G, Series J or
any other Series or the other assets of the Trust, whether there is a
Bankruptcy or Insolvency Action taken. The parties agree that this provision
will survive the termination of this Agreement, whether terminated in a
Bankruptcy or Insolvency Action or otherwise.

          12. Notices. Any notices under this Agreement required to be given
shall be effective only if given or confirmed in writing, shall be deemed
given by the party providing notice when received by the party to whom notice
is being given and shall be sent certified mail, postage prepaid, or hand
delivered, to the following address, or to such other address as a party may
specify by written notice to each of the other parties hereto:





                                      22
<PAGE>

If to the Selling Agent:

Kenmar Securities, Inc.
51 Weaver Street
Building One South, 2nd Floor
Greenwich, Connecticut 06831
Attention:  General Counsel

If to the Managing Owner, the Trust or the
Trading Vehicle:

Preferred Investment Solutions Corp.
51 Weaver Street
Building One South, 2nd Floor
Greenwich, Connecticut 06831
Attention:  General Counsel
Facsimile: (203) 861-1095

with a copy to:

Michael J. Schmidtberger, Esq.
Sidley Austin Brown & Wood LLP
787 Seventh Avenue
New York, New York 10019
Facsimile: (212) 839-5599

If to the Advisor:

Graham Capital Management, L.P.
40 Highland Avenue
Rowayton, CT 06853
Attention: Isaac Finkle
Facsimile: (203) 899-3500

With a copy to:

Graham Capital Management, L.P.
40 Highland Avenue
Rowayton, CT 06853
Attention: Paul Sedlack
Facsimile: (203) 899-3500

          13. Governing Law. This Agreement shall be deemed to be made under
the laws of the State of New York applicable to contracts made and to be
performed in that State and


                                      23
<PAGE>

shall be governed by and construed in accordance with the laws of that State,
without regard to the conflict of laws principles.

          14. Arbitration, Remedies. Each party hereto agrees that any dispute
relating to the subject matter of this Agreement shall be settled and
determined by arbitration in the City of New York pursuant to the rules of NFA
or, if NFA should refuse to accept the matter, the American Arbitration
Association. The parties also agree that the award of the arbitrators shall be
final and may be enforced in the courts of New York and in any other courts
having jurisdiction over the parties.

          15. Assignment. This Agreement may not be assigned by any party
without the express prior written consent of each of the other parties hereto.

          16. Amendment or Modification or Waiver. This Agreement may not be
amended or modified except by the written consent of each of the parties
hereto.

          17. Successors. Except as set forth in Section 10 of this Agreement,
this Agreement is made solely for the benefit of and shall be binding upon the
Trading Vehicle, the Trust, the Managing Owner, the Selling Agent, the Advisor
and the respective successors and permitted assigns of each of them, and no
other person shall have any right or obligation under this Agreement. The
terms "successors" and "assigns" shall not include any purchasers, as such, of
Interests.

          18. Survival. The provisions of this Agreement shall survive the
termination of this Agreement with respect to any matter arising while this
Agreement was in effect.



                                      24
<PAGE>

          19. No Waiver. No failure or delay on the part of any party hereto
in exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. Any waiver granted hereunder must be in writing
and shall be valid only in the specific instance in which given.

          20. No Liability of Limited Owners. This Agreement has been made and
executed by and on behalf of the Trading Vehicle, the Trust and the Managing
Owner, and the obligations of the Trading Vehicle and/or the Managing Owner
set forth in this Agreement are not binding upon any of the Limited Owners,
Series G, Series J or any other Series individually, but rather, are binding
only upon the assets and property of the Trading Vehicle and, to the extent
provided herein, upon the assets and property of the Managing Owner.

          21. Headings. Headings to the Sections in this Agreement are for the
convenience of the parties only and are not intended to be or to affect the
meaning or interpretation of this Agreement.

          22. Complete Agreement. Except as otherwise provided herein, this
Agreement and the Advisory Agreement constitute the entire agreement among the
parties with respect to the matters referred to herein, and no other
agreement, verbal or otherwise, shall be binding upon the parties hereto.

          23. Counterparts. This Agreement may be executed in one or more
counterparts, all of which, when taken together, shall be deemed to constitute
one original instrument.



                                      25
<PAGE>

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

                                    WMT III SERIES G/J TRADING VEHICLE LLC

                                    By:  WORLD MONITOR TRUST III - SERIES G
                                    Its: Member

                                      By:  PREFERRED INVESTMENT SOLUTIONS CORP.,
                                           as sole Managing Owner

                                      By:  _____________________________________
                                           Name:  Esther E. Goodman
                                           Title: Chief Operating Officer and
                                                  Senior Executive Vice
                                                  President

                                    By:   WORLD MONITOR TRUST III - SERIES J
                                    Its:  Member

                                      By:  PREFERRED INVESTMENT SOLUTIONS CORP.,
                                           as sole Managing Owner

                                      By:  _____________________________________
                                           Name:  Esther E. Goodman
                                           Title: Chief Operating Officer and
                                                  Senior Executive Vice
                                                  President

                                    KENMAR SECURITIES, INC.

                                    By:  _____________________________________
                                         Name:  Esther E. Goodman
                                         Title: Chief Operating Officer and
                                                Senior Executive Vice President


                                    PREFERRED INVESTMENT SOLUTIONS CORP.

                                    By:  _____________________________________
                                         Name:  Esther E. Goodman
                                         Title: Chief Operating Officer and
                                                Senior Executive Vice President




                                      26
<PAGE>

                                    WORLD MONITOR TRUST III - SERIES G

                                    By:  PREFERRED INVESTMENT SOLUTIONS CORP.,
                                         as sole Managing Owner

                                    By:  _____________________________________
                                         Name:  Esther E. Goodman
                                         Title: Chief Operating Officer and
                                                Senior Executive Vice President


                                    WORLD MONITOR TRUST III - SERIES J

                                    By:  PREFERRED INVESTMENT SOLUTIONS CORP.,
                                         as sole Managing Owner

                                    By:  _____________________________________
                                         Name:  Esther E. Goodman
                                         Title: Chief Operating Officer and
                                                Senior Executive Vice President


                                    GRAHAM CAPITAL MANAGEMENT, L.P.

                                    By:  _____________________________________
                                         Name:  Paul Sedlack
                                         Title: Chief Executive Officer



                                      27
<PAGE>


                                   EXHIBIT D

                      [ATTACH LATEST DISCLOSURE DOCUMENT]







                                      D-1