Document:

Exhibit 10.3

                         FUTURES PORTFOLIO FUND, L.P.

                              ADVISORY AGREEMENT

     This ADVISORY AGREEMENT is entered into as of June 1, 1998 by and among
Steben Asset Management, Inc., a Maryland corporation (the "General Partner"),
Futures Portfolio Fund, LP, a Maryland limited partnership (the
"Partnership"), and Sunrise Capital Partners, LLC, a California corporation
(the "Advisor"), whose main business address is 990 Highland Drive, Ste. 303,
Solana Beach, CA 92075-2472.

                                    RECITAL
                                    -------

     The Partnership wishes to retain the Advisor to manage pursuant to it's
expanded diversified program, a commodity trading account of the Partnership
(the "Account") that the Partnership will establish for that purpose; and the
General Partner hereby acknowledges receipt of the Advisor's Commodity Trading
Advisor Disclosure Document dated 02/28/98, the "Disclosure Document"), as
filed with the Commodity Futures Trading Commission ("CFTC") and the National
Futures Association ("NFA").

     NOW THEREFORE, the parties agree as follows:

1.   Advisor's Duties
     ----------------

     (a) The Advisor will trade "commodities" (as defined in ss.1(g) below)
for the Account, pursuant to the terms and conditions of this Agreement.
However, nothing in this Agreement or in the Advisor's activities for the
Partnership shall cause the Advisor to be a partner of, joint venturer with or
have a similar relationship to the General Partner, any other trader for the
Partnership.

     (b) The Advisor will use its best efforts to generate profits for the
Account, but makes no assurance that the Account will be profitable or not
incur losses.

     (c) In managing the Account pursuant to this Agreement and all other
accounts which the Advisor manages from time to time, the Advisor will manage
the Account and all such other accounts in a good faith effort to achieve an
equitable treatment of all accounts under management.

     (d) if position limits restrict the number of positions the Advisor may
establish for the Account, it will use its best efforts to allocate
transaction orders equitably between the Account and the other accounts it
manages.

     (e) The Advisor will place orders for the Account through ING Futures and
Options, Inc. or such futures commission merchants as is mutually agreed upon
by the Advisor and the General Partner, (the "FCM"). The Advisor may select
its own executing and/or floor brokers for execution of trades and give-up to
the FCM. The Advisor is not responsible for the brokerage commission rates
charged to the Partnership by the FCMs which execute commodity transactions
for the Account. All purchases and sales of commodities for the Account shall
be for the account and at the risk of the Partnership. All commissions and
expenses arising from the trading of, or other transactions in the course of
the administration of, the Account shall be charged to the Partnership.

     (f) The Advisor will promptly advise the General Partner of any
occurrence that renders the Disclosure Document materially inaccurate or
materially incomplete, whether as of the date of the Disclosure Document or a
later date. The Advisor will promptly furnish the General Partner with a copy
of any updated or revised version of the Disclosure Document.

     (g) As used in this Agreement, the terms "commodities" and "commodity
transactions" shall mean and include, without limitation, commodities,
commodity futures contracts, commodity options, forward contracts, currencies,
and other commodity interests.

     (h) The Advisor shall give the Partnership immediate written notice of
any proposed material change in the Advisor's trading systems, methods,
models, strategies, or formulae or the manner in which trading decisions are
to be made or implemented and shall not make any such proposed material change
without having given the Partnership at least 20 business days prior written
notice of such change. The addition and/or deletion of commodity interests
from the Partnership's portfolio managed by the Advisor ordinarily shall not
be deemed a change in the Advisor's trading systems, methods, models,
strategies, or formulae and prior written notice to the Partnership shall not
be required therefore.

<PAGE>

2.   Compensation
     ------------

     (a) The Partnership will pay the Advisor: (i) after the end of each month
a management fee of .083% of the Account's Net Assets (as defined in ss.2(b)
below) at the end of the month, (1% annually); and (ii) after the end of each
quarter an incentive fee of 25% of any "Trading Profits" (as defined in
ss.2(c) below) generated by the Advisor in the Account during the quarter.
Payment shall be made within 30 days after the month-end for management fees
and quarter-end for incentive fees after an invoice has been provided to the
Partnership by the Advisor.

     (b) "Net Assets" are the amount of Partnership funds actually deposited
in the Account maintained with the FCM plus any Notional Funds which may be
allocated to the Advisor increased or decreased by any commodity trading gains
or losses (realized and unrealized) in the Account during the month and any
interest income earned in the Account during the month and decreased by any
accrued but unpaid management or incentive fees from a previous month.

     (c) "Trading Profits" are the sum of (i) the net of all realized profits
and losses on Account commodity positions liquidated during the quarter, plus
(ii) the net of all unrealized profits and losses net of accrued brokerage
commissions on Account commodity positions open as of the quarter-end; minus:
(iii) the net of all unrealized profits and losses on Account commodity
positions open at the end of the previous quarter-end, and (iv) any cumulative
net realized losses (which shall not include incentive fee expenses) from the
Advisor's trading of the Account carried forward from all previous quarters
since the last quarter for which an incentive fee was payable to the Advisor,
and (v) any management fees paid or accrued to the Advisor. Trading Profits
will be calculated solely on the basis of assets allocated to the Advisor, and
incentive fees will not be paid on interest income earned in the account.

     (d) With regard to the carry-forward loss referred to in ss.2(c)(iv)
above:

         (i) If the Partnership withdraws funds from the Account during a
period (whether by reason of redemption's, distributions, reallocations of
assets, or the payment of expenses) when there is such a carry-forward loss,
the loss shall be reduced, at the time of the withdrawal, by the percentage
obtained by dividing the amount of the withdrawal by the Account's Net Assets
immediately before the withdrawal.

3.   Funding of the Account
     ----------------------

     (a) The Partnership may reallocate its assets between the various
advisors managing its accounts and withdraw capital from the Account at any
time. The Partnership shall promptly notify the Advisor, by telephone or
telex, of any such withdrawals and shall to the extent feasible give the
Advisor advance written notice of such withdrawal. The Partnership may add
capital to the Account at any time with the prior approval of the Advisor and
shall promptly notify the Advisor of any such intended action.

     (b) The Partnership, and not the Advisor, shall manage the non-commodity
transactions of the Account, such as the purchase of U.S. Treasury bills.

4.   Discretionary Trading and Funds Transfer Authorization
     ------------------------------------------------------

     The Partnership hereby authorizes the Advisor to place orders, in the
Advisor's discretion, with the FCM for the execution of commodity transactions
for the Account. The Partnership constitutes and appoints the Advisor as its
attorney-in-fact for such purpose, with full authority to act on the
Partnership's behalf (except that the Advisor shall not have any authority to
withdraw any funds, securities or other property from the Account). Upon the
Advisor's request, the General Partner shall deliver to the Advisor, and renew
when necessary, a Commodity Trading Authorization form to the above effect.

5.   Errors; Account Statements
     --------------------------

     The Advisor shall promptly notify: (a) the Partnership of any error
committed by the Advisor in transmitting Account orders, and (b) the
Partnership and the FCM of any Account transaction that the Advisor believes
was erroneously executed by the FCM. The General Partner shall instruct the
FCM promptly to furnish the Advisor with copies of all Account confirmations,
purchase and sale statements, and monthly account statements.

                                      -2-
<PAGE>

6.   Advisor's Representations
     -------------------------

     The Advisor represents that:

     (a) This Agreement has been duly and validly authorized, executed and
delivered on behalf of the Advisor, and when duly executed and delivered by
the Partnership and the General Partner, will be a valid and binding contract
of the Advisor enforceable in accordance with its terms.

     (b) The Disclosure Document is, in all material respects, accurate and
complete as of the date of the Disclosure Document and as of the date of this
Agreement, and as of the latter date there has been no material adverse change
in the Advisor's performance since the date of the Disclosure Document.

7.   General Partner's and Partnership's Representations and Covenants
     -----------------------------------------------------------------

     The General Partner and the Partnership represent that:

     (a) This Agreement has been duly and validly authorized, executed and
delivered and is a valid and binding contract of the General Partner and the
Partnership enforceable in accordance with its terms.

     (b) The Partnership is duly formed and validly existing as a Maryland
limited partnership, with full partnership power to carry out its obligations
under this Agreement and its Agreement of Limited Partnership.

     (c) The private offering memorandum pursuant to which the Partnership's
limited partnership interests are being offered, as amended and supplemented
from time to time, (collectively, the "Memorandum") will not contain any
untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances in which they are made, not misleading, or omit to
state any material information required to be disclosed therein under the
Commodity Exchange Act, as amended (the "CEA"), the Securities Act of 1933, as
amended (the "1933 Act"), and the rules promulgated thereunder; 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 in writing to the General Partner by or on behalf of the
Advisor, including, without limitation, all references to the Advisor and its
affiliates (as defined in ss.8(f) below), controlling persons, shareholders,
partners, directors, officers and employees, as well as to such Advisor's
trading approach and performance history. The General Partner, and not the
trading advisor, has determined the extent of the information to be included
in the Memorandum, including past performance information of the Trading
Advisor and its affiliates, and takes responsibility for its adequacy.

     (d) The General Partner is duly formed and validly existing as a Maryland
corporation with full power and authority to carry out its obligations under
this Agreement and is registered with the CFTC as a commodity pool operator
and is a member of the NFA.

     (e) The Partnership will make to the Partnership's limited partners (the
"Limited Partners") all disclosures necessary with respect to the retention of
the Advisor to manage the Account to comply with the CEA, the CFTC's
regulations thereunder, the rules and regulations of the NFA and the
applicable state and federal securities laws and regulations.

     (f) There are no actions, suits, proceedings or investigations pending
or, to the knowledge of the Partnership, threatened against the Partnership,
at law or in equity, or before or by any federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrument or
any self-regulatory organization or any commodity exchange.

     (g) The Advisor, either alone or in conjunction with the General Partner
or its affiliates, is not an organizer or promoter of the Partnership.

     (h) All necessary and appropriate actions have been taken by the
Partnership and the General Partner to terminate any other trading managers
that previously managed the portions of the Partnership which are being
committed to the management of the Advisor pursuant to this Agreement.

     (i) The Partnership is not required to be registered as an investment
company under the Investment Company Act of 1940, as amended.

                                      -3-
<PAGE>

     (j) The offer and sale of the limited partnership interests will be
conducted in accordance with all applicable federal and state laws and
regulations.

     (k) The above 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, the General Partner
will promptly notify the Advisor.

8.   Indemnification
     ---------------

     (a) By the Advisor. The Advisor agrees to indemnify and hold harmless
         --------------
each of the Partnership and the General Partner and each affiliate thereof
against any loss, claim, damage, charge or liability to which they (or such
affiliate) may become subject under the 1933 Act, the CEA or otherwise,
insofar as such loss, claim, damage, charge or liability (or actions in
respect thereof) arises out of or is based upon (i) any misrepresentation or
breach of any warranty, covenant or agreement of the Advisor contained in this
Agreement or (ii) any untrue statement of any material fact contained in the
Memorandum, or arises out of or is based upon the omission to state in the
Memorandum, a material fact required to be stated therein or necessary to make
the statements therein not misleading (in each case under this clause (ii) to
the extent, but only to the extent, that such untrue statement or omission was
made in reliance upon and in conformity with information furnished and
approved by the Advisor for inclusion in the Memorandum), including
liabilities under the 1933 Act and the CEA.

     (b) By the Partnership and the General Partner. The Partnership and the
         ------------------------------------------
General Partner jointly and severally agree to indemnify and hold harmless the
Advisor and each of its affiliates and their controlling persons against any
loss, claim, damage, charge, or liability to which such persons may become
subject, insofar as such loss, claim, damage, charge or liability (or actions
in respect thereof) arises out of or is based upon: (i) any misrepresentation
or breach of any warranty, covenant or agreement of the Partnership or the
General Partner contained in this Agreement; (ii) any untrue statement of any
material fact contained in the Memorandum, or arises out of or is based upon
the omission to state in the Memorandum, a material fact required to be stated
therein or necessary to make the statements therein not misleading (excluding
in each case under this clause (ii) any untrue statement or omission made in
reliance upon and in conformity with information furnished and approved by the
Advisor for inclusion in the Memorandum), including liabilities under the 1933
Act and the CEA; (iii) the management of the Account by the Advisor or the
fact that the Advisor acted as a trading manager of the Partnership if the
Advisor acted in good faith and in a manner which it reasonably believed to be
in or not opposed to the best interests of the Partnership and provided that
the Advisor's conduct does not constitute gross negligence or willful
misconduct; (iv) any acts or omissions of the Partnership, the General
Partner or any trading manager to the Partnership before the Advisor
commenced trading for the Partnership; or (v) any act or omission with respect
to the Partnership of any other trading manager of the Partnership.

     (c) Limitations. None of the indemnifications contained in this Section
         -----------
shall be applicable to default judgments, confessions of judgment or
settlements entered into by any indemnified party claiming indemnification
without the prior consent of the indemnifying party.

     (d) Notice and Defense of Claims. Promptly after receipt by an
         ----------------------------
indemnified party under this section of notice of the commencement of any
action, that party will, if a claim in respect thereof is to be made against
an indemnifying party under this Section, 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
under this Section. In case any such action is sought against any indemnified
party and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent
that it may wish, to assume the defense thereof, with counsel satisfactory to
such indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
section for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation, but shall continue to be liable to the indemnified
party in all other respect as heretofore set forth in this Section.

     (e) Retention of Separate Counsel. If the indemnified party reasonably
         -----------------------------
determines that its interest is or may be adverse to the indemnifying party's
or that there may be a legal defense available to the indemnified party that
is different from, in addition to or inconsistent with a defense available to
the indemnifying party, the indemnified party may retain its own counsel and
shall be indemnified by the indemnifying party for any expenses reasonably
incurred in investigating or defending the action.

                                      -4-
<PAGE>

     (f) Advances. 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 to reimburse the indemnifying party in the event
indemnification is not permitted under this section upon final disposition or
settlement.

     (g) Survival. The provisions of this Section shall survive the
         --------
termination or expiration of this Agreement.

     (h) "Affiliate" means general partner, officer, director, employee, or
shareholder, and any general partner, officer, director, employee or
shareholder of such shareholder.

9.   Term
     ----

     (a) Term and Renewal. This Agreement shall continue in effect for a
         ----------------
period of one year following the end of the month in which the Partnership
shall begin to receive trading advice from the Trading Advisor hereunder.
Thereafter, this Agreement shall be renewed automatically for additional
one-year terms unless either the Partnership or the Trading Advisor, upon
written notice given prior to the original termination date or any extended
termination date, shall notify the other party of his or its intention not to
renew.

     (b) Termination. Notwithstanding Section 6(a) hereof, this Agreement
         -----------
shall terminate:

         (i) immediately if the partnership shall terminate and be dissolved
in accordance with its Agreement of Limited Partnership or otherwise; or

         (ii) immediately after receipt by the Trading Advisor from the
General Partner or by the General Partner from the Trading Advisor of written
notice of termination; or

         (iii) immediately if the Trading Advisor can no longer effectively
implement its or his trading strategy on behalf of the Partnership; or

         (iv) immediately, at the discretion of the General Partner, if any of
the following events shall occur, (1) the Trading Advisor shall become
bankrupt or insolvent; (2) the Trading Advisor shall be unable to use all or
any portion of his or its trading systems, methods, models, strategies, or
formulae as in effect on the date of this Agreement, or as refined or modified
in the future in accordance herewith, for the benefit of the Partnership for
any reason whatsoever; (3) the Trading Advisor's registration with the CFTC
as a commodity trading advisor or the Trading Advisor's membership in the NFA
in such capacity shall expire or shall be revoked, suspended, terminated, not
renewed, or limited, conditioned, restricted, or qualified in any material
respect; (4) the Trading Advisor shall change or violate any of the Trading
Policies or any administrative policy of the Partnership except with the prior
written consent of the Partnership; (5) the Partnership, upon receipt of not
less than 20 business days' prior written notice from the Trading Advisor
pursuant to Section 1(h) hereof, shall send written notice to the Trading
Advisor stating that the material change proposed by the Trading advisor in
his or its trading systems, methods, models, strategies, or formulae or the
manner in which trading decisions are to be made or implemented is
unacceptable to the General Partner; (6) the Trading Advisor shall fail to
perform any of its obligations under this Agreement.

         (v) Immediately, at the discretion of the Trading Advisor, if any of
the following events shall occur; (1) the General Partner shall become
bankrupt or insolvent; (2) the General Partner's registration with the CFTC as
a commodity pool operator or the General Partner's membership in the NFA in
such capacity shall expire or shall be revoked, suspended, terminated, not
renewed, or limited, conditioned, restricted, or qualified in any material
respect; (3) the General Partner shall fail to perform any of its obligations
under this Agreement. The General Partner confirms that as of the date hereof,
no Trading Policies or administrative policies relating to the Partnership
have been provided to the Trading Advisor.

10.  Arbitration
     -----------

     The parties agree that all controversies which may arise in connection
with any transaction contemplated by this Agreement or the construction,
performance or breach of this Agreement or any other agreement between the
parties hereto, whether entered into prior, on or subsequent to the effective
date of this Agreement, shall be determined by arbitration, and in accordance
with the rules then obtaining of the NFA, or if no such rules are then in
effect, then the rules

                                      -5-
<PAGE>

then obtaining of the Chicago Board of Trade; provided, however, that (a) the
arbitrator(s) shall be experienced in the matters to be under dispute, (b) the
authority of the arbitrator(s) shall be limited to construing and enforcing
the terms and conditions of this Agreement as expressly set forth herein, and
(c) the arbitrator(s) shall state the reasons for the award in a written
opinion. The award of the arbitrator(s), or a majority of them, shall be
final, and judgment upon the award may be confirmed and entered in any court,
state or federal, having jurisdiction.

11.  Miscellaneous
     -------------

     (a) Complete Agreement. This Agreement constitutes the entire agreement
         ------------------
between the parties with respect to the matters referred to herein, and no
other agreement, verbal or otherwise, shall be binding as between the parties
unless it is in writing and signed by the party against whom enforcement is
sought.

     (b) Assignment. This Agreement may not be assigned by either party
         ----------
without the prior written consent of the other party. This Agreement shall
inure to the benefit of the parties hereto and their respective successors and
assigns.

     (c) Amendment; Waiver. This Agreement may not be amended except by the
         -----------------
written consent of the parties. No waiver of any provision of this Agreement
may be implied from any course of dealing between the parties or from any
failure by a party to assert its rights under this Agreement on any occasion
or series of occasions.

     (d) Severability. If any provision of this Agreement, or the application
         ------------
of any provision to any person or circumstance, shall be held to be
inconsistent with any law, ruling, rule or regulation, the remainder of this
Agreement, or the application of the provision to persons or circumstances
other than those as to which it is held inconsistent, shall not be affected
thereby.

     (e) Notices. All notices required or desired to be delivered under this
         -------
Agreement shall be in writing and shall be effective when delivered personally
on the day delivered, or, when given by registered or certified mail, postage
prepaid, return receipt requested, on the day of receipt, addressed as follows
(or to such other address as the party entitled to notice shall designate):

  If to the Partnership                Steben Asset Management, Inc.
  and the General Partner:             11140 Rockville Pike, 4th floor
                                       Rockville, MD 20852
                                       Attention: Kenneth E. Steben, President

  If to the Advisor:                   At the address on page 1 above.

     (f) 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.

     (g) Governing Law. This Agreement shall be governed by and construed in
         -------------
accordance with Illinois law (excluding the law thereof which requires the
application of, or reference to, the law of any other jurisdiction).

     (h) Property Right of the Advisor. The Partnership, the General Partner
         -----------------------------
and their employees or agents acknowledge that commodity interest trading
advice provided and trading strategies used by the Advisor are confidential
property rights belonging to it; the Partnership further agrees, unless
authorized by the Advisor, that such advice will not be disseminated in whole
or in part, directly or indirectly, to any of the Limited Partners, brokers,
brokers' customers, employees, agents, officers, directors or any others,
except as necessary to conduct the business of the Partnership or except as
required by any applicable law or regulation. Nothing contained in this
Agreement shall require the Advisor to disclose the confidential or
proprietary information, including details of its trading systems or
strategies or client identities.

     (i) Limit on Liability. Except as otherwise set forth herein, the Advisor
         ------------------
shall not be liable to the Partnership, its partners or any of their
respective successors or permitted assigns except by reason of its acts or
omissions taken or omitted due to bad faith, willful misconduct or gross
negligence or for not having acted in good faith in the reasonable belief that
its actions were taken in, or not opposed to, the best interests of the
Partnership. The foregoing sentence is intended to limit the liability of the
Advisor, and nothing therein shall expressly or impliedly create any
liability, duty or responsibility on the part of any person. Notwithstanding
any other provision herein to the contrary, neither Gary B. Davis nor John V.
Forrest shall have any liability to Futures Portfolio Fund, LP, Steben Asset

                                     -6-
<PAGE>

Management, Inc., or any other person, or their controlling persons,
directors, officers and employees under this Agreement except for fraud or
willful misconduct by Gary B. Davis or John V. Forrest, as applicable.

     (j) Agreement Not Exclusive. The Advisor's present business is advising
         -----------------------
with respect to the purchase and sale of commodity interests. The services
provided by the Advisor hereunder are not to be deemed exclusive. The
Partnership and General Partner acknowledge that, subject to the terms of this
Agreement, the Advisor may render advisory, consulting and management services
to other clients for which it may charge fees similar or different from those
charged to the Partnership. The Advisor shall be free to advise others and
manage other accounts during the term of this Agreement and to use the same or
different information, computer programs and trading strategies which it
obtains, produces or utilizes in the performance of services for the
Partnership.

     (k) Right to Approve Offering Materials. The Partnership and the General
         -----------------------------------
Partner each agree that it shall not place any advertisement in any media or
distribute or disseminate any offering materials including, without
limitation, letters, brochures and the Memorandum, which makes any reference
to the Advisor, this Agreement or the transactions or arrangements
contemplated herein without the prior written approval of the Advisor.

     (l) Independent Contractor. This Agreement is not a contract of
         ----------------------
employment, and nothing contained herein shall be construed to create an
exclusive relationship or the relationship of employer or agent and principal
or a joint venture or partnership between the parties hereto, except as
otherwise expressly set forth herein. Each of the Partnership, the General
Partner and the Advisor is an independent contractor and shall be free to
exercise its judgment and discretion with regard to the conduct of its
business except as otherwise limited herein.

     (m) Counterparts. This Agreement may be executed in one or more
         ------------
counterparts, all of which together shall constitute one original Agreement.

     (n) Headings. Headings to sections and subsections in this Agreement are
         --------
for the convenience of the parties and are not a part of or affect the meaning
of this Agreement.

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

<TABLE>
<CAPTION>

The Partnership:                                          The Advisor:

<S>                                                      <C>
Futures Portfolio Fund, L.P.                              Sunrise Capital Partners, LLC
                                                          By:  Sunrise Capital Management, Inc. - Manager

By:  /s/ Kenneth E. Steben                                By:  /s/ Martin P. Klitzner
     ----------------------------------                        ---------------------------------------------
         Kenneth E. Steben, President
         Steben Asset Management, Inc.                         Name:    Martin P. Klitzner
                                                                        ------------------------------------

                                                               Title:   President of the Manager
                                                                        ------------------------------------
Steben Asset Management, Inc.

By:  /s/ Kenneth E. Steben
     ----------------------------------
         Kenneth E. Steben, President
         Steben Asset Management, Inc.

</TABLE>

                                     -7-Exhibit 10.4

                              ADVISORY AGREEMENT
                              ------------------

         This Advisory Agreement (the "Agreement") is made as of the 31st day
of December, 1997, between Futures Portfolio Fund L.P., a Maryland limited
partnership (the "Partnership") and Willowbridge Associates Inc., a Delaware
corporation (the "Advisor").

                                  WITNESSETH:

         WHEREAS, the Partnership desires to engage in the speculative trading
of futures, options on futures, forwards, commodities and other commodity
interests (collectively, "Commodity Interests"); and

         WHEREAS, the Advisor is in the business of making trading decisions
on behalf of investors in the purchase and sale of Commodity Interests; and

         WHEREAS, the Partnership has selected the Advisor as a trading
advisor for the Partnership and the Advisor is willing to act in such capacity
subject to the terms and provisions set forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                          1. Duties of the Advisor.
                             ----------------------

     The Advisor shall determine the investment and reinvestment of the
portion of the Partnership's assets allocated to the Advisor from time to time
by the Partnership (together with appreciation and depreciation thereon, the
"Allocated Assets") in Commodity Interests for the period and on the terms set
forth in this Agreement. The Allocated Assets shall include notional funds.

     The Advisor shall have sole authority and responsibility for trading the
Allocated Assets. The Advisor agrees to trade the Allocated Assets pursuant to
its Select Investment Program utilizing the Argo Trading System described in
the Advisor's commodity trading advisor disclosure document dated September
30, 1997 (the "Disclosure Document") with such changes and additions to the
Select Investment Program utilizing the Argo Trading System as the Advisor
deems appropriate. The Commodity Interest transactions by the Advisor on
behalf of the Partnership shall be for the account and risk of the
Partnership. The parties acknowledge that the Advisor in no respect makes any
guarantee of profits or of protection against loss.

          2. Allocation of the Partnership's Assets to the Advisor.
             -----------------------------------------------------

     The initial allocation to the Advisor shall be U.S.$1,000,000.00, of
which 100% or U.S.$1,000,000.00 shall be actual funds deposited with the
Partnership's commodity broker or dealers. Trading will be determined by the
total account size, including notional funds, and profits or losses will be
calculated for purposes of this Agreement based on such total account size.
Additions and withdrawals of actual or notional funds will increase or
decrease, respectively, the total account size. Prior to the commencement of
trading for the Partnership by the Advisor, the Partnership will provide the
Advisor with, and will renew when necessary, a commodity trading authorization
substantially in the form of Exhibit A

<PAGE>

appointing the Advisor as the Partnership's attorney-in-fact with respect to
the Partnership's Commodity Interest trading. The Partnership will give the
Advisor three business days' prior notice of any intended addition or
withdrawal of assets to or from the Advisor. Any addition to the Partnership's
Allocated Assets shall be made as of the beginning of a month, and any
withdrawal from the Partnership's Allocated Assets shall be made as of the end
of a month.

                      3. Advisory and Performance Fees.
                         -----------------------------

         For services to be rendered to the Partnership by the Advisor, the
Partnership agrees to pay in immediately available U. S. Dollars to the
Advisor the following:

     Advisory Fee. The Advisor shall be paid an advisory fee of 0.0833 percent
per month (a 1% annual rate) of the Allocated Assets as of the close of
business on the last day of each calendar month, without reduction of the
Allocated Assets for any distributions, withdrawals, or performance fees
accrued or payable as of such date, but after reduction for all brokerage and
other transaction costs and directly related expenses (such as delivery
charges) paid or payable by the Partnership in connection with the Advisor's
Commodity Interest trading for the Partnership. This advisory fee is payable
whether or not the Advisor's trading for the Partnership is profitable.

         If this Agreement is terminated on a date other than a month-end, the
advisory fee described above shall be determined as if such date were the end
of a month, but such fees shall be prorated based on the ratio by which the
number of trading days in the month through the date of termination bears to
the total number of trading days in the month.

     Performance Fee. The Advisor shall receive a quarterly performance fee of
25% of the Trading Profits experienced by the Allocated Assets calculated for
each quarter as set forth below, provided, however, that no performance fee
shall be payable in respect of the first $_________________ of Trading Profits
earned for the Allocated Assets.

         The term "Trading Profits" shall mean (A) Commodity Interest trading
profits {realized and unrealized) net of losses (realized and unrealized)
earned on the Allocated Assets, (B) decreased by all brokerage and other
transaction costs and directly related expenses (such as delivery charges)
paid or payable by the Partnership in connection with the Advisor's Commodity
Interest trading for the Partnership and the advisory fees paid or payable to
the Advisor for the quarter for which the calculation is being made, but
before reduction for accrued performance fees and management fees, with all
such Commodity Interest trading profits, losses and items of decrease
determined from the end of the last quarter at which a performance fee shall
have been earned on the Allocated Assets (or if no performance fee shall have
been earned previously on the Allocated Assets, from the day that the Advisor
begins trading Commodity Interests on behalf of the Partnership) to the end of
the quarter for which such performance fee calculation is being made. Trading
Profits shall not include interest income.

         At any time upon a withdrawal from Allocated Assets other than at the
end of a quarter, the Advisor will receive any accrued performance fee
proportional to the amount of assets so withdrawn. Trading Profits will be
correspondingly reduced for purposes of determining the performance fee due at
the end of such quarter. For purposes of determining Trading Profits, if there
is a cumulative loss when a withdrawal is made from the Allocated Assets, such
loss shall be reduced by the proportionate amount of the loss attributable to
the Allocated Assets being withdrawn.

         Performance fees, once paid, are not subject to return, irrespective
of subsequent losses. No subsequent payment based on Trading Profits shall be
made to the Advisor, however, until

                                     -2-
<PAGE>

the Allocated Assets have again experienced Trading Profits. If this Agreement
is terminated on a date other than a quarter-end, the performance fee
described above will be determined as if such date were the end of a quarter.

     Payment of Fees. Advisory and performance fees shall be paid within 15
business days after the Advisor sends an invoice for such fees to the
Partnership in respect of the period for which they are payable.

     Brokerage. The Advisor shall be free to select floor brokers to be used
for the execution of Commodity Interest transactions hereunder, and may enter
into "give-up" agreements with such floor brokers on behalf of the
Partnership, but otherwise the Advisor has no authority or responsibility for
selecting the Partnership's commodity brokers nor for the negotiation of
brokerage commission rates, and is not responsible for the execution or
clearance of the Partnership's trades once complete orders have been
transmitted to the Partnership's commodity broker for those trades. The
Partnership shall deposit and maintain its assets in one or more accounts with
ING (U.S) Securities, Futures & Options, Inc. ("ING"), which will act as the
Partnership's principal commodity broker. The Advisor may purchase spot and
forward contracts through such banks, brokers, or dealers as it deems
appropriate. The Partnership shall provide adequate dealing lines of credit
for the Advisor to place orders for spot and forward contracts on behalf of
the Partnership. The Partnership will arrange for the Advisor to receive
confirmations and reports of all of the Advisor's Commodity Interest trading
on behalf of the Partnership.

              4. Representations and Warranties of the Advisor.
                 ---------------------------------------------

         The Advisor represents and warrants to the Partnership that:

     The Advisor is a corporation duly organized, validly existing, and in
good standing under the laws of Delaware, and has full corporate power and
authority to perform its obligations under this Agreement, and is in good
standing as a corporation qualified to do business in every jurisdiction in
which the failure to so qualify would have a materially adverse effect on the
Advisor's ability to comply with and perform its obligations under this
Agreement.

     The references to the Advisor and its principals, and its and their
trading performance, trading systems, methods, models, strategies, and
formulas made in the Advisor's Disclosure Document are accurate and complete
in all material respects.

     This Agreement has been duly authorized, executed and delivered on behalf
of the Advisor and, assuming due authorization, execution, and delivery by the
Partnership, constitutes a valid and binding agreement of the Advisor
enforceable in accordance with its terms.

     Each of the Advisor and its principals has all governmental, regulatory
and commodity exchange licenses and approvals and has effected all filings and
registrations with governmental and regulatory agencies in the United States
required to conduct its business and to perform its obligations under this
Agreement (including, without limitation, registration of the Advisor as a
commodity trading advisor under the United States Commodity Exchange Act and
membership of the Advisor as a commodity trading advisor in the National
Futures Association (the "NFA")).

     The execution and delivery of this Agreement, the incurrence of the
obligations herein, and the consummation of the transactions contemplated
herein will not constitute a breach of, or default under, the Certificate of
Incorporation or By-laws or other charter documents of the Advisor or any
instrument by which the Advisor or its principals are bound or any order, rule
or regulation applicable to the Advisor

                                     -3-
<PAGE>

or its principals of any court or any governmental body or administrative
agency having jurisdiction over the Advisor or its principals.

     There is not pending nor, to the best of such Advisor's and its
principals' knowledge, threatened any action, suit, proceeding, or
investigation before or by any court, governmental, regulatory,
self-regulatory, or exchange body to which the Advisor or its principals are a
party, or to which any assets of such persons are subject, which might
reasonably be expected to result in any material adverse change in the
condition, financial or otherwise, or business of the Advisor or its
principals.

            5. Representations and Warranties of the Partnership.
               -------------------------------------------------

         The Partnership represents and warrants to the Advisor that:

     The Partnership is a limited partnership duly organized pursuant to, and
validly existing and in good standing under the laws of the state of its
organization and is qualified to do business in every jurisdiction in which
the failure to so qualify would have a material adverse effect on its ability
to comply with and perform its obligations under this Agreement. The
Partnership has full power and authority to engage in the trading of Commodity
Interests and to perform its obligations under this Agreement.

     The Partnership has one general partner, which is a corporation duly
organized, validly existing and in good standing under the laws of the state
of its organization and is qualified to do business in every jurisdiction in
which the failure to so qualify would have a material adverse effect on its
ability to comply with and perform its obligations under this Agreement. The
Partnership's general partner has full power and authority to perform its
obligations as general partner of the Partnership.

     This Agreement has been duly authorized, executed, and delivered by the
Partnership and, assuming due authorization, execution and delivery by the
Advisor, constitutes a valid and binding obligation of the Partnership,
enforceable against it in accordance with its terms.

     The execution and delivery of this Agreement, the incurrence of the
obligations set forth herein, and the consummation of the transactions
contemplated herein do not and will not constitute a breach of or default
under the limited partnership agreement or certificate of limited partnership
of the Partnership, or any instrument by which the Partnership is bound or any
order, rule, or regulation applicable to the Partnership of any court or
governmental, regulatory, or administrative authority having jurisdiction over
the Partnership.

     There is not pending nor, to the best of the Partnership's knowledge,
threatened any action, suit, proceeding, or investigation before or by any
court, or governmental, regulatory, self-regulatory or exchange body to which
the Partnership is a party or to which any assets of the Partnership are
subject which would materially affect the ability of the Partnership to comply
with and perform its obligations under this Agreement.

     Each of the Partnership, its general partner and their respective
principals has obtained all governmental, regulatory and exchange approvals or
licenses necessary to conduct their respective businesses and to act as
described and contemplated in this Agreement, including without limitation any
required registration as a commodity pool operator under the Commodity
Exchange Act and membership in the NFA.

                                     -4-
<PAGE>

     The offer and sale of limited partnership interests have been, and will
continue to be, in full compliance with all applicable securities and
commodities laws, rules and regulations. No description of the Advisor or its
principals may be used without the prior written consent of the Advisor.

     The Partnership is aware of the highly speculative nature of, and risks
of loss inherent in, trading of Commodity Interests and is financially capable
of engaging in such trading.

     The Partnership has significant additional assets beyond the Allocated
Assets and any funds that may in the future become part of the Allocated
Assets. All of the Allocated Assets represent risk capital to the Partnership.

                             6. Indemnification.
                                ---------------

         The Advisor shall exercise its best judgment in rendering its
services to the Partnership and the Partnership agrees as an inducement to the
Advisor's undertaking the same that the Advisor and its officers, directors,
shareholders and employees shall not be liable to the Partnership or the
Partnership's permitted assigns except by reason of acts or omissions due to
bad faith, willful misconduct or gross negligence. The Partnership shall
indemnify the Advisor, its officers, directors, shareholders and employees
against all losses, damages and liabilities (including attorneys' fees)
incurred in the performance of services under this Agreement, relating to this
Agreement in any way, or in connection with the Company but unrelated to this
Agreement, provided that such loss, damage or liability was not the result of
bad faith, willful misconduct or gross negligence on the part of the Advisor,
its officers, directors, shareholders or employees. The Advisor shall
indemnify the Partnership against all losses, damages and liabilities
(including attorneys' fees) resulting from a demand, claim, lawsuit, action or
proceeding relating to the Advisor's management of an account for the
Partnership if the conduct of the Advisor which was the subject of the demand,
claim lawsuit action or proceeding constituted gross negligence, willful
misconduct or bad faith on the part of the Advisor, its officers, directors,
shareholders or employees.

                               7. Termination.
                                  -----------

         Either party may terminate this Agreement on 10 days' written notice
to the other, provided, however, that the parties shall use best efforts to
ensure that the termination occurs as of a month-end. Notwithstanding the
foregoing, the Advisor may terminate this Agreement immediately upon written
notice if the Allocated Assets are less than $750,000.00. If this Agreement is
terminated, the Partnership shall not thereafter have any further obligation
to the Advisor under this Agreement and neither the Advisor, nor any of its
officers, directors, shareholders, controlling persons or employees shall
thereafter have any further obligation to the Partnership under this
Agreement; provided however, that the payment obligation pursuant to Section 3
and the indemnification obligation pursuant to Section 6 shall survive.

                      8. Receipt of Disclosure Document.
                         ------------------------------

         The Partnership acknowledges receipt of the Disclosure Document.

                          9. Status of the Advisor.
                             ---------------------

         The Advisor is and shall, for all purposes herein, be deemed to be an
independent contractor and shall not, except as expressly provided or
authorized, have authority to act for or represent

                                     -5-
<PAGE>

the Partnership. Likewise, the Partnership shall have no authority to act for
or represent the Advisor. The Advisor is not an organizer, sponsor or promoter
of the Partnership.

         The Advisor's present business is advising with respect to the
purchase and sale of Commodity Interests. The services provided by the Advisor
under this Agreement are not to be deemed exclusive. The Partnership
acknowledges that, subject to the terms of this Agreement, the Advisor and its
principals may render advisory, consulting and management services to others
for which they may charge fees different from those charged to the
Partnership. The Advisor and its principals shall be free to advise others and
manage other accounts during the term of this Agreement and to use the same or
different information, computer programs and trading strategies which they
obtain, produce or utilize in the performance of services for the Partnership.
In that connection, the Advisor represents and warrants that in rendering
consulting, advisory and management services to other Commodity Interest
trading accounts and entities, the Advisor will use its best efforts to
achieve an equitable treatment of all accounts traded pursuant to the trading
systems, methods, models, strategies and formulas used in discharging its
obligations to the Partnership. Notwithstanding the foregoing, the Partnership
recognizes that the results obtained by the Advisor from time to time for such
other accounts may be more favorable than the results obtained for the
Partnership's account.

                             10. Confidentiality.
                                 ---------------

         Nothing in this Agreement shall require the Advisor to disclose the
details of its trading systems, methods, models, strategies and formulas. The
Partnership acknowledges that the trading systems, methods, models, strategies
and formulas of the Advisor are the sole and exclusive property of the
Advisor; the Partnership further agrees that it will keep confidential and
will not disseminate information regarding such systems, methods, models,
strategies and formulas to any person.

                                 11. Notices.
                                     -------

         All notices required or permitted to be delivered pursuant to this
Agreement shall be in writing (including telegraphic communication) and
shall be delivered by courier service, postage prepaid mail, telex, telegram,
telefax or other similar means and shall be effective upon actual receipt by
the party to which such notice shall be directed, addressed as follows or to
such other address as a party by notice shall direct:

         if to the Partnership to:

                  Futures Portfolio Fund L.P.
                  c/o Steben Asset Management, Inc.
                  11140 Rockville Pike, 4th Floor
                  Rockville, MD 20852
                  Attention: Mr. Kenneth E. Steben
                  Telephone: 301-984-3700   Facsimile: 301-984-1413

         if to the Advisor to:

                  Willowbridge Associates Inc.
                  101 Morgan Lane
                  Suite 180
                  Plainsboro, New Jersey 08536

                                     -6-
<PAGE>

                  Attention: Theresa C. Morris
                  Telephone: 609-936-1100   Facsimile: 609-936-9088

                 12. Governing Law; Consent to Jurisdiction.
                     --------------------------------------

         This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without regard to principles of conflicts
of laws. For purposes of any action or proceeding involving any matter arising
out of, or relating to, this Agreement, the parties each hereby expressly
consent and submit to the jurisdiction of all federal and state courts located
in New York, New York and consent that any process or notice of motion or any
other application to any of said courts, or a judge thereof, may be served
within or without such court's jurisdiction by registered or certified mail,
or by personal service. The Partnership hereby waives any right they may have
to transfer or change the venue of any litigation brought against it by the
Advisor.

                                13. Amendment.
                                    ---------

         This Agreement shall not be amended except by a writing signed by all
parties hereto. No waiver of any provision of this Agreement shall be implied
from any course of dealing between or among the parties hereto or from any
failure by any party hereto to assert its rights hereunder on any occasion or
series of occasions.

                            14. Entire Agreement.
                                ----------------

         This Agreement sets forth the entire agreement of the parties
relating to the subject matter hereof.

                              15. Severability.
                                  ------------

         The invalidity or unenforceability of any provision of this Agreement
or any covenant contained herein shall not affect the validity or
enforceability of any other provision or covenant hereof or herein contained
and any such invalid provision or covenant shall be deemed to be severable.

                               16. Assignment.
                                   ----------

         This Agreement shall not be assigned without the prior written
consent of the other party.

                              17. Counterparts.
                                  ------------

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

                               18. Successors.
                                   ----------

         This Agreement shall be binding upon and inure to the benefit of the
parties hereto, their successors and permitted assigns, and no other person
shall have any right or obligation under this Agreement (except that certain
persons who are not parties are entitled to the indemnities as set forth in
Section 6).

                                19. Headings.
                                    --------

                                     -7-
<PAGE>

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

                                     -8-
<PAGE>

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

                        FUTURES PORTFOLIO FUND L.P.

                        By: Steben Asset Management, Inc., its General Partner

                        By: /s/ Kenneth E. Steben
                            -----------------------------
                        Kenneth E. Steben
                        President

                        WILLOWBRIDGE ASSOCIATES INC.

                        By: /s/ Theresa C. Morris
                            -----------------------------
                        Theresa C. Morris
                        Senior Vice President

                                     -9-

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