ADVISORY HEDGED OPPORTUNITY FUND
FORM OF PURCHASE AGREEMENT
Purchase Agreement dated [ ], 2003 between Advisory Hedged Opportunity
Fund, a statutory trust organized under the laws of the State of Delaware (the
"Fund"), and IDS Life Insurance Company ("IDS Life"), a corporation organized
under the laws of the State of Minnesota;
WHEREAS, the Fund is a closed-end management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act");
WHEREAS, the Fund proposes to issue and sell shares of interest in the
Fund ("Shares") to the public pursuant to a Registration Statement on Form N-2
filed with the Securities and Exchange Commission; and
WHEREAS, Section 14(a) of the 1940 Act requires each registered
investment company to have a net worth of at least $100,000 before making a
public offering of its Shares;
NOW, THEREFORE, the Fund and IDS Life agree as follows:
1. The Fund offers to sell to IDS Life, and IDS Life agrees to
purchase from the Fund, 10,000 Shares of the Fund at a price of
$10 per Share for an aggregate price of $100,000 on [ ], 2003.
2. IDS Life represents and warrants to the Fund that IDS Life is
acquiring the Shares for investment purposes only and not with a
view toward resale or further distribution.
3. IDS Life's right under this Purchase Agreement to purchase the
Shares is not assignable.
IN WITNESS WHEREOF, the Fund and IDS Life have caused their duly
authorized officers to execute this Purchase Agreement as of the date first
above written.
ADVISORY HEDGED OPPORTUNITY FUND IDS LIFE INSURANCE COMPANY
By: __________________________ By: __________________________
Name: Name:
Title: Title:
