Document:

EX-10.4

 Exhibit 10.4 

BIOCARDIA, INC. 

2015 EMPLOYEE STOCK PURCHASE PLAN 

1. Purpose. The purpose of the Plan is to provide employees of the Company and its Designated Companies with an opportunity to purchase
Common Stock through accumulated Contributions. The Company intends for the Plan to have two components: a Code Section 423 Component (“423 Component”) and a non-Code Section 423 Component (“Non-423
Component”). The Company’s intention is to have the 423 Component of the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of the 423 Component, accordingly, will be
construed so as to extend and limit Plan participation in a uniform and nondiscriminatory basis consistent with the requirements of Section 423 of the Code. In addition, this Plan authorizes the grant of an option to purchase shares of Common
Stock under the Non-423 Component that does not qualify as an “employee stock purchase plan” under Section 423 of the Code; such an option will be granted pursuant to rules, procedures or sub-plans adopted by the Administrator
designed to achieve tax, securities laws or other objectives for Eligible Employees and the Company. Except as otherwise provided herein, the Non-423 Component will operate and be administered in the same manner as the 423 Component. 

2. Definitions. 
 (a)
“Administrator” means the Board or any Committee designated by the Board to administer the Plan pursuant to Section 14. 

(b) “Affiliate” means any entity, other than a Subsidiary, in which the Company has an equity or other ownership interest.

 (c) “Applicable Laws” means the requirements relating to the administration of equity-based awards under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where options are, or will be,
granted under the Plan. 
 (d) “Board” means the Board of Directors of the Company. 

(e) “Change in Control” means the occurrence of any of the following events: 

(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group
(“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however,
that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in
Control; or 

 (ii) A change in the effective control of the Company which occurs on the date that a majority
of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes of this
clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or 

(iii) A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or
has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of
the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection, the following will not constitute a change in the ownership of a
substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of
the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by
the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total
value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this subsection, gross fair market value means the value of the assets of the Company, or the value of the assets
being disposed of, determined without regard to any liabilities associated with such assets. 
 For purposes of this definition, persons
will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 

Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control
event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final U.S. Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated
thereunder from time to time. 
 Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if:
(i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction. 
 (f) “Code” means the U.S. Internal Revenue Code of 1986, as amended.
Reference to a specific section of the Code or U.S. Treasury Regulation thereunder will include such section or 

  
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regulation, any valid regulation or other official applicable guidance promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing
or superseding such section or regulation. 
 (g) “Committee” means a committee of the Board appointed in accordance with
Section 14 hereof. 
 (h) “Common Stock” means the common stock of the Company. 

(i) “Company” means BioCardia, Inc., a Delaware corporation, or any successor thereto. 

(j) “Compensation” means an Eligible Employee’s base straight time gross earnings, but exclusive of payments for
incentive compensation, bonuses, commissions, payments for overtime and shift premium, equity compensation income and other similar compensation. The Administrator, in its discretion, may, on a uniform and nondiscriminatory basis, establish a
different definition of Compensation for an Offering Period to commence after the determination. 
 (k) “Contributions”
means the payroll deductions and other additional payments that the Company may permit to be made by a Participant to fund the exercise of options granted pursuant to the Plan. 

(l) “Designated Company” means any Subsidiary or Affiliate that has been designated by the Administrator from time to time in
its sole discretion as eligible to participate in the Plan. For purposes of the 423 Component, only the Company and its Subsidiaries may be Designated Companies, provided, however that at any given time, a Subsidiary that is a Designated Company
under the 423 Component will not be a Designated Company under the Non-423 Component. 
 (m) “Director” means a member of
the Board. 
 (n) “Eligible Employee” means any individual who is a common law employee providing services to the Company
or a Designated Company and is customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year by the Employer, or any lesser number of hours per week and/or number of months in any calendar
year established by the Administrator (if required under applicable local law) for purposes of any separate Offering or for Eligible Employees participating in the Non-423 Component. For purposes of the Plan, the employment relationship will be
treated as continuing intact while the individual is on sick leave or other leave of absence that the Employer approves or is legally protected under Applicable Laws. Where the period of leave exceeds three (3) months and the individual’s
right to reemployment is not guaranteed either by statute or by contract, the employment relationship will be deemed to have terminated three (3) months and one (1) day following the commencement of such leave. The Administrator, in its
discretion, from time to time may, prior to an Enrollment Date for all options to be granted on such Enrollment Date in an Offering, determine (on a uniform and nondiscriminatory basis or as otherwise permitted by Treasury Regulation Section 1.423-2) that the definition of Eligible Employee will or will not 

  
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include an individual if he or she: (i) has not completed at least two (2) years of service since his or her last hire date (or such lesser period of time as may be determined by the
Administrator in its discretion), (ii) customarily works not more than twenty (20) hours per week (or such lesser period of time as may be determined by the Administrator in its discretion), (iii) customarily works not more than
five (5) months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (iv) is a highly compensated employee within the meaning of Section 414(q) of the Code, or (v) is a
highly compensated employee within the meaning of Section 414(q) of the Code with compensation above a certain level or is an officer or subject to the disclosure requirements of Section 16(a) of the Exchange Act, provided the exclusion is
applied with respect to each Offering in an identical manner to all highly compensated individuals of the Employer whose Employees are participating in that Offering. Each exclusion will be applied with respect to an Offering in a manner complying
with U.S. Treasury Regulation Section 1.423-2(e)(2)(ii). 
 (o) “Employer”
means the employer of the applicable Eligible Employee(s). 
 (p) “Enrollment Date” means the first day of each Offering
Period. 
 (q) “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, including the rules and
regulations promulgated thereunder. 
 (r) “Exercise Date” means such dates on which each outstanding option granted under
the Plan will be exercised (except if the Plan has been terminated), as may be determined by the Administrator, in its discretion and on a uniform and nondiscriminatory basis from time to time prior to an Enrollment Date for all options to be
granted on such Enrollment Date. Unless otherwise determined by the Administration, each Exercise Date will be the last day of the applicable Offering Period. 

(s) “Fair Market Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock
determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including
without limitation the New York Stock Exchange, NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value
will be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or if no bids and asks were reported on that date, as applicable, on the last Trading Day such bids and asks were reported), as reported in
The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) In the absence of an established
market for the Common Stock, the Fair Market Value thereof will be determined in good faith by the Administrator. 

  
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 (t) “Fiscal Year” means the fiscal year of the Company. 

(u) “New Exercise Date” means a new Exercise Date if the Administrator shortens any Offering Period then in progress. 

(v) “Offering” means an offer under the Plan of an option that may be exercised during an Offering Period as further
described in Section 4. For purposes of the Plan, the Administrator may designate separate Offerings under the Plan (the terms of which need not be identical) in which Employees of one or more Employers will participate, even if the dates of
the applicable Offering Periods of each such Offering are identical and the provisions of the Plan will separately apply to each Offering. To the extent permitted by U.S. Treasury Regulation
Section 1.423-2(a)(1), the terms of each Offering need not be identical provided that the terms of the Plan and an Offering together satisfy U.S. Treasury Regulation
Section 1.423-2(a)(2) and (a)(3). 
 (w) “Offering Periods” means the
6-month periods (i) beginning on January 1 of each year and ending on June 30, and (ii) beginning July 1 of each year and ending on December 31. The duration and timing of Offering Periods may be changed pursuant to
Sections 4 and 20. 
 (x) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code. 
 (y) “Participant” means an Eligible Employee that participates in the Plan.

 (z) “Plan” means this BioCardia, Inc. 2015 Employee Stock Purchase Plan. 

(aa) “Purchase Period” means the period, as determined by the Administrator in its discretion on a uniform and
nondiscriminatory basis, commencing on the Enrollment Date and ending with the next Exercise Date, except that if the Administrator determines that more than one Purchase Period should occur within an Offering Period, subsequent Purchase Periods
within such Offering Period commence after one Exercise Date and end with the next Exercise Date at such time or times as the Administrator determines prior to the commencement of the applicable Offering Period. Unless otherwise determined by the
Administrator, a Purchase Period shall have the same duration as the Offering Period. 
 (bb) “Purchase Price” means the
price per Share of the Shares purchased under any option granted under the Plan as determined by the Administrator from time to time, in its discretion and on a uniform and nondiscriminatory basis for all options to be granted on an Enrollment Date.
However, in no event will the Purchase Price be less than eighty-five percent (85%) of the lower of the Fair Market Value of a share of Common Stock on the Enrollment Date or the Fair Market Value of a share of Common Stock on the Exercise Date
and at all times in compliance with Section 423 of the Code (or any successor rule or provision or any other Applicable Law, regulation or stock exchange rule). 

(cc) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code. 

  
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 (dd) “Trading Day” means a day on which the national stock exchange upon which
the Common Stock is listed is open for trading. 
 (ee) “U.S. Treasury Regulations” means the Treasury regulations of the
Code. Reference to a specific Treasury Regulation or Section of the Code will include such Treasury Regulation or Section, any valid regulation promulgated under such Section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such Section or regulation. 
 3. Eligibility. 

(a) Offering Periods. Any Eligible Employee on a given Enrollment Date will be eligible to participate in the Plan, subject to the
requirements of Section 5. 
 (b) Non-U.S. Employees. Eligible Employees who are citizens or residents of a non-U.S.
jurisdiction (without regard to whether they also are citizens or residents of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) may be excluded from participation in the Plan or an Offering if the
participation of such Eligible Employees is prohibited under the laws of the applicable jurisdiction or if complying with the laws of the applicable jurisdiction would cause the Plan or an Offering to violate Section 423 of the Code. In the
case of the Non-423 Component, Eligible Employees may be excluded from participation in the Plan or an Offering if the Administrator has determined that participation of such Eligible Employees is not advisable or practicable. 

(c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee will be granted an option under the
Plan (i) to the extent that, immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company
or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any
Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company
accrues at a rate, which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time, as
determined in accordance with Section 423 of the Code and the regulations thereunder. 
 4. Offering Periods. Offering Periods
will be 6-month periods (i) beginning on January 1 of each year and ending on June 30, and (ii) beginning July 1 of each year and ending on December 31, as may be amended by the Administrator from time to time, in its
discretion and on a uniform and nondiscriminatory basis, prior to an Enrollment Date for all options to be granted on such Enrollment Date. 

5. Participation. An Eligible Employee may participate in the Plan by (i) submitting to the Company’s stock administration
office (or its designee), on or before a date determined by the Administrator prior to an applicable Enrollment Date, a properly completed subscription agreement 

  
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authorizing Contributions in the form provided by the Administrator for such purpose (which may be similar to the form attached hereto as Exhibit A), or (ii) following an electronic
or other enrollment procedure determined by the Administrator. 
 6. Contributions. 

(a) At the time a Participant enrolls in the Plan pursuant to Section 5, he or she will elect to have Contributions (in the form of
payroll deductions or otherwise, to the extent permitted by the Administrator) made on each pay day during the Offering Period in an amount not exceeding fifteen percent (15%) of the Compensation, or such other limit established by the
Administrator from time to time in its discretion and on a uniform and nondiscretionary basis for all options to be granted on an Enrollment Date in an Offering, which he or she receives on each pay day during the Offering Period (for illustrative
purposes, should a pay day occur on an Exercise Date, a Participant will have any payroll deductions made on such day applied to his or her account under the then-current Purchase Period or Offering Period). The Administrator, in its sole
discretion, may permit all Participants in a specified Offering to contribute amounts to the Plan through payment by cash, check or other means set forth in the subscription agreement prior to each Exercise Date of each Purchase Period. A
Participant’s subscription agreement will remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof. 

(b) In the event Contributions are made in the form of payroll deductions, such payroll deductions for a Participant will commence on the
first pay day following the Enrollment Date and will end on the last pay day prior to the Exercise Date of such Offering Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 10
hereof. 
 (c) All Contributions made for a Participant will be credited to his or her account under the Plan and Contributions will be made
in whole percentages only. A Participant may not make any additional payments into such account. 
 (d) A Participant may discontinue his or
her participation in the Plan as provided in Section 10. Except as may be permitted by the Administrator, as determined in its sole discretion, a Participant may not change the rate of his or her Contributions during an Offering Period. 

(e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(c), a
Participant’s Contributions may be decreased to zero percent (0%) at any time during a Purchase Period or Offering Period. Subject to Section 423(b)(8) of the Code and Section 3(c) hereof, Contributions will recommence at the rate
originally elected by the Participant effective as of the beginning of the first Purchase Period or Offering Period scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 10. 

(f) Notwithstanding any provisions to the contrary in the Plan, the Administrator may allow Eligible Employees to participate in the Plan via
cash contributions instead of payroll deductions if (i) payroll deductions are not permitted under applicable local law, (ii) the Administrator determines that cash contributions are permissible under Section 423 of the Code or
(iii) for Participants participating in the Non-423 Component. 

  
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 (g) At the time the option is exercised, in whole or in part, or at the time some or all of the
Common Stock issued under the Plan is disposed of (or any other time that a taxable event related to the Plan occurs), the Participant must make adequate provision for the Company’s or Employer’s federal, state, local or any other tax
liability payable to any authority including taxes imposed by jurisdictions outside of the U.S., national insurance, social security or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the
Common Stock (or any other time that a taxable event related to the Plan occurs). At any time, the Company or the Employer may, but will not be obligated to, withhold from the Participant’s compensation the amount necessary for the Company or
the Employer to meet applicable withholding obligations, including any withholding required to make available to the Company or the Employer any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Eligible
Employee. In addition, the Company or the Employer may, but will not be obligated to, withhold from the proceeds of the sale of Common Stock or any other method of withholding the Company or the Employer deems appropriate to the extent permitted by
U.S. Treasury Regulation Section 1.423-2(f). 
 7. Grant of Option. On the Enrollment
Date of each Offering Period, each Eligible Employee participating in such Offering Period will be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common
Stock determined by dividing such Eligible Employee’s Contributions accumulated prior to such Exercise Date and retained in the Eligible Employee’s account as of the Exercise Date by the applicable Purchase Price; provided that, unless and
until otherwise determined by the Administrator, in no event will an Eligible Employee be permitted to purchase during each Offering Period more than (i) for an Offering Period commencing on January 1 of a given year, 3,000 shares of
Common Stock; and (ii) for on Offering Period commencing on July 1 of a given year, 3,000 shares of Common Stock, less any shares of Common Stock purchased by the Eligible Employee in the prior Offering Period (subject to any
adjustment pursuant to Section 19) and provided further that such purchase will be subject to the limitations set forth in Sections 3(d) and 13. The Eligible Employee may accept the grant of such option by electing to participate in the Plan in
accordance with the requirements of Section 5. The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that an Eligible Employee may purchase during each
Purchase Period of an Offering Period. Exercise of the option will occur as provided in Section 8, unless the Participant has withdrawn pursuant to Section 10. The option will expire on the last day of the Offering Period. 

8. Exercise of Option. 

(a) Unless a Participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock
will be exercised automatically on the Exercise Date, and the maximum number of full shares subject to the option will be purchased for such Participant at the applicable Purchase Price with the accumulated Contributions from his or her account.

  
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No fractional shares of Common Stock will be purchased; any Contributions accumulated in a Participant’s account, which are not sufficient to purchase a full share will be retained in the
Participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the Participant as provided in Section 10. Any other funds left over in a Participant’s account after the Exercise Date will
be returned to the Participant. During a Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable only by him or her. 

(b) If the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which options are to
be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares of Common Stock available for sale under
the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as
applicable, in as uniform a manner as will be practicable and as it will determine in its sole discretion to be equitable among all Participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods
then in effect or (y) provide that the Company will make a pro rata allocation of the shares available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine
in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20. The Company may make a pro rata
allocation of the shares available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s stockholders
subsequent to such Enrollment Date. 
 9. Delivery. As soon as reasonably practicable after each Exercise Date on which a purchase of
shares of Common Stock occurs, the Company will arrange the delivery to each Participant of the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established
by the Administrator. The Company may permit or require that shares be deposited directly with a broker designated by the Company or to a designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer.
The Company may require that shares be retained with such broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares. No Participant will have any voting,
dividend, or other stockholder rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the Participant as provided in this Section 9. 

10. Withdrawal. 
 (a) A
Participant may withdraw all but not less than all the Contributions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by (i) submitting to the Company’s stock administration office
(or its designee) a written notice of withdrawal in the form determined by the Administrator for such purpose (which may be similar to the 

  
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form attached hereto as Exhibit B), or (ii) following an electronic or other withdrawal procedure determined by the Administrator. All of the Participant’s Contributions credited
to his or her account will be paid to such Participant promptly after receipt of notice of withdrawal and such Participant’s option for the Offering Period will be automatically terminated, and no further Contributions for the purchase of
shares will be made for such Offering Period. If a Participant withdraws from an Offering Period, Contributions will not resume at the beginning of the succeeding Offering Period, unless the Participant re-enrolls in the Plan in accordance with the
provisions of Section 5. 
 (b) A Participant’s withdrawal from an Offering Period will not have any effect upon his or her
eligibility to participate in any similar plan that may hereafter be adopted by the Company or in succeeding Offering Periods that commence after the termination of the Offering Period from which the Participant withdraws. 

11. Termination of Employment. Upon a Participant’s ceasing to be an Eligible Employee for any reason, he or she will be deemed to
have elected to withdraw from the Plan and the Contributions credited to such Participant’s account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan will be returned to such Participant or, in the
case of his or her death, to the person or persons entitled thereto under Section 15, and such Participant’s option will be automatically terminated. A Participant whose employment transfers between entities through a termination with an
immediate rehire (with no break in service) by the Company or a Designated Company will not be treated as terminated under the Plan; however, if a Participant transfers from an Offering under the 423 Component to the Non-423 Component, the exercise
of the option will be qualified under the 423 Component only to the extent it complies with Section 423 of the Code. 
 12.
Interest. No interest will accrue on the Contributions of a participant in the Plan, except as may be required by Applicable Law, as determined by the Company, and if so required by the laws of a particular jurisdiction, will apply to all
Participants in the relevant Offering under the 423 Component, except to the extent otherwise permitted by U.S. Treasury Regulation Section 1.423-2(f). 

13. Stock. 
 (a) Subject
to adjustment upon changes in capitalization of the Company as provided in Section 19 hereof, the maximum number of shares of Common Stock that will be made available for sale under the Plan will be 202,849 shares of Common Stock. The number of
shares of Common Stock available for issuance under the Plan will be increased on the first day of each Fiscal Year beginning with the 2016 Fiscal Year equal to the least of (i) 500,000 shares of Common Stock, (ii) one half percent (0.5%)
of the outstanding shares of Common Stock on the last day of the immediately preceding Fiscal Year, or (iii) an amount determined by the Administrator. 

(b) Until the shares of Common Stock are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), a Participant will have only the rights of an unsecured creditor with respect to such shares, and no right to vote or receive dividends or any other rights as a stockholder will exist with respect to such shares. 

  
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 (c) Shares of Common Stock to be delivered to a Participant under the Plan will be registered in
the name of the Participant or in the name of the Participant and his or her spouse. 
 14. Administration. The Plan will be
administered by the Board or a Committee appointed by the Board, which Committee will be constituted to comply with Applicable Laws. The Administrator will have full and exclusive discretionary authority to construe, interpret and apply the terms of
the Plan, to designate separate Offerings under the Plan, to designate Subsidiaries and Affiliates as participating in the 423 Component or Non-423 Component, to determine eligibility, to adjudicate all disputed claims filed under the Plan and to
establish such procedures that it deems necessary for the administration of the Plan (including, without limitation, to adopt such procedures and sub-plans as are necessary or appropriate to permit the participation in the Plan by employees who are
foreign nationals or employed outside the U.S., the terms of which sub-plans may take precedence over other provisions of this Plan, with the exception of Section 13(a) hereof, but unless otherwise superseded by the terms of such sub-plan, the
provisions of this Plan will govern the operation of such sub-plan). Unless otherwise determined by the Administrator, the Employees eligible to participate in each sub-plan will participate in a separate Offering or in the Non-423 Component.
Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding eligibility to participate, the definition of Compensation, handling of Contributions, making of Contributions to
the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to hold Contributions, payment of interest, conversion of local currency, obligations to pay payroll tax, determination of
beneficiary designation requirements, withholding procedures and handling of stock certificates that vary with applicable local requirements. The Administrator also is authorized to determine that, to the extent permitted by U.S. Treasury Regulation
Section 1.423-2(f), the terms of an option granted under the Plan or an Offering to citizens or residents of a non-U.S. jurisdiction will be less favorable than the terms of options granted under the Plan
or the same Offering to employees resident solely in the U.S. Every finding, decision and determination made by the Administrator will, to the full extent permitted by law, be final and binding upon all parties. 

15. Designation of Beneficiary. 

(a) If permitted by the Administrator, a Participant may file a designation of a beneficiary who is to receive any shares of Common Stock and
cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such Participant of such shares and cash. In
addition, if permitted by the Administrator, a Participant may file a designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to exercise of the
option. If a Participant is married and the designated beneficiary is not the spouse, spousal consent will be required for such designation to be effective. 

(b) Such designation of beneficiary may be changed by the Participant at any time by notice in a form determined by the Administrator. In the
event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company will deliver such shares and/or cash to the executor or administrator

  
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of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash
to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

(c) All beneficiary designations will be in such form and manner as the Administrator may designate from time to time. Notwithstanding
Sections 15(a) and (b) above, the Company and/or the Administrator may decide not to permit such designations by Participants in non-U.S. jurisdictions to the extent permitted by U.S. Treasury Regulation
Section 1.423-2(f). 
 16. Transferability. Neither Contributions credited to a
Participant’s account nor any rights with regard to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent
and distribution or as provided in Section 15 hereof) by the Participant. Any such attempt at assignment, transfer, pledge or other disposition will be without effect, except that the Company may treat such act as an election to withdraw funds
from an Offering Period in accordance with Section 10 hereof. 
 17. Use of Funds. The Company may use all Contributions
received or held by it under the Plan for any corporate purpose, and the Company will not be obligated to segregate such Contributions except under Offerings or for Participants in the Non-423 Component for which Applicable Laws require that
Contributions to the Plan by Participants be segregated from the Company’s general corporate funds and/or deposited with an independent third party. Until shares of Common Stock are issued, Participants will have only the rights of an unsecured
creditor with respect to such shares. 
 18. Reports. Individual accounts will be maintained for each Participant in the Plan.
Statements of account will be given to participating Eligible Employees at least annually, which statements will set forth the amounts of Contributions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash
balance, if any. 
 19. Adjustments, Dissolution, Liquidation, Merger or Change in Control. 

(a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or
other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the corporate
structure of the Company affecting the Common Stock occurs, the Administrator, in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will, in such manner as it may deem
equitable, adjust the number and class of Common Stock that may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan that has not yet been exercised, and the
numerical limits of Sections 7 and 13. 

  
 - 12 - 

 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of
the Company, any Offering Period then in progress will be shortened by setting a New Exercise Date, and will terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Administrator.
The New Exercise Date will be before the date of the Company’s proposed dissolution or liquidation. The Administrator will notify each Participant in writing or electronically, prior to the New Exercise Date, that the Exercise Date for the
Participant’s option has been changed to the New Exercise Date and that the Participant’s option will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offering Period as
provided in Section 10 hereof. 
 (c) Merger or Change in Control. In the event of a merger or Change in Control, each
outstanding option will be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option,
the Offering Period with respect to which such option relates will be shortened by setting a New Exercise Date on which such Offering Period will end. The New Exercise Date will occur before the date of the Company’s proposed merger or Change
in Control. The Administrator will notify each Participant in writing or electronically prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the
Participant’s option will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

20. Amendment or Termination. 

(a) The Administrator, in its sole discretion, may amend, suspend, or terminate the Plan, or any part thereof, at any time and for any reason.
If the Plan is terminated, the Administrator, in its discretion, may elect to terminate all outstanding Offering Periods either immediately or upon completion of the purchase of shares of Common Stock on the next Exercise Date (which may be sooner
than originally scheduled, if determined by the Administrator in its discretion), or may elect to permit Offering Periods to expire in accordance with their terms (and subject to any adjustment pursuant to Section 19). If the Offering Periods
are terminated prior to expiration, all amounts then credited to Participants’ accounts that have not been used to purchase shares of Common Stock will be returned to the Participants (without interest thereon, except as otherwise
required under Applicable Laws, as further set forth in Section 12 hereof) as soon as administratively practicable. 
 (b) Without
stockholder consent and without limiting Section 20(a), the Administrator will be entitled to change the Offering Periods or Purchase Periods, designate separate Offerings, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit Contributions in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the
Company’s processing of properly completed Contribution elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each
Participant properly correspond with Contribution amounts, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable that are consistent with the Plan. 

  
 - 13 - 

 (c) In the event the Administrator determines that the ongoing operation of the Plan may result
in unfavorable financial accounting consequences, the Administrator may, in its discretion and, to the extent necessary or desirable, modify, amend or terminate the Plan to reduce or eliminate such accounting consequence including, but not limited
to: 
 (i) amending the Plan to conform with the safe harbor definition under the Financial Accounting Standards Board Accounting Standards
Codification Topic 718 (or any successor thereto), including with respect to an Offering Period underway at the time; 
 (ii) altering the
Purchase Price for any Offering Period or Purchase Period including an Offering Period or Purchase Period underway at the time of the change in Purchase Price; 

(iii) shortening any Offering Period or Purchase Period by setting a New Exercise Date, including an Offering Period or Purchase Period
underway at the time of the Administrator action; 
 (iv) reducing the maximum percentage of Compensation a Participant may elect to set
aside as Contributions; and 
 (v) reducing the maximum number of Shares a Participant may purchase during any Offering Period or Purchase
Period. 
 Such modifications or amendments will not require stockholder approval or the consent of any Participants. 

21. Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan will be deemed to
have been duly given when received in the form and manner specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

22. Conditions Upon Issuance of Shares. Shares of Common Stock will not be issued with respect to an option unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto will comply with all applicable provisions of law, domestic or foreign, including, without limitation, the U.S. Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and will be further subject to the approval of counsel for the Company with respect to such compliance. 

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of
any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law. 

  
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 23. Code Section 409A. The 423 Component of the Plan is exempt from the application
of Code Section 409A and any ambiguities herein will be interpreted to so be exempt from Code Section 409A. In furtherance of the foregoing and notwithstanding any provision in the Plan to the contrary, if the Administrator determines that
an option granted under the Plan may be subject to Code Section 409A or that any provision in the Plan would cause an option under the Plan to be subject to Code Section 409A, the Administrator may amend the terms of the Plan and/or of an
outstanding option granted under the Plan, or take such other action the Administrator determines is necessary or appropriate, in each case, without the Participant’s consent, to exempt any outstanding option or future option that may be
granted under the Plan from or to allow any such options to comply with Code Section 409A, but only to the extent any such amendments or action by the Administrator would not violate Code Section 409A. Notwithstanding the foregoing, the
Company will have no liability to a Participant or any other party if the option to purchase Common Stock under the Plan that is intended to be exempt from or compliant with Code Section 409A is not so exempt or compliant or for any action
taken by the Administrator with respect thereto. The Company makes no representation that the option to purchase Common Stock under the Plan is compliant with Code Section 409A. 

24. Term of Plan. The Plan will become effective upon the earlier to occur of its adoption by the Board or its approval by the
stockholders of the Company. It will continue in effect for a term of twenty (20) years, unless sooner terminated under Section 20. 

25. Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after
the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 

26. Governing Law. The Plan will be governed by, and construed in accordance with, the laws of the State of California (except its
choice-of-law provisions). 
 27. No Right to Employment. Participation in the Plan by a Participant will not be construed as giving
a Participant the right to be retained as an employee of the Company or a Subsidiary or Affiliate, as applicable. Furthermore, the Company or a Subsidiary or Affiliate may dismiss a Participant from employment at any time, free from any liability or
any claim under the Plan. 
 28. Severability. If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or
unenforceable for any reason in any jurisdiction or as to any Participant, such invalidity, illegality or unenforceability will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as to such jurisdiction or
Participant as if the invalid, illegal or unenforceable provision had not been included. 

  
 - 15 - 

 29. Compliance with Applicable Laws. The terms of this Plan are intended to comply with
all Applicable Laws and will be construed accordingly. 

  
 - 16 - 

 EXHIBIT A 

BIOCARDIA, INC. 
 2015
EMPLOYEE STOCK PURCHASE PLAN 
 SUBSCRIPTION AGREEMENT 
  

					
	             Original Application	 		  	Offering Date:                    
			
	            Change in Payroll Deduction Rate	 		  	

 1.             hereby elects to participate in the
BioCardia, Inc. 2015 Employee Stock Purchase Plan (the “Plan”) and subscribes to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan. 

2. I hereby authorize payroll deductions from each paycheck in the amount of         % of my
Compensation on each payday (from 0 to         %) during the Offering Period in accordance with the Plan. (Please note that no fractional percentages are permitted.) 

3. I understand that said payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price
determined in accordance with the Plan. I understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option and purchase Common Stock under the Plan. 

4. I have received a copy of the complete Plan and its accompanying prospectus. I understand that my participation in the Plan is in all
respects subject to the terms of the Plan. 
 5. Shares of Common Stock purchased for me under the Plan should be issued in the name(s) of
            (Eligible Employee or Eligible Employee and Spouse only). 
 6. I
understand that if I dispose of any shares received by me pursuant to the Plan within two (2) years after the Offering Date (the first day of the Offering Period during which I purchased such shares) or one (1) year after the Exercise
Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value of the shares at the time such shares were purchased by me over the
price that I paid for the shares. I hereby agree to notify the Company in writing within thirty (30) days after the date of any disposition of my shares and I will make adequate provision for federal, state or other tax withholding
obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount necessary to meet any applicable withholding obligation including any withholding
necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such shares at any time after the expiration of the two (2) year and
one (1) year holding 

  
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periods, I understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition, and that such income will be taxed as ordinary income
only to the extent of an amount equal to the lesser of (a) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares, or (b) 15% of the fair market value of the
shares on the first day of the Offering Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain. 

7. I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to
participate in the Plan. 
 Employee’s Social 
  

							
	Security Number:				  
		
				
	Employee’s Address:				  
		
				
					  
		
				
					  
		

 I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT WILL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED
BY ME. 
  

							
	Dated:						  

							Signature of Employee

  
 - 18 - 

 EXHIBIT B 

BIOCARDIA, INC. 
 2015
EMPLOYEE STOCK PURCHASE PLAN 
 NOTICE OF WITHDRAWAL 

The undersigned Participant in the Offering Period of the BioCardia, Inc. 2015 Employee Stock Purchase Plan that began on
                    ,         (the “Offering Date”) hereby notifies the Company that he or
she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such Offering Period. The undersigned
understands and agrees that his or her option for such Offering Period will be terminated automatically. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current Offering Period
and the undersigned will be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

	
	Name and Address of Participant:
	
	  

	
	  

	
	  

	
	Signature:
	
	  

	
	Date:

  
 - 19 -EXHIBIT 10.1

AMENDED AND RESTATED MANAGEMENT AGREEMENT

This AMENDED AND RESTATED MANAGEMENT AGREEMENT (this “Agreement”) made as of the 30th day of June, 2015 by and among CERES MANAGED FUTURES LLC, a Delaware limited liability company (“CMF”), EMERGING CTA PORTFOLIO L.P., a New York limited partnership (the “Partnership”) and PERELLA WEINBERG PARTNERS CAPITAL MANAGEMENT LP, a Delaware limited partnership (the “Advisor” or “Perella” together with CMF and the Partnership, the “Parties”).  This agreement amends and restates, in its entirety, the Management Agreement dated as of August 31, 2014 (the “Existing Agreement”) by and among the Parties.).

W I T N E S S E T H :

WHEREAS, CMF is the general partner of the Partnership, a limited partnership organized for the purpose of speculative trading of commodity interests, including futures contracts, options, forward contracts, swaps and other derivative instruments with the objective of achieving capital appreciation; and

 WHEREAS, the Fourth Amended and Restated Limited Partnership Agreement of the Partnership dated as of May 1, 2012 (the “Partnership Agreement”) permits CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions for the Partnership, which advisors may or may not have any prior experience managing client funds; and

WHEREAS, the Advisor is registered as an investment adviser with the Securities and Exchange Commission (“SEC”), is registered as a commodity trading advisor with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”); and

WHEREAS, CMF is registered as a commodity pool operator with the CFTC and is a member of NFA; and

WHEREAS, the Parties have entered into the Existing Agreement and now wish to amend and restate the Existing Agreement to reflect the fact that (i) the Partnership will no longer trade through PGM Master Fund L.P. and (ii) all trading of commodity interests will be conducted directly through a Partnership account; and

WHEREAS, CMF, the Partnership and the Advisor wish to enter into this Agreement in order to set forth the terms and conditions upon which the Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity interest trading activities during the term of this Agreement.

NOW, THEREFORE, the parties agree as follows:

1.            DUTIES OF THE ADVISOR.  (a) For the period and on the terms and conditions of this Agreement, the Advisor shall have sole authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of

 

the assets and funds of the Partnership allocated to it from time to time by CMF in commodity interests, including commodity futures, options on futures, spot and forward contracts, including foreign exchange forwards, foreign exchange swaps and non-deliverable foreign exchange forwards.  The Advisor may also engage in other swap and other derivative transactions on behalf of the Partnership with the prior written approval of CMF.  All such trading on behalf of the Partnership shall be i) in accordance with the trading strategies and trading policies set forth in the Partnership’s Private Placement Offering Memorandum and Disclosure Document dated as of October 31, 2013, as supplemented (the “Memorandum”), and as such trading policies may be changed from time to time upon receipt by the Advisor of prior written notice of such change, and ii) pursuant to the trading strategy selected by CMF to be utilized by the Advisor in managing the Partnership’s assets as described herein.  CMF has initially selected a variation of the program traded by PWP Global Macro Master Fund L.P., a Cayman Islands exempted limited partnership (the “PWP Global Macro Fund”), as described in Appendix A attached hereto (the “Program”), to manage the Partnership’s assets allocated to the Advisor.  Any open positions or other investments at the time of receipt of such notice of a change in trading policy shall not be deemed to violate the changed policy and shall be closed or sold in the ordinary course of trading.  The Advisor may not deviate from the trading policies set forth in the Memorandum without the prior written consent of the Partnership given by CMF.  The Advisor makes no representation or warranty that the trading to be directed by it for the Partnership will be profitable or will not result in losses.  The Advisor shall not be deemed to have custody of the Partnership’s assets.

(b)    CMF acknowledges receipt of the description of the Advisor’s Program, attached hereto as Appendix A.  All trades made by the Advisor for the account of the Partnership shall be made through such commodity broker or brokers as CMF shall direct, and the Advisor shall have no authority or responsibility for selecting or supervising any such broker in connection with the execution, clearance or confirmation of transactions for the Partnership or for the negotiation of brokerage rates charged therefor.  However, the Advisor may direct any and all trades in commodity futures and options to any futures commission merchant or independent floor broker listed on Appendix C or, with the prior written permission (by original, fax copy or email copy) of CMF, any other futures commission merchant or independent floor broker it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the futures commission merchant or independent floor broker and any give-up or floor brokerage fees are approved in advance by CMF.  The Advisor may enter into swaps and other derivative transactions permitted under Section 1(a) of this Agreement with any swap dealer listed on Appendix C or, with the prior written permission (by original, fax copy or email copy) of CMF, any other swap dealer it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the swap dealer and any give-up or other fees are approved in advance by CMF.  All give-up or similar fees relating to the foregoing shall be paid by the Partnership after all parties have executed the relevant give-up agreements (via EGUS or by original, fax copy or email copy).

(c)    The initial allocation of the Partnership’s assets to the Advisor shall be made to the Program, as described in Appendix A.  In the event the Advisor wishes to use a trading system or methodology which the Advisor deems materially different than or in

 

- 2 -

addition to the Program in connection with its trading for the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF twenty days’ prior written notice of its intention to utilize such different trading system or methodology and CMF consents thereto in writing.  The Advisor will notify CMF of any changes to the trading system or methodology that would require a change in the description of the trading strategy or methods described in Appendix A or the Memorandum, as applicable, to be materially accurate.  Further, the Advisor will provide the Partnership with a current list of all commodity interests to be traded for the Partnership’s account, which will be attached as Appendix B to this Agreement, and the Advisor will not trade any additional commodity interests for such account without providing notice thereof to CMF and receiving CMF’s written approval.  The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets under the Advisor’s management in substantially the form attached hereto as Schedule 1 together with all other matters deemed by the Advisor to be material changes to its business.  The Advisor further agrees that it will use its commercially reasonable efforts to convert to U.S. dollars: (i) foreign currency balances (not required to margin positions denominated in a foreign currency) no less frequently than monthly and (ii) U.S. dollar equivalents in individual foreign currencies of more than $250,000 within one business day after such funds are no longer needed to margin foreign positions.

(d)    The Advisor agrees to make all material disclosures to the Partnership regarding itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), its officers, directors, employees and partners, their trading performance and general trading methods, its customer accounts (but not the identities of or identifying information with respect to its customers) and otherwise as are required in the reasonable judgment of CMF to be made in any filings required by federal or state law or NFA rule or order.  Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor is not required to disclose the actual trading results of proprietary accounts of the Advisor or its principals, unless CMF reasonably determines that such disclosure is required in order to fulfill its reporting, filing or other obligations imposed on it by federal or state law or NFA rule or order (including CFTC Rule 4.25).  The Partnership and CMF acknowledge that the trading advice to be provided by the Advisor and the trading systems and the trading methodology of the Advisor are property rights belonging to the Advisor and that they shall not use, other than as contemplated under this Agreement, and shall keep all such advice, systems and methodology confidential; provided, however, that CMF and the Partnership may include the description of the trading strategy in the Memorandum provided by the Advisor.

(e)    The Advisor understands and agrees that CMF may designate other trading advisors for the Partnership and, subject to the second, third and last sentences of Section 1(f) below, apportion or reapportion to such other trading advisors the management of an amount of Net Assets of the Partnership (as defined in Section 3(b) hereof) as it shall determine in its absolute discretion.  The designation of other trading advisors and the apportionment or reapportionment of Net Assets of the Partnership to any such trading advisors pursuant to this Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the parties hereunder.

 

- 3 -

(f)    The Advisor acknowledges and agrees that CMF may, from time to time, in its absolute discretion, select additional trading advisors in respect of the assets of the Partnership and, subject to the second, third and last sentences of this Section 1(f), reapportion funds among the trading advisors for the Partnership as it deems appropriate.  CMF shall use its best efforts to make reapportionments, if any, as of the first day of a calendar month.  The Advisor agrees that it may be called upon at any time promptly to liquidate positions in CMF’s sole discretion so that CMF may reallocate the Partnership’s assets, meet margin calls on the Partnership’s account, fund redemptions, or for any other reason, except that CMF will not require the liquidation of specific positions by the Advisor.  CMF acknowledges and agrees, on behalf of itself and the Partnership, that any such instructions can have a detrimental effect on the performance of the Partnership.  CMF will use its best efforts to give five business days’ prior notice to the Advisor of any reallocations or liquidations.

(g)    The Advisor shall assume financial responsibility for any errors committed or caused by it in transmitting orders for the purchase or sale of commodity interests for the Partnership’s account including payment to the brokers of the floor brokerage commissions, exchange, NFA fees, and other transaction charges and give-up charges incurred by the brokers on such trades.  The Advisor’s errors shall include, but not be limited to, inputting improper trading signals or communicating incorrect orders to the commodity brokers.  The Advisor shall have an affirmative obligation to promptly notify CMF in accordance with the provisions of Section 8(a)(iii) of any errors with respect to the account, and the Advisor shall use its commercially reasonable efforts to identify and promptly notify CMF of any order or trade which the Advisor reasonably believes was not executed in accordance with its instructions to any broker utilized to execute orders for the Partnership.

2.            INDEPENDENCE OF THE ADVISOR.  For all purposes herein, the Advisor shall be deemed to be an independent contractor and, unless otherwise expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or sponsor of the Partnership, CMF, or any other trading advisor.  The Advisor shall not be responsible to the Partnership, CMF, any trading advisor or any limited partners for any acts or omissions of any other trading advisor to the Partnership.

3.            COMPENSATION.  (a) In consideration of and as compensation for all of the services to be rendered by the Advisor to the Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee (“Incentive Fee”) payable quarterly equal to 20% of New Trading Profits (as such term is defined below) earned by the Advisor for the Partnership and (ii) a monthly fee for professional management services (“Management Fee”) equal to 1/12 of 1.5% (1.5% per year) of the month-end Net Assets of the Partnership allocated to the Advisor (computed monthly by multiplying the Net Assets of the Partnership allocated to the Advisor as of the last business day of each month by 1.5% and dividing the result thereof by 12).

 

- 4 -

(b)    “Net Assets of the Partnership” shall have the meaning set forth in Section 7(d)(2) of the Partnership Agreement and without regard to further amendments thereto, provided that in determining the Net Assets of the Partnership on any date, no adjustment shall be made to reflect any distributions, redemptions, management fees, administrative fees, ongoing selling agent fees or Incentive Fees payable as of the date of such determination.

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

(ii)            The initial loss carryforward upon commencement of trading by the Advisor for the Partnership shall be the loss carryforward accrued by the Advisor on behalf of PGM Master Fund L.P. as of June 30, 2015 and the Advisor shall not be paid an Incentive Fee until New Trading Profits exceed the amount of such loss carryforward, plus any loss carryforward accrued by the Advisor following commencement of trading for the Partnership.

(d)    Quarterly Incentive Fees and monthly Management Fees shall be paid within twenty (20) business days following the end of the period for which such fee is payable.  In the event of the termination of this Agreement as of any date which shall not be the end of a calendar quarter or a calendar month, as the case may be, the quarterly Incentive Fee shall be computed as if the effective date of termination were the last day of the then current quarter and the monthly Management Fee shall be prorated to the effective date of termination.  If, during any month, the Partnership does not conduct business operations or the Advisor is unable to provide the services contemplated herein for more than two successive business days, the monthly Management Fee shall be prorated by the ratio which

 

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the number of business days during which CMF conducted the Partnership’s business operations or utilized the Advisor’s services bears in the month to the total number of business days in such month.

(e)    The Advisor shall bear its own expenses (including without limitation expenses related to the Advisor’s office space and utilities, and secretarial, clerical and other personnel).  The Partnership shall bear all of the expenses incurred in connection with its trading activities in accordance with Section 7(e) of the Partnership Agreement.

(f)    The provisions of this Section 3 shall survive the termination of this Agreement.

4.            RIGHT TO ENGAGE IN OTHER ACTIVITIES.  (a) The services provided by the Advisor hereunder are not to be deemed exclusive.  CMF on its own behalf and on behalf of the Partnership acknowledges that, subject to the terms of this Agreement, the Advisor and its officers, directors, employees and partners may render advisory, consulting and management services to other clients and accounts.  The Advisor and its officers, directors, employees and partners shall be free to trade for their own accounts and to advise other investors and manage other commodity accounts during the term of this Agreement and to use the same information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the Partnership.  However, the Advisor represents, warrants and agrees that it believes the rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic trading strategies for the Partnership and will not affect the capacity of the Advisor to continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement.

(b)    If, at any time during the term of this Agreement, the Advisor is required to aggregate the Partnership’s commodity positions with the positions of any other person for purposes of applying CFTC‐ or exchange‐imposed speculative position limits, the Advisor agrees that it will promptly notify CMF in writing if the Partnership’s positions are included in an aggregate amount which exceeds the applicable speculative position limit.  The Advisor agrees that, if its trading recommendations are altered because of the application of any speculative position limits, it will not modify the trading instructions with respect to the Partnership’s account in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts.  The Advisor further represents, warrants and agrees that under no circumstances will it knowingly or deliberately use trading programs, strategies or methods for the Partnership other than the strategies or methods customarily employed by it for similarly situated clients or accounts and that it will not knowingly or deliberately favor any client or account managed by it over the Partnership in any manner, it being acknowledged, however, that different trading programs, strategies or methods may be utilized for differing sizes of accounts, accounts with different trading policies or risk parameters, accounts experiencing differing inflows or outflows of equity, accounts that commence trading at different times, accounts that have different portfolios or different fiscal years, accounts utilizing different executing brokers and accounts with other differences, and that such differences may cause divergent trading results.

 

- 6 -

(c)    CMF on its own behalf and on behalf of the Partnership acknowledges that the Advisor and/or its officers, directors, employees and partners presently act, and it is agreed that they may continue to act, as advisor for other clients and accounts managed by them, and may continue to receive compensation with respect to services for such clients and accounts in amounts which may be more or less than the amounts received from the Partnership.

(d)    The Advisor agrees that it shall make such information available to CMF respecting the performance of the Partnership’s account as compared to the performance of the PWP Global Macro Fund as shall be reasonably requested by CMF in writing. CMF, on behalf of itself and the Partnership, acknowledges and agrees that the Program is a variation of the program traded by the PWP Global Macro Fund and that, as a result, the performance of such portion of the Partnership that is managed by the Advisor may differ from that of the PWP Global Macro Fund in any particular month, and it is likely to underperform or outperform the PWP Global Macro Fund in medium to long-term horizons.  The Advisor presently believes and represents that existing speculative position limits will not materially adversely affect its ability to manage the Partnership’s account given the potential size of the Partnership’s account and the Advisor’s and its principals’ current accounts and all proposed accounts for which they have contracted to act as trading advisor.

5.            TERM.  (a) This Agreement shall continue in effect for a period of one year from the date this Agreement was entered into unless otherwise terminated as set forth in this Paragraph 5.  The Advisor may terminate this Agreement at the end of such one-year period by providing prior written notice of termination to the Partnership at least thirty (30) days prior to the expiration of such one-year period.  If the Agreement is not terminated upon the expiration of such one-year period or as otherwise described below, this Agreement shall automatically renew for additional one-year periods until this Agreement is otherwise terminated, as provided herein.

(b) At any time during the term of this Agreement, CMF may terminate this Agreement upon five (5) days’ prior written notice to the Advisor.  At any time during the term of this Agreement, CMF may elect to immediately terminate this Agreement if (i) the Net Asset Value per Unit shall decline as of the close of business on any day to $400 or less; (ii) the Net Assets of the Partnership allocated to the Advisor (adjusted for redemptions, distributions, withdrawals or reallocations, if any) decline by 25% or more as of the end of a trading day from such Net Assets of the Partnership’s previous highest value; (iii) limited partners owning at least 50% of the outstanding units of the Partnership shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails to comply with the terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance of the Advisor has been such that CMF’s fiduciary duties to the Partnership require CMF to terminate this Agreement; (vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance of the Partnership; (vii) the Advisor fails to conform to the trading policies set forth in the Partnership Agreement or the Memorandum, as they may be changed from time to time, upon prior written notice to the Advisor; (viii) the Advisor merges, consolidates with an unaffiliated person, sells a substantial portion of its assets, or becomes bankrupt or insolvent; (ix) Maria Vassalou dies,

 

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becomes incapacitated, leaves the employ of the Advisor, ceases to control or is otherwise not managing the Program; (x) subject to Section 7(a)(iii) hereof, the Advisor’s registration with the SEC, its registration as a commodity trading advisor with the CFTC or its membership in NFA or any other regulatory authority, is terminated or suspended; or (xi) CMF reasonably believes that the Advisor has contributed or may contribute to any material operational, business or reputational risk to CMF or CMF’s affiliates.  This Agreement will immediately terminate upon dissolution of the Partnership or upon cessation of trading by the Partnership prior to dissolution.

(c)            The Advisor may terminate this Agreement by giving not less than thirty (30) days’ prior written notice to CMF if either CMF or the Partnership fails to comply with the terms of this Agreement.  The Advisor may terminate this Agreement by giving not less than ten (10) days’ prior written notice to CMF if: (i) the Advisor reasonably believes that CMF or the Partnership has contributed or may contribute to any material operational, business or reputational risk to the Advisor or the Advisor’s affiliates; (ii) there is a change to the Partnership Agreement (including without limitation Section 16 of the Partnership Agreement) or to the trading policies described in either the Partnership Agreement or the Memorandum that materially affects the Advisor’s rights or obligations under this Agreement or (iii) the PWP Global Macro Fund and other accounts pursuing the Program are being terminated.  The Advisor may elect to immediately terminate this Agreement if CMF’s registration as a commodity pool operator or its membership in NFA is terminated or suspended.  CMF agrees to notify the Advisor if either CMF or the Partnership agrees to merge or consolidate with an unaffiliated person, agrees to sell a substantial portion of their respective assets, or becomes bankrupt or insolvent.

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

6.            INDEMNIFICATION.  (a)(i) In any threatened, pending or completed action, suit, or proceeding to which the Advisor was or is a party or is threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’s assets by the Advisor or the offering and sale of units in the Partnership, CMF shall, subject to subsection (a)(iii) of this Section 6, indemnify and hold harmless the Advisor against any loss, liability, damage, fine, penalty, obligation, cost, expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments and awards and amounts paid in settlement actually and reasonably incurred by it in connection with such action, suit, or proceeding (collectively, the “Losses”) if the Advisor acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership, and provided that its conduct did not constitute negligence, bad faith, recklessness, intentional misconduct or a breach of its fiduciary obligations to the Partnership as a commodity trading advisor, unless and only to the extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all circumstances of the case, the Advisor is fairly and reasonably entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that no indemnification shall be available from the

 

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Partnership if such indemnification is prohibited by Section 16 of the Partnership Agreement.  CMF and the Partnership agree to promptly notify the Advisor of any amendment to Section 16 of the Partnership Agreement.  The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself, create a presumption that the Advisor did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership.

(ii)            Without limiting subsection (i) above, to the extent that the Advisor has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsection (i) above, or in defense of any claim, issue or matter therein, CMF shall indemnify the Advisor against the Losses actually and reasonably incurred by it in connection therewith.

(iii)            Any indemnification under subsection (i) above, unless ordered by a court or administrative forum, shall be made by CMF only as authorized in the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances because the Advisor has met the applicable standard of conduct set forth in subsection (i) above.  Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which approval shall not be unreasonably withheld.  The Advisor will be deemed to have approved CMF’s selection unless the Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of CMF’s selection, that the Advisor does not approve the selection.

(iv)            In the event the Advisor is made a party to any claim, dispute or litigation or otherwise incurs any Losses as a result of, or in connection with, the Partnership’s or CMF’s activities or claimed activities unrelated to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor against any Losses incurred in connection therewith.

(v)            As used in this Section 6(a), the term “Advisor” shall include the Advisor, its affiliates, principals, officers, directors, employees and partners and the term “CMF” shall include the Partnership.

(b)            (i) The Advisor agrees to indemnify, defend and hold harmless CMF, the Partnership and their affiliates against any Losses actually and reasonably incurred by them (A) as a result of the material breach of any representations and warranties or covenants made by the Advisor in this Agreement, or (B) as a result of any act or omission of the Advisor relating to the Partnership if (x) there has been a final judicial or regulatory determination or a written opinion of an arbitrator pursuant to Section 14 hereof, to the effect that such acts or omissions violated the terms of this Agreement in any material respect or involved negligence, bad faith, recklessness or intentional misconduct on the part of the Advisor (except as otherwise provided in Section 1(g)), or (y) there has been a settlement of any action or proceeding with the Advisor’s prior written consent.

(ii)            In the event CMF, the Partnership or any of their affiliates is made a party to any claim, dispute or litigation or otherwise incurs any Losses as a result of, or in

 

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connection with, the activities or claimed activities of the Advisor or its principals, officers, directors, employees and partners unrelated to CMF’s or the Partnership’s business, the Advisor shall indemnify, defend and hold harmless CMF, the Partnership or any of their affiliates against any Losses incurred in connection therewith.

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

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

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

7.            REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

(a)    The Advisor represents and warrants that:

(i)            All information with respect to the Advisor and its principals and the trading performance of any of them that has been provided to CMF by authorized persons of the Advisor, including, without limitation, the description of the Program contained in Appendix A, is complete and accurate in all material respects and such information does not contain any untrue statement of a material fact or omit to state a material fact that is necessary to make such statements and information therein not misleading.  All references to the Advisor and its principals, if any, in the Memorandum, or a supplement thereto will, after review and approval of such references by the Advisor prior to the use of such Memorandum in connection with the offering of Partnership units, be accurate in all material respects, except that with respect to pro forma or hypothetical performance information in such Memorandum, if any, this representation and warranty extends only to any underlying data made available by the Advisor for the preparation thereof and not to any hypothetical or pro forma adjustments.

(ii)            The information with respect to the Advisor set forth in the actual performance tables in the Memorandum, if any, is based on all of the customer accounts managed on a discretionary basis by the Advisor’s principals and/or the Advisor during the period covered by such tables and required to be disclosed therein, and such tables have been prepared by the Advisor or its agents in accordance with applicable CFTC and NFA rules and guidance, including, but not limited to, CFTC Rule 4.25.  The Advisor’s performance tables have been examined by an independent certified public accountant and the report thereon has been provided to CMF.  The Advisor will have its performance tables so examined no less frequently than annually during the term of this Agreement.

 

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(iii)            The Advisor will be acting as a commodity trading advisor with respect to the Partnership and not as a securities investment adviser and is duly registered with the CFTC as a commodity trading advisor, is a member of NFA, is registered as an investment adviser with the SEC, and is in compliance with any such other registration and licensing requirements as shall be necessary to enable it to perform its obligations hereunder.  The Advisor agrees to maintain and renew such registrations and licenses during the term of this Agreement.  The Advisor may de-register as a commodity trading advisor if an exemption from CFTC, exchange and swap execution facility position limit aggregation rules is available which would not require the Advisor to be registered as a commodity trading advisor, provided that the Advisor has obtained CMF’s prior written consent to such deregistration.

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

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

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

(vii)            At any time during the term of this Agreement that an offering memorandum or a prospectus relating to the Partnership units is required to be delivered in connection with the offer and sale thereof, the Advisor agrees upon the reasonable request of CMF to promptly provide CMF with such information as shall be necessary so that, as to the Advisor and its principals, such offering memorandum or prospectus is accurate in all material respects.

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

(i)            CMF is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has full limited liability company power and authority to perform its obligations under this Agreement.

(ii)            CMF and the Partnership have the capacity and authority to enter into this Agreement on behalf of the Partnership.

(iii)            This Agreement has been duly and validly authorized, executed and delivered on CMF’s and the Partnership’s behalf and is a valid and binding agreement of CMF and the Partnership enforceable in accordance with its terms.

(iv)            By entering into or performing this Agreement, CMF and the Partnership will not breach or cause to be breached any undertaking, agreement, contract, statute, rule or regulation to which either is a party or by which either is bound.

 

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(v)            CMF is registered as a commodity pool operator and is a member of NFA, and it will maintain and renew such registration and membership during the term of this Agreement.

(vi)            The Partnership is a limited partnership duly organized and validly existing under the laws of the State of New York and has full limited partnership power and authority to enter into this Agreement and to perform its obligations under this Agreement.

(vii)            The Partnership is a qualified eligible person as defined in CFTC Rule 4.7.

(viii)            The Partnership is not a Benefit Plan Investor, as defined below.  For these purposes, a “Benefit Plan Investor”, as defined under Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and any regulations promulgated thereunder, includes (a) an “employee benefit plan” that is subject to the provisions of Title I of ERISA; (b) a “plan” that is not subject to the provisions of Title I of ERISA, but that is subject to the prohibited transaction provisions of Section 4975 of the Internal Revenue Code, such as individual retirement accounts and certain retirement plans for self-employed individuals; and (c) a pooled investment fund whose assets are treated as “plan assets” under Section 3(42) of ERISA and any regulations promulgated thereunder because “employee benefit plans” or “plans” hold 25% or more of any class of equity interest in such pooled investment fund.  The Partnership agrees to notify the Advisor promptly in writing if there is any change in the percentage of the Partnership’s assets that are treated as “plan assets” for the purpose of Section 3(42) of ERISA and any regulations promulgated thereunder.

(ix)            The Partnership is an “accredited investor” under Regulation D promulgated under the Securities Act of 1933, as amended.

(x)            CMF and the Partnership are aware of the highly speculative nature of and risk of loss inherent in the transactions contemplated by this Agreement.  CMF and the Partnership have consulted with their own advisors and understand the legal and tax requirements regarding the transactions to be made pursuant to this Agreement.

8.            COVENANTS OF THE ADVISOR, CMF AND THE PARTNERSHIP.

(a)    The Advisor agrees as follows:

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

(ii)            The Advisor will promptly notify CMF of the commencement of any material suit, action or proceeding involving the Advisor or any of its principals, officers or senior employees, regardless of whether such suit, action or proceeding also involves CMF.  The Advisor will also promptly notify CMF of the commencement of any material investigation (other than routine audits, inquiries, examinations and sweeps) by any U.S. or non-U.S. federal,

 

- 12 -

state or local governmental agency or authority (including, but not limited to, the SEC, the CFTC or any state commission) or self-regulatory organization (each, a “Governmental Authority”) which involves the Advisor or any of its principals, officers or senior employees (including, but not limited to, any investigation or notice concerning the violation, or potential violation, of position limits), regardless of whether such investigation also involves CMF, in each case in which an adverse decision could (i) adversely affect the Advisor’s ability to comply with or perform the Advisor’s obligations under the Agreement and/or (ii) result in a material adverse change in the Advisor’s condition, financial or otherwise, business or prospects and/or (iii) have a materially adverse impact on the reputation of the Advisor and/or any of its affiliates, CMF, the Partnership, Morgan Stanley Investment Management Inc., Morgan Stanley Smith Barney Holdings LLC, Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC and/or Morgan Stanley.

(iii)            In the placement of orders for the Partnership’s account and for the accounts of any other client, the Advisor will utilize a pre-determined, systematic, fair and reasonable order entry system, which shall, on an overall basis, be no less favorable to the Partnership than to any other account managed by the Advisor.  When engaging any service providers to the Partnership, CMF shall request such service provider to cooperate with the Advisor in its performance of its duties under this Agreement.  The Advisor acknowledges its obligation to review and reconcile the Partnership’s positions, prices and equity in the account managed by the Advisor daily and within two business days to notify, in writing, the broker and CMF and the Partnership’s brokers of (A) any error committed by the Advisor or its principals or employees; (B) any trade which the Advisor believes was not executed in accordance with its instructions; and (C) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or equity in the account) between its records and the information reported on the account’s daily and monthly broker statements.

(iv)            The Advisor will use its best efforts to close out all futures positions prior to any applicable delivery period, and will use its best efforts to avoid causing the Partnership to take delivery of any commodity.

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

(i)            CMF and the Partnership will comply with all applicable laws, including rules and regulations of the CFTC, NFA, swap execution facility and/or the commodity exchange on which any particular transaction is executed.

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

(iii)            CMF or the selling agents for the Partnership have policies, procedures, and internal controls in place that are reasonably designed to comply with applicable anti-money laundering laws, rules and regulations, including applicable provisions of the USA PATRIOT Act.  CMF or the selling agents for the Partnership have Customer Identification Programs (“CIP”), which require the performance of CIP due diligence in accordance with

 

- 13 -

applicable USA PATRIOT Act requirements and regulatory guidance.  CMF or the selling agents for the Partnership also have policies, procedures, and internal controls in place that are reasonably designed to comply with regulations and economic sanctions programs administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control.

9.            COMPLETE AGREEMENT.  This Agreement (and its Appendices) constitutes the entire agreement between the parties pertaining to the subject matter hereof.

10.            ASSIGNMENT.  This Agreement may not be assigned by any party without the express written consent of the other parties.

11.            AMENDMENT.  This Agreement may not be amended except by the written consent of the parties.

12.            NOTICES.  All notices, demands or requests required to be made or delivered under this Agreement (including requests for approval) as well as any approvals given under this Agreement shall be effective upon actual receipt and shall be made either by electronic (email) copy or in writing and delivered personally or by registered or certified mail or expedited courier, return receipt requested, postage prepaid, to the addresses below or to such other addresses as may be designated by the party entitled to receive the same by notice similarly given:

If to CMF or to the Partnership:

Ceres Managed Futures LLC

522 Fifth Avenue

New York, New York  10036

 Attention:  Patrick Egan

Email:  patrick.egan@morganstanley.com

If to the Advisor:

Perella Weinberg Partners Capital Management LP

767 Fifth Avenue

New York, New York  10153

Attention:  General Counsel

Email:  compliance@pwpartners.com

13.            GOVERNING LAW.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

14.            ARBITRATION.  The parties agree that any dispute or controversy arising out of or relating to this Agreement or the interpretation thereof, shall be settled by arbitration in accordance with the rules, then in effect, of NFA or, if NFA shall refuse jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration

 

- 14 -

 

Association; provided, however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator shall state in writing his reasons for his award, and further provided, that any such arbitration shall occur within the Borough of Manhattan in New York City.  Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction.

15.            NO THIRD PARTY BENEFICIARIES.  There are no third  party beneficiaries to this Agreement, except that certain persons not party to this Agreement may have rights under Section 6 hereof.

16.            COUNTERPARTS.  This Agreement may be executed in any number of counterparts, including via facsimile or email, each of which is an original and all of which when taken together evidence the same agreement.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

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PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION.  THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE.  CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.

YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE EFFECTED.

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

	 	
CERES MANAGED FUTURES LLC

 

	 	
By  /s/ Patrick Egan                                     

	 	 	
Patrick Egan

	 	 	
President and Director

 

	 	
EMERGING CTA PORTFOLIO L.P.

 

	 	
By:

	
Ceres Managed Futures LLC

	 	 	
(General Partner)

 

	 	
By  /s/ Patrick Egan                                      

	 	 	
Patrick Egan

	 	 	
President and Director

 

	 	
PERELLA WEINBERG PARTNERS CAPITAL MANAGEMENT LP

 

	 	
By  /s/ Aaron Hood                                     

	 	 	
Name:  Aaron Hood

	 	 	
Title:  Authorized Person

 

 

Appendix A

The principal investment objective of this strategy is to achieve attractive absolute returns across diverse market environments by investing in a global diversified portfolio of derivatives on broad-based equity indices, currencies, sovereign debt and commodities.  The strategy generally seeks to accomplish its objective by investing primarily in major equity index futures (including, but not restricted to, futures on equity indices across Europe, Asia Pacific and North America), major liquid currencies (through forward foreign currency contracts), major commodity futures, highly rated sovereign debt futures (including, but not restricted to, U.S. Treasuries, German Bunds and Canadian bonds) and short-term deposit futures (including, but not restricted to, futures on Eurodollar, Euribor, Sterling and Euroyen).

The strategy is based on fundamental predictive relationships of asset returns and macroeconomic factors and implemented in a systematic investment framework.  The strategy has been developed over 20 years of research and implementation experience.  The Advisor focuses on developed markets and expects that the instruments described above will be liquid.

The strategy seeks to target a 10% annualized volatility over the long-term.  In the short-term, the strategy’s realized volatility may fluctuate due to market conditions and risk level of the portfolio.  The target volatility of the strategy is intended as a measure of risk taken by the portfolio and reflects the degree to which the strategy’s returns will move.  Volatility is defined as the standard deviation of returns over a certain period.  The strategy seeks to achieve this by estimating the volatility of the portfolio and adjusting the portfolio exposures and position sizing accordingly to target 10% volatility.  For the Partnership’s account that is traded by the Advisor, the Advisor will generally target a 15% annualized volatility over the long-term.  To achieve the 15% target volatility for the Partnership’s account, the Advisor will adjust the parameters to reflect the modified target volatility and the portfolio construction process will adjust accordingly to achieve the 15% volatility level.  It is also at the discretion of the Advisor to manage the Partnership’s account at a lower volatility level over short time periods if warranted by market conditions or other discretionary considerations.  If the Advisor manages the Partnership’s account at lower volatility level for a period of time, the average annualized volatility realized may result in a level lower than the 15% target.

 

A-1

Appendix B

Commodity Interests to be Traded by Perella Weinberg Partners Capital Management LP on Behalf of Emerging CTA Portfolio L.P.

	
Trader Market Code

 

	
Exchange

 

	
Market Description

 

	
JPY Curncy

 

	
#N/A

 

	
JAPANESE YEN

 

	
AUD Curncy

 

	
#N/A

 

	
AUSTRALIAN DOLLAR

 

	
ZAR Curncy

 

	
#N/A

 

	
S. AFRICAN RAND

 

	
GBP Curncy

 

	
#N/A

 

	
BRITISH POUND

 

	
CHF Curncy

 

	
#N/A

 

	
SWISS FRANC

 

	
EUR Curncy

 

	
#N/A

 

	
EURO

 

	
MXN Curncy

 

	
#N/A

 

	
MEXICAN PESO

 

	
CAD Curncy

 

	
#N/A

 

	
CANADIAN DOLLAR

 

	
CFA Index

 

	
Euronext Derivatives Paris

 

	
CAC40 10 EURO FUT (40 Euronext Paris)

 

	
STA Index

 

	
Borsa Italiana (IDEM)

 

	
S&P/MIB IDX FUT  (Broad Italian)

 

	
Z A Index

 

	
LIFFE

 

	
FTSE 100 IDX FUT (100 LSE)

 

	
GXA Index

 

	
Eurex

 

	
DAX INDEX FUTURE (30 German)

 

	
QCA Index

 

	
OMX Nordic Exchange Stockholm

 

	
OMXS30 IND FUTURE (30 Swedish)

 

	
EOA Index

 

	
Euronext Derivatives Amsterdam

 

	
AMSTERDAM IDX FUT (leading Dutch)

 

	
XPA Index

 

	
ASX Trade24

 

	
SPI 200 FUTURES (200 Australia)

 

	
NKA Index

 

	
Osaka Exchange

 

	
NIKKEI 225 (OSE) (225 Japanese)

 

	
TPA Index

 

	
Osaka Exchange

 

	
TOPIX INDX FUTR (Tokyo Stock Exchange)

 

	
HIA Index

 

	
Hong Kong Futures Exchange

 

	
HANG SENG IDX FUT (Hong Kong)

 

	
ESA Index

 

	
Chicago Mercantile Exchange

 

	
S&P500 EMINI FUT

 

	
NQA Index

 

	
Chicago Mercantile Exchange

 

	
NASDAQ 100 E-MINI

 

	
FAA Index

 

	
Chicago Mercantile Exchange

 

	
S&P MID 400 EMINI

 

	
RTAA Index

 

	
ICE Futures US Indices

 

	
Russell 2000 Mini

 

 

B-1

 

 

	
Trader Market Code

 

	
Exchange

 

	
Market Description

 

	
EDA Comdty

 

	
Chicago Mercantile Exchange

 

	
90DAY EURO$ FUTR

 

	
ERA Comdty

 

	
LIFFE

 

	
3MO EURO EURIBOR

 

	
L A Comdty

 

	
LIFFE

 

	
90DAY STERLING FUTR

 

	
YEA Comdty

 

	
Tokyo Financial Exchange

 

	
3MO EUROYEN TFX FUTR

 

	
GCA Comdty

 

	
Commodity Exchange, Inc.

 

	
GOLD 100 OZ FUTR

 

	
CLA Comdty

 

	
New York Mercantile Exchange

 

	
WTI CRUDE FUTURE

 

	
HGA Comdty

 

	
Commodity Exchange, Inc.

 

	
COPPER FUTURE

 

	
C A Comdty

 

	
Chicago Board of Trade

 

	
CORN FUTURE

 

	
DUA Comdty

 

	
Eurex

 

	
German 2yr futures

 

	
OEA Comdty

 

	
Eurex

 

	
German 5yr futures

 

	
RXA Comdty

 

	
Eurex

 

	
German 10yr futures

 

	
CNA Comdty

 

	
Montreal Exchange

 

	
Canada 10yr futures

 

	
TUA Comdty

 

	
Chicago Board of Trade

 

	
US 2yr futures

 

	
FVA Comdty

 

	
Chicago Board of Trade

 

	
US 5yr futures

 

	
TYA Comdty

 

	
Chicago Board of Trade

 

	
US 10yr futures

 

B-2

Appendix C

Morgan Stanley & Co.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Barclays Capital Inc

Citibank N.A.

Nomura Securities International Inc

Scotia Capital Inc.

C-1

Schedule 1

		·	Monthly reports for investors in the PWP Global Macro Fund

		·	Monthly gross RoR for the Partnership

(Please see attached)

 

S-1

	

 

 

	
PWP DRAFT

7/7/2014

 

Manager Factsheet

Kindly provide answers to the following questions:

	
Firm Information

	
 

1)

	
 

Please state the complete name of your firm.

	
 

Perella Weinberg Partners Capital Management

	
 

2)

	
 

Please state the year in which the firm was founded.

	
 

2006

	
 

3)

	
 

Please identify the jurisdiction in which the firm was formed.

	 
	
 

4)

	
 

Please state the location of your firm’s primary office.

	
 

New York

	
 

5)

	
 

Please state the location of any secondary offices, and their purpose.

	
 

London, San Francisco, Denver, Abu Dhabi, Dubai

	
 

6)

	
 

Please state the current headcount of your firm.

	
 

403 employees

	
 

7)

	
 

Please state the current Assets Under Management (“AUM”) of your firm.

	
 

$11.7 billion as of June 1, 2014

	
 

8)

	
 

Please state the breakdown between Hedge Fund and other AUM (stating the types of funds represented by other AUM, if applicable).

	
 

Hedge funds: $2.2 billion

Private equity: $3.9 billion

Outsourced CIO: $5.6 billion

	
 

9)

	
 

Please identify the owners of the firm, and their respective ownership percentages.

	
 

Perella Weinberg Partners Group LP (“Perella Weinberg Partners” or “PWP”) is an independent, privately-owned financial services firm founded in 2006. PWP’s partners (“Partners”) have significant experience and tenure in the financial services industry and collectively own approximately 80% of PWP.  The Partners share a common vision based on integrity, professionalism and trust, along with a commitment to serving clients’ interests first.

 

Perella Weinberg Partners raised $1.2 billion from a group of global strategic investors (the “Strategic Investors”) to establish its operations and form an investment fund (the “Investment Fund”) that invests in the various investment strategies established by PWP in its Asset Management business, Perella Weinberg Partners Capital Management LP (“PWPCM” or the “Firm”).  The Strategic Investors own the remaining ~20% of PWP.

 

 

1

 

	
 

10)

	
 

Please identify any family relationships amongst the firm’s employees (as well as between firm employees, and non-employees providing services to the firm or its funds).

	
 

N/A

	
 

11)

	
 

Please state any regulatory registrations held by your firm (e.g. SEC, CFTC, NFA, FINRA, FCA (United Kingdom), SFC (Hong Kong), MAS (Singapore)).

	
 

PWPCM has been registered under file number 801-67735 as an “investment adviser” with the U.S. Securities and Exchange Commission (“SEC”) under the U.S. Investment Advisers Act of 1940 since April 2007.

 

PWPCM is not registered as a broker-dealer with the Financial Industry Regulatory Authority (“FINRA”); however, Perella Weinberg Partners provides investment banking services in the United States and Europe through a wholly-owned subsidiary, Perella Weinberg Partners LP (“PWPLP”), a broker-dealer registered with the U.S. Securities and Exchange Commission and a member of FINRA and Securities Investor Protection Corporation.  Additionally, Perella Weinberg Partners provides investment banking services in the United Kingdom and Europe through subsidiaries, including, among others, Perella Weinberg Partners UK LLP (“PWP-UK”), an entity authorized and regulated in the United Kingdom by the Financial Conduct Authority.

 

Both PWPLP and PWP-UK:  (1) operate primarily to facilitate the activities of Perella Weinberg Partners’ corporate advisory business; (2) generally do not engage directly in the sale of securities; and (3) do not have custody or clearing operations.

	
 

12)

	
 

Please identify any civil, criminal or regulatory proceedings or lawsuits to which your firm or its officers has been a party or which are pending (as either plaintiff or defendant).

	
 

To the best knowledge of the Firm, as of the date of this Due Diligence Request, there have been no regulatory, administrative, civil or criminal suits or proceeding pending, on appeal or concluded against any member of the Firm relating to investment advisory services within the last six years that (i) are in the opinion of the Manager acting reasonably and in good faith, material to the operation of the Fund or the Manager or (ii) that allege fraud or securities law violations of a material nature by the Firm or its officers.

	
 

Strategy Information (Only Applicable if PWP is tracking an existing strategy where the Manager has a comingled vehicle)

	
 

13)

	
 

Please state the complete name of the Fund.

	
 

N/A

	
 

14)

	
 

Please state the year in which the Fund was founded.

	
 

N/A

	
 

15)

	
 

Please identify the jurisdiction in which the Fund was formed.

	
 

N/A

	
 

16)

	
 

Please state the current AUM of the Fund.

	
 

N/A

 

2

	
 

17)

	
 

Please state the frequency with which redemptions are permitted from the Fund.

	
 

N/A

	
 

18)

	
 

Please state the fees to which investors in the Fund are subject.

	
 

N/A

	
 

19)

	
 

Please state the frequency with which the Fund’s Net Asset Value (“NAV”) is calculated.

	
 

N/A

	
 

20)

	
 

Please state the name of the Fund’s custodians, prime brokers, any ISDA counterparties and FCMs

	
 

N/A

	
 

Firm and Strategies/Fund Operations Information

	
 

21)

	
 

Please identify who at the firm is responsible for overseeing back- office operations (COO, CFO etc).

	
 

Aaron Hood is the Chief Financial Officer. Prior to serving as Perella Weinberg Partners’ Chief Financial Officer, Mr. Hood was the Chief Operating Officer of the Firm’s Asset Management business.  Prior to joining Perella Weinberg Partners, Mr. Hood was a Vice President in Morgan Stanley’s Leveraged Finance Group where he covered energy, power and transportation clients and a former Associate in Morgan Stanley’s Investment Banking Group.

	
 

22)

	
 

Please state the current headcount devoted to back-office operations.

	
 

Fund Accounting & Operations: 25

Finance & Administration: 15

	
 

23)

	
 

Please identify key trade operations and fund accounting systems.

	
 

Trades are directed through the Firm’s centralized trading desk with the guidance of Chip Krotee, the Firm’s Head Trader.  Trades are initiated by the Portfolio Manager and are sent via email to our centralized trading desk, which confirms receipt by return email.  Trades are then entered into the Eze Castle/Pulse Order Management System (“OMS”) by our traders, and where possible, sent via FIX to a broker for execution.  Reports are returned electronically from the broker until the order is filled.  We require each broker to confirm all final executions (or outstanding orders as the case may be) on trade date.  Omgeo’s Oasys and CTM pre-matching and allocation tool is used to confirm and allocate U.S. and international equity executions, respectively, on trade date.  The OMS creates trade files which are sent daily to the Fund’s Prime Brokers and Administrator.

	
 

24)

	
 

Please describe cash transfers controls and procedures.

	
 

Cash relating to investor transactions is managed via an account controlled by the Administrator.  Following documentation and KYC/AML approval by the Administrator, the CFO and Product Controller direct the Administrator to move monies to the appropriate prime broker account or to pay redemptions.  The prime broker account instructions are set up with the Administrator as standing instructions.  Wires from the Administrator require three individuals to enter, approve and release using JPMorgan ACCESS, a web-based treasury application.

Cash movements for operating expenses or relating to trades are generally processed via web-based applications offered by the Fund’s Prime Brokers.  Where possible, 

 

3

	 		
standard instructions are maintained within those applications.  For wires in excess of $100,000, the Prime Broker applications require three individuals to enter and release wires; two individuals are required for wires below the threshold.  Individuals with authority to release wires include the Chief Financial Officer, Chief Accounting Officer, a Director of Fund Accounting and a Director of Operations.

Management company expenses are generally paid using JPMorgan ACCESS and require two individuals to enter and release transactions.  Individuals with authority to release transactions include the CFO and the Controller of Perella Weinberg Partners Group LP

	
 

25)

	
 

Please state the percentage of non-exchange-listed or illiquid assets currently in the Fund’s portfolio, and how these assets are priced (if applicable, please state the name of any external valuation agents involved in valuing the Fund’s portfolio, and describe their role in the process).

	
 

N/A

	
 

26)

	
 

Have there been any NAV restatements in the Firm’s history?

If so, please explain the circumstances.

	
 

No.

	
 

27)

	
 

Please state whether any of the firm’s Funds audited annual financial statements have ever received a qualified opinion (explaining the circumstances, if applicable).

	
 

No.

	
 

28)

	
 

Please state whether the firm maintains a Business Continuity and Disaster Recovery Plan, and if so, whether the plan is periodically tested.

	
 

The Firm maintains a Business Continuity and Disaster Recovery Plan.

	
 

29)

	
 

Do you have a program to periodically review the cybersecurity risks of your business applications and systems?

	
 

Yes.

	
 

Form Completion

	
 

30)

	
 

Please identify the person at your firm responsible for completion of this form.

	
 

Jody Shechtman

	
 

31)

	
 

Please state the date on which this form was completed.

	
 

July 30, 2014

4

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