Document:

EX-10.6

 Exhibit 10.6 

PHASEBIO PHARMACEUTICALS, INC. 

CHANGE IN CONTROL SEVERANCE BENEFIT PLAN 

1.        INTRODUCTION. This PhaseBio Pharmaceuticals, Inc. Change in
Control Benefit Severance Plan (the “Plan”) is established by PhaseBio Pharmaceuticals, Inc. (the “Company”) on May 17, 2013 (the “Effective Date”). The Plan provides for
change in control severance benefits to selected employees of the Company. This document constitutes the Summary Plan Description for the Plan. 

2.         DEFINITIONS. For purposes of the Plan, the following terms are defined as follows:

 (a)        “Board” means the Board of Directors of
the Company. 
 (b)        “Cause,” as determined by
the Board acting in good faith and based on information then known to it, means the Participant’s: (i) refusal or failure to perform the Participant’s material, lawful and appropriate duties; (ii) material violation of Company
policy or any written agreement between the Company and the Participant; (iii) repeated unexplained or unjustified absence from the Company; (iv) intentional or negligent misconduct; (v) conviction of, or the entering of a plea of
nolo contendere with respect to, any felony or a crime involving moral turpitude; (vi) unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any other party to whom the Participant owes an
obligation of non-disclosure as a result of the Participant’s relationship with the Company; (vii) commitment of any act of fraud, embezzlement, misappropriation, dishonesty or breach of fiduciary
duty against the Company that causes, or is likely to cause, material harm to the Company or its subsidiaries or is intended to result in substantial personal enrichment; or (viii) failure to cooperate with the Company in any investigation or
formal proceeding, including any government investigation. 
 (c)
        “Change in Control” means the occurrence of any of the following events: 

(i)        any sale or exchange of the capital stock by the shareholders of
the Company in one transaction or series of related transactions where more than 50% of the outstanding voting power of the Company is acquired by a person or entity or group of related persons or entities; or 

(ii)        any reorganization, consolidation or merger of the Company where
the outstanding voting securities of the Company immediately before the transaction represent or are converted into less than fifty percent (50%) of the outstanding voting power of the surviving entity (or its parent corporation) immediately after
the transaction; or 

  
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 (iii)        the
consummation of any transaction or series of related transactions that results in the sale of all or substantially all of the assets of the Company; or 

(iv)        any “person” or “group” (as defined in the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becoming the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities representing more than fifty percent (50%) of the voting power of the Company then outstanding. 
 Notwithstanding the foregoing,
the term Change in Control will not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. To the extent required for compliance with Section 409A of the Code, in no
event will a Change in Control be deemed to have occurred if such transaction is not also a “change in the ownership or effective control of” the Company or “a change in the ownership of a substantial portion of the assets of”
the Company as determined under Treasury Regulations Section 1.409A-3(i)(5) (without regard to any alternative definition thereunder). 

(d)        “Change in Control Termination” means a
Participant’s Involuntary Termination, that occurs (i) in connection with a Change in Control, or (ii) within the twelve-month period immediately following, a Change in Control. The Plan Administrator shall irrevocably determine, in
its sole discretion, whether a Participant incurs a Change in Control Termination by virtue of clause (i) of the preceding sentence. If such a determination is made, the Plan Administrator shall notify the Participant that the Involuntary
Termination shall be deemed a Change in Control Termination on or prior to the date of such termination. 
 (e)
        “Code” means the Internal Revenue Code of 1986, as amended. 

(f)         “Common Stock” means the common stock of
the Company. 
 (g)        “Disability” means the
Participant’s inability, due to physical or mental incapacity, to perform the Participant’s duties with reasonable accommodation for a period of ninety (90) consecutive days or one hundred and twenty (120) days during any
consecutive six-month period. 

(h)        “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended. 
 (i)        “Good
Reason” means, without the Participant’s written consent: (i) a material reduction or material adverse change in job duties, responsibilities or authority inconsistent with the Participant’s position with the Company;
provided, however, that any such reduction or change after a Change in Control (or similar corporate transaction that does not constitute a Change in Control) shall not constitute Good Reason by virtue of the fact that the Participant
is performing similar duties and responsibilities in a larger organization; (ii) a material reduction of the Participant’s then current base salary, representing a reduction of more than ten percent (10%) of

  
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the Participant’s then current base salary; provided, that an across-the-board reduction in the salary
level of all executive officers of the Company by the same percentage amount as part of a general salary level reduction shall not constitute such a material salary reduction; (iii) a material reduction of the Participant’s target bonus
opportunity; provided, that an across-the-board reduction in the target bonus opportunities of all executive officers of the Company shall not constitute such a
material reduction in target bonus opportunity; (iv) the relocation of the principal place for performance of the Participant’s duties to the Company to a location more than fifty (50) miles from the Company’s then current
location, which relocation is adverse to the Participant, except for required travel on the Company’s business; (v) any material breach by the Company of the Plan or any other written agreement between the Company and the Participant; or
(vi) the failure by any successor to the Company to assume the Plan and any obligations under the Plan; provided, that the Participant gives written notice to the Company of the event forming the basis of the termination for Good Reason
within sixty (60) days after the date on which the Company gives written notice to the Participant of the Company’s affirmative decision to take an action set forth in clause (i), (ii), (iii), (iv) or (v) above, the Company fails to
cure such basis for the Good Reason resignation within thirty (30) days after receipt of the Participant’s written notice and the Participant terminates his or her employment within thirty (30) days following the expiration of the
cure period. 
 (j)        “Involuntary Termination”
means a Participant’s (i) termination of employment by the Company, resulting in a Separation from Service, for a reason other than due to death, Disability, or for Cause or (ii) termination of employment, resulting in a Separation
from Service, for Good Reason. 

(k)        “Participant” means each individual who is
employed by the Company, has been designated as a Participant by the Plan Administrator, and has received and returned a signed Participation Notice. 

(l)        “Participation Notice” means the latest
notice delivered by the Company to a Participant informing the Participant that he or she is eligible to participate in the Plan, substantially in the form attached hereto as EXHIBIT A. 

(m)        “Plan Administrator” means the Board or any
committee of the Board duly authorized to administer the Plan. The Plan Administrator may, but is not required to be, the Compensation Committee of the Board. The Board may at any time administer the Plan, in whole or in part, notwithstanding that
the Board has previously appointed a committee to act as the Plan Administrator. Notwithstanding the foregoing, upon and after the consummation of a Change in Control, the Plan Administrator shall mean the Representative. 

(n)        “Release Effective Date” means the date,
which must occur during the Release Period, on which the Release becomes effective and is no longer revocable by the Participant. 

  
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 (o)
        “Release” has the meaning set forth in Section 5. 

(p)        “Release Period” means the sixty-day period following a Participant’s Change in Control Termination during which the Release must be executed (and not revoked) by the Participant. 

(q)        “Representative” means one or more members
of the Board or persons designated by the Board prior to or in connection with a Change in Control to administer the Plan. 

(r)        “Separation from Service” means a
“separation from service” within the meaning of Treasury Regulations Section 1.409A-1(h), without regard to any alternative definition thereunder. 

3.         ELIGIBILITY FOR BENEFITS. 

(a)        Eligibility; Exceptions to Benefits. Subject to the terms and
conditions of the Plan, the Company will provide the benefits described in Section 4 to the affected Participant. A Participant will not receive benefits under the Plan (or will receive reduced benefits under the Plan) in the following
circumstances, as determined by the Plan Administrator, in its sole discretion: 

(i)        The Participant’s employment is terminated by either the
Company or the Participant for any reason, including an Involuntary Termination, other than a Change in Control Termination. 

(ii)        The Participant has not entered into the Company’s standard
form of Employee Invention Assignment and Confidentiality Agreement or any similar or successor document (the “Confidentiality Agreement”). 

(iii)        The Participant has failed to execute and allow to become
effective the Release (as defined and described below) within the Release Period. 

(iv)        The Participant has failed to return all Company Property. For
this purpose, “Company Property” means all paper and electronic Company documents (and all copies thereof) created and/or received by the Participant during his or her period of employment with the Company and other Company
materials and property that the Participant has in his or her possession or control, including, without limitation, Company files, notes, drawings records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information,
research and development information, sales and marketing information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including, without limitation,
leased vehicles, computers, computer equipment, software programs, facsimile machines, mobile telephones, servers), credit and calling 

  
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cards, entry cards, identification badges and keys, and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof,
in whole or in part). As a condition to receiving benefits under the Plan, a Participant must not make or retain copies, reproductions or summaries of any such Company documents, materials or property. However, a Participant is not required to
return his or her personal copies of documents evidencing the Participant’s hire, termination, compensation, benefits and stock options and any other documentation received as a stockholder of the Company. 

(b)        Termination and/or Recoupment of Benefits. 

(i)        A Participant’s right to receive benefits under the Plan will
terminate immediately if, at any time prior to or during the period for which the Participant is receiving benefits under the Plan, the Participant, without the prior written approval of the Plan Administrator, engages in a Prohibited Action (as
defined below). In addition, if benefits under the Plan have already been paid to a Participant and a Participant subsequently engages in a Prohibited Action during the Prohibited Period (or it is determined that a Participant engaged in a
Prohibited Action prior to receipt of such benefits), any benefits previously paid to the Participant shall be subject to recoupment by the Company on such terms and conditions as shall be determined by the Plan Administrator, in its sole
discretion. The “Prohibited Period” shall commence on the date of the Participant’s Change in Control Termination and continue for the number of months corresponding to the Severance Payment
set forth in Section 4(b)(iii) below. 
 (ii)        A
“Prohibited Action” shall occur if the Participant: 

(1)        breaches a material provision of the Confidentiality Agreement
and/or any obligations of confidentiality, non-solicitation, non-disparagement, no conflicts or non-competition set forth in the
Participant’s employment agreement, offer letter, any other written agreement between the Participant and the Company, or under applicable law; 

(2)        encourages or solicits any of the Company’s then current
employees to leave the Company’s employ for any reason or interferes in any other manner with employment relationships at the time existing between the Company and its then current employees; or 

(3)        induces any of the Company’s then current clients, customers,
suppliers, vendors, distributors, licensors, licensees, or other third parties to terminate their existing business relationship with the Company or interferes in any other manner with any existing business relationship between the Company and any
then current client, customer, supplier, vendor, distributor, licensor, licensee, or other third parties. 

4.        PAYMENTS & BENEFITS UPON
A CHANGE IN CONTROL TERMINATION. Except as may otherwise be provided in the Participant’s Participation Notice, in the event of a Change in Control

  
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Termination, the Company will provide the payments and benefits described in this Section 4, subject to the terms and conditions of the Plan. For the avoidance of doubt, the Plan does not
provide for duplication (in whole or in part) of benefits with any other agreement or plan. 

(a)        Payment of Accrued Obligations. The Company shall pay to each
eligible Participant who incurs a Change in Control Termination a lump sum payment in cash, paid in accordance with applicable law, equal to the sum of (i) the Participant’s accrued but unpaid base salary and any accrued but unpaid
vacation pay through the date of the Change in Control Termination, and (ii) any earned but unpaid annual bonus for any fiscal year preceding the fiscal year in which the termination occurs. 

(b)        Cash Severance. Subject to the execution (and non-revocation) of the Release, the Participant will receive as severance an amount equal to (i) twelve (12) months of the Participant’s Base Salary (the “Severance Payment”) and
(ii) the Pro-Rata Bonus. Such amounts will be payable in accordance with Section 4(b)(iii) below. 

(i)        Base Salary. For this purpose,
“Base Salary” means 1/12th of the Participant’s annual base salary (excluding incentive pay, premium pay, commissions overtime, bonuses and other forms of variable
compensation) as in effect on the date of the Change in Control. 

(ii)        Pro-Rata
Bonus. For this purpose, the “Pro-Rata Bonus” means an amount equal to the product of (A) the Participant’s target annual bonus (under the Company’s annual
bonus plan or program) calculated at 100% of target levels as specified in such Company bonus plan or program as in effect immediately prior to the date of the Change in Control Termination and (B) a fraction, the numerator of which is the
number of days in such fiscal year in which the Participant was employed by the Company preceding and including the date of the Change in Control Termination and the denominator of which is the number of calendar days in such fiscal year. 

(iii)        Payment Schedule. The Severance Payment and
the Pro-Rata Bonus will be made on the first payroll date that occurs more than five (5) days after the date on which the Release becomes effective (the “Release Effective Date”).
Notwithstanding the foregoing, to the extent required to comply with Section 409A (as defined below), in the event that the Release Period spans two calendar years such that the Release Effective Date could occur in either of such calendar
years, the Severance Payment and Pro-Rata Bonus to be paid to the Participant will be made in the second calendar year. 

(c)         COBRA Payments; Special Severance Payments; Lump Sum Payment. 

  
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 (i)        COBRA
Payment Period. If the Participant is eligible for and has made the necessary elections for continuation coverage pursuant to COBRA under a group health, dental or vision plan sponsored by the Company, the Company will pay, as and
when due directly to the COBRA carrier, the COBRA premiums necessary to continue the Participant’s COBRA coverage for the Participant and the Participant’s eligible dependents from the date of the Change in Control Termination until the
earliest to occur of (i) twelve (12) months, (ii) the expiration of the Participant’s eligibility for the continuation coverage under COBRA, and (iii) the date on which the Participant becomes eligible for health insurance
coverage in connection with new employment or self-employment (such period, the “COBRA Payment Period”). The Participant agrees to promptly notify the Company as soon as the Participant becomes eligible for health insurance
coverage in connection with new employment or self-employment. 

(ii)        Special Severance Payment. Notwithstanding
Section 4(c)(i) above, if at any time the Company determines, in its sole discretion, that the payment of the COBRA premiums would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Code or any statute or
regulation of similar effect (including, without limitation, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act and any other subsequent amendments), then in lieu of providing the
benefit set forth in Section 4(c)(i) above, the Company will instead pay the Participant, on the first day of each month of the remainder of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premiums for that month,
subject to applicable tax withholdings and deductions (such amount, the “Special Severance Payment”). 

(iii)        Lump Sum Payment Alternative.
Notwithstanding the provisions set forth in sections (i) and (ii) above, as an alternative to making the COBRA payments or the Special Severance Payments over the COBRA Payment Period, the Company or its successor shall have the right,
in its sole discretion, to pay a single lump sum payment equal to 140% of the full amount of the COBRA premiums necessary to continue the Participant’s COBRA coverage for the Participant and the Participant’s eligible dependents for the
entire COBRA Payment Period (the “Lump Sum COBRA Payment”). 

(iv)        Payment Schedule. The Company will
make the first payment under this Section 4(c) (and, in the case of the Special Severance Payment and the Lump Sum COBRA Payment, such payment will be made to the Participant, in a lump sum) within five (5) business days after the Release
Effective Date. Notwithstanding the foregoing, to the extent required to comply with Section 409A (as defined below), in the event that the Release Period spans two calendar years such that the Release Effective Date could occur in either of
such calendar years, the first payment to be made under this Section 4(c) will be made in the second calendar year (and, if applicable, will include any amounts that the Company otherwise would have paid through such date), with the balance of
the payments (if applicable) paid thereafter on the original schedule. 

  
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 (d)        Accelerated
Vesting. Subject to the Participant’s execution (and non-revocation) of the Release, upon a Change in Control Termination, the vesting and exercisability (if applicable) of all outstanding unvested
equity awards granted under the Company’s equity incentive plans that are held by a Participant on the date of the Change in Control Termination will be accelerated in full. 

(e)        Extension of Post-Termination Exercise Period. All
outstanding stock options and other equity awards which carry a right to exercise that are held by a Participant under the Company’s equity incentive plans as of the date of the Change in Control Termination will expire on the earlier of
(A) the original term of such outstanding equity awards as set forth in the applicable award agreement or the equity incentive plan, subject to earlier termination in the event of a Change in Control as set forth in the terms of the applicable
equity incentive plan and definitive agreement for such Change in Control transaction, and (B) the date which occurs on the first anniversary of the Participant’s Change in Control Termination. 

5.         CONDITIONS AND LIMITATIONS
ON BENEFITS. 
 (a)        Release.
To be eligible to receive any benefits under the Plan, a Participant must sign a general waiver and release in substantially the form attached hereto as EXHIBIT B, EXHIBIT C, or
EXHIBIT D, as appropriate (the “Release”), and such release must be executed (and not revoked) by the Participant in accordance with its terms, in each case within the Release Period. The Plan
Administrator, in its sole discretion, may modify the form of the required Release to comply with applicable law, and any such Release may be incorporated into a termination agreement or other agreement with the Participant. 

(b)        Prior Agreements; Certain Reductions. The Plan Administrator
will reduce a Participant’s benefits under the Plan by any other contractual severance benefits, and any other similar benefits payable to the Participant by the Company (or any successor thereto) that are due in connection with the
Participant’s Change in Control Termination and that are in the same form as the benefits provided under the Plan (e.g., equity award vesting credit). Without limitation, this reduction includes a reduction for any benefits required
pursuant to (i) a written employment, severance or equity award agreement with the Company and (ii) any Company policy or practice providing for the Participant to remain on the payroll for a limited period of time after being given notice
of the termination of the Participant’s employment, as a result of the termination of the Participant’s employment. The benefits provided under the Plan are intended to satisfy, to the greatest extent possible, and not to provide benefits
duplicative of, any and all contractual and collective agreement obligations of the Company in respect of the form of benefits provided under the Plan that may arise out of a Change in Control Termination, and the Plan Administrator will so construe
and implement the terms of the Plan. Reductions may be applied on a retroactive basis, with benefits previously provided being recharacterized as benefits pursuant to the Company’s other contractual obligations. The payments pursuant to the
Plan are in addition to, and not in lieu 

  
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of, any unpaid salary, bonuses or employee welfare benefits to which a Participant may be entitled for the period ending with the Participant’s Change in Control Termination. 

(c)        Mitigation. Except as otherwise specifically provided in the
Plan, a Participant will not be required to mitigate damages or the amount of any payment provided under the Plan by seeking other employment or otherwise, nor will the amount of any payment provided for under the Plan be reduced by any compensation
earned by a Participant as a result of employment by another employer or any retirement benefits received by such Participant after the date of the Participant’s termination of employment with the Company. 

(d)        Indebtedness of Participants. If a Participant is indebted to
the Company on the effective date of his or her Change in Control Termination, the Company reserves the right to offset the payment of any benefits under the Plan by the amount of such indebtedness. Such offset will be made in accordance with all
applicable laws. The Participant’s execution of the Participation Notice constitutes knowing written consent to the foregoing. 

(e)         Parachute Payments. 

(i)        Except as otherwise expressly provided in an agreement between a
Participant and the Company, if any payment or benefit the Participant would receive in connection with a Change in Control from the Company or otherwise (a “Payment”) would (i) constitute a “parachute payment”
within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the
Reduced Amount. The “Reduced Amount” will be either (A) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (B) the largest portion, up to and
including the total, of the Payment, whichever amount ((A) or (B)), after taking into account all applicable federal, state, provincial, foreign, and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable
marginal rate), results in the Participant’s receipt, on an after-tax basis, of the greatest economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a
reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction in the payments and/or benefits will occur in the manner that results in the greatest economic
benefit to the Participant, as determined in this paragraph; provided, that if more than one method of reduction will result in the same economic benefit, the portions of the Payment shall be reduced pro rata. 

(ii)        The professional firm engaged by the Company for general tax purposes as
of the day prior to the effective date of the Change in Control shall make all determinations required to be made under this Section 5(e). If the professional firm so engaged by the Company is serving as an accountant or auditor for the
individual, entity or group effecting the Change in Control, the Company shall appoint a nationally recognized independent registered public 

  
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accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such professional firm required to be made hereunder. Any
good faith determinations of the professional firm made hereunder shall be final, binding and conclusive upon the Company and the Participant. 

6.         TAX MATTERS. 

(a)        Application of Section 409A of the Code.
It is intended that all of the payments and benefits provided under the Plan satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code and the regulations and other guidance thereunder and any
state law of similar effect (collectively, “Section 409A”) provided under Treasury Regulations Sections 1.409A-1(b)(4),
1.409A-1(b)(5), and 1.409A-1(b)(9), and the Plan will be construed to the greatest extent possible as consistent with those provisions. To the extent not so exempt, the
Plan (and any definitions in the Plan) will be construed in a manner that complies with Section 409A, and will incorporate by reference all required definitions and payment terms. Notwithstanding anything to the contrary herein, to the extent
required to comply with Section 409A, a termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payments of amounts or benefits upon or following a termination of employment
unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of the Plan, references to a “resignation,” “termination, “termination of
employment” or like terms shall mean separation from service. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), a
Participant’s right to receive any installment payments under the Plan will be treated as a right to receive a series of separate payments and, accordingly, each installment payment under the Plan will at all times be considered a separate and
distinct payment. If the Plan Administrator determines that any of the payments upon a Separation from Service provided under the Plan (or under any other arrangement with the Participant) constitute “deferred compensation” under
Section 409A and if the Participant is a “specified employee” of the Company, as such term is defined in Section 409A(a)(2)(B)(i), at the time of his or her Separation from Service, then, solely to the extent necessary to avoid
the incurrence of the adverse personal tax consequences under Section 409A, the timing of the payments upon a Separation from Service will be delayed as follows: on the earlier to occur of (i) the date that is six (6) months and one
(1) day after the effective date of the Participant’s Separation from Service, and (ii) the date of the Participant’s death (such earlier date, the “Delayed Initial Payment Date”), the Company will
(A) pay to the Participant a lump sum amount equal to the sum of the payments upon Separation from Service that the Participant would otherwise have received through the Delayed Initial Payment Date if the commencement of the payments had not
been delayed pursuant to this Section 6(a), and (B) commence paying the balance of the payments in accordance with the applicable payment schedules set forth above. No interest will be due on any amounts so deferred. 

  
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 (b)        Withholding.
All payments and benefits under the Plan will be subject to all applicable deductions and withholdings, including, without limitation, obligations to withhold for federal, state, provincial, foreign and local income and employment taxes. 

(c)        Tax Advice. By becoming a Participant in the Plan, the
Participant agrees to review with Participant’s own tax advisors the federal, state, provincial, local, and foreign tax consequences of participation in the Plan. The Participant will rely solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the Participant (and not the Company) will be responsible for the Participant’s own tax liability that may arise as a result of becoming a Participant in the
Plan. 
 7.        REEMPLOYMENT. In the event of a Participant’s
reemployment by the Company during the period of time in respect of which severance benefits have been provided (that is, benefits as a result of a Change in Control Termination), the Company, in its sole and absolute discretion, may require such
Participant to repay to the Company all or a portion of such severance benefits as a condition of reemployment. 

8.        CLAWBACK; RECOVERY. All payments and severance
benefits provided under the Plan will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the
Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. In addition, the Board may impose such other clawback, recovery or recoupment provisions as
the Board determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired shares of common stock of the Company or other cash or property upon the occurrence of a termination of employment
for Cause. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for Good Reason, constructive termination, or any similar term under any plan of or agreement with the Company. 

9.         RIGHT TO INTERPRET PLAN;
AMENDMENT AND TERMINATION. 

(a)        Exclusive Discretion. The Plan Administrator (or the
Representative, as applicable) will have the exclusive discretion and authority to establish rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact,
interpretation, definition, computation or administration arising in connection with the operation of the Plan, including, without limitation, the eligibility to participate in the Plan, the amount of benefits paid under the Plan and any adjustments
that need to be made in accordance with the laws applicable to a Participant. The rules, interpretations, computations and other actions of the Plan Administrator (or the Representative, as applicable) will be binding and conclusive on all persons.

  
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 (b)        Amendment or
Termination. The Company reserves the right to amend or terminate the Plan, any Participation Notice issued pursuant to the Plan or the benefits provided hereunder at any time; provided, however, that no such amendment or termination will
apply to any Participant who would be adversely affected by such amendment or termination unless such Participant consents in writing to such amendment or termination. Any action amending or terminating the Plan or any Participation Notice will be
in writing and executed by a duly authorized officer of the Company. 

10.        NO IMPLIED EMPLOYMENT
CONTRACT. The Plan will not be deemed (i) to give any employee or other service provider any right to be retained in the employ or services of the Company, or (ii) to interfere with the right of the Company to discharge
any employee or other service provider at any time, with or without Cause, which right is hereby reserved. 

11.        LEGAL CONSTRUCTION. The Plan will be governed
by and construed under the laws of the State of Delaware (without regard to principles of conflict of laws), except to the extent preempted by ERISA. 

12.         CLAIMS, INQUIRIES AND
APPEALS. 
 (a)        Applications for Benefits and
Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the Plan Administrator in writing by an applicant (or his or her authorized representative). The
Plan Administrator is set forth in Section 14(d). 

(b)        Denial of Claims. In the event that any application for
benefits is denied in whole or in part, the Plan Administrator must provide the applicant with written or electronic notice of the denial of the application, and of the applicant’s right to review the denial. Any electronic notice will comply
with the regulations of the U.S. Department of Labor. The notice of denial will be set forth in a manner designed to be understood by the applicant and will include the following: 

(1)        the specific reason or reasons for the denial; 

(2)         references to the specific Plan provisions upon which the denial
is based; 
 (3)         a description of any additional information or
material that the Plan Administrator needs to complete the review and an explanation of why such information or material is necessary; and 

(4)        an explanation of the Plan’s review procedures and the time
limits applicable to such procedures, including a statement of the applicant’s right to bring a civil action 

  
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under Section 502(a) of ERISA following a denial on review of the claim, as described in Section 12(d). 

The notice of denial will be given to the applicant within ninety (90) days after the Plan Administrator receives the application, unless
special circumstances require an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required, written notice of the
extension will be furnished to the applicant before the end of the initial ninety (90) day period. 
 The notice of extension will
describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application. 

(c)        Request for a Review. Any person (or that person’s
authorized representative) for whom an application for benefits is denied, in whole or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within sixty (60) days after the application is denied. A
request for a review will be in writing and will be addressed to: 
 PhaseBio Pharmaceuticals, Inc. 

Attn: Corporate Secretary 
 One
Great Valley Parkway, Suite 30 
 Malvern, PA 19355-1423 

A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that
the applicant feels are pertinent. The applicant (or the applicant’s representative) will have the opportunity to submit (or the Plan Administrator may require the applicant to submit) written comments, documents, records, and other information
relating to his or her claim. The applicant (or his or her representative) will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim. The review
will take into account all comments, documents, records and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to whether such information was submitted or considered in the initial
benefit determination. 
 (d)        Decision on Review. The Plan
Administrator will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for
a review. If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty (60) day period. This notice of extension will describe the special circumstances necessitating the
additional time and the date by which the Plan Administrator is to render its decision on the review. The Plan Administrator will give prompt, 

  
 - 13- 

 
written or electronic notice of its decision to the applicant. Any electronic notice will comply with the regulations of the U.S. Department of Labor. In the event that the Plan Administrator
confirms the denial of the application for benefits, in whole or in part, the notice will set forth, in a manner designed to be understood by the applicant, the following: 

(1)        the specific reason or reasons for the denial; 

(2)         references to the specific Plan provisions upon which the denial
is based; 
 (3)         a statement that the applicant is entitled to
receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the applicant’s claim; and 

(4)        a statement of the applicant’s right to bring a civil action
under Section 502(a) of ERISA. 
 (e)        Rules and Procedures.
The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant
who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant’s own expense. 

(f)        Exhaustion of Remedies. No legal action for benefits under
the Plan may be brought until the applicant (i) has submitted a written application for benefits in accordance with the procedures described by Section 12(a), (ii) has been notified by the Plan Administrator that the application is denied,
(iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 12(c), and (iv) has been notified that the Plan Administrator has denied the appeal. Notwithstanding the
foregoing, if the Plan Administrator does not respond to an applicant’s claim or appeal within the relevant time limits specified in this Section 12, the applicant may bring legal action for benefits under the Plan pursuant to
Section 502(a) of ERISA. 
 13.        BASIS OF
PAYMENTS TO AND FROM PLAN. All benefits under the Plan will be paid by the Company. The Plan will be unfunded, and benefits hereunder will be paid only from the general
assets of the Company. 
 14.         OTHER PLAN
INFORMATION. 
 (a)        Employer and Plan
Identification Numbers. The Employer Identification Number assigned to the Company (which is the “Plan Sponsor” as that term is used in ERISA) by 

  
 - 14- 

 
the Internal Revenue Service is 03-0375697. The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the instructions of the Internal Revenue
Service is 503. 
 (b)        Ending Date for Plan’s Fiscal Year.
The date of the end of the fiscal year for the purpose of maintaining the Plan’s records is December 31. 

(c)        Agent for the Service of Legal Process. The agent for the
service of legal process with respect to the Plan is: 
 PhaseBio Pharmaceuticals, Inc. 

Attn: Corporate Secretary 
 One
Great Valley Parkway, Suite 30 
 Malvern, PA 19355-1423 

(d)        Plan    Sponsor and
Administrator. The “Plan Sponsor” and the “Plan Administrator” of the Plan is: 
 PhaseBio Pharmaceuticals, Inc. 

Attn: Plan Administrator of the Severance and Change in Control Benefit Plan 

One Great Valley Parkway, Suite 30 

Malvern, PA 19355-1423 

  The Plan Sponsor’s and Plan Administrator’s telephone number is (919) 544-6177.
The Plan Administrator is the named fiduciary charged with the responsibility for administering the Plan. 

15.        STATEMENT OF ERISA RIGHTS. 

Participants in the Plan (which is a welfare benefit plan sponsored by PhaseBio Pharmaceuticals, Inc.) are entitled to certain
rights and protections under ERISA. For purposes of this Section 15 and, under ERISA, Participants are entitled to: 
 Receive Information About the
Plan and Benefits 
 (a)        Examine, without charge, at the Plan
Administrator’s office and at other specified locations, such as worksites, all documents governing the Plan and a copy of the latest annual report (Form 5500 Series), if applicable, filed by the Plan with the U.S. Department of Labor and
available at the Public Disclosure Room of the Employee Benefits Security Administration; 

(b)        Obtain, upon written request to the Plan Administrator, copies of
documents governing the operation of the Plan and copies of the latest annual report (Form 5500 Series), if applicable, and an updated (as necessary) Summary Plan Description. The Plan Administrator may make a reasonable charge for the copies; and

  
 - 15- 

 (c)        Receive a summary
of the Plan’s annual financial report, if applicable. The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report. 

Prudent Actions By Plan Fiduciaries 

In addition to creating rights for Participants, ERISA imposes duties upon the people who are responsible for the operation of the employee
benefit plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of Participants and beneficiaries. No one, including a Participant’s employer, union (if applicable)
or any other person, may fire a Participant or otherwise discriminate against a Participant in any way to prevent the Participant from obtaining a Plan benefit or exercising a Participant’s rights under ERISA. 

Enforcement of Participant Rights 

If a claim for a Plan benefit is denied or ignored, in whole or in part, a Participant has a right to know why this was done, to obtain copies
of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. 
 Under ERISA, there are
steps a Participant can take to enforce the above rights. For instance, if a Participant requests a copy of Plan documents or the latest annual report from the Plan, if applicable, and does not receive them within thirty (30) days, the
Participant may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay the Participant up to $110 a day until the Participant receives the materials, unless the materials were not
sent because of reasons beyond the control of the Plan Administrator. 
 If a Participant has a claim for benefits that is denied or
ignored, in whole or in part, the Participant may file suit in a state or federal court. 
 If a Participant is discriminated against for
asserting the Participant’s rights, the Participant may seek assistance from the U.S. Department of Labor, or may file suit in a federal court. The court will decide who should pay court costs and legal fees. If a Participant is successful, the
court may order the person the Participant has sued to pay these costs and fees. If the Participant loses, the court may order the Participant to pay these costs and fees, for example, if it finds the Participant’s claim is frivolous. 

Assistance With Questions 

If a Participant has any questions about the Plan, the Participant should contact the Plan Administrator. If a Participant has any questions
about this statement or about the Participant’s rights under ERISA, or if the Participant needs assistance in obtaining documents from the Plan Administrator, the Participant should contact the nearest office of the Employee Benefits Security

  
 - 16- 

 
Administration, U.S. Department of Labor, listed in the Participant’s telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration,
U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. The Participant may also obtain certain publications about the Participant’s rights and responsibilities under ERISA by calling the publications hotline of the
Employee Benefits Security Administration. 
 16.        GENERAL
PROVISIONS. 
 (a)        Notices. Any notice,
demand or request required or permitted to be given by either the Company or a Participant pursuant to the terms of the Plan will be in writing and will be deemed given when delivered personally, when received electronically (including email
addressed to the Participant’s Company email account and to the Company email account of the Company’s Senior Corporate Counsel), or deposited in the U.S. Mail, First Class with postage prepaid, and addressed to the parties, in the
case of the Company, at the address set forth in Section 14(d), in the case of a Participant, at the address as set forth in the Company’s employment file maintained for the Participant as previously furnished by the Participant or such
other address as a party may request by notifying the other in writing. 

(b)        Transfer and Assignment. The rights and obligations of a
Participant under the Plan may not be transferred or assigned without the prior written consent of the Company. The Plan will be binding upon any surviving entity resulting from a Change in Control and upon any other person who is a successor by
merger, acquisition, consolidation or otherwise to the business formerly carried on by the Company without regard to whether or not such person or entity actively assumes the obligations hereunder. 

(c)        Waiver. Any party’s failure to enforce any provision or
provisions of the Plan will not in any way be construed as a waiver of any such provision or provisions, nor prevent any party from thereafter enforcing each and every other provision of the Plan. The rights granted to the parties herein are
cumulative and will not constitute a waiver of any party’s right to assert all other legal remedies available to it under the circumstances. 

(d)        Severability. Should any provision of the Plan be declared or
determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired. 

(e)        Section Headings. Section headings in the Plan are included
only for convenience of reference and will not be considered part of the Plan for any other purpose. 

17.        APPROVAL OF THE PLAN.
The Plan shall become effective on the date it is adopted and approved by the Compensation Committee of the Board of Directors of the Company. 

  
 - 17- 

 EXHIBIT A 

PHASEBIO PHARMACEUTICALS, INC. 

SEVERANCE AND CHANGE IN CONTROL BENEFIT
PLAN 
 PARTICIPATION NOTICE 

To:                      
               

Date:                      
            
 PhaseBio Pharmaceuticals, Inc. (the
“Company”) has adopted the PhaseBio Pharmaceuticals, Inc. Severance and Change in Control Benefit Plan (the “Plan”). The Company is providing you this Participation Notice to inform you that you have
been designated as a Participant in the Plan. A copy of the Plan document is attached to this Participation Notice. The terms and conditions of your participation in the Plan are as set forth in the Plan and this Participation Notice, which together
constitute the Summary Plan Description for the Plan. 
 By accepting participation, you acknowledge and agree that you are
entitled to benefits under the Plan only in the event of a termination of your employment that is a Change in Control Termination. 

By accepting participation, you represent that you have either consulted your personal tax or financial planning advisor about
the tax consequences of your participation in the Plan, or you have knowingly declined to do so. 
 Please return to the
Company’s Chief Business Officer a copy of this Participation Notice signed by you and retain a copy of this Participation Notice, along with the Plan document, for your records. 

 

			
	PHASEBIO PHARMACEUTICALS, INC.:
	
	 
	(Signature)

 
			
		
	By:	 	 

 
			
		
	Title:	 	 

 
			
	
	PARTICIPANT:
	
	 

 
			
	(Signature)

 
			
		
	By:	 	 

 
			
		
	Date:	 	 

  

  
 [Signature Page to
Participation Notice] 

 EXHIBIT B 

RELEASE AGREEMENT1 
 [EMPLOYEES AGE 40 OR
OVER; INDIVIDUAL TERMINATION] 
 I understand and agree completely to
the terms set forth in the PhaseBio Pharmaceuticals, Inc. Severance and Change in Control Benefit Plan (the “Plan”). 

I understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire
agreement between the Company, affiliates of the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company or an affiliate of the Company that is not expressly stated therein. Certain
capitalized terms used in this Release are defined in the Plan. 
 I hereby confirm my obligations under my Confidentiality
Agreement. 
 Except as otherwise set forth in this Release, I hereby generally and completely release the Company and its
affiliates, and their parents, subsidiaries, successors, predecessors and affiliates, and their partners, members, directors, officers, employees, stockholders, shareholders, agents, attorneys, predecessors, insurers, affiliates and assigns, from
any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date I sign this Release. This general
release includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with the Company and its affiliates, or their affiliates, or the termination of that employment; (b) all claims related to my
compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company and its affiliates, or their affiliates;
(c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of
public policy; and (e) all federal, state, provincial and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age Discrimination in Employment Act (as amended) (“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as amended),
[FOR PA EMPLOYEES, INCLUDE: and the Pennsylvania Human Relations Act.] [FOR CALIFORNIA EMPLOYEES, INCLUDE: and the California Fair Employment and Housing Act.] [FOR NEW JERSEY EMPLOYEES, INCLUDE: the New Jersey Law Against
Discrimination and the New Jersey Conscientious Employee Protection Act.] 
 Notwithstanding the foregoing, I understand
that the following rights or claims are not included in my Release: (a) any rights or claims for indemnification I may have pursuant to any 
  

 

1 The release agreements provide alternative provisions to be included based on state of residence of a
Participant. 

 
written indemnification agreement with the Company or its affiliate to which I am a party; the charter, bylaws, or operating agreements of the Company or its affiliate; or under applicable law;
or (b) any rights which cannot be waived as a matter of law. In addition, I understand that nothing in this Release prevents me from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission
or the Department of Labor, except that I hereby waive my right to any monetary benefits in connection with any such claim, charge or proceeding. I hereby represent and warrant that, other than the claims identified in this paragraph, I am not aware
of any claims I have or might have that are not included in the Release. 
 I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA, and that the consideration given under the Plan for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled.
I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my waiver and release do not apply to any rights or claims that may arise after the date I sign this Release; (b) I should consult with an
attorney prior to signing this Release (although I may choose voluntarily not do so); (c) I have twenty-one (21) days to consider this Release (although I may choose voluntarily to sign this Release
earlier); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written notice to an officer of the Company; and (e) this Release will not be effective until the date upon which the revocation
period has expired, which will be the eighth day after I sign this Release. 
 I hereby represent that I have been paid all
compensation owed and for all hours worked; I have received all the leave and leave benefits and protections for which I am eligible pursuant to the Family and Medical Leave Act, or otherwise; and I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation claim. 

I represent that I am not aware of any claim by me other than the claims that are released by this Release. I acknowledge that
I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of this Release and which, if known or suspected at the time of entering into this Release, may
have materially affected this Release and my decision to enter into it. Nevertheless, I hereby waive any right, claim or cause of action that might arise as a result of such different or additional claims or facts [INCLUDE FOR CA EMPLOYEES ONLY
and I hereby expressly waive any and all rights and benefits confirmed upon me by the provisions of California Civil Code Section 1542, which provides as set forth below, as well as under any other statute or common law principles of
similar effect: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN
HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”] 

 I acknowledge that to become effective, I must sign and return this Release
to the Company so that it is received not later than twenty-one (21) days following the date it is provided to me. 

 

			
	PARTICIPANT:
	
	 
	(Signature)

 
			
		
	By: 	 	 

 
			
		
	Date:	 	 

 EXHIBIT C 

RELEASE AGREEMENT 

[EMPLOYEES AGE 40 OR OVER; GROUP TERMINATION]

 I understand and agree completely to the terms set forth in the PhaseBio Pharmaceuticals, Inc. Severance and
Change in Control Benefit Plan (the “Plan”). 
 I understand that this Release, together
with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the
Company or an affiliate of the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 

I hereby confirm my obligations under my Confidentiality Agreement. 

Except as otherwise set forth in this Release, I hereby generally and completely release the Company and its affiliates, and
their parents, subsidiaries, successors, predecessors and affiliates, and its and their partners, members, directors, officers, employees, stockholders, shareholders, agents, attorneys, predecessors, insurers, affiliates and assigns, from any and
all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date I sign this Release. This general release
includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with the Company and its affiliates, or their affiliates, or the termination of that employment; (b) all claims related to my
compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company and its affiliates, or their affiliates;
(c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of
public policy; and (e) all federal, state, provincial and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age Discrimination in Employment Act (as amended) (“ADEA”), or the federal Employee Retirement Income Security Act of 1974 (as amended),
[FOR PA EMPLOYEES, INCLUDE: and the Pennsylvania Human Relations Act.] [FOR CALIFORNIA EMPLOYEES, INCLUDE: and the California Fair Employment and Housing Act.] [FOR NEW JERSEY EMPLOYEES, INCLUDE: the New Jersey Law Against
Discrimination and the New Jersey Conscientious Employee Protection Act.] 

 Notwithstanding the foregoing, I understand that the following rights or
claims are not included in my Release: (a) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company or its affiliate to which I am a party; the charter, bylaws, or operating
agreements of the Company or its affiliate; or under applicable law; or (b) any rights which cannot be waived as a matter of law. In addition, I understand that nothing in this Release prevents me from filing, cooperating with, or participating
in any proceeding before the Equal Employment Opportunity Commission, or the Department of Labor, except that I hereby waive my right to any monetary benefits in connection with any such claim, charge or proceeding. I hereby represent and warrant
that, other than the claims identified in this paragraph, I am not aware of any claims I have or might have that are not included in the Release. 

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA, and that the
consideration given under the Plan for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the
ADEA, that: (a) my waiver and release do not apply to any rights or claims that may arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release (although I may choose voluntarily not to do
so); (c) I have forty-five (45) days to consider this Release (although I may choose voluntarily to sign this Release earlier); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written
notice to an office of the Company; (e) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth day after I sign this Release; and (f) I have received with this Release a
detailed list of the job titles and ages of all employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification or organizational unit who were not terminated. 

I hereby represent that I have been paid all compensation owed and for all hours worked; I have received all the leave and
leave benefits and protections for which I am eligible pursuant to the Family and Medical Leave Act, or otherwise; and I have not suffered any on-the-job injury for
which I have not already filed a workers’ compensation claim. 
 [I represent that I am not aware of any claim
by me other than the claims that are released by this Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of this Release
and which, if known or suspected at the time of entering into this Release, may have materially affected this Release and my decision to enter into it. Nevertheless, I hereby waive any right, claim or cause of action that might arise as a result of
such different or additional claims or facts [INCLUDE FOR CA EMPLOYEES ONLY: and I hereby expressly waive any and all rights and benefits confirmed upon me 

 
by the provisions of California Civil Code Section 1542, which provides as set forth below, as well as under any other statute or common law principles of similar effect: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”] 

I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later
than forty-five (45) days following the date it is provided to me. 
  

			
	PARTICIPANT:
	
	 
	(Signature)

 
			
		
	By:	 	 

 
			
		
	Date:	 	 

 EXHIBIT D 

RELEASE AGREEMENT 

[EMPLOYEES UNDER AGE 40] 

I understand and agree completely to the terms set forth in the PhaseBio Pharmaceuticals, Inc. Severance and Change in
Control Benefit Plan (the “Plan”). 
 I understand that this Release, together with the
Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company
or an affiliate of the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 

I hereby confirm my obligations under my Confidentiality Agreement. 

Except as otherwise set forth in this Release, I hereby generally and completely release the Company and its affiliates, and
their parents, subsidiaries, successors, predecessors and affiliates, and its and their partners, members, directors, officers, employees, stockholders, shareholders, agents, attorneys, predecessors, insurers, affiliates and assigns, from any and
all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date I sign this Release. This general release
includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with the Company and its affiliates, or their affiliates, or the termination of that employment; (b) all claims related to my
compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company and its affiliates, or their affiliates;
(c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of
public policy; and (e) all federal, state, provincial and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990 (as amended), or the federal Employee Retirement Income Security Act of 1974 (as amended), [FOR PA EMPLOYEES, INCLUDE: and the Pennsylvania Human Relations Act.] [FOR CALIFORNIA
EMPLOYEES, INCLUDE: and the California Fair Employment and Housing Act.] [FOR NEW JERSEY EMPLOYEES, INCLUDE: the New Jersey Law Against Discrimination and the New Jersey Conscientious Employee Protection Act.] 

Notwithstanding the foregoing, I understand that the following rights or claims are not included in my
Release:    (a) any rights or claims for indemnification I may have 

 
pursuant to any written indemnification agreement with the Company or its affiliate to which I am a party; the charter, bylaws, or operating agreements of the Company or its affiliate; or under
applicable law; or (b) any rights which cannot be waived as a matter of law. In addition, I understand that nothing in this Release prevents me from filing, cooperating with, or participating in any proceeding before the Equal Employment
Opportunity Commission, or the Department of Labor, except that I hereby waive my right to any monetary benefits in connection with any such claim, charge or proceeding. I hereby represent and warrant that, other than the claims identified in this
paragraph, I am not aware of any claims I have or might have that are not included in the Release. 
 I hereby represent
that I have been paid all compensation owed and for all hours worked; I have received all the leave and leave benefits and protections for which I am eligible pursuant to the Family and Medical Leave Act, or otherwise; and I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation claim. 

[I represent that I am not aware of any claim by me other than the claims that are released by this Release. I
acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of this Release and which, if known or suspected at the time of entering into
this Release, may have materially affected this Release and my decision to enter into it. Nevertheless, I hereby waive any right, claim or cause of action that might arise as a result of such different or additional claims or facts [INCLUDE FOR
CA EMPLOYEES ONLY: and I hereby expressly waive any and all rights and benefits confirmed upon me by the provisions of California Civil Code Section 1542, which provides as set forth below, as well as under any other statute or common law
principles of similar effect: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”] 

I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later
than fourteen (14) days following the date it is provided to me. 

 
			
	PARTICIPANT:
	
	 
	(Signature)

 
			
		
	By:	 	 

 
			
		
	Date:EX-10.7

 Exhibit 10.7 
  

 
 One Great Valley Parkway ◾ Suite 30 ◾ Malvern, Pa. ◾ 19355 ◾ 
 November 19, 2012 

Mr. Jonathan Mow 
 14130 Tierra Bonita Road 

Poway, CA 92064 
 Dear Jonathan, 

I am excited to offer you the position of Chief Business Officer of PhaseBio Pharmaceuticals, Inc. This offer is contingent upon successful completion of the hiring
process, including final approval by the Compensation Committee of the Board of Directors, which must approve the compensation for officers. As you know, we are impressed by your skills and are looking forward to working with you. 

The compensation package for the position includes: 
  

	 	•	 	Annual salary of $270,000 

	 	•	 	Eligibility for an annual bonus up to 20% of your base salary, based upon achievement of specified company and/or individual goals 

	 	•	 	Eligibility for a further bonus of $250,000 if the company completes a transaction of the type described in Article II, Sections 3(b)(1) or 3(b)(2), of the Fourth Amended and Restated Certificate of Incorporation (a
“Liquidation Event”) on or before March 31, 2014. In the event of a Liquidation Event, the board of directors will cause company to seek in good faith to obtain approval of the bonus and any other payments that are considered
“parachute payments” under section 280G of the Internal Revenue Code, in accordance with the shareholder approval requirements of the regulations under section 280G, subject to your taking such actions as may be necessary or appropriate
under such regulations. 

	 	•	 	Subject to approval by the Board, you will be granted an option to purchase shares of PhaseBio Pharmaceuticals, Inc., common stock equal to 1.5% of the company’s outstanding shares at an exercise price equal to the
fair market value of the stock at the date of grant. The option with respect to shares equal to 1% of the outstanding shares will vest 25% after one year of employment, with the balance vesting monthly over the subsequent three (3) years, so
long as you continue to be employed by PhaseBio. In the event of a Liquidation Event, the option will become fully vested if the acquiring company does not offer you a comparable position (no diminution of duties, the same or greater base salary,
and at the same geographic location), or if the acquiring company terminates your employment without cause, or you terminate for “good reason” (reduction in base salary, diminution of duties or geographic relocation), within one year after
the Liquidation Event. The option with respect to shares equal to 0.5% of the outstanding shares will vest upon consummation of a Liquidation Event with a Net Present Value of at least $350 million, so long as you continue to be employed by
PhaseBio. For purposes of determining Net Present Value, we will use a 15% cost of capital and risk adjustment factors of 90% for entry into a Phase 3 trial, 75% for an NDA, 65% for all commercial milestones, and 50% on any residual royalties based
on the lower of: i) the Company’s forecast or ii) a forecast developed in the context of a fairness opinion by an investment bank. 

	 	•	 	In lieu of the option for shares equal to 1 % of the outstanding shares, you may specify upfront a number of shares that you wish to purchase as restricted stock, vesting as per the vesting schedule specified
above. The 

 Page 1 of 3 

	 	purchase price will equal the then fair market value of the stock at the date of grant. The balance of the 1%, if any, will be granted as an option. 

	 	•	 	You will receive a severance payment equal to six months’ base salary (a) in the event of a Liquidation Event, if the acquiring company does not offer you a comparable position (no diminution of duties, the
same or greater base salary, and at the same geographic location), or if the acquiring company terminates your employment without cause, or you terminate for “good reason” (reduction in base salary, diminution of duties or geographic
relocation), within one year after the Liquidation Event, or (b) in the event your employment is terminated without cause at any time. The severance pay will be subject to your execution of a release of claims and will be paid in a lump sum
payment 30 days after your termination date. You must provide written notice of termination for good reason within 30 days after the event constituting good reason, the acquiring company will have 30 days to cure the good reason event, and if it
does not cure the event, you termination date will occur within five days after the end of the cure period. 

	 	•	 	Health, prescription and vision Insurance with Independence Blue Cross (as approved by the carrier), effective on the date of employment; employees currently contribute 20% for employee coverage, and 20% for coverage
for eligible dependents on a pre-tax basis 

	 	•	 	Dental insurance; currently the policy for the employee only is paid in its entirety by the Company, and the employee currently pays 20% for coverage for eligible dependents 

	 	•	 	Long-term disability and life insurance (effective 30 days after date of employment); currently this is paid entirely by the Company (employee only) 

	 	•	 	Eligibility to participate in the PhaseBio 401 (k) Plan 

	 	•	 	Twenty (20) days paid vacation (prorated for employment of less than 1 year), two (2) personal days and nine (9) holidays per calendar year 

	 	•	 	Sick leave of up to forty (40) hours/five (5) days per calendar year, (prorated for employment of less than 1 year) 

Please note the above health and other employee benefits are subject to change at the discretion of the company, and are subject to underwriting approval of coverage by
the carriers. 
 Your employment with PhaseBio Pharmaceuticals, Inc. will begin effective December 3, 2012. Your principal place of employment will be located at
your home office address in Poway, CA. You will be expected to spend at least one week per month at the Company’s headquarters in Malvern, PA, with your travel expense reimbursed in accordance with company policy. The Company will withhold and
remit California payroll taxes on your behalf. 
 On your first day of employment, please provide appropriate documentation for the completion of your new hire forms,
including proof that you are presently eligible to work in the United States for 1-9 purposes. As required by law, we must have the appropriate documentation within 3 days of hire in accordance with the terms
of the Immigration Reform and Control Act. 
 This offer of employment is contingent upon signed acceptance of the PhaseBio
Confidentiality/Non-Compete Agreement, which will be modified to limit the non-competition covenant to the extent required by California law. 

Employment with PhaseBio is at-will and either party can terminate the relationship at any time with or without cause and with
or without written notice. 
 You acknowledge that this offer letter represents the entire agreement between you and PhaseBio Pharmaceuticals, Inc. and that no verbal
or written agreements, promises or representations that are not specifically stated in this offer, are or will be binding upon PhaseBio Pharmaceuticals. 

Page 2 of 3 

 If you are in agreement with the above outline, please sign below. This offer is in effect for five (5) business
days. We look forward to having your join our company, and we know that you will be an excellent addition to our team. 
  

							
	Signatures	  		 	
				
		 	/s/ Christopher Prior	  		 	19th November, 2012,
		 	Christopher Prior, Ph.D.	  		 	Date
				
		 	/s/ Jonathan Mow	  		 	19 Nov. 2012
		 	Jonathan Mow	  		 	Date

 Page 3 of 3 

 

 
 One Great Valley Parkway • Suite 30 • Malvern, Pa. • 19355 • 

March 31, 2014 
 Mr. Jonathan Mow 

14130 Tierra Bonita Road 
 Poway, CA 92064 

Dear Jonathan, 
 I am pleased to inform you that, by Unanimous
Written Consent dated March 14, 2014, the Board of Directors has approved an amendment to your compensation package as described in the letter agreement dated November 19, 2012, between PhaseBio and you. In the fourth bullet point, the sentence:

 The option with respect to shares equal to 0.5% of the outstanding shares will vest upon consummation of a Liquidation Event with a Net
Present Value of at least $350 million, so long as you continue to be employed by PhaseBio. 
 Is deleted in its entirety and replaced by: 

The option with respect to shares equal to 0.5% of the outstanding shares will vest upon consummation of a Liquadation Event with a Net
Present Value of at least $200 million, so long as you continue to be employed by PhaseBio. 
 Except as they may have previously been modified by the
Change in Control Severance Benefit Plan that was established on May 17, 2013, all other terms and conditions of the November 19, 2012, letter agreement are unchanged and remain in effect. 

Sincerely, 
 /s/ Christopher Prior, Ph.D. 

Christopher Prior, Ph.D. 
 President and CEO

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