Document:

Exclusive Option Agreement

 Exhibit 10.27 
  

	[*]	Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

 This Exclusive Option Agreement (“the Agreement”)
is made and effective as of the date of last signing (the “Effective Date’) by and between the University of Cincinnati, a state institution of higher education organized under Section 3361 of the Ohio Revised Code, having a principal
place of business at Cincinnati, OH 45221, USA (hereinafter “UC”) and ARCA biopharma, Inc, a corporation having its principal office at 8001 Arista Place, Suite 200, Broomfield, Colorado,80021 USA (hereinafter “ARCA”).

 WHEREAS, UC is the owner of certain Intellectual Property Rights and Know-How relating to polymorphisms of the alpha2
and beta adrenergic receptors, as more specifically described on Exhibit A hereto (the “Receptor Technology”), that is currently licensed to CardioDx, Inc. under those certain license agreements between CardioDx and UC dated
August 15, 2004, as amended (the “Alpha2 License”) and August 10, 2004, as amended (the “Beta License”) (collectively, the “Receptor Licenses”). 
 WHEREAS, ARCA is interested in obtaining an option to exclusively license the Receptor Technology, in the event that either or both
of the Alpha2 and Beta Licenses terminate, for whatever reason; and 
 WHEREAS, UC is willing to grant such option for
the Receptor Technology. 
 NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein,
the parties hereto agree as follows: 
 SECTION 1. DEFINITIONS 
 For the purposes of this Agreement, the following words and phrases shall have the following meanings: 
  

	1.1	“Know-How” shall mean, and be limited to, UC’s proprietary information which has been created, developed, or fixed in any tangible medium of expression
and which is directly related to the use of, or desirable for the practice of, the Intellectual Property Rights. 

  

	1.2	“Fields of Use” shall mean all fields. 

  

	1.3	“Territory” shall mean worldwide. 

 SECTION 2. OPTION 
  

	2.1	 UC hereby grants ARCA an exclusive Option to license the Receptor Technology and associated Know-How for the Fields of Use in the Territory (the
“ARCA License”). The terms of the ARCA License shall be as set forth on Exhibit B hereto. The Option Period will begin upon the Effective Date, and shall terminate the later of (i) one year, (ii) 30 days after written notice from
UC that one or both of the Receptor Licenses has terminated within such one year period, or (iii) 30 days after written notice from UC that all of the patents associated with one or both of the Receptor Licenses has been removed from its
respective

	 	 
license through the operation of Article 8.4 of the Receptor Licenses. In the event that the Alpha2 and Beta Licenses do not terminate at the same time, ARCA shall have a separate Option for each
Receptor License. 

  

	2.2	UC shall give written notice to ARCA of the termination of either or both of the Receptor Licenses within the one year period after the Effective Date, not later than
30 days after termination. After receiving such notice, ARCA shall have the remainder of the Option Period to elect to exercise the Option by giving written notice to UC that it is electing to license the Receptor Technology covered under either or
both of the Alpha 2 and Beta Licenses. Upon receipt of such notice by UC, the parties shall negotiate in good faith to reach agreement on a definitive license agreement for the ARCA License, containing the terms set forth in Exhibit B hereto, and
such other provisions as would be commercially standard. 

 SECTION 3. CONSIDERATION 
  

	3.1	As consideration for the Option granted ARCA in Section 3, ARCA will assume [*] reasonable costs of prosecuting (i) [*] patent of the Receptor Technology IP
Portfolio which is [*], and (ii) the Receptor Technology IP Portfolio that [*]. At UC’s request, ARCA will also assume responsibility for such prosecution, by counsel of its own selection, reasonably acceptable to UC. If it assumes
responsibility for prosecution, ARCA shall consult with UC as to the preparation, filing, prosecution and maintenance of such patent applications and patents and shall incorporate UC’s input with respect to patent prosecution strategy and
content of any proposed filings. To facilitate UC’s input on such matters, ARCA shall furnish to UC copies of documents relating to any such preparation, filing, prosecution or maintenance sufficiently in advance of the filing thereof to permit
UC’s review and ARCA’s incorporation of any comments with respect thereto. 

 SECTION 4.
CONFIDENTIALITY 
  

	4.1	In connection with this Agreement, it is acknowledged that each Party may disclose its confidential and proprietary information to the other Party. Any such information
that is first disclosed in writing, or if first disclosed orally is later transmitted in written form, and is labeled as “Confidential” is referred to herein as “Confidential Information.” 

  

	4.2	Each Party hereto shall maintain the Confidential Information of the other Party in confidence, and shall not disclose or otherwise communicate such Confidential
Information to others during the term of this Agreement and for a period of three (3) years following termination, or use it for any purpose except pursuant to, and in order to carry out, the terms and objectives of this Agreement, and hereby
agrees to exercise every reasonable precaution to prevent the unauthorized disclosure of such Confidential Information by any of its directors, officers, employees, consultants or agents. 

  

	4.3	The provisions of section 6.2 shall not apply to any Confidential Information disclosed hereunder which: 

  

	 	4.3.1.	either was or will be lawfully disclosed to the recipient by an independent third party rightfully in possession of the Confidential Information; or

  

					
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	 	4.3.2.	is public knowledge prior to or after its disclosure other than through acts of omission attributable to recipient; or 

  

	 	4.3.3	was independently known to the recipient prior to receipt from the disclosing party, as demonstrably documented in contemporaneous written records of the recipient; or

  

	 	4.3.4	is required to be disclosed by any of the parties to comply with applicable laws, to defend or prosecute litigation or to comply with governmental regulations, provided
that such party promptly notifies the other party so as to permit such party to take action to avoid and/or minimize the degree or such disclosure. 

 SECTION 5. TERMINATION 
  

	5.1	UC may terminate this Option Agreement upon thirty (30) days prior written notice if ARCA is in default of any of its obligations under this Agreement, if such
default shall continue after such 30-day period, or is incapable of being cured within such 30 day period. UC may terminate this Option Agreement by written notice if ARCA dissolves, liquidates, ceases to carry on business, commits any act of
bankruptcy, becomes insolvent, is unable to pay its debts as they become due, files a petition under any bankruptcy or insolvency act, or has any such petition filed against it which is not dismissed within sixty (60) days. ARCA may terminate
this Option Agreement at any time upon thirty (30) days prior written notice to UC; in such event, ARCA shall pay UC any amounts due through the end of such 30-day notice period. 

 SECTION 6. GENERAL 
  

	6.1	Assignment: ARCA may not assign its rights in this Agreement without written consent of UC, which shall not be unreasonably withheld. 

 

	6.2	Communications to Company concerning this Agreement should be addressed to: 

 ARCA biopharma, Inc. 
 8001 Arista Place, Suite 200 
 Broomfield, CO 80021 
 Fax: 720-208-9261 
 Attn: Chief Executive Officer 
  

	6.3	Communications to UC concerning this Agreement should be addressed to: 

 Director of Intellectual Property 
 University of Cincinnati 
 Office of Intellectual Property 
 51 Goodman Dr., Suite 240

 PO Box 210829 
 Cincinnati, OH 45221-0829 
 Fax: 513-558-2296 
  

					
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	6.4	Merger and Modification of Agreement: The terms and provisions contained in this Agreement constitute the entire Agreement between the parties and shall
supersede all previous communications, representations, agreements or understandings, either oral or written, between the parties hereto with respect to the subject matter hereof, and no agreement or understanding varying or extending this Agreement
will be binding upon either party hereto, unless in writing which specifically refers to this Agreement, signed by duly authorized officers or representatives of the respective parties, and the provisions of this Agreement not specifically amended
thereby shall remain in full force and effect according to their terms. 

  

	6.5	Severability: The provisions and clauses of this Agreement are severable, and in the event that any provision or clause is determined to be invalid or
unenforceable under any controlling body of the law, such invalidity or unenforceability will not in any way affect the validity or enforceability of the remaining provisions and clauses hereof. 

  

	6.6	Scope: This Agreement does not establish a joint venture, agency or partnership between the Parties, nor create an employer - employee relationship.

  

	6.7	Preservation of Immunity: The Parties agree that nothing in this Agreement is intended or shall be construed as a waiver, either express or implied, of any of
the immunities, rights, benefits, defenses or protections provided to UC under governmental or sovereign immunity laws from time to time applicable to UC, including, without limitation the Eleventh Amendment to the United States Constitution.

  

	6.8	Headings: Headings are included herein for convenience only and shall not be used to construe this Agreement. 

 IN WITNESS WHEREOF the parties hereto have caused this Agreement, which is effective on the date of the last to sign below, to be executed in
duplicate by their respective duly authorized officers. 
  

									
	UC:	 		 	ARCA:
					
	By:	 	 /s/ Geoffrey Pinski
	 		 	By:	 	 /s/ Christopher D. Ozeroff

	Name:	 	 Geoffrey Pinski
	 		 	Name:	 	 Christopher D. Ozeroff

	Title:	 	 Associate Director
	 		 	Title:	 	 Executive Vice President

	Date:	 	 December 2, 2009
	 		 	Date:	 	 December 2, 2009

  

					
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 Exhibit A 
 RECEPTOR TECHNOLOGY 
 The Receptor Technology consists of the
following Alpha 2c, Beta and Combination Patent Rights and associated Know-How: 
 Alpha2c Patent Rights means Invention Disclosure
number 100-012, entitled “a 2a and “a 2c adrenergic receptor polymorphisms”; Invention disclosure number 100-061, entitled “a 2b adrenergic receptor polymorphisms”; U.S. Patent Application Serial Number 60/409,167 filed September 9, 2002, U.S. Patent Application Serial Number 10/638,714 filed on August 11, 2003, U.S.
Patent Application Serial Number 09/692,077 filed October 19, 2000, and Patent Application 10/001,073 filed November 1, 2001, U.S. Patent Application Serial Number 11/232,805 filed September 22, 2005, PCT Patent Application Number
PCT/US/0112575, filed April 17, 2001; “Polymorphisms and Haplotypes of the Alpha2C Adrenergic Receptor Gene”; U.S. Patent Application Serial Number 60/583,846, filed June 29, 2004; U.S. Patent Application Serial Number
11/571,151, filed December 21, 2006; European Patent Application Number 57891517, filed June 29, 2005, PCT Patent Application Number PCT/US/2005023293 filed June 29, 2005; any letters patent issued thereon, and any foreign
counterparts thereof, as well as all continuations, continuations-in-part, divisions, and renewals thereof, all patents which may be granted thereon, and all or reissues, reexaminations, extension, patents of additions and patents of importation
thereof. 
 Beta Patent Rights means Invention Disclosure number 97-031, entitled “b-adrenergic receptor polymorphisms”; Invention Disclosure number 103-048, entitled “b 1-adrenergic Receptor Polymorphisms Predict Response to Carvedilol
in Heart Failure;” U.S. Patent 6,498,009 and U.S. Patent Application Serial Number 60/502,837, filed September 12, 2003, Canadian Patent Application Serial Number 2,305,675, filed October 9, 1998, PCT Patent Application Number
PCT/US/98/21227 filed October 9, 1998; “Methods for Diagnosis, Prediction and Treatment of Heart Failure and Other Cardiac Conditions Based on Beta1-Adrenergic Receptor Polymorphisms”, U.S. Patent Application Serial Number 10/941,063
filed September 13, 2004; “Methods for Risk Assessment, Survival Prediction and Treatment of Heart Failure and Other Conditions Based on Adrenergic Receptor Polymorphisms”; Australian Patent Application Number 2004272102, filed
September 13, 2004, Canadian Patent Application Number 2,538,222, filed September 13, 2004, European Patent Application Number 48161814, filed September 13, 2004, PCT Patent Application Number PCT/US/2004029838, any letters patent
issued thereon, and any foreign counterparts thereof, as well as all continuations, continuations-in-part, divisions, and renewals thereof, all patents which may be granted thereon, and all or reissues, reexaminations, extensions, patents of
additions and patents of importation thereof. 
 Combination Patent Rights means “Methods for Cardiovascular Disease Assessment in
an Individual”; U.S. Patent Application Serial Number 10/527,263, filed March 9, 2005, Canadian Patent Application Number 2498329, filed September 9, 2003, European Patent Application Number 37946662, filed September 9, 2003,
Japanese Patent Application Number 2004534771, filed September 9, 2003; and PCT Patent Application Number PCT/US/0328135, filed September 9, 2003, any letters patent issued thereon, and any foreign counterparts thereof, as well as all
continuations, continuations-in-part, divisions, and renewals thereof, all patents which may be granted thereon, and all or reissues, reexaminations, extensions, patents of additions and patents of importation thereof. 
  

					
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 Exhibit B 
 The terms of the ARCA License shall include the following: 
 [*] 
  

	[*]	Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended. 

  

					
		 	6 of 6Employment Agreement

 Exhibit 10.53 

 

 

 February 11, 2009 
 Patrick Wheeler 
 430 Bellaire Court 
 Broomfield, CO 80020 
  

	Re:	Employment Agreement 

 Dear Pat: 
 ARCA biopharma, Inc. (the “Company”) is pleased to offer you the following agreement regarding your employment as the Company’s Senior
Vice President, Finance and certain severance benefits (the “Agreement”). This Agreement amends, supersedes and terminates any and all prior agreements or understandings with respect to your employment terms and severance benefits;
provided, however, that, except as otherwise expressly provided, the Employee Intellectual Property Agreement (as defined below) is not modified or terminated hereby, and shall continue in full force and effect. 
 1. Employment. The Company hereby agrees to employ you and you hereby accept such employment upon the terms and conditions set forth
herein and agree to perform such duties as are commensurate with your office as prescribed by the Board of Directors of the Company. Your start date will be effective as of January 27, 2009 (the “Start Date”). 
 2. Duties. You shall render exclusive, full-time services to the Company as its Senior Vice President, Finance and shall report to
the Company’s President and Chief Executive Officer. Your responsibilities, title, working conditions, duties, reporting relationship and/or any other aspect of your employment may be changed, added to or eliminated during your employment at
the sole discretion of the Company. During the term of your employment hereunder, you shall devote your best efforts and your full business time, skill and attention to the performance of your duties on behalf of the Company. 
 3. Compensation. For all services rendered and to be rendered hereunder, and for the other agreements by you contained herein, the
Company agrees to pay you, and you agree to accept a salary of $16,063.34 per month. Such salary will be subject to review and adjustment on an annual basis in accordance with the procedures set forth by the Company’s Board of Directors or
Compensation Committee of the Board of Directors. Any such salary shall be payable pursuant to the Company’s payroll procedures which may be changed by the Company from time to time and shall be subject to such deductions or withholdings as the
Company is required to make pursuant to law, or by further agreement with you. In addition to your base salary, you may be eligible to receive a bonus pursuant to an employee bonus plan as approved by the Board of Directors in its sole discretion.
You will also be eligible to participate in the Company’s benefit plans based on the eligibility criteria for each of those plans as they become available, which plans will remain subject to change from time to time at the Company’s
discretion. 
  

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 4. Termination. You and the Company each acknowledge that your employment
relationship with the Company is at-will and that either party has the right to terminate your employment with the Company at any time for any reason whatsoever, with or without cause or advance notice pursuant to the following provisions.

 (a) Termination by Death or Disability. In the event you shall die during the period of your employment hereunder or
become permanently disabled, which shall mean you are unable to perform each of the essential duties of your position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be
expected to last for a continuous period of not less than twelve (12) months, your employment and the Company’s obligation to make payments hereunder shall terminate on the date of your death, or the date upon which, in the sole reasonable
determination of the Board of Directors, you are determined to be permanently disabled. The Company’s ability to terminate you as a result of any disability shall be to the extent permitted by state and/or federal law. 
 (b) Voluntary Resignation. In the event you voluntarily resign from your employment with the Company (other than for Good Reason as
defined below), the Company’s obligation to make payments hereunder shall cease upon such resignation, and you shall not be entitled to any severance pay, accelerated vesting, pay in lieu of notice or any other such compensation, except the
Company shall pay you (i) any salary earned but unpaid prior to the resignation and all accrued but unused vacation, (ii) if applicable, all commissions rightfully earned prior to your resignation and (iii) any business expenses
incurred by you in connection with your performance of your duties, according to the policies of the Company, that were incurred but not reimbursed as of the date of resignation. Vesting of any of your stock options outstanding on the date of
resignation shall cease on the date of resignation. 
 (c) Termination for Cause. In the event you are terminated by the
Company for Cause (as defined below), the Company’s obligation to make payments hereunder shall cease upon the date of receipt by you of written notice and explanation of such termination (the “Date of Termination”), and you
shall not be entitled to any severance pay, accelerated vesting, pay in lieu of notice or any other such compensation, except the Company shall pay you (i) any salary earned but unpaid prior to the Date of Termination and all accrued but unused
vacation, (ii) if applicable, all commissions rightfully earned prior to the Date of Termination and (iii) any business expenses incurred by you in connection with your performance of your duties, according to the policies of the Company,
that were incurred but not reimbursed as of the Date of Termination. Vesting of any stock options outstanding on the Date of Termination shall cease on the Date of Termination. 
 (d) Termination by the Company Without Cause or Resignation for Good Reason. Subject to the terms and conditions of this Agreement,
the Company will provide you with Severance Benefits (as defined below) if (i) the Company terminates your employment without Cause or (ii) you resign your employment for Good Reason. You will not be entitled to receive any Severance
Benefits if (A) the Company terminates your employment for Cause, (B) you resign from your employment with the Company other than for Good Reason, or (C) in

  

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the event of your death or permanent disability. In addition, to the extent that any federal, state or local laws, including, without limitation, so-called “plant closing” laws, require
the Company to give advance notice or make a payment of any kind to you because of your involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of business, change of control, or any other similar event or
reason, the Severance Benefits payable under this Agreement shall either be reduced proportionately or eliminated, such that the total amounts paid to you do not exceed the amounts specified herein. The Severance Benefits provided under this
Agreement are intended to satisfy any and all statutory obligations that may arise out of your involuntary termination of employment for the foregoing reasons. 
 5. Description of Severance Benefits. For purposes of this Agreement, “Severance Benefits” are defined as: 
 (a) severance pay (the “Severance Pay”) equivalent to: (A)(i) twelve (12) months of your Base Salary (as
defined below) in effect as of your last day of employment with the Company in accordance with this agreement if a Notice Date (as defined below) occurs (a) on the same day as a Corporate Transaction or (b) within thirteen
(13) months after the effective date of a Corporate Transaction or (ii) six (6) months of your Base Salary (as defined below) in effect as of your last day of full-time employment with the Company if a Corporate Transaction has not
occurred on or within thirteen (13) months before the Notice Date; and (B) a pro rata portion of any bonus compensation under any employee bonus plan that has been approved by the Board of Directors (“Bonus Pay”) payable
to you for the fiscal year in which your employment terminated to be paid at the same time that such incentive bonus would have been paid if such termination had not occurred. Your pro rata portion of any Bonus Pay shall be based upon the number of
days in such calendar year elapsed through the Notice Date of such termination as a proportion of 365. 
 The date you are
notified that your employment with the Company is being terminated without Cause or the date you notify the Company that you are terminating your employment for Good Reason, shall be referred to herein as the “Notice Date.” The
Severance Pay shall be payable in equal installments over the applicable number of months (the “Initial Severance Period”) in accordance with the Company’s then applicable payroll policies, beginning no earlier than seven
(7) days after the effective date of the release described below, and will be subject to standard payroll deductions and withholdings; provided, however, that any Bonus Pay shall not be payable to you until such time as bonus
compensation under the applicable employee bonus plan is paid to other employees of the Company; and 
 (b) reimbursement
of your out-of-pocket costs to continue your group health insurance benefits (and dependent coverage, if applicable) under COBRA at substantially the same level of coverage in effect immediately prior to the Notice Date for (i) twelve
(12) months, if Severance Pay is payable pursuant to paragraph 5(a)(A)(i) above, or (ii) six (6) months, if Severance Pay is payable pursuant to paragraph 5(a)(A)(ii) above, following the last day of the month in which your
Notice Date occurs, payable at the sole discretion of the Company either in advance on the first day of each month or in a single lump sum, whether or not you elect or are eligible to receive COBRA; provided, that even if you do not elect or
are not eligible to receive COBRA, you shall receive the equivalent of such out-of-pocket costs paid by you not to exceed the costs that such benefits would equal under COBRA if you were so eligible. 
  

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 To receive any of the Severance Benefits, you must first sign and date a general release of
claims in favor of the Company in the form attached hereto as Exhibit A (the “Release”). Such Release shall not be signed or dated until the Notice Date, and, except as otherwise required by applicable law, is not valid (and
will not entitle you to Severance Benefits) unless signed and delivered to the Company within three (3) days after such Notice Date. 
 (c) The Company may elect, in its sole discretion, to pay you the equivalent of up to twelve (12) months of your Base Salary in effect as of your last day of employment with the Company in
accordance with this agreement, which additional payment shall extend your covenants and obligations set forth in Article IV of the Employee Intellectual Property, Confidentiality and Non-Compete Agreement for such additional period. If the
Company elects to make such additional payment to you, the Company shall make such payments in equal installments over the applicable number of months following the Initial Severance Period in accordance with the Company’s then applicable
payroll policies, or in the sole discretion of the Company as designated by the Company in writing within seven (7) days after the Notice Date, in a single lump sum cash payment, subject to standard payroll deductions and withholdings, and such
additional amounts shall be deemed to be “Severance Pay” and to be part of the “Severance Benefits” for purposes of this Agreement. 
 6. Parachute Payments. 
 (a) Notwithstanding anything in this
Agreement to the contrary, if any payment or benefit you would receive pursuant to a Corporate Transaction from the Company or otherwise (“Payment”) (i) would constitute a “parachute payment” within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then such Payment shall be equal to the Reduced Amount (as defined below). For the avoidance of doubt, a Payment shall not be considered a parachute payment for purposes of this paragraph if such Payment is approved by the shareholders of the
Company in accordance with the procedures set forth in Sections 280G(b)(5)(A)(ii) and (B) of the Code and the regulations thereunder, and at the time of such shareholder approval, no stock of the Company is readily tradeable on an established
securities market or otherwise (within the meaning of Section 280G(b)(5)(A)(ii)(I) of the Code) (“280G Shareholder Approval”). The “Reduced Amount” shall be either (i) the largest portion of the Payment
that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the Payment or a portion thereof after payment of the applicable Excise Tax, whichever amount after taking into account all applicable federal, state and
local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greatest amount of the Payment to you. If a reduction in payments or benefits
constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless you elect in writing a different order (provided, however, that such election shall be
subject to Company approval if made on or after the date on which the event that triggers the Payment occurs): reduction of cash payments; cancellation of accelerated vesting of stock awards; reduction of employee benefits. In the event that
acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of your stock awards unless you elect in writing a different order for cancellation.

  

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 (b) The accounting firm engaged by the Company for general audit purposes as of the
day prior to the effective date of the event giving rise to the Payment (“Payment Event”) shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the
individual, entity or group effecting the Payment Event, the Board shall have the discretion to appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the
determinations by such accounting firm required to be made hereunder. 
 (c) The accounting firm engaged to make the
determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and you within fifteen (15) calendar days after the date on which your right to a Payment is triggered (if requested at
that time by the Company or you) or such other time as requested by the Company or you. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall
furnish the Company and you with an opinion reasonably acceptable to you that no Excise Tax will be imposed with respect to such Payment. The Company shall be entitled to rely upon the accounting firm’s determinations, which shall be final and
binding. 
 7. Compliance with Revenue Code Section 409A. To the extent any Severance Benefits are paid from the
date of termination of your employment through March 15 of the calendar year following such termination, such Severance Benefits are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury
Regulations and thus payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations; (b) are paid following said March 15, such Severance Benefits are intended to
constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary separation from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the
maximum extent permitted by said provision, and (c) are in excess of the amounts specified in clauses (a) and (b) of this paragraph, shall (unless otherwise exempt under Treasury Regulations) be considered separate payments subject to
the distribution requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payments or benefits be delayed until 6 months after your separation from
service (if the Company is publicly traded and you are a “specified employee” within the meaning of the aforesaid section of the Code at the time of such separation from service). In the event that a six-month delay of any such separation
payments or benefits is required, on the first regularly scheduled pay date following the conclusion of the delay period you shall receive a lump sum payment or benefit in an amount equal to the separation payments and benefits that were so delayed,
and any remaining separation payments or benefits shall be paid on the same basis and at the same time as otherwise specified pursuant to this Agreement (subject to applicable tax withholdings and deductions). 
 8. Description of Corporate Transaction. For purposes of this Agreement, “Corporate Transaction” is defined as:
(i) a sale of all or substantially all of the assets of the Company; (ii) a merger, consolidation or reorganization involving the Company if, immediately after the consummation of such merger, consolidation or reorganization, the
stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity
in such merger, consolidation or reorganization or (B) more than

  

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fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction; or (iii) any transaction
(including without limitation a merger or reorganization in which the Company is the surviving entity) which results in any person or entity (other than persons who are stockholders or affiliates of the Company immediately prior to the transaction)
owning fifty percent (50%) or more of the combined voting power of all classes of stock of the Company, other than the sale by the Company of stock in transactions the primary purpose of which is to raise capital for the Company’s
operations and activities. 
 9. Salary and Accrued PTO/Vacation. On your last date of employment with the Company, the
Company will pay to you all of your accrued salary and all of your accrued but unused paid time off (“PTO”) or vacation as the case may be earned through your last day of employment. 
 10. Definition of Base Salary. For purposes of this Agreement, “Base Salary” means your base salary in effect as of
your last day of full-time employment with the Company, excluding the following: any type of commissions, incentive payments or any other similar remuneration paid directly to you, or any other income received in connection with stock options,
contributions made by the Company under any employee benefit plan, or similar items of compensation. 
 11. Definition of
Cause. For purposes of this Agreement, “Cause” means that you have committed or engaged in: (i) willful misconduct, gross negligence, theft, fraud, or other illegal or dishonest conduct, any of which are considered to be
materially harmful to the Company; (ii) refusal, unwillingness, failure, or inability to perform material job duties or habitual absenteeism; or (iii) violation of fiduciary duty, violation of any duty of loyalty, or material breach of any
material term of this Agreement or of your Employee Intellectual Property, Confidentiality and Non-Compete Agreement (a copy of which is attached hereto as Exhibit B) (the “Employee Intellectual Property Agreement”) or any
other contract between you and the Company. In the event you are terminated for Cause you will not be entitled to the Severance Benefits, pay in lieu of notice, vesting of any shares under any option plan, vesting of any unrestricted shares, or any
other such compensation set forth herein and you shall immediately forfeit all rights to any options to purchase shares of the Company’s common stock (including vested options) and such options shall immediately expire, but you will be entitled
to all other compensation (including commissions rightfully earned), benefits and unreimbursed expenses accrued through the Date of Termination. 
 12. Definition of Good Reason. For purposes of this Agreement, “Good Reason” shall mean (i) the relocation of your normal principal place of work greater than thirty
(30) miles from your then current normal work location; (ii) a decrease in your then current base salary of more than fifteen percent (15%), other than any such decrease resulting from a general reduction by the Company in the base salary
of all Company executive officers; or (iii) the Company unilaterally makes significant detrimental reductions in your job responsibilities; provided, that you shall give written notice to the Chairman of the Company’s Board of Directors
setting forth your intent to resign for Good Reason and the facts in support of your claim that Good Reason exists within ninety (90) days of the initial existence of any of the foregoing conditions; and the Company shall have thirty
(30) days after the applicable party has received such notice to take

  

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such actions, if any, as the Company may deem appropriate to eliminate such claimed Good Reason (without thereby admitting that such Good Reason had occurred); and your final separation from
service occurs within two (2) years of the initial existence of any of the foregoing conditions. If the Company acts to eliminate such claimed Good Reason within the thirty (30) day period after receipt of your notice, then you shall not
be deemed to be resigning for Good Reason under such facts. 
 13. At-Will Employment. Nothing in this Agreement
alters the at-will nature of your employment relationship with the Company. Any contrary representations or agreements, which may have been made to you, are superseded by this Agreement. Subject to the terms of this Agreement, either you or the
Company may terminate your employment relationship at any time, with or without Cause or advance notice. 
 14.
Employee Intellectual Property Agreement. 
 (a) Execution and Compliance. You acknowledge that you are a member of
the Company’s executive and management personnel and that, as such, you have been and will be privy to extremely sensitive, confidential and valuable commercial information, which constitutes trade secrets of the Company, the disclosure of
which would greatly harm the Company. Your work for the Company is conditioned on your execution of and continued compliance with the Employee Intellectual Property Agreement, which shall continue in full force and effect. 
 (b) Extension of Time. In the event that you breach any covenant, obligation or duty in the Employee Intellectual Property Agreement
or its subparts, any such duty, obligation, or covenants to which you and the Company agreed by the Employee Intellectual Property Agreement and its subparts shall automatically toll from the date of the first breach, and all subsequent breaches,
until the resolution of the breach through private settlement, judicial or other action, including all appeals. The duration and length of your duties and obligations as agreed by the Employee Intellectual Property Agreement and its subparts shall
continue upon the effective date of any such settlement, or judicial or other resolution. 
 15. Miscellaneous. Except as
specifically set forth herein, this Agreement constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to your employment terms and Severance Benefits. It is entered into without
reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be modified or amended except in writing signed
by you and a duly authorized officer of the Company. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of Colorado as applied to contracts made and to be performed
entirely within Colorado. 
 ***** 
  

 7 

 Please sign below to indicate your understanding and acceptance of this Agreement and return the signed
original to me at your earliest convenience. 
  

			
	Very truly yours,
	
	ARCA BIOPHARMA, INC.
		
	By:	 	 /s/ Richard B. Brewer

		
	Name:	 	 Richard B. Brewer

		
	Title:	 	 Chief Executive Officer

  

			
	UNDERSTOOD AND AGREED:	    	
		
	 /s/ Patrick Wheeler
	    	 February 11, 2009

	Patrick Wheeler	    	Date

  

 8 

 EXHIBIT A 
 RELEASE 
 In exchange for the Severance Benefits provided under the
foregoing Employment and Retention Agreement with ARCA biopharma, Inc. (the “Company”), dated [            ], and except as set forth in this release, I hereby release,
acquit and forever discharge the Company, its parents and subsidiaries, and their officers, directors, agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification I
may have as a result of any third party action against me based on my employment with the Company), arising out of or in any way related to agreements, events, acts or conduct at any time prior to the date I execute this release, including, but not
limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment, including but not limited to, claims of intentional and negligent
infliction of emotional distress, any and all tort claims for personal injury, claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of compensation; all claims for breach of contract and wrongful termination; claims pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil
Rights Act of 1964, as amended; the federal Employee Retirement Income Security Act of 1974, as amended; the federal Americans with Disabilities Act of 1990; Colorado anti-discrimination statutes, including the Colorado Civil Rights Act (as
amended); tort law; contract law; wrongful discharge; discrimination; fraud; defamation; emotional distress; and breach of the implied covenant of good faith and fair dealing; provided, however, that nothing in this paragraph shall be
construed in any way to release the Company from its existing obligations to indemnify me pursuant to any agreement or applicable law. 
 I also
hereby acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”). I also acknowledge that the consideration given
for the 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 arise on or after the date I execute this release; 

  

	 	(b)	I have the right to consult with an attorney prior to executing this release; 

  

	 	(c)	I have twenty-one (21) days to consider this release (although I may choose to voluntarily execute this release earlier); 

  

	 	(d)	I have seven (7) days following my execution of this release to revoke the release; and 

  

	 	(e)	this release shall not be effective until the date upon which the revocation period has expired, which shall be the eighth day after I execute this release.

 This Release constitutes the complete, final and exclusive embodiment of the entire agreement between the
Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This Release may only be modified by a writing signed by both me and a duly authorized
officer of the Company. This Release will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of Colorado as applied to contracts made and to be performed entirely within Colorado. This
Release shall be effective on the date I sign and return it to the Company, provided that the Company has also signed it. 
 I accept and agree
to the terms and conditions stated above. 
  

			
	  

	Patrick Wheeler
		
	Date:	 	  

	
	ARCA BIOPHARMA, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 EXHIBIT B 
 EMPLOYEE INTELLECTUAL PROPERTY, CONFIDENTIALITY AND NON-COMPETE AGREEMENT 
 [omitted]

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