Document:

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 

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	 	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. 

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 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

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 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 CEOEX-10.8

 Exhibit 10.8 
  

 
 March 13, 2016         

Mr. John Sharp, CPA 
 329 7th Street 
 Del Mar, CA 92014 

Dear John, 
 I am excited to offer you the position of Chief
Financial Officer of PhaseBio Pharmaceuticals, Inc. (the “Company”). This offer is contingent upon successful completion of the hiring process, including but not limited to reference checks and 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 $300,000, payable in accordance with the Company’s standard payroll practices.

	 	●	 	 Eligibility to receive an annual bonus in an amount up to 30% of your base salary based on the Company’s
assessment of your individual performance and overall Company performance. In order to earn and receive a bonus, you must remain employed by the Company through and including the bonus payment date, which will be on or before March 15 of the
year following the year for which it is paid. The determination of whether a bonus is warranted and the amount thereof shall be determined by the Company in its sole and absolute discretion. 

	 	●	 	 Subject to approval by the Board, you will be granted an option to purchase shares of PhaseBio Pharmaceuticals,
Inc., common stock of one million, five hundred thousand (1,500,000) shares of the Company’s common stock at an exercise price equal to the fair market value of the stock at the date of grant. The option with respect to shares equals
approximately 1.27% of the outstanding shares and 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 on each applicable vesting
date. 

	 	●	 	 Participation in the Company’s Change in Control Plan which specifies in the event of change in control and
if the acquiring company does not offer you a comparable position, an acceleration of options, salary, bonus and benefits for a period of one (1) year. Specifics of the plan can be provided to you. 

	 	●	 	 Eligibility to participate on the same basis as similarly situated employees in the Company’s benefit plans
in effect from time to time during your employment. Below is a description of the Company’s current benefits: 

	 	°	 Health, prescription and vision Insurance with Independence Blue

  
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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 for the PPO. Employees contribute 15% for the HMO. 

	 	°	 Dental insurance; employees currently contribute 20% for employee coverage, and 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 non-matched 401(k) Plan

	 	●	 	 Twenty (20) days paid vacation (prorated for employment of less than 1 year), nine (9) specified
company holidays, three (3) floating holidays per calendar year and two (2) personal days. 

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

 All matters of eligibility for coverage or benefits under any benefit plan shall be determined in accordance with the
provisions of such plan. The Company reserves the right to change, alter, or terminate any benefit plan in its sole discretion. 
 Your employment with
PhaseBio Pharmaceuticals, Inc. will begin on or before April 18, 2016 based on mutual agreement of your start date. Your principal place of employment will be located in San Diego, CA however you will be expected to spend at least five
(5) working days per month at the company’s offices in Malvern, PA. As a full-time, salaried, exempt employee you will be expected to work the Company’s normal business hours and additional hours as required by your job duties. Your
employment is subject to the Company’s personnel policies and procedures as they may be interpreted, adopted, revised or deleted from time to time in the Company’s sole discretion. 

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 you signing and abiding by the PhaseBio
Confidentiality/Non-Compete Agreement, which will be modified to limit the non-competition covenant to the extent required by Pennsylvania law (the “Confidentiality
Agreement”). 
 By signing this letter you are representing that you have full authority to accept this position and perform the duties of the position
without conflict with any other obligations and that you are not involved in any situation that might create, or appear to create, a conflict of interest with respect to your loyalty to or duties for

  
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the Company. You specifically warrant that you are not subject to an employment agreement or restrictive covenant preventing full performance of your duties to the Company. You agree not to bring
to the Company or use in the performance of your responsibilities at the Company any materials or documents of a former employer that are not generally available to the public, unless you have obtained express written authorization from the former
employer for their possession and use. You also agree to honor all obligations to former employers during your employment with the Company. 
 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, together with the
Confidentiality Agreement, 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. No term or provision of this letter may be amended waived, released, discharged or modified except in writing, signed by you and an authorized officer of the Company, except that the Company may, in its sole
discretion, adjust salaries, incentive compensation, stock plans, benefits, job titles, locations, duties, responsibilities, and reporting relationships. 

To indicate your acceptance of this offer, please sign below and return to me, along with the signed Confidentiality Agreement. This offer is in effect
through Wednesday, March 16, 2016. We look forward to having your join our company, and we know that you will be an excellent addition to our team. 

Best regards, 
  

	
	
	/s/ Jonathan P. Mow
	
	 Jonathan P. Mow
 Chief Executive
Officer

  

			
		
	Signed:	 	/s/ John P. Sharp
		
	By:	 	John P. Sharp, CPA
		
	Date:	 	March 16, 2016

  
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