Company: INSP
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001140361-25-009249
Chunk: 67

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 67
---
 satisfaction of tax withholding obligations arising out of the vesting of the RSUs. |

Potential Payments Upon Termination or Change-in-Control INCENTIVE PLAN PROVISIONS In December 2024, the Organization and Compensation Committee approved changes to the treatment of equity awards under the Company’s 2018 Plan upon death, disability, or retirement. The changes approved by the committee apply to our NEOs and are as follows: Death or Disability. If an NEO’s employment terminates as a result of the NEO’s death or qualified disability then his or her (a) unvested stock options and RSUs accelerate, and (b) PSUs accelerate and are paid based on target achievement on a pro rata basis, contingent on the NEO having been employed through at least 12 months of the applicable performance period. Retirement. If an NEO’s employment terminates as a result of a qualifying retirement following attainment of at least 10 years of continuous service and age 60 then the NEO’s (a) unvested options accelerate, (b) RSUs continue to vest, (c) PSUs are paid based on actual performance on a pro rata basis, contingent on the NEO having been employed through at least 12 months of the applicable performance period, and (d) MIP is paid based on actual performance on a pro rata basis. Mr. Herbert and Mr. Ban were the only NEOs who were eligible for a qualifying retirement as of December 31, 2024. Change in Control. Our PSU award agreements provide: (i) if a change in control occurs where the PSUs are assumed, substituted, replaced or continued by the surviving corporation or successor and the holder experiences a termination of service by the company without cause or by the holder for good reason within the twelve month period following such change in control, the target number of PSUs shall immediately vest as of such termination and (ii) if a change in control occurs where the PSUs are not assumed, substituted, replaced or continued by the surviving corporation or successor, a number of PSUs will be deemed to be achieved and vest upon such change in control based on the greater of actual or target achievement. EXECUTIVE AGREEMENTS We have entered into certain agreements with each of our NEOs, as described above, that provide for potential payments upon either a termination of employment or upon a change in control. Please see the “Named Executive Officer Employment Agreements” section above for a description of these potential payments and related benefits. The table that follows describes the payments that may