Non-Employee Director Compensation Arrangements



 Exhibit 10.56 
 JAZZ PHARMACEUTICALS, INC. 
 NON-EMPLOYEE DIRECTOR 
 COMPENSATION ARRANGEMENTS 
 (as
modified on August 14, 2008) 
 On May 1, 2007, the Board of Directors (the “Board”) of Jazz Pharmaceuticals, Inc.
(the “Company”) adopted the following compensation program for non-employee directors of the Board to be effective upon the closing of the initial public offering of the Company’s common stock (the
“Offering”). Pursuant to this program, each member of the Board who is not an employee or an officer of the Company will receive the following cash compensation for Board services (“Board Retainers”),
as applicable: 
  

	 	•	 	 a $30,000 annual retainer for service as a Board member; 


  

	 	•	 	 a $15,000 supplemental annual retainer for service as chair of the audit committee; 


  

	 	•	 	 a $10,000 supplemental annual retainer for service as chair of the compensation committee; and 


  

	 	•	 	 a $5,000 supplemental annual retainer for service as chair of each other committee of the Board. 


 The Company will continue to reimburse its non-employee directors for their reasonable expenses incurred in attending meetings of the Board and
committees of the Board. 
 Additionally, members of the Board who are not employees or officers of the Company will receive non-statutory
stock options under the Company’s 2007 Non-Employee Directors Stock Option Plan which will become effective immediately upon the signing of the underwriting agreement for the Offering. Each non-employee director joining the Board after the
closing of the Offering will automatically be granted a non-statutory stock option to purchase 30,000 shares of common stock with an exercise price equal to the then fair market value of the Company’s common stock. On the first trading day on
or after August 15 of each year, commencing on August 15, 2007, each non-employee director will automatically be granted a non-statutory stock option to purchase 10,000 shares of common stock on that date with an exercise price equal to
the then fair market value of the Company’s common stock. The initial grants will vest with respect to one-third of the shares on the first anniversary of the date of grant, and the balance in a series of 24 successive equal monthly
installments thereafter. The annual grants will vest in a series of 12 successive equal monthly installments measured from the date of grant. All stock options granted under the Company’s 2007 Non-Employee Directors Stock Option Plan will have
a maximum term of ten years. 
 On July 18, 2007, the Board determined that the Board Retainers for the periods from
(i) June 1, 2007 through August 14, 2007 (in an amount equal to 20.83% of the annual Board Retainer) and (ii) August 15, 2007 through August 14, 2008 shall be deemed earned and payable on August 15, 2007 and that
commencing August 15, 2008, Board Retainers for each annual period from August 15 to the next subsequent August 14 shall be deemed earned and payable in advance on August 15. Payments of Board Retainers are subject to a
non-employee’s director’s election pursuant to the Company’s Directors Deferred Compensation Plan. Any amounts deferred under the Directors Deferred Compensation Plan are credited to a phantom stock account. On August 14, 2008,
the Board determined that any distributions from a Board member’s phantom stock account shall be in shares of the Company’s common stock. 
 On December 18, 2007, the Board determined that for purposes of non-employee directors that are appointed or elected other than on August 15 of any given year, a pro-rata portion of all Board Retainers for the period from such
non-employee director’s appointment or election to the next subsequent August 15 shall be deemed earned and payable on the date of the first regularly scheduled meeting of the Board that takes place not less than 31 days following the date
of such non-employee’ director’s appointment or election provided such date is in a “window period” (as such term is defined in the Company’s Policy Regarding Stock Trading By Officers, Directors and other Designated
Employees), or in the event such date is not in a window period, the next subsequent date which is in a window period.