Document:

LEASE AMENDMENT

 Exhibit 10.1 
  
 STATE OF NORTH CAROLINA 
  

	 COUNTY OF DURHAM
	 	SECOND AMENDMENT TO LEASE

  
 THIS SECOND AMENDMENT
TO LEASE (the “Second Amendment”) is made and entered into as of the 6th day of June, 2003, by and between ROYAL CENTER IC, LLC, a Delaware limited liability company (“Landlord”) [successor-in-interest to Royal Center Two IC,
LLC, a Delaware limited liability company (“RC Two”) and Petula Associates, Ltd., an Iowa corporation (“Petula”)] and INSPIRE PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”). 
  
 WITNESSETH: 
  
 A. Petula and Tenant entered into a Lease dated as of December 30, 1997 (the “Existing Lease”) for certain
premises known as Suite 225 (and erroneously referred to in the Existing Lease as Suite 470) consisting of approximately 5,400 rentable square feet of space (the “Existing Premises”) in that certain building known as Royal Center II (the
“Building”) located at 4222 Emperor Blvd., Durham, North Carolina as more particularly described in the Existing Lease; 
  
 B. The Existing Premises were expanded to include an additional 7,130 rentable square feet of space creating the “Expanded Premises” containing
12,530 rentable square feet pursuant to a First Amendment to Lease dated June 28, 2002 (the “First Amendment”) by and between RC Two (as successor-in-interest to Petula) and Tenant; 
  
 C. Landlord (as successor-in-interest to Petula and to RC Two) and Tenant
desire to further amend the terms of the Existing Lease: (i) to increase the size of the Expanded Premises to include approximately 7,220 rentable square feet of additional space immediately adjacent to the Expanded Premises as shown on Exhibit
A-2 attached hereto (the “Triangle J Space”), and (ii) to modify certain other terms and conditions of the Existing Lease. For purposes hereof, the Existing Lease as amended by this Second Amendment is referred to as the
“Lease.” 
  
 NOW, THEREFORE, for and in consideration of
Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree that, effective as of the date set forth above, the Existing Lease shall be, and hereby
is, amended as follows: 
  
 1. Recitals. The recitals shall
form a part of this Second Amendment. 
  
 2. Premises.
Effective as of August 16, 2003 (the “Triangle J Space Commencement Date”), the Expanded Premises shall be further expanded to include the Triangle J Space and shall be redefined as 19,750 rentable square feet on the first floor of the
Building (the “Revised Premises”) as more particularly described on the floor plan attached hereto as Exhibit “A-2”. Accordingly, as of the Triangle J Space Commencement Date, wherever reference is made in the Lease to the
Premises, it shall be deemed to mean the Revised Premises, and Exhibit A-1 to the 

 
First Amendment shall be replaced with Exhibit A-2 attached hereto in order to evidence the location of the Revised Premises. 
  
 3. Term. The Term of the Lease for the Expanded Premises shall remain
as set forth in the First Amendment and shall expire on November 30, 2006. The Term of the Lease for the Triangle J Space shall be for a period of approximately twenty-three and one-half (231⁄2) months (the “Triangle J Space Term”),
commencing on the Triangle J Space Commencement Date and expiring on July 31, 2005. 
  
 4. Delivery of Triangle J Space. On or before the Triangle J Space Commencement Date, Landlord shall deliver the Triangle J Space to Tenant in its “as is, where is” condition without any further
improvements thereto by Landlord. Landlord shall deliver the Triangle J Space to Tenant in broom clean condition with all base building systems in good working order and in compliance with all applicable laws. Prior to the Triangle J Space
Commencement Date, Landlord and Tenant shall conduct a joint walk through of the Triangle J Space to confirm the compliance of said space with the foregoing requests and to the extent of any non-compliance, Landlord shall remedy such non-compliance
as soon as reasonably possible under the circumstances following the completion of such walk through. 
  
 5. Rental. Notwithstanding anything in the Existing Lease to the contrary, beginning on the Triangle J Space Commencement Date and continuing
throughout the remainder of the Triangle J Space Term, in addition to the Rental to be paid by Tenant for the Expanded Premises, Tenant shall pay Minimum Rental for the Triangle J Space as follows: 
  

	Period

	 	 Minimum Rental per
 rentable square foot:

	 	 Monthly Minimum
 Rental

	 	 Annual
 Minimum Rental:

	 8/16/03 to 7/31/04
	 	$11.60	 	$6,979.33	 	$83,752.00
	 8/1/04 to 7/31/05
	 	$11.95	 	$7,189.92	 	$86,279.00

  
 Commencing as of the
Triangle J Space Commencement Date and continuing throughout the Triangle J Space Term, as same may be extended, Tenant’s Proportionate Share of Tenant Expenses, including insurance costs, taxes and operating expense charges, and any other
amounts due and payable under the Lease, shall be adjusted to reflect the Revised Premises. 
  
 6. Option to Extend.  
  
 A. Notice and Exercise. Provided no Event of Default is continuing under this Lease and Tenant has not assigned this Lease nor sublet all or any portion of the Triangle J Space, Tenant is hereby granted the option to extend the
Triangle J Space Term once for an additional period of one (1) year and four (4) months (the “Triangle J Space Extension Term”) commencing upon the expiration of the Triangle J Space Term on the same terms and conditions as contained in
the other provisions of this Lease other than any upfitting allowance (Tenant accepting the Triangle J Space in its “as, is” condition), additional renewal options and as otherwise provided in this Section. This option shall be exercised
only by delivery of written notice (the “Renewal Notice”) to Landlord no later than six (6) months prior to the expiration of the Triangle J Space Term. The Minimum Rental for the Triangle J Space shall be the greater of 

  

 2 

 
(i) Eleven and 37/100 Dollars ($11.37) per rentable square foot of floor area in the Triangle J Space, or (ii) the then fair market rental (“Market
Rate”) applicable to the Triangle J Space. Tenant shall continue to pay its Proportionate Share of Tenant Expenses for the Triangle J Space throughout the Triangle J Space Extension Term. 
  
 B. Determination of Market Rate. For purposes of this Section
6, the term “Market Rate” shall mean the annual amount per rentable square foot that comparable landlords of comparable buildings have accepted in then-current transactions between non-affiliated parties from new, non-expansion,
non-renewal (unless the lease involved a procedure invoked by landlord and tenant for a 100% determination of “fair market rental”) and non-equity tenants of comparable credit-worthiness, for comparable space, for a comparable use, for a
comparable period of time (“Comparable Transactions”). In any determination of Comparable Transactions appropriate consideration shall be given to the annual rental rates per rentable square foot, the standard of measurement by which the
rentable square footage is measured, the ratio of rentable square feet to usable square feet, the type of escalation clause implemented, the extent of tenant’s liability under the lease, abatement provisions reflecting free rent and/or no rent
during the period of construction or subsequent to the commencement date as to the space in question, parking considerations, length of the lease term, size and location of premises being leased, building standard work letter and/or tenant
improvement allowances, if any, or any other tenant concessions and other generally applicable conditions of tenancy for such Comparable Transactions. The intent is that Tenant will obtain the same rent and other economic benefits that Landlord
would otherwise give in Comparable Transactions and that Landlord will make, and receive the same economic payments and concessions that Landlord would otherwise make, and receive in Comparable Transactions. 
  
 Landlord shall determine the Market Rate by using its good faith judgment.
Landlord shall provide written notice of such amount within thirty (30) days (but in no event later than forty-five (45) days) after Tenant provides the notice to Landlord exercising Tenant’s option rights which require a calculation of the
Market Rate. Tenant shall have thirty (30) days (“Tenant’s Review Period”) after receipt of Landlord’s notice of the new rental within which to accept such rental or to object thereto in writing. In the event Tenant objects,
Landlord and Tenant shall attempt to agree upon such Market Rate using their best good faith efforts. If Landlord and Tenant fail to reach agreement within thirty (30) days following Tenant’s Review Period (“Outside Agreement Date”),
then each party shall place in a separate sealed envelope its final proposal as to Market Rate and such determination shall be submitted to arbitration in accordance with subsections (i) through (v) below. Failure of Tenant to so accept in writing
such rental within Tenant’s Review Period shall conclusively be deemed its disapproval of the Market Rate determined by Landlord. 
  
 (i) Landlord and Tenant shall meet with each other within five (5) business days of the Outside Agreement Date and exchange the sealed envelopes and then
open such envelopes in each other’s presence. If Landlord and Tenant do not mutually agree upon the Market Rate within one (1) business day of the exchange and opening of envelopes, then, within ten (10) business days of the exchange and
opening of envelopes Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate broker who shall have been active over the five (5) year period ending on the date of such appointment in the
leasing of comparable commercial properties in the vicinity of the Building. Neither Landlord 

  

 3 

 
nor Tenant shall consult with such broker as to his or her opinion as to Market Rate prior to the appointment. The determination of the arbitrator shall be
limited solely to the issue of whether Landlord’s or Tenant’s submitted Market Rate for the Premises is the closer to the actual Market Rate for the Premises as determined by the arbitrator, taking into account the requirements of this
Section 2. Such arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion, determines is necessary. In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within
five (5) business days after the appointment of the arbitrator any market data and additional information that such party deems relevant to the determination of Market Rate (“MR Data”) and the other party may submit a reply in writing
within five (5) business days after receipt of such MR Data. 
  
 (ii) The arbitrator shall, within thirty (30) days of his or her appointment, reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted Market Rate, and shall notify Landlord and Tenant of such
determination. Alternatively, the arbitrator may elect to engage another real estate broker (who shall have been active over the five (5) year period ending on the date of such appointment in the leasing of comparable commercial properties in the
vicinity of the Building) to determine the Market Rate and the arbitrator may elect to use such broker’s submitted Market Rate and thereafter notify Landlord and Tenant of such determination. 
  
 (iii) The decision of the arbitrator shall be binding upon Landlord and
Tenant. 
  
 (iv) If Landlord and Tenant fail to agree upon and
appoint an arbitrator, then the appointment of the arbitrator shall be made by the Presiding Judge of the Superior Court, or, if he or she refuses to act, by any judge having jurisdiction over the parties. 
  
 (v) The cost of arbitration shall be paid by Landlord and Tenants equally.

  
 Immediately after the base rent for the Triangle J Space Extension Period is
determined pursuant to this Section, Landlord and Tenant shall execute an amendment to the Lease stating the new base rent in effect. 
  
 7. Contingency. The effectiveness of this Second Amendment is contingent in all respects upon execution of an agreement by the current occupant of
the Triangle J Space terminating its lease with respect to the Triangle J Space. Landlord shall use reasonable efforts to obtain such agreement on or before the Triangle J Commencement Date; provided, however, if Landlord does not obtain such
agreement prior to the earlier of: (i) the Triangle J Space Commencement Date, or (ii) June 16, 2003, either party may elect to terminate this Second Amendment upon five (5) days advance written notice to the other, whereupon the parties hereto
shall have no further rights or obligations under this Second Amendment. 
  
 8. Broker. Landlord and Tenant represent and warrant each to the other that they have not dealt with any broker(s) or any other person claiming any entitlement to any commission in connection with this
transaction except Tri Properties, Inc. and Advantis GVA (collectively, the “Broker”). Tenant agrees to indemnify and save Landlord and Landlord’s agent, Tri Properties, Inc., harmless from and against any and all claims, suits,
liabilities, costs, judgments and expenses, including reasonable attorneys’ fees, for any leasing commissions or 

  

 4 

 
other commissions, fees, charges or payments due, owing, or made to a broker (except as provided immediately below) in connection with this Amendment.
Landlord agrees to indemnify and save Tenant and Tenant’s agent, Advantis GVA, harmless from and against any and all claims, suits, liabilities, costs, judgments and expenses, including reasonable attorneys’ fees, for any leasing
commissions or other commissions, fees, charges or payments resulting from or arising out of its actions in connection with this Amendment. Neither Landlord nor Tenant shall have any obligation for payment of any commission to Broker; provided,
however, Landlord and Tenant hereby acknowledge their understanding that a commission will be paid to Advantis GVA by the current occupant of the Triangle J Space. 
  
 9 Ratification. Except as expressly or by necessary implication amended or modified hereby, the terms of the Existing
Lease are hereby ratified, confirmed and continued in full force and effect. 
  
 IN WITNESS WHEREOF, each of the parties hereto has duly executed this Second Amendment as of the day and year first above written. 
  

	 LANDLORD:

	
	 ROYAL CENTER IC, LLC,
 a Delaware limited liability company

		
	 By:
	 	 PRINCIPAL REAL ESTATE INVESTORS, LLC,
 a Delaware limited liability company, its authorized
 agent

		
	 By:
	 	 /s/ Mark F. Scholz

	 Name:
	 	 Mark F. Scholz

	 Title:
	 	 Investment Director, Asset Management

	 Date:
	 	 June 12, 2003

	
	 TENANT:

	
	 INSPIRE PHARMACEUTICALS, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Mary Bennett

	 Name:
	 	 Mary Bennet

	 Its:
	 	 MB

	 Date:
	 	 June 6, 2003

  

 5 

 EXHIBIT “A-2” 
  
 Floor Plan 
  

 6FORM OF EMPLOYEE STOCK OPTION AGREEMENT

 Exhibit 10.2 
  
 No.
                     
  
 FORM OF 
  
 INSPIRE PHARMACEUTICALS, INC. 
  
 EMPLOYEE STOCK OPTION AGREEMENT 
  
 Inspire Pharmaceuticals, Inc. (the “Company”), a Delaware corporation, as an incentive and inducement to the Optionee, who is presently an employee of the Company, to devote his or her best efforts to the affairs of the Company,
which incentive and inducement the Board of Directors of the Company or a committee of the Board of Directors (either, the “Board”) has determined to be sufficient consideration for the grant of this option, hereby grants to the Optionee
the right and option (the “Option”) to purchase shares of the Company’s Common Stock, $0.001 par value per share (the “Stock”), under the following terms: 
  

	 Optionee:
	  	
	  	 
			
	 Grant Date:
	  	
	  	 
			
	 Vesting Commencement Date:
	  	
	  	 
			
	 Exercise Price:
	  	
	  	 
			
	 Number of Shares Available for
 Purchase (“Option Shares”):
	  	
	  	 
			
	 Expiration Date:
	  	
	  	 
			
	 Type of Stock Option:
	  	
	  	 Incentive Stock Option

			
	 	  	
	  	 Non-Statutory Stock Option

  
 1. The Option shall vest and become
exercisable in installments in accordance with the following provisions: 
  

	 	(a)	 	The Option shall not vest and become exercisable for any shares unless and until the first anniversary of the Vesting Commencement Date; 

  

	 	(b)	 	Upon attainment of the first anniversary of the Vesting Commencement Date with the Company as specified in subparagraph 1(i) above, the Option shall vest and become exercisable for
25% of the Option Shares; 

  

	 	(c)	 	The Option shall vest and become exercisable for the remaining Option Shares in a series of successive equal monthly installments over each of the next thirty-six (36) months of
service to the Company completed by the Optionee after the Optionee’s first anniversary of the Vesting Commencement Date in subparagraph 1(i) above 

 with each monthly tranche vesting on that day of each month which corresponds to the date of the month of
the Vesting Commencement Date, provided, however, if a given month does not have such a date, the monthly tranche shall vest on the last day of such month; and 
  

	 	(d)	 	The Option shall expire and shall not be exercisable for any of the Option Shares after the Expiration Date. 

  
 2. Optionee understands and agrees that the Option is granted subject to and in accordance
with the terms of the Inspire Pharmaceuticals, Inc. 1995 Stock Plan, as amended (the “Plan”). 
  
 3. The Option may be exercised at any time and from time to time, subject to the limitation of Section 1 above, up to the aggregate number of shares specified herein; provided, however, the Option shall be
exercisable only with respect to whole shares. Any fractional shares which vest during any vesting period shall be aggregated until such time as the fractional shares shall have accumulated to equal a whole share and become exercisable. Written
notice of exercise shall be delivered to the Company specifying the number of shares with respect to which the Option is being exercised and a date not later than fifteen days after the date of the delivery of such notice as the date on which the
Optionee will take up and pay for such shares. On the date specified in such notice, the Company will deliver to the Optionee a certificate for the number of shares with respect to which the Option is being exercised against payment therefor in cash
or by certified check. 
  
 4. The Optionee shall not be deemed, for any purpose,
to have any rights whatever in respect of Option Shares to which the Option shall not have been exercised and payment made as aforesaid. The Optionee shall not be deemed to have any rights to continued employment by virtue of the Option. 

 
 5. In the event that the Board, in its discretion, determines that any stock dividend,
split-up, combination or reclassification of shares, recapitalization or other similar capital change affects the Stock such that adjustment is required in order to preserve the benefits or potential benefits of the Option, the maximum aggregate
number and kind of shares or securities of the Company subject to the Option, and the Exercise Price of the Option, shall be appropriately adjusted by the Board (whose determination shall be conclusive) so that the proportionate number of Option
Shares or other securities subject to the Option and the proportionate interest of the Optionee shall be maintained as before the occurrence of such event. 
  
 6. In the event of a consolidation or merger of the Company with another corporation, or the sale or exchange of all or substantially all of the assets of the Company, or
a reorganization or liquidation of the Company, the Optionee shall be entitled to receive upon exercise and payment in accordance with the terms of the Option the same shares, securities or property as he or she would have been entitled to receive
upon the occurrence of such event if he or she had been, immediately prior to such event, the owner of the number of Option Shares. In lieu of the foregoing, however, the Board may upon written notice to the Optionee provide that, unless theretofore
exercised, the Option shall expire as of the earlier of the Expiration Date or the date specified in such notice which may not be less than 20 days after the date of such notice. In connection with such notice, the Board 
  

 2 

 may in its discretion accelerate or waive any deferred vesting. 
  
 7. During the Optionee’s lifetime, the Option shall be exercisable only by such Optionee
or, in the case of his or her legal incapacity, his or her guardian or legal representative. The Option shall be transferable by the Optionee only by will or the laws of descent and distribution. After the Optionee’s death, the Option shall be
exercisable only by the person or persons entitled to do so under the Optionee’s last will and testament or if the Optionee fails to make a testamentary disposition of the Option or dies intestate, by the person or persons entitled to receive
the Option under any applicable laws of descent and distribution. In no event shall the Option be exercisable by any person to a greater extent than the Option could have been exercised by the Optionee immediately prior to his or her death or the
effective date of his or her termination of employment due to Disability, as defined in Section 22(e)(3) of the Code (as applicable). The Board shall have the right to require evidence to its satisfaction of the rights of any person or persons
seeking to exercise the Option hereunder, e.g., an authenticated copy of the will. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any execution,
attachment or similar process upon the Option, shall be null and void and without effect. Any transferee described above shall be treated as the Optionee for purposes of all other provisions of this agreement and the terms of the Plan. 

 
 8. If the Optionee terminates employment during any period in which the Option Shares are
exercisable, but prior to the Expiration Date (the “Exercise Period”), such period shall be adjusted as follows, except that in no event shall the Exercise Period be extended beyond the Expiration Date: 
  

	 	(a)	 	The Exercise Period shall end immediately upon the date of the Optionee’s breach of any agreement, covenant or representation by and between the Optionee and the Company,
including but not limited to any promise or warrant made as consideration for this agreement or the terms of any severance agreement; 

  

	 	(b)	 	The Exercise Period shall end immediately upon the effective date of the Optionee’s termination of employment by his or her: (i) voluntary resignation in violation of any
agreement to remain in the employ of the Company; (ii) involuntary “Discharge for Cause” for reasons which may include, without limitation, any illegal or improper conduct that injures or impairs the reputation, goodwill, or business of
the Company, involves the misappropriation of funds of the Company, or the misuse of data, information or documents acquired in connection with employment by the Company, or violates any other directive or policy promulgated by the Company; (iii)
resignation in anticipation of Discharge for Cause; or (iv) resignation accepted by the Company in lieu of a formal Discharge for Cause; 

  

	 	(c)	 	The Exercise Period shall end three months after the effective date of the Optionee’s termination of employment for any reason OTHER THAN: (i) by transfer to an affiliated
corporation which owns directly or indirectly 50 percent or more of the total combined voting power of the Company or in which the Company owns directly or indirectly 50 percent or more of the total combined voting power or has a significant
financial interest as determined by the Board (“Affiliate”); or (ii) any reason for 

  

 3 

 which the Option would expire immediately, as described under Sections 8(a) and 8(b), or following death
or disability, as described under Section 8(d); and 
  

	 	(d)	 	The Exercise Period shall end twelve months after the effective date of the Optionee’s death or termination of employment due to Disability, subject to such proof of Disability
as the Board may require. 

  
 9. It shall be a condition of exercise
hereunder that: 
  

	 	(a)	 	The Company may, in its discretion, require that in the opinion of counsel for the Company the proposed purchase of Option Shares shall be exempt from registration under the
Securities Act of 1933, as amended; 

  

	 	(b)	 	The Optionee shall have made such undertakings and agreements with the Company as the Company may reasonably require, and that such other steps, if any, as counsel for the Company
shall deem necessary to comply with any law, rule or regulation applicable to the issue of such shares by the Company shall have been taken by the Company or the Optionee, or both; 

  

	 	(c)	 	The certificates representing the shares purchased under the Option may contain such legends as counsel for the Company shall deem necessary to comply with the applicable law, rule
or regulation; 

  

	 	(d)	 	The Optionee shall execute and deliver to the Company a counterpart of any applicable stockholders agreement, investor rights agreement or similar agreement among the Company and
some or all of its stockholders, and any amendment thereto or restatement or replacement thereof, pursuant to which the Optionee shall be subject to all provisions therein applicable to holders of Common Stock of the Company; and

  

	 	(e)	 	The Option shall, if the Company so requests, provide payment of all state and federal taxes imposed upon the exercise of the Option and the issue of the shares covered hereby.

  
 10. The Option is issued pursuant to the terms of the Plan. This
Certificate does not set forth all of the terms and conditions of the Plan, which are incorporated herein by reference. Copies of the Plan may be obtained upon written request without charge from the Treasurer of the Company. 
  
 11. If the Option is intended to be treated as an Incentive Stock Option, it shall be treated
as an Incentive Stock Option to the extent permitted by applicable laws or regulations; otherwise, to the extent not so permitted, it shall be treated as a Non-Statutory Stock Option. To the extent the Option is treated as an Incentive Stock Option:

  

	 	(a)	 	The Optionee agrees to notify the Company in writing within 30 days of the disposition of one or more shares of Stock which were transferred to him or her 

 

 4 

 pursuant to the exercise of the Option if such disposition occurs within two years from the Date of Grant
of the Option or within one year after the transfer of such shares. 
  

	 	(b)	 	The Optionee acknowledges that: 

  

	 	(i)	 	In the event the Optionee terminates employment with the Company or an Affiliate for reasons other than death or Disability, the Option shall cease to be eligible for tax treatment
as an Incentive Stock Option, unless it is exercised within three months from the date of such termination; and 

  

	 	(ii)	 	In the event the Optionee dies or terminates employment due to Disability, the Option shall cease to be eligible for tax treatment as an Incentive Stock Option, unless it is
exercised within twelve months from the date of death or such termination due to Disability. 

  
 12. This agreement may be amended only by a written agreement executed by the Company and the Optionee. The Company and the Optionee acknowledge that changes in federal tax laws enacted subsequent to the Date of
Grant, and applicable to stock options, may provide for tax benefits to the Company or the Optionee. In that event, the Company and the Optionee agree that this agreement may be amended as necessary to secure for the Company and the Optionee any
benefits that may result from that legislation. Any amendment shall be made only upon the mutual consent of the parties, which consent (of either party) may be withheld for any reason. 
  
 * * * 
  

 5 

 IN WITNESS WHEREOF the Company has caused the Option to be executed by its duly authorized officers on
its behalf as of              2003. 
  

	INSPIRE PHARMACEUTICALS, INC.
		
	 By:
	 	

	Title:	 	 

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]