Document:

Nonqualified Stock Option Grant

 EXHIBIT 10.2 
 POZEN INC. 
 2000 EQUITY COMPENSATION PLAN, AS AMENDED AND RESTATED 
 NONQUALIFIED STOCK OPTION GRANT 
 This
STOCK OPTION GRANT, dated as of February 14, 2007 (the “Date of Grant”), is delivered by POZEN Inc. (the “Company”) to John R. Plachetka (the “Grantee”). 
 RECITALS 
 The POZEN Inc. 2000 Equity Compensation Plan, as amended and restated
(the “Plan”), provides for the grant of options to purchase shares of common stock of the Company. The Compensation Committee (the “Committee”) of the Board of Directors has decided to make a stock option grant as an inducement
for the Grantee to promote the best interests of the Company and its stockholders. A copy of the Plan is attached. 
 NOW, THEREFORE, the
parties to this Agreement, intending to be legally bound hereby, agree as follows: 
 1. Grant of Option. Subject to the terms and conditions set forth
in this Agreement and in the Plan, the Company hereby grants to the Grantee a nonqualified stock option (the “Option”) to purchase 38,500 shares of common stock of the Company (“Shares”) at an exercise price of $16.89 per Share.
The Option shall become exercisable according to Paragraph 2 below. 
 2. Exercisability of Option. The Option shall become exercisable on the
following dates, if the Grantee is employed by, or providing service to, the Company (as defined in the Plan) on the applicable date: 
 (i)
The Option shall become exercisable as to a total of 28,875 shares on the following dates: 
  

			
	 Date
	  	Shares for Which the Option is Exercisable
	 January 1, 2008
	  	7,218.75
	 January 1, 2009
	  	7,218.75
	 January 1, 2010
	  	7,218.75
	 January 1, 2011
	  	7,218.75

 (ii) The Option shall become exercisable as to a total of 9,625 shares (the “Contingent
Portion”) on the following dates, but only if the Company shall have received, on or before December 31, 2007, an action letter from the U.S. Food and Drug Administration (FDA) indicating approval of the New Drug Application (NDA) for
Trexima, the proposed brand name 

 
for the combination of GlaxoSmithKline’s sumatriptan and naproxen sodium in a single tablet being developed by the Company for the acute treatment of
migraine pursuant to a development and commercialization agreement with GlaxoSmithKline (“FDA Approval”): 
  

			
	 Date
	  	Shares for Which the Option is Exercisable
	 January 1, 2008
	  	2,406.25
	 January 1, 2009
	  	2,406.25
	 January 1, 2010
	  	2,406.25
	 January 1, 2011
	  	2,406.25

 Notwithstanding the foregoing, if the FDA Approval is not received by the Company on or before December 31,
2007, the Contingent Portion of this Option shall immediately and automatically be forfeited in its entirety and shall no longer be outstanding as of such date. 
 For purposes of this Agreement, the “Final Vesting Date” shall mean January 1, 2011. 
 The exercisability of the Option is
cumulative. 
 3. Term of Option. 
 (a)
The Option shall have a term of ten years from the Date of Grant and shall terminate at the expiration of that period, unless it is terminated at an earlier date pursuant to the provisions of this Agreement or the Plan. 
 (b) Subject to the provisions of this Paragraph 3(b), the Option shall automatically terminate upon the happening of the first of the following events:

 (i) The expiration of the 90-day period after the Grantee ceases to be employed by, or provide service to, the Company, if
the termination is for any reason other than Disability (as defined in the Plan), death or Cause (as defined below). 
 (ii)
The expiration of the one-year period after the Grantee ceases to be employed by, or provide service to, the Company on account of the Grantee’s Disability. 
 (iii) The expiration of the one-year period after the Grantee ceases to be employed by, or provide service to, the Company, if the Grantee
dies while employed by, or providing service to, the Company or within 90 days after the Grantee ceases to be so employed or provide such services on account of a termination described in subparagraph (i) above. 
 (iv) The date on which the Grantee ceases to be employed by, or provide service to, the Company for Cause (as hereinafter defined). In
addition, notwithstanding the prior provisions of this Paragraph 3, if the Grantee engages in conduct that constitutes Cause after the Grantee’s employment or service terminates, the Option shall immediately terminate. 

 Notwithstanding the foregoing, in no event may the Option be exercised after the date that is ten years from the Date of
Grant. Any portion of the Option that is not exercisable at the time the Grantee ceases to be employed by, or provide service to, the Company shall immediately terminate. 
 Notwithstanding anything herein to the contrary, if, prior to the Final Vesting Date, Grantee’s employment is terminated by the Company without Cause (as defined below), or Grantee terminates his employment with
the Company for Good Reason (as defined below), and provided that Grantee executes and does not revoke a general release in a form acceptable to the Company (the “Release”), the number of shares as to which the Option is exercisable shall
be accelerated pursuant to the terms of Section 6(b)(iv) of that certain Second Amended and Restated Executive Employment Agreement dated as of March 14, 2006, by and between POZEN and Grantee (the “Executive Employment
Agreement”) such that the Option shall become exercisable as to a number of Shares equal to the number of Shares that would have been exercisable had such termination occurred twelve (12) months later; provided, however, that if such
termination occurs prior to December 31, 2007 and receipt of the Trexima Approval has not occurred, the Contingent Portion shall be immediately forfeited in their entirety and this provision shall not apply to such Contingent Portion. For
purposes of this Paragraph 3, the terms “Cause” and “Good Reason” shall have the meanings given to such terms in the Executive Employment Agreement. 
 4. Exercise Procedures. 
 (a) Subject to the provisions of Paragraphs 2 and 3 above, the Grantee may
exercise part or all of the exercisable Option by giving the Company written notice of intent to exercise in the manner provided in this Agreement, specifying the number of Shares as to which the Option is to be exercised. On the delivery date, the
Grantee shall pay the exercise price (i) in cash, (ii) with the approval of the Committee, by delivering Shares of the Company which shall be valued at their fair market value on the date of delivery, (iii) payment through a broker in
accordance with procedures permitted by Regulation T of the Federal Reserve Board, or (iv) by such other method as the Committee may approve. The Committee may impose from time to time such limitations as it deems appropriate on the use of
Shares of the Company to exercise the Option. 
 (b) The obligation of the Company to deliver Shares upon exercise of the Option shall be
subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate by the Committee, including such actions as Company counsel shall deem necessary or appropriate to comply with relevant
securities laws and regulations. The Company may require that the Grantee (or other person exercising the Option after the Grantee’s death) represent that the Grantee is purchasing Shares for the Grantee’s own account and not with a view
to or for sale in connection with any distribution of the Shares, or such other representation as the Committee deems appropriate. All obligations of the Company under this Agreement shall be subject to the rights of the Company as set forth in the
Plan to 

 
withhold amounts required to be withheld for any taxes, if applicable. Subject to Committee approval, the Grantee may elect to satisfy any income tax
withholding obligation of the Company with respect to the Option by having Shares withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities. 
 5. Change of Control. The provisions of the Plan applicable to a Change of Control shall apply to the Option, and, in the event of a Change of Control, the
Committee may take such actions as it deems appropriate pursuant to the Plan. 
 6. Restrictions on Exercise. Only the Grantee may exercise the Option
during the Grantee’s lifetime and, after the Grantee’s death, the Option shall be exercisable (subject to the limitations specified in the Plan) solely by the legal representatives of the Grantee, or by the person who acquires the right to
exercise the Option by will or by the laws of descent and distribution, to the extent that the Option is exercisable pursuant to this Agreement. 
 7.
Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. The grant and exercise of the Option are
subject to the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions
pertaining to (i) rights and obligations with respect to withholding taxes, (ii) the registration, qualification or listing of the Shares, (iii) changes in capitalization of the Company, and (iv) other requirements of applicable
law. The Committee shall have the authority to interpret and construe the Option pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. 
 8. No Employment or Other Rights. The grant of the Option shall not confer upon the Grantee any right to be retained by or in the employ or service of the Company
and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment or service at any time. The right of the Company to terminate at will the Grantee’s employment or service at any time for any reason is
specifically reserved. 
 9. No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of
the Grantee’s death, shall have any of the rights and privileges of a stockholder with respect to the Shares subject to the Option, until certificates for Shares have been issued upon the exercise of the Option. 
 10. Assignment and Transfers. The rights and interests of the Grantee under this Agreement may not be sold, assigned, encumbered or otherwise transferred except,
in the event of the death of the Grantee, by will or by the laws of descent and distribution. In the event of any attempt by the Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or any right hereunder, except as
provided for in this Agreement, or in the event of the levy or any attachment, execution or similar process upon the rights or interests hereby conferred, the Company may terminate the Option by notice to the Grantee, and the Option and all rights

 
hereunder shall thereupon become null and void. The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company
and to the Company’s parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company without the Grantee’s consent. 
 11.
Applicable Law. The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions
thereof. 
 12. Notice. Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the President at 1414
Raleigh Road, Suite 400, Chapel Hill, N.C. 27517, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Company, or to such other address as the Grantee may designate to the Company in
writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal
Service. 
 [Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Agreement, and the
Grantee has executed this Agreement, effective as of the Date of Grant. 
  

					
	POZEN INC.
		
	By:	 	 /s/ William L. Hodges

	Its:	 	Senior Vice President, Finance and
		 	Administration, and Chief Financial
		 	Officer
		
	Accepted:	 	 /s/ John R. Plachetka

		 		 	John R. PlachetkaRestricted Stock Unit Agreement

 EXHIBIT 10.3 
 POZEN INC. 
 2000 EQUITY COMPENSATION PLAN, AS AMENDED AND RESTATED 
 RESTRICTED STOCK UNIT AGREEMENT 
 This
RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”), dated as of February 14, 2007 (the “Date of Grant”), is delivered by POZEN Inc. (“POZEN” or the “Company”), to John R. Plachetka (the
“Grantee”). 
 RECITALS 
 The POZEN Inc. 2000 Equity Compensation Plan, as amended and restated (the “Plan”) provides for the grant of stock-based awards with respect to shares of common stock, par value $0.001 per share, of POZEN (the “Common
Stock”), in accordance with the terms and conditions of the Plan. The Compensation Committee of the Board of Directors of POZEN (the “Committee”) has decided to make a stock-based award in the form of a grant of restricted stock
units, subject to the terms and conditions set forth in this Agreement and the Plan, as an inducement for the Grantee to promote the best interests of POZEN and its stockholders. The Grantee may receive a copy of the Plan by contacting the
Department of Finance and Administration at POZEN. 
 NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby,
agree as follows: 
 1. Grant of Restricted Units. Subject to the terms and conditions set forth in this Agreement and the Plan, POZEN hereby grants to
the Grantee 6,200 stock units (the “Restricted Units”) under the Plan. The Grantee accepts the Restricted Units and agrees to be bound by the terms and conditions of this Agreement and the Plan with respect to the Restricted Units.

 2. Restricted Unit Account. Restricted Units represent hypothetical shares of Common Stock, and not actual shares of stock. POZEN shall establish
and maintain a Restricted Unit account, as a bookkeeping account on its records, for the Grantee and shall record in such account the number of Restricted Units granted to the Grantee. No shares of stock shall be issued to the Grantee at the time
the grant is made, and the Grantee shall not be, nor have any of the rights or privileges of, a stockholder of POZEN with respect to any Restricted Units recorded in the account. The Grantee shall not have the right to receive any dividends or other
distributions with respect to hypothetical shares of stock recorded in the Restricted Unit account; provided, however, that the Committee shall appropriately adjust the number and kind of Restricted Units in the event of a stock split, stock
dividend or other change in capitalization of POZEN, as described in the Plan. The Grantee shall not have any interest in any fund or specific assets of POZEN by reason of this award or the Restricted Unit account established for the Grantee.

 3. Lapse of Restrictions. 
 (a) The Restricted Units shall be subject to forfeiture until the restrictions on the Restricted Units lapse. The restrictions on the Restricted Units shall lapse, and the Restricted Units shall become vested,
according to the following schedule, if the Grantee continues to be employed by, or provide service to, the Company (as defined in Section 5(e)(v)(A) of the Plan) from the Date of Grant until the applicable vesting date: 
 (i) A total of seventy-five percent (75%), or 4,650 of the Restricted Units shall vest, and the restrictions on the Restricted Units shall lapse, on the
following dates: 
  

			
	 Vesting Date
	  	Restricted Units
	 January 1, 2008
	  	1,162.5
	 January 1, 2009
	  	1,162.5
	 January 1, 2010
	  	1,162.5
	 January 1, 2011
	  	1,162.5

 (ii) A total of twenty-five percent (25%), or 1,550 of the Restricted Units (the “Contingent
Units”) shall vest, and the restrictions on the Restricted Units shall lapse, on the following dates, but only if the Company shall have received, on or before December 31, 2007, an action letter from the U.S. Food and Drug Administration
(FDA) indicating approval of the New Drug Application (NDA) for Trexima, the proposed brand name for the combination of GlaxoSmithKline’s sumatriptan and naproxen sodium in a single tablet being developed by the Company for the acute treatment
of migraine pursuant to a development and commercialization agreement with GlaxoSmithKline (“FDA Approval”): 
  

			
	 Vesting Date
	  	Restricted Units
	 January 1, 2008
	  	387.5
	 January 1, 2009
	  	387.5
	 January 1, 2010
	  	387.5
	 January 1, 2011
	  	387.5

 Notwithstanding the foregoing, if the FDA Approval is not received by the Company on or before
December 31, 2007, the Contingent Units shall immediately and automatically be forfeited in their entirety. 
 For purposes of this
Agreement, the “Final Vesting Date” shall mean January 1, 2011. 
 The lapse of restrictions on the Restricted Units shall be cumulative, but
shall not exceed 100% of the Restricted Units. If the foregoing schedule would produce fractional Units, the number of Restricted Units on which the restrictions lapse shall be rounded down to the nearest whole Unit, with all restrictions lapsing on
the fourth anniversary of the Date of Grant if the Grantee is then employed by, or providing service to, the Company. 
  

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 (b) When the restrictions on Restricted Units lapse as described above, the Restricted Units shall be
vested and shall no longer be subject to forfeiture. The Restricted Units shall continue to be credited to an account on the Company’s records (the “Restricted Unit Account”). When the Grantee ceases to be employed by, or provide
service to, the Company, the Company shall pay to the Grantee whole shares of Common Stock equal to the number of vested whole Restricted Units then credited to the Restricted Unit Account, as described in Paragraph 5 below. Any vested amounts
representing partial shares shall be paid in cash. 
 4. Termination of Restricted Units. 
 (a) If the Grantee ceases to be employed by, or provide service to, the Company for any reason before the restrictions on all the Restricted Units lapse,
any Restricted Units for which the restrictions have not lapsed according to the vesting schedule above shall automatically terminate and shall be forfeited as of the date of the Grantee’s termination of employment or service. No payment shall
be made with respect to any Restricted Units that terminate as described in this Paragraph 4. 
 (b) Notwithstanding the foregoing, if, prior
to the Final Vesting Date, Grantee’s employment is terminated by the Company without Cause (as defined below), or Grantee terminates his employment with the Company for Good Reason (as defined below), and provided that Grantee executes and does
not revoke a general release in a form acceptable to the Company (the “Release”), the number of Restricted Units which would have become vested on the next Vesting Date, according to the vesting schedules set forth in Paragraph 3(a) if
such termination had not occurred, shall vest and the restrictions on such Restricted Units shall lapse; provided, however, that if such termination occurs prior to December 31, 2007 and receipt of the Trexima Approval has not occurred, the
Contingent Units shall be forfeited in their entirety. If Grantee’s employment is terminated for Cause prior to the Final Vesting Date, Grantee shall immediately forfeit all rights to any Restricted Units that have not already vested. For
purposes of this Paragraph 4, the terms “Cause” and “Good Reason” shall have the meanings given to such terms in that certain Second Amended and Restated Executive Employment Agreement dated as of March 14, 2006, by and
between POZEN and Grantee (the “Executive Employment Agreement”). 
 5. Payment of Restricted Units. 
 (a)(i) It is intended that the Restricted Units will be distributed in accordance with Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”). On the fifth business day after the Grantee separates from service with POZEN (as defined under Section 409A), or on the second business day following the eighth day after Grantee executes and does not revoke the
Release under the circumstances described in Paragraph 4(b), POZEN will issue to the Grantee one share of Common Stock for each whole vested Restricted Unit credited to the Restricted Unit Account pursuant to the terms of this Agreement, subject to
satisfaction of the Grantee’s tax withholding obligations as described below, and except as described below. 
  

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 (ii) If a Change of Control (as defined in the Plan) occurs before the Grantee has separated from service
with POZEN, on the closing date of the Change of Control, subject to and in accordance with Paragraph 6 below and the provisions of the Plan applicable to a Change of Control and provided that the event constituting such Change of Control is a
permitted distribution event under Section 409A, POZEN will issue to the Grantee one share of Common Stock for each whole vested Restricted Unit credited to the Restricted Unit Account, subject to satisfaction of the Grantee’s tax
withholding obligations as described below. Any vested amounts representing partial shares shall be paid in cash. 
 (iii) Notwithstanding
the foregoing, if and to the extent required in order to avoid the imposition on the Grantee of any tax under Section 409A, the foregoing shares of Common Stock shall not be issued by the Company until the first business day after the date that
is six (6) months after the date of Grantee’s separation from service with POZEN (as defined under Section 409A). 
 (b) All
obligations of POZEN under this Agreement shall be subject to the rights of the Company as set forth in the Plan to withhold amounts required to be withheld for applicable taxes. Subject to Committee approval, the Grantee may elect to satisfy any
tax withholding obligation of the Company with respect to the Restricted Units by having shares of Common Stock withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state, and local
tax liabilities. 
 (c) The obligation of POZEN to deliver shares hereunder shall also be subject to the condition that if at any time the
Committee shall determine in its discretion that the listing, registration or qualification of the shares of Common Stock upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body,
is necessary or desirable as a condition of, or in connection with, the issue of shares, the shares may not be issued in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free
of any conditions not acceptable to the Committee. The issuance of shares of Common Stock to the Grantee pursuant to this Agreement is subject to any applicable taxes and other laws or regulations of the United States or of any state having
jurisdiction thereof. 
 (d) The Grantee agrees to be bound by the Company’s policies regarding transfer of shares of Common Stock and
understands that there may be certain times during the year in which the Grantee will be prohibited from selling, transferring, pledging, donating, assigning, mortgaging, hypothetically or encumbering shares. 
 6. Change of Control. The provisions of the Plan applicable to a Change of Control (as defined in the Plan) shall apply to the Restricted Units, and, in the event
of a Change of Control, the Committee may take such actions as it deems appropriate pursuant to the Plan. 
 7. Grant Subject to Plan Provisions. This
grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. The grant and payment of the Restricted Units are subject to interpretations,
regulations and determinations concerning the Plan established from time to time by the 

  

 4 

 
Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights and obligations with respect
to withholding taxes, (ii) the registration, qualification or listing of the shares issued under the Plan, (iii) changes in capitalization of POZEN and (iv) other requirements of applicable law. The Committee shall have the authority
to interpret and construe the Restricted Units pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder. 
 8. No Employment or Other Rights. The grant of the Restricted Units shall not confer upon the Grantee any right to be retained by or in the employ or service of the Company and shall not interfere in any way with the right of the
Company to terminate the Grantee’s employment or service at any time. The right of the Company to terminate at will the Grantee’s employment or service at any time for any reason is specifically reserved. 
 9. No Stockholder Rights. Neither the Grantee, nor any person entitled to receive payment in the event of the Grantee’s death, shall have any of the rights
and privileges of a stockholder with respect to shares of Common Stock, until certificates for shares have been issued upon payment of Restricted Units. 
 10. Assignment and Transfers. Except as the Committee may otherwise permit pursuant to the Plan, the rights and interests of the Grantee under this Agreement may not be sold, assigned, encumbered or otherwise transferred except, in
the event of the death of the Grantee, by will or by the laws of descent and distribution. In the event of any attempt by the Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Restricted Units or any right hereunder,
except as provided for in this Agreement, or in the event of the levy or any attachment, execution or similar process upon the rights or interests hereby conferred, POZEN may terminate the Restricted Units by notice to the Grantee, and the
Restricted Units and all rights hereunder shall thereupon become null and void. The rights and protections of POZEN hereunder shall extend to any successors or assigns of POZEN and to POZEN’s parents, subsidiaries, and affiliates. This
Agreement may be assigned by POZEN without the Grantee’s consent. 
 11. Unfunded Arrangement. The Grantee’s rights to receive payments
under this Agreement shall be no greater than the right of an unsecured general creditor of the Company. All payments shall be made from the general assets of the Company, and no special or separate fund shall be established and no segregation of
assets shall be made to assure payment. 
 12. Applicable Law. The validity, construction, interpretation and effect of this Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof. 
 13.
Notice. Any notice to POZEN provided for in this Agreement shall be addressed to POZEN in care of the Vice President, Finance and Administration, at the corporate headquarters of POZEN, and any notice to the Grantee shall be addressed to such
Grantee at the current address shown on the payroll of POZEN, or to such other address as the Grantee may designate to POZEN in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as
stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 
  

 5 

 IN WITNESS WHEREOF, POZEN has caused its duly authorized officer to execute this Restricted Stock Unit
Agreement, and the Grantee has placed his signature hereon, effective as of the Date of Grant. 
  

			
	POZEN INC.
		
	 By:
	 	 /s/ William L. Hodges

	 Name:
	 	William L. Hodges
	 Title:
	 	Senior Vice President, Finance and
		 	Administration, and Chief Financial
		 	Officer

 I hereby accept the award of Restricted Units described in this Agreement, and I agree to be bound by the
terms of the Plan and this Agreement. I hereby agree that all of the decisions and determinations of the Committee with respect to the Restricted Units shall be final and binding. 
  

	
	 /s/ John R. Plachetka

	 Grantee

	
	 February 14, 2007

	Date

  

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