Document:

Form of Restricted Stock Unit Agreement

 Exhibit 10.5 
 RESTRICTED STOCK UNIT AGREEMENT 
 UNDER THE 
 INSPIRE PHARMACEUTICALS, INC. 2005 EQUITY COMPENSATION PLAN 
 This Restricted Stock Unit Agreement (this “Agreement”) is made as of the      day of
                ,          (the “Effective Date”), between Inspire Pharmaceuticals, Inc.
(the “Company”) and                      (the “Grantee”). The restricted stock units awarded pursuant to this
Agreement (the “Units”) are subject to the terms set forth herein and the terms and provisions of the Inspire Pharmaceuticals, Inc. 2005 Equity Compensation Plan (the “Plan”) applicable to restricted stock units,
which terms and provisions are incorporated herein by reference. Unless the context requires otherwise, the terms defined in the Plan shall have the same meanings herein. 
 1. Grant of Restricted Units. The Company hereby grants to the Grantee          Units. Each Unit is equivalent in value to one share of the Company’s common
stock, and shall entitle the Grantee to receive from the Company, subject to Section 2 of this Agreement, one share of common stock. 
 2. Vesting of Units. The Units are subject to forfeiture to the Company until such time as they vest and become nonforfeitable as set forth below in this Section 2. 
 (a) The Units shall vest and become nonforfeitable as follows: 
 (i)          Units shall vest and become nonforfeitable on
                    , if the Grantee continuously provides substantial services to the Company as an employee or consultant through such date;

 (ii)          additional Units shall vest and become nonforfeitable on
                    , if the Grantee continuously provides substantial services to the Company as an employee or consultant through such date;

 (iii)          additional Units shall vest and become nonforfeitable on
                    , if the Grantee continuously provides substantial services to the Company as an employee or consultant through such date;

 (iv)          additional Units shall vest and become nonforfeitable on
                    , if the Grantee continuously provides substantial services to the Company as an employee or consultant through such date;
and 
 (v)          additional Units shall vest and become nonforfeitable on
                    , if the Grantee continuously provides substantial services to the Company as an employee or consultant through such date.

 (b) Upon the Grantee’s Separation from Service (as defined below) with the Company for any reason other than the
Grantee’s death or disability (as described in Section 2(d), below), any Units which have not vested and become nonforfeitable as of such date shall immediately and automatically be forfeited. For purposes of this Agreement, a Grantee
experiences a “Separation from Service” on the date the Grantee ceases to provide substantial services to the Company as an employee or consultant. 

 (c) Notwithstanding anything in this Agreement to the contrary, upon a Grantee’s Termination
Due to Change in Control, all Units shall become vested and nonforfeitable and stock certificates evidencing the Company Stock underlying the Units shall be issued to the Grantee on his or her employment termination date, subject to the satisfaction
of any withholding obligations (including federal and state income, and FICA taxes), as described in Section 3, below. Notwithstanding the foregoing, if the Company, its delegate or any governmental agency determines that the definition of
Change of Control in the Plan does not conform to Internal Revenue Code (the “Code”) Section 409A(a)(2)(vi) or related regulations, all Units subject to this Section 2 shall nevertheless become vested and nonforfeitable upon
a Grantee’s Termination Due to Change in Control; provided, however, that stock certificates evidencing the Company Stock underlying the Units shall be issued to the Grantee on the Delivery Date (as defined in Section 3) and subject to the
satisfaction of any withholding obligations, as described in Section 3, below. Notwithstanding the foregoing, a consultant’s outstanding Units shall not become vested and nonforfeitable upon a Change in Control or upon the termination of
the consultant’s services following a Change in Control. 
 (d) Upon the first anniversary following the date that the Grantee
experiences a Separation from Service as a result of the Grantees death or disability (as defined in Section 409A(2)(c) of the Code), any Units which have not vested and become nonforfeitable as of such date shall immediately and automatically
be forfeited (it being understood that in the event of a Separation from Service as a result of the Grantees death or disability, the Units will continue to vest until the first anniversary following the date of such a separation from services
notwithstanding the fact that the Grantee will not provide substantial services to the Company through such anniversary date). The stock certificates evidencing the Company Stock underlying the Units that have become vested and nonforfeitable as of
the date of the Grantee’s Separation from Service resulting from death or disability shall be issued to the Grantee’s estate or the Grantee, as applicable, as soon as practicable following such date, subject to the satisfaction of any
withholding obligations (including federal and state income, and FICA taxes) as described in Section 3, below. 
 3. Delivery of
Company Stock. Subject to Section 2 and the Grantee’s satisfaction of any withholding obligations (including federal and state income, and FICA taxes) in connection with the Grantee’s receipt of any Units, six (6) months
following the date the Grantee experiences a Separation from Services (the “Delivery Date”), the Grantee shall receive stock certificates evidencing the conversion of the Units into Company Stock. The Grantee’s withholding
obligations, if any, shall be satisfied by making a payment to the Company in cash, by personal check, or by any other form of payment permitted by the Company, in an amount sufficient to satisfy such withholding obligations. Such stock certificates
shall be issued to the Grantee as of the Delivery Date and registered in the Grantee’s name. 
 4. Rights as Unit Holder. The
Grantee shall not have voting or any other rights as a stockholder of the Company with respect to the Units. Grantee shall have all of the rights and privileges of a holder of Company Stock with respect to the shares of Company Stock that he or she
receives in satisfaction of his or her Units pursuant to this Agreement. 
 5. Stock Splits, etc. If, while any of the Units remain
subject to forfeiture, there occurs any merger, consolidation, reorganization, recapitalization, stock split, stock dividend, or other similar change in the Company’s common stock, then any and all new, substituted or additional securities or
other consideration to which the Grantee is entitled by reason of the Grantee’s ownership of the Units, shall be promptly reflected in the Company’s records regarding the Grantee, and included thereafter as “Units” for purpose of
this Agreement. 
  

 - 2 - 

 6. Tax Consequences. The Grantee understands and agrees that the Company has not advised the
Grantee regarding the Grantee’s income tax liability in connection with the vesting of the Units. The Grantee has reviewed with the Grantee’s own tax advisors the federal, state, local and foreign tax consequences of this investment and
the transactions contemplated by this Agreement. The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee understands that the Grantee (and not the Company) shall be
responsible for the Grantee’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. 
 7. Restriction on Transfer. None of the Units or any beneficial interest therein shall be transferred, encumbered, pledged or otherwise alienated or disposed of in any way except by will or by the laws of
descent and distribution. 
 8. Restrictive Legends. Stock certificates provided to the Grantee evidencing the Company Stock received
hereunder shall bear such legends as the Company deems necessary or desirable under the Securities Act of 1933, as amended, or the rules or regulations promulgated thereunder. 
 9. Market Stand-Off. The Grantee agrees that, in connection with any public offering by the Company of its equity securities pursuant to a
registration statement filed under the Securities Act of 1933, as amended, or the rules or regulations promulgated thereunder, the Grantee shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of or
otherwise dispose of any Company Stock without the prior written consent of the Company or its underwriters, for such period of time before or after the effective date of such registration as may be requested by the Company or such underwriters,
provided that all similarly situated Company Stock recipients are subject to a similar lock-up restriction. 
 10. General Provisions:

 (a) This Agreement, together with the Plan, represents the entire agreement between the parties with respect to the grant of the
Units and may only be modified or amended in a writing signed by both parties. 
 (b) Any notice to the Company provided for in this
Agreement shall be addressed to the Company in care of the Compensation Committee at 4222 Emperor Boulevard, Suite 200, Durham, North Carolina, 27703-8466, 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 overnight courier or enclosed in a properly sealed envelope addressed as
stated above deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 
 (c) Either
party’s failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this
Agreement. The rights granted both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances. 
 (d) The Grantee agrees upon request to execute any further documents or instruments necessary or desirable to carry out the purposes or intent of
this Agreement. 
 (e) The grant of Units hereunder shall not confer upon the Grantee any right to continue in the employ of the
Company or any of its subsidiaries or affiliates. 
  

 - 3 - 

 (f) The Committee may from time to time impose any conditions on the Units or the Company Stock
underlying the Units as it deems necessary or advisable to ensure that the Plan and this Grant satisfy the conditions of Rule 16b-3, and that Units are issued and the underlying Company Stock are resold in compliance with the Securities Act of 1933,
as amended. 
 (g) This Agreement shall be governed by, and enforced in accordance with, the laws of the State of North Carolina
without regard to the application of the principals of conflicts or choice of laws. 
 (h) This Agreement may be executed, including
execution by facsimile signature, in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument. 
 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first set forth above. 
  

			
	INSPIRE PHARMACEUTICALS, INC.
		
	By:	 	  

	Title:	 	  

	
	GRANTEE
	  

		
	Date:	 	  

	
	  

	  

	 (Address)

  

 - 4 -Form of 1995 Stock Plan Director's Nonqualified Stock Option Grant Agreement

 Exhibit 10.6 
 INSPIRE PHARMACEUTICALS, INC. 
 1995 STOCK PLAN 
 DIRECTOR’S NONQUALIFIED STOCK OPTION 
 Inspire
Pharmaceuticals, Inc. (the “Company”) has granted to you a Nonqualified Stock Option (the “Option”) under the Inspire Pharmaceuticals, Inc. 1995 Stock Plan, as amended (the “Plan”). The terms of
the Option are set forth in the Director’s Nonqualified Stock Option Grant Agreement provided to you (the “Agreement”). The following provides a summary of the key terms of the Option; however, you should read the entire
Agreement, along with the terms of the Plan, to fully understand the Option. 
 SUMMARY OF DIRECTOR’S NONQUALIFIED STOCK OPTION

  

			
	Option Number:	 	  

		
	Grantee:	 	  

		
	Date of Grant:	 	  

		
	Vesting Schedule:	 	  

		
	Exercise Price Per Share:	 	  

		
	Total Number of Options Granted:	 	  

		
	Term/Expiration Date:	 	  

 No.          
 INSPIRE PHARMACEUTICALS, INC. 
 1995
STOCK PLAN 
 DIRECTOR’S NONQUALIFIED STOCK OPTION GRANT AGREEMENT 
 This DIRECTOR’S NONQUALIFIED STOCK OPTION GRANT AGREEMENT (the “Agreement”), dated as of
                     (the “Date of Grant”), is delivered by Inspire Pharmaceuticals, Inc. (the “Company”) to
                     (the “Grantee”). 
 RECITALS 
 A. The Inspire Pharmaceuticals, Inc. 1995 Stock Plan, as amended
(the “Plan”) provides for the grant of options to purchase shares of common stock of the Company to non-employee members of the Board of Directors of the Company (the “Board”). The Company 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. 
 B. The Board administers
stock option grants to Board members under the Plan. 
 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                      shares of common stock of the
Company (“Shares”) at an exercise price of                      per Share (the “Exercise Price”). The Option shall become
exercisable according to Paragraph 2 below. This Option has been granted to the Grantee because the Grantee served as [a member or Chairman] of the Board as of the Date of Grant (referred to below as the “Board Position”).

 2. Exercisability of Option. The Option shall become exercisable in the manner provided below, if the Grantee is serving in the Board
Position on the applicable date. For this purpose, the term “Shares” refers to the number of shares underlying that portion of the Option that vests in the manner described under Vest Type and Full Vest Date. The term “Vest Type”
describes how the Option covering those shares will vest before the Full Vest Date. For example, if Vest Type is “monthly”, that Option will vest with respect to those shares on a pro rata basis on each monthly anniversary of the Date of
Grant. The term “Full Vest Date” is the date on which that portion of the Option covering all of the corresponding shares set forth in the “Shares” column will be fully vested. 
  

					
	 Shares
	  	 Vest Type
	  	 Full Vest Date

		  		  	
		  		  	

  

 - 1 - 

 The number of Shares noted on the first line will vest in equal quarterly installments, beginning one quarter after the
date of grant and will fully vest on the corresponding “Full Vest Date.” 
 The exercisability of the Option is cumulative, but shall not exceed
one hundred percent (100%) of the Shares subject to the Option. If the foregoing schedule would produce fractional Shares, the number of Shares for which the Option becomes exercisable shall be rounded down to the nearest whole Share.
Notwithstanding the foregoing, the Option shall cease to vest if and when the Grantee ceases to serve in the Board Position (unless the Board otherwise determines that circumstances warrant continuation of vesting). If the Grantee dies while serving
in the Board Position, all of the unexercised Shares shall become immediately exercisable. 
 3. Term of Option. 
 (a) The Option shall have a term of seven (7) years from the Date of Grant (the “Exercise Period”) 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) If the
Grantee ceases to serve in the Board Position after any portion of the Option becomes exercisable but before the end of the Exercise Period, the Exercise Period shall be shortened as follows: 
 (i) The Exercise Period shall end immediately upon the date of the Grantee’s breach of any agreement, covenant or representation by
and between the Grantee 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; 
 (ii) The Exercise Period shall end immediately upon the date of the Grantee’s 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 the Grantee’s service as a director, consultant, employee or
any other capacity to the Company, or violates any other directive or policy promulgated by the Company; and 
 (iii) The
Exercise Period shall end immediately upon the effective date of the (x) termination of the Grantee’s consulting or director relationship with the Company in violation of an agreement to remain in service with the Company;
(y) involuntary termination of the Grantee’s consulting or director relationship with the Company 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 service for the Company, or violates any other directive or policy promulgated by the
Company; or (z) voluntary termination of his or her consulting or director relationship with the Company in anticipation of involuntary termination. 
  

 - 2 - 

 (c) Notwithstanding the foregoing, in no event may the Option be exercised after the
date that is immediately before the seventh (7th) anniversary of the Date of
Grant. Any portion of the Option that is not exercisable at the time the Grantee ceases to serve in the Board Position shall immediately terminate. 
 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. At such time as the Board shall determine, the Grantee
shall pay the Exercise Price (i) in cash, (ii) by payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board or (iii) by such other method as the Company may approve. The Company 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 Company, 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) 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 Company deems appropriate. 
 (c) 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 Board approval, the Grantee may elect to satisfy any 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. 
 (d) It shall be a condition of
exercise hereunder that: 
 (i) The Company may, in its discretion, require that in the opinion of counsel for the Company the
proposed purchase of Shares shall be exempt from registration under the Securities Act of 1933, as amended; 
 (ii) The
Grantee 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 Grantee, or both; 
 (iii) 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; 
  

 - 3 - 

 (iv) The Grantee 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 Grantee shall be subject to all
provisions therein applicable to holders of Shares; and 
 (v) The Grantee 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. 
 5. Definition of Change in
Control. 
 (a) “Change in Control” means the determination (which may be made effective as of a particular date) by the
Board, made by a majority vote that a Change in Control has occurred, or is about to occur. Such a change shall not include, however, a restructuring, reorganization, merger or other change in capitalization in which the Persons (as defined below)
who own an interest in the Company on the date hereof (the “Current Owners”) (or any individual or entity which receives from a Current Owner an interest in the Company through will or the laws of descent and distribution or
otherwise) maintain more than a fifty percent (50%) interest in the resultant entity. Regardless of the vote of the Board or whether or not the Board votes, a Change in Control will be deemed to have occurred as of the first day any one
(1) or more of the following subsections shall have been satisfied: 
 (b) Any Person (other than the Person in control of the Company
as of the date of this Agreement, or other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or a company owned directly or indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company), becomes the beneficial owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then
outstanding securities, provided, however, in the event there is a Change in Control during the period from July 8, 2009 through July 8, 2010 and this Grant was issued during the period from July 8, 2009 through July 8, 2010,
then the fifty percent (50%) threshold set forth above in this sentence shall be replaced with thirty-five percent (35%); or 
 (c) The
stockholders of the Company approve: 
 (i) A plan of complete liquidation of the Company; 
 (ii) An agreement for the sale or disposition of all or substantially all of the Company’s assets; or 
 (iii) A merger, consolidation or reorganization of the Company with or involving any other company, other than a merger, consolidation or
reorganization that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least
fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization. 
  

 - 4 - 

 (d) However, in no event shall a Change in Control be deemed to have occurred, with respect to the
Grantee, if the Grantee is part of a purchasing group which consummates the Change in Control transaction. The Grantee shall be deemed “part of the purchasing group” for purposes of the preceding sentence if the Grantee is an equity
participant or has agreed to become an equity participant in the purchasing company or group (except for (i) passive ownership of less than five percent (5%) of the voting securities of the purchasing company; or (ii) ownership of
equity participation in the purchasing company or group which is otherwise deemed not to be significant, as determined prior to the Change in Control by a majority of the continuing non-employee directors). 
 (e) For purposes of this Paragraph 5 the term “Person(s)” shall have the meaning given in Section 3(a)(9) of the Securities Exchange Act
of 1934 (the “Exchange Act”), as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries; (ii) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its subsidiaries; (iii) an underwriter temporarily holding securities pursuant to an offering of such securities; (iv) a corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company; or (v) an entity or entities which are eligible to file and have filed a Schedule 13G under Rule 13d-l(b) of the Exchange Act, which Schedule
indicates beneficial ownership of fifteen percent (15%) or more of the outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities. 
 6. Consequences of a Change in Control. 
 (a)
Notice. Upon a Change in Control, if the Option is outstanding (including, for purposes of this Paragraph 6, any portion of the Option that is outstanding), the Company shall provide the Grantee written notice of such Change in Control.

 (b) Assumption of Grants. Upon a Change in Control where the Company is not the surviving corporation (or survives only as a
subsidiary of another corporation), the outstanding Option shall be assumed by, or replaced with comparable options by, the surviving corporation (or a parent or subsidiary of the surviving corporation). 
 (c) Acceleration. Notwithstanding anything in the Plan to the contrary, if the Grantee ceases to serve as a director of the Company as a result of
a Change in Control within two (2) years following such Change in Control, all outstanding Options shall automatically accelerate and become fully exercisable. 
 (d) Optional Cash Out. Notwithstanding anything herein to the contrary, in the event of a Change in Control during the period from July 8, 2009 through July 8, 2010 where the Company is not the
surviving corporation (or survives only as a subsidiary of another corporation), the Grantee may surrender the outstanding Option in exchange for payment by the Company, in cash or Company Stock (as elected by the Grantee) in an amount equal to the
amount by which the then Fair Market Value (as defined below) of the shares of Company Stock underlying the Option exceeds the Exercise Price of the Grantee’s unexercised Option. For purposes of this paragraph “Fair Market Value” per
Share shall be determined as follows: (i) if the principal trading market for the Shares is a national securities exchange or the Nasdaq National Market, the last reported sale price thereof on the relevant date or (if there were no 

  

 - 5 - 

 
trades on that date) the latest preceding date upon which a sale was reported, or (ii) if the Shares are not principally traded on such exchange or
market, the mean between the last reported “bid” and “asked” prices of the Shares on the relevant date, as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a
customary financial reporting service, as applicable and as the Company determines. If the Shares are not publicly traded or, if publicly traded, is not subject to reported transactions or “bid” or “asked” quotations as set forth
above, the Fair Market Value per Share shall be as determined by the Company. 
 7. Restrictions on Exercise. Except as the Board may otherwise
permit pursuant to the Plan or as provided in Paragraph 11 below, 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, by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution or by a former spouse of the Grantee who obtained the Option pursuant to
a domestic relations order, to the extent that the Option is exercisable pursuant to this Agreement. 
 8. 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 interpretations, regulations
and determinations concerning the Plan established from time to time by the Board 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 Board 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. 
 9. No Rights to Continued
Directorship. The grant of the Option shall not confer upon the Grantee any right to continue to serve as a member of the Board, in any office of the Board, or any committee of the Board. 
 10. No Shareholder Rights. Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the Grantee’s death or
otherwise, shall have any of the rights and privileges of a shareholder with respect to the Shares subject to the Option, until certificates for Shares have been issued upon the exercise of the Option. 
 11. Assignment and Transfers. 
 (a) Except as
provided below, only the Grantee may exercise rights under the Option during the Grantee’s lifetime. The Grantee may not transfer those rights except: (i) by will or by the laws of descent and distribution, (ii) pursuant to a domestic
relations order, or (iii) as otherwise permitted by the Company. When the Grantee dies, the personal representative or other person entitled to succeed to the rights of the Grantee may exercise such rights. 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 Grantee’s will or a domestic relations order. This Agreement may be assigned by
the Company without the Grantee’s consent. 
  

 - 6 - 

 (b) The Grantee may make a lifetime transfer of the Option only to the Grantee’s child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the
Grantee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of assets, and
any other entity in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interest. 
 (c) No
consideration may be given for any transfer of the Option by the Grantee. 
 (d) Transfers may be made only to the extent that they do not
violate any rules and conditions imposed by the Board. 
 (e) Any transferee described above shall be treated as the Grantee for purposes of
all other provisions of this Agreement and the terms of the Plan. 
 12. Certain Capital Changes. 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 Shares 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 Shares or other securities subject to the Option and the proportionate interest of the Grantee shall be maintained as before the occurrence of such event. 
 13. Certain Corporate Transactions. Notwithstanding anything in the Plan to the contrary, 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 Grantee 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 Shares. In lieu of the
foregoing, however, the Board may upon written notice to the Grantee provide that, unless theretofore exercised, the Option shall expire as of the earlier of the end of the Exercise Period or the date specified in such notice which may not be less
than twenty (20) days after the date of such notice. 
 14. 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. 
 15. Notice. Any notice to the Company provided for in this Agreement shall be addressed to the Company in care of the Compensation Committee at 4222 Emperor Boulevard, Suite 200, Durham, North
Carolina, 27703-8466, 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, 

  

 - 7 - 

 
sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, deposited, postage prepaid, in a post office regularly maintained by
the United States Postal Service. 
 **** 
  

 - 8 - 

 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. 
  

			
	INSPIRE PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 I hereby accept the Option described in this Agreement, and I agree to be bound by the terms of the Plan and
this Agreement. I hereby further agree that all the decisions and determinations of the Board shall be final and binding. 
  

			
	Grantee:	 	  

		
	Date:	 	  

  

 - 9 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]