Document:

Amended and Restated Equity Compensation Grant Policy

 Exhibit 10.54 
 INSPIRE PHARMACEUTICALS, INC. 
 EQUITY COMPENSATION GRANT POLICY 
  

			
	Amended and Restated: December 18, 2009	 	Page 1 of 6

  
  
 The Inspire Pharmaceuticals, Inc.
Amended and Restated 2005 Equity Compensation Plan, as amended (the “2005 Plan”) permits Inspire Pharmaceuticals, Inc. (the “Company”) to provide (i) designated employees of the Company, (ii) certain consultants and
advisors who perform services for the Company, and (iii) non-employee members of the Board of Directors of the Company (the “Board”) with the opportunity to receive various forms of equity compensation, including grants of stock
options, stock awards and restricted stock units. The Company’s Amended and Restated 1995 Stock Plan, as amended (the “1995 Plan”) also provides designated employees, consultants and directors with the opportunity to receive grants of
non-qualified stock options and stock awards. This Equity Compensation Grant Policy is intended to act as a guideline for the issuance of equity compensation, including stock options and stock awards, under the 2005 Plan and the 1995 Plan. The
Company reserves the right, upon the approval of the Board or the Compensation Committee of the Board (the “Compensation Committee”), to depart from these guidelines in any manner consistent with the 2005 Plan and the 1995 Plan, as
applicable, and applicable law as it deems appropriate. The 2005 Plan and the 1995 Plan are collectively referred to herein as the “Plans.” 
  

	A.	Retention (Quarterly) Equity Compensation Grants. 

  

	 	1)	Frequency. The Company expects to make equity compensation awards, including stock options, under the Plans to its eligible employees four (4) times per
calendar year for retention and incentive purposes. These grants are known as “Retention Grants.” Notwithstanding the foregoing, the Board, the Compensation Committee or the Option Grant Committee, as applicable, may adjust the frequency
of Retention Grants or choose not to make one or more Retention Grant. 

  

	 	2)	 Timing. Retention Grants to officers subject to Section 16b-3 of the Securities Exchange Act (“Executive Officers”) shall be made
at a meeting of the Board or the Compensation Committee held at a fixed meeting date occurring from two to five business days following the filing of each of the Company’s quarterly reports on Form 10-Q and annual reports on Form 10-K (each, a
“Date of Grant”), which meeting dates shall be established to the extent practicable prior to the filing of the report pertaining to the meeting date. Retention Grants to all employees not subject to Section 16b-3 of the Securities
Exchange Act (“Non-Executive Officer Employees”) shall either be made at the meeting of the Board or the Compensation Committee described immediately above or by action of the Company’s Option Grant Committee (the “Option Grant
Committee”). The Option Grant Committee shall be comprised of the Chairman of the Compensation Committee and Chief Executive Officer of the Company or such

  

 - 1 - 

			
	INSPIRE EQUITY COMPENSATION GRANT POLICY	  	PAGE
 2
 OF 6

  

	 	other persons as determined by the Board from time to time. To the extent any Retention Grants are to be made by action of the Option Grant Committee with respect to
Non-Executive Officer Employees, such action shall take place on the same date as the meeting of the Board or the Compensation Committee, as applicable. 

  

	 	3)	Exercise Price. The exercise price for stock options included in a Retention Grant shall be equal to the closing sales price of the common stock of the Company
(or the closing bid, if no sales were reported) as listed on the Nasdaq Global Market of the National Association of Securities Dealers, Inc. on the Date of Grant, or if the Date of Grant is not a trading day, on the last market trading day prior to
the Date of Grant, as reported in The Wall Street Journal or such other source as the Board, the Compensation Committee, or the Option Grant Committee, as applicable, deems reliable. 

  

	 	4)	Number. Semi-annual performance evaluations shall be made to assist management in making recommendations relating to the number of shares underlying Retention
Grants. However, as set forth above, the Company expects to make Retention Grants four (4) times per year. As a result, the amount of shares recommended in relation to each semi-annual performance evaluation shall serve as the basis for the
determination of the Board, the Compensation Committee or the Option Grant Committee, as the case may be, of the number of shares underlying two sequential Retention Grants as follows: 

 (a) First Annual Grant - following Form 10-K. The terms of the Retention Grants issued to Executive Officers following
the filing of the Company’s Annual Report on Form 10-K, including the number of shares underlying such Retention Grants, shall be established by the Board or the Compensation Committee based upon the first semi-annual performance evaluations.
The Number of shares underlying Retention Grants to Non-Executive Officer Employees following the filing of the Company’s Annual Report on Form 10-K, shall be approved by the Option Grant Committee (or the Board or the Compensation Committee,
as the case may be) based upon the first semi-annual performance evaluations and the recommendations of the employees’ managers within share ranges previously established by the Board or the Compensation Committee. 
 (b) Second Annual Grant - following First Quarter Form 10-Q. The number of shares underlying Retention Grants to
employees following the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31st shall be made in a manner consistent with the first annual grant described above, based upon the first semi-annual performance
evaluations and any subsequent events as deemed appropriate by the Board, the Compensation Committee or Option Grant Committee, as applicable. 
 (c) Third Annual Grant - following Second Quarter Form 10-Q. The terms of the Retention Grants issued to Executive Officers following the filing of

  

 - 2 - 

			
	INSPIRE EQUITY COMPENSATION GRANT POLICY	  	PAGE
 3
 OF 6

  

 
the Company’s Quarterly Report on Form 10-Q for the period ending June 30th of each year, including the number of shares underlying such Retention Grants, shall be established by the
Board or the Compensation Committee based upon the second semi-annual performance evaluations. The Number of shares underlying Retention Grants to Non-Executive Officer Employees following the filing of the Company’s Quarterly Report on Form
10-Q for the period ending June 30th, shall be approved by the Option Grant Committee (or the Board or the Compensation Committee, as the case may be) based upon the second semi-annual performance evaluations and the recommendations of the
employees manager within a share range previously established by the Board or the Compensation Committee. 
 (d)
Fourth Annual Grant - following Third Quarter Form 10-Q. The number of shares underlying Retention Grants to employees following the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30th shall be
made in a manner consistent with the third annual grant described above, based upon the second semi-annual performance evaluations and any subsequent events as deemed appropriate by the Board, the Compensation Committee or Option Grant Committee, as
applicable. 
 (e) Miscellaneous. Although the Company anticipates that the number of shares underlying
Retention Grants to be issued following the filing of the first and third Quarterly Reports on Form 10-Q will typically be the same as the number of shares underlying options issued following the filing of the Annual Report on Form 10-K and the
second Quarterly Report on Form 10-Q, respectively, the Board, the Compensation Committee or the Option Grant Committee, as applicable, may adjust the number of shares underlying any option to be issued, or choose not to grant an option, at any time
on or prior to the Date of Grant if intervening circumstances warrant such a change. 
  

	 	5)	Allocation of Retention Grants to Executive Officers. Commencing with the first annual grant in 2010, unless otherwise specifically determined by the Board or
the Compensation Committee, the value of Retention Grants to Executive Officers shall be allocated between stock options and restricted stock units on an 80%/20% basis. In accordance with Section 3(a) of the 2005 Plan, any shares issued in
connection with Retention Grants shall reduce the Total Share Pool (as defined under the 2005 Plan) by one for each stock option and two for each restricted stock unit. 

  

	 	6)	Approval. The terms and conditions of all Retention Grants to be granted to Executive Officers shall be approved by the Board or the Compensation Committee on
the Date of Grant. The terms and conditions of Retention Grants to be granted to all Non-Executive Officer Employees shall be approved by the Board, the Compensation Committee, or the Option Grant Committee, as applicable, on the Date of Grant.

  

	 	7)	 Stock Options. Stock options included in Retention Grants issued under the 2005 Plan will be incentive stock options to the extent permissible
under the 2005

  

 - 3 - 

			
	INSPIRE EQUITY COMPENSATION GRANT POLICY	  	PAGE
 4
 OF 6

  

	 	 
Plan and applicable law and will be non-qualified stock options with respect to any remaining portion. All stock options included in Retention Grants issued under the 1995 Plan will be
non-qualified stock options. 

  

	 	8)	Term; Vesting; Exercisability. The Board, the Compensation Committee, or the Option Grant Committee, as applicable, shall determine the term of all Retention
Grants, when and under what circumstances Retention Grants shall vest, and when, and under what circumstances, applicable portions of Retention Grants shall become exercisable; provided, however, that any Retention Grants made by the Option Grant
Committee shall be subject to limitations established from time-to-time by the Board or the Compensation Committee; provided, further, that all Retention Grants shall be subject to the vesting provisions contained in the Plans and any agreements
related thereto, including without limitation the vesting provisions under the change of control agreements entered into by the Company and its respective Executive Officers. 

  

	B.	Recruiting “New Hire” Stock Option Grants. 

  

	 	1)	Frequency. The Company expects to make awards of stock options under the Plans to select newly hired eligible employees as a recruiting device. These stock
option grants are known as “New Hire” grants. 

  

	 	2)	Timing. To the extent the Company decides to make New Hire grants, New Hire grants will be made on (i) the last business day prior to the 16th of each
month, and (ii) the last business day of each month, whichever day first follows the date on which the newly hired employee commences providing active services to the Company (each, a “New Hire Grant Date”). In the event the Board,
the Compensation Committee, or the Option Grant Committee is not available to act on any such New Hire Grant Date, the applicable New Hire grants will be made on the next New Hire Grant Date. 

  

	 	3)	Exercise Price. The exercise price for each New Hire grant shall be equal to the closing sales price of the common stock of the Company (or the closing bid, if
no sales were reported) as listed on the Nasdaq Global Market on the New Hire Grant Date, or if the New Hire Grant Date is not a trading day, for the last market trading day prior to the New Hire Grant Date, as reported in The Wall Street Journal or
such other source as the Board, the Compensation Committee, or the Option Grant Committee, as applicable, deems reliable. 

  

	 	4)	Number. The number of shares underlying New Hire grants shall be determined based upon the employee’s level within the organization, experience and
compensation and, in the case of certain applicable employees, the terms and conditions of any employment agreement, offer letter or like document. Furthermore, any New Hire grants made by the Option Grant Committee shall be subject to limitations
established from time-to-time by the Board or the Compensation Committee. 

  

 - 4 - 

			
	INSPIRE EQUITY COMPENSATION GRANT POLICY	  	PAGE
 5
 OF 6

  

	 	5)	Approval. The terms and conditions of all New Hire grants to be granted to Executive Officers shall be approved by the Board or the Compensation Committee on the
New Hire Grant Date. The terms and conditions of New Hire grants to all Non-Executive Officer Employees shall be approved by the Compensation Committee, the Board, or the Option Grant Committee, as applicable, on the New Hire Grant Date.

  

	 	6)	Type. All New Hire grants issued under the 2005 Plan shall be incentive stock options to the extent permissible under the 2005 Plan and applicable law and will
be non-qualified stock options with respect to any remaining portion. All New Hire grants issued under the 1995 Plan will be non-qualified stock options. 

  

	 	7)	Term; Vesting; Exercisability. The Board, the Compensation Committee, or the Option Grant Committee, as applicable, shall determine the term of all New Hire
grants, when and under what circumstances New Hire grants shall vest, and when, and under what circumstances, New Hire grants shall become exercisable; provided, however, that any New Hire grants made by the Option Grant Committee shall be subject
to limitations established from time-to-time by the Board or the Compensation Committee; provided, further, that all Retention Grants shall be subject to the vesting provisions contained in the Plans and any agreements related thereto, including
without limitation the vesting provisions under the change of control agreements entered into by the Company and its respective Executive Officers. 

  

	 	8)	Option Grant Committee Information. The Company shall provide to the members of the Compensation Committee on or prior to each regularly scheduled meeting of the
Compensation Committee, a report providing information on a per employee, per grant basis relating to each option grant authorized by the Option Grant Committee covering the time period from the end of the period covered by the previous report
through the most recent practicable date. The Company shall also provide additional reports, to the extent requested by the Compensation Committee, showing aggregate annual reports by the Option Grant Committee. 

  

	C.	Other Equity Compensation Awards. Equity compensation awards (including without limitation stock awards and restricted stock units) to Executive Officers
and Non-Executive Officer Employees, other than Retention Grants and New Hire grants which shall be made in accordance with the provisions set forth above, shall be made only by the Board or the Compensation Committee at a meeting of the Board or
the Compensation Committee, as applicable, previously scheduled for the purpose of reviewing employee performance evaluations or making Retention Grants. 

  

	D.	Non-employee Directors. Equity compensation awards to non-employee Directors shall be governed by the Board Compensation Policy, as amended from time to
time. 

  

	E.	 Consultants and Advisors. Equity compensation awards to consultants and advisors who perform services for the Company (who are not
employers or directors) shall be

  

 - 5 - 

			
	INSPIRE EQUITY COMPENSATION GRANT POLICY	  	PAGE
 6
 OF 6

  

	 	 
made only by the Board or the Compensation Committee at a previously scheduled meeting of the Board or the Compensation Committee, as applicable. 

  

 - 6 -Amended and Restated Director Compensation Policy

 Exhibit 10.55 
 INSPIRE PHARMACEUTICALS, INC. 
 DIRECTOR COMPENSATION POLICY 
  

			
	Amended and Restated: December 18, 2009 	 	Page 1 of 5

  
  
 All non-employee members (each, a
“Director” and, collectively, the “Directors”) of the Inspire Pharmaceuticals, Inc. (the “Company”) Board of Directors (the “Board”) shall receive the following compensation pursuant to this Director
Compensation Policy (this “Policy”): 
  

	A.	Cash Compensation. 

 1. Each Director shall receive $40,000 annually to cover general availability and participation in meetings and conference calls of the Board; 
 2. Each member of the Audit Committee, Corporate Governance Committee, Compensation Committee and Development Committee shall receive $15,000 annually to cover general availability and participation in
Audit Committee conference calls and meetings; 
 3. The Chairman of each of the committees identified above shall receive an
additional $15,000 annually, for a total of $30,000 in respect of service for such committee; and 
 4. All cash compensation
payments made pursuant to this Policy shall be paid quarterly in arrears as soon as practicable, but not later than 10 days, after the last day of such quarter. 
  

	B.	Equity Compensation – Stock Option Grants. 

 1. A stock option grant in a number of shares equal in value to $80,000, rounded to the nearest whole number, which value shall be based on the closing price of the Company’s common stock on the date
of grant, will be granted to each Director upon initial election to the Board, which stock option will vest over three years commencing on the date of grant as follows: 40% of such shares in year one (10% of the total shares per quarter), 30% of
such shares in year two (7.5% of the total shares per quarter) and 30% of such shares in year three (7.5% of the total shares per quarter); provided, however, that all vesting will cease if the Director resigns from the Board or
otherwise ceases to serve as Director, unless the Board determines that the circumstances warrant continuation of vesting; 
 2.
A stock option grant in a number of shares equal in value to $40,000, rounded to the nearest whole number, which value shall be based on the closing price of the

			
	INSPIRE DIRECTOR COMPENSATION POLICY	  	PAGE
 2
 OF 5

  

 Company’s common stock on the date of grant, will be granted to
each Director at the time of each annual meeting of the Board of Directors, which stock option will vest over the one year period commencing on the date of grant (25% of the total shares per quarter); provided, however, that all
vesting will cease if the Director resigns from the Board or otherwise ceases to serve as Director, unless the Board determines that the circumstances warrant continuation of vesting; and 
 3. A stock option grant in a number of shares equal in value to $20,000, rounded to the nearest whole number, which value
shall be based on the closing price of the Company’s common stock on the date of grant, will be granted to the Chairman of the Board at the time of the annual meeting of the Board of Directors, which stock option grant will vest over the one
year period commencing on the date of grant (25% of the total shares per quarter); provided, however, that all vesting will cease if such person resigns from the position of Chairman of the Board or otherwise ceases to serve as
Chairman of the Board, unless the Board determines that the circumstances warrant continuation of vesting. 
  

	C.	Equity Compensation – Restricted Stock Units. 

 1. A restricted stock unit grant in a number of units equal in value to $80,000, rounded to the nearest whole number, which value shall be based on the closing price of the Company’s common stock on
the date of grant, will be granted to each Director upon initial election to the Board, which grant will vest over three years as follows: 40% of such units on June 1st of the year following the date of grant, 30% of such units on June 1st
of the second year following the date of grant, and 30% of such units on June 1st of the third year following the date of grant (or the date of the annual meeting of stockholders such year, if earlier); provided, however, that all
vesting will cease if the Director resigns from the Board or otherwise ceases to serve as Director, unless the Board determines that the circumstances warrant continuation of vesting; 
 2. A restricted stock unit grant in a number of shares equal in value to $40,000, rounded to the nearest whole number, which value shall be
based on the closing price of the Company’s common stock on the date of grant, will be granted to each Director at the time of each annual meeting of the Board of Directors, which grant will vest on June 1st of the year following the date
of grant (or the date of the annual meeting of stockholders such year, if earlier); provided, however, that all vesting will cease if the Director resigns from the Board or otherwise ceases to serve as Director, unless the Board
determines that the circumstances warrant continuation of vesting; and 
 3. A restricted stock unit grant in a number of shares
equal in value to $20,000, rounded to the nearest whole number, which value shall be based on the closing price of the Company’s common stock on the date of grant, will be granted to the Chairman of the Board at the time of the annual meeting
of the Board of Directors, which grant will vest on June 1st of the year following the date of grant (or the date of the annual meeting of stockholders such year, if earlier); provided, however, that all vesting will cease if such
person resigns from the position of Chairman of the Board or otherwise ceases to serve as

			
	INSPIRE DIRECTOR COMPENSATION POLICY	  	PAGE
 3
 OF 5

  

 
Chairman of the Board, unless the Board determines that the circumstances warrant continuation of vesting. 
  

	D.	Equity Compensation – Miscellaneous. All equity compensation awarded pursuant to this Policy (other than equity compensation granted pursuant to
Paragraph E and, in certain circumstances options granted pursuant to Paragraph B.1 and restricted stock units grant pursuant to Paragraph C.1) shall be granted on the date of the annual meeting of the Board of Directors. The exercise price for each
share available under a stock option will be equal to the closing price of the Company’s common stock on the date of grant. No equity compensation granted pursuant to this Policy shall be awarded for a fraction of a share.

  

	E.	Vacancies. In the event that a Director is appointed to fill a vacancy on the Board, any Committee of the Board, or as Chairman of the Board, the Board
will determine the amount and timing of cash and equity compensation appropriate to provide such Director with comparable compensation for the period such Director will so serve for the remainder of the term. 

  

	F.	Effective Date. All provisions of this Policy shall be effective as of January 1, 2010; provided, however, that all equity compensation
provisions of this Policy shall be effective on the date of the 2010 annual meeting of the Board of Directors for Directors serving on the Board prior to January 1, 2010. 

  

	G.	Change of Control Provisions. Notwithstanding the foregoing, all equity compensation granted under this Policy shall vest immediately if: (i) there
is a Change of Control (as hereinafter defined); and (ii) the optionee will cease to serve as a Director of the Company as a result of such Change of Control. 

 1. For purposes of this Policy, a “Change of 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 of 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 of 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: 
  

	 	(a)	 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 thirty-five percent

			
	INSPIRE DIRECTOR COMPENSATION POLICY	  	PAGE
 4
 OF 5

  

	 	 
(35%) of the combined voting power of the Company’s then outstanding securities; or 

  

	 	(b)	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. 

 2. However, in no event shall a Change of Control be deemed to have occurred, with respect to the optionee, if the optionee is part of a
purchasing group which consummates the Change of Control transaction. The optionee shall be deemed “part of the purchasing group” for purposes of the preceding sentence if the optionee 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 of Control by a majority of the continuing non-employee Directors). 
 3. For purposes of this Paragraph G, “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 (A) the Company or any of its subsidiaries; (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its
subsidiaries; (C) an underwriter temporarily holding securities pursuant to an offering of such securities; (D) 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 (E) 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. 
  

	H.	Equity Ownership Guidelines. 

 1. To further align the interests of the Directors with stockholders, the Board has established the following minimum stock ownership guidelines that apply to the Directors: 

			
	INSPIRE DIRECTOR COMPENSATION POLICY	  	PAGE
 5
 OF 5

  

 each Director is expected to own shares of the Company’s common stock or common
stock equivalents equal in value to three times the amount of their annual cash retainer, which annual cash retainer amount is set forth in Section A.1 above. 
 2. Equity that counts toward satisfaction of these guidelines include: shares of the Company’s common stock purchased on the open market by the Director and his or her immediate family members who
share the same household, whether held individually or jointly; shares of the Company’s common stock acquired through stock option exercise; restricted stock, restricted stock units and deferred stock units, where the restrictions have lapsed;
and shares of common stock beneficially owned in a trust for estate planning purposes. 
 3. To achieve the ownership amount set
forth in this guideline, until these guidelines are met, it is expected that each Director will retain at least fifty percent (50%) of the net number of shares of common stock received upon the exercise of a stock option or vesting of other
equity compensation received from the Company after accounting for the sale of shares necessary to pay applicable taxes associated therewith. 
 4. There may be instances where these guidelines would place a severe hardship on a Director or prevent a Director from complying with a court order. In these circumstances, upon the request of a
Director, the Board or the Compensation Committee of the Board will make a decision as to whether an exemption will be granted and an alternative equity ownership guideline established for the applicable Director that reflects the intention of these
guidelines and the Director’s individual circumstances.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]