X0303 4 2010-03-18 0 0001040416 INSPIRE PHARMACEUTICALS INC ISPH 0001230708 STAAB THOMAS R II C/O INSPIRE PHARMACEUTICALS, INC. 4222 EMPEROR BLVD., SUITE 200 DURHAM NC 27703 0 1 0 0 CFO & Treasurer Stock Option (Right to Buy) 6.08 2010-03-18 4 A 0 22000 0 A 2017-03-17 Common Stock 22000 22000 D Restricted Stock Units 2010-03-18 4 A 0 2200 0 A Common Stock 2200 2200 D Shall vest over four (4) years as follows: 25% on the first anniversary of the date of grant, and thereafter in thirty-six (36) monthly installments after the first anniversary date until fully vested. Shall vest as follows: 25% on June 1, 2011; 25% on June 1, 2012; 25% on June 1, 2013 and 25% on June 1, 2014. Each Restricted Stock Unit represents a contingent right to receive one share of the common stock of Inspire Pharmaceuticals, Inc. The shares will be delivered following the end of the scheduled vesting date or 60 days following an earlier vesting date that occurs as a result of the grantee's separation from service. /s/ Thomas R. Staab II 2010-03-22