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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A (RULE 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENTSCHEDULE 14A INFORMATION

ProxyStatementPursuanttoSection14(a)oftheSecuritiesExchangeActof1934(AmendmentNo.1)

FiledbytheRegistrant☒ FiledbyaPartyotherthantheRegistrant o

Checktheappropriatebox: o PreliminaryProxyStatement o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))☒ DefinitiveProxyStatement o DefinitiveAdditionalMaterials o SolicitingMaterialPursuantto§240.14a-12

Inspire Medical Systems, Inc. (NameofRegistrantasSpecifiedinitsCharter)

(NameofPerson(s)FilingProxyStatement,ifotherthantheRegistrant)PaymentofFilingFee(Checktheappropriatebox):☒ Nofeerequired. o FeecomputedontablebelowperExchangeActRules14a-6(i)(1)and0-11. (1) Titleofeachclassofsecuritiestowhichtransactionapplies: (2) Aggregatenumberofsecuritiestowhichtransactionapplies: (3) PerunitpriceorotherunderlyingvalueoftransactioncomputedpursuanttoExchangeActRule0-11(setforththeamount

onwhichthefilingfeeiscalculatedandstatehowitwasdetermined): (4) Proposedmaximumaggregatevalueoftransaction: (5) Totalfeepaid:  o Feepaidpreviouslywithpreliminarymaterials. o CheckboxifanypartofthefeeisoffsetasprovidedbyExchangeActRule0-11(a)(2)andidentifythefilingforwhichthe

offsettingfeewaspaidpreviously.Identifythepreviousfilingbyregistrationstatementnumber,ortheFormorScheduleandthedateofitsfiling.

(1) AmountPreviouslyPaid: (2) Form,ScheduleorRegistrationStatementNo.: (3) FilingParty: (4) DateFiled:

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Explanatory Note

InspireMedicalSystems,Inc.(the“Company”)isfilingthisAmendmentNo.1(“AmendmentNo.1”)toitsdefinitiveproxystatementonSchedule14AfiledwiththeSecuritiesandExchangeCommissiononMarch16,2020(the“OriginalFiling”)inconnectionwiththeCompany’sannualmeetingofstockholderstobeheldonApril30,2020.ThisAmendmentNo.1correctsinformationreportedinthesectionentitled“DirectorCompensation”toreflecttheannualequityawardgrantedtotheCompany’snon-employeedirectorspursuanttotheCompany’snon-employeedirectorcompensationpolicyandtocorrecttheamountofcashfeespaidtoorearnedbyMs.EronyduringthefiscalyearendedDecember31,2019.Exceptasspecificallydiscussedherein,thisAmendmentNo.1doesnototherwisemodifyorupdateanyotherdisclosurespresentedintheOriginalFiling.Inaddition,thisAmendmentNo.1doesnotreflecteventsoccurringafterthedateoftheOriginalFilingormodifyorupdatedisclosuresthatmayhavebeenaffectedbysubsequentevents.

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Inspire Medical Systems, Inc. 5500 Wayzata Blvd., Suite 1600

Golden Valley, MN 55416

March16,2020

DearFellowStockholders:

OnbehalfoftheBoardofDirectors,Icordiallyinviteyoutoattendthe2020annualmeetingofstockholders(the“AnnualMeeting”)ofInspireMedicalSystems,Inc.,whichwillbeheldonThursday,April30,2020,beginningat8:00a.m.CentralTime.TheAnnualMeetingwillbeacompletelyvirtualmeeting,whichwillbeconductedvialivewebcast.

InaccordancewiththeSecuritiesandExchangeCommissionrulesallowingcompaniestofurnishproxymaterialstotheirstockholdersovertheInternet,wehavesentstockholdersofrecordatthecloseofbusinessonMarch6,2020aNoticeofInternetAvailabilityofProxyMaterials.ThenoticecontainsinstructionsonhowtoaccessourProxyStatementandAnnualReportandvoteonline.IfyouwouldliketoreceiveaprintedcopyofourproxymaterialsfromusinsteadofdownloadingaprintableversionfromtheInternet,pleasefollowtheinstructionsforrequestingsuchmaterialsincludedinthenotice,aswellasintheattachedProxyStatement.

AttachedtothisletterareaNoticeofAnnualMeetingofStockholdersandProxyStatement,whichdescribethebusinesstobeconductedatthemeeting.

Yourvoteisimportanttous.Pleaseactassoonaspossibletovoteyourshares.ItisimportantthatyoursharesberepresentedatthemeetingwhetherornotyouplantoattendtheannualmeetingviatheInternet.PleasevoteelectronicallyovertheInternet,bytelephoneorif,youreceiveapapercopyoftheproxycardbymail,byreturningyoursignedproxycardintheenvelopeprovided.YoumayalsovoteyoursharesonlineduringtheAnnualMeeting.InstructionsonhowtovotewhileparticipatingatthemeetingliveviatheInternetarepostedatwww.virtualshareholdermeeting.com/INSP2020.

OnbehalfoftheBoardofDirectorsandmanagement,itismypleasuretoexpressourappreciationforyourcontinuedsupport.

  MarilynCarlsonNelson

Chair of the Board

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Inspire Medical Systems, Inc. 5500 Wayzata Blvd., Suite 1600

Golden Valley, MN 55416

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 30, 2020

NOTICE IS HEREBY GIVENthattheAnnualMeetingofStockholdersofInspireMedicalSystems,Inc.,aDelawarecorporation,willbeheldonThursday,April30,2020,at8:00a.m.CentralTime.TheAnnualMeetingwillbeacompletelyvirtualmeeting,whichwillbeconductedvialivewebcast.YouwillbeabletoattendtheAnnualMeetingonlineandsubmityourquestionsduringthemeetingbyvisitingwww.virtualshareholdermeeting.com/INSP2020.ForinstructionsonhowtoattendandvoteyoursharesattheAnnualMeeting,seetheinformationintheaccompanyingProxyStatementinthesectiontitled“GeneralInformationabouttheAnnualMeetingandVoting—HowcanIattendandvoteattheAnnualMeeting?”

TheAnnualMeetingisbeingheld:

1. toelectGaryL.Ellis,MuditK.Jain,Ph.D.,andDanaG.Mead,Jr.asClassIIdirectorstoholdofficeuntiltheCompany’sannualmeetingofstockholderstobeheldin2023anduntiltheirrespectivesuccessorshavebeendulyelectedandqualified;

2. toratify,inanon-bindingvote,theappointmentofErnst&YoungLLPasourindependentregisteredpublicaccountingfirmfor2020;

3. toapprove,onanadvisory(non-binding)basis,thecompensationofournamedexecutiveofficers;

4. toapprove,onanadvisory(non-binding)basis,thefrequencyoffutureadvisoryvotesonthecompensationofournamedexecutiveofficers;and

5. totransactsuchotherbusinessasmayproperlycomebeforetheAnnualMeetingoranycontinuation,postponementoradjournmentthereof.

TheseitemsofbusinessaredescribedintheProxyStatementthatfollowsthisnotice.HoldersofrecordofourcommonstockasofthecloseofbusinessonMarch6,2020areentitledtonoticeofandtovoteattheAnnualMeeting,oranycontinuation,postponementoradjournmentthereof.

Yourvoteisimportant.VotingyourshareswillensurethepresenceofaquorumattheAnnualMeetingandwillsaveustheexpenseoffurthersolicitation.Please promptly vote your shares by following the instructions for voting on the Notice Regarding theAvailability of Proxy Materials or, if you received a paper or electronic copy of our proxy materials, by completing, signing,dating and returning your proxy card or by Internet or telephone voting as described on your proxy card. ByOrderoftheBoardofDirectors

  TimothyP.Herbert

President, Chief Executive Officer and Secretary

GoldenValley,MNMarch16,2020

ThisNoticeofAnnualMeetingandProxyStatementarefirstbeingdistributedormadeavailable,asthecasemaybe,onoraboutMarch16,2020.

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting: This Proxy Statement and ourAnnual Report are available free of charge at www.proxyvote.com.

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TABLE OF CONTENTS PageGENERAL INFORMATION ABOUT THE ANNUAL MEETING AND VOTING 1WhenandwherewilltheAnnualMeetingbeheld? 1WhatarethepurposesoftheAnnualMeeting? 1ArethereanymatterstobevotedonattheAnnualMeetingthatarenotincludedinthisProxyStatement? 1WhydidIreceiveanoticeinthemailregardingtheInternetavailabilityofproxymaterialsinsteadofapapercopyofproxymaterials? 2

WhatdoesitmeanifIreceivemorethanoneNoticeandAccessCardormorethanonesetofproxymaterials? 2CanIvotemysharesbyfillingoutandreturningtheNoticeandAccessCard? 2WhoisentitledtovoteattheAnnualMeeting? 2Whatisthedifferencebetweenbeinga“recordholder”andholdingsharesin“streetname”? 2WhatdoIdoifmysharesareheldin“streetname”? 2HowmanysharesmustbepresenttoholdtheAnnualMeeting? 3Whatare“brokernon-votes”? 3WhatifaquorumisnotpresentattheAnnualMeeting? 3HowdoIvotemyshareswithoutattendingtheAnnualMeeting? 3HowcanIattendandvoteattheAnnualMeeting? 3Whatifduringthecheck-intimeorduringtheAnnualMeetingIhavetechnicaldifficultiesortroubleaccessingthevirtualmeetingwebsite? 4

HowdoestheBoardrecommendthatIvote? 4Howmanyvotesarerequiredtoapproveeachproposal? 4WhatifIdonotspecifyhowmysharesaretobevoted? 5Whowillcountthevotes? 5CanIrevokeorchangemyvoteafterIsubmitmyproxy? 5Whowillpayforthecostofthisproxysolicitation? 6Whyholdavirtualmeeting? 6

PROPOSAL NO. 1 ELECTION OF DIRECTORS 7BoardSizeandStructure 7CurrentDirectorsandTerms 7NomineesforDirector 7InformationAboutBoardNomineesandContinuingDirectors 7NomineesforElectiontoThree-YearTermsExpiringNoLaterthanthe2023AnnualMeeting 8ClassIIIDirectorsWhoseTermsExpireatthe2021AnnualMeetingofStockholders 9ClassIDirectorsWhoseTermsExpireatthe2022AnnualMeetingofStockholders 9BoardRecommendation 10

PROPOSAL NO. 2 RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM 11AppointmentofIndependentRegisteredPublicAccountingFirm 11Audit,Audit-Related,TaxandAllOtherFees 11Pre-ApprovalPoliciesandProcedures 11BoardRecommendation 12AuditCommitteeReport 12

EXECUTIVE OFFICERS 13CORPORATE GOVERNANCE 14CorporateGovernanceGuidelines 14BoardLeadershipStructure 14DirectorIndependence 15BoardCommittees 15

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PageAuditCommittee 15CompensationCommittee 16NominatingandCorporateGovernanceCommittee 17BoardandBoardCommitteeMeetingsandAttendance 17ExecutiveSessions 18DirectorAttendanceatAnnualMeetingofStockholders 18DirectorNominationsProcess 18BoardRoleinRiskOversight 19CommitteeChartersandCorporateGovernanceGuidelines 19CodeofBusinessConductandEthics 20Anti-HedgingPolicy 20CommunicationswiththeBoard 20

EXECUTIVE COMPENSATION 21Overview 21StockholderInputonExecutiveCompensation 21SummaryCompensationTable 21NarrativetoSummaryCompensationTable 22OutstandingEquityAwardsatFiscalYear-End 27

DIRECTOR COMPENSATION 28Non-EmployeeDirectorCompensationPolicy 28

STOCK OWNERSHIP 30SecurityOwnershipofCertainBeneficialOwnersandManagement 30DelinquentSection16(a)Reports 31

CERTAIN TRANSACTIONS WITH RELATED PERSONS 32PoliciesandProceduresonTransactionswithRelatedPersons 32ParticipationinOurInitialPublicOffering 32InvestorRightsAgreement 32VotingAgreement 32RightofFirstRefusalandCo-SaleAgreement 33DirectorandOfficerIndemnificationandInsurance 33

PROPOSAL NO. 3 APPROVAL, ON AN ADVISORY (NON-BINDING) BASIS, OF THE COMPENSATION OFOUR NAMED EXECUTIVE OFFICERS 34Background 34BoardRecommendation 34

PROPOSAL NO. 4 APPROVAL, ON AN ADVISORY (NON-BINDING) BASIS, OF THE FREQUENCY OFFUTURE ADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS 35Background 35BoardRecommendation 35

STOCKHOLDER PROPOSALS AND DIRECTOR NOMINATIONS 36HOUSEHOLDING 362019 ANNUAL REPORT 36

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Inspire Medical Systems, Inc. 5500 Wayzata Blvd., Suite 1600

Golden Valley, MN 55416

PROXY STATEMENT FOR THE ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD ON APRIL 30, 2020

Thisproxystatement(the“ProxyStatement”)andourannualreportforthefiscalyearendedDecember31,2019(the“AnnualReport”and,togetherwiththeProxyStatement,the“proxymaterials”)arebeingfurnishedbyandonbehalfoftheboardofdirectors(the“Board”orthe“BoardofDirectors”)ofInspireMedicalSystems,Inc.(the“Company,”“Inspire,”“we,”“us,”or“our”),inconnectionwithour2020annualmeetingofstockholders(the“AnnualMeeting”).ThisNoticeofAnnualMeetingandProxyStatementarefirstbeingdistributedormadeavailable,asthecasemaybe,onoraboutMarch16,2020.

GENERAL INFORMATION ABOUT THE ANNUAL MEETING AND VOTING

When and where will the Annual Meeting be held?

TheAnnualMeetingwillbeheldonThursday,April30,2020at8:00a.m.CentralTime.TheAnnualMeetingwillbeacompletelyvirtualmeeting,whichwillbeconductedvialivewebcast.YouwillbeabletoattendtheAnnualMeetingonlineandsubmityourquestionsduringthemeetingbyvisitingwww.virtualshareholdermeeting.com/INSP2020andenteringyour16-digitcontrolnumberincludedinyourNoticeofInternetAvailabilityofProxyMaterials,onyourproxycardorontheinstructionsthataccompaniedyourproxymaterials.Ifyouloseyour16-digitcontrolnumber,youmayjointheAnnualMeetingasa“Guest”butyouwillnotbeabletovote,askquestionsoraccessthelistofstockholdersasoftheasofthecloseofbusinessonMarch6,2020(the“RecordDate”).

What are the purposes of the Annual Meeting?

ThepurposeoftheAnnualMeetingistovoteonthefollowingitemsdescribedinthisProxyStatement:

• ProposalNo.1:ElectionofthedirectornomineeslistedinthisProxyStatement.

• ProposalNo.2:RatificationoftheappointmentofErnst&YoungLLPasourindependentregisteredpublicaccountingfirmfor2020.

• ProposalNo.3:Approval,onanadvisory(non-binding)basis,ofthecompensationofournamedexecutiveofficers.

• ProposalNo.4:Approval,onanadvisory(non-binding)basis,ofthefrequencyoffutureadvisoryvotesonthecompensationofournamedexecutiveofficers.

Are there any matters to be voted on at the Annual Meeting that are not included in this Proxy Statement?

AtthedatethisProxyStatementwenttopress,wedidnotknowofanymatterstobeproperlypresentedattheAnnualMeetingotherthanthosereferredtointhisProxyStatement.Ifothermattersareproperlypresentedatthemeetingoranyadjournmentorpostponementthereofforconsideration,andyouareastockholderofrecordandhavesubmittedaproxycard,thepersonsnamedinyourproxycardwillhavethediscretiontovoteonthosemattersforyou.

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Why did I receive a notice in the mail regarding the Internet availability of proxy materials instead of a paper copy of proxymaterials?

TherulesoftheSecuritiesandExchangeCommission(the“SEC”)permitustofurnishproxymaterials,includingthisProxyStatementandtheAnnualReport,toourstockholdersbyprovidingaccesstosuchdocumentsontheInternetinsteadofmailingprintedcopies.Stockholderswillnotreceivepapercopiesoftheproxymaterialsunlesstheyrequestthem.Instead,theNoticeofInternetAvailabilityofProxyMaterials(the“NoticeandAccessCard”)providesinstructionsonhowtoaccessandreviewontheInternetalloftheproxymaterials.TheNoticeandAccessCardalsoinstructsyouastohowtoauthorizeviatheInternetortelephoneyourproxytovoteyoursharesaccordingtoyourvotinginstructions.Ifyouwouldliketoreceiveapaperoremailcopyofourproxymaterials,youshouldfollowtheinstructionsforrequestingsuchmaterialsdescribedintheNoticeandAccessCard.

What does it mean if I receive more than one Notice and Access Card or more than one set of proxy materials?

Itmeansthatyoursharesareheldinmorethanoneaccountatthetransferagentand/orwithbanksorbrokers.Pleasevoteallofyourshares.Toensurethatallofyoursharesarevoted,foreachNoticeandAccessCardorsetofproxymaterials,pleasesubmityourproxybyphone,viatheInternet,or,ifyoureceivedprintedcopiesoftheproxymaterials,bysigning,datingandreturningtheenclosedproxycardintheenclosedenvelope.

Can I vote my shares by filling out and returning the Notice and Access Card?

No.TheNoticeandAccessCardidentifiestheitemstobevotedonattheAnnualMeeting,butyoucannotvotebymarkingtheNoticeandAccessCardandreturningit.Ifyouwouldlikeapaperproxycard,youshouldfollowtheinstructionsintheNoticeandAccessCard.ThepaperproxycardyoureceivewillalsoprovideinstructionsastohowtoauthorizeviatheInternetortelephoneyourproxytovoteyoursharesaccordingtoyourvotinginstructions.Alternatively,youcanmarkthepaperproxycardwithhowyouwouldlikeyoursharesvoted,signtheproxycardandreturnitintheenvelopeprovided.

Who is entitled to vote at the Annual Meeting?

HoldersofrecordofsharesofourcommonstockasofthecloseofbusinessontheRecordDatewillbeentitledtonoticeofandtovoteattheAnnualMeetingandanycontinuation,postponementoradjournmentthereof.AtthecloseofbusinessontheRecordDate,therewere24,159,436sharesofourcommonstockissuedandoutstandingandentitledtovote.EachshareofourcommonstockisentitledtoonevoteonanymatterpresentedtostockholdersattheAnnualMeeting.YouwillneedtoobtainyourownInternetaccessifyouchoosetoattendtheAnnualMeetingonlineand/orvoteovertheInternet.

ToattendandparticipateintheAnnualMeeting,youwillneedthe16-digitcontrolnumberincludedinyourNoticeandAccessCard,onyourproxycardorontheinstructionsthataccompaniedyourproxymaterials.Ifyoursharesareheldin“streetname,”youshouldcontactyourbankorbrokertoobtainyour16-digitcontrolnumberorotherwisevotethroughthebankorbroker.Ifyouloseyour16-digitcontrolnumber,youmayjointheAnnualMeetingasa“Guest”butyouwillnotbeabletovote,askquestionsoraccessthelistofstockholdersasoftheRecordDate.Themeetingwebcastwillbeginpromptlyat8:00a.m.CentralTime.Weencourageyoutoaccessthemeetingpriortothestarttime.Onlinecheck-inwillbeginat7:45a.m.CentralTime,andyoushouldallowampletimeforthecheck-inprocedures.

What is the difference between being a “record holder” and holding shares in “street name”?

Arecordholder(alsocalleda“registeredholder”)holdssharesinhisorhername.Sharesheldin“streetname”meansthatsharesareheldinthenameofabank,brokerorothernomineeontheholder’sbehalf.

What do I do if my shares are held in “street name”?

Ifyoursharesareheldinabrokerageaccountorbyabankorotherholderofrecord,youareconsideredthe“beneficialowner”ofsharesheldin“streetname.”TheNoticeandAccessCardortheproxymaterials,ifyouelectedtoreceiveahardcopy,hasbeenforwardedtoyoubyyourbroker,bankorothernomineewhoisconsidered,withrespecttothoseshares,thestockholderofrecord.Asthebeneficialowner,youhavetherighttodirectyourbroker,bankorotherholderofrecordonhowtovoteyoursharesbyfollowingtheirinstructionsforvoting.Pleaserefertoinformationfromyourbank,brokerorothernomineeonhowtosubmityourvotinginstructions.

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How many shares must be present to hold the Annual Meeting?

AquorummustbepresentattheAnnualMeetingforanybusinesstobeconducted.TheholdersofamajorityinvotingpoweroftheCompany’scapitalstockissuedandoutstandingandentitledtovote,presentinperson,orbyremotecommunication,orrepresentedbyproxyconstitutesaquorum.Ifyousignandreturnyourpaperproxycardorauthorizeaproxytovoteelectronicallyortelephonically,yourshareswillbecountedtodeterminewhetherwehaveaquorumevenifyouabstainorfailtovoteasindicatedintheproxymaterials.

Brokernon-voteswillalsobeconsideredpresentforthepurposeofdeterminingwhetherthereisaquorumfortheAnnualMeeting.

What are “broker non-votes”?

A“brokernon-vote”occurswhensharesheldbyabrokerin“streetname”forabeneficialownerarenotvotedwithrespecttoaproposalbecause(1)thebrokerhasnotreceivedvotinginstructionsfromthestockholderwhobeneficiallyownsthesharesand(2)thebrokerlackstheauthoritytovotethesharesattheirdiscretion.

UndercurrentNewYorkStockExchange(“NYSE”)interpretationsthatgovernbrokernon-votes,ProposalNos.1,3and4areconsiderednon-discretionarymatters,andabrokerwilllacktheauthoritytovoteuninstructedsharesattheirdiscretiononsuchproposals.ProposalNo.2isconsideredadiscretionarymatter,andabrokerwillbepermittedtoexerciseitsdiscretiontovoteuninstructedsharesonthisproposal.

What if a quorum is not present at the Annual Meeting?

IfaquorumisnotpresentorrepresentedatthescheduledtimeoftheAnnualMeeting,(i)thechairpersonoftheAnnualMeetingor(ii)amajorityinvotingpowerofthestockholdersentitledtovoteattheAnnualMeeting,presentelectronicallyorrepresentedbyproxy,mayadjourntheAnnualMeetinguntilaquorumispresentorrepresented.

How do I vote my shares without attending the Annual Meeting?

WerecommendthatstockholdersvotebyproxyeveniftheyplantoattendtheAnnualMeetingandvoteelectronically.Ifyouareastockholderofrecord,therearethreewaystovotebyproxy:

• byTelephone—Youcanvotebytelephonebycalling1-800-690-6903andfollowingtheinstructionsontheproxycard;

• byInternet—YoucanvoteovertheInternetatwww.proxyvote.combyfollowingtheinstructionsontheInternetNoticeorproxycard;or

• byMail—Youcanvotebymailbysigning,datingandmailingtheproxycard,whichyoumayhavereceivedbymail.

TelephoneandInternetvotingfacilitiesforstockholdersofrecordwillbeavailable24hoursadayandwillcloseat11:59p.m.,EasternTime,onApril29,2020.

Ifyoursharesareheldinthenameofabank,brokerorotherholderofrecord,youwillreceiveinstructionsonhowtovotefromthebank,brokerorholderofrecord.Youmustfollowtheinstructionsofsuchbank,brokerorholderofrecordinorderforyoursharestobevoted.

How can I attend and vote at the Annual Meeting?

WewillbehostingtheAnnualMeetingliveviaaudiowebcast.AnystockholdercanattendtheAnnualMeetingliveonlineatwww.virtualshareholdermeeting.com/INSP2020.IfyouwereastockholderasoftheRecordDate,oryouholdavalidproxyfortheAnnualMeeting,youcanvoteattheAnnualMeeting.AsummaryoftheinformationyouneedtoattendtheAnnualMeetingonlineisprovidedbelow:

• InstructionsonhowtoattendandparticipateviatheInternet,includinghowtodemonstrateproofofstockownership,arepostedatwww.virtualshareholdermeeting.com/INSP2020.

• AssistancewithquestionsregardinghowtoattendandparticipateviatheInternetwillbeprovidedatwww.virtualshareholdermeeting.com/INSP2020onthedayoftheAnnualMeeting.

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• Webcaststartsat8:00a.m.CentralTime.

• Youwillneedyour16-DigitControlNumbertoentertheAnnualMeeting.

• StockholdersmaysubmitquestionswhileattendingtheAnnualMeetingviatheInternet.

• WebcastreplayoftheAnnualMeetingwillbeavailableuntilApril30,2021.

ToattendandparticipateintheAnnualMeeting,youwillneedthe16-digitcontrolnumberincludedinyourNoticeandAccessCard,onyourproxycardorontheinstructionsthataccompaniedyourproxymaterials.Ifyoursharesareheldin“streetname,”youshouldcontactyourbankorbrokertoobtainyour16-digitcontrolnumberorotherwisevotethroughthebankorbroker.Ifyouloseyour16-digitcontrolnumber,youmayjointheAnnualMeetingasa“Guest”butyouwillnotbeabletovote,askquestionsoraccessthelistofstockholdersasoftheRecordDate.

What if during the check-in time or during the Annual Meeting I have technical difficulties or trouble accessing the virtualmeeting website?

Wewillhavetechniciansreadytoassistyouwithanytechnicaldifficultiesyoumayhaveaccessingthevirtualmeetingwebsite.Ifyouencounteranydifficultiesaccessingthevirtualmeetingwebsiteduringthecheck-inormeetingtime,pleasecallthetechnicalsupportnumberthatwillbepostedontheAnnualMeetingloginpage.

How does the Board recommend that I vote?

TheBoardrecommendsthatyouvote:

• FORthenomineestotheBoardsetforthinthisProxyStatement.

• FORtheratificationoftheappointmentofErnst&YoungLLPasourindependentregisteredpublicaccountingfirmfor2020.

• FORtheapproval,onanadvisory(non-binding)basis,ofthecompensationofournamedexecutiveofficers.

• ONEYEARontheapproval,onanadvisory(non-binding)basis,ofthefrequencyoffutureadvisoryvotesonthecompensationofournamedexecutiveofficers.

How many votes are required to approve each proposal?

Thetablebelowsummarizestheproposalsthatwillbevotedon,thevoterequiredtoapproveeachitemandhowvotesarecounted:

Proposal Votes Required Voting Options

Impact of “Withhold” or “Abstain” Votes

Broker Discretionary

Voting AllowedProposalNo.1:ElectionofDirectors

Thepluralityofthevotescast.ThismeansthatthethreenomineesreceivingthehighestnumberofaffirmativeFORvoteswillbeelectedasClassIIdirectors.

“FORALL”“WITHHOLDALL”“FORALLEXCEPT”

None(1) No(3)

ProposalNo.2:RatificationofAppointmentofIndependentRegisteredPublicAccountingFirm

Theaffirmativevoteoftheholdersofamajorityinvotingpowerofthevotescastaffirmativelyornegatively(excludingabstentions)attheAnnualMeetingbytheholdersentitledtovotethereon.

“FOR”“AGAINST”“ABSTAIN”

None(2) Yes(4)

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Proposal Votes Required Voting Options

Impact of “Withhold” or “Abstain” Votes

Broker Discretionary

Voting AllowedProposalNo.3:Approval,onanadvisory(non-binding)basis,ofthecompensationofournamedexecutiveofficers

Theaffirmativevoteoftheholdersofamajorityinvotingpowerofthevotescastaffirmativelyornegatively(excludingabstentions)attheAnnualMeetingbytheholdersentitledtovotethereon.

“FOR”“AGAINST”“ABSTAIN”

None(2) No(3)

ProposalNo.4:Approval,onanadvisory(non-binding)basis,ofthefrequencyoffutureadvisoryvotesonthecompensationofournamedexecutiveofficers

Thefrequencythatreceivestheaffirmativevoteoftheholdersofamajorityinvotingpowerofthevotescast(excludingabstentions)attheAnnualMeetingbytheholdersentitledtovotethereon.Ifnofrequencyreceivestheforegoingvote,thenwewillconsidertheoptionofONEYEAR,TWOYEARS,orTHREEYEARSthatreceivedthehighestnumberofvotescasttobethefrequencyrecommendedbystockholders.

“ONEYEAR”“TWOYEARS”“THREEYEARS”

“ABSTAIN”

None(2) No(3)

(1) Votesthatare“withheld”willhavethesameeffectasanabstentionandwillnotcountasavote“FOR”or“AGAINST”adirector,becausedirectorsareelectedbypluralityvoting.

(2) Avotemarkedasan“Abstention”isnotconsideredavotecastandwill,therefore,notaffecttheoutcomeofthisproposal.

(3) Asthisproposalisnotconsideredadiscretionarymatter,brokerslackauthoritytoexercisetheirdiscretiontovoteuninstructedsharesonthisproposal.

(4) Asthisproposalisconsideredadiscretionarymatter,brokersarepermittedtoexercisetheirdiscretiontovoteuninstructedsharesonthisproposal.

What if I do not specify how my shares are to be voted?

Ifyousubmitaproxybutdonotindicateanyvotinginstructions,thepersonsnamedasproxieswillvoteinaccordancewiththerecommendationsoftheBoard.TheBoard’srecommendationsaresetforthabove,aswellaswiththedescriptionofeachproposalinthisProxyStatement.

Who will count the votes?

RepresentativesofBroadridgeInvestorCommunicationsServices(“Broadridge”)willtabulatethevotes,andarepresentativeofBroadridgewillactasinspectorofelection.

Can I revoke or change my vote after I submit my proxy?

Yes.WhetheryouhavevotedbyInternet,telephoneormail,ifyouareastockholderofrecord,youmaychangeyourvoteandrevokeyourproxyby:

• sendingawrittenstatementtothateffecttotheattentionofourSecretaryatourcorporateoffices,providedsuchstatementisreceivednolaterthanApril29,2020;

• votingagainbyInternetortelephoneatalatertimebeforetheclosingofthosevotingfacilitiesat11:59p.m.,Easterntime,onApril29,2020;

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• submittingaproperlysignedproxycardwithalaterdatethatisreceivednolaterthanApril29,2020;or

• attendingtheAnnualMeeting,revokeyourproxyandvotingagain.

Ifyouholdsharesinstreetname,youmaysubmitnewvotinginstructionsbycontactingyourbank,brokerorothernominee.YoumayalsochangeyourvoteorrevokeyourproxyattheAnnualMeetingifyouobtainasignedproxyfromtherecordholder(broker,bankorothernominee)givingyoutherighttovotetheshares.

YourmostrecentproxycardortelephoneorInternetproxyistheonethatiscounted.YourattendanceattheAnnualMeetingbyitselfwillnotrevokeyourproxyunlessyougivewrittennoticeofrevocationtotheCompanybeforeyourproxyisvotedoryouvoteattheAnnualMeeting.

Who will pay for the cost of this proxy solicitation?

Wewillpaythecostofsolicitingproxies.Proxiesmaybesolicitedonourbehalfbydirectors,officersoremployees(fornoadditionalcompensation)inpersonorbytelephone,electronictransmissionandfacsimiletransmission.Brokersandothernomineeswillberequestedtosolicitproxiesorauthorizationsfrombeneficialownersandwillbereimbursedfortheirreasonableexpenses.

Why hold a virtual meeting?

Weareexcitedtocontinueusingthelatesttechnologytoprovideexpandedaccess,improvedcommunicationandcostsavingsforourstockholdersandtheCompanywhileprovidingstockholdersthesamerightsandopportunitiestoparticipateastheywouldhaveatanin-personmeeting.Furthermore,aspartofourefforttomaintainasafeandhealthyenvironmentforourdirectors,membersofmanagementandstockholderswhowishtoattendtheAnnualMeeting,inlightofthenovelcoronavirusdisease,COVID-19,webelievethathostingavirtualmeetingisinthebestinterestoftheCompanyanditsstockholdersandenablesincreasedstockholderattendanceandparticipationbecausestockholderscanparticipatefromanylocationaroundtheworld.

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PROPOSAL NO. 1 ELECTION OF DIRECTORS

Board Size and Structure

Ourcertificateofincorporationascurrentlyineffect(“CertificateofIncorporation”)providesthatthenumberofdirectorsshallbeestablishedfromtimetotimebyourBoardofDirectors.OurBoardofDirectorshasfixedthenumberofdirectorsatnine,andwecurrentlyhaveninedirectorsservingontheBoard.

OurCertificateofIncorporationprovidesthattheBoardbedividedintothreeclasses,designatedasClassI,ClassIIandClassIII.Eachclassmustconsist,asnearlyasmaybepossible,ofone-thirdofthetotalnumberofdirectorsconstitutingtheentireBoard.Eachclassofdirectorsmuststandforre-electionnolaterthanthethirdannualmeetingofstockholderssubsequenttotheirinitialappointmentorelectiontotheBoard,providedthatthetermofeachdirectorwillcontinueuntiltheelectionandqualificationofhisorhersuccessorandissubjecttohisorherearlierdeath,resignationorremoval.Generally,vacanciesornewlycreateddirectorshipsontheBoardwillbefilledonlybyvoteofamajorityofthedirectorstheninofficeandwillnotbefilledbythestockholders,unlesstheBoarddeterminesbyresolutionthatanysuchvacancyornewlycreateddirectorshipwillbefilledbythestockholders.AdirectorappointedbytheBoardtofillavacancywillholdofficeuntilthenextelectionoftheclassforwhichsuchdirectorwaschosen,subjecttotheelectionandqualificationofhisorhersuccessorandhisorherearlierdeath,resignationorremoval.

Current Directors and Terms

Ourcurrentdirectorsandtheirrespectiveclassesandtermsaresetforthbelow.Class I Director –

Current Term Ending at 2022 Annual Meeting

Class II Director – Current Term Ending at

This Annual Meeting

Class III Director – Current Term Ending at

2021 Annual MeetingTimothyP.Herbert GaryL.Ellis MarilynCarlsonNelsonChauKhuong MuditK.Jain,Ph.D. JerryC.Griffin,M.D.

ShawnTMcCormick DanaG.Mead,Jr. CaseyM.Tansey

Nominees for Director

Mr.Ellis,Dr.Jain,andMr.MeadhavebeennominatedbytheBoardtostandforelection.AsthedirectorsassignedtoClassII,Mr.Ellis,Dr.Jain,andMr.Mead'scurrenttermsofservicewillexpireattheAnnualMeeting.IfelectedbythestockholdersattheAnnualMeeting,Mr.Ellis,Dr.Jain,andMr.Meadwilleachserveforatermexpiringattheannualmeetingtobeheldin2023(the“2023AnnualMeeting”)andtheelectionandqualificationofhissuccessororuntilhisearlierdeath,resignationorremoval.

Eachpersonnominatedforelectionhasagreedtoserveifelected,andmanagementhasnoreasontobelievethatanynomineewillbeunabletoserve.If,however,priortotheAnnualMeeting,theBoardofDirectorsshouldlearnthatanynomineewillbeunabletoserveforanyreason,theproxiesthatotherwisewouldhavebeenvotedforthisnomineewillbevotedforasubstitutenomineeasselectedbytheBoard.Alternatively,theproxies,attheBoard’sdiscretion,maybevotedforthatfewernumberofnomineesasresultsfromtheinabilityofanynomineetoserve.TheBoardhasnoreasontobelievethatanyofthenomineeswillbeunabletoserve.

Information About Board Nominees and Continuing Directors

ThefollowingpagescontaincertainbiographicalinformationasofMarch6,2020foreachnomineefordirectorandeachdirectorwhosetermasadirectorwillcontinueaftertheAnnualMeeting,includingallpositionsheholds,hisprincipaloccupationandbusinessexperienceforthepastfiveyears,andthenamesofotherpublicly-heldcompaniesofwhichthedirectorornomineecurrentlyservesasadirectororhasservedasadirectorduringthepastfiveyears.

Webelievethatallofourdirectorsandnominees:displaypersonalandprofessionalintegrity;satisfactorylevelsofeducationand/orbusinessexperience;broad-basedbusinessacumen;anappropriatelevelofunderstandingofourbusinessanditsindustryandotherindustriesrelevanttoourbusiness;theabilityandwillingnesstodevoteadequatetimetotheworkofourBoardofDirectorsanditscommittees;skillsandpersonalitythatcomplementthoseofourotherdirectorsthathelpsbuildaboardthatiseffective,collegialandresponsivetotheneedsofourCompany;strategicthinkingandawillingnesstoshareideas;adiversityofexperiences,expertiseand

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background;andtheabilitytorepresenttheinterestsofallofourstockholders.Theinformationpresentedbelowregardingeachnomineeandcontinuingdirectoralsosetsforthspecificexperience,qualifications,attributesandskillsthatledourBoardofDirectorstotheconclusionthatsuchindividualshouldserveasadirectorinlightofourbusinessandstructure.

Nominees for Election to Three-Year Terms Expiring No Later than the 2023 Annual MeetingClass II Directors Age Served as Director Since Current Positions with InspireGaryL.Ellis 63 July2019 DirectorMuditK.Jain,Ph.D. 51 May2009 DirectorDanaG.Mead,Jr. 60 January2008 Director

Gary L. EllishasservedasamemberofourBoardsinceJuly2019.Mr.ElliswasformerlywithMedtronicplcanditssubsidiary,Medtronic,Inc.,aglobalmedicaltechnologycompany,untilhisretirementinDecember2016.WhileatMedtronic,heservedinvariousexecutivecapacities,including:ExecutiveVicePresident,GlobalOperations,InformationTechnologyandFacilities&RealEstateofMedtronicplcfromJune2016toDecember2016;ExecutiveVicePresidentandChiefFinancialOfficerofMedtronic,Inc.fromApril2014toJune2016;SeniorVicePresidentandChiefFinancialOfficerofMedtronic,Inc.fromMay2005toApril2014;andVicePresident,CorporateControllerandTreasurerofMedtronic,Inc.from1999toMay2005.Mr.ElliscurrentlyservesontheboardofdirectorsofTheToroCompany,amanufacturerofoutdoormaintenanceequipment,andHill-RomHoldings,Inc.,amedicalequipmentmanufacturingcompany,andpreviouslyservedontheboardofdirectorsofItamarMedicalLtd.,amakerofhomemedicalequipmentforsleepapnea.Mr.EllisholdsaB.S.inAccountingfromtheUniversityofSouthDakotaandisaCertifiedPublicAccountant(Inactive).WebelieveMr.Ellis’financialexpertiseandextensiveexperienceinthemedicaldeviceindustryenablehimtomakevaluablecontributionstoourBoard.

Mudit K. Jain, Ph.D.hasservedasamemberofourBoardsinceMay2009.Dr.JainhasservedasaFoundingGeneralPartneratStrategicHealthcareInvestmentPartners,aventurecapitalinvestmentfirm,since2018andpreviouslyservedasaManagingDirectoratSynergyVenturePartners,LLC,alsoaventurecapitalinvestmentfirm,from2013toSeptember2018.Dr.JainholdsaB.E.fromtheVisvesvarayaRegionalCollegeofEngineering,anM.B.A.fromtheWhartonSchooloftheUniversityofPennsylvania,andaPh.D.inbiomedicalengineeringfromDukeUniversity.WebelieveDr.Jain'sexperienceasaventurecapitalinvestorandexpertiseinbiomedicalengineeringenablehimtomakevaluablecontributionstoourBoard.

Dana G. Mead, Jr.hasservedasamemberofourBoardsinceJuly2008.Mr.MeadcurrentlyservesastheChiefExecutiveOfficerandPresidentofHeartFlow,Inc.,adigitalhealthcompanytransforminghowheartdiseaseisdiagnosedandtreated.From2016toMay2019,Mr.MeadservedastheChiefExecutiveOfficerandPresidentofBeaver-VisitecInternational,Inc.,asurgicaldevicedeveloperandmanufacturer.From2005to2016,Mr.MeadservedasaPartneratKleinerPerkinsCaufield&Byers,aventurecapitalinvestmentfirm.InadditiontoservingonourBoardofDirectors,Mr.MeadhasservedontheboardofdirectorsofIntersectENT,Inc.sinceJune2015.FromMay2011toDecember2016,Mr.MeadservedontheboardofdirectorsofTeladoc,Inc.,atelehealthcompany.Mr.MeadholdsaB.A.fromLafayetteCollegeandanM.B.A.fromtheUniversityofSouthernCalifornia.WebelieveMr.Mead’sextensivedirectorshipexperienceandhisbroadexperienceinthehealthcareindustryenablehimtomakevaluablecontributionstoourBoard.

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Class III Directors Whose Terms Expire at the 2021 Annual Meeting of StockholdersClass III Directors Age Served as Director Since Current Positions with InspireMarilynCarlsonNelson 80 November2016 ChairoftheBoardJerryC.Griffin,M.D. 75 January2008 DirectorCaseyM.Tansey 62 January2008 Director

Marilyn Carlson NelsonhasservedasamemberofourBoardandasitsChairsinceNovember2016.Since1999,Ms.NelsonhasservedasCo-ChairoftheboardofdirectorsandCo-ChiefExecutiveOfficerofCarlsonHoldings,Inc.,aninternationalholdingscompany.Ms.NelsonpreviouslyservedasamemberoftheboardofdirectorsofCarlson,Inc.,ahospitalityandtravelcompany,from1989to2015,andasitsChiefExecutiveOfficerfrom1998to2008.Ms.NelsonalsoservedontheboardofdirectorsofExxonMobilfrom1991to2012.Ms.NelsonholdsaB.A.ininternationaleconomicsfromSmithCollegeandhonorarydoctoratesfromSmithCollege,theUniversityofMinnesota,Johnson&WalesUniversity,GustavusAdolphusCollege,andtheCollegeofSt.Catherine.WebelieveMs.Nelson’sextensivepublicandprivateboardexperienceandherknowledgeoftheCompanyasoneofourearlyinvestorsenablehertomakevaluablecontributionstoourBoardofDirectors.

Jerry C. Griffin, M.D.hasservedasamemberofourBoardsinceJanuary2008.Since2006,Dr.GriffinhasservedasPresidentofGriffin&Schwartz,ScientificServices,Inc.,amanagementconsultingfirminthehealthcareproductsindustry.FromSeptember2000toJune2006,Dr.GriffinservedasPresident,ChiefExecutiveOfficerandaDirectorofPOINTBiomedicalCorp.,adeveloperofpharmaceuticalproductsforusewithultrasoundimaging.Dr.GriffinhasalsobeenaprofessororassistantprofessorintheDepartmentofMedicine,DivisionofCardiologyatvariousteachinginstitutions.Dr.GriffinholdsaB.S.fromtheUniversityofSouthernMississippiandaM.D.fromtheUniversityofMississippi.WebelieveDr.Griffin'spublicandprivateboardexperienceandhisextensiveexperienceinthehealthcareproductsindustryenablehimtomakevaluablecontributionstoourBoard.

Casey M. TanseyhasservedasamemberofourBoardsinceJanuary2008.SinceAugust2014,Mr.TanseyhasservedasaManagingPartnerofU.S.VenturePartners(“USVP”),aventurecapitalinvestmentfirm,and,fromApril2005toJuly2014,asaManagingMemberofUSVP.Mr.TanseypreviouslyservedontheboardofdirectorsofIntersectENT,Inc.from2006to2017andReshapeMedical,Inc.fromOctober2008toOctober2017.Mr.TanseyholdsaB.S.andM.B.A.fromtheCollegeofNotreDame.WebelieveMr.Casey’sextensiveexperienceinthemedicaldeviceindustryenableshimtomakevaluablecontributionstoourBoard.

Class I Directors Whose Terms Expire at the 2022 Annual Meeting of StockholdersClass I Directors Age Served as Director Since Current Positions with InspireTimothyP.Herbert 57 November2007 ChiefExecutiveOfficer,PresidentandDirectorChauKhuong 44 April2014 DirectorShawnTMcCormick 55 January2017 Director

Timothy P. Herbert,ourfounder,hasservedasourChiefExecutiveOfficerandPresidentandasamemberofourBoardsinceNovember2007.Priortojoiningus,Mr.Herbertspent11yearsatMedtronic,amedicalequipmentdevelopmentcompany,whereheheldmanagementpositionsinproductdevelopment,clinicalresearch,sales,marketing,andhealthcarereimbursement.Mr.HerbertholdsaB.S.inelectricalengineeringfromNorthDakotaStateUniversityandanM.B.A.fromtheUniversityofSt.Thomas.WebelieveMr.Herbert'sexperienceintheindustry,hisroleasourChiefExecutiveOfficerandPresidentandhisknowledgeoftheCompanyenablehimtomakevaluablecontributionstoourBoard.

Chau KhuonghasservedasamemberofourBoardsinceApril2014.Mr.KhuongisaPrivateEquityPartneratOrbiMedAdvisors,L.L.C.,aventurecapitalandassetmanagementfirm,whichhejoinedin2003.Mr.KhuonghasservedontheboardsofdirectorsofAerpioPharmaceuticals,Inc.sinceApril2014,Synlogic,Inc.sinceFebruary2016andBellusHealth,IncsinceDecember2018.Mr.KhuongpreviouslyservedasamemberoftheboardsofdirectorsofOtonomy,Inc.from2013to2016,Pieris,Inc.from2014to2017andNabrivaTherapeuticsplc(formerlyNabrivaTherapeuticsAG)from2015to2017.Mr.KhuongholdsaB.S.inmolecular,cellularanddevelopmentbiologyandanM.P.H.withconcentrationininfectiousdiseases,bothfromYaleUniversity.WebelieveMr.Khuong'sextensivepublicandprivateboardexperienceandhisexperienceasaventurecapitalinvestorenablehimtomakevaluablecontributionstoourBoard.

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Shawn T McCormickhasservedasamemberofourBoardsinceJanuary2017.Mr.McCormickservedasChiefFinancialOfficerofTornierN.V.,aglobalorthopediccompany,fromSeptember2012untilOctober2015whenTorniermergedwithWrightMedicalGroup,Inc.BeforeTornier,Mr.McCormickservedasChiefOperatingOfficerofLutonix,Inc.,amedicaldevicecompany,fromApril2011toFebruary2012andasChiefFinancialOfficerandSeniorVicePresidentofev3Inc.,aglobalendovascularcompany,fromJanuary2009toJuly2010,whenev3wasacquiredbyCovidienplc.From1992to2009,Mr.McCormickheldvariouspositionsatMedtronic,includingasitsVicePresident,CorporateDevelopment,wherehewasresponsibleforleadingMedtronic'sworldwidebusinessdevelopmentactivitiesandVPFinancefortheSpinal,BiologicsandNavigationbusiness.InadditiontoservingonourBoard,Mr.McCormickhasservedontheboardofdirectorsofNevroCorp.since2014,andSurmodics,Inc.since2015.Mr.McCormickalsoservedontheboardofdirectorsofEntellusMedical,Inc.from2014toFebruary2018.Mr.McCormickholdsaB.S.inAccountingfromArizonaStateUniversityandanM.B.A.fromtheUniversityofMinnesota'sCarlsonSchoolofManagementandisacertifiedpublicaccountant(inactive).HeisalsoaNationalAssociationofCorporateDirectorsFellow.WebelieveMr.McCormick'sfinancialexpertiseandextensiveexperienceinthemedicaldeviceindustryenablehimtomakevaluablecontributionstoourBoard.

Board Recommendation

TheBoardofDirectorsunanimouslyrecommendsavoteFORtheelectionofGaryL.Ellis,MuditK.Jain,Ph.D.,andDanaG.Mead,Jr.asClassIIdirectorstoholdofficeuntilthe2023AnnualMeetinganduntiltheirrespectivesuccessorshavebeendulyelectedandqualified.

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PROPOSAL NO. 2 — RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

Appointment of Independent Registered Public Accounting Firm

Theauditcommitteeappointsourindependentregisteredpublicaccountingfirm.Inthisregard,theauditcommitteeevaluatesthequalifications,performanceandindependenceofourindependentregisteredpublicaccountingfirmanddetermineswhethertore-engageourcurrentfirm.Aspartofitsevaluation,theauditcommitteeconsiders,amongotherfactors,thequalityandefficiencyoftheservicesprovidedbythefirm,includingtheperformance,technicalexpertise,industryknowledgeandexperienceoftheleadauditpartnerandtheauditteamassignedtoouraccount;theoverallstrengthandreputationofthefirm;thefirm’sglobalcapabilitiesrelativetoourbusiness;andthefirm’sknowledgeofouroperations.Ernst&YoungLLPhasservedasourindependentregisteredpublicaccountingfirmsince2015.Neithertheaccountingfirmnoranyofitsmembershasanydirectorindirectfinancialinterestinoranyconnectionwithusinanycapacityotherthanasourauditorsandprovidingauditandpermissiblenon-auditrelatedservices.Uponconsiderationoftheseandotherfactors,theauditcommitteehasappointedErnst&YoungLLPtoserveasourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2020.

Althoughratificationisnotrequiredbyourbylawsorotherwise,theBoardissubmittingtheselectionofErnst&YoungLLPtoourstockholdersforratificationbecausewevalueourstockholders’viewsontheCompany’sindependentregisteredpublicaccountingfirmanditisagoodcorporategovernancepractice.Ifourstockholdersdonotratifytheselection,itwillbeconsideredasnoticetotheBoardandtheauditcommitteetoconsidertheselectionofadifferentfirm.Eveniftheselectionisratified,theauditcommittee,initsdiscretion,mayselectadifferentindependentregisteredpublicaccountingfirmatanytimeduringtheyearifitdeterminesthatsuchachangewouldbeinthebestinterestsoftheCompanyanditsstockholders.

RepresentativesofErnst&YoungLLPareexpectedtoattendtheAnnualMeetingandtohaveanopportunitytomakeastatementandbeavailabletorespondtoappropriatequestionsfromstockholders.

Audit, Audit-Related, Tax and All Other Fees

ThetablebelowsetsforththeaggregatefeesbilledtoInspireforservicesrelatedtothefiscalyearsendedDecember31,2019and2018,respectively,byErnst&YoungLLP,ourindependentregisteredpublicaccountingfirm. Year Ended December 31, 2019 2018AuditFees(1) $ 462,155 $ 605,061Audit-RelatedFees(2) — —TaxFees(3) 62,514 55,711AllOtherFees(4) 3,325 2,000Total $ 527,994 $ 662,772

(1) AuditFeesforbothyearspresentedconsistoffeesbilledforprofessionalservicesbyErnst&YoungLLPfortheauditofourannualfinancialstatements,relatedservicesthatarenormallyprovidedinconnectionwithstatutoryandregulatoryfilingsorengagements,and,in2018only,feesinconnectionwithourFormS-1registrationstatementsforourinitialpublicoffering(“IPO”)andourfollow-onoffering.

(2) Audit-RelatedFeesconsistoffeesbilledbyErnst&YoungLLPforassuranceandrelatedservicesthatarereasonablyrelatedtotheperformanceoftheauditorreviewofourfinancialstatements.

(3) TaxFeesconsistoffeesforprofessionalservices,includingtaxconsultingandcomplianceperformedbyErnst&YoungLLP.

(4) AllOtherFeesconsistofanonlineaccountingresearchtoolsubscription.

Pre-Approval Policies and Procedures

Theformalwrittencharterforourauditcommitteerequiresthattheauditcommitteepre-approveallauditservicestobeprovidedtous,whetherprovidedbyourprincipalauditororotherfirms,andallotherservices(review,attestandnon-audit)tobeprovidedtousbyourindependentregisteredpublicaccountingfirm,otherthandeminimisnon-auditservicesapprovedinaccordancewithapplicableSECrules.

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Theauditcommitteehasadoptedapre-approvalpolicythatsetsforththeproceduresandconditionspursuanttowhichauditandnon-auditservicesproposedtobeperformedbyourindependentregisteredpublicaccountingfirmmaybepre-approved.Thispre-approvalpolicygenerallyprovidesthattheauditcommitteewillnotengageanindependentregisteredpublicaccountingfirmtorenderanyaudit,audit-related,taxorpermissiblenon-auditserviceunlesstheserviceiseither(i)explicitlyapprovedbytheauditcommitteeor(ii)enteredintopursuanttothepre-approvalpoliciesandproceduresdescribedinthepre-approvalpolicy.Unlessatypeofservicetobeprovidedbyourindependentregisteredpublicaccountingfirmhasreceivedthislattergeneralpre-approvalunderthepre-approvalpolicy,itrequiresspecificpre-approvalbytheauditcommittee.

Onanannualbasis,theauditcommitteereviewsandgenerallypre-approvestheservices(andrelatedfeelevelsorbudgetedamounts)thatmaybeprovidedbytheCompany’sindependentregisteredpublicaccountingfirmwithoutfirstobtainingspecificpre-approvalfromtheauditcommittee.Theauditcommitteemayrevisethelistofgeneralpre-approvedservicesfromtimetotime,basedonsubsequentdeterminations.Anymemberoftheauditcommitteetowhomthecommitteedelegatesauthoritytomakepre-approvaldecisionsmustreportanysuchpre-approvaldecisionstotheauditcommitteeatitsnextscheduledmeeting.Ifcircumstancesarisewhereitbecomesnecessarytoengagetheindependentregisteredpublicaccountingfirmforadditionalservicesnotcontemplatedintheoriginalpre-approvalcategoriesorabovethepre-approvedamounts,theauditcommitteerequirespre-approvalforsuchadditionalservicesorsuchadditionalamounts.

TheservicesprovidedtousbyErnst&YoungLLPin2018and2019wereprovidedinaccordancewithourpre-approvalpoliciesandprocedures,asapplicable.

Board Recommendation

TheBoardofDirectorsunanimouslyrecommendsavoteFORtheratificationoftheappointmentofErnst&YoungLLPasourindependentregisteredpublicaccountingfirmfor2020.

Audit Committee Report

Theauditcommitteeoperatespursuanttoacharterwhichisreviewedannuallybytheauditcommittee.Additionally,abriefdescriptionoftheprimaryresponsibilitiesoftheauditcommitteeisincludedinthisProxyStatementunderthediscussionof“CorporateGovernance—AuditCommittee.”Undertheauditcommitteecharter,managementisresponsibleforthepreparation,presentationandintegrityoftheCompany’sfinancialstatements,theapplicationofaccountingandfinancialreportingprinciplesandourinternalcontrolsandproceduresdesignedtoassurecompliancewithaccountingstandardsandapplicablelawsandregulations.TheindependentregisteredpublicaccountingfirmisresponsibleforauditingourfinancialstatementsandexpressinganopinionastotheirconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates.

Intheperformanceofitsoversightfunction,theauditcommitteereviewedanddiscussedwithmanagementandErnst&YoungLLP,astheCompany’sindependentregisteredpublicaccountingfirm,theCompany’sauditedfinancialstatementsforthefiscalyearendedDecember31,2019.TheauditcommitteealsodiscussedwiththeCompany’sindependentregisteredpublicaccountingfirmthemattersrequiredtobediscussedbyapplicablestandardsofthePublicCompanyAccountingOversightBoard(the“PCAOB”)andtheSEC.Inaddition,theauditcommitteereceivedandreviewedthewrittendisclosuresandthelettersfromtheCompany’sindependentregisteredpublicaccountingfirmrequiredbyapplicablerequirementsofthePCAOB,regardingsuchindependentregisteredpublicaccountingfirm’scommunicationswiththeauditcommitteeconcerningindependence,anddiscussedwiththeCompany’sindependentregisteredpublicaccountingfirmtheirindependencefromtheCompany.

Baseduponthereviewanddiscussionsdescribedintheprecedingparagraph,theauditcommitteerecommendedtotheBoardthattheCompany’sauditedfinancialstatementsbeincludedinitsAnnualReportonForm10-KforthefiscalyearendedDecember31,2019filedwiththeSEC.

Submitted by the Audit Committee of the Company’s Board of Directors:

ShawnTMcCormick(Chair)MuditK.Jain,Ph.D.DanaG.Mead,Jr.

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EXECUTIVE OFFICERS

ThetablebelowidentifiesandsetsforthcertainbiographicalandotherinformationregardingourexecutiveofficersasofMarch6,2020.Therearenofamilyrelationshipsamonganyofourexecutiveofficersordirectors.

Executive Officer Age PositionIn Current

Position SinceTimothyP.Herbert 57 ChiefExecutiveOfficer,PresidentandDirector 2007RichardJ.Buchholz 52 ChiefFinancialOfficer 2014RandallA.Ban 55 ChiefCommercialOfficer 2009StevenL.Jandrich 53 ChiefComplianceOfficerandVicePresident,HumanResources 2017

See page 9 of this Proxy Statement for Timothy P. Herbert’s biography.

Richard J. BuchholzhasservedasourChiefFinancialOfficersinceMay2014.Priortojoiningus,Mr.BuchholzservedastheChiefFinancialOfficer,SecretaryandTreasureratsuperDimension,Ltd.,amedicaldevicemanufacturer(whichwasacquiredbyCovidienplcinMay2012),fromAugust2006toJuly2013.Mr.BuchholzholdsaB.B.A.fromtheUniversityofWisconsin,EauClaireandisacertifiedpublicaccountant(inactive).

Randall A. BanhasservedasourChiefCommercialOfficersinceJuly2019.Priortothat,heservedasourSeniorVicePresident,SalesandMarketingfromJuly2009toDecember2018and,inDecember2018,histitlewaschangedtoSeniorVicePresident,GlobalSalesandMarketing.Beforejoiningus,heservedasChiefOperatingOfficeratVertebralTechnologiesInc.,amedicaldevicecompany,from2008to2009.From2006to2008,Mr.BanservedasVicePresidentofGlobalMarketing,CRMatBostonScientific.Mr.BanholdsaB.S.inmarketingandanM.B.A.,bothfromIndianaUniversity.

Steven L. JandrichhasservedasourChiefComplianceOfficerandasourVicePresident,HumanResourcessinceSeptember2017.FromMay2015toSeptember2017,Mr.JandrichservedasVicePresident,HumanResourcesforLinkSnacks,Inc.,amultinationalretailsnackproducer,whereheledhumanresourcesfunctionsincludingtalentmanagementandemployeerelations.FromApril2001toApril2015,Mr.JandrichwasanemployeeofSt.JudeMedical,Inc.,andfromJanuary2013toApril2015Mr.JandrichservedasitsVicePresidentofCommercialOperationsandwasresponsibleforestablishingitsglobalsalestrainingprogram.Mr.JandrichholdsaB.B.A.andM.B.A.,bothfromtheUniversityofSt.Thomas.

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CORPORATE GOVERNANCE

Corporate Governance Guidelines

OurBoardofDirectorshasadoptedCorporateGovernanceGuidelines.AcopyoftheseCorporateGovernanceGuidelinescanbefoundinthe“CorporateGovernance—GovernanceDocuments”sectionofthe“Investors”pageofourwebsitelocatedatwww.inspiresleep.com,orbywritingtoourSecretaryatourofficesat5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.AmongthetopicsaddressedinourCorporateGovernanceGuidelinesare:• Boardsize,independenceandqualifications • Stockownership • Executivesessionsofindependentdirectors • Boardaccesstoseniormanagement • Boardleadershipstructure • Boardaccesstoindependentadvisors • Selectionofnewdirectors • Boardself-evaluations • Directororientationandcontinuingeducation • Boardmeetings • Limitsonboardservice • Meetingattendancebydirectorsandnon-directors • Changeofprincipaloccupation • Meetingmaterials • Termlimits • Boardcommittees,responsibilitiesandindependence • Directorresponsibilities • Successionplanning • Directorcompensation

Board Leadership Structure

OurCorporateGovernanceGuidelinesprovideourBoardofDirectorswithflexibilitytocombineorseparatethepositionsofChairpersonoftheBoardandChiefExecutiveOfficerinaccordancewithitsdeterminationthatutilizingoneortheotherstructurewouldbeinthebestinterestsoftheCompanyanditsstockholders.IftheChairpersonoftheBoardisamemberofmanagementordoesnototherwisequalifyasindependent,ourCorporateGovernanceGuidelinesprovidefortheappointmentbytheindependentdirectorsofaleadindependentdirector(the“LeadDirector”).TheLeadDirector’sresponsibilitiesinclude,butarenotlimitedto:presidingoverallmeetingsoftheBoardatwhichtheChairpersonoftheBoardisnotpresent,includinganyexecutivesessionsoftheindependentdirectors;approvingBoardmeetingschedulesandagendas;andactingastheliaisonbetweentheindependentdirectorsandtheChiefExecutiveOfficerandChairpersonoftheBoard.OurCorporateGovernanceGuidelinesprovidethat,atsuchtimesastheChairpersonoftheBoardqualifiesasindependent,theChairpersonoftheBoardwillserveasLeadDirector.

ThepositionsofourChairoftheBoardandourChiefExecutiveOfficerandPresidentarecurrentlyservedbytwoseparatepersons.Ms.NelsonservesasChairmanoftheBoard,andMr.HerbertservesasourChiefExecutiveOfficerandPresident.InhercapacityastheindependentBoardChair,Ms.NelsonperformsthefunctionsoftheLeadDirector.

TheBoardbelievesthatourcurrentleadershipstructureofChiefExecutiveOfficerandChairoftheBoardbeingheldbytwoseparateindividualsisinthebestinterestsoftheCompanyanditsstockholdersandstrikestheappropriatebalancebetweentheChiefExecutiveOfficerandPresident’sresponsibilityforthestrategicdirection,day-today-leadershipandperformanceofourCompanyandtheChairoftheBoard’sresponsibilitytoguideoverallstrategicdirectionofourCompanyandprovideoversightofourcorporategovernanceandguidancetoourChiefExecutiveOfficerandPresidentandtosettheagendaforandpresideoverBoardmeetings.Werecognizethatdifferentleadershipstructuresmaybeappropriateforcompaniesindifferentsituationsandbelievethatnoonestructureissuitableforallcompanies.AccordinglytheBoardwillcontinuetoperiodicallyreviewourleadershipstructureandmakesuchchangesinthefutureasitdeemsappropriateandinthebestinterestsoftheCompanyanditsstockholders.

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Director Independence

UnderourCorporateGovernanceGuidelinesandtheNYSErules,adirectorisnotindependentunlesstheBoardaffirmativelydeterminesthatheorshedoesnothaveadirectorindirectmaterialrelationshipwithusoranyofoursubsidiaries.Inaddition,thedirectormustmeetthebright-linetestsforindependencesetforthbytheNYSErules.

OurBoardhasundertakenareviewofitscomposition,thecompositionofitscommitteesandtheindependenceofourdirectorsandconsideredwhetheranydirectorhasamaterialrelationshipwithusthatcouldcompromisehisorherabilitytoexerciseindependentjudgmentincarryingouthisorherresponsibilities.Baseduponinformationrequestedfromandprovidedbyeachdirectorconcerninghisorherbackground,employmentandaffiliations,includingfamilyrelationships,ourBoardofDirectorshasdeterminedthatnoneofMr.Ellis,Dr.Griffin,Dr.Jain,Mr.Khuong,Mr.McCormick,Mr.Mead,Ms.NelsonorMr.Tansey,representingeightofourninedirectors,hasarelationshipthatwouldinterferewiththeexerciseofindependentjudgmentincarryingouttheresponsibilitiesofadirectorandthateachofthesedirectorsqualifiesas“independent”asthattermisdefinedundertherulesoftheNYSE.OurBoardofDirectorshaddeterminedthatJoyceEronyqualifiedas“independent”duringtheperiodsheservedonourBoarduntilherdepartureonAugust1,2019.Inmakingthesedeterminations,ourBoardofDirectorsconsideredtherelationshipsthateachnon-employeedirectorhaswithusandallotherfactsandcircumstancesourBoardofDirectorsdeemedrelevantindeterminingtheirindependence,includingthedirector’sbeneficialownershipofourcommonstockandtherelationshipsofournon-employeedirectorswithcertainofoursignificantstockholders.

Board Committees

OurBoardofDirectorshasthreestandingcommittees:anauditcommittee,acompensationcommitteeandanominatingandcorporategovernancecommittee,eachofwhichhasthecompositionandtheresponsibilitiesdescribedbelow.Inaddition,fromtimetotime,specialcommitteesmaybeestablishedunderthedirectionofourBoardwhennecessarytoaddressspecificissues.Eachoftheauditcommittee,thecompensationcommitteeandthenominatingandcorporategovernancecommitteeoperatesunderawrittencharter.

DirectorAudit

CommitteeCompensation

CommitteeNominating and Corporate

Governance CommitteeGaryL.Ellis — — ChairJerryC.Griffin,M.D. — X XTimothyP.Herbert — — —MuditK.Jain,Ph.D. X — —ChauKhuong — X —DanaG.Mead,Jr. X — —ShawnT.McCormick Chair — —MarilynCarlsonNelson — — XCaseyM.Tansey — Chair —

Audit Committee

OurauditcommitteeoverseesourcorporateaccountingandfinancialreportingprocessandassistsourBoardofDirectorsinitsoversightof(i)theintegrityofourfinancialstatements,(ii)ourcompliancewithlegalandregulatoryrequirements,(iii)ourriskmanagementprogram,(iv)theperformanceofourindependentauditorand(v)thedesignandimplementationofourinternalauditfunctionandinternalcontrols.Ourauditcommitteeisresponsiblefor,amongotherthings:

• appointing,compensating,retainingandoverseeingtheworkofourindependentauditorandanyotherregisteredpublicaccountingfirmengagedforthepurposeofpreparingorissuinganauditreportorrelatedworkorperformingotheraudit,revieworattestservicesforus;

• discussingwithourindependentauditoranyauditproblemsordifficultiesandmanagement’sresponse;

• pre-approvingallauditandnon-auditservicesprovidedtousbyourindependentauditor(otherthanthoseprovidedpursuanttoappropriatepreapprovalpoliciesestablishedbythecommitteeorexemptfromsuchrequirementunderSECrules);

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• reviewinganddiscussingourannualandquarterlyfinancialstatementswithmanagementandourindependentregisteredpublicaccountingfirm;

• discussingandoverseeingourpolicieswithrespecttoriskassessmentandriskmanagement;and

• establishingproceduresforthereceipt,retentionandtreatmentofcomplaintsreceivedbyusregardingaccounting,internalaccountingcontrolsorauditingmatters,andfortheconfidentialandanonymoussubmissionbyouremployeesofconcernsregardingquestionableaccountingorauditingmatters.

Theauditcommitteemaydelegateitsauthorityunderitschartertooneormoresubcommitteesasitdeemsappropriatefromtimetotime.Theauditcommitteehastheauthoritytoengageindependentlegal,accountingandotheradvisorsasitdeemsnecessaryorappropriatetoassistincarryingoutitsresponsibilities,andwemustpaythecompensationofsuchadvisors.

OurauditcommitteecurrentlyconsistsofDr.Jain,Mr.McCormickandMr.Mead,withMr.McCormickservingaschair.AllmembersofourauditcommitteemeettherequirementsforfinancialliteracyundertheapplicablerulesandregulationsoftheNYSE.OurBoardofDirectorshasaffirmativelydeterminedthateachofDr.Jain,Mr.McCormickandMr.Meadqualifiesas“independent”underNYSE’sadditionalstandardsapplicabletoauditcommitteemembersandRule10A-3oftheExchangeActof1934,asamended(the“ExchangeAct”).Inaddition,ourBoardofDirectorshasdeterminedthatDr.Jain,Mr.McCormickandMr.Meadeachqualifyasan“auditcommitteefinancialexpert,”assuchtermisdefinedinItem407(d)(5)ofRegulationS-K.

Compensation Committee

Ourcompensationcommitteeoverseesourcompensationpolicies,plansandbenefitsprograms.Ourcompensationcommitteeisresponsiblefor,amongotherthings:

• reviewingandapprovingcorporategoalsandobjectiveswithrespecttothecompensationofourChiefExecutiveOfficer,evaluatingourChiefExecutiveOfficer’sperformanceinlightofthesegoalsandobjectivesandsettingtheChiefExecutiveOfficer’scompensation;

• reviewingandsettingormakingrecommendationstoourBoardofDirectorsregardingthecompensationofourotherexecutiveofficers;

• reviewingandmakingrecommendationstoourBoardofDirectorsregardingdirectorcompensation;

• reviewingandapprovingormakingrecommendationstoourBoardofDirectorsregardingourincentivecompensationandequity-basedplansandarrangements;and

• appointingandoverseeinganycompensationconsultants.

Thecompensationcommitteemaydelegateitsauthorityunderitschartertooneormoresubcommitteesasitdeemsappropriatefromtimetotime.

OurcompensationcommitteecurrentlyconsistsofDr.Griffin,Mr.KhuongandMr.Tansey,withMr.Tanseyservingaschair.OurBoardofDirectorshasdeterminedthateachofDr.GriffinandMessrs.KhuongandTanseyqualifyas“independent”underNYSE’sadditionalstandardsapplicabletocompensationcommitteemembersandasa“non-employeedirectors”asdefinedinSection16b-3oftheExchangeAct.

Thecompensationcommitteehastheauthoritytoretainorobtaintheadviceofcompensationconsultants,legalcounselandotheradvisorstoassistincarryingoutitsresponsibilities.Beforeselectinganysuchconsultant,counseloradvisor,thecompensationcommitteereviewsandconsiderstheindependenceofsuchconsultant,counseloradvisorinaccordancewithapplicableNYSErules.Wemustprovideappropriatefundingforpaymentofreasonablecompensationtoanyadvisorretainedbythecompensationcommittee.

Compensation Consultants

Thecompensationcommitteehastheauthorityunderitschartertoretainoutsideconsultantsoradvisors,asitdeemsnecessaryoradvisable.Inaccordancewiththisauthority,thecompensationcommitteehasengagedtheservicesofRadford,whichispartoftheRewardsSolutionspracticeatAonplc,asitsindependentoutsidecompensationconsultant.

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AllexecutivecompensationservicesprovidedbyRadfordduring2019wereconductedunderthedirectionorauthorityofthecompensationcommittee,andallworkperformedbyRadfordwaspre-approvedbythecompensationcommittee.Radford’sservicesduring2019included,amongotherthings,reviewingtheCompany’sexecutivecompensationpolicy,evaluatingtheCompany’speergroupusedtosetexecutivecompensation,providingbenchmarkdataaswellasbroadmarketdataregardingcompensationforexecutivesservinginsimilarcapacitiesand,providinginformationoncurrenttrendsanddevelopmentsinexecutiveanddirectorcompensation.NeitherRadfordnoranyofitsaffiliatesmaintainsanyotherdirectorindirectbusinessrelationshipswithusoranyofoursubsidiaries.ThecompensationcommitteeevaluatedwhetheranyworkprovidedbyRadfordraisedanyconflictofinterestforservicesperformedduring2019anddeterminedthatitdidnot.

Additionally,during2019,Radforddidnotprovideanyservicestousunrelatedtoexecutiveanddirectorcompensation.

Compensation Committee Interlocks and Insider Participation

Duringthe2019fiscalyear,themembersofourcompensationcommitteewereDr.Griffin,Mr.KhuongandMr.Tansey,noneofwhomwas,duringthefiscalyear,anofficeroremployeeoftheCompanyandnoneofwhomwasformerlyanofficeroftheCompany.During2019,noneofourexecutiveofficersservedasamemberoftheboardofdirectorsorcompensationcommittee(orothercommitteeperformingequivalentfunctions)ofanyentitythathadoneormoreexecutiveofficersservingonourBoardorcompensationcommittee.DuringthefiscalyearendedDecember31,2019,nootherrelationshipsrequiredtobedisclosedbytherulesoftheSECexistedasidefromthoseidentifiedherein.

Nominating and Corporate Governance Committee

OurnominatingandcorporategovernancecommitteeoverseesandassistsourBoardofDirectorsinreviewingandrecommendingnomineesforelectionasdirectors.Ournominatingandcorporategovernancecommitteeisresponsiblefor,amongotherthings:

• identifyingindividualsqualifiedtobecomemembersofourBoardofDirectors,consistentwithcriteriaapprovedbyourBoardofDirectors;

• recommendingtoourBoardofDirectorsthenomineesforelectiontoourBoardofDirectorsatannualmeetingsofourstockholders;

• overseeingtheannualself-evaluationsofourBoardofDirectorsandmanagement;and

• developingandrecommendingtoourBoardofDirectorsasetofcorporategovernanceguidelinesandprinciples.

Thenominatingandcorporategovernancecommitteemaydelegateitsauthorityunderitschartertooneormoresubcommitteesasitdeemsappropriatefromtimetotime.Thenominatingandcorporategovernancecommitteehastheauthoritytoretainanysearchfirmtobeusedtoidentifydirectornomineesandindependentlegalandotheradvisorsasitdeemsnecessaryorappropriatetocarryoutitsresponsibilitiesandwewillpaythecompensationofanysuchfirmoradvisorengaged.

OurnominatingandcorporategovernancecommitteecurrentlyconsistsofMr.Ellis,Dr.GriffinandMs.Nelson,withMr.Ellisservingaschair.Ourformerdirector,Ms.Erony,servedasthechairofthenominatingandcorporategovernancecommitteethroughAugust1,2019.OurBoardhasdeterminedthateachofMr.Ellis,Dr.GriffinandMs.Nelsonqualifiesas“independent”underapplicableNYSErulesforpurposesofservingonthenominatingandcorporategovernancecommitteeandMs.Eronyqualifiedas“independent”forsuchpurposeswhilesheservedonthecommittee.

Board and Board Committee Meetings and Attendance

Duringfiscal2019,ourBoardofDirectorsmetsixtimes,theauditcommitteemetfourtimes,thecompensationcommitteemetfivetimesandthenominatingandcorporategovernancecommitteemetseventimes.In2019,eachofourdirectorsattendedatleast80%ofthemeetingsoftheBoardandcommitteesonwhichheorsheservedasamember.

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Executive Sessions

Executivesessions,whicharemeetingsofthenon-managementmembersoftheBoard,areregularlyscheduledthroughouttheyear.Inaddition,atleastonceayear,theindependentdirectorsmeetinaprivatesessionthatexcludesmanagementandanynon-independentdirectors.TheChairoftheBoardpresidesateachofthesemeetingsand,inherabsence,thenon-managementandindependentdirectorsinattendance,asapplicable,determinewhichmemberwillpresideatsuchsession.

Director Attendance at Annual Meeting of Stockholders

WedonothaveaformalpolicyregardingtheattendanceofourBoardmembersatourannualmeetingsofstockholders,butweexpectalldirectorstomakeeveryefforttoattendanymeetingofstockholders.Allofourthen-servingdirectorsattendedourannualmeetingofstockholdersheldin2019.

Director Nominations Process

ThenominatingandcorporategovernancecommitteeisresponsibleforrecommendingcandidatestoserveontheBoardanditscommittees.InconsideringwhethertorecommendanyparticularcandidatetoserveontheBoardoritscommitteesorforinclusionintheBoard’sslateofrecommendeddirectornomineesforelectionattheannualmeetingofstockholders,thenominatingandcorporategovernancecommitteeconsidersthecriteriasetforthinourCorporateGovernanceGuidelines.Specifically,thenominatingandcorporategovernancecommitteeconsiderscandidateswhohaveahighlevelofpersonalandprofessionalintegrity,strongethicsandvaluesandtheabilitytomakematurebusinessjudgments.Inadditiontoanyfactorstheydeemrelevant,thenominatingandcorporategovernancecommitteemayconsider:thecandidate’sexperienceincorporatemanagement,suchasservingasanofficerorformerofficerofapubliclyheldcompany;thecandidate’sexperienceasaboardmemberofanotherpubliclyheldcompany;thecandidate’sprofessionalandacademicexperiencerelevanttotheCompany’sindustry;thestrengthofthecandidate’sleadershipskills;thecandidate’sexperienceinfinanceandaccountingand/orexecutivecompensationpractices;whetherthecandidatehasthetimerequiredforpreparation,participationandattendanceatBoardmeetingsandcommitteemeetings,ifapplicable;andthecandidate’sgeographicbackground,gender,ageandethnicity.

Weconsiderdiversityandviewitameaningfulfactorinidentifyingdirectornominees,butdonothaveaformaldiversitypolicy.Currently,33%ofourBoardisamemberofadiversegenderorethnicgroup.TheBoardevaluateseachindividualinthecontextoftheBoardasawhole,withtheobjectiveofassemblingagroupthathasthenecessarytoolstoperformitsoversightfunctioneffectivelyinlightoftheCompany’sbusinessandstructure.Indeterminingwhethertorecommendadirectorforre-election,thenominatingandcorporategovernancecommitteemayalsoconsiderpotentialconflictsofinterestwiththecandidatesotherpersonalandprofessionpursuits.

Inidentifyingprospectivedirectorcandidates,thenominatingandcorporategovernancecommitteemayseekreferralsfromothermembersoftheBoard,management,stockholdersandothersources,includingthirdpartyrecommendations.Thenominatingandcorporategovernancecommitteealsomay,butneednot,retainathird-partysearchfirminordertoassistitinidentifyingcandidatestoserveasdirectorsoftheCompany.Thenominatingandcorporategovernancecommitteeusesthesamecriteriaforevaluatingcandidatesregardlessofthesourceofthereferralorrecommendation.Whenconsideringdirectorcandidates,thenominatingandcorporategovernancecommitteeseeksindividualswithbackgroundsandqualitiesthat,whencombinedwiththoseofourincumbentdirectors,provideablendofskillsandexperiencetofurtherenhancetheBoard’seffectiveness.Inconnectionwithitsannualrecommendationofaslateofnominees,thenominatingandcorporategovernancecommitteealsomayassessthecontributionsofthosedirectorsrecommendedforre-electioninthecontextoftheBoardevaluationprocessandotherperceivedneedsoftheBoard.

PriortoourinitialpublicofferingandinconnectionwiththeirinvestmentintheCompany,certainofourpre-IPOinvestorswereentitledtodesignateamembertoserveonourBoardpursuanttoaVotingAgreement.PursuanttothisVotingAgreement,Dr.JainwasdesignatedbySynergyLifeSciencePartnersandMr.MeadwasdesignatedbyKPCBHoldings,Inc.Mr.ElliswasidentifiedbymanagementtobeconsideredasanomineetoserveontheBoard.EachofthedirectornomineestobeelectedattheAnnualMeetingwasevaluatedinaccordancewithourstandardreviewprocessfordirectorcandidatesinconnectionwiththeirinitialappointmentandtheirnominationforelectionorre-election,asapplicable,attheAnnualMeeting.TheVotingAgreementterminatedbyitstermsinconnectionwiththeclosingofourIPO,andnoneofourstockholderscurrentlyhaveanycontinuingrightsregardingtheelectionordesignationofmembersofourBoardofDirectors.

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Whenconsideringwhetherthedirectorsandnomineeshavetheexperience,qualifications,attributesandskills,takenasawhole,toenabletheBoardtosatisfyitsoversightresponsibilitieseffectivelyinlightofourbusinessandstructure,theBoardfocusedprimarilyontheinformationdiscussedineachoftheboardmember’sbiographicalinformationsetforthabove.Webelievethatourdirectorsprovideanappropriatemixofexperienceandskillsrelevanttothesizeandnatureofourbusiness.ThisprocessresultedintheBoard’snominationoftheincumbentdirectorsnamedinthisProxyStatementandproposedforelectionbyyouattheAnnualMeeting.

Thenominatingandcorporategovernancecommitteewillconsiderdirectorcandidatesrecommendedbystockholders,andsuchcandidateswillbeconsideredandevaluatedunderthesamecriteriadescribedabove.AnyrecommendationsubmittedtotheCompanyshouldbeinwritingandshouldincludeanysupportingmaterialthestockholderconsidersappropriateinsupportofthatrecommendation,butmustincludeinformationthatwouldberequiredundertherulesoftheSECtobeincludedinaproxystatementsolicitingproxiesfortheelectionofsuchcandidateandawrittenconsentofthecandidatetoserveasoneofourdirectorsifelectedandmustotherwisecomplywiththerequirementsunderourbylawsforstockholderstorecommenddirectornominees.StockholderswishingtoproposeacandidateforconsiderationmaydosobysubmittingtheaboveinformationtotheattentionoftheSecretary,InspireMedicalSystems,Inc.,5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.AllrecommendationsfordirectornominationsreceivedbytheSecretarythatsatisfyourby-lawrequirementsrelatingtosuchdirectornominationswillbepresentedtothenominatingandcorporategovernancecommitteeforitsconsideration.Stockholdersalsomustsatisfythenotification,timeliness,consentandinformationrequirementssetforthinourbylaws.Thesetimingrequirementsarealsodescribedunderthecaption“StockholderProposalsandDirectorNominations.”

Board Role in Risk Oversight

TheBoardofDirectorshasoverallresponsibilityforriskoversight,including,aspartofregularBoardandcommitteemeetings,generaloversightofexecutives’managementofrisksrelevanttotheCompany.Afundamentalpartofriskoversightisnotonlyunderstandingthematerialrisksacompanyfacesandthestepsmanagementistakingtomanagethoserisks,butalsounderstandingwhatlevelofriskisappropriatefortheCompany.TheinvolvementoftheBoardofDirectorsinreviewingourbusinessstrategyisanintegralaspectoftheBoard’sassessmentofmanagement’stoleranceforriskanditsdeterminationofwhatconstitutesanappropriatelevelofriskfortheCompany.WhilethefullBoardhasoverallresponsibilityforriskoversight,itissupportedinthisfunctionbyitsauditcommittee,compensationcommitteeandnominatingandcorporategovernancecommittee.EachofthecommitteesregularlyreportstotheBoard.

TheauditcommitteeassiststheBoardinfulfillingitsriskoversightresponsibilitiesbyperiodicallyreviewingouraccounting,reportingandfinancialpractices,includingtheintegrityofourfinancialstatements,thesurveillanceofadministrativeandfinancialcontrols,ourcompliancewithlegalandregulatoryrequirements,andourenterpriseriskmanagementprogram.Throughitsregularmeetingswithmanagement,includingthefinance,legal,internalaudit,tax,compliance,andinformationtechnologyfunctions,theauditcommitteereviewsanddiscussessignificantareasofourbusinessandsummarizesfortheBoardareasofriskandtheappropriatemitigatingfactors.ThecompensationcommitteeassiststheBoardbyoverseeingandevaluatingrisksrelatedtotheCompany’scompensationstructureandcompensationprograms,includingtheformulation,administrationandregulatorycompliancewithrespecttocompensationmatters,andcoordinating,alongwiththeBoard’sChair,successionplanningdiscussions.ThenominatingandcorporategovernancecommitteeassiststheBoardbyoverseeingandevaluatingprogramsandrisksassociatedwithBoardorganization,membershipandstructure,andcorporategovernance.Inaddition,ourBoardreceivesperiodicdetailedoperatingperformancereviewsfrommanagement.

Committee Charters and Corporate Governance Guidelines

OurCorporateGovernanceGuidelines,chartersoftheauditcommittee,compensationcommitteeandnominatingandcorporategovernancecommitteeandothercorporategovernanceinformationareavailableundertheCorporateGovernancesectionoftheInvestorspageofourwebsitelocatedatwww.inspiresleep.com,orbywritingtoourSecretaryatourofficesat5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.

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Code of Business Conduct and Ethics

Wehaveadoptedacodeofbusinessconductandethics(the“CodeofConduct”)thatappliestoallofourdirectors,officersandemployees,includingourprincipalexecutiveofficer,principalfinancialofficer,principalaccountingofficerorcontrollerorpersonsperformingsimilarfunctions.AcopyofourCodeofBusinessConductandEthicsisavailableundertheCorporateGovernancesectionoftheInvestorspageofourwebsitelocatedatwww.inspiresleep.com,orbywritingtoourSecretaryatourofficesat5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.Weintendtomakeanylegallyrequireddisclosuresregardingamendmentsto,orwaiversof,provisionsofourCodeofConductonourwebsiteratherthanbyfilingaCurrentReportonForm8-K.

Anti-Hedging Policy

OurBoardofDirectorshasadoptedanInsiderTradingCompliancePolicy,whichappliestoallofourdirectors,officersandemployees.Thepolicyprohibitsourdirectors,officersandemployeesfromengaginginhedgingormonetizationtransactions,suchaszero-costcollarsandforwardsalecontracts;shortsales;andtransactionsinpubliclytradedoptions,suchasputs,callsandotherderivativesinvolvingourequitysecurities.

Communications with the Board

AnystockholderoranyotherinterestedpartywhodesirestocommunicatewithourBoardofDirectors,ournon-managementdirectorsoranyspecifiedindividualdirector,maydosobydirectingsuchcorrespondencetotheattentionoftheSecretary,InspireMedicalSystems,Inc.,5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.TheSecretarywillforwardthecommunicationtotheappropriatedirectorordirectorsasappropriate.

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EXECUTIVE COMPENSATION

Overview

Thissectiondiscussesthematerialcomponentsoftheexecutivecompensationprogramforourexecutiveofficerswhoarenamedinthe“SummaryCompensationTable”below.Althoughwelostourstatusasan“emerginggrowthcompany”and“smallerreportingcompany,”eachasdefinedintheJOBSAct,in2019,wearenotrequiredtoincludeaCompensationDiscussionandAnalysisinthisProxyStatementandhaveelectedtocomplywiththescaleddisclosurerequirementsapplicabletoemerginggrowthcompaniesandsmallerreportingcompanies.In2019,our“namedexecutiveofficers”andtheirpositionswereasfollows:

• TimothyP.Herbert,PresidentandChiefExecutiveOfficer;

• RichardJ.Buchholz,ChiefFinancialOfficer;and

• RandallA.Ban,ChiefCommercialOfficer.

Stockholder Input on Executive Compensation

Thisyear,weareholdingthefirststockholdervotestoapprovethecompensationofournamedexecutiveofficersonanadvisorybasisaswellasthefrequencyofsuchstockholderadvisoryvotesonourexecutivecompensationprogram.Wehaverecommendedthatthestockholdersapproveafrequencyofeveryoneyear.

Wearecommittedtoongoingengagementwithitsinvestorsonallappropriatematters,includingexecutivecompensationandgovernance.FollowingtheadvisoryvotesattheAnnualMeeting,weexpectthatthecompensationcommitteewillconsiderstockholderinputinevaluatingthedesignofourexecutivecompensationandthecompensationdecisionsforeachofthenamedexecutiveofficers.

Summary Compensation Table

Thefollowingtablesetsforthinformationconcerningthecompensationofournamedexecutiveofficersforthefiscalyearspresented.

Name and Principal Position YearSalary

($)Option Awards

($)(1)

Non-Equity Incentive Plan Compensation

($)(2)Total

($)TimothyP.Herbert

President and Chief Executive Officer 2019 439,875 2,047,305 412,383 2,899,5632018 417,606 2,424,007 419,156 3,260,7692017 380,000 83,901 135,660 599,561

RichardJ.BuchholzChief Financial Officer

2019 333,373 629,940 187,523 1,150,8362018 311,269 656,960 190,603 1,158,8322017 255,748 8,708 65,216 329,672

RandallA.BanChief Commercial Officer

2019 297,984 1,438,640 240,040 1,976,6642018 287,907 538,000 237,444 1,063,3512017 278,168 19,818 215,225 513,211

(1) AmountsreflectthefullgrantdatefairvalueofstockoptionsgrantedcomputedinaccordancewithFASBASCTopic718,ratherthantheamountspaidtoorrealizedbythenamedindividual.WeprovideinformationregardingtheassumptionsusedtocalculatethevalueofallstockoptionawardsmadetonamedexecutiveofficersinNote8toourauditedfinancialstatementsinourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019.

(2) The2019amountsforMessrs.HerbertandBuchholzrepresentearnedannualbonusesunderourManagementIncentiveProgram(“MIP”),of$412,383and$187,523.The2019amountforMr.Banrepresentsearnedcommissionsof$240,040.

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Narrative to Summary Compensation Table

2019 Salaries

Thenamedexecutiveofficersreceiveabasesalarytocompensatethemforservicesrenderedtoourcompany.Thebasesalarypayabletoeachnamedexecutiveofficerisintendedtoprovideafixedcomponentofcompensationreflectingtheexecutive’sskillset,experience,roleandresponsibilities.For2019,thecompensationcommitteedeterminedtoincreasebasesalariesforMessrs.Herbert,BuchholzandBanwereinitiallyincreasedascomparedto2018,respectively:from$425,000to$439,875;from$322,100to$333,373;andfrom$287,907to$297,984.

Thecompensationcommitteedeterminedtoincreasethe2020basesalariesofMessrs.Herbert,BuchholzandBanto$505,856,$383,379and$327,782,respectively.

2019 Bonuses and Commissions

Wepaycashincentiveawardstoeachofournamedexecutiveofficers.Suchawardsaredesignedtoincentivizeournamedexecutiveofficerswithavariablelevelofcompensationthatisbasedonperformancemeasuresevaluatedbyourcompensationcommitteeinconsultationwithmanagementandasapprovedbytheboard.Thesecashincentivesareintendedtolinkasubstantialportionofexecutivecompensationtoourperformanceandprovideexecutiveofficerswithacompetitivelevelofcompensationiftheyachievetheirobjectives.

Management Incentive Program

EachofMessrs.HerbertandBuchholzareeligibletoparticipateinourMIP,underwhicheligibleparticipantsmayreceivecashbonusesbasedonourachievementofcertaincompanyfinancialoperatingperformancemetrics.For2019,theannualtargetbonusamountsundertheMIPexpressedasapercentageofbasesalaryforMessrs.HerbertandBuchholzwereequalto75%and45%,respectively.

Basedontheachievementofthe2019performancemeasuresundertheMIP,thecompensationcommitteerecommended,andtheboardapproved,paymentofcashbonusesundertheMIPequalto125%ofMessrs.HerbertandBuchholz'srespectivetargetbonusamountsfor2019,totaling$412,383and$187,523,respectively.

Effectiveforfiscalyear2020andthereafter,Messrs.HerbertandBuchholz’sannualtargetbonusamountsundertheMIP,expressedasapercentageofbasesalary,wereincreasedto80%and50%,respectively.

Ban Commissions

Mr.Baniseligibletoreceivecommissionsbasedonachievementofcertainperformancemetrics,whicharedeterminedandpaidonaquarterlybasis.ThecompensationcommitteedeterminedthatMr.Banwouldhaveanannualtargetcommissionamountof$149,000for2019.Basedontheachievementoftheapplicableperformancecomponents,Mr.Banreceivedquarterlycommissionpaymentsof$35,280,$38,600,$38,120and$128,040,respectivelyfor2019.Asaresult,Mr.Banearnedcashcommissionstotalinganaggregate$240,040,representing161%ofhisannualtargetcommissionamount.

Theactualcashbonusesandcommissionsearnedbyeachnamedexecutiveofficerfor2019performancearesetforthaboveintheSummaryCompensationTableinthecolumnentitled“Non-EquityIncentivePlanCompensation.”

Equity Compensation

PriortoourIPO,wemaintainedtwoequityincentiveplans,the2007StockIncentivePlan,asamended(the“2007Plan”)andthe2017StockIncentivePlan,asamended(the“2017Plan”),whichhaveprovidedouremployees(includingthenamedexecutiveofficers),non-employeedirectors,consultantsandindependentcontractorstheopportunitytoparticipateintheequityappreciationofourbusinessthroughthereceiptofstockoptionstopurchasesharesofourcommonstock.Webelievethatsuchstockoptionsfunctionasacompellingretentiontool.The2007PlanterminatedinaccordancewithitstermsonNovember28,2017.Accordingly,wemaynolongergrantstockoptionsunderthe2007Plan;however,outstandingstockoptionsmaycontinuetobeexercisedinaccordancewiththeirterms.Immediatelyfollowingtheterminationofthe2007Plan,weadoptedthe2017Plan,whichcontainssubstantiallysimilartermsandconditionsasthe2007Plan.Inconnectionwiththe

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IPOweadopted,andourstockholdersapproved,the2018IncentiveAwardPlan(the“2018Plan”)inordertofacilitatethegrantofcashandequityincentivestodirectors,employees(includingournamedexecutiveofficers)andconsultantsofusandcertainofouraffiliatesandtoenableusandcertainofitsaffiliatestoobtainandretainservicesoftheseindividuals,whichisessentialtoourlong-termsuccess.

Inaddition,eligibleemployeesofusorourdesignatedsubsidiaries(includingournamedexecutiveofficers),mayparticipateintheInspireMedicalSystems,Inc.2018EmployeeStockPurchasePlan(the“ESPP”).TheESPPprovideseligibleemployeeswiththeopportunitytoacquireourcommonstockthroughperiodicpayrolldeductions,atadiscountedprice.TheESPPisstructuredasaqualifiedemployeestockpurchaseplanunderSection423oftheInternalRevenueCodeof1986,asamended(the“Code”).

Underthe2018Plan,wegrantedMr.Bananincentivestockoptiontopurchase25,000sharesofourcommonstockatanexercisepriceof$67.63pershareonJuly31,2019inconnectionwithhispromotiontoChiefCommercialOfficer.

Inaddition,onDecember16,2019,wegrantedincentivestockoptionstopurchase65,000sharesofourcommonstock,20,000sharesofourcommonstockand25,000sharesofourcommonstocktoMessrs.Herbert,BanandBuchholz,respectively.Eachsuchstockoptionhasa$71.00pershareexerciseprice.

Theforegoingstockoptionshavethesamevestingschedule,whichprovidesfor25%tovestonthefirstanniversaryofthegrantdateandtheremaining75%tovestin36equalmonthlyinstallmentsthereafter(suchthatthestockoptionwouldfullyvestonthefourthanniversaryofthegrantdate),subjecttotherecipient’scontinuousemploymentthroughtherelevantvestingdates;providedthatastockoptionawardwillfullyaccelerateinvestingintheeventofaterminationoftherecipient’semploymentbyuswithout“Cause”(asdefinedinthenamedexecutiveofficer’semploymentagreement)withinoneyearfollowinga“ChangeinControl”(asdefinedinthe2018Plan).

Other Elements of Compensation

Retirement Plans

Wecurrentlymaintaina401(k)retirementsavingsplanforouremployees,includingournamedexecutiveofficers,whosatisfycertaineligibilityrequirements.Ournamedexecutiveofficersareeligibletoparticipateinthe401(k)planonthesametermsasotherfull-timeemployees.TheCodeallowseligibleemployeestodeferaportionoftheircompensation,withinprescribedlimits,onapre-taxbasisthroughcontributionstothe401(k)plan.Webelievethatprovidingavehiclefortax-deferredretirementsavingsthoughour401(k)planaddstotheoveralldesirabilityofourexecutivecompensationpackageandfurtherincentivizesouremployees,includingournamedexecutiveofficers,inaccordancewithourcompensationpolicies.

Employee Benefits and Perquisites

Health/WelfarePlans.Allofourfull-timeemployees,includingournamedexecutiveofficers,areeligibletoparticipateinourhealthandwelfareplans,including:

• medical,dentalandvisionbenefits;

• medicalanddependentcareflexiblespendingaccounts;

• long-termdisabilityinsurance;and

• lifeinsurance.

No Tax Gross-Ups

Wedonotmakegross-uppaymentstocoverournamedexecutiveofficers’personalincometaxesthatmaypertaintoanyofthecompensationorperquisitespaidorprovidedbyourcompany.

Employment Agreements

Timothy P. Herbert

WeenteredintoanemploymentagreementwithMr.Herbert,datedNovember16,2007,aswassubsequentlyamendedandrestatedeffectiveasofApril9,2018(the“HerbertEmploymentAgreement”),providingforhispositionasPresidentandChiefExecutiveOfficerandanannualbasesalaryof$425,000.TheHerbert

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EmploymentAgreementprovidesforanindefinitetermandisterminableatwillbyusorMr.Herbert,providedthatonemonth’sadvancenoticemustbeprovidedbytheterminatingpartyintheeventofaterminationofemploymentwithout“Cause”byusoraresignationwithout“GoodReason”byMr.Herbert.

TheHerbertEmploymentAgreementprovidesforMr.Herbert’seligibilitytoreceivediscretionaryannualbonusesand/orlongtermincentivecompensationwithatargetamountof75%ofMr.Herbert’sannualbasesalary,baseduponachievementofannualperformancetargets.PursuanttotheHerbertEmploymentAgreement,uponterminationofemploymentbyuswithoutCauseorbyMr.HerbertforGoodReason,Mr.Herbertwillreceivethesumofhis(x)thencurrentannualbasesalaryand(y)aprorataportionofhistargetannualbonus,withsuchamountpayableininstallmentsoverthe12-monthperiodfollowingsuchtermination,aswellassubsidizedCOBRApremiumsfor12monthsfollowinghisterminationofemployment.Notwithstandingtheforegoing,intheeventsuchaterminationofemploymentoccursonorwithinthetwelve-monthperiodfollowingaChangeofControl,Mr.Herbertwillbeentitledtoreceive:thesumof(x)eighteenmonthsofhisthencurrentbasesalaryand(y)targetannualbonus,payableinsubstantiallyequalinstallmentsforeighteenmonthsfollowinghisterminationofemployment,(B)subsidizedCOBRApremiumsforeighteenmonthsfollowinghisterminationofemploymentand(C)accelerationinfullofthevestingofhisoutstandingequityawards.Mr.Herbertwillberequiredtoexecuteareleaseofclaimsinfavorofusinordertoreceivehisseverancebenefits.

TheHerbertEmploymentAgreementalsoprovidesforaCodeSection280G“cutback”suchthatpaymentsorbenefitsthathereceivesinconnectionwithaChangeofControlwillbereducedtotheextentnecessarytoavoidtheimpositionofanyexcisetaxunderCodeSections280Gand4999ifsuchreductionwouldresultinagreaterafter-taxpaymentamounttoMr.Herbert.

“ChangeofControl”isdefinedintheHerbertEmploymentAgreementastheoccurrenceofoneofthefollowing:(i)asalebyourstockholdersofasubstantialportionoftheirstockinus,oramerger,reorganizationorconsolidation,wherebyourequityholdersexistingimmediatelypriortosuchsale,merger,reorganizationorconsolidationdonot,immediatelyafterconsummationofsuchsale,reorganization,mergerorconsolidation,ownmorethanfiftypercent(50%)ofthecombinedvotingpowerofthesurvivingentity’sthenoutstandingvotingsecuritiesentitledtovotegenerallyintheelectionofdirectorsbutonlyifsucheventresultsinachangeinboardofdirectorscompositionsuchthatthedirectorsimmediatelyprecedingsucheventsdonotcompriseamajorityoftheboardofdirectorsfollowingsuchevent,or(ii)thesaleorotherdispositionofallorsubstantiallyallofourassetstoanentityinwhichwe,anyofoursubsidiaries,orourequityholdersexistingimmediatelypriortosuchsalebeneficiallyownlessthanfiftypercent(50%)ofthecombinedvotingpowerofsuchacquiringentity’sthenoutstandingvotingsecuritiesentitledtovotegenerallyintheelectionofdirectorsbutonlyifsucheventresultsinachangeinboardofdirectorscompositionsuchthatthedirectorsimmediatelyprecedingsucheventsdonotcompriseamajorityoftheboardofdirectorsfollowingsuchevent.

“Cause”isdefinedintheHerbertEmploymentAgreementas(i)Mr.Herbert’smaterialbreachofhisobligationsundertheHerbertEmploymentAgreement,orhisrepeatedfailureorrefusaltoperformorobservehisduties,responsibilitiesandobligationsasanexecutive,forreasonsotherthandisability,ifsuchbreach,failureorrefusalcontinuesoritoranotherbreach,failureorrefusalisrepeatedfollowingwrittennoticethereoftohim;(ii)anymaterialdishonestyorotherbreachofthedutyofloyaltyaffectingusoranyofourcustomers,vendorsoremployees;(iii)useofalcoholorotherdrugsinamannerwhichmateriallyaffectstheperformanceofMr.Herbert’sduties,responsibilitiesandobligationsasanemployee,ifsuchusecontinuesorisrepeatedfollowingwrittennoticethereoftohim;(iv)convictionof,orapleaofguiltyornolocontendreto,achargeofcommissionofafelonyorofanycrimeinvolvingmisrepresentation,moralturpitudeorfraud;(v)commissionbyMr.Herbertofanyotherwillfulorintentionalactwhichmateriallyinjuresourreputation,businessorbusinessrelationshipsifsuchactoccursorcontinuesfollowingwrittennoticetohimofthesameorofapriorwillfulorintentionalactinjuringourreputation,businessorbusinessrelationships;or(vi)theexistenceofanycourtorderorsettlementagreementprohibitingMr.Herbert’scontinuedemploymentwithus.

“GoodReason”isdefinedintheHerbertEmploymentAgreementas(i)amaterialreduction,withoutMr.Herbert’sconsent,inMr.Herbert’sdutiesorresponsibilities,(providednosuchreductionshallbedeemedtohaveoccurredsolelybyreasonofourhavinghiredanewChiefExecutiveorPresidentaslongasMr.Herbertcontinuestohaveresponsibilitiesthatareconsistentwithexecutivestatus);(ii)amaterialreductionofMr.Herbert’sbasesalary,unlesssuchreductionispartofanoverallreductioninsalaryforexecutiveemployeesandMr.Herbert’sreductionisproportionatetotheoverallreductioninsalary;(iii)usmovingMr.Herbert’splaceofemployment,withouthisconsent,morethan50milesfromtheplaceofhisemploymentpriortosuchmove,

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althoughbusinesstravelshallnotbedeemedtobeamoveofhisplaceofemployment;or(iv)ourmaterialbreachoftheHerbertEmploymentAgreement,providedMr.Herberthasprovidedusdetailedwrittennoticeofsuchallegedbreachandwehavenot,withinthirty(30)daysofreceiptofsuchnotice,curedsuchallegedbreach.

TheHerbertEmploymentAgreementcontainsnon-competitionandemployeenon-solicitationcovenantsthatapplythroughoneyearfollowingterminationofemployment.

Richard J. Buchholz

WeenteredintoanemploymentagreementwithMr.Buchholz,datedJune1,2014,aswassubsequentlyamendedandrestatedeffectiveasofApril9,2018(the“BuchholzEmploymentAgreement”),providingforhispositionasChiefFinancialOfficerandanannualbasesalaryof$322,100.TheBuchholzEmploymentAgreementprovidesforanindefinitetermandisterminableatwillbyusorMr.Buchholz,providedthatonemonth’sadvancenoticemustbeprovidedbyusintheeventofaterminationofemploymentwithout“Cause”andtwoweeks’advancenoticemustbeprovidedbyMr.Buchholzintheeventofaresignationforanyreason.

TheBuchholzEmploymentAgreementprovidesforMr.Buchholz’seligibilitytoreceivediscretionaryannualbonusesand/orlongtermincentivecompensationwithatargetamountof45%ofMr.Buchholz’sannualbasesalary,baseduponachievementofannualperformancetargets.PursuanttotheBuchholzEmploymentAgreement,uponterminationofemploymentbyuswithoutCause,Mr.Buchholzwillreceivethesumof(x)9monthsofhisthencurrentannualbasesalaryand(y)aprorataportionofhistargetannualbonus,withsuchamountpayableininstallmentsoverthe9-monthperiodfollowingsuchtermination,aswellassubsidizedCOBRApremiumsfor9monthsfollowinghisterminationofemployment.Notwithstandingtheforegoing,intheeventsuchaterminationofemploymentoccursonorwithinthetwelve-monthperiodfollowingaChangeofControl,Mr.Buchholzwillbeentitledtoreceive:thesumof(x)twelvemonthsofhisthencurrentbasesalaryand(y)targetannualbonus,payableinsubstantiallyequalinstallmentsfortwelvemonthsfollowinghisterminationofemployment,(B)subsidizedCOBRApremiumsfortwelvemonthsfollowinghisterminationofemploymentand(C)accelerationinfullofthevestingofhisoutstandingequityawards.Mr.Buchholzwillberequiredtoexecuteareleaseofclaimsinfavorofusinordertoreceivehisseverancebenefits.

TheBuchholzEmploymentAgreementalsoprovidesforaCodeSection280G“cutback”suchthatpaymentsorbenefitsthathereceivesinconnectionwithaChangeofControlwillbereducedtotheextentnecessarytoavoidtheimpositionofanyexcisetaxunderCodeSections280Gand4999ifsuchreductionwouldresultinagreaterafter-taxpaymentamounttoMr.Buchholz.

ForpurposesoftheBuchholzEmploymentAgreement,“ChangeofControl”hasthesamemeaningasusedintheHerbertEmploymentAgreement.

“Cause”isdefinedintheBuchholzEmploymentAgreementas(i)Mr.Buchholz’sbreachofhisobligationsundertheBuchholzEmploymentAgreement,orhisrepeatedfailureorrefusaltoperformorobservehisduties,responsibilitiesandobligationsasanexecutive,forreasonsotherthandisability;(ii)anymaterialdishonestyorotherbreachofthedutyofloyaltyaffectingusoranyofourcustomers,vendorsoremployees;(iii)useofalcoholorotherdrugsinamannerwhichaffectstheperformanceofMr.Buchholz’sduties,responsibilitiesandobligationsasanemployee;(iv)convictionof,orapleaofguiltyornolocontendreto,achargeofcommissionofafelonyorofanycrimeinvolvingmisrepresentation,moralturpitudeorfraud;(v)commissionbyMr.Buchholzofanyotherwillfulorintentionalactwhichmateriallyinjuresourreputation,businessorbusinessrelationships;or(vi)theexistenceofanycourtorderorsettlementagreementprohibitingMr.Buchholz’scontinuedemploymentwithus.

TheBuchholzEmploymentAgreementcontainsnon-competitionandemployeenon-solicitationcovenantsthatapplythroughoneyearfollowingterminationofemployment.

Randall A. Ban

WeenteredintoanemploymentagreementwithMr.Ban,datedJuly20,2009,aswassubsequentlyamendedandrestatedeffectiveasofApril9,2018(the“BanEmploymentAgreement”),providingforhispositionasSeniorVicePresidentofMarketingandanannualbasesalaryof$287,907.TheBanEmploymentAgreementprovidesforanindefinitetermandisterminableatwillbyusorMr.Ban,providedthatonemonth’sadvancenoticemustbeprovidedbyusintheeventofaterminationofemploymentwithout“Cause”andtwoweeks’advancenoticemustbeprovidedbyMr.Banintheeventofaresignationforanyreason.

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TheBanEmploymentAgreementprovidesforMr.Ban’seligibilitytoreceivediscretionaryannualbonusesand/orlongtermincentivecompensation,aswellasMr.Ban’scurrentparticipationinacommissionprograminlieuoftheforegoing.TheBanEmploymentAgreementprovidesthatMr.Banwillbeeligibleforanannualtargetcommissionamountasdeterminedatthebeginningofeachcalendaryear.PursuanttotheBanEmploymentAgreement,uponterminationofemploymentbyuswithoutCause,Mr.Banwillreceivethesumof(x)9monthsofhisthencurrentannualbasesalaryand(y)aprorataportionofhistargetannualcommission,withsuchamountpayableininstallmentsoverthe9-monthperiodfollowingsuchtermination,aswellassubsidizedCOBRApremiumsfor9monthsfollowinghisterminationofemployment.Notwithstandingtheforegoing,intheeventsuchaterminationofemploymentoccursonorwithinthetwelve-monthperiodfollowingaChangeofControl,Mr.Banwillbeentitledtoreceive:thesumof(x)twelvemonthsofhisthencurrentbasesalaryand(y)targetannualcommission,payableinsubstantiallyequalinstallmentsfortwelvemonthsfollowinghisterminationofemployment,(B)subsidizedCOBRApremiumsfortwelvemonthsfollowinghisterminationofemploymentand(C)accelerationinfullofthevestingofhisoutstandingequityawards.Mr.Banwillberequiredtoexecuteareleaseofclaimsinfavorofusinordertoreceivehisseverancebenefits.

TheBanEmploymentAgreementalsoprovidesforaCodeSection280G“cutback”suchthatpaymentsorbenefitsthathereceivesinconnectionwithaChangeofControlwillbereducedtotheextentnecessarytoavoidtheimpositionofanyexcisetaxunderCodeSections280Gand4999ifsuchreductionwouldresultinagreaterafter-taxpaymentamounttoMr.Ban.

ForpurposesoftheBanEmploymentAgreement,“ChangeofControl”hasthesamemeaningasusedintheHerbertEmploymentAgreement.

“Cause”isdefinedintheBanEmploymentAgreementas(i)Mr.Ban’sbreachofhisobligationsundertheBanEmploymentAgreement,orhisrepeatedfailureorrefusaltoperformorobservehisduties,responsibilitiesandobligationsasanexecutive,forreasonsotherthandisability;(ii)anymaterialdishonestyorotherbreachofthedutyofloyaltyaffectingusoranyofourcustomers,vendorsoremployees;(iii)useofalcoholorotherdrugsinamannerwhichaffectstheperformanceofMr.Ban’sduties,responsibilitiesandobligationsasanemployee;(iv)convictionof,orapleaofguiltyornolocontendreto,achargeofcommissionofafelonyorofanycrimeinvolvingmisrepresentation,moralturpitudeorfraud;(v)commissionbyMr.Banofanyotherwillfulorintentionalactwhichinjuresourreputation,businessorbusinessrelationships;or(vi)theexistenceofanycourtorderorsettlementagreementprohibitingMr.Ban’scontinuedemploymentwithus.

TheBanEmploymentAgreementcontainsnon-competitionandemployeenon-solicitationcovenantsthatapplythroughoneyearfollowingterminationofemployment.

OnJuly1,2019,Mr.BanwaspromotedtotheroleofChiefCommercialOfficer.

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Outstanding Equity Awards at Fiscal Year-End

ThefollowingtablesummarizesthenumberofsharesofcommonstockunderlyingoutstandingequityincentiveplanawardsforeachnamedexecutiveofficerasofDecember31,2019.

Name Grant Date

Number of Securities Underlying Unexercised Options (#)

Exercisable(2)

Number of Securities Underlying Unexercised Options (#)

Unexercisable(2)

Option Exercise

Price ($)(2)Option

Expiration DateTimothyP.Herbert 5/1/2012 9,221 — 1.47 5/1/2022 9/12/2013 39,272 — 1.14 9/12/2023 3/31/2014 176,691 — 2.07 3/31/2024 1/1/2017 42,214 15,680 0.94 1/1/2027 4/1/2017 101,453 50,727 0.94 4/1/2027 4/9/2018 46,991 65,790 10.38 4/9/2028 12/18/2018 21,250 63,750 42.15 12/18/2028 12/16/2019 — 65,000 71.00 12/16/2029RichardJ.Buchholz 6/1/2014 37,706 — 2.07 6/1/2024 1/1/2017 585 1,630 0.94 1/1/2027 4/1/2017 1,325 5,264 0.94 4/1/2027 4/9/2018 9,398 13,158 10.38 4/9/2028 12/18/2018 6,250 18,750 42.15 12/18/2028 12/16/2019 — 20,000 71.00 12/16/2029RandallA.Ban 9/12/2013 75,187 — 1.14 9/12/2023 3/31/2014 27,067 — 2.07 3/31/2024 1/1/2017 9,867 3,666 0.94 1/1/2027 4/1/2017 24,059 12,031 0.94 4/1/2027 12/18/2018 6,250 18,750 42.15 12/18/2028 7/31/2019 — 25,000 67.63 7/31/2029 12/16/2019 — 20,000 71.00 12/16/2029

(1) Eachstockoptionawardhasthesamevestingschedule,whichprovidesfor25%oftheawardtovestonthefirstanniversaryofthegrantdateandtheremaining75%oftheawardtovestin36equalmonthlyinstallmentsthereafter(suchthattheawardwouldfullyvestonthefourthanniversaryofthegrantdate),subjecttotherecipient’scontinuousemploymentwithusthroughtherelevantvestingdates;providedthatastockoptionawardwillfullyaccelerateinvestingintheeventofaterminationoftherecipient’semploymentbyuswithout“Cause”(asdefinedinthenamedexecutiveofficer’semploymentagreement)withinoneyearfollowinga“ChangeinControl”.Foradditionaldetails,pleaserefertothesectiontitled“ExecutiveCompensation—NarrativetoSummaryCompensationTable—EquityCompensation”above.

(2) Pursuanttoprovisionsinthe2007Planand2017Plan,theexercisepriceandnumberofsharessubjecttotheoptionsgrantedunderthe2007Planand2017Planwereadjustedinconnectionwiththe1-for-6.650reversestocksplitofourcommonstockeffectedonApril20,2018.Accordingly,thesharetotalsandexercisepricesshowninthetableabove(andinthecorrespondingfootnotes)reflectournamedexecutiveofficers’postreversestocksplitholdings.

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DIRECTOR COMPENSATION

ThefollowingtablesetsforthinformationconcerningthecompensationofourdirectorsforthefiscalyearendedDecember31,2019:

NameFees Earned or Paid in Cash ($)

Option Awards ($)(4)(5) Total ($)

GaryL.Ellis 23,750(1)(2) 165,000 188,750JoyceErony 30,417(3) 110,000 140,417JerryC.Griffin,M.D. 54,167 110,000 164,167MuditK.Jain,Ph.D. 50,000(1) 110,000 160,000ChauKhuong 47,500(1) 110,000 157,500DanaG.Mead,Jr. 50,000 110,000 160,000ShawnTMcCormick 60,000 110,000 170,000MarilynCarlsonNelson 81,667(1) 110,000 191,667CaseyM.Tansey 55,000(1) 110,000 165,000

(1) EachofMr.Ellis,Dr.Jain,Mr.Khuong,Ms.Nelson,andMr.Tanseyelectedtoreceivesuchamounts,oraportionofsuchamounts,intheformoffullyvestedsharesofourcommonstockinlieuofcashpayment,whichresultedintheissuanceof170sharesofourcommonstocktoMr.Ellis,787sharesofourcommonstocktoDr.Jain,748sharesofourcommonstocktoMr.Khuong,1,286sharesofourcommonstocktoMs.Nelson,and866sharesofourcommonstocktoMr.Tansey.

(2) Mr.ElliscommencedserviceasamemberoftheboardonJuly25,2019.

(3) Ms.EronyresignedasamemberoftheboardeffectiveAugust1,2019.

(4) Amountsreflectthefullgrantdatefairvalueofstockoptionsgrantedduring2019computedinaccordancewithFASBASCTopic718,ratherthantheamountspaidtoorrealizedbythenameddirector.WeprovideinformationregardingtheassumptionsusedtocalculatethevalueofallstockoptionawardsinNote8toourauditedfinancialstatementsinourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019.

(5) Thetablebelowshowstheaggregatenumbersofstockoptionawards(exercisableandunexercisable)heldasofDecember31,2019byeachdirectorwhowasservingasofDecember31,2019.

NameNumber of Shares of Common Stock Underlying

Options Outstanding at Fiscal Year EndGaryL.Ellis 5,261JerryC.Griffin,M.D. 33,142MuditK.Jain,Ph.D. 21,865ChauKhuong 21,865DanaG.Mead,Jr. 21,865ShawnTMcCormick 36,902MarilynCarlsonNelson 44,420CaseyM.Tansey 21,865

Non-Employee Director Compensation Policy

InconnectionwiththeIPO,weadopted,andourstockholdersapproved,acompensationpolicyforournon-employeedirectorsthatconsistsofannualretainerfeesandlong-termequityawards.

Pursuanttothispolicy,aswassubsequentlyamendedeffectiveMay1,2019,eacheligiblenon-employeedirectorreceivesanannualcashretainerof$40,000.Thechairpersonoftheboardofdirectorsreceivesanadditionalannualcashretainerof$35,000.Further,thechairpersonoftheauditcommitteereceivesanadditionalannualcashretainerof$20,000andeachothermemberoftheauditcommitteereceivesanadditionalannualcashretainerof$10,000,thechairpersonofthecompensationcommitteereceivesanadditionalannualcashretainerof$15,000andeachothermemberofthecompensationcommitteereceivesanadditionalannualcashretainerof$7,500,andthechairpersonofthenominatingandgovernancecommitteereceivesanadditionalannualcashretainerof$15,000andeachothermemberofthenominatingandgovernancecommitteereceivesanadditionalannualcashretainerof$7,500.Eachannualcashretainerwillbepaidquarterlyinarrears.TheBoardofDirectorsmay,initsdiscretion,permitanon-employeedirectortoelecttoreceiveanyportionoftheannualcashretainerintheformoffullyvestedandunrestrictedsharesofcommonstockinlieuofcash.Also,pursuanttothispolicy,onthedateofanyannualmeetingofourstockholders,weintendtogranteacheligiblenon-employee

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directoranawardofanoptiontopurchaseanumberofsharesofourcommonstock(ataper-shareexercisepriceequaltotheclosingpricepershareofthecommonstockonthedateofsuchannualmeeting(oronthelastprecedingtradingday))thathasagrantdatefairvalueof$110,000.Thetermsofeachsuchawardwillbesetforthinawrittenawardagreementbetweeneachnon-employeedirectorandus,whichwillgenerallyprovideforvestingafteroneyearofcontinuedserviceasadirector.EachsuchawardwillvestinfullimmediatelypriortotheoccurrenceofaChangeinControl(asdefinedinthe2018Plan).

Also,pursuanttothispolicy,weintendtograntanyeligiblenon-employeedirectorwhoiselectedorappointedmid-yearanawardofanoptiontopurchaseanumberofsharesofourcommonstock(ataper-shareexercisepriceequaltotheclosingpricepershareofthecommonstockonthedateofsuchdirector’selectionorappointment(oronthelastprecedingtradingday))thathasagrantdatefairvalueof$165,000.Thetermsofeachsuchawardwillbesetforthinawrittenawardagreementbetweenthenon-employeedirectorandus,whichwillgenerallyprovideforvestinginthreeequalinstallmentsfollowingthedateofgrant(suchthatsuchawardwillvestinfullonthethirdanniversaryofthedateofgrant).EachsuchawardwillvestinfullimmediatelypriortotheoccurrenceofaChangeinControl.

Allcashandequityawardsgrantedunderthenon-employeedirectorcompensationpolicywillbegrantedunder,andsubjecttothelimitsof,the2018Plan.

InconnectionwithhisappointmenttotheboardonJuly25,2019,Mr.Ellisreceivedaninitialawardof5,261optionswithanexercisepriceof$67.75persharepursuanttothenon-employeedirectorcompensationpolicy.

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STOCK OWNERSHIP

Security Ownership of Certain Beneficial Owners and Management

ThefollowingtablesetsforthinformationrelatingtothebeneficialownershipofourcommonstockasofMarch6,2020by:

• eachperson,orgroupofaffiliatedpersons,knownbyustobeneficiallyownmorethan5%ofouroutstandingsharesofcommonstock;

• eachofourdirectors;

• eachofournamedexecutiveofficersfor2019;and

• alldirectorsandexecutiveofficersasagroup.

ThenumberofsharesbeneficiallyownedbyeachstockholderisdeterminedunderrulesissuedbytheSEC.Undertheserules,apersonisdeemedtobea“beneficial”ownerofasecurityifthatpersonhasorsharesvotingpowerorinvestmentpower,whichincludesthepowertodisposeofortodirectthedispositionofsuchsecurity.Exceptasindicatedinthefootnotesbelow,webelieve,basedontheinformationfurnishedtous,thattheindividualsandentitiesnamedinthetablebelowhavesolevotingandinvestmentpowerwithrespecttoallsharesofcommonstockbeneficiallyownedbythem,subjecttoanyapplicablecommunitypropertylaws.

Thepercentageofsharesbeneficiallyownediscomputedonthebasisof24,159,436sharesofourcommonstockoutstandingasofMarch6,2020.Sharesofourcommonstockthatapersonhastherighttoacquirewithin60daysofMarch6,2020aredeemedoutstandingforpurposesofcomputingthepercentageownershipofthepersonholdingsuchrights,butarenotdeemedoutstandingforpurposesofcomputingthepercentageownershipofanyotherperson,exceptwithrespecttothepercentageownershipofalldirectorsandexecutiveofficersasagroup.Unlessotherwiseindicatedbelow,theaddressforeachbeneficialownerlistedisc/oInspireMedicalSystems,Inc.,5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.

Name of Beneficial OwnerNumber of Shares Beneficially Owned

Percentage of Shares Beneficially Owned

Holders of More than 5%: BlackRock,Inc.(1) 1,834,219 7.6%

Named executive officers and directors: TimothyP.Herbert(2) 773,655 3.1%RandallA.Ban(3) 140,158 *RichardJ.Buchholz(4) 94,170 *MarilynCarlsonNelson(5) 258,426 1.1%GaryL.Ellis 1,170 *JerryC.Griffin,M.D.(6) 61,942 *MuditK.Jain,Ph.D.(7) 22,840 *ChauKhuong(8) 23,338 *DanaG.Mead,Jr.(9) 41,865 *ShawnTMcCormick(10) 47,420 *CaseyM.Tansey(11) 152,334 *

All executive officers and directors as a group (12 individuals)(12) 1,651,337 6.6%

* Representslessthan1%.

(1) BasedonaSchedule13GfiledwiththeSEConFebruary7,2020byBlackRock,Inc.hassolevotingpowerwithrespectto1,784,457sharesofourcommonstockandsoledispositivepowerwithrespectto1,834,219sharesofourcommonstock.TheaddressofBlackRock,Inc.is55East52ndStreet,NewYork,NY10055.

(2) IncludesforMr.Herbert,(i)298,199sharesofcommonstockheldbyatrustastowhichMr.Herbertservesastrusteeand(ii)475,456sharesofcommonstockunderlyingoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.Doesnotinclude350sharesofcommonstockheldbyhisdaughterastowhichMr.Herbertdisclaimsbeneficialownership.

(3) IncludesforMr.Ban,139,683sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(4) IncludesforMr.Buchholz,61,499sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.Doesnotinclude600sharesofcommonstockheldbyhisdaughterastowhichMr.Buchholzdisclaimsbeneficialownership.

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(5) IncludesforMs.Nelson,(i)211,517sharesofcommonstockheldbyGDNHoldings,LLC(“GDN”),astowhichMs.Nelsonisthemanagingmemberand(ii)44,420sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(6) IncludesforDr.Griffin,33,142sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(7) IncludesforDr.Jain,21,865sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(8) IncludesforMr.Khoung,21,865sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(9) IncludesforMr.Mead,21,865sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(10) IncludesforMr.McCormick,(i)3,000sharesofcommonstockheldbyatrustastowhichMr.McCormickservesastrusteeand(ii)36,902sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(11) IncludesforMr.Tansey,21,865sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

(12) Includesforallexecutiveofficersanddirectorsasagroup,910,076sharesofcommonstockunderlyingstockoptionscurrentlyexercisableorexercisablewithin60daysofMarch6,2020.

Delinquent Section 16(a) Reports

Section16(a)oftheExchangeActrequiresourexecutiveofficersanddirectors,ourprincipalaccountingofficerandpersonswhobeneficiallyownmorethan10%ofourcommonstocktofilewiththeSECreportsoftheirownershipandchangesintheirownershipofourcommonstock.Toourknowledge,basedsolelyonreviewofthecopiesofsuchreportsandamendmentstosuchreportswithrespecttotheyearendedDecember31,2019filedwiththeSECandonwrittenrepresentationsbyourdirectorsandexecutiveofficers,allrequiredSection16reportsundertheExchangeActforourdirectors,executiveofficers,principalaccountingofficerandbeneficialownersofgreaterthan10%ofourcommonstockwerefiledonatimelybasisduringtheyearendedDecember31,2019otherthanoneForm4forMr.BanreportinganoptiongrantmadeonJuly31,2019,whichwasinadvertentlyfiledlate.

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CERTAIN TRANSACTIONS WITH RELATED PERSONS

Policies and Procedures on Transactions with Related Persons

OurBoardofDirectorsrecognizesthattransactionswithrelatedpersonspresentaheightenedriskofconflictsofinterestsand/orimpropervaluation(ortheperceptionthereof).OurBoardhasadoptedawrittenpolicyontransactionswithrelatedpersonsthatisinconformitywiththerequirementsforissuershavingpublicly-heldcommonstocklistedontheNYSE.OurrelatedpersontransactionpolicyrequiresthattheauditcommitteeapproveorratifyrelatedpersontransactionsrequiredtobedisclosedpursuanttoItem404(a)ofRegulationS-K(whicharetransactions,subjecttospecifiedexceptions,inwhichwewereoraretobeaparticipant,theamountinvolvedexceeds$120,000andinwhichany“relatedperson”asdefinedunderItem404(a)ofRegulationS-Khadorwillhaveadirectorindirectmaterialinterest).Itisourpolicythatdirectorsinterestedinarelatedpersontransactionwillrecusethemselvesfromanyvoteonarelatedpersontransactioninwhichtheyhaveaninterestandthatnodirectormayparticipateintheapprovalofarelatedpersontransactionforwhichheorsheisa“relatedperson.”Eachofthetransactionsdescribedbelowenteredintofollowingtheadoptionofourrelatedpersontransactionpolicywasapprovedinaccordancewithsuchpolicy.

Participation in Our Initial Public Offering

InconnectionwithourIPOconsummatedinMay2018,certainofourexistingstockholdersandmembersofourBoardofDirectorspurchasedsharesofourcommonstockfromtheunderwritersatthepublicofferingpriceof$16.00pershare,andonthesametermsasotherinvestorsinourIPO.ThefollowingtablesummarizespurchasesofsharesofourcommonstockinourIPObyholdersofmorethan5%ofourcapitalstock,certainmembersofourBoardofDirectorsandanentityaffiliatedwithamemberofourBoardofDirectors.

ParticipantsShares

PurchasedAggregate

Purchase Price (in thousands)Greater than 5% Stockholders OrbimedPrivateInvestmentsV,L.P.(1) 312,500 $ 5,000AmzakHealthInvestors,LLC(2) 125,000 $ 2,000

Directors and Affiliates GDNHoldings,LLC(3) 62,500 $ 1,000DanaG.Mead,Jr. 20,000 $ 320CaseyM.Tansey 187,500 $ 3,000

(1) Mr.ChauKhuong,amemberofourBoardofDirectors,isaffiliatedwithOrbiMedPrivateInvestmentsV,L.P.

(2) Ms.JoyceErony,aformermemberofourBoardofDirectors,isaffiliatedwithAmzakHealthInvestors,LLC.

(3) Ms.MarilynCarlsonNelson,amemberofourBoardofDirectors,isthemanagingmemberofGDNHoldings,LLC.

Investor Rights Agreement

Wearepartytoafifthamendedandrestatedinvestorrightsagreement(asamended,the“InvestorRightsAgreement”)witheachholderofourformerlyoutstandingconvertiblepreferredstock,includingeachholderofmorethan5%ofourcommonstockandcertainofourdirectors(or,insomecases,entitiesaffiliatedtherewith).TheInvestorRightsAgreementimposescertainaffirmativeobligationsonus,andalsograntscertainrightstotheholders,includingcertainregistrationrightswithrespecttotheregistrablesecuritiesheldbythem.InconnectionwithourIPO,weenteredintoanamendmenttotheInvestorRightsAgreementwhichprovidedfortheterminationofallrightsandcovenantsthereunder,otherthantheregistrationrightsdescribedabove,immediatelypriortotheconsummationofourIPO.

Voting Agreement

Wewerepartytothatcertainfifthamendedandrestatedvotingagreement,asamended,ortheVotingAgreement,pursuanttowhicheachofU.S.VenturePartnersIX,L.P.,KleinerPerkinsCaufield&Byers,SynergyLifeSciencePartners,LP,OrbiMedPrivateInvestmentsV,L.P.andAmzakHealthInvestors,LLChadtheright

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todesignateonemembertobeelectedtoourBoardofDirectors.TheVotingAgreementterminatedbyitstermsinconnectionwiththeclosingofourIPO,andnoneofourstockholderscurrentlyhaveanycontinuingrightsregardingtheelectionordesignationofmembersofourBoardofDirectors.

Right of First Refusal and Co-Sale Agreement

Wewerepartytoafifthamendedandrestatedrightoffirstrefusalandco-saleagreementwiththeTimothyP.Herbert2013FamilyIrrevocableGSTTrustU/A/DNovember27,2013andeachholderofourconvertiblepreferredstock,whichincludedeachholderofmorethan5%ofourcapitalstockandcertainofourdirectors(or,insomecases,entitiesaffiliatedtherewith),pursuanttowhichwehadarightoffirstrefusalinrespectofcertainsalesofsecuritiesbytheTimothyP.Herbert2013FamilyIrrevocableGSTTrustU/A/DNovember27,2013.Therightoffirstrefusalandco-saleagreementterminatedinconnectionwiththeclosingofourIPO.

Director and Officer Indemnification and Insurance

Wehaveagreedtoindemnifyeachofourdirectorsandexecutiveofficersagainstcertainliabilities,costsandexpenses,andhavepurchaseddirectors’andofficers’liabilityinsurance.

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PROPOSAL NO. 3 — APPROVAL, ON AN ADVISORY (NON-BINDING) BASIS, OF THE COMPENSATION OF OURNAMED EXECUTIVE OFFICERS

Background

AsrequiredbySection14A(a)(1)oftheExchangeAct,thebelowresolutionenablesourstockholderstovotetoapprove,onanadvisory(non-binding)basis,thecompensationofournamedexecutiveofficersasdisclosedinthisProxyStatement.Thisproposal(the“Say-on-PayVote”),andcommonlyknownasa“say-on-pay”proposal,givesourstockholderstheopportunitytoexpresstheirviewsonournamedexecutiveofficers’compensation.TheSay-on-PayVoteisnotintendedtoaddressanyspecificitemofcompensation,butrathertheoverallcompensationofournamedexecutiveofficersandthephilosophy,policiesandpracticesdescribedinthisProxyStatement.

Weencourageourstockholderstoreviewthe“ExecutiveCompensation”sectionofthisProxyStatementformoreinformation.

Asanadvisoryapproval,thisproposalisnotbindinguponusorourBoardofDirectors.However,thecompensationcommittee,whichisresponsibleforthedesignandadministrationofourexecutivecompensationprogram,valuestheopinionsofourstockholdersexpressedthroughyourvoteonthisproposal.TheBoardandcompensationcommitteewillconsidertheoutcomeofthisvoteinmakingfuturecompensationdecisionsforournamedexecutiveofficers.Accordingly,weaskourstockholderstovote“FOR”thefollowingresolutionattheAnnualMeeting:

“RESOLVED,thatthestockholdersofInspireMedicalSystems,Inc.approve,onanadvisorybasis,thefiscalyear2019compensationofInspireMedicalSystems,Inc.’snamedexecutiveofficersasdescribedinthe“ExecutiveCompensation”sectionanddisclosedintheSummaryCompensationTableandrelatedcompensationtablesandnarrativedisclosuresetforthinInspireMedicalSystems,Inc.’sProxyStatementforthe2020AnnualMeetingofStockholders.”

Board Recommendation

OurBoardofDirectorsunanimouslyrecommendsyouvoteFORtheresolutiontoapprove,onanadvisory(non-binding)basis,thecompensationofournamedexecutiveofficers,asdisclosedinthe“ExecutiveCompensation”section,theaccompanyingcompensationtablesandrelatednarrativedisclosureofthisProxyStatement.

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PROPOSAL NO. 4 — APPROVAL, ON AN ADVISORY (NON-BINDING) BASIS, OF THE FREQUENCY OF FUTUREADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS

Background

InaccordancewithSection14AoftheExchangeAct,wearerequestingyouradvisory,non-bindingvoteregardingthefrequencywithwhichstockholdersshouldhaveanopportunitytoprovideasay-on-payvote.WeareprovidingstockholderstheoptionofselectingafrequencyofeveryONEYEAR,TWOYEARS,THREEYEARSorabstaining.StockholdersarenotvotingtoapproveordisapproveoftheBoard’srecommendation.Rather,stockholdersarebeingaskedtoexpresstheirpreferenceregardingthefrequencyoffuturesay-on-payvotes.

WerecommendthatourstockholdersselectafrequencyofeveryONEYEAR.Webelievethatthisfrequencyisappropriatebecauseitwillenableourstockholderstovote,onanadvisorybasis,onthemostrecentexecutivecompensationinformationthatispresentedinourproxystatement,leadingtoamoremeaningfulandcoherentcommunicationbetweenusandourstockholdersonthecompensationofournamedexecutiveofficers.Anannualadvisoryvoteonexecutivecompensationisconsistentwithourgoalofseekinginputfrom,andengagingindiscussionswith,ourstockholdersoncorporategovernancemattersandourexecutivecompensationphilosophy,policiesandpractices.

Board Recommendation

OurBoardofDirectorsunanimouslyrecommendsthatyouvoteforeveryONEYEARasthefrequencyoffuturesay-on-payvotes.

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STOCKHOLDER PROPOSALS AND DIRECTOR NOMINATIONS

Stockholderswhointendtohaveaproposalconsideredforinclusioninourproxymaterialsforpresentationatourannualmeetingofstockholderstobeheldin2021(the“2021AnnualMeeting”)pursuanttoRule14a-8undertheExchangeActmustsubmittheproposaltoourSecretaryatourofficesat5500WayzataBlvd.,Suite1600,GoldenValley,MN55416,inwritingnotlaterthanNovember16,2020.

Stockholdersintendingtopresentaproposalatour2021AnnualMeeting,butnottoincludetheproposalinourproxystatement,ortonominateapersonforelectionasadirector,mustcomplywiththerequirementssetforthinourbylaws.Ourbylawsrequire,amongotherthings,thatourSecretaryreceivewrittennoticefromthestockholderofrecordoftheirintenttopresentsuchproposalornominationnotearlierthanthecloseofbusinessonthe120thdayandnotlaterthanthecloseofbusinessonthe90thdaypriortotheanniversaryoftheprecedingyear’sannualmeetingofstockholders.Therefore,wemustreceivenoticeofsuchaproposalornominationforthe2021AnnualMeetingnoearlierthanthecloseofbusinessonDecember31,2020andnolaterthanthecloseofbusinessonJanuary30,2021.Thenoticemustcontaintheinformationrequiredbyourbylaws.Intheeventthatthedateofthe2021AnnualMeetingismorethan30daysbeforeormorethan60daysafterApril30,2021,thenourSecretarymustreceivesuchwrittennoticenotearlierthanthecloseofbusinessonthe120thdaypriortothe2021AnnualMeetingandnotlaterthanthecloseofbusinessofthe90thdaypriortothe2021AnnualMeetingor,iflater,the10thdayfollowingthedayonwhichpublicdisclosureofthedateofsuchmeetingisfirstmadebyus.SECrulespermitmanagementtovoteproxiesinitsdiscretionincertaincasesifthestockholderdoesnotcomplywiththisdeadlineand,incertainothercasesnotwithstandingthestockholder’scompliancewiththisdeadline.

Wereservetherighttoreject,ruleoutoforderortakeotherappropriateactionwithrespecttoanyproposalthatdoesnotcomplywiththeseorotherapplicablerequirements.

HOUSEHOLDING

SECrulespermitcompaniesandintermediariessuchasbrokerstosatisfydeliveryrequirementsforproxystatementsandnoticeswithrespecttotwoormorestockholderssharingthesameaddressbydeliveringasingleproxystatementorasinglenoticeaddressedtothosestockholders.Thisprocess,whichiscommonlyreferredtoas“householding,”providescostsavingsforcompaniesandhelpstheenvironmentbyconservingnaturalresources.Somebrokershouseholdproxymaterials,deliveringasingleproxystatementornoticetomultiplestockholderssharinganaddressunlesscontraryinstructionshavebeenreceivedfromtheaffectedstockholders.Onceyouhavereceivednoticefromyourbrokerthattheywillbehouseholdingmaterialstoyouraddress,householdingwillcontinueuntilyouarenotifiedotherwiseoruntilyourevokeyourconsent.If,atanytime,younolongerwishtoparticipateinhouseholdingandwouldprefertoreceiveaseparateproxystatementornotice,orifyourhouseholdisreceivingmultiplecopiesofthesedocumentsandyouwishtorequestthatfuturedeliveriesbelimitedtoasinglecopy,pleasenotifyyourbroker.YoucanalsorequestpromptdeliveryofacopyofthisProxyStatementandtheAnnualReportbycontactingtheBroadridgeFinancialSolutions,Inc.at(866)540-7095orinwritingatBroadridge,HouseholdingDepartment,51MercedesWay,Edgewood,NewYork11717.

2019 ANNUAL REPORT

Our2019AnnualReport,includingourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019,isbeingmailedwiththisProxyStatementtothosestockholdersthatreceivethisProxyStatementinthemail.StockholdersthatreceivetheNoticeRegardingtheAvailabilityofProxyMaterialscanaccessour2019AnnualReport,includingourAnnualReportonForm10-Kfor2019,atwww.proxyvote.com.

OurAnnualReportonForm10-KforthefiscalyearendedDecember31,2019hasalsobeenfiledwiththeSEC.ItisavailablefreeofchargeattheSEC’swebsiteatwww.sec.gov.Uponwrittenrequestbyastockholder,wewillmailwithoutchargeacopyofourAnnualReportonForm10-K,includingthefinancialstatementsandfinancialstatementschedules,butexcludingexhibits.ExhibitstotheAnnualReportonForm10-Kareavailableuponpaymentofareasonablefee,whichislimitedtoourexpensesinfurnishingtherequestedexhibit.AllrequestsshouldbedirectedtotheSecretary,InspireMedicalSystems,Inc.,5500WayzataBlvd.,Suite1600,GoldenValley,MN55416.

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Your vote is important.PleasepromptlyvoteyoursharesbyfollowingtheinstructionsforvotingontheNoticeRegardingtheAvailabilityofProxyMaterialsor,ifyoureceivedapaperorelectroniccopyofourproxymaterials,bycompleting,signing,datingandreturningyourproxycardorbyInternetortelephonevotingasdescribedonyourproxycard. ByOrderoftheBoardofDirectors

  TimothyP.Herbert President, Chief Executive Officer and Secretary

GoldenValley,MinnesotaMarch16,2020

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