Despite being paid more than $11.8 million over the last three years Inspire Medical Systems (INSP), a maker of medical devices treating sleep apnea, is subsidizing the cost of its Chief Executive Officer Tim Herbert’s corporate stadium suite.

In its latest annual report, Inspire disclosed a new agreement in which the company foots the bill for much of Herbert’s corporate suite at an unnamed sports and entertainment venue.

The cost sharing agreement was effective December 2023, four months after an entity controlled by Herbert purchased use of the suite from the venue. Herbert suite deal“for specified sporting and other events” runs through August 2026.

Herbert pays the stadium $200,000 annually with the fee increasing by 5% for each succeeding year.

In return for sharing in the costs, Inspire says it will have access to the suite:

“Under the Cost Sharing Agreement, we will reimburse the Entity 50% of the cost of the Suite in exchange for the right to use the Suite for 50% of the specified events at the Venue through August 2026.”

In August 2022— a year before Herbert purchased the suite— Inspire did its third follow-on stock offering since going public in 2018.

Inspire’s shares have fallen 23.3% in the last year and are flat over the last past three years.