Document:

Exhibit 10.2

     

   
   

    

   
  

    
    SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

     

    THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of December 22, 2022, and effective as
      of December 31, 2022 (the “Second Amendment Effective Date”), is entered into by and among ALDEYRA THERAPEUTICS INC., a Delaware corporation (“Aldeyra”), Helio Vision, LLC, a Delaware limited liability company, and each of Aldeyra’s
      Qualified Subsidiaries (hereinafter collectively referred to as the “Borrower”), the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (as defined below) (collectively, referred to as “Lender”)
      and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and Lender (in such capacity, “Agent”).

     

    Borrower, Lender and Agent are parties to that certain Loan and Security Agreement, dated as of March 25, 2019 (the “Original
        Loan Agreement”; the Original Loan Agreement, as amended by the First Amendment to Loan and Security Agreement dated April 20, 2021 the “Existing Loan Agreement”; and the Existing Loan Agreement, as amended by this Amendment and as
      further amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).  Borrower has requested that Agent and Lender agree to certain amendments to the Loan Agreement.  Agent and Lender have agreed to such
      request, subject to the terms and conditions hereof.

     

    Accordingly, the parties hereto agree as follows:

     

    SECTION 1          Definitions; Interpretation.

     

    (a)            Terms Defined in Loan Agreement.  All capitalized terms used in this Amendment
        (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

     

    (b)            Rules of Construction.  The rules of construction that appear in Section 1.1
        of the Loan Agreement shall be applicable to this Amendment and are incorporated herein by this reference.

     

    SECTION 2          Amendments to the Loan Agreement.

     

    (a)            Upon satisfaction of the conditions set forth in Section 3 hereof, the Existing Loan Agreement is hereby
        amended as follows:

     

    (i)            New Definitions.  The following definitions are added to Section 1.1 in their proper alphabetical order:

     

    “End of Term Charge I” means $1,042,500.

     

    “End of Term Charge II” means $292,500.

     

    “Second Amendment Effective Date” means December 31, 2022.

     

    (ii)            Amended and Restated Definitions.  The following definitions are hereby amended and restated as follows:

     

    “Amortization Date” means May 1, 2024.

     

    “End of Term Charge” means, collectively, End of Term Charge I and End of Term Charge II.

     

    “Term Loan Maturity Date” means October 1, 2024.

     

    (iii)            Section 2.5.  Section 2.5 is hereby amended and restated as follows:

    
      
        

    

    
    “Prepayment. At its option upon at least five (5) Business Days prior written notice to Agent, Borrower may
      prepay all, but not less than all, of the outstanding Advances by paying the entire principal balance, all accrued and unpaid interest thereon, plus all unpaid fees and other amounts owing under the Loan Documents at such time (including, for the
      avoidance of doubt, any unpaid and outstanding End of Term Charge), together with a prepayment charge equal to the following percentage of the Advance amount being prepaid: if such Advance amounts are prepaid in any of the first twelve (12) months
      following the Second Amendment Effective Date, 0.75% (the “Prepayment Charge”); and thereafter, 0.0%. Borrower agrees that the Prepayment Charge is a reasonable calculation of Lender’s lost profits in view of the difficulties and impracticality of
      determining actual damages resulting from an early repayment of the Advances. Borrower shall prepay the outstanding amount of all principal and accrued interest through the prepayment date and the Prepayment Charge upon the occurrence of a Change in
      Control. Notwithstanding the foregoing, Agent and Lender agree to waive the Prepayment Charge if Agent and Lender (in its sole and absolute discretion) agree in writing to refinance the Advances prior to the Term Loan Maturity Date.”

     

    (iv)          Section 2.6.  Section 2.6 is hereby amended and restated as follows:

     

    “End of Term Charge.

     

    (a)  On the earliest to occur of (i) October 1, 2023, (ii) the date that Borrower prepays the outstanding
      Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) in full, or (iii) the date that the Secured Obligations become due and payable,
      Borrower shall pay Lender the End of Term Charge I.  Notwithstanding the required payment date of such charge, it shall be deemed earned by Lender as of the Closing Date.

     

    (b)  On the earliest to occur of (i) the Term Loan Maturity Date, (ii) the date that Borrower prepays the
      outstanding Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) in full, or (iii) the date that the Secured Obligations become due and
      payable, Borrower shall pay Lender the End of Term Charge II.  Notwithstanding the required payment date of such charge, it shall be deemed earned by Lender as of the Second Amendment Effective Date.”

     

    (v)            Section 2.7.  The last sentence of Section 2.7 is hereby amended and restated as follows:

     

    “Borrower expressly acknowledges that their agreement to pay each of the Prepayment Charge and the End of Term
      Charge to Lender as herein described was on the Closing Date and the Second Amendment Effective Date and continues to be a material inducement to Lender to provide the Term Loans.”

     

    (vi)            Schedule 1.1.  Schedule 1.1 is hereby amended and restated in its entirety as set forth in Annex I attached
        hereto.

     

    (b)            References Within Existing Loan Agreement.  Each reference in the Existing
        Loan Agreement to “this Agreement” and the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the Existing Loan Agreement as amended by this Amendment.

     

    SECTION 3          Conditions of Effectiveness.  The effectiveness of Section 2 of this Amendment
        shall be subject to the satisfaction of each of the following conditions precedent:

     

    (a)            Borrower shall have paid (i) all invoiced costs and expenses then due in accordance with Section 5(e) of this
        Amendment, and (ii) all other fees, costs and expenses, if any, due and payable as of the date hereof under the Loan Agreement.

    
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    (b)            Agent shall have received:

     

    (i)            this Amendment, executed by Agent, Lender and Borrower; and

     

    (ii)            such other documents as Agent may reasonably request.

     

    (c)            On the date hereof and the Second Amendment Effective Date, after giving effect to the amendment of the Existing Loan
        Agreement contemplated hereby, there exist no Events of Default or events that with the passage of time would result in an Event of Default.

     

    SECTION 4          Representations and Warranties.  To induce Agent and Lender to enter into this
        Amendment, each Borrower hereby confirms, as of the date hereof and the Second Amendment Effective Date, that (a) the representations and warranties made by it in Section 5 of the Loan Agreement and in the other Loan Documents are true and correct
        in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
        qualified or modified by materiality in the text thereof provided, further, that to the extent such representations and warranties by their terms expressly relate only to a prior date such representations and warranties shall be true and correct as
        of such prior date; (b) there has not been and there does not exist a Material Adverse Effect; (c) other than as updated on Exhibit A attached hereto that the information included in the Perfection Certificate delivered to Agent on the
        Closing Date (and as amended through the date hereto) remains true and correct; (d) Agent has and shall continue to have valid, enforceable and perfected first-priority liens, subject only to Permitted Liens, on and security interests in the
        Collateral and all other collateral heretofore granted by Borrower to Agent, pursuant to the Loan Documents or otherwise granted to or held by Agent; (e) the agreements and obligations of Borrower contained in the Loan Documents and in this
        Amendment constitute the legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws
        of general application affecting the enforcement of creditors’ rights or by the application of general principles of equity; (f) the execution, delivery and performance of this Amendment by Borrower will not violate any law, rule, regulation,
        order, contractual obligation or organizational document of Borrower and will not result in, or require, the creation or imposition of any lien, claim or encumbrance of any kind on any of its properties or revenues; and (g) no Event of Default has
        occurred and is continuing.

     

    SECTION 5           Miscellaneous.

     

    (a)            Loan Documents Otherwise Not Affected; Reaffirmation; No Novation.

     

    (i)            Except as expressly amended pursuant hereto or referenced herein, the Existing Loan Agreement and the other Loan
        Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects.  Lender’s and Agent’s execution and delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing
        or otherwise create any express or implied duty by any of them to provide any other or further amendments, consents or waivers in the future.

     

    (ii)            Each Borrower hereby expressly (1) reaffirms, ratifies and confirms its Secured Obligations under the Existing Loan
        Agreement and the other Loan Documents, (2) reaffirms, ratifies and confirms the grant of security under Section 3.1 of the Existing Loan Agreement, (3) reaffirms that such grant of security in the Collateral secures all Secured Obligations under
        the Existing Loan Agreement, including without limitation any Term Loans funded on or after the date hereof, as of the date hereof, and with effect from (and including) the date hereof and the Second Amendment Effective Date, such grant of security
        in the Collateral: (x) remains in full force and effect notwithstanding the amendments expressly referenced herein; and (y) secures all Secured Obligations under the Existing Loan Agreement, as amended by this Amendment, and the other Loan
        Documents, and (4) agrees that the Existing Loan Agreement and each other Loan Document shall remain in full force and effect following any action contemplated in connection herewith.

     

    (iii)            This Amendment is not a novation and the terms and conditions of this Amendment shall be in addition to and
        supplemental to all terms and conditions set forth in the Loan Documents. Nothing in this Amendment is intended, or shall be construed, to constitute an accord and satisfaction of Borrower’s Secured Obligations under or in connection with the
        Existing Loan Agreement and any other Loan Document or to modify, affect or impair the perfection or continuity of Agent’s security interest in, (on behalf of itself and Lender) security titles to or other liens on any Collateral for the Secured
        Obligations.

    
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    (b)            Conditions.  For purposes of determining compliance with the conditions
        specified in Section 3, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or
        acceptable or satisfactory to Lender unless Agent shall have received notice from Lender prior to the Second Amendment Effective Date specifying its objection thereto.

     

    (c)            Release.  In consideration of the agreements of Agent and Lender contained
        herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby fully, absolutely,
        unconditionally and irrevocably releases, remises and forever discharges Agent and Lender, and each of their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers,
        attorneys, employees, agents and other representatives (Agent, Lender and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes
        of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever of every
        name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which  Borrower, or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees
        or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the Second Amendment Effective Date for or on account of, or in relation to, or in any way in connection with the
        Loan Agreement, or any of the other Loan Documents or the transactions thereunder or related thereto.  Each Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used
        as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.  Each Borrower agrees that no fact, event, circumstance, evidence or transaction
        which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.  The provisions of this section shall survive payment in full of the Secured
        Obligations, full performance of all the terms of this Amendment and the other Loan Documents.

     

    (d)            No Reliance.  Borrower hereby acknowledges and confirms to Agent and Lender
        that each such Borrower is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.

     

    (e)           Costs and Expenses.  Borrower agrees to pay to Agent on the date hereof the
        reasonable and documented out-of-pocket costs and expenses of Agent and Lender party hereto, and the reasonable and documented fees and disbursements of counsel to Agent and Lender party hereto in connection with the negotiation, preparation,
        execution and delivery of this Amendment and any other documents to be delivered in connection herewith on the date hereof.

     

    (f)            Binding Effect.  This Amendment binds and is for the benefit of the
        successors and permitted assigns of each party.

     

    (g)          Governing Law.  This Amendment and the other Loan Documents shall be governed
        by, and construed and enforced in accordance with, the laws of the State of New York, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.

     

    (h)         Complete Agreement; Amendments.  This Amendment and the Loan Documents represent
        the entire agreement about this subject matter and supersede prior negotiations or agreements with respect to such subject matter.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the
        subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

     

    (i)            Severability of Provisions.  Each provision of this Amendment is severable
        from every other provision in determining the enforceability of any provision.

    
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    (j)            Counterparts.  This Amendment may be executed in any number of counterparts
        and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Amendment.  Delivery of an executed counterpart of a signature page of this Amendment by
        facsimile, portable document format (.pdf) or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof.

     

    (k)            Loan Documents. This Amendment and the documents related thereto shall
        constitute Loan Documents.

     

    (l)            Electronic Execution of Certain Other Documents.  The words “execution,”
        “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Amendment and the transactions contemplated hereby (including without limitation assignments, assumptions, amendments,
        waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by Agent, or the keeping of records in electronic form, each of which shall
        be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic
        Signatures in Global and National Commerce Act or any other similar state laws based on the Uniform Electronic Transactions Act.

     

    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

    
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    IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.

     

    
      	

            	
              BORROWER:

            	

            
	

            	

            	

            
	

            	
              ALDEYRA THERAPEUTICS, INC.

            
	

            	

            	

            
	

            	Signature: 

            	 /s/ Bruce Greenberg            

            
	

            	

            	

            
	

            	Print Name:	Bruce Greenberg
	

            	

            	

            
	

            	Title: 

            	Interim Chief Financial Officer

    

    

     

    
      	

            	HELIO VISION, LLC
	

            	

            	

            
	

            	Signature:	 /s/ Todd C. Brady               

            
	

            	

            	

            
	

            	Print Name:	Todd C. Brady, M.D., Ph.D.
	

            	

            	

            
	

            	Title: 

            	Chief Executive Officer, President  & Secretary

    

    

    

     

    [SIGNATURES CONTINUE ON THE NEXT PAGE]

     

    

     

    

    
      [Signature Page to Second Amendment to Loan and Security Agreement]

    

    
      
        

    

    
      	

            	
              AGENT:

            	

            
	

            	

            	

            
	

            	HERCULES CAPITAL, INC.
	

            	

            	

            
	

            	Signature:	/s/ Jennifer Choe                

            
	

            	

            	

            
	

            	Print Name:	Jennifer Choe
	

            	

            	

            
	

            	Title: 

            	Associate General Counsel

    

     

    

     

    

    
      	

            	LENDER:	

            
	

            	

            	

            
	

            	
              HERCULES CAPITAL, INC.

            
	

            	

            	

            
	

            	Signature: 

            	/s/ Jennifer Choe              

            
	

            	

            	

            
	

            	Print Name: 

            	Jennifer Choe
	

            	

            	

            
	

            	Title:	
              Associate General Counsel

            

    

    

    
       

      

      [Signature Page to Second Amendment to Loan and Security Agreement]

    

    
      
        

    

     Annex I

    

     

    

    SCHEDULE 1.1

     

    COMMITMENTS

      

      

     

    	
            LENDER

          	
            TRANCHE

          	
            TERM COMMITMENT

          
	
            Hercules Capital, Inc.

          	
            Tranche I-A

          	
            $0*

          
	
            Hercules Capital, Inc.

          	
            Tranche I-B

          	
            $15,000,000

          
	
            Hercules Capital, Inc.

          	
            Tranche II

          	
            $0*

          
	
            Hercules Capital, Inc.

          	
            Tranche III

          	
            $0*

          
	
            Hercules Capital, Inc.

          	
            Tranche IV

          	
            $20,000,000**

          
	
            TOTAL COMMITMENTS

          	 	
            $35,000,000

          

    

    

    *Tranche I-A, Tranche II and Tranche III are no longer available to be drawn per the terms of the Agreement.

     

      

    
      **Funding of Tranche IV is subject to approval by Lender’s investment committee in its sole and unfettered discretion.

    

    
      
        

    

    Exhibit A

    

      

    AMENDED AND RESTATED HERCULES CAPITAL PERFECTION CERTIFICATEExhibit 10.1

 

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS THIRD AMENDMENT to Loan
and Security Agreement (this “Amendment”) is entered into as of December 27, 2022 (the “Amendment Date”),
by and among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 115 South Union Street, Suite 300, Alexandria,
VA 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule
1.1 to the Loan Agreement (as defined below) or otherwise a party thereto from time to time including Oxford in its capacity as a Lender
(each a “Lender” and collectively, the “Lenders”), and KALA PHARMACEUTICALS, INC., a Delaware corporation with
an office located at 1167 Massachusetts Avenue, Arlington, MA 02476 (“Kala”) and COMBANGIO, INC., a Delaware corporation
with an office located at 1440 O’Brien Drive, Suite D, Menlo Park CA 94025 (individually and collectively, jointly and severally,
 “Borrower”).

 

WHEREAS, Collateral Agent,
Borrower and the Lenders party thereto from time to time have entered into that certain Loan and Security Agreement, dated as of May 4,
2021 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which the
Lenders have provided to Borrower certain loans in accordance with the terms and conditions thereof; and

 

WHEREAS, Kala intends to transfer
the listing of its common stock from the Nasdaq Global Select Market to the Nasdaq Capital Market (the “Transfer Event”);

 

WHEREAS, Borrower has requested
that Collateral Agent and Lenders amend certain provisions of the Loan Agreement to permit the Transfer Event and to make certain other
changes as provided herein;

 

WHEREAS, Borrower, Lenders
and Collateral Agent desire to amend certain provisions of the Loan Agreement as provided herein and subject to the terms and conditions
set forth herein, including, without limitation, amending the provisions of the Loan Agreement that would prohibit the Transfer Event;

 

NOW,
THEREFORE, in consideration of the promises, covenants and agreements contained herein, and other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, Borrower, Lenders and Collateral Agent hereby agree as follows:

 

		1.	Definitions.
Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement.

 

		2.	Section
2.2(b) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

(b)       Repayment.
Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding Date of each Term
Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding
the Amortization Date. Borrower agrees to pay, on the Funding Date of each Term Loan, any initial partial interest payment otherwise due
for the period between the Funding Date of such Term Loan and the first Payment Date thereof. Commencing on the Amortization Date, and
continuing on the Payment Date of each month thereafter, Borrower shall make consecutive equal monthly payments of principal, together
with applicable interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent
manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section
2.3(a), and (3) a repayment schedule equal to seventeen (17) months. All unpaid principal and accrued and unpaid interest with respect
to each Term Loan is due and payable in full on the Maturity Date. Each Term Loan may only be prepaid in accordance with Sections 2.2(c)
and 2.2(d).

 

     

     

    

 

		3.	Section
2.2(c) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

(c)       Mandatory
Prepayments.

 

(i)       If
the Term Loans are accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Lenders, payable to
each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of: (i) all outstanding principal of the Term
Loans plus accrued and unpaid interest thereon through the prepayment date, (ii) the Final Payment and (iii) all other Obligations that
are due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts. Notwithstanding
(but without duplication with) the foregoing, on the Maturity Date, if the Final Payment had not previously been paid in full in connection
with the prepayment of the Term Loans in full, Borrower shall pay to Collateral Agent, for payment to each Lender in accordance with its
respective Pro Rata Share, the Final Payment in respect of the Term Loan(s).

 

(ii)       Notwithstanding
anything herein to the contrary, on or before June 30, 2023, Borrower shall pay to Lenders, in accordance with each Lender’s respective
Pro Rata Share, an amount equal to Five Million Dollars ($5,000,000.00) representing (i) partial prepayment of the outstanding principal
amount of Term Loans in an amount equal to $4,672,897.20, and (ii) the Final Payment in the amount of $327,102.80 with respect to such
principal amount being prepaid (the “First Mandatory Prepayment”). For the purposes of clarity, any partial prepayment
shall be applied pro-rata to all outstanding amounts under each Term Loan, and shall be applied pro-rata within each Term Loan tranche
to reduce amortization payments under Section 2.2(b) on a pro-rata basis. At the time of making the First Mandatory Prepayment, Borrower
shall also pay the accrued and unpaid interest with respect to the principal amount being prepaid as part of the First Mandatory Prepayment.

 

(iii)        Notwithstanding
anything herein to the contrary, on or before January 31, 2024, in addition to the First Mandatory Prepayment, Borrower shall pay to Lenders,
in accordance with each Lender’s respective Pro Rata Share, an amount equal to Five Million Dollars ($5,000,000.00) representing
(i) partial prepayment of the outstanding principal amount of Term Loans in an amount equal to $4,672,897.20, (ii) and the Final Payment
in the amount of $327,102.80 with respect to such principal amount being prepaid (the “Second Mandatory Prepayment”).
For the purposes of clarity, any partial prepayment shall be applied pro-rata to all outstanding amounts under each Term Loan, and shall
be applied pro-rata within each Term Loan tranche to reduce amortization payments under Section 2.2(b) on a pro-rata basis. At the time
of making the Secondary Mandatory Prepayment, Borrower shall also pay the accrued and unpaid interest with respect to the principal amount
being prepaid as part of the Second Mandatory Prepayment.

 

		4.	Section
2.2(d) of the Loan Agreement is hereby amended and restated as follows:

 

(d)       Permitted
Prepayment of Term Loans.

 

(i)       Borrower
shall have the option to prepay at any time all, but not less than all, of the Term Loans advanced by the Lenders under this Agreement,
provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least ten (10) Business
Days prior to such prepayment, and (ii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with
its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loans plus accrued and unpaid interest
thereon through the prepayment date, (B) the Final Payment, plus (C) all other Obligations that are due and payable, including Lenders’
Expenses and interest at the Default Rate with respect to any past due amounts.

 

(ii)       Notwithstanding
anything herein to the contrary, Borrower shall also have the option to prepay at any time part of Term Loans advanced by the Lenders
under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least
ten (10) Business Days prior to such prepayment, (ii) prepays such part of the Term Loans in a denomination that is a whole number multiple
of Five Hundred Thousand Dollars ($500,000.00) or the amounts set for the below with respect to the First Extension Prepayment and the
Second Extension Prepayment, and (iii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with its
respective Pro Rata Share, an amount equal to the sum of (A) the portion of outstanding principal of such Term Loans plus all accrued
and unpaid interest thereon through the prepayment date, (B) the applicable Final Payment, and (C) all other Obligations that are then
due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts. For the purposes
of clarity, any partial prepayment (including, without limitation, any partial prepayment made as part of the First Extension Prepayment
or Second Extension Prepayment) shall be applied pro-rata to all outstanding amounts under each Term Loan, and shall be applied pro-rata
within each Term Loan tranche to reduce amortization payments under Section 2.2(b) on a pro-rata basis.

 

    2

     

    

 

If on or before
December 31, 2024, Borrower makes a single prepayment in the aggregate amount of Five Million Dollars ($5,000,000.00) (“First
Extension Prepayment”) pursuant to this Section 2.2(d)(ii), after having made the First Mandatory Prepayment and Second Mandatory
Prepayment, such prepayment will be applied as follows: (i) partial prepayment of the outstanding principal amount of Term Loans in an
amount equal to $4,672,897.20, (ii) and the Final Payment in the amount of $327,102.80 with respect to such principal amount being prepaid.
At the time of making the First Extension Prepayment, Borrower shall also pay the accrued and unpaid interest with respect to the principal
amount being prepaid as part of the First Extension Prepayment.

 

If on or before
June 30, 2025, Borrower makes a single prepayment in the aggregate amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00)
(“Second Extension Prepayment”) pursuant to this Section 2.2(d)(ii), after having made the First Mandatory Prepayment,
the Second Mandatory Prepayment and the First Extension Prepayment, such prepayment will be applied as follows: (i) partial prepayment
of the outstanding principal amount of Term Loans in an amount equal to $2,336,448.60, (ii) and the Final Payment in the amount of $163,551.40
with respect to such principal amount being prepaid. At the time of making the Second Extension Prepayment, Borrower shall also pay the
accrued and unpaid interest with respect to the principal amount being prepaid as part of Second Extension Prepayment.

 

(iii)       Notwithstanding
anything to the contrary contained in this Agreement, Borrower may rescind any notice of prepayment if such prepayment would have resulted
from a refinancing of all or a portion of the Term Loans, which refinancing or transaction shall not be consummated or shall otherwise
be delayed.

 

		5.	Section
2.5(d) of the Loan Agreement is hereby amended and restated as follows:

 

(d)       Intentionally
Left Blank; and

 

		6.	Section
8.1 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

8.1       Payment
Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date (including,
without limitation, pursuant to Section 2.2(b) or Section 2.2(c)), or (b) pay any other Obligations within three (3) Business Days after
such Obligations are due and payable (which three (3) Business Day grace period shall not apply to payments due on the Maturity Date or
the date of acceleration pursuant to Section 9.1 (a) hereof). During the cure period, the failure to cure the payment default is not an
Event of Default (but no Credit Extension will be made during the cure period);

 

		7.	Section
8.13 of the Loan Agreement is hereby amended and restated as follows:

 

8.13       Delisting.
The shares of common stock of Kala are delisted from the Nasdaq Stock Market because of failure to comply with the continued listing standards
of the listing tier of the Nasdaq Stock Market on which such common stock is then listed or due to a voluntary delisting which results
in such common stock not being listed on any nationally recognized stock exchange in the United States having listing standards at least
as restrictive as the Nasdaq Capital Market. For the purposes of clarification, transfer of the listing of Kala’s common stock from
the Nasdaq Global Select Market to the Nasdaq Capital Market shall not constitute an Event of Default under this Section 8.13.

 

		8.	Section
13.1 of the Loan Agreement is hereby amended by adding the following definitions thereto in alphabetical order:

 

"Kala” means KALA
PHARMACEUTICALS, INC., a Delaware corporation.

 

“First Extension Prepayment”
is defined in Section 2.2(d)(ii).

 

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“First
Mandatory Prepayment” is defined in Section 2.2(c)(ii).

 

“Second Extension Prepayment”
is defined in Section 2.2(d)(ii).

 

“Second Mandatory Prepayment”
is defined in Section 2.2(c)(iii).

 

		9.	Section
13.1 of the Loan Agreement is hereby further amended by amending and restating the following definitions therein as follows:

 

“Amortization Date” is January 1, 2025;
provided that if the First Extension Prepayment is made by Borrower, the Amortization Date shall be July 1, 2025; and provided,
further that if the First Extension Prepayment and the Second Extension Prepayment are made by Borrower, the Amortization Date shall
be January 1, 2026.

 

“Final Payment” is a payment (in addition
to and not a substitution for the regular monthly payments of principal plus accrued interest) due on the earliest to occur of (a) the
Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.2(c) or (d), equal
to the original principal amount of such Term Loan multiplied by the Final Payment Percentage, payable to Lenders in accordance with their
respective Pro Rata Shares. For the avoidance of doubt, the calculation of any Final Payment shall not include the principal amount prepaid
in accordance with Section 2.2(c)(ii), Section 2.2(c)(iii) or Section 2.2(d)(ii) if a Final Payment based on such principal amount was
made at the time of such prepayment.

 

“Maturity Date” is May 1, 2026; provided
that if the First Extension Prepayment is made by Borrower, the Maturity Date shall be November 1, 2026; and provided further
that if the First Extension Prepayment and the Second Extension Prepayment are made by Borrower, the Maturity Date shall be May 1, 2027.

 

“Obligations” are all of Borrower’s
obligations to pay when due any debts, principal, interest, Lenders’ Expenses, the Final Payment, and other amounts Borrower owes
the Lenders now or later, in connection with, related to, following, or arising from, out of or under, this Agreement or, the other Loan
Documents, or otherwise, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities,
or obligations of Borrower assigned to the Lenders and/or Collateral Agent, and the performance of Borrower’s duties under the Loan
Documents.

 

		10.	Section
13.1 of the Loan Agreement is hereby further amended by deleting therefrom the definition of “Prepayment Fee.”

 

		11.	Limitation
of Amendment.

 

		a.	The
amendments and consents set forth above are effective for the purposes set forth herein and shall be limited precisely as written and
shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document,
or (b) otherwise prejudice any right, remedy or obligation which Lenders or Borrower may now have or may have in the future under or
in connection with any Loan Document, as amended hereby.

 

		b.	This
Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties,
covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain
in full force and effect. For the avoidance of doubt, this Amendment shall be considered part of the Loan Documents.

 

		12.	To
induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders
as follows:

 

		a.	Immediately
after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete
in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct in all material respects as of such date), and (b) no Event of Default has occurred and is continuing;

 

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		b.	Borrower
has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended
by this Amendment;

 

		c.	The
organizational documents of Borrower last delivered to Collateral Agent on before the date hereof, remain true, accurate and complete
and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

		d.	The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, have been duly authorized;

 

		e.	The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, do not and will not contravene (i) any material law or regulation binding on or affecting Borrower, (ii) any
material contractual restriction with a Person binding on Borrower, (iii) any material order, judgment or decree of any court or other
governmental or public body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower;

 

		f.	The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording
or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except
as already has been obtained or made; and

 

		g.	This
Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium
or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

		13.	Except
as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment. This Amendment
and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.

 

		14.	This
Amendment shall be deemed effective as of the Amendment Date upon (a) the due execution and delivery by Borrower to Collateral Agent
of this Amendment, (b) receipt by Borrower of gross proceeds of at least $24,999,850.00 from the sale and issuance of its Series E Convertible
Non-Redeemable Preferred Stock, pursuant to that certain Securities Purchase Agreement, dated November 28, 2022, entered into by Borrower
with certain institutional investors named therein, on or after December 23, 2022 and on or before December 30, 2022 and (c) receipt
of evidence (reasonably acceptable to Collateral Agent) by Collateral Agent of the fulfilment of the conditions set forth in clause (b)
of this Section 14.

 

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		15.	The
Borrower hereby remises, releases, acquits, satisfies and forever discharges the Lenders and Collateral Agent, their agents, employees,
officers, directors, predecessors, attorneys and all others acting or purporting to act on behalf of or at the direction of the Lenders
and Collateral Agent (“Releasees”), of and from any and all manner of actions, causes of action, suit, debts, accounts,
covenants, contracts, controversies, agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which
any of such parties ever had, now has or, to the extent arising from or in connection with any act, omission or state of facts taken
or existing on or prior to the date hereof, may have after the date hereof against the Releasees, for, upon or by reason of any matter,
cause or thing whatsoever relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof
through the date hereof. Without limiting the generality of the foregoing, the Borrower waives and affirmatively agrees not to allege
or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they do, shall
or may have as of the date hereof, including the rights to contest: (a) the right of Collateral Agent and each Lender to exercise its
rights and remedies described in the Loan Documents; (b) any provision of this Amendment or the Loan Documents; or (c) any conduct of
the Lenders or other Releasees relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof.

 

		16.	This
Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together,
shall constitute one and the same instrument.

 

		17.	This
Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the
State of New York.

 

[Balance of Page Intentionally Left Blank]

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Loan and Security Agreement to be executed as of the
date first set forth above.

 

	BORROWER:	 
	 	 
	KALA PHARMACEUTICALS, INC.	 
	 	 
	By 	/s/ Mary Reumuth	 
	Name: Mary Reumuth	 
	Title:   Chief Financial Officer	 
	 	 
	BORROWER:	 
	 	 
	COMBANGIO, INC.	 
	 	 
	By 	/s/ Mary Reumuth	 
	Name: Mary Reumuth	 
	Title: Treasurer	 
	 	 
	COLLATERAL AGENT AND LENDER:	 
	 	 
	OXFORD FINANCE LLC	 
	 	 
	By 	/s/ Colette H. Featherly	 
	Name: Colette H. Featherly	 
	Title: Senior Vice President

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