The Company granted stock options to purchase up to an aggregate of 8,000 shares of Kala Pharmaceuticals common stock to two new employees. The stock options were granted on December 13, 2019. The grant was approved by the Compensation Committee and was made as an inducement material to each employee entering into employment with Kala Pharmaceuticals in accordance with NASDAQ Listing Rule 5635(c)(4). The option awards have an exercise price of $4.81 per share, the closing price of Kala Pharmaceuticals' common stock on December 13, 2019. The options have a ten-year term and vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee's new hire date and the remainder vesting in equal monthly installments over the following three years. Vesting of each option is subject to such employee's continued service with Kala Pharmaceuticals through the applicable vesting dates.

Kala is a biopharmaceutical company focused on the development and commercialization of therapeutics using its proprietary AMPPLIFY™ mucus-penetrating particle (MPP) Drug Delivery Technology, with an initial focus on the treatment of eye diseases. Kala has applied the AMPPLIFY Drug Delivery Technology to a corticosteroid, loteprednol etabonate (LE), designed for ocular applications, resulting in the August 2018 FDA approval of INVELTYS^® (loteprednol etabonate ophthalmic suspension) 1% for the treatment of inflammation and pain following ocular surgery and its lead product candidate, EYSUVIS™ (loteprednol etabonate ophthalmic suspension) 0.25%, for the temporary relief of the signs and symptoms of dry eye disease.