EX-10.3





 Exhibit 10.3 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is made and entered into as of August 5, 2019, by and between Hajime Uba
(the “Executive”) and Kura Sushi USA, Inc., a Delaware corporation (the “Company”). 
 WHEREAS, the
Executive currently serves as Chairman of the Board, President and Chief Executive Officer of the Company; 
 WHEREAS, the Company has filed
a Form S-1 Registration Statement under the Securities Act of 1993 with the Securities and Exchange Commission and anticipates effecting an initial public offering of the shares of its Class A common
stock (“IPO”); and 
 WHEREAS, the Company and the Executive wish to continue the Executive’s existing employment
relationship on the terms and conditions set forth in this Agreement; 
 NOW, THEREFORE, in consideration of the mutual covenants, promises,
and obligations set forth herein, the parties agree as follows: 
 1.    Term. The Executive’s employment
hereunder shall be effective as of the date the IPO is effective (the “Effective Date”) and shall continue until the third anniversary thereof, unless terminated earlier pursuant to Section 5 of this Agreement; provided that,
on such third anniversary of the Effective Date and each annual anniversary thereafter (such date and each annual anniversary thereof, a “Renewal Date”), the Agreement shall be deemed to be automatically extended, upon the same
terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of the Agreement at least 120 days’ prior to the applicable Renewal Date. The period during which the
Executive is employed by the Company hereunder is hereinafter referred to as the “Employment Term.” 

2.    Position and Duties. 

2.1    Position. During the Employment Term, the Executive shall serve as the Chairman of the Board, President and
Chief Executive Officer of the Company, reporting to the board of directors of the Company (the “Board”). In such position, the Executive shall have such duties, authority, and responsibilities as shall be determined from time to
time by the Board, which duties, authority, and responsibilities are consistent with the Executive’s position. The Executive shall also serve as a member of the Board for no additional compensation. 

2.2    Duties. During the Employment Term, the Executive shall devote substantially all of his business time and
attention to the performance of the Executive’s duties hereunder and will not engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either
directly or indirectly without the prior written consent of the Board. Notwithstanding the foregoing, the Executive will be permitted to (a) with the prior written consent of the Board act or serve as a director, trustee, committee member, or
principal of any type of business, civic, or 

  
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charitable organization, and (b) purchase or own less than five percent (5%) of the publicly traded securities of any corporation; provided that, such ownership represents a passive
investment and that the Executive is not a controlling person of, or a member of a group that controls, such corporation; provided further that, the activities described in clauses (a) and (b) do not interfere with the performance of the
Executive’s duties and responsibilities to the Company as provided hereunder, including, but not limited to, the obligations set forth in Section 2 hereof. 

3.    Place of Performance. The principal place of Executive’s employment shall be the Company’s principal
executive office currently located at 17932 Sky Park Circle, Suite H, Irvine, California; provided that, the Executive may be required to travel on Company business during the Employment Term. 

4.    Compensation. 

4.1    Base Salary. The Company shall pay the Executive an annual rate of base salary of $340,000 in periodic
installments in accordance with the Company’s customary payroll practices and applicable wage payment laws. The Executive’s base salary shall be reviewed at least annually by the Board and the Board may, but shall not be required to,
increase the base salary during the Employment Term. The Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as “Base Salary.” 

4.2    Annual Bonus. 

(a)    For each fiscal year of the Employment Term, the Executive shall be eligible to participate in the Company’s
annual short-term incentive plan (the “Annual Bonus”). However, the decision to provide any Annual Bonus and the amount and terms of any Annual Bonus shall be in the sole and absolute discretion of the Compensation Committee of the
Board (the “Compensation Committee”). 
 (b)    The Annual Bonus, if any, will be paid within two and a
half (2 1/2) months after the end of the applicable fiscal year. 
 (c)    Except as otherwise provided in
Section 5, (i) the Annual Bonus will be subject to the terms of the Company annual bonus plan under which it is granted and (ii) in order to be eligible to receive an Annual Bonus, the Executive must be employed by the Company on the date
that Annual Bonuses are paid. 
 4.3    Long-Term Incentive Compensation. During the Employment Term, Executive
shall be eligible to participate in the 2018 Incentive Compensation Plan established by the Company (“Equity Incentive Plan”). The terms of such incentive stock options shall be as set forth in the applicable Equity Incentive Plan
and applicable award agreements, which shall control in the event of a conflict with this Agreement. 
 4.4    Company
Car. During the Employment Term, the Executive shall be entitled to have full time use of a Company provided vehicle and Company coverage of insurance, maintenance and gas expenses related to the use of such vehicle. 

  
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 4.5    Employee Benefits. During the Employment Term, the
Executive shall be entitled to participate in all employee benefit plans, practices, and programs maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”), to the extent consistent with
applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or terminate any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and
applicable law. 
 4.6    Vacation; Paid Time-Off. During the Employment
Term, the Executive shall be entitled to paid vacation in accordance with the Company’s vacation policies, as in effect from time to time. The Executive shall receive other paid time-off in accordance
with applicable law and the Company’s policies for executive officers as such policies may exist from time to time. 

4.7    Business Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by the Executive in connection with the performance of the Executive’s duties hereunder in accordance
with the Company’s expense reimbursement policies and procedures. 
 4.8    Indemnification. 

(a)    In the event that the Executive is made a party or threatened to be made a party to any action, suit, or
proceeding, whether civil, criminal, administrative, or investigative (a “Proceeding”), other than any Proceeding initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company or
any of its affiliates with respect to this Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the
request of the Company as a director, officer, member, employee, or agent of another corporation or a partnership, joint venture, trust, or other enterprise, the Executive shall be indemnified and held harmless by the Company to the maximum extent
permitted under applicable law and the Company’s bylaws from and against any liabilities, costs, claims, and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees), and in accordance
with Executive’s Indemnification Agreement. 
 (b)    During the Employment Term and for a period of six
(6) years thereafter, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors’ and officers’ liability insurance providing coverage to the Executive on terms that are no less favorable
than the coverage provided to other directors and similarly situated executives of the Company. 
 4.9    Clawback
Provisions. Notwithstanding any other provision in this Agreement to the contrary, any Annual Bonus, Equity Incentive Plan compensation, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or
arrangement with the Company which is subject to recovery under any law, government regulation, or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government
regulation, or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement). 

  
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 5.    Termination of Employment. The Employment Term and the
Executive’s employment hereunder may be terminated by either the Company or the Executive at any time and for any reason. Upon termination of the Executive’s employment during the Employment Term, the Executive shall be entitled to the
compensation and benefits described in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates. 

5.1    Expiration of the Term, For Cause or Without Good Reason. 

(a)    If the Executive’s employment is terminated upon the Executive’s failure to renew the Agreement in
accordance with Section 1, by the Company for Cause or by Executive without Good Reason, the Executive shall be entitled to receive: 

(i)    any accrued but unpaid Base Salary and accrued but unused vacation which shall be paid on the Termination Date (as
defined below) in accordance with the Company’s customary payroll procedures; 
 (ii)    any earned but unpaid
Annual Bonus in accordance with Section 4.2 herein; 
 (iii)    reimbursement for unreimbursed business expenses
properly incurred by the Executive, which shall be subject to and paid in accordance with the Company’s expense reimbursement policy and Section 4.8 herein; and 

(iv)    such employee benefits, including such equity awards granted under the Equity Incentive Plan, if any, to which the
Executive may be entitled as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments in the nature of severance or termination payments except as specifically provided herein. 

Items 5.1(a)(i) through 5.1(a)(iv) are referred to herein collectively as the “Accrued Amounts.” 

(b)    For purposes of this Agreement, “Cause” shall mean: 

(i)    the Executive’s willful failure to perform his duties (other than any such failure resulting from incapacity
due to physical or mental illness); 
 (ii)    the Executive’s willful failure to comply with any valid and legal
directive of the Board; 
 (iii)    the Executive’s willful engagement in dishonesty, illegal conduct, or
misconduct, which is, in each case, injurious to the Company or its affiliates; 

  
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 (iv)    the Executive’s embezzlement, misappropriation, or fraud,
whether or not related to the Executive’s employment with the Company; 
 (v)    the Executive’s conviction of
or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude; 

(vi)    the Executive’s violation of a material policy of the Company; 

(vii)    the Executive’s willful unauthorized disclosure of Confidential Information (as defined below); 

(viii)    the Executive’s material breach of any material obligation under this Agreement or any other written
agreement between the Executive and the Company; or 
 (ix)    any material failure by the Executive to comply with the
Company’s written policies or rules, as they may be in effect from time to time during the Employment Term. 
 For purposes of this
provision, no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or
omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of the Company. 
 (c)    For purposes of
this Agreement, “Good Reason” shall mean the occurrence of any of the following, in each case during the Employment Term without the Executive’s written consent: 

(i)    a material reduction in the Executive’s Base Salary other than a general reduction in Base Salary that affects
all similarly situated executives in substantially the same proportions; 
 (ii)    any material breach by the Company
of any material provision of this Agreement; 
 (iii)    a material, adverse change in the Executive’s authority,
duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law) taking into account the Company’s size, status as a public company, and capitalization as of the
date of this Agreement; 

  
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 (iv)    a material adverse change in the reporting structure applicable
to the Executive; or 
 (v)    the Company’s principal executive office set forth in Section 3 of this
Agreement is moved by 50 miles or more. 
 The Executive cannot terminate his employment for Good Reason unless he has provided written
notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within 30 days of the initial existence of such grounds and the Company has had at least 30 days from the date on which such notice is
provided to cure such circumstances. If the Executive does not terminate his employment for Good Reason within 30 days after the expiration of the Company’s cure period, then the Executive will be deemed to have waived his right to terminate
for Good Reason with respect to such grounds. 
 5.2    Non-Renewal by the
Company, Without Cause or for Good Reason. If the Executive’s employment is terminated by the Executive for Good Reason or by the Company without Cause or on account of the Company’s failure to renew the Agreement in accordance with
Section 1, the Executive shall be entitled to receive the Accrued Amounts and subject to the Executive’s compliance with Section 6, Section 7, Section 8, and Section 9 of this Agreement and his execution of a release of
claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the “Release”) and such Release becoming effective within 60 days following the Termination Date (such 60-day period, the “Release Execution Period”), the Executive shall be entitled to receive the following: 

(a)    a lump sum payment equal to the Executive’s Base Salary for the year in which the Termination Date occurs;

 (b)    reimbursement for the payments Executive makes for COBRA coverage for a period of twelve (12) months, or
until Executive has secured other employment, whichever occurs first, provided Executive timely elects and pays for COBRA coverage. COBRA reimbursements shall be made by the Company to Executive consistent with the Company’s normal expense
reimbursement policy, provided that Executive submits documentation to the Company substantiating his payments for COBRA coverage; and 

(c)    The treatment of any outstanding stock options shall be determined in accordance with the terms of the Equity
Incentive Plan; provided, however, that in the event of a termination pursuant to Section 5.2 of this Agreement, the vesting of any portion of the Option (as defined in the Equity Incentive Plan) scheduled to vest between the Termination Date
and August 31 of that same fiscal year shall be accelerated and treated as being vested as of the Termination Date. 

5.3    Death or Disability. 

(a)    The Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the
Employment Term, and the Company may terminate the Executive’s employment on account of the Executive’s Disability. 

  
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 (b)    If the Executive’s employment is terminated during the
Employment Term on account of the Executive’s death or Disability, the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued Amounts. Notwithstanding any other provision
contained herein, all payments made in connection with the Executive’s Disability shall be provided in a manner which is consistent with federal and state law. 

(c)    For purposes of this Agreement, “Disability” shall mean the Executive’s inability, due to
physical or mental incapacity, to perform the essential functions of his job, with or without reasonable accommodation, for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty
(120) consecutive days. Any question as to the existence of the Executive’s Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the
Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The
determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement. 

5.4    Notice of Termination. Any termination of the Executive’s employment hereunder by the Company or by the
Executive during the Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive’s death) shall be communicated by written notice of termination (“Notice of Termination”) to the other
party hereto in accordance with Section 24. The Notice of Termination shall specify: 
 (a)    The termination
provision of this Agreement relied upon; 
 (b)    To the extent applicable, the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the provision so indicated; and 
 (c)    The
applicable Termination Date. 
 5.5    Termination Date. The Executive’s “Termination Date”
shall be: 
 (a)    If the Executive’s employment hereunder terminates on account of the Executive’s death,
the date of the Executive’s death; 
 (b)    If the Executive’s employment hereunder is terminated on account
of the Executive’s Disability, the date that it is determined that the Executive has a Disability; 
 (c)    If the
Company terminates the Executive’s employment hereunder for Cause, the date the Notice of Termination is delivered to the Executive; 

(d)    If the Company terminates the Executive’s employment hereunder without Cause, the date specified in the Notice
of Termination; 

  
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 (e)    If the Executive terminates his employment hereunder with or
without Good Reason, the date specified in the Executive’s Notice of Termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered; provided that, the Company may waive all or any part of
the 30 day notice period for no consideration by giving written notice to the Executive and for all purposes of this Agreement, the Executive’s Termination Date shall be the date determined by the Company; and 

(f)    If the Executive’s employment hereunder terminates because either party provides notice of non-renewal pursuant to Section 1, the Renewal Date immediately following the date on which the applicable party delivers notice of non-renewal. 

Notwithstanding anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a “separation
from service” within the meaning of Code Section 409A. 
 5.6    Resignation of All Other Positions.
Upon termination of the Executive’s employment hereunder for any reason, the Executive shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Company or
any of its affiliates. 
 5.7    Section 280G. 

(a)    If any of the payments or benefits received or to be received by the Executive (including, without limitation, any
payment or benefits received in connection with the Executive’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement, or otherwise) (all such payments collectively referred to
herein as the “280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code (the “Code”) and will be subject to the excise tax imposed under
Section 4999 of the Code (the “Excise Tax”), then prior to making 280G Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) payment made to the Executive of the 280G Payments after payment
of the Excise Tax to (ii) the Net Benefit to the Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under
(ii) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments are subject to the Excise Tax. “Net Benefit” shall mean the present value of the 280G Payments net of
all federal, state, local, foreign income, employment, and excise taxes. Any reduction made pursuant to this Section 5.7(a) shall be made in a manner determined by the Company that is consistent with the requirements of Code Section 409A.

 (b)    All calculations and determinations under this Section 5.7 shall be made by an independent accounting
firm or independent tax counsel appointed by the Company (the “Tax Counsel”) whose determinations shall be conclusive and binding on the Company and the Executive for all purposes. For purposes of making the calculations and
determinations required by this Section 5.7, the Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company and the Executive
shall furnish the Tax Counsel with such information and documents as the Tax Counsel may reasonably request in order to make its determinations under this Section 5.7. The Company shall bear all costs the Tax Counsel may reasonably incur in
connection with its services. 

  
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 6.    Cooperation. The parties agree that certain matters in
which the Executive will be involved during the Employment Term may necessitate the Executive’s cooperation in the future. Accordingly, following the termination of the Executive’s employment for any reason, to the extent reasonably
requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the
Executive’s other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters, the
Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date. 

7.    Confidential Information. The Executive understands and acknowledges that during the Employment Term, he will
have access to and learn about Confidential Information, as defined below. 
 7.1    Confidential Information
Defined. 
 (a)    Definition. 

For purposes of this Agreement, “Confidential Information” includes, but is not limited to, all information not generally
known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies,
techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software, applications,
operating systems, software design, web design, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information,
vendor information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, payroll information,
staffing information, personnel information, employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae,
notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results,
specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Company or any of its affiliates or businesses or any existing or prospective
customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence. 

The Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is
marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. 

  
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 The Executive understands and agrees that Confidential Information includes information
developed by him in the course of his employment by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not include information that is generally available
to and known by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive or person(s) acting on the Executive’s behalf. 

(b)    Company Creation and Use of Confidential Information. 

The Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized
knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in the Company’s revolving sushi restaurants. The Executive understands and
acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace. 

(c)    Disclosure and Use Restrictions. 

The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) to not use Confidential
Information except for the benefit of the Company; (iii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole
or part, to any entity or person whatsoever (including other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to
anyone outside of the direct employ of the Company except as required in the performance of the Executive’s authorized employment duties to the Company or with the prior consent of the Board (and then, such disclosure shall be made only within
the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove
any such documents, records, files, media, or other resources from the premises or control of the Company, except as required in the performance of the Executive’s authorized employment duties to the Company or with the prior consent of the
Board (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or
regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Executive shall
promptly provide written notice of any such order to the Board. 

  
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 (d)    Notice of Immunity Under the Economic Espionage Act of 1996,
as amended by the Defend Trade Secrets Act of 2016 (“DTSA”). Notwithstanding any other provision of this Agreement: 

(i)    The Executive will not be held criminally or civilly liable under any federal or state trade secret law for any
disclosure of a trade secret that: 
 (A)    is made (1) in confidence to a federal, state, or local government
official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or 

(B)    is made in a complaint or other document filed under seal in a lawsuit or other proceeding. 

(ii)    If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the
Executive may disclose the Company’s trade secrets to the Executive’s attorney and use the trade secret information in the court proceeding if the Executive: 

(A)    files any document containing trade secrets under seal; and 

(B)    does not disclose trade secrets, except pursuant to court order. 

The Executive understands and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information
shall commence immediately upon the Executive first having access to such Confidential Information and shall continue during and after his employment by the Company until such time as such Confidential Information has become public knowledge other
than as a result of the Executive’s breach of this Agreement or breach by those acting in concert with the Executive or on the Executive’s behalf. 

(e)    Former Employer Information. Executive agrees that during his employment with the Company he will not
improperly use, disclose, or induce the Company to use, any proprietary information or trade secrets of any former or concurrent employer or other person or entity. Executive further agrees that he will not bring onto the premises of the Company or
transfer onto the Company’s technology systems any unpublished document, proprietary information or trade secrets belonging to any such employer, person or entity unless consented to in writing by both the Company and such employer, person or
entity. 
 (f)    Third Party Information. Executive recognizes that the Company may have received and in the
future may receive from third parties associated with the Company, e.g., the Company’s customers, suppliers, licensors, licensees, partners, or collaborators (“Associated Third Parties”) their confidential or proprietary
information (“Associated Third Party Confidential Information”). By way of example, Associated Third Party Confidential Information may include the habits or practices, technology or requirements of Associated Third


  
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Parties, and/or information related to the business conducted between the Company and such Associated Third Parties. Executive agrees at all times during his employment with the Company and
thereafter to hold any Associated Third Party Confidential Information in the strictest confidence, and not to use or to disclose it to any person, firm or corporation, except as necessary in carrying out his work for the Company consistent with the
Company’s agreement with such Associated Third Parties. Executive understands that unauthorized use or disclosure of Associated Third Party Confidential Information during his employment will lead to disciplinary action, up to and including
immediate termination of his employment and legal action by the Company. 

8.    Non-Disparagement. The Executive agrees and covenants that he will not
at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, directors, officers, customers,
suppliers, investors and other associated third parties. 
 This Section 8 does not, in any way, restrict or impede the Executive from
exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that
such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order to the Board. 

9.    Solicitation of Employees. Executive agrees that for a period of twelve (12) months immediately following
the termination of his relationship with the Company for any reason, whether voluntary or involuntary, with or without cause, Executive shall not either directly or indirectly solicit any of the Company’s employees to leave their employment, or
attempt to solicit employees of the Company, either for Executive or for any other person or entity. 

10.    Remedies. In the event of a breach or threatened breach by the Executive of Section 7, Section 8,
or Section 9 of this Agreement, the Executive hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or
threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The
aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief. 

11.    Arbitration. Any dispute, controversy, or claim arising out of or related to this Agreement or any breach of
this Agreement shall be submitted to and decided by binding arbitration conducted before a single arbitrator in Irvine, California. Arbitration shall be administered exclusively by JAMS pursuant to its Employment Arbitration Rules &
Procedures, which can be found at http://www.jamsadr.com/rules-employment-arbitration/ and shall be conducted consistent with the rules, regulations, and requirements thereof as well as any requirements imposed by state law. Any arbitral
award determination shall be final and binding upon the parties. 

  
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 12.    Proprietary Rights. 

12.1    Inventions Retained and Licensed. Executive has attached as Exhibit A a list describing all inventions,
discoveries, original works of authorship, developments, improvements, and trade secrets that (i) Executive conceived in whole or in part before commencing employment with the Company, and (ii) do not relate to the Company’s current
or proposed business, products, or research and development (“Prior Inventions”). If no such list is attached, Executive represents and warrants that no such Prior Inventions exist. Executive further represents and warrants that the
inclusion of any Prior Inventions on Exhibit A to this Agreement will not materially affect Executive’s ability to perform all obligations under this Agreement. If, in the course of his employment with the Company, Executive incorporates into
or use any fully developed Prior Invention in connection with any product, process, service, technology or other work by or on behalf of Company, Executive hereby grants to the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, worldwide license, with the right to grant and authorize sublicenses, to make, have made, modify, use, import, offer for sale, and sell such Prior Invention as part of or in
connection with such product, process, service, technology or other work and to practice any method related thereto. 

12.2    Assignment of Inventions. “Inventions” means all inventions, discoveries, original
works of authorship, developments, improvements, and trade secrets, whether or not patentable or registrable under patent, copyright or similar laws, that Executive may solely or jointly conceive, develop or reduce to practice, or cause to be
conceived, developed or reduced to practice, (i) during the period of time that the Company employs Executive (including during off-duty hours), or (ii) in connection with the use of the
Company’s equipment, supplies, facilities, personnel, or Company Confidential Information, except as provided in Section 12.5 below. Executive will promptly make full written disclosure to the Company, will hold in trust for the sole right
and benefit of the Company, and hereby now assigns to the Company or to its designee(s) all of Executive’s right, title, and interest in and to any and all Inventions. Executive further acknowledges that all original works of authorship that
Executive may make (solely or jointly with others) within the scope of and during the period of his employment with the Company and that are protectable by copyright are “works made for hire,” as that term is defined in the United States
Copyright Act. Executive understands and agrees that any decision whether or not to commercialize or market any Inventions is within the Company’s sole discretion and for the Company’s sole benefit and that no royalty or other
consideration will be due to him as a result of the Company’s efforts to commercialize or market any such Inventions. 

12.3    Maintenance of Records. Executive agrees to keep and maintain adequate, current, accurate, and authentic
written records of all Inventions that Executive creates (solely or jointly with others) during the term of his employment with the Company. The records will be in the form of notes, sketches, drawings, electronic files, reports, or any other format
that may be specified by the Company. The records are and will be available to, and remain the sole property of, the Company at all times. 

  
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 12.4    Patent and Copyright Registrations. Executive agrees to
assist the Company or its designee(s), at the Company’s reasonable expense, in every proper way to secure the Company’s rights in any Inventions and in any rights relating to such Inventions in any and all countries. Such assistance
regarding any Inventions and/or related rights includes, without limitation, full disclosure to the Company of all pertinent information and data; the execution of all applications, specifications, oaths, assignments and all other instruments that
the Company might deem proper or reasonably necessary to apply for, register, obtain, maintain, defend, and enforce such rights, and/or to assign and convey to the Company, its successors, assigns, and/or nominees the sole and exclusive rights,
title and interest in and to such Inventions and any rights relating to them; and testifying in a lawsuit or other proceeding relating to such Inventions and any rights relating to them. Executive expressly agrees that his obligation to execute or
cause to be executed, when it is in his power to do so, any such instrument or papers continues after the termination of this Agreement, at the Company’s reasonable expense. If the Company is unable because of Executive’s mental or
physical incapacity or for any other reason to secure Executive’s signature with respect to any Inventions including, without limitation, to apply for or to pursue any application for any United States or foreign patents or copyright
registrations covering such Inventions, then Executive hereby irrevocably designates and appoints the Company and/or its duly authorized officers and agents as his agent and
attorney-in-fact, to act for and on his behalf and stead to execute and file any papers, oaths and to do all other lawfully permitted acts with respect to such
Inventions with the same legal force and effect as if Executive executed them. 
 12.5    Exception to
Assignments. Executive understands that the provisions of this Agreement requiring assignment of Inventions to the Company do not apply to any invention that qualifies fully under the provisions of California Labor Code Section 2870 (the
full text of which is in the attached Exhibit B). Executive will advise the Company immediately in writing of any inventions that (i) Executive might create (solely or jointly with others) after today, (ii) Executive believes meet the
criteria in California Labor Code Section 2870, and (iii) are not otherwise disclosed on Exhibit A. 

13.    Security. 

13.1    Security and Access. The Executive acknowledges that he has no reasonable expectation of privacy in any
computer, technology system, email, handheld device, telephone, or documents that are used to conduct the business of the Company whether such device is personally owned or provided by the Company. As such, the Company has the right to audit and
search all such items and systems, without further notice to Executive, to ensure that the Company is licensed to use the software on the Company’s devices in compliance with the Company’s software licensing policies, to ensure compliance
with the Company’s policies, and for any other business-related purposes in the Company’s sole discretion. Executive agrees and covenants (a) to comply with all Company security policies and procedures as in force from time to time
including without limitation those regarding computer equipment, telephone systems, voicemail systems, facilities access, monitoring, key cards, access codes, Company intranet, internet, social media and instant messaging systems, computer systems,
email systems, computer networks, document storage systems, software, data security, encryption, firewalls, passwords and any and all other Company facilities, IT resources and communication 

  
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technologies (“Facilities and Information Technology Resources”); (b) not to access or use any Facilities and Information Technology Resources except as authorized by the
Company; and (iii) not to access or use any Facilities and Information Technology Resources in any manner after the termination of the Executive’s employment by the Company, whether termination is voluntary or involuntary. The Executive
agrees to notify the Company promptly in the event he learns of any violation of the foregoing by others, or of any other misappropriation or unauthorized access, use, reproduction, or reverse engineering of, or tampering with any Facilities and
Information Technology Resources or other Company property or materials by others. 
 13.2    Exit Obligations.
Upon (a) voluntary or involuntary termination of the Executive’s employment or (b) the Company’s request at any time during the Executive’s employment, the Executive shall (i) provide or return to the Company any and
all Company property, including keys, key cards, access cards, identification cards, security devices, employer credit cards, network access devices, computers, cell phones, equipment, speakers, webcams, manuals, reports, files, books, compilations,
work product, email messages, recordings, tapes, disks, thumb drives or other removable information storage devices, hard drives, and data and all Company documents and materials belonging to the Company and stored in any fashion, including but not
limited to those that constitute or contain any Confidential Information or work product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created
by the Executive in connection with his employment by the Company; and (ii) delete or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive’s possession or control, including those
stored on any non-Company devices, networks, storage locations, and media in the Executive’s possession or control. 

14.    Publicity. The Executive hereby irrevocably consents to any and all uses and displays, by the Company and its
agents, representatives and licensees, of the Executive’s name, voice, likeness, image, appearance, and biographical information in, on or in connection with any pictures, photographs, audio and video recordings, digital images, websites,
television programs and advertising, other advertising and publicity, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes, and all other printed and electronic forms and media throughout the world, at any time
during or after the period of his employment by the Company, for all legitimate commercial and business purposes of the Company (“Permitted Uses”) without further consent from or royalty, payment, or other compensation to the
Executive. The Executive hereby forever waives and releases the Company and its directors, officers, employees, and agents from any and all claims, actions, damages, losses, costs, expenses, and liability of any kind, arising under any legal or
equitable theory whatsoever at any time during or after the period of his employment by the Company, arising directly or indirectly from the Company’s and its agents’, representatives’, and licensees’ exercise of their rights in
connection with any Permitted Uses. 
 15.    Governing Law, Jurisdiction and Venue. This Agreement, for all
purposes, shall be construed in accordance with the laws of California without regard to conflicts of law principles. Subject to Section 11 of this Agreement, any action or proceeding by either of the parties to enforce this Agreement shall be
brought only in a state or federal court located in the State of California, County of Orange. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any
such action or proceeding in such venue. 

  
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 16.    Entire Agreement. Unless specifically provided herein,
this Agreement contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and
warranties, both written and oral, with respect to such subject matter. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement. 

17.    Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or
modification is agreed to in writing and signed by the Executive and by a director of the Company. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the
other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power, or privilege
hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power, or privilege. 

18.    Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be
enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon
the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. 
 The parties
further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending
provision, deleting any or all of the offending provision, adding additional language to this Agreement, or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the
maximum extent permitted by law. 
 The parties expressly agree that this Agreement as so modified by the court shall be binding upon and
enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other
provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein. 

19.    Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for
convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph. 

  
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 20.    Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 

21.    Section 409A. 

21.1    General Compliance. This Agreement is intended to comply with Section 409A or an exemption thereunder
and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with
Section 409A or an applicable exemption. Payments made under this Agreement with respect to a termination from employment, shall be considered made only upon a “separation from service” as defined in Internal Revenue Code
Section 409A (“Code Section 409A”). It is further intended that such payments are not deferred compensation subject to Code Section 409A to the extent that such payments are covered by (a) the
“short-term deferral exception” set forth in Treas. Reg. Section 1.409A-1(b)(4), (b) the “two times severance exception” set forth in Treas. Reg.
Section 1.409A-1(b)(9)(iii), or (c) the “limited payments exception” set forth in Treas. Reg. Section 1.409A-1(b)(9)(v)(D). The short-term
deferral exception, the two times severance exception and the limited payments exception shall be applied to the payments hereunder, as applicable, in order of payment in such a manner as results in the maximum exclusion of such payments from
treatment as deferred compensation under Code Section 409A. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Notwithstanding the foregoing, the Company makes no
representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred
by the Executive on account of non-compliance with Section 409A. 

21.2    Specified Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit
provided to the Executive in connection with his termination of employment is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A and the Executive is determined to be a “specified
employee” as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date or,
if earlier, on the Executive’s death (the “Specified Employee Payment Date”). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated
based on the applicable federal rate published by the Internal Revenue Service for the month in which the Executive’s separation from service occurs shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and
thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. 

  
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 21.3    Reimbursements. To the extent required by
Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following: 

(a)    the amount of expenses eligible for reimbursement, or in-kind benefits
provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; 

(b)    any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar
year following the calendar year in which the expense was incurred; and 
 (c)    any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit. 

22.     Notification to Subsequent Employer. When the Executive’s employment with the Company terminates, the
Executive agrees to notify any subsequent employer of Executive’s continuing obligations under this Agreement. The Executive will also deliver a copy of such notice to the Company before the Executive commences employment with any subsequent
employer. 
 23.    Successors and Assigns. This Agreement is personal to the Executive and shall not be assigned
by the Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns. 

24.    Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall be
delivered personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice): 

If to the Company at: 

Kura Sushi USA, Inc. 

17932 Sky Park Circle, Suite H 

Irvine, CA 92614 

Attention: Board of Directors 

with a copy to: 

Squire Patton Boggs (US) LLP 

555 S. Flower Street, 31st Floor 

Los Angeles, CA 90071 

Attention: Hiroki Suyama, Esq. 

  
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 If to the Executive at: 

Hajime Uba 

5 Salviati Aisle 

Irvine, CA 92606 

25.    Representations of the Executive. The Executive represents and warrants to the Company that: 

(a)    The Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not
conflict with or result in a violation of, a breach of, or a default under any contract, agreement, or understanding to which he is a party or is otherwise bound. 

(b)    The Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not
violate any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer. 

26.    Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal,
state, and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation. 

27.    Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations
of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement. 

28.    Acknowledgement of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ,
UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. 

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

 


			
	 KURA SUSHI USA, INC,
 a Delaware
corporation



			
		
	By:	 	/s/ Koji Shinohara


			
		
	Name:	 	Koji Shinohara


			
		
	Title:	 	CFO

 


			
	 EXECUTIVE
  



			
		
	Signature:	 	/s/ Hajime Uba


			
		
	Print Name:	 	Hajime Uba

 
 


  
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 EXHIBIT A 

LIST OF PRIOR INVENTIONS 

AND ORIGINAL WORKS OF AUTHORSHIP 
  

									
	 Title
	  	 Date
	 	  	 Identifying Number or

Brief Description
	 
		  				  			
		  				  			
		  				  			
		  				  			

 ___ No inventions or improvements 

___ Additional sheets attached 
  

			
		
	Signature:	 	/s/ Hajime Uba


			
		
	Name:	 	Hajime Uba


			
		
	Date:	 	August 5, 2019


  
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 EXHIBIT B 

CALIFORNIA LABOR CODE SECTION 2870 

INVENTION ON OWN TIME-EXEMPTION FROM AGREEMENT 

(a)    Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of
his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information
except for those inventions that either: 
 (1)    Relate at the time of conception or reduction to practice of the
invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or 

(2)    Result from any work performed by the employee for the employer. 

(b)    To the extent a provision in an employment agreement purports to require an employee to assign an invention
otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable. 

  
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