Document:

EX-10.17

 Exhibit 10.17 

Baxalta Incorporated 

Equity Plan 
 July 1,
2015 
  

	1.	Purpose 

 This Equity Plan (the “Plan”) has been adopted by the Compensation
Committee (the “Committee”) of the Board of Directors (the “Board”) of Baxalta Incorporated (“Baxter”), effective as of July 1, 2015. 

For avoidance of doubt, all grants made under this Plan shall be made on or after the date on which the stock Baxalta is distributed to the shareholders of
Baxter International Inc. and shall not be subject to adjustment in the manner described in the Employee Matters Agreement between Baxter International Inc. and Baxalta. 
  

	2.	Participants 

 Participants in this Plan (each a “Participant”) shall be
employees of Baxalta or its subsidiaries (the “Company”) to whom awards of equity are made by the Committee, or any person to whom the Committee delegates the authority to make awards, under this Plan. 

 

	3.	Awards 

 Each grant of equity (an “Award”) shall be made pursuant to and
for the purposes stated in the Baxalta Incorporated 2015 Incentive Plan, or such other stock incentive plan as may be designated by the Committee (the “Program”). Unless otherwise indicated, terms defined in the Program shall have
the same meaning in this Plan. 
 This Plan provides terms that apply to awards of stock options (“Options”) and restricted stock units
(“RSUs”). An award to any given Participant may be only Options, only RSUs, or any combination of Awards available under the Program. 

Participants receive grant communication letters notifying them of their Awards. The Program and this Plan provide the definitive terms of each Award;
provided that a grant communication letter may include alternative terms with respect to vesting, in which case the vesting terms in the grant communication letter shall govern. 

The grant date for an Award shall be the date of approval thereof by the Incentive Committee, or for eligible French employees, as soon thereafter as
practicable pursuant to applicable French law as provided in the attached French Addendum, which shall govern such grants (the “Grant Date”). 

The purchase price for each share of Common Stock subject to an Option shall be the Fair Market Value of a share of Common Stock on the Grant Date. Options
are not intended to qualify as an Incentive Stock Option within the meaning of section 422 of the United States Internal Revenue Code, as amended (the “Code”). 

Baxalta has not selected any country as its home member state under the European Union Directive 2003/71/EC, and the grant of Awards pursuant to this Plan is
simultaneous. 

	4.	Options 

 4.1. Except for Options granted to employees of the
Company’s subsidiaries in France, Options shall become exercisable as follows: (i) one-third on the first anniversary of the Grant Date, (ii) one-third on the second anniversary of the Grant Date, and (iii) the remainder on the
third anniversary of the Grant Date. Options granted to employees of the Company’s subsidiaries in France shall become exercisable on the fourth anniversary of the Grant Date. If Options would become exercisable on a date that is not a business
day, they will become exercisable on the next business day. A business day is any day on which the Company’s Common Stock is traded on the New York Stock Exchange. After Options become exercisable (in each case, in whole or in part) and until
they expire, the Options may be exercised in whole or in part in the manner specified by the Committee. Under no circumstances may Options be exercised after they have expired. Shares of Common Stock may be used to pay the purchase price for shares
of Common Stock to be acquired upon exercise of Options or fulfill any tax withholding obligation, subject to any requirements or restrictions specified by the Committee. 

4.2. If a Participant’s employment with the Company terminates before the Participant’s Options becomes exercisable, the Options
will expire when the Participant’s employment with the Company terminates, except (i) in connection with a Qualifying Retirement or death or disability (each as outlined below) or (ii) if the Participant is rehired by the Company
within ninety days of termination, in which case the Participant shall be construed to have been continuously employed by the Company for purposes of vesting and exercise. 

4.3. If a Participant’s employment with the Company terminates after the Participant’s Options become exercisable, the Options will
not expire immediately but will remain exercisable. Subject to Section 4.6, and except in the event of a Qualifying Retirement (as provided in Section 4.4), the Options will expire ninety days after the Participant’s employment with
the Company terminates. If the Participant dies or becomes disabled during the ninety-day period, the Options will expire on the fifth anniversary of the termination date. 

4.4. If the employment of a Participant who is at least 65 years of age, or at least 55 years of age with at least 10 years of employment with
the Company (including prior employment with Baxter International Inc. or its subsidiaries), is terminated other than for Cause or by reason of the Participant’s death or disability (a “Qualifying Retirement”) then (i) if
the date of such termination is after the calendar year of the Grant Date, the Options shall continue to vest as provided in Section 4.1, or (ii) if the date of such termination is in the calendar year of the Grant Date, a portion of the
Options shall continue to vest as provided in (i), which portion shall be determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to nearest whole month) / 12. Subject to Section 4.6, the
Participant’s Options (whether vesting pursuant to (i) or (ii) or previously vested) will expire on the fifth anniversary of the termination date. 

  
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 4.5. If the employment of a Participant is terminated due to death or disability, then
(i) if the date of such termination is after the calendar year of the Grant Date, the Options shall vest immediately, or (ii) if the date of such termination is in the calendar year of the Grant Date, a portion of the Options shall vest
immediately, which portion shall be determined as follows: (# shares covered by Option award) * (# of months worked in that year, rounded to nearest whole month) / 12. Subject to Section 4.6, the Participant’s Options (whether vesting
pursuant to (i) or (ii) or previously vested) will expire on the fifth anniversary of the termination date. 
 4.6. Options that
have not previously expired will expire at the close of business on the tenth anniversary of the Grant Date; provided, however, that Options granted to employees residing in Switzerland on the Grant Date shall expire on the eleventh anniversary of
the Grant Date. If Options would expire on a date that is not a business day, they will expire at the close of business on the last business day preceding that date. A business day is any day on which the Common Stock is traded on the New York Stock
Exchange. 
 4.7. Except as the Committee may otherwise provide, Options may only be exercised by the Participant, the Participant’s
legal representative, or a person to whom the Participant’s rights in the Options are transferred by will or the laws of descent and distribution. 

4.8. A transfer of employment within the Company will not constitute a termination of employment within the meaning of the Plan. 

4.9. A transfer of employment to a company that assumes an Option or issues a substitute option in a transaction to which Section 424 of
the Code applies will not constitute a termination of employment within the meaning of the Plan. 
 4.10. Except to the extent that it would
cause the Option to be subject to Section 409A of the Code, the Committee may, in its sole discretion and without receiving permission from any Participant, substitute stock appreciation rights (“SARs”) for any or all outstanding
Options. Upon the grant of substitute SARs, the related Options replaced by the substitute SARs shall be cancelled. The grant price of the substitute SARs shall be equal to the Option Price of the related Options, the term of the substitute SARs
shall not exceed the term of the related Options, and the terms and conditions applicable to the substitute SARs shall otherwise be substantially the same as those applicable to the related Options replaced by the substitute SARs. Upon exercise, the
SARs will be settled in Common Stock. 
  

	5.	Restricted Stock Units 

 5.1. RSUs are subject to being earned and vested
on the third anniversary of the Grant Date (as applicable, the “Vesting Date”). If RSUs would become earned and vested on a date that is not a business day, the next business day shall be the Vesting Date. The Company will deliver
or otherwise make available to the Participant within 21/2 months following the applicable Vesting Date one share of Common Stock for each
RSU that vests. 
 5.2. If a Participant’s employment with the Company terminates before an RSU Vesting Date, the RSU will be forfeited
when the Participant’s employment with the Company terminates, except (i) in connection with a Qualifying Retirement or death or disability (each as outlined below), or (ii) if the Participant is rehired by the Company within ninety
days of termination, in which case the Participant shall be construed to have been continuously employed by the Company for purposes of vesting and payout. 

  
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 5.3. If the employment of a Participant terminates in a Qualifying Retirement then (i) if
the date of such termination is after the calendar year of the Grant Date, the RSUs will remain eligible for payout on the terms provided in Section 5.1, or (ii) if the date of such termination is in the calendar year of the Grant Date a
portion of the RSUs shall remain eligible for payout on the terms provided in Section 5.1, which portion shall be determined as follows: (# RSUs awarded) * (# of months worked in that year, rounded to nearest whole month) / 12. 

5.4. If the employment with the Company of a Participant is terminated due to death or disability, the RSUs shall vest as follows: (i) if
the date of such termination is after the calendar year of the Grant Date, all the RSUs shall pay out within sixty days, or (ii) if the date of such termination is in the calendar year of the Grant Date a portion of the RSUs shall pay out as
provided in (i), which portion shall be determined as follows: (# RSUs awarded) * (# of months worked in that year, rounded to nearest whole month) / 12. 

5.5. The RSUs shall not be transferable and may not be sold, assigned, pledged, hypothecated or otherwise encumbered. 

5.6. A transfer of employment within the Company will not constitute a termination of employment within the meaning of the Plan. 

5.7. Until the shares of Common Stock have been delivered or otherwise made available as provided in Section 5.1, the Participant shall
not be treated as a shareholder as to those shares of Common Stock relating to the RSUs. Notwithstanding the foregoing, the Participant shall be permitted to receive additional RSUs with respect to the RSUs based upon the dividends and distributions
paid on shares of Common Stock to the same extent as if each RSU were a share of Common Stock, which additional RSUs shall be delivered or made available at the same time and to the same extent as the RSUs to which they relate or as otherwise
determined by the Company. 
  

	6.	Change in Control 

 In the event of a Change in Control of Baxalta, the vesting of outstanding
Awards shall be as determined under the Program. 
  

	7.	Program Controls 

 Except as specifically provided in the Plan, in the event of any
inconsistency between the Plan and the Program, the Program will control, but only to the extent such provisions will not violate the provisions of section 409A of the Code. 

  
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 Exhibit 10.17 

BAXALTA INCORPORATED 

French Addendum 
  

	1.	PURPOSES OF THIS ADDENDUM 

 This Addendum (the “French Addendum”) to the
Baxalta Incorporated Quarterly Equity Plan, Incentive Committee Grant (the “Plan”) provides the terms for Options granted to Eligible French Participants (as defined below). 

Except as otherwise expressly provided in this French Addendum, the terms of awards shall be as provided in and governed by the Plan. Terms not otherwise
defined herein shall have the meanings provided in the Plan. 
 Awards granted under this French Addendum are restricted to Options satisfying the
conditions set forth in the French Commercial Code (articles L.225-177 to L.225-I85) and such Options are intended to be eligible for a tax-favored regime. 
  

	2.	PARTICIPANTS 

 Options may only be granted under this French Addendum to employees
(“Eligible French Participants”) of companies in which the Company holds at least ten percent (10%) of the voting rights or equity, directly or indirectly. No individual in France holding more than ten percent of the issued
equity of the Company can be an Eligible French Participant. 
  

	3.	AWARDS 

 3.1. Grant of Options 

No Options may be granted under this French Addendum: (a) before the end of a period of twenty (20) trading days following (i) a dividend record
date for any dividend or (ii) an agreement by the shareholders of the Company to increase the issued share capital of the Company; (b) within a period of ten (10) trading days before and after the publication of consolidated
accounting results of the Company (e.g., the filing of an Annual Report on Form 10-K); or (c) within a period beginning with the date upon which the Company’s executive officers become aware of any nonpublic information that, if it were to
become publicly known, would reasonably be expected to affect the value of the Company’s shares of Common Stock and ending ten (10) trading days after that information has been publicized. 

The Grant Date shall be the date as of which the Committee approves grants to Eligible French Participants or as soon thereafter as possible, ensuring that
the above restrictions are respected. The acquisition price of shares subject to Option (the “Option Price”) shall be established on the Grant Date. 

3.2. Option Price 
 The Option Price shall be the
greatest of (a) the Fair Market Value on the Grant Date; (b) eighty percent (80%) of the average opening price of a share of Common Stock over the twenty (20)

 
trading days preceding Grant Date; and (c) if treasury shares are used to satisfy exercise of the Option, eighty percent (80%) percent of the average repurchase price per share paid by
the Company for such treasury shares. 
 3.3. Shares Available for Option 

In no event shall the number of shares of Common Stock subject to outstanding unexercised Options granted pursuant to this French Addendum give right to
subscribe shares exceeding one-third (1/3) of the Company’s share capital. 
 3.4. Options Giving Right to Purchase Previously
Issued Shares 
 If an Option provides a right to purchase previously issued shares, the Company shall procure sufficient shares to satisfy the exercise of
such Option at least one day prior to the Participant’s having the right to exercise such Option. 
 3.5. Characteristics of Shares

 Shares issued pursuant to Options shall be non-bearer shares or shares held in an identifiable account. 

3.6. Substitution of SARs for Options 
 Neither
SARs nor any other incentive may be substituted for Options granted pursuant to this French Addendum. 
 3.7. Adjustment to Option Price

 The number of Options and the Option Price for grants made pursuant to this French Addendum may be adjusted in connection with changes in capital
operations described in article L.225-181 of the French Commercial Code so that economic rights are maintained. 
  

	4.	VESTING AND EXERCISE OF OPTIONS 

 4.1. Vesting 

Options granted pursuant to this French Addendum shall first become exercisable on the fourth
(4th) anniversary of the Grant Date. 
 4.2. Non-Transferability of Options
— Death of the Participant 
 Options granted pursuant to this French Addendum shall be non-transferable and can only be exercised by the Eligible
French Participant, or, in the event of the Eligible French Participant’s death, the heirs may exercise the Options (where previously vested or not) within six months of the date of the Eligible French Participant’s death. 

  
 6ExecutiveEmploymentAgreementRogerGirard2

EMPLOYMENT AGREEMENT
This Employment Agreement (the “Agreement”) is made and entered into effective as of September 1, 2015 (the “Effective Date”), by and between Roger Girard (the “Executive”) and Acucela Inc. (the “Company”).
In consideration of the mutual covenants herein contained, the continuing employment of the Executive by the Company, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.Duties and Scope of Employment.  The Company shall employ Executive in the position of Chief Strategy Officer. Additionally, Executive will also serve as Chair of the Board of Advisors (the “Board of Advisors”) to the Company’s Board of Directors (the “Board”).  Executive will render such business and professional services in the performance of his duties, consistent with Executive’s positions within the Company, as shall reasonably be assigned to him by the Company’s Chief Executive Officer CEO).  Only the Chief Executive Officer or the Board shall have the right to revise such responsibilities from time to time, as they deem necessary or appropriate.  The CEO or Compensation Committee of the Board shall have the right to revise Executive’s compensation as provided for in Section 4(a) and (c) below, consistent with the provisions of this Agreement.  Executive shall be entitled to indemnification from the Company for claims asserted against Executive in connection with Executive’s performance of his duties hereunder and shall be covered under the officer and director liability policy maintained by the Company.
2.    Obligations.  While employed hereunder, Executive will perform his duties faithfully and to the best of his ability.  Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board; provided, however, that Executive may conclude his current consulting work insofar as such duties do not conflict with Executive’s performance and best efforts for the Company; and also provided that Executive may engage in non-competitive business or charitable activities so long as such activities do not materially interfere with Executive’s responsibilities to the Company.  Any new board of director positions with other business or charitable entities entered into after the Effective Date shall be subject to the prior approval of the CEO.
3.    Employment Term.  Unless otherwise terminated earlier as provided in Section 5, Executive’s employment with the Company as Chief Strategy Officer pursuant to this Agreement shall commence on the Effective Date and shall continue until August 30, 2016 (the “Initial Term”), provided that this Agreement shall automatically renew for successive one-year periods unless either the Company or the Executive provide written notice to the other of its intention not to renew the Agreement at least sixty (60) days prior to the end of any yearly term (each such additional year being an “Extended Term”, and collectively with the Initial Term being the “Employment Term”).

DWT 27220119v4 0104406-000001

4.    Compensation and Benefits.
(a)    Base Compensation.  The Company shall pay Executive as compensation for Executive’s services as Chief Strategy Officer an annual base salary of $340,000 (three hundred and forty thousand dollars).  Such salary shall be subject to applicable tax withholding and shall be paid periodically in accordance with normal Company payroll practices. The base salary may be increased pursuant to annual review by the CEO and/or Compensation Committee of the Board. Executive shall also receive an annual salary of $25,000 (subject to applicable tax withholding) as compensation for Executive’s services as Chair of the Board of Advisors.  Such compensation is to be paid in a lump sum on May 1 of each year commencing on May 1, 2016 for as long as Executive continues to serve as Chair of the Board of Advisors.
(b)    Signing Bonus.  Executive will receive a one-time signing bonus of $25,000 (twenty five thousand dollars), subject to applicable tax withholding and paid at the time of Executive’s first regularly scheduled paycheck in accordance with normal Company payroll practices, without regard to any waiting period applicable to bonuses granted to Company employees
(c)    Incentive Bonus.  In addition to the base salary, Executive may receive a performance bonus relating to each year of employment with the Company under this Agreement equal to an amount to be determined by the Board or its Compensation Committee.  Such bonus shall be paid by March 15 of the year following the year for which the bonus relates.  The maximum amount of such performance bonus shall be 50% of Executive’s then current base salary for Executive’s services as Chief Strategy Officer for the applicable fiscal year.  Such performance bonus, if any, shall be based upon Company performance against objective metrics to be determined annually by the CEO and/or Compensation Committee of the Board.
(d)    Benefits.  Executive shall be eligible to participate in the employee benefit plans which are available or which become available to other employees of the Company, with the adoption or maintenance of such plans to be in the discretion of the Company, subject in each case to the generally applicable terms and conditions of the plan or program in question and to the determination of any committee administering such plan or program.  Employee may work virtual up to thirty‐three percent (33%) of his time providing it does not interfere with the goals and objectives of the Company.  To the extent adopted and maintained by the Company, such benefits shall include participation in the Company’s group medical, life, disability, and retirement plans, and any supplemental plans available to senior executives of the Company from time to time.  Executive will be entitled to thirty-two (32) days of paid time off (“PTO”) per year and is permitted to carry-forward unused PTO subject to the PTO limitations established in the Company’s 2012 Employee Handbook or any successor policy thereto. Executive agrees that when known in advance, the timing and duration of specific PTO must be mutually and reasonably agreed to by the parties hereto.  The Company will also reimburse Executive for monthly office parking expenses.  The Company reserves the right to change or terminate its employee benefit plans and programs at any time pursuant to any notice provisions in such plans.
(e)    Relocation Benefits.  No relocation benefits will be paid under this Agreement.

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(f)    Business Expenses.  The Company will reimburse Executive for reasonable business expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time.
(g)    Stock Options/Equity Awards.  Subject to Board approval and any required shareholder approval (which Company shall use its best efforts to obtain, if needed), the Company will provide Executive common stock restricted stock units (“RSU”) as set forth in a separate agreement pursuant to the 2014 Equity Incentive Plan, as amended, of the Company (the “2014 Plan”).  The grant value of any RSU will be the current fair market value of the Company common stock as determined by the Board consistent with the requirements of IRC Sec. 409A and other applicable statutes and the aggregate number of shares subject to the RSU shall be equal to one percent (1%) of outstanding common stock on July 2, 2015, on a fully diluted basis.  The RSU will be subject to a four year vesting period, with twenty-five percent (25%) of Executive’s RSU’s vesting one-year after the Effective Date, and the remainder vesting thereafter on a monthly pro rata basis, provided that 100% vesting shall be triggered upon a Company Change in Control, termination of Executive’s employment by the Company without Cause, and in the event Executive terminates his employment for Good Reason (“Acceleration Triggers”), provided further that in the event the Acceleration Trigger is a Change of Control, the Executive’s employment with the Company’s successor is terminated by the Company successor without Cause or by the Employee with Good Reason.
5.    Termination of Employment.
(a)    Termination by Company for Cause; Voluntary Termination.  In the event Executive’s employment with the Company is terminated for “Cause” (as defined herein) by the Company or voluntarily by Executive (i) the Company shall pay Executive any unpaid base salary for Executive’s services as Chief Strategy Officer due for periods prior to the date of termination of employment (“Termination Date”); (ii) the Company shall pay Executive all of Executive’s accrued and unused vacation through the Termination Date; and (iii) following submission of proper expense reports by Executive, the Company shall reimburse Executive for all expenses reasonably and necessarily incurred by Executive in connection with the business of the Company prior to termination.  These payments shall be made promptly upon termination and within the period of time mandated by applicable law. All unvested RSU's will be immediately forfeited as of the Termination Date.
(b)    Termination by Company without Cause.  The Company may terminate Executive’s employment without Cause upon thirty (30) days written notice to Executive.  If Executive’s employment with the Company terminates other than voluntarily or for Cause, and Executive signs and does not revoke a Release, then, subject to Executive’s compliance with Section 7, Executive shall be entitled to:
(i)    Receive continuing payments of severance pay (less applicable withholding taxes) at a rate equal to his base salary, as then in effect, for a period of nine (9) months from the date of such termination, to be paid periodically in accordance with the Company’s normal payroll policies.

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(ii)    The same level of health (i.e., medical, vision and dental) coverage and benefits as in effect for the Executive on the day immediately preceding the day of the Executive’s termination of employment; provided, however, that (a) the Executive constitutes a qualified beneficiary, as defined in Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended; and (b) Executive elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant to COBRA.  The Company shall continue to provide Executive with Company-paid health coverage until the earlier of (i) the date Executive is no longer eligible to receive continuation coverage pursuant to COBRA, or (ii) nine (9) months from the Termination Date.
(iii)    Any unvested portion of RSU’s shall immediately vest as to that number of shares that would have vested had Executive remained a full-time employee with the Company through the nine (9) month period following the Termination Date.
(c)    Death.  In the event of Executive’s death while employed hereunder, Executive’s beneficiary (or such other person(s) specified by will or the laws of descent and distribution) will receive (i) continuing payments of severance pay (less applicable withholding taxes) at a rate equal to Executive’s base salary for a period of ninety (90) days from Executive’s death, to be paid periodically in accordance with the Company’s normal payroll policies, and (ii) Company-paid COBRA benefits as specified in Section 5(b)(ii) above for ninety (90) days from Executive’s death.
(d)    Disability.  In the event of Executive’s termination of employment with the Company due to “Disability” (as defined herein), Executive shall be entitled to continuing payments of base salary (less applicable withholding taxes) until Executive is eligible for long-term disability payments under the Company’s group disability policy; provided, however, that in no event shall such period of continued base salary exceed 180 days following termination.
(e)    Termination by Executive for Good Reason.  If Executive terminates employment with the Company for “Good Reason” (as defined herein) within ninety (90) days of a Good Reason event, and Executive signs and does not revoke a Release, then, subject to Executive’s compliance with Section 7, Executive shall be entitled to the same benefits that he would receive in Section 5(b) above.
(f)    Specified Employee.  Notwithstanding any other provision in this Agreement to the contrary, if Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment that is considered deferred compensation under Code Section 409A payable on account of a “separation from service” (as defined for purposes of Code Section 409A and corresponding regulations), such payment shall be made on the date which is the earlier of the following: (i) the expiration of the six (6)‐month period measured from the date of such “separation from service” of Executive, and (ii) the eighteen (18)-month anniversary of the date of this Amendment (the “Delay Period”), to the extent required under Code Section 409A.  Upon the expiration of the Delay Period, all payments delayed pursuant to this Section 5(f) (whether they would have otherwise been payable in a single sum or in installments in the absence of such 

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delay) shall be paid to Executive in a lump sum, without interest, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
6.    No Impediment to Agreement.  Executive hereby represents to the Company that Executive is not, as of the date hereof, and will not be during Executive’s employment with the Company, employed under contract, oral or written, by any other person, firm or entity, and is not and will not be bound by the provisions of any restrictive covenant or confidentiality agreement which would constitute an impediment to, or restriction upon, Executive’s ability to enter this Agreement and to perform the duties of Executive’s employment.
7.    Assignment of Inventions and Confidentiality Agreement.  Executive acknowledges that by reason of his employment, he will have access to trade secrets and confidential or proprietary information, including but not limited to:  confidential processes and technology, long range plans, marketing plans, supplier relationships, contract terms, compensation information, membership and customer data, financial information, pricing and costs information.  Executive agrees, as a condition to Executive’s employment with the Company and the effectiveness of this Agreement, to execute the Company’s form of Intellectual Property Agreement attached hereto as Exhibit A; provided, however, to the extent there is any inconsistency between such agreement and this Agreement, this Agreement shall control.
8.    Injunction.  Executive agrees that an injunction may be granted by the Superior Court of King County, Washington, or by any other court or courts having jurisdiction, restraining him from violation of the terms of this Agreement, upon any breach or threatened breach.  This shall not limit Company from any other relief or damages to which it may be entitled as a result of Executive’s breach of this Agreement.
9.    Alternative Dispute Resolution.  Executive agrees that prior to filing any motion or claim against Company or any of its employees, he will offer to engage in formal mediation.  Each party shall bear its own costs of mediation.
10.    Fees.  The prevailing party shall be entitled to its costs and attorney’s fees incurred in any litigation relating to the interpretation or enforcement of this Agreement, provided that a party’s right to fees and costs in connection with a wage or other statutory employment claim shall be governed exclusively by applicable state or federal law.
11.    Definitions.
(a)    Cause.  For purposes of this Agreement, “Cause” is defined as any of the following: (i) fraud, illegal conduct, misappropriation or embezzlement on the part of Executive which results in material loss, damage or injury to the Company, (ii) a material breach of this Agreement (including any documents incorporated herein by reference) by Executive, (iii) Executive’s conviction of, or plea of guilty or nolo contendere to, a felony or crime involving moral turpitude, or (iv) conduct by Executive which constitutes willful, wanton or grossly negligent neglect of duties.  Conduct will not be willful or grossly negligent if done, or not done, by Executive in good faith and with reasonable belief that action or omission was in 

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the best interest of the Company.  Any termination for “Cause” hereunder must be determined by a vote of the Board, with Executive first having been given specific written explanation of the basis for the “Cause” determination and an opportunity to appear before the Board prior to final Board action.  If the Company wishes to terminate Executive’s employment for Cause, it shall first give Executive forty‐five (45) days prior written notice of the circumstances constituting Cause and an opportunity to cure unless the circumstances are not subject to being cured.
(b)    Change in Control.  For purposes of this Agreement, Change in Control” is defined as the occurrence of any of the following events:  (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, the “Exchange Act”) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of this subclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of the total voting power of the securities of the Company will not be considered a Corporate Transaction; (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; (iv) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Code wherein the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company) or (v) a change in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by member of the Board whose appointment or election is not endorsed by as majority of the members of the Board prior to the date of the appointment or election. For purpose of this subclause (v), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Corporate Transaction. For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. Notwithstanding the foregoing, a transaction will not be deemed a Corporate Transaction unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and IRS guidance that has been promulgated or may be promulgated thereunder from time to time.
(c)    Disability.  For purposes of this Agreement, “Disability” is defined as Executive’s inability to perform his employment duties to the Company hereunder for 180 days (in the aggregate) in any one-year period as determined by concurrence of Executive’s attending physician and an independent physician selected by the Company, and failing concurrence of such physicians, then by an independent physician which they together select.

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(d)    Good Reason.  For purposes of this Agreement, “Good Reason” is defined as the occurrence of any of the following:  (i) A relocation of Company headquarters outside of King, Pierce, or Snohomish counties in the State of Washington ; (ii) A material breach of this Agreement by the Company; (iii) Executive has a material reduction in position, status, duties or responsibilities, or is assigned duties materially inconsistent with his position, (iv) Executive’s base salary for Executive’s services as Chief Strategy Officer is reduced, and/or (v) the Company experiences a Change in Control.  If the Executive wishes to terminate his employment for Good Reason, he must first give Company written notice of the circumstances constituting Good Reason within forty‐five (45) days after the occurrence of such Good Reason event, the Employer must have at least thirty (30) days’ opportunity to cure unless the circumstances are not subject to being cured, and Executive must terminate his employment no later than sixty (60) days after the expiration of the cure period.
(e)    Release.  For purposes of this Agreement, “Release” is defined as a full and complete release of all claims of Executive against the Company, known or unknown on the date of its execution, in form and substance acceptable to the Company.
12.    Successors; Personal Services.  The services and duties to be performed by the Executive hereunder are personal and may not be assigned or delegated.  This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the Executive, the Executive’s heirs and representatives.
13.    Notice.  Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of the Executive, mailed notices shall be addressed to Executive at the home address, which Executive most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Chief Operating Officer.
14.    Miscellaneous Provisions.
(a)    Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Executive and by an authorized officer of the Company (other than the Executive).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(b)    Entire Agreement.  This Agreement and the Company’s Intellectual Property Agreement dated of even date herewith, shall supersede and replace all prior agreements or understandings relating to the subject matter hereof, and no agreement, representations or understandings (whether oral or written or whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the relevant matter hereof.  Without limitation, this Agreement supersedes that certain Consulting Agreement effective as of May 1, 2015 between the Parties (the “Consulting Agreement”).  Such 

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Consulting Agreement is terminated as of the Effective Date of this Agreement and, notwithstanding any other provision in the Consulting Agreement to the contrary, the Parties do not owe each other any obligations under the Consulting Agreement after the Effective Date of this Agreement.
(c)    Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws of the State of Washington without reference to any choice of law rules.  The parties expressly stipulate that any litigation under this Agreement shall be brought in the state courts of King County, Washington or in the United States District Court for the Western District of Washington at Seattle.  The parties agree to submit to the jurisdiction and venue of these courts.
(d)    Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
(e)    No Assignment of Benefits.  The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this subsection shall be void.
(f)    No Duty to Mitigate.  Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that Executive may receive from any other source.
(g)    Employment Taxes.  All payments made pursuant to this Agreement will be subject to withholding of all applicable income, health insurance and employment taxes.
(h)    Assignment by Company.  The Company may assign its rights under this Agreement to an affiliate (as defined under the Securities Exchange Act of 1934), and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company.  In the case of any such assignment, the term “Company” when used in a section of this Agreement shall mean the corporation that actually employs the Executive.
(i)    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
(j)    Attorney Fees.  The Company agrees to directly pay Executive’s reasonable legal fees associated with entering into this Agreement up to $5,000 upon receiving invoices for such services.
(k)    Code Section 409A Compliance.  The intent of the parties is that payments and benefits under this Agreement comply with Code Section 409A and the regulations and guidance promulgated thereunder and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  To the extent that any payment or 

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benefit described in this Agreement constitutes “non-qualified deferred compensation” under Code Section 409A (or is intended to qualify for an exemption under Code Section 409A) and such payment or benefit is payable upon Executive’s termination of employment or termination of this Agreement, then the phrase “termination of employment,” “termination of this Agreement” and other similar phrases in this Agreement will be deemed to mean a “separation from service,” as defined in accordance with Code Section 409A and corresponding Treasury regulations.  Additionally, to the extent that any reimbursements under this Agreement are subject to the provisions of Section 409A of the Code, any such reimbursements payable to Executive will be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, the amount of the expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.  The Company makes no representation or warranty and will have no liability to Executive or any other person with respect to whether any provision of this Agreement fails to comply with Code Section 409A or fails to satisfy an intended exemption from Code Section 409A.  In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Executive by Code Section 409A.
(l)    Code Section 280G. Notwithstanding any provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any amount or benefit to be paid or provided by the Company or its affiliates to the Executive or the Executive’s benefit pursuant to this Agreement or otherwise (“Covered Payments”) would be an “excess parachute payment,” within the meaning of Section 280G of the Code, but for this Section 11(l), then the Covered Payments shall be reduced to the minimum extent necessary (but in no event less than zero) so that no portion of any Covered Payments, as so reduced, constitutes an excess parachute payment, but only if and to the extent that such reduction will also result in, after taking into account all state, local and federal taxes applicable to the Executive (computed at the highest applicable marginal rate), including any taxes payable pursuant to Section 4999 of the Code (and any similar tax that may hereafter be imposed under any successor provision or by any taxing authority), greater after-tax proceeds to the Executive than the after-tax proceeds to the Executive computed without regard to any such reduction.  The determination of whether any reduction in such Covered Payments is required pursuant to this Section 11(l) shall be made by a firm of independent certified public accountants or a law firm selected by the Company.  In the event that any Covered Payment is required to be reduced pursuant to this Section 11(l), the Executive shall be entitled to designate the payments and/or benefits to be so reduced in order to give effect to this Section 11(l).  The Company shall provide the Executive with all information reasonably requested by the Executive to permit the Executive to make such designation.  In the event that the Executive fails to make such designation within ten (10) business days of the date on which he is notified of the determination that a reduction in Covered Payments is required under this Section 11(l), the Company may effect such reduction in any manner it deems appropriate.
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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.
COMPANY:    Acucela, Inc.
By:    /s/ Ryo Kubota                               
  Ryo Kubota
Its:    CEO    
EXECUTIVE:       /s/ Roger Girard                               
Roger Girard

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

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